ISA platform to hold HSBC global strategy

scoot65

Alexland said:

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.

Many thanks Alexland. I'll do some calculations and see what would be best for me.

oz0707

Thanks for the replies. Interesting to see FSCS is different for the investment services compared to retail banking. That takes the platform risk away then?

Albermarle

The question about platform risk is asked a lot on here and the answer is always the same .
If you use a mainstream platform the risk is negligible and not worth worrying about .

Some  people hold seven figure sums on just one platform ( not me by the way !) 

An investment platform is not like a bank, lending money to people who may not be able to pay it back .

oz0707

Coming back to this and just trying to tidy my affairs up.

I see the H&L annual fund fee at .45% and AJ Bell at .25% So it's costing me 20 quid extra on every 10k held in the account each year. Doesn't sound a lot but considering doing a transfer once this years govt bonus is paid and invested. Do they automatically transfer your holdings too or does H&L sell up, cash you out then you re buy through AJ Bell?

Albermarle

oz0707 said:

Coming back to this and just trying to tidy my affairs up.

I see the H&L annual fund fee at .45% and AJ Bell at .25% So it's costing me 20 quid extra on every 10k held in the account each year. Doesn't sound a lot but considering doing a transfer once this years govt bonus is paid and invested. Do they automatically transfer your holdings too or does H&L sell up, cash you out then you re buy through AJ Bell?

You have a choice to transfer in cash ( so either you or HL will sell the holdings ) or 'in specie' which means transferring the investments . The transfer of cash will normally be a lot quicker but you will be out of the market for a short period.
You should note that all transfers out of HL seem to be very slow and there is a big backlog.

oz0707

Is 60 quid per year worth the hassle? If in spec i suppose it doesn't matter how long it takes - not as if you are loosing interest as such

oz0707

Also what is the advantage to holding HSBC global strategy in HSBC as opposed to vanguard ISA?
Sorry if we are going round in circles and I seem a bit thick to me the vanguard account seems to have .1% cheaper fees .15 vs .25 %?

oz0707

^ scrap that I suppose vanguard ISA limited to vanguard funds 

grumiofoundation

oz0707 said:

Also what is the advantage to holding HSBC global strategy in HSBC as opposed to vanguard ISA?
Sorry if we are going round in circles and I seem a bit thick to me the vanguard account seems to have .1% cheaper fees .15 vs .25 %?

You can only hold VG funds on the vanguard platform.

Assume this is a separate question to your question about lifetime ISA (ref to government bonus). Since neither HSBC nor vanguard offer a lifetime ISA

oz0707 said:

Coming back to this and just trying to tidy my affairs up.

I see the H&L annual fund fee at .45% and AJ Bell at .25% So it's costing me 20 quid extra on every 10k held in the account each year. Doesn't sound a lot but considering doing a transfer once this years govt bonus is paid and invested. Do they automatically transfer your holdings too or does H&L sell up, cash you out then you re buy through AJ Bell?

oz0707

Yes I was looking at a general tidy up today.
Now I am thinking potentially :

transfer H&L to AJ Bell
Open new S&S isa to hold HSBC - probably HSBC if I confirm no extra platform risk.

I may fund the HSBC isa with a transfer in of an existing cash ISA. The interest is peanuts and I hold far too much cash already...