Low cost S&S ISA for monthly saving

Plu2370

I’m looking to open a S&S ISA to save a few hundred pounds a month and invest in funds and the odd individual shares. Any recommendations on best low cost options? 

Research to date is pointing me to Cavendish, any thoughts? I am confused/ worried by the potential transaction costs adding up over the course of buying with each monthly contribution. 

Alexland

Investing in individual shares is likely to be expensive if starting from zero and only investing a few hundred pounds per month for example Cavendish will charge £10 per trade. If this is really necessary then perhaps AJ Bell who will only charge £1.50 for a scheduled 'one off regular' investment (if you are happy to wait for their monthly trade date) in an exchange traded asset, also have the same 0.25% custody fee but also charge £1.50 on all fund trades which would be free on Cavendish.

If you were willing to drop the idea of trading in shares then for funds consider Vanguard or if you want more choice of other fund managers then Cavendish. Also have you considered just increasing your pension contributions or using a S&S Lifetime ISA if under 40?

Albermarle

Buying 'odd shares ' is probably a waste of time and best just to find a low cost multi asset fund that suits your risk tolerance /age.
Here is a comparison table of ISA providers 
https://monevator.com/compare-uk-cheapest-online-brokers/
Plus most large financial institutions offer ISA's just including their own funds : HSBC; Legal & General etc 

Plu2370

Thanks both for the helpful replies, makes a lot of sense on the individual share front. Plan now is to go with Vanguard, LifeStrategy 100, accumulate a reasonable amount and re-evaluate. 

@Alexland, in terms of the why not increase pension question - I already use up almost all of my annual allowance in a bad year and go well over it in a good year (Impact of pay rises on DB final salary element). Having used up all carry forward up to last year I don’t want to pay additional contributions with the risk of needing the allowance next time I get a pay rise. If, for whatever reason, I had unused carry forward about to expire unused I would contribute extra rather than see it go unused. 

In terms of the Lifetime ISA, I don’t currently have one, but have a good few years left until I’m 40. As it stands my savings are very heavily weighted to post 68 and I want some more, maybe £50k, that could be accessed whenever. Although I have no current thoughts on what that could be for. Will then look again at the Lifetime ISA to support early retirement plans and cover some of the period between age 60 and 68.

paul235

Does Vanguard or other fund provider have a fund specializing in global  pharmaceuticals companies. Any recommendations with low fund charges.

dunstonh

paul235 said:

Does Vanguard or other fund provider have a fund specializing in global  pharmaceuticals companies. Any recommendations with low fund charges.

Vanguard only offer trackers or fettered fund of funds in the UK.

Alexland

dunstonh said:

Vanguard only offer trackers or fettered fund of funds in the UK.

..and some active and factor funds/etfs but not a pharmaceutical one.

ColdIron

paul235 said:

Does Vanguard or other fund provider have a fund specializing in global  pharmaceuticals companies. Any recommendations with low fund charges.

Legal & General Global Health and Pharmaceuticals Index Trust is a popular choice. Which platform to use would depend on the sums involved and frequency of trading

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/legal-and-general-gbl-health-and-pharma-index-i-accumulation