Global Tracker - Methodology and questions

Alexland

Yes platforms with capped charges on exchange traded investments apply a percentage up to a published cap (which may depend on the type of account). That's different to fixed price platforms where the price is the same regardless of if you hold an OEIC or exchanged traded investment. We have a mix of uncapped percentage, capped percentage and fixed price investment accounts.

Albermarle

Using Fidelity as an example . Their platform fee is 0.35% ( below £250K) and it applies to every type of investment you hold on the platform.
However for 'exchange traded assets' = shares; ETF's & Investment Trusts, the total cost pa is capped at £45. So effectively you only pay the full 0.35% on OEIC's( which is on the higher side). There is no charge for buying or selling OEICs but each buy or sell of the exchange traded assets cost £10.
So some clever folk hold exchange traded assets on one of these platforms that have capped prices, and OEICS on a different platform.

ChilliBob

Interesting, so if you were looking towards a passive 'buy and hold' idea, and wanted to diversify platforms then in effect you could hold a considerable amount in an ETF on one of these platforms for £55 or something - the £45 cap and the £10 trading fee (assuming one trade), vs the alternative of say £5 per trade on iWeb and £100 a year (if you bought in now vs 2020 prices). 

That's very useful to know. Thanks both

grumiofoundation

ChilliBob said:

Interesting, so if you were looking towards a passive 'buy and hold' idea, and wanted to diversify platforms then in effect you could hold a considerable amount in an ETF on one of these platforms for £55 or something - the £45 cap and the £10 trading fee (assuming one trade), vs the alternative of say £5 per trade on iWeb and £100 a year (if you bought in now vs 2020 prices). 

That's very useful to know. Thanks both

Assuming you are talking about stocks and shares ISA (and share dealing account)  iWeb isn’t £100 per year this is a one off fee to open. 

ChilliBob

Yeah my bad, I worded that wrong. I have an iWeb account (just got in at the £25 level late Dec!).

Alexland

grumiofoundation said:

Assuming you are talking about stocks and shares ISA (and share dealing account)  iWeb isn’t £100 per year this is a one off fee to open. 

Exactly it's all about getting the best platform combination for the types of account you are using and investments that you want to hold. For a large account valuation the iWeb fixed price SIPP at £90/180 pa is at least double the ongoing cost of a Fidelity capped SIPP in ETFs at £45 pa.

ChilliBob

Awesome, I may use this to setup an ss isa for my partner and just use a simple widest two focus ETF. 

dales1

Also consider Halifax sharedealing to hold your ETFs.

No holding fee at all.

Just pay a dealing fee of £12.50 (cheaper on cheap-days, 2% for dividend reinvestment).

Plus about £12 pa ISA fee (if wanted).

ChilliBob

Cheers, another good tip mate! 

Alexland

dales1 said:

Also consider Halifax sharedealing to hold your ETFs.

No holding fee at all.

Just pay a dealing fee of £12.50 (cheaper on cheap-days, 2% for dividend reinvestment).

Plus about £12 pa ISA fee (if wanted).

HSD is the same as iWeb with different colours and charges covered under the same FSCS protection as they are the same provider. HSD have announced new pricing replacing the £12.50 pa ISA charge with a new £36 pa customer charge covering both Share Dealing and ISA accounts so overall pretty unattractive compared to iWeb unless you make extensive use of the regular investment £2 trade rate.