Calculation of platform costs help please.

TUVOK

Can any one help please with the difference per £1K between holding funds (namely Fundsmith and LT Global) in HL platform and A.J.Bell.

I am trying to reduce costs as much as possible and I could sell in HL and buy in A.J.Bell in a straight swap.
I have reduced my charges in HL significantly by re-investing into Bells, but this was with smaller holdings.
As I understand it, I'm paying 0.45% in Hl and 0.25% in Bells, I've done what I think the saving is but maths is not my best subject.
The Fundsmith and LT are quite large(at least to me) holdings so it would be a great help if some one with a good maths head could be kind enough to help.

ColdIron

HL £1,000 * 0.0045 = £4.50

AJB £1,000 * 0.0025 = £2.50

Or £2.00 pa per £1,000. As I recall AJB have a £1.50 transaction fee you might want to factor in as well

TUVOK

ColdIron said:

HL £1,000 * 0.0045 = £4.50

AJB £1,000 * 0.0025 = £2.50

Or £2.00 pa per £1,000. As I recall AJB have a £1.50 transaction fee you might want to factor in as well

Thanks very much for your answer, it confirms my calculation, but I wondered if there was any thing else in the charges which I had overlooked.
Yes, you are correct, Bells charge £1-50 per transactions.
So on the total of £20K I am thinking of transferring, £90- to hold in HL, £50- in Bells plus 2* £1-50 + £3-00 transactions.
A saving of approx. £37- in the first year. £40- there on.
Not a lot, but perhaps better in my pocket than HL's 

Albermarle

One point to look out for is that if there is no cash in the account to pay charges, then the platform sells a small part of one of your investments. Hl do not charge to do this, but AJ Bell do ( £10?) 

ColdIron

TUVOK said:

ColdIron said:

HL £1,000 * 0.0045 = £4.50

AJB £1,000 * 0.0025 = £2.50

Or £2.00 pa per £1,000. As I recall AJB have a £1.50 transaction fee you might want to factor in as well

Not a lot, but perhaps better in my pocket than HL's 

Not sure I'd bother for the small saving but that's not very MSE of me. Bear in mind that unless you do an in specie transfer (could take months) you would have to sell and rebuy and be out of the market for a period, this could of course go either way but might considerably exceed any small savings

TUVOK

ColdIron said:

TUVOK said:

ColdIron said:

HL £1,000 * 0.0045 = £4.50

AJB £1,000 * 0.0025 = £2.50

Or £2.00 pa per £1,000. As I recall AJB have a £1.50 transaction fee you might want to factor in as well

Not a lot, but perhaps better in my pocket than HL's 

Not sure I'd bother for the small saving but that's not very MSE of me. Bear in mind that unless you do an in specie transfer (could take months) you would have to sell and rebuy and be out of the market for a period, this could of course go either way but might considerably exceed any small savings

I've sold on one platform and re-bought on another immediately (HL to another) several times, I could have been lucky? but never noticed any difference, but I take your point thanks.
I'll have to ponder whether it's worth it as you say, about £40/year

MX5huggy

If you’re going to this bother then why not use iWeb, one off account opening fee of £100 no ongoing fee just the trading fee of £5 (if you just buy and hold that’s £10 for 2 funds). 

https://www.iweb-sharedealing.co.uk/charges.html

If your still buy month by month do this on AJB or HL and once a year or whatever transfer to iWeb. 

ColdIron

TUVOK said:

ColdIron said:

HL £1,000 * 0.0045 = £4.50

AJB £1,000 * 0.0025 = £2.50

Or £2.00 pa per £1,000. As I recall AJB have a £1.50 transaction fee you might want to factor in as well

but I wondered if there was any thing else in the charges which I had overlooked.

For completeness I suppose you could look at the difference in OCF

HL offer the class D units of the LT Global Equity fund with an OCF of 0.50% pa (standard OCF of 0.65% with a 'loyalty bonus' or discount of 0.15%)

AJB offer the class B units with an OCF of 0.65%

Assuming a 50/50 split in your funds this would knock £15 off your £40 pa saving

£25 pa is IMO a tiny saving not worth bothering with but you may have other concerns such as keeping your investments in one place rather than spread over multiple platforms

TUVOK

ColdIron said:

TUVOK said:

ColdIron said:

HL £1,000 * 0.0045 = £4.50

AJB £1,000 * 0.0025 = £2.50

Or £2.00 pa per £1,000. As I recall AJB have a £1.50 transaction fee you might want to factor in as well

but I wondered if there was any thing else in the charges which I had overlooked.

For completeness I suppose you could look at the difference in OCF

HL offer the class D units of the LT Global Equity fund with an OCF of 0.50% pa (standard OCF of 0.65% with a 'loyalty bonus' or discount of 0.15%)

AJB offer the class B units with an OCF of 0.65%

Assuming a 50/50 split in your funds this would knock £15 off your £40 pa saving

£25 pa is IMO a tiny saving not worth bothering with but you may have other concerns such as keeping your investments in one place rather than spread over multiple platforms

Again my thanks for your input.
Yes, I have noticed that HL do discount their cost on certain funds, but forgot about that when thinking of changing platforms.
I agree that with that discount, not really worth the bother.
I'll have a look at Fundsmith to see the comparison cost by the platforms for that fund 

ColdIron

Fundsmith famously won't offer a discount to HL (or anyone else) so would be the same in either

TUVOK

Thank you again.