Question for iWeb Users. When Buying Stock, Why do iWeb leave £00.01 Sitting in The Account??

scoot65

OK, I admit, this is not a major issue, but it does have me curious.
I've noticed that the last two or three times I've bought using iWeb for my ISA or Share Dealing Account, iWeb don't take the full amount. They leave behind 1p sitting in the accounts.
I bought £20k of HSBC GS (Acc)  within my ISA and the actual amount used to buy was £19,999.99 leaving £00.01 sitting in the account. Same with buying in my GIA / Share Dealing account. If I buy £10k worth I get £9,999.99 and have that pesky £00.01 sitting in the account!!

Any Ideas why this happens? Any other iWeb users have this happen?

I know this is not a major issue and I don't want to clog up iWeb's customer telephone lines with an unimportant issue..... I'm just curious as to why £00.01 is left sitting there in my ISA and GIA accounts...   


    

Type_45

Halifax Share Dealing does the same.


How is Iweb, by the way? 

Halifax Share Dealing now has an app.

Blackavar

Sorry to hijack but I know iWeb (that I use for my S&S ISA) is owned by Halifax but is HSD the same deal but a more 'modern' version?

scoot65

The £00.01 thing didn't happen initially, it's just the last two or three times. So something's changed.

Regarding how I find iWeb:-
I've been with iWeb for 3 years and find them good for my needs.  I buy for my S&S ISA each year and do a couple of buys in my GIA each year.
Yes, the website is dated / basic, but it does what is needed and that's trading. The two times I've contacted customer support the 'phone was answered pretty quickly and the service I received was good.  I've certainly got no complaints about iWeb.

   

Type_45

I'm tempted to switch to Iweb from HDD.

But I've been looking forward to HSDs new app for years and it's about to be released! (It's already available for Apple, but the Android version isn't quite out yet).


I'm not sure the app is worth the extra few hundred quid over the course of the next 5 years though 🤔

EthicsGradient

Perhaps they are working out what fraction of a unit can be bought, with that leaving a fraction of a penny, which they then round up to your advantage, ie to £0.01.
With II, when I have had a regular investment instruction for a fund with a round number of pounds, it has ended up as the exact amount, 2p less, or 1p more. If it's only the last 2 or 3 times, maybe it's still just random.

scoot65

EthicsGradient said:

Perhaps they are working out what fraction of a unit can be bought, with that leaving a fraction of a penny, which they then round up to your advantage, ie to £0.01.
With II, when I have had a regular investment instruction for a fund with a round number of pounds, it has ended up as the exact amount, 2p less, or 1p more. If it's only the last 2 or 3 times, maybe it's still just random.

Yes, that could vey well be the reason. I hadn't thought about rounding up. 

easterbunni

Somewhat off topic, but Vanguard added 1p to my pension. I transferred in 10K, but the Total Cost is £10,000.01, so not sure where that comes from! Upsets my liking for nice round figures though!

milton1970

I find the restriction of only 90% of available funds being available for foreign investment trades more frustrating ... this can be a big restriction 

quirkydeptless

Could be that whoever was transferring the rounding errors to their account has left