ISAs: Why Halifax rather than IWeb?

Type_45

Halifax is raising it's annual fee to £36. Then it's £9.50 per trade.

IWeb has a one-off charge of £100. Then it's £5 per trade.

Halifax own Iweb.

Why would anyone not be with Iweb when they are cheaper but offer the same service? 

NottinghamKnight

At a single trade per year it's going to take a while for iweb to be cheaper. Charges may well have changed in that time as well. Both are pretty cheap, certainly for large portfolios and infrequent trading compared to percentage fee platforms. 

Thrugelmir

Type_45 said:

Why would anyone not be with Iweb when they are cheaper but offer the same service? 

Different target market. Halifax will offer the full stockbroking service. Whereas Iweb is the online volume driven retail offering. 

Similar relationship exists between Jarvis Investment Managers and X-O. 

BrockStoker

Thrugelmir said:

Type_45 said:

Why would anyone not be with Iweb when they are cheaper but offer the same service? 

the full stockbroking service

What does this amount to?

On iWeb they won't allow some low liquidity stocks to be added to their platform in my experience. Would that be different with Halifax?

EthicsGradient

Halifax (in the charges from April 2021) offer regular investment at £2 per trade. So if someone wants to buy something each month, they'll make the £36 back - and there won't be the £100 charge to open it. If you only sell occasionally, it could be better value for a long time.

Type_45

EthicsGradient said:

Halifax (in the charges from April 2021) offer regular investment at £2 per trade. So if someone wants to buy something each month, they'll make the £36 back - and there won't be the £100 charge to open it. If you only sell occasionally, it could be better value for a long time.

What does that £2 charge refer to? I have VLS100 accumulator, so I don't think that applies to my product.

EthicsGradient

https://www.halifax.co.uk/assets/pdf/filestore/costandchargesapril21.pdf
"Regular investments £2.00 per trade" (and it's the same amount before April)
https://www.halifax.co.uk/investing/start-investing/share-dealing-services.html Under "How can you buy stocks and shares?":

"When your account is set up, head to the dealing page in your account and complete your order details, review and confirm the trade.

If you would prefer to invest regularly this can be set up with ease. Just select regular investments within the dealing section of your account. At this point, you can set up a regular subscription in to your account and select which investment to buy and at what cost or quantity. You can then sit back and leave the rest to us."

It's for the funds, ETFs of shares that are popular enough for them to be able to pool purchases from several people together. I'm sure VLS100 would be one.

Type_45

Speak now or forever hold your peace:

I hold VLS100 in an ISA with Halifax Share Dealing.

 I make about 6 trades/purchases into VLS per year. 

Is there any reason why I shouldn't switch to Iweb, which appears to be cheaper? 

Alexland

Type_45 said:

I make about 6 trades/purchases into VLS per year.
Is there any reason why I shouldn't switch to Iweb, which appears to be cheaper?

If those 6 purchases were schedueld at £2 each then that wouild be £12 plus the new £36 pa so £48 pa.

In comparison iWeb would cost you £5 per trade so £30 pa.

So after around 6 years (considering the cost of money) you should have recovered the £100 iWeb setup charge by saving £18 pa.

Assuming that nothing changes in the meantime.

grumiofoundation

Alexland said:

Type_45 said:

I make about 6 trades/purchases into VLS per year.
Is there any reason why I shouldn't switch to Iweb, which appears to be cheaper?

If those 6 purchases were schedueld at £2 each then that wouild be £12 plus the new £36 pa so £48 pa.

In comparison iWeb would cost you £5 per trade so £30 pa.

So after around 6 years (considering the cost of money) you should have recovered the £100 iWeb setup charge by saving £18 pa.

Assuming that nothing changes in the meantime.

Like for example the new financial system that is (apparently) coming - although OPs recent logical and well thought out thread on the subject seems to have been removed...

Type_45

grumiofoundation said:

Alexland said:

Type_45 said:

I make about 6 trades/purchases into VLS per year.
Is there any reason why I shouldn't switch to Iweb, which appears to be cheaper?

If those 6 purchases were schedueld at £2 each then that wouild be £12 plus the new £36 pa so £48 pa.

In comparison iWeb would cost you £5 per trade so £30 pa.

So after around 6 years (considering the cost of money) you should have recovered the £100 iWeb setup charge by saving £18 pa.

Assuming that nothing changes in the meantime.

Like for example the new financial system that is (apparently) coming - although OPs recent logical and well thought out thread on the subject seems to have been removed...

Indeed.  Someone is suppressing the truth.