Stocks and Shares broker ISA question

Returning_officer

Hi,
I've been looking this evening at opening a stocks and shares ISA with Interactive Investor (I've not been a member here long enough to post a web link) 
They offer a flat monthly fee of £9.99 a month with 1 free trade per month The Commission rates are £7.99 for all UK and US shares trades and fund trades.
I have emailed them to ask the following question but I received an auto reply saying I'd get no reply for at least 10 working days, so thought I'd try you knowledgeable bunch on here
If i took out this ISA and then set up 2 monthly direct debits within it, buying 2 separate mutual funds, would one of those direct debits count as the free monthly trade? Or would those direct debits count as regular investments (I've not been a member here long enough to post a web link to this )and then I could have the free trade buying shares etc?
Hope my question makes sense
Thanks
R O

Alexland

Fixed fee structures tend to work best for larger accounts and percentage fee structures tend to work best for smaller accounts. As such it's unusual for II to be the best choice for someone setting up a new S&S ISA as the contribution limit is only £20k per tax year - unless perhaps you were looking to transfer in another large ISA.

Often we suggest people start with a percentage fee provider (eg Vanguard at 0.15% pa or for more choice Cavendish at 0.25% pa) then move to a fixed fee provider (iWeb or Halifax Share Dealing usually work out cheaper than II) once the account gets big enough.

Anyway my understanding is that on II you would be contributing to an S&S ISA cash balance so you would only need one regular bank payment. Then from that cash balance you could either do expensive adhoc trades or two regular scheduled trades at the lower rate using your trade credit.

Caveat - haven't used II as they are too expensive for my needs.

Returning_officer

Hi Alex, thanks very much for replying
I have looked at Cavendish but they don't offer US shares. I very much like vanguard for its low cost, but their investment options are limited to their own products. Plus I cant buy any shares through them
I don't have an existing ISA to transfer, so if as you suggest II are mainly aimed at the more wealthy investor, then i think I'll follow your advice and look elsewhere for an ISA within which to buy funds and shares. 

Alexland

Halifax Share Dealing charge £12.50 pa for an ISA plus £2 per scheduled regular fund or share trade. So if you were regularly buying into 2 funds and 1 share per month that would be just over £7 per month. My experience of stock picking over the past couple of decades has been unsatisfactory so I just stick to funds now.

Alexland

beesaver said:

Hello,
I hope somebody can help me to confirm that:
when you use plus500 platform to buy shares you are operating within the CREST electronic system so you don't need to do a TAX return as you are paying the TAX while dealing with the system. Sorry, I am new on this matter and I don't know much.
Kind Regards,
Beesaver

You might be better starting your own new thread in the main Savings & Investments board as this one is about about Returning Officer's ISA query and the responses could get mixed up.