Better to use more than one investment platform?

Gudrun

Are there benefits to spreading  ISA and/or stocks and shares investments over more than one platform?   I have read in various terms and conditions that platforms won't accept responsibility if nominee holder of securities defaults.   I am just wondering if this is a significant risk, and therefore using more than one platform would be advisable.   Thank you for your advice.

dunstonh

 I am just wondering if this is a significant risk, and therefore using more than one platform would be advisable.  

It's not unless you are using non-mainstream/obscure investments.

Are there benefits to spreading  ISA and/or stocks and shares investments over more than one platform? 

I never bother.  Although I only use well capitalised, profitable platforms that do not have high levels of illiquid investments.   Many platforms are small, unprofitable and chasing market share.  So, if you are with one of those, then spreading may be a more sensible idea.

Gudrun

Thank you very much for your kind help.

happybagger

A different advantage of a second platform is if there are IT issues at the first, at least there is another option, should you either wish to withdraw or invest at a particular time

dunstonh

happybagger said:

A different advantage of a second platform is if there are IT issues at the first, at least there is another option, should you either wish to withdraw or invest at a particular time

three quarters of all platforms run on software from just three suppliers.  One software supplier, in particular, does a significant number.   So, pick three platforms all using the same backend software then all three will suffer the same software issues.

MiserlyMartin

My take on it is 1, costs for the funds you hold and 2. Range of funds.

For example if you hold Vanguard funds, correct me if I'm wrong, but I think the charges are the lowest in the market on a vanguard SIPP, compared to other providers. But you only can buy 75 vanguard funds. Whereas say Fidelity has a much wider range of funds and shares even available in an ISA. Therefore why not have multiple platforms and just keep your vanguard funds in a vanguard account.

IvanOpinion

MiserlyMartin said:

My take on it is 1, costs for the funds you hold and 2. Range of funds.

For example if you hold Vanguard funds, correct me if I'm wrong, but I think the charges are the lowest in the market on a vanguard SIPP, compared to other providers. But you only can buy 75 vanguard funds. Whereas say Fidelity has a much wider range of funds and shares even available in an ISA. Therefore why not have multiple platforms and just keep your vanguard funds in a vanguard account.

In my case I had money split across  II, Aviva, Halifax, Vanguard, Nutmeg and Fidelity.  I have now consolidated everything (apart from a couple of shares) to II and am saving myself several thousand every year in fees.  The main reason was that I already had an ISA with II so adding other ISAs meant I would pay no additional fees and moving my pension meant another £120pa which was a fraction of what I was paying Aviva.

So look at your fees as a whole (taking into account the amounts and types of investments).

masonic

MiserlyMartin said:

For example if you hold Vanguard funds, correct me if I'm wrong, but I think the charges are the lowest in the market on a vanguard SIPP, compared to other providers.

Vanguard charges 0.15% capped at £375 per year, so on a £200k SIPP you'd pay £300 per year

iWeb and Halifax Sharedealing charge £90 for a <£50k SIPP and £180 for a >£50k SIPP, so on a £200k SIPP you'd make a saving of £120 per year vs Vanguard

If you hold a S&S ISA, Interactive Investor charges just £120 per year extra for a SIPP, so on a £200k SIPP you'd make a saving of £180 vs Vanguard

If you invest in ETFs/Investment Trusts/shares only, AJ Bell charges 0.25% capped at £120 per year, so on a £200k SIPP you'd make a saving of £180 vs Vanguard, while Jarvis X-O charge £99 per year, a saving of £201

Nebulous2

I'm just starting out - but have two ISAs, one with Fidelity and one with ii. My wife opened an ISA with ii and will get £125 from a cashback site. She then referred me and got £100 for doing so. I got my first year of fees free for being referred. 

If we don't trade regularly, she effectively has her first two years free, and I have my first one.

ChilliBob

Different platforms aside from having different ranges of funds have different classes too - for example II has some funds on a considerably lower OCF than iWeb, and Fidelity have (fewer) but some like this too - e.g. offering the s Class of Rathbone Global Opportunities. 

I have four platforms for this reason really, iWeb, Fidelity, II and Lloyds  (Yes, I know iWeb and Lloyds are basically the same - the latter is far cheaper for fund trades though which is where I hold my partner's ISA)

Nebulous2

Deleted_User said:

Nebulous2 said:

I'm just starting out - but have two ISAs, one with Fidelity and one with ii. My wife opened an ISA with ii and will get £125 from a cashback site. She then referred me and got £100 for doing so. I got my first year of fees free for being referred. 

If we don't trade regularly, she effectively has her first two years free, and I have my first one.

However, when the "free" years are over, will your accounts be big enough that it's worth paying II's £120 per year fees? And if not, are you planning to transfer away from II, once you've stayed long enough to secure the cashback?

I'll really need to wait and see. I can look at relative costs when we reach that point, and see if it is worth switching.