ISA S&P500

Albermarle

Not sure about this, but are not some of these operators lending out the shares they hold on your behalf, as a sideline of some sort?

wmb194

Albermarle said:

Not sure about this, but are not some of these operators lending out the shares they hold on your behalf, as a sideline of some sort?

Freetrade was planning to do this and even sent out updated T&Cs you had to agree to or else your account would be frozen to new activity apart from sales and withdrawals but it was cancelled a couple of weeks before it was supposed to go live. This was quite some time ago and it hasn't mentioned anything about it since. De Giro definitely has this in its T&Cs for its free account.

One thing they should be making good money on now that the deposit rates have risen is customer deposits. I remember reading an interview with someone senior at Freetrade and he was quoted as saying that it probably has as much in customer deposits as a small bank. Before the GFC when Bank rate was c.5% I remember the brokers commonly reporting that about a third of their profits came from the net interest margin earned on customer deposits.

John464

Albermarle said:

Not sure about this, but are not some of these operators lending out the shares they hold on your behalf, as a sideline of some sort?

Yes, but not as risky as it sounds if its done properly as they get collateral to hold in place of the shares they have lent out.

cloud_dog

Millyonare said:

Another vote for InvestEngine. A superb app.

I have literally just closed my IE account.

I opened it for the bonus and added some cash but I wasn't happy with the buy pricing (I know they wrap up trades and trade around 2:30 each day), but I couldn't reconcile their buy price with the prices executed that day.  I appreciate I don't have access to all buy transactions, but when they replied to my enquiry, that didn't make a lot of sense either. 

So, whilst they are 'free', I'm no longer comfortable with their processes, and am out.

george4064

Probably not the cheapest (however cheapest isnt always the best), but I hold CSP1 ETF with AJ Bell. No problems and very happy to continue holding.

giogiu1974

I’ve created an account with InvestEngine. I’m about getting the Vanguard S&P 500 but not sure about VUSA or VUAG? I understand that vuag reinvest automatically the dividends but do they count towards the £20,000 annual allowance?

george4064

Go for the accumulating one, only new money payments count towards the allowance (hence any dividends, whether they’re paid out or automatically reinvested don’t count).

Albermarle

giogiu1974 said:

I’ve created an account with InvestEngine. I’m about getting the Vanguard S&P 500 but not sure about VUSA or VUAG? I understand that vuag reinvest automatically the dividends but do they count towards the £20,000 annual allowance?

Within an ISA, all investments gains and dividend payments are tax free.( and even better you do not even have to record or report them) The £20K limit only applies when you add new money into the ISA.

Millyonare

cloud_dog said:

Millyonare said:

Another vote for InvestEngine. A superb app.

I have literally just closed my IE account.

I opened it for the bonus and added some cash but I wasn't happy with the buy pricing (I know they wrap up trades and trade around 2:30 each day), but I couldn't reconcile their buy price with the prices executed that day.  I appreciate I don't have access to all buy transactions, but when they replied to my enquiry, that didn't make a lot of sense either. 

So, whilst they are 'free', I'm no longer comfortable with their processes, and am out.

Interesting post.

Their pricing and spread were competitive last year (ime). Wonder aloud if IE is quietly raising its "prices" this year 🤔