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HSBC platform

At  .25%  the HSBC platform seems quite competitive  yet its never mentioned much .   As Im looking  to have one of its global funds,   is there any reason I should be  looking elsewhere for a platform ?

Comments

  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    If you are investing a large amount, the 0.25% per year could be quite a large sum of money.  (e.g. £100k = £250). Fixed fee platforms would come in less than that. If you are investing a smaller amount, and you know that you only want to buy HSBC funds in the account and nothing else, it would probably be fine.

    The providers that get more coverage on a moneysaving expert site are inevitably are the ones that are lower cost as a percentage, or low costs for certain types of holding (shares or ETFs or ITs vs funds) or lowest cost for certain account profiles (eg. fixed fee when investing large balances), or have a great range of investment options or account types or a stellar reputation for good customer service.   HSBC doesn't really get a look in as it isn't 'top' on any of those measures, but that doesn't mean it is bad if you know you'll only want to invest in an HSBC product.

    For example it's not as cheap as some rivals' 'restricted choice' platforms (e.g. Vanguard 0.15%), and is a similar cost to less-restricted platforms such as Cavendishonline or AJ Bell (the latter having transaction charges on top of the 0.25% for funds but offering a full range of funds, shares, ITs, ETFs and good range of account types - pensions, JISA, LISA etc).
  • dunstonh
    dunstonh Posts: 118,612 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    At  .25%  the HSBC platform seems quite competitive  yet its never mentioned much 

    It's at the going rate for a whole of market platform.  However, as it's not a whole of market platform but a restricted platform.  And it's expensive for what it is.


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • RyanHello
    RyanHello Posts: 249 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    I use HSBC, 0.25% is pretty decent.

    Min investments for each fund is £100. There's lots to choose from and covers a whole range of sectors.
    At the moment I only use cautious global funds, but looking to get into different continents for diversification later on.

    If you're already a HSBC customer, you can open an investment account in minutes.
  • Albermarle
    Albermarle Posts: 26,023 Forumite
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     HSBC doesn't really get a look in as it isn't 'top' on any of those measures, but that doesn't mean it is bad if you know you'll only want to invest in an HSBC product.

    Although you can only invest in funds, there is a choice of up to 550 and they are not all HSBC funds .

  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    edited 29 June 2020 pm30 6:10PM
     HSBC doesn't really get a look in as it isn't 'top' on any of those measures, but that doesn't mean it is bad if you know you'll only want to invest in an HSBC product.

    Although you can only invest in funds, there is a choice of up to 550 and they are not all HSBC funds .

    Their last website refresh (admittedly without being logged in, as I don't have an account) said 'nearly 400 open-ended investment companies (OEICs) and unit trust funds', and they list the 20-ish managers they work with. If you want an HSBC product you will see a reasonable range of choice. If you want an L&G product, they have a few but don't offer the ones that OP might consider as rivals to HSBC's own 'Global Strategy' or 'World Selection' products (e.g. the L&G Multi Index range); if you want something from Vanguard, Fundsmith, Lindsell Train, Rathbone, Troy, Architas, Hawksmoor, Man ... no luck at all.

    Nobody is going to want to invest in every one of the 3000+ fund options that might be offered by a broader platform, and a large choice can be overwhelming. Still, if you are paying as much as the rival platforms it would be nice to have the same broad choices. Like I said, it's not bad if you know you'll only want to invest in an HSBC fund. If you might want to invest in someone else's fund, now or later, it could be annoying that it's pot luck whether they'll have it or not. 

     As their Investor Centre has a ready-made audience for cross selling from their banking products they don't need to make it full-service, whole of market, really competitive price like they would need to consider doing if they were trying to get market share on their own merits among a sea of competitors in the DIY investing space. So it may not be overly expensive, but the feature set and investment options would be expected to be limited, because they don't need to be the best they can be - they will still get a steady flow of customers from their retail banking division even if more sophisticated investors look straight past them to better options.
  • ANGLICANPAT
    ANGLICANPAT Posts: 1,455 Forumite
    Part of the Furniture 1,000 Posts
    Thanks all for your views.  
  • Albermarle
    Albermarle Posts: 26,023 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    On the HSBC ISA site it says this on one page 
    If you like doing your own research, use our Global Investment Centre to search over 550 funds from HSBC and other leading fund managers. As well as multi-asset funds, you’ll find index trackers and single-asset funds.
    When you click on the next page it says this 
    Choose from nearly 400 funds, including index trackers, from 22 leading fund managers
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