Iweb SIPP

rewob65

Hi,  I moved to Iweb SIPP as it is cheap about £360 per year.  I noticed that AJ Bell also charge 1% as a management fee that never shows up on tables.    Do you think it is cheaper just to move to AJ Bell which seems to charge just .25% to a maximum amount?  Or as with all charges am I not comparing apples with apples?

Steve_666_

If you are looking for cheaper options, II charges are 12.99 pcm, £156 per year. but the management charge is only part of the story. What funds/shares you expect to purchase, how often you expect to switch, and the cost of these need to be factored in. If the size of the SIPP is small, those that charge a %, such as vanguard are more cost effective in terms of management.

Exodi

I think based on 'about £360 per year', we could estimate rewob probably has over £50,000 in his SIPP (£180 annual charge) and places 36 trades year (3 per month) - however this is just a guess.

As poster above says, II charges £156 a month, and if placing the same trades every month, the regular investing service is free. (though spur of the moment trades are charged at £5.99 which would work out more expensive than iweb).

As Steve_666_ also says, depending on the value, variable free options could be better.

£50k invested in Vanguard would cost £75 a year (50000 x 0.15%)
£100k would cost £150
£150k would cost £225
(account fee charges cap at £375 per year, on a £250k holding).

You are limited to only vanguard funds, but it is to show that % account fee platforms can work out cheaper on smaller pots (e.g. sub 100k). On larger pots, II can be the best if you're still contributing (but through the free regular investing service).

Doctor_Who

Exodi said:

As poster above says, II charges £156 a month, and if placing the same trades every month, the regular investing service is free. (though spur of the moment trades are charged at £5.99 which would work out more expensive than iweb).

I hope not, otherwise I need to transfer out asap! £156 per year. Although my II charges are £19.99 a month for SIPP/ISA/GIA accounts.

Exodi

Doctor_Who said:

Exodi said:

As poster above says, II charges £156 a month, and if placing the same trades every month, the regular investing service is free. (though spur of the moment trades are charged at £5.99 which would work out more expensive than iweb).

I hope not, otherwise I need to transfer out asap! £156 per year. Although my II charges are £19.99 a month for SIPP/ISA/GIA accounts.

HAHA! Oops.

Yes, good point that you also get a benefit to S&S holdings also which adds value to offering. I think II is pretty much the default choice for most people over £150k... 

Steve_666_

Doctor_Who said:

Exodi said:

As poster above says, II charges £156 a month, and if placing the same trades every month, the regular investing service is free. (though spur of the moment trades are charged at £5.99 which would work out more expensive than iweb).

I hope not, otherwise I need to transfer out asap! £156 per year. Although my II charges are £19.99 a month for SIPP/ISA/GIA accounts.

The 156 is for a SIPP only, and as you said SIPP, ISA, & Trading is £240. You also get the reasonable research tool and 5 year morningstar summaries, with one free trade PCM. The bigger the pension pot the better a fixed management fee is. The free regular investing mech is nice, it also allows a one off payment. So you trade the deal fee (5.99/3.99) for losing control of the timing, but in theory never have to pay a deal charge.

I saw your calc used 36 trades PCY, that is a lot from my perspective, I guess it depends if you are a buy and hold type in the trading account, for a SIPP I would say that would be seen as churn.

Doctor_Who

Steve_666_ said:

Doctor_Who said:

Exodi said:

As poster above says, II charges £156 a month, and if placing the same trades every month, the regular investing service is free. (though spur of the moment trades are charged at £5.99 which would work out more expensive than iweb).

I hope not, otherwise I need to transfer out asap! £156 per year. Although my II charges are £19.99 a month for SIPP/ISA/GIA accounts.

The 156 is for a SIPP only, and as you said SIPP, ISA, & Trading is £240. You also get the reasonable research tool and 5 year morningstar summaries, with one free trade PCM. The bigger the pension pot the better a fixed management fee is. The free regular investing mech is nice, it also allows a one off payment. So you trade the deal fee (5.99/3.99) for losing control of the timing, but in theory never have to pay a deal charge.

I saw your calc used 36 trades PCY, that is a lot from my perspective, I guess it depends if you are a buy and hold type in the trading account, for a SIPP I would say that would be seen as churn.

I switched to II from HL ~10 years ago and haven't regretted it. The fixed fee vs percentage fee model works for me given the portfolio size across all of my accounts. As you say, regular monthly investing is free, and can be turned off/on easily. I really only use the monthly trading credits for selling, which isn't very often. Also, accessing the SIPP is now fee-free (drawdown/UFPLS), there used to be fees to do this.

It was Exodi who said about the 36 trades per year......mine are in the lowish single digits!

Albermarle

Exodi said:

Doctor_Who said:

Exodi said:

As poster above says, II charges £156 a month, and if placing the same trades every month, the regular investing service is free. (though spur of the moment trades are charged at £5.99 which would work out more expensive than iweb).

I hope not, otherwise I need to transfer out asap! £156 per year. Although my II charges are £19.99 a month for SIPP/ISA/GIA accounts.

HAHA! Oops.

Yes, good point that you also get a benefit to S&S holdings also which adds value to offering. I think II is pretty much the default choice for most people over £150k... 

The caveat being that HL, AJ Bell and Fidelity cap their platform fees, for 'exchange traded products' This means ETF's, IT's and shares.
The caps are £200 ; £120 & £90 respectively.

EdSwippet

rewob65 said:

Hi,  I moved to Iweb SIPP as it is cheap about £360 per year.  I noticed that AJ Bell also charge 1% as a management fee that never shows up on tables. 

You mean an extra 1% to AJ Bell, on top of iWeb's flat SIPP fees, just for administering an iWeb SIPP?

IWeb's SIPP fees page doesn't mention this, and I couldn't find it mentioned anywhere else. Can you say where you found this information?

Chickereeeee

I don't think so. iWeb charge  a management fee of £180 per annum for holdings > £50k, and £90 pa if < £50k.

rewob65

I have spent a year looking for this information but cannot find the 1% fee and no one has agreed so perhaps I was wrong.