Hargreaves Lansdown - Charges question

silicon30

Hi, 

Hopefully someone can give me  a quick answer on this: the 0.45% annual charge on shares in an ISA (capped at £45) - is this per share held or on the total value of all shares and charged once?

Thanks,

eskbanker

It's the total, not per share.

bowlhead99

The cap is on the total amount of charge (on all your shares altogether)  not on an individual holding.
i.e. if you have £5k of shares portfolio for a full year the charge would be £22.50 and £10k would be £45 and £20k the charge would still be £45.

if you have ten different shares or other stock-exchange traded instruments all valued at £10k each, you don't pay £45 on each of them, it's added up to be a £100k portfolio and the capped charge on that portfolio would be £45. 

silicon30

Perfect, thanks both.

Sounds like HL is geared for decent rates on stock trading, 0.45% on total for funds annually is steep!

eskbanker

silicon30 said:

Sounds like HL is geared for decent rates on stock trading, 0.45% on total for funds annually is steep!

Just to be clear, the capped 0.45% relates to the annual custody charge - if it's trading you're looking at, their individual transaction costs are less competitive at £11.95 each (lower for higher volumes).

Albermarle

silicon30 said:

Perfect, thanks both.

Sounds like HL is geared for decent rates on stock trading, 0.45% on total for funds annually is steep!

Not really , it's just a loss leader in the hope that you spend a lot of money trading at an expensive £12 a pop. Plus some people hold shares and funds ( @0.45% ) 
Also two other providers ( Fidelity & AJ Bell) have similar caps and for SIPPs are even cheaper for holding shares , so there is a competitive element as well.

ColdIron

silicon30 said:

Hi, 

Hopefully someone can give me  a quick answer on this: the 0.45% annual charge on shares in an ISA (capped at £45) - is this per share held or on the total value of all shares and charged once?

Thanks,

The fees are charged monthly pro rata and not once a year

Michael121

bowlhead99 said:

The cap is on the total amount of charge (on all your shares altogether)  not on an individual holding.
i.e. if you have £5k of shares portfolio for a full year the charge would be £22.50 and £10k would be £45 and £20k the charge would still be £45.

if you have ten different shares or other stock-exchange traded instruments all valued at £10k each, you don't pay £45 on each of them, it's added up to be a £100k portfolio and the capped charge on that portfolio would be £45. 

Are you sure? I contacted them via email and they said its 0.45 up to 250k so 1125 for the year, then you had the fund charge as well.

ColdIron

bowlhead is quoting the charges for stock-exchange traded instruments (shares, ITs, ETFs) which are capped at £45

The 0.45% you refer to applies to funds which are not capped though they are tiered so you pay a lower percentage once you exceed £250,000

https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

Aminatidi

silicon30 said:

Perfect, thanks both.

Sounds like HL is geared for decent rates on stock trading, 0.45% on total for funds annually is steep!

Depends on frequency because as said their dealing fees are quite steep.
But on six figures for the level of service you get for £45/year they're great for buy and hold.