Cheap DIY Investment Platform S&S ISA regular investing

SeekingYes

Hi Guys , hope you can point me in the right direction. I am looking to open a diy stocks & shares ISA and would like to know what the cheapest platform would be for me. I will be investing 4-5k lump and pay 200 month in.
i will invest some in funds and some in stocks/shares. 

I have  also seen apps that allow ISAs such as freetrade & trading 212 but unsure how these compare to the bigger companies such as iWeb and a ajbell etc.

SonOf

Your amounts are not really viable to invest in shares (due to dealing costs on purchase and sales).  Indeed, the amounts are not really suited for trading full stop.  Any reason you are looking at that and not more conventional/mainstream options?

bigadaj

Probably best restricting yourself to funds on those amounts, and a percentage based platform is probably best rather than a transaction based one. Do a search for snowmans spreadsheet and import your anticipated investments  and that should give you the most cost effective platform for you. I'm not sure if it has been recently updated so double check your choices and maybe look at the top two or three, also service levels may play a part in your selection. 

Albermarle

In fact some of the 'big names' have apps ( HL & Fidelity to name two ) that you can buy and sell on , if you are so inclined.
However successful investing is a long term venture , so being able to 'trade on the go' is not really an advantage . Could even be a disadvantage as it could tempt you to buy & sell far too often , especially late at night after a few drinks !

SeekingYes

I am looking at S&s Isa’s as saving rates are poor so am hoping that these will beat those rates and stop my money eroding. I regularly invest in premium bonds which so far have beat yearly interest rates.
Thanks for the advice, food for thought.

jacksmith93

AJ bell would probably work best. You could purchase say 5 shares 1k each costs will likely be around 1.5% per transaction but your ongoing costs will just be the platform (Aj bell)

Albermarle

I am looking at S&s Isa’s as saving rates are poor so am hoping that these will beat those rates and stop my money eroding. I

This is entirely sensible , but investing in individual company shares is risky . For most smaller investors a multi asset fund is a good and low cost  solution . 

EthicsGradient

There is a comparison site here: http://comparefundplatforms.com/ . At the moment, the cheapest option for you seems to be Halifax - £2 per regular investment, £12.50 for a one-off purchase or sale (but note that, about once a month, they announce a day that, for a couple of hours, you can buy or sell UK shares (which would include investment trusts, and I'd think ETFs, though I don't know) for £3.95), and a flat £12.50 charge per year for the ISA.

Remember that, currently, you don't pay tax on the first £2,000 of dividends (or distributions from funds), and there's a £12,000 capital gains allowance per year, so for the amounts you have, an ISA won't really gain you anything, and you can avoid that £12.50 charge by using Halifax's 'direct' share dealing account. And if you only hold shares, investment trusts or ETFs, Hargreaves Lansdown could then be even cheaper - £1.50 per regular investment, £11.95 for one-off buying or selling (no special deals),  and no quarterly or annual charges (they do charge for holding OEIC etc. funds). If you start to build up more, it'd be worth thinking about moving them into an ISA in that case - at the moment, you can put up to £20,000 in each tax year. Tax allowances etc. can change in the future, of course.

capital0ne

jacksmith93 said:

AJ bell would probably work best. You could purchase say 5 shares 1k each costs will likely be around 1.5% per transaction but your ongoing costs will just be the platform (Aj bell)

So to buy £1,000 worth of shares would cost £15 - far too expensive, iWeb would charge £5, and don't forget the stamp duty!
But if you check their web page https://www.youinvest.co.uk/isa/charges-and-rates you'll find the actual cost of buying is £9.95
And a monthly fee of 0.25% up to a max of £7.50 - again iWeb has no monthly fee, only a one off fee of £25 to open an account.
And others have suggested buying indivuidual shares is risky, which it is so you could start with Ibvestment Trusts like City of London, you need to check it out but these companies will invest in many individual equites. Taking City of London - CTY is it's stock market acronym, it invests in HSBC, Diageo, BP, Shell, Unilever, British American Tobacco and so on.
And of course iWeb is owned by The Halifax
Good luck

eskbanker

capital0ne said:

jacksmith93 said:

AJ bell would probably work best. You could purchase say 5 shares 1k each costs will likely be around 1.5% per transaction but your ongoing costs will just be the platform (Aj bell)

So to buy £1,000 worth of shares would cost £15 - far too expensive, iWeb would charge £5, and don't forget the stamp duty!
But if you check their web page https://www.youinvest.co.uk/isa/charges-and-rates you'll find the actual cost of buying is £9.95

So the purchase fee is £9.95, plus stamp duty of 0.5%, meaning that costs are indeed around 1.5% per [£1K share purchase] transaction, as correctly stated by jacksmith93.

capital0ne said:
And a monthly fee of 0.25% up to a max of £7.50

An annual fee of 0.25%, capped at £7.50 per quarter.

Apart from that, spot on (if we ignore the pedantic points about CTY being an abbreviation not an acronym, and the obsolete definitive article before 'Halifax')....

SeekingYes

Not looked at my post for a little while. Thanks for all the advice
I didn’t realise that you don’t get taxed on dividends Ethicsgradient.
Also just seen interest being cut on premium bonds and savings accounts so all the more reason to put it to better use