ISA platform to hold HSBC global strategy

oz0707

I've got a hargreaves landsdown LISA which I hold a VLS product in. Now looking to buy HSBC global strategy fund. For the benefit of spreading a little bit of platform risk I want to hold this in another ISA. I already have a Halifax S&S Isa for a small amount of active buying and selling of individual shares. Would this be the lowest cost option to hold the HSBC fund in or do I need to look for another platform? Can I even have 2 s&s Isa's at the same time? (providing contributions are kept to limits)

TIA

oz0707

Found this link through another thread, handy
https://monevator.com/compare-uk-cheapest-online-brokers/

eskbanker

oz0707 said:

Can I even have 2 s&s Isa's at the same time? (providing contributions are kept to limits)

The rule is that you can't pay new money into more than one ISA of each type in any tax year, so you can have two S&S ISAs but can only pay new money into one.

So, if you're using a Halifax S&S ISA already (including paying new money in) then you'd need to use that if you want to start buying into funds too.

Alexland

Buying and selling individual shares on Halifax Share Dealing is expensive unless you are using their regular investment feature but still they are increasing their ongoing charges soon.
Have you considered just selling the shares and transferring the ISA to the HSBC Global Investment Centre platform (0.25% ongoing) if you qualify where you can continue to contribute and invest in HSBC GS funds?
https://www.hsbc.co.uk/investments/isas/hsbc-global-strategy-portfolios/
Or alternatively switch funds in your HL LISA from VLS to HSBC GS and then transfer your HSD ISA to Vanguard Investor (0.15%) to invest in VLS?

green_man

The Halifax is a cheap platform if you have quite a high value of holdings  and you don’t trade much.  I use Halifax and have HSBC GS (in a Halifax SIPP).  For my fund value and trading profile they are one of the cheapest options YMMV.

oz0707

Thanks for the reminders all probably time I looked into the Halifax platform to see if it's cost effective. As for contributions I've only put money into the LISA this year at present so still have the option to open and contribute to another new S&S ISA

oz0707

I'd probably want to stay away from HSBC platform as I already do my personal banking and business banking with them. The whole point of another platform is to spread the risk

underground99

oz0707 said:

I'd probably want to stay away from HSBC platform as I already do my personal banking and business banking with them. The whole point of another platform is to spread the risk

The HSBC entity that runs the investment platform is separate to the HSBC entity that provides banking services, and FSCS protection applies separately to investment firms vs depositary (banking) business.

Alexland

oz0707 said:

I'd probably want to stay away from HSBC platform as I already do my personal banking and business banking with them.

It's up to you but if you have a current (or savings) account with HSBC that's ideal as that's a requirement to use their investment center service. Given you are looking to invest the money into an HSBC fund it seems reasonable to hold it on the HSBC platform. It's the cheapest percentage charge platform you will find to hold HSBC funds. AJ Bell are the same 0.25% but charge £1.50 per fund trade. It doesn't sounds like this investment will be big enough to consider fixed price platforms?

scoot65

Alexland said:.........if you have a current (or savings) account with HSBC that's ideal as that's a requirement to use their investment center service. Given you are looking to invest the money into an HSBC fund it seems reasonable to hold it on the HSBC platform. It's the cheapest percentage charge platform you will find to hold HSBC funds. AJ Bell are the same 0.25% but charge £1.50 per fund trade. It doesn't sounds like this investment will be big enough to consider fixed price platforms?

What are iWeb charges compared to HSBC platform? Is HSBC still cheaper?
I'm looking to buy 20k worth of HSBC GS (Balanced) into an S&S ISA, and a further 30 to 40k into a GIA. I don't intend to do any further trading once these initial funds have been bought.

I have an HSBC current account and have an S&S ISA and GIA with iWeb.
     
I've looked at the HSBC Investment Centre site and it says that the HSBC GS funds have a cost of total 0.49% ongoing......

Alexland

scoot65 said:

What are iWeb charges compared to HSBC platform? Is HSBC still cheaper?

If the amount is big enough iWeb will be cheaper over the long term for example on £20k the HSBC 0.25% would be £50pa compared to iWeb's £100 setup then £5 per trade. If you buy the accumulation versions of the fund then you should only need to trade when contributing or doing a Bed & ISA perhaps. Do the maths for your likely trade pattern to determine when the setup fee will have been covered by ongoing cost savings.

scoot65 said:
I've looked at the HSBC Investment Centre site and it says that the HSBC GS funds have a cost of total 0.49% ongoing......

The total cost you are looking at probably includes the 0.25% platform fee.