HL ISA charges?

TUVOK

I'm looking for clarification on HL ISA charges please?

I have a HL ISA  holding funds, shares and IT's.
From what I understand? I pay 0.45% charges on funds, and 0.45% charges on shares and IT's capped at £45-00 per holding per year? Do I have this correct please?

My HL charges are rising more each month, the Hl service is still reasonable, although not as good as once was, But I feel that I must reduce the scale of my charges.
Thus if I have my facts correct, I can then calculate if it is worth changing fund holdings into the equivalent It holding or a like IT.

The simple way would be to change to a platform which had lesser charges for funds, but I have read so many horror stories about platform changes that it puts me off.

Thanks for any/all comments and advice.


 

Albermarle

Funds and IT's are not the same thing , Normal comment is that IT's are more risky , although some do very well in some sectors.
It does not make sense to let your investing strategy  be led by platform charges .
read so many horror stories about platform changes that it puts me off.
I do not remember many 'horror stories ' on this forum .

Just change to a cheaper platform for funds . Which one will largely depend on the size of your investment and how often you are likely to buy and sell.

grumiofoundation

Charges are also capped for ETFs - If you are invested in passive funds there should be a similar/equivalent ETF available.

Depending on the funds there may not be an equivalent IT/ETF. 


It's not £45 per holding it's £45 across all exchange traded instruments. 
https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

dunstonh

The simple way would be to change to a platform which had lesser charges for funds, but I have read so many horror stories about platform changes that it puts me off.

HL is one of the more expensive platforms but has good software and is not a bad option for an inexperienced investor.  

When selecting a platform, you don't just do it on cost.  You do it on financial strength, software functionality and options and ease of use.  HL scores well in those areas (putting aside recent problems on transfers).   Many of the cheapest platforms remove functionality or have quirky software.   That may be fine for some people who would not use that functionality or rarely engage with the platform but for others, it can make a real difference to them.

You should not let cost be the primary driver.

Thus if I have my facts correct, I can then calculate if it is worth changing fund holdings into the equivalent It holding or a like IT.

Investment trusts have dealing costs and do not get FSCS protection.   Broadly speaking, they are considered a more advanced option (due to you needing to understand how they work differently to UT/OEICs) and in many cases, the equivalent is a notch further up the risk scale compared to the UT/OEIC.   That is not to say they are unsuitable. It is just that you should not select them on the basis of cost.

BuildTheWall

I converted all my fund holdings into investment trusts, because I believe ITs are a more advanced vehicle for investments and structurally better than funds. For example ITs can have gearing and can also hold private equity or illiquid investments which are not feasible in a fund structure. 

But you can go that route only if you are fully aware of the risks and understand them. Also not every fund will have an IT equivalent. 

quirkydeptless

HL is expensive for larger fund holdings. I converted my ISA into an equivalent portfolio (well near enough) of IT's and ETFs a while back and the £45 cap applies as one overall cost to all of those type of holdings.

I have one relatively small OEIC Fund in it (which I get a loyalty bonus on which helps offset the platform costs a lot) for adding small amounds as the transaction cost on it is free, and when it gets big enough, I can sell it and buy more IT or EFT.

If you are going to use HL, you need to check carefully how their pricing structure works or you can get stung!

BuildTheWall

Also don’t forget that transaction fees for ITs / ETFs / Shares are very high with HL, compared to zero for funds. So estimate the number of transactions you’ll be doing a year and compare total cost.

It works well for me and anyone who follows a buy and hold strategy. The high transaction fees make you think twice before trading. Do your research well or you’ll end up shuffling regularly. 

ColdIron

BuildTheWall said:

Also don’t forget that transaction fees for ITs / ETFs / Shares are very high with HL

Unless you can use their monthly investing option at a very reasonable £1.50. Works for many people and investing patterns