SIPP

masonic

crisis_management said:

masonic said:

crisis_managementThanks, said:

I was thinking of Freetrade,  but I would have to move the fund when drawing down,  as they don't seem to support that.

Compare for example with Fidelity where you have an ongoing fee of 0.35% per year capped at £3.75 per month (providing you will only hold ETFs, ITs and shares) with a £1.50 trading fee as part of a regular savings plan. Unless you intend to make lots of very small purchases, the Freetrade £9.99 per month subscription fee is going to outweigh the benefits of commission free trading. It is good to get into the habit of being an infrequent trader. As you've identified, you'll need to move to a more mainstream platform eventually, I'd suggest you might want to do so as your SIPP grows in value, and at a mainstream platform there will be a cost per trade.

Thanks,  I had misread the Fidelity charges, and didn't realise they were capped. This makes a lot of sense.

Yes, they don't make this very prominent on their fees page. You have to scroll down, and keep going past the table to get to the paragraph where it is mentioned.

Albermarle

masonic said:

crisis_management said:

masonic said:

crisis_managementThanks, said:

I was thinking of Freetrade,  but I would have to move the fund when drawing down,  as they don't seem to support that.

Compare for example with Fidelity where you have an ongoing fee of 0.35% per year capped at £3.75 per month (providing you will only hold ETFs, ITs and shares) with a £1.50 trading fee as part of a regular savings plan. Unless you intend to make lots of very small purchases, the Freetrade £9.99 per month subscription fee is going to outweigh the benefits of commission free trading. It is good to get into the habit of being an infrequent trader. As you've identified, you'll need to move to a more mainstream platform eventually, I'd suggest you might want to do so as your SIPP grows in value, and at a mainstream platform there will be a cost per trade.

Thanks,  I had misread the Fidelity charges, and didn't realise they were capped. This makes a lot of sense.

Yes, they don't make this very prominent on their fees page. You have to scroll down, and keep going past the table to get to the paragraph where it is mentioned.

My guess is this very low cap of £45, is something they would ideally want to get rid of , if they could without upsetting too many existing customers who benefit from it ( as HL and AJ Bell do something similar)
So instead they do not promote it prominently to new customers, and less experienced existing investors may well not know it exists, or understand clearly how it works, having traditionally probably been always invested in OEICS.

TBC15

dunstonh said:

crisis_management said:

I mean Capital Gearing trust, etc

That is not an ETF.  It is an IT.

I’m sure Fidelity class IT’s as ETFs at least as far as their costs are concerned?

Edit, you are quite right dunstonh. I was getting my terminology confused between exchange traded instruments and exchange traded funds.

masonic

TBC15 said:

dunstonh said:

crisis_management said:

I mean Capital Gearing trust, etc

That is not an ETF.  It is an IT.

I’m sure Fidelity class IT’s as ETFs at least as far as their costs are concerned?

All exchange traded instruments qualify for the cap on custody charges, that's ETFs/ITs/shares and probably individual gilts and bonds if those are available. ETFs and ITs are quite different, so it is worth clarifying which CGT is.

TBC15

crisis_management said:

masonic said:

crisis_managementThanks, said:

I was thinking of Freetrade,  but I would have to move the fund when drawing down,  as they don't seem to support that.

Compare for example with Fidelity where you have an ongoing fee of 0.35% per year capped at £3.75 per month (providing you will only hold ETFs, ITs and shares) with a £1.50 trading fee as part of a regular savings plan. Unless you intend to make lots of very small purchases, the Freetrade £9.99 per month subscription fee is going to outweigh the benefits of commission free trading. It is good to get into the habit of being an infrequent trader. As you've identified, you'll need to move to a more mainstream platform eventually, I'd suggest you might want to do so as your SIPP grows in value, and at a mainstream platform there will be a cost per trade.

Thanks,  I had misread the Fidelity charges, and didn't realise they were capped. This makes a lot of sense.

Once in drawdown Fidelity are a total bargain if you hold ETFs. £63 pa and they sell as required to provide your monthly income.

valiant24

TBC15 said:

Once in drawdown Fidelity are a total bargain if you hold ETFs. £63 pa and they sell as required to provide your monthly income.

My SIPP, with AJBell/Sippdeal, is in drawdown.  Could I transfer it to Fidelity?  Do you have a link describing this ultra-low charge pls?

TBC15

valiant24 said:

TBC15 said:

Once in drawdown Fidelity are a total bargain if you hold ETFs. £63 pa and they sell as required to provide your monthly income.

My SIPP, with AJBell/Sippdeal, is in drawdown.  Could I transfer it to Fidelity?  Do you have a link describing this ultra-low charge pls?

Yes.

From Fidelitys Charges-fees page.

https://www.fidelity.co.uk/services/charges-fees/lance

(Fees in more detail tab)

Our service fee

The portion of the fee you pay on exchange-traded investments (shares, exchange-traded funds (ETFs), etc.) within an ISA or SIPP is capped at £45.

Share dealing and other charges

• £1.50 for deals as part of a regular savings or withdrawal plan, or for a reinvestment of income or a dividend.  

This covers Fidelity selling as required every month to pay your drawdown pension. So £1.50x12=£18

Total cost PA of £63 if all you hold in your SIPP are ETFs

Transfer your SIPP here.  https://www.fidelity.co.uk/transfer/pension/

Albermarle

valiant24 said:

TBC15 said:

Once in drawdown Fidelity are a total bargain if you hold ETFs. £63 pa and they sell as required to provide your monthly income.

My SIPP, with AJBell/Sippdeal, is in drawdown.  Could I transfer it to Fidelity?  Do you have a link describing this ultra-low charge pls?

Are you aware that if you only hold ETF's ( or shares or Investment Trusts) in a A J Bell SIPP, there is a maximum charge of only  £120 + maybe some charges for regular drawdown. So the difference with Fidelity would not be huge.

If you had some OEIC funds as well, then this would change the calculation.

However Fidelity are currently offering a cashback deal for pension transfers, that could be of interest.

Transfer & consolidate pensions | Make managing pensions easier | Fidelity

masonic

Albermarle said:

valiant24 said:

TBC15 said:

Once in drawdown Fidelity are a total bargain if you hold ETFs. £63 pa and they sell as required to provide your monthly income.

My SIPP, with AJBell/Sippdeal, is in drawdown.  Could I transfer it to Fidelity?  Do you have a link describing this ultra-low charge pls?

Are you aware that if you only hold ETF's ( or shares or Investment Trusts) in a A J Bell SIPP, there is a maximum charge of only  £120 + maybe some charges for regular drawdown. So the difference with Fidelity would not be huge.

Using the £63pa example shared by TBC, the comparative charge at AJ Bell would be £239.40, as there is no cheap regular disinvesting option available.

eastmidsaver

definitely keep an eye on costs.   it's not something you realise the impact of too much until your pot value grows more.
but, at same time, consider how flexible you want it to be against your needs. 
for example, some of the lower charging providers have higher minimum investments,  or they will charge you more when it comes to eventual drawdown etc.
and customer service too is important...  check online to see what others are saying about this.