Is price all that matters with platforms?

TBC15

Interesting to see cheap as chips II in 5th place.

MarkCarnage

Interesting to see cheap as chips II in 5th place.

Soggy chips I fear?

MarkCarnage

t was interesting to see that last year Vanguard knocked them into 2nd spot in a Which? customer satisfaction survey:
https://www.etfstream.com/news/7922_vanguard-knocks-hargreaves-lansdown-off-investment-platform-top-spot/
"This is the first time since the survey began in 2013 that Hargreaves Lansdown has not been in first place"

I would treat this with some caution. It's a self selecting sample of just over 1,000 Which? clients, who often go for price over value in my experience. More importantly, the only category which Vanguard got a star rating for was value for money because the sample size for all other categories was less than 30. I'm quite surprised that they were given the top rating overall on this rather scanty basis.

This isn't to suggest that it's not a worthwhile offering, but it has significant limitations for many, but is very cheap, partly as a result of this. I would imagine that Vanguard will be seeking to ensure high customer service levels too, but let's be clear, this rating is quite tentative based on the above, and will firm up over time. It will suit some well, no question I think, but it certainly won't suit all.

lr1277

I haven't read every part of every post so don't know if the following has been mentioned. I now consider how quickly dividends are put into your account.
I don't know if dividend income and its timing is important to you, but some platforms take longer to pay dividends into your account than others.
I was with frequent trader club who were cheap as chips but took days/weeks to put dividends into your account.
I am currently with Charles Stanley and they put the dividend into my account on the day the dividend was paid out.


HTH

Pikeman1

I'm with hl bit off a novice. If I understand d it right. If I have 100000 pounds invested in funds with hl it will cost me 45 pounds a year. Plus the fees for the individual funds.

bigadaj

Pikeman1 wrote: »

I'm with hl bit off a novice. If I understand d it right. If I have 100000 pounds invested in funds with hl it will cost me 45 pounds a year. Plus the fees for the individual funds.

I think you'll find that it would actually be £450.

newatc

HL is my main platform though I also use Halifax Share Dealing for one fund. One of my reasons for staying with HL is that I hope they will be more helpful to my younger financial-illiterate OH when I migrate to the zero cost zero worry ultimate platform.

george4064

Its certainly not all about price!

An analogy I use is to with supermarkets, they have similarities to investment platforms and there is not 'best supermarket for everyone' hence why different supermarkets exist at different price points.

As others have already stated, often when you shop at a more expensive supermarket you will get a better service. So there will be more staff available to help you, shelves will be better stocked up so things don't run out, shop generally tidier. Same with an investment platform that charges relatively higher fees, their customer service should be better, easier website usability etc.

You have discount supermarkets just like there are discount fund platforms. Everyone has their preference so you need to do your own research.

Albermarle

I would treat this with some caution. It's a self selecting sample of just over 1,000 Which? clients

Normally it is thought that HL are the biggest :II second and AJ Bell third .
However in this Which survey Fidelity had by far the most responses after HL . More than four times more than A J Bell.
Now the number of Fidelity retail clients is not public knowledge as far as I am aware, but I think it is clear that your typical Which reader is also your typical HL or Fidelity client ( attracted by established secure companies with simple charging structures )
So as usual these select surveys can be taken with a pinch of salt.

Rich1976

HL has about 1.2 million customers and is by far the biggest provider.

I read not too long ago that Fidelity was the second biggest at about 300000 direct customers and a fairly large number corporate pension customers and II 150000 but could be wrong on the last one.

Vanguard by comparison has only 55000 customers directly in the UK though has only been operating for 3 years over here.

The articles I have read online recently suggest that it will be enormous struggle for them to impact the market share that HL has who grow their customer base quite significantly each year.

Cheaper providers have been around for a few years but none seem to be troubling HL's growth.

So while HL is more expensive it proves cost isn't everything otherwise why would people stay or choose to join them. I have been with them for 15 years without a single issue and have found them and their website extremely easy and efficient to deal with.

My concern with cheaper providers is will they provide the same service. I have read on here about the issues people have had with II

Previously I was with Fidelity who were good but not as good as HL.

The other cheaper providers I either do not know much about them or dont understand their charging structures