iWeb Offering £100 Cashback (Negating the £100 Account Opening Fee)

cloud_dog

Hi... Just in case anyone had previously thought of opening a iWeb S&S (GIA / ISA) account but were put off by the £100 account opening fee, they now have an offer (deposit £5k cash or investments) and they will give you £100 cashback within 30 days (net effect no opening fee).  Deposit must be completed by 6 months of opening the account.

https://www.iweb-sharedealing.co.uk/landing-pages/cashback-offer.html

ChesterDog

Just my luck.

Opened a GIA and ISA for my wife and I about a fortnight ago.

Isa transfers (from Interactive Investor) were very quick, too.

SharpShooter

So they let you open an account and they promise to return your £100.

They offer free U.S trading, but not UK (confused) with a 1.5% transaction fee. In the modern day, these companies are out of date.

wmb194

SharpShooter said:

So they let you open an account and they promise to return your £100.

They offer free U.S trading, but not UK (confused) with a 1.5% transaction fee. In the modern day, these companies are out of date.

The nice thing about iWeb is that it doesn't charge any ongoing account fees. What you can do is buy shares and funds elsewhere at no or lower cost on platforms and with stockbrokers that charge account fees and later transfer them to iWeb.

ChesterDog

The trading fee is £5.

No ongoing charges at all.

We are fully invested and only tweak holdings (only six in total) only once a year.

To put that in perspective, it will cost us around £30 per year for over £1m invested.

Interactive Investor was costing £30 per month, plus the trading charges.

jimjames

ChesterDog said:

The trading fee is £5.

No ongoing charges at all.

Similar here, HL would be costing over £1000 per year, iWeb costs nothing apart from any rebalancing at £5 per trade.

SpeedSouth

I'll open one for the OH and transfer hers out of Vanguard.  The £100 had been putting me off as its low value and the commission wasn't huge.  Seems transfers are allowed to meet the terms, so will keep Vanguard to fund it for free and simply transfer once I've built up an amount worth transferring.

noclaf

I'm tempted to open an account and then cash transfer from my current Vanguard S&SISA. I don't tend to 'trade much' and am more of a buy and hold so the cashback does make this quite attractive.

Exodi

SharpShooter said:

In the modern day, these companies are out of date.

I really think you've misunderstood iWeb's niche.

There are no ongoing account fees - a 'buy and hold' investor (or one who doesn't make many trades) with a large portfolio could save hundreds (if not thousands if comparing to a platform with uncapped fees).

It is extremely popular for this purpose. Think of an investor who just dumps £20k in April every year to max out their S&S ISA allowance. Their only cost would be £5 x however many investments they choose - if it's in a single global index fund then even if they had an S&S ISA with a million pounds in it, they'd be paying £5 a year in total.

Obviously it's not practical for people regularly investing £100 a month across 30 different funds or whatever, and as you imply, there are countless other companies out there for that.

talexuser

I'm generally a buy and hold, max the ISA every year, but have dividends to invest and probably spend £100 to £150 on trades every year on dividends for ISA and unwrapped. Even so have saved thousands on account fees compared to other platforms. Pretty sure I paid £25 to open years ago. No brainer.

intalex

Do they operate a Lifetime ISA?