Different Investing Platform

AAZ

I have recently started investing (small amount). I am currently using HL as perhaps they are most popular but trying to understand the cost over long term. Is other platform such as fidelity /vanguard cheaper or the they are more and less the same. I have no issue with HL as such but if it makes more financial sense to change platform then I rather do now than after 10 years.
Thanks for opinion

Alexland

Generally HL are one of the more expensive platforms under most circumstances but there are some rare scenarios where they can be attractive.
The best choice of platform depends on the investments you have chosen, the frequency and value of your trades, tax wrapper and account valuation. If you give us more information we might be able to suggest cheaper alternatives.

GeoffTF

Yes, HL is usually one of the more expensive options. Here is a comparison:

https://monevator.com/compare-uk-cheapest-online-brokers/

AAZ

Alexland said:

Generally HL are one of the more expensive platforms under most circumstances but there are some rare scenarios where they can be attractive.
The best choice of platform depends on the investments you have chosen, the frequency and value of your trades, tax wrapper and account valuation. If you give us more information we might be able to suggest cheaper alternatives.

I am investing in tracker fund (legal and general + Fidelity index world) via ISA. Plan is for long term saving and hoping to invest 1K monthly . 

Alexland

In which case you would find similarly priced funds/etfs at Vanguard with a significant saving on platform fees 0.45% at HL compared to 0.15% at Vanguard. Even if you have to pay a tiny bit more on the fund costs it will be worth it overall. After a couple of years once the account valuation is high enough consider transferring the investments to a platform with no ongoing charge where you would only pay for trades which should be cheaper.

ColdIron

For smaller amounts in funds HL (or any percentage fee provider) are not unreasonable

In your first year, assuming £1,000 a month, your average balance will be £6,000 which at 0.45% will cost you £27 with no transaction charges. AJ Bell, a competitor, charges 0.25% which is £15 but has 12 * £1.50 transaction charges so £33 in the first year

As the sums increase it may be worth looking at cheaper providers but in the early years you probably won't shave much off

GeoffTF

AAZ said:

Alexland said:

Generally HL are one of the more expensive platforms under most circumstances but there are some rare scenarios where they can be attractive.
The best choice of platform depends on the investments you have chosen, the frequency and value of your trades, tax wrapper and account valuation. If you give us more information we might be able to suggest cheaper alternatives.

I am investing in tracker fund (legal and general + Fidelity index world) via ISA. Plan is for long term saving and hoping to invest 1K monthly . 

You will have a wider choice of platforms if you use ETFs rather than OEICs. Vanguard Developed World ETF (ticker VEVE) is similar to Fidelity World:

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ucits-etf-usd-distributing/overview

ETFs usually avoid percentage charges (an exception is Vanguard's own platform). There is also an accumulating version VHVG. That is not available on Vanguard's own platform, but is available on the others.

[Deleted User]

You can download snowman’s spreadsheet (last updated last year so slightly out of date) which allows you put in variables and check costs 

Link to google drive is half way down the first post 


https://forums.moneysavingexpert.com/discussion/5583030/coolly-comparing-investment-platform-charges-snowmans-spreadsheet/p1

lvf

I use Freetrade for all my investing. Unlike many others, there's no fees on trades, but the downside is the ISA costs £3/month. Taking the transaction fees out, it was worth it for me.
Just a word of warning, they are limited in what they offer, but do offer all of the Vanguard ETFs for example. You can view all of the available stocks/ETFs etc on the website before opening an account though

DireEmblem

How about InvestEngine for ETFs.  Take up their RAF offer, so stick in £100 and get a £75 bonus, and then also do the DIY option.

No ETF fees.

Trading212 is still shut to new UK investors.  Freetrade as above charge £3 a month.

I would also consider bonus bagging the Nutmeg/Wealthify bonuses as well, even if just in a GIA, and then merge once the bonus period is up to a cheaper platform.

maxsteam

Yes. HL are more expensive than some other platforms but HL are a full member of the London Stock Exchange. Freetrade are "a non-trading member firm of the London Stock Exchange" with "no direct access to the Exchange's markets". Trading212 has some registration in Bulgaria and Cyprus but they are not a member of the London Stock Exchange.

If you want a low-cost platform, Degiro and Fineco are worth looking at.

The platform that is best for you will depend on how much you mean by "small amount", how often you trade and, more importantly, which platform you feel most comfortable with. It's possible to test-drive most platforms with a couple of hundred £s.