Best Stock&Share Isa for beginners

Arsenal2019

Arsenal2019 said:

ColdIron said:

Arsenal2019 said:

Does HL charge per month / annual? Or is it just per trade 

The platform fee (that 0.45% pa) is taken monthly. Trading fees are taken as you trade

Sorry, unless I’m being extremely thick, but how is it taken monthly if it’s an annual fee?

To keep it simple, imagine you have a fund worth £1,000. The annual cost of that is £4.50 which is 37.5 pence per month

Obviously they take into account the value of your holding throughout the year

If you sold £500 after 6 months you would pay 6 * 0.375 = £2.25 and 6 * 0.1875 = £1.125 or £3.375 over the year

Ahh yes that makes perfect sense thank you.
So really, it is not that expensive to have the account then is it- nowhere near as bad as I thought. 

I presume you don’t get charged anything for not trading every month or anything like that.

the only noticeable fee then really is the £11-13 fee you’re changed when buying/selling?

Alexland

Arsenal2019 said:

Do you find the fees are expensive ?

Vanguard's fees are detailed on their website at 0.15% pa for the platform and funds/ETFs at around 0.2% depending on which you pick. Some of their funds/ETFs are much lower. Vanguard charge extra for live ETF trading. As I said before if you want a cheaper option for ETFs consider InvestEngine who have a signup bonus but are not well established. Still they (not the ETFs) are still covered up to £85k by FSCS.

sevenhills

HCIMbtw said:

i played around with a couple of grand on trading 212 over the past year and bit and with the exception of GME, pretty much chose terrible across the board, found myself impatient and making bad decisions.. (this is in the middle of pretty much the biggest bull run ever) it was a learning process, i don't regret it, but lost a couple of hundred quid in the process

HCIMbtw said:
I'm 44% up since starting investing in October 2019 in their ISA.. i'll be negative if global markets crash, but whatever, just stick with the long term plan and keep contributing 

So you are up overall, cannot blame the platform for some losses.

grumiofoundation

Arsenal2019 said:

Arsenal2019 said:

ColdIron said:

Arsenal2019 said:

Does HL charge per month / annual? Or is it just per trade 

The platform fee (that 0.45% pa) is taken monthly. Trading fees are taken as you trade

Sorry, unless I’m being extremely thick, but how is it taken monthly if it’s an annual fee?

To keep it simple, imagine you have a fund worth £1,000. The annual cost of that is £4.50 which is 37.5 pence per month

Obviously they take into account the value of your holding throughout the year

If you sold £500 after 6 months you would pay 6 * 0.375 = £2.25 and 6 * 0.1875 = £1.125 or £3.375 over the year

Ahh yes that makes perfect sense thank you.
So really, it is not that expensive to have the account then is it- nowhere near as bad as I thought. 

I presume you don’t get charged anything for not trading every month or anything like that.

the only noticeable fee then really is the £11-13 fee you’re changed when buying/selling?

On the vast majority of platforms you don't have to pay trading fees to buy/sell if you buy funds (as opposed to ETFs, shares).

With the amounts you are looking at paying trading fees would ideally be avoided.  

E.g. HL fees 
https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

Arsenal2019

On the vast majority of platforms you don't have to pay trading fees to buy/sell if you buy funds (as opposed to ETFs, shares).

With the amounts you are looking at paying trading fees would ideally be avoided.  

E.g. HL fees 
https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

Thanks. I think I’ve landed at the conclusion of - start with Freetrade especially because of the low amounts I will be starting with and low & regular investments each month. Once I’ve built my portfolio and knowledge up, then move to HL?
thoughts?

ColdIron

Arsenal2019 said:

Arsenal2019 said:

ColdIron said:

Arsenal2019 said:

Does HL charge per month / annual? Or is it just per trade 

The platform fee (that 0.45% pa) is taken monthly. Trading fees are taken as you trade

Sorry, unless I’m being extremely thick, but how is it taken monthly if it’s an annual fee?

To keep it simple, imagine you have a fund worth £1,000. The annual cost of that is £4.50 which is 37.5 pence per month

Obviously they take into account the value of your holding throughout the year

If you sold £500 after 6 months you would pay 6 * 0.375 = £2.25 and 6 * 0.1875 = £1.125 or £3.375 over the year

Ahh yes that makes perfect sense thank you.
So really, it is not that expensive to have the account then is it- nowhere near as bad as I thought. 

I presume you don’t get charged anything for not trading every month or anything like that.

For low sums you want a percentage fee provider that does not charge for trades, a fraction of a percent on small values is a very small fee

Many platforms such as HL, Vanguard etc use this charging model for funds (UTs/OEICs). HL (0.45%) will charge you £4.50 pa while Vanguard (0.15%) would save you £3.00 a year at £1.50 on a £1,000 holding. Once your sums become considerably larger you could look for fixed fee providers

the only noticeable fee then really is the £11-13 fee you’re changed when buying/selling?

If you stick to funds there is usually no trading fee. £0. Only securities that trade on an exchange such as company shares, investment trusts and ETFs incur trading fees (and possibly stamp duty) although Vanguard do not charge at all for their ETFs if you don't use live trading

Most novice investors would be well advised to stick to funds

https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

grumiofoundation

Arsenal2019 said:

On the vast majority of platforms you don't have to pay trading fees to buy/sell if you buy funds (as opposed to ETFs, shares).

With the amounts you are looking at paying trading fees would ideally be avoided.  

E.g. HL fees 
https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

Thanks. I think I’ve landed at the conclusion of - start with Freetrade especially because of the low amounts I will be starting with and low & regular investments each month. Once I’ve built my portfolio and knowledge up, then move to HL?
thoughts?

Freetrade ISA costs £3 per month - £36 per year 
HL 0.45% - on £1000 that’s £4.50
vanguard 0.15% - £1.50 

So going with Freetrade ISA Costs you over £30 - that’s your first 3% of returns gone.

As I said before investing in just one diversified fund is a sensible way to go in which case a limited fund offering may not the worse thing in the world…

Arsenal2019

grumiofoundation said:

Arsenal2019 said:

On the vast majority of platforms you don't have to pay trading fees to buy/sell if you buy funds (as opposed to ETFs, shares).

With the amounts you are looking at paying trading fees would ideally be avoided.  

E.g. HL fees 
https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

Thanks. I think I’ve landed at the conclusion of - start with Freetrade especially because of the low amounts I will be starting with and low & regular investments each month. Once I’ve built my portfolio and knowledge up, then move to HL?
thoughts?

Freetrade ISA costs £3 per month - £36 per year 
HL 0.45% - on £1000 that’s £4.50
vanguard 0.15% - £1.50 

So going with Freetrade ISA Costs you over £30 - that’s your first 3% of returns gone.

As I said before investing in just one diversified fund is a sensible way to go in which case a limited fund offering may not the worse thing in the world…

So, just to confirm, when I buy ETF’s and Index funds on HL, I don’t pay the fee? I only pay the fee for when I invest into individual stocks ?? So the only fee I will be paying is 0.45% p/a on the what I have invested ?

Arsenal2019

ColdIron said:

For low sums you want a percentage fee provider that does not charge for trades, a fraction of a percent on small values is a very small fee

Many platforms such as HL, Vanguard etc use this charging model for funds (UTs/OEICs). HL (0.45%) will charge you £4.50 pa while Vanguard (0.15%) would save you £3.00 a year at £1.50 on a £1,000 holding. Once your sums become considerably larger you could look for fixed fee providers

the only noticeable fee then really is the £11-13 fee you’re changed when buying/selling?

If you stick to funds there is usually no trading fee. £0. Only securities that trade on an exchange such as company shares, investment trusts and ETFs incur trading fees (and possibly stamp duty) although Vanguard do not charge at all for their ETFs if you don't use live trading

Most novice investors would be well advised to stick to funds

https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

Thank you. Okay so what you’re saying is that I would be better starting with someone like HL due to the lower fees. 

I would only get charged 0.45% per annum and only get charged £11-13 for individual stocks I purchase? I.e. buying a share directly from Microsoft ?

ColdIron

Arsenal2019 said:

grumiofoundation said:

Arsenal2019 said:

On the vast majority of platforms you don't have to pay trading fees to buy/sell if you buy funds (as opposed to ETFs, shares).

With the amounts you are looking at paying trading fees would ideally be avoided.  

E.g. HL fees 
https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

Thanks. I think I’ve landed at the conclusion of - start with Freetrade especially because of the low amounts I will be starting with and low & regular investments each month. Once I’ve built my portfolio and knowledge up, then move to HL?
thoughts?

Freetrade ISA costs £3 per month - £36 per year 
HL 0.45% - on £1000 that’s £4.50
vanguard 0.15% - £1.50 

So going with Freetrade ISA Costs you over £30 - that’s your first 3% of returns gone.

As I said before investing in just one diversified fund is a sensible way to go in which case a limited fund offering may not the worse thing in the world…

So, just to confirm, when I buy ETF’s and Index funds on HL, I don’t pay the fee? I only pay the fee for when I invest into individual stocks ?? So the only fee I will be paying is 0.45% p/a on the what I have invested ?

You are confusing 2 fees. The platform fee and the trading fee

Both HL and Vanguard charge a platform fee (that 0.45% or 0.15% pa) whatever you buy in an ISA, neither charge a trading fee for funds

HL will charge you an additional trading fee for ETFs

Vanguard won't charge you an additional trading fee for ETFs if you don't use live trading