Interactive Investor is now more expensive than Hargreaves Lansdown!

michaels

Albermarle said:

MaidaVale3499 said:

I only hold index tracker globals funds in both my II SIPP, SS ISA & Trading account.  I received a £1k cashback for transferring into II in c2018 and now pay a fee of £263 a year which equates to a 0.032% platform fee on my portfolio size.  I'm very happy with II website, app and their uk customer service.

Yes, I could look to replicate my index funds HSBC FTSE all global (0.12% fee), same in Fidelity etc in ETFs  but I need to calc what saving I would achieve over lifetime of holding given that I'm mid 50s and hoping to retire age 58 ish.

If all in ETF's then £173 pa with Fidelity. So if you live to an average age of 84 = about £5K ( plus they also regularly offer transfer cashbacks) 

£90 x 34 years = £3060?

Do the ETF and fund alternatives have the same charges?

saucer

I’ve moved SIPPs from Vanguard and HL to ii. I’m paying £12.99 pcm or £155.88 pa for a simple SIPP only account. The website and functions within are good. It seems like good value to me.

Albermarle

michaels said:

Albermarle said:

MaidaVale3499 said:

I only hold index tracker globals funds in both my II SIPP, SS ISA & Trading account.  I received a £1k cashback for transferring into II in c2018 and now pay a fee of £263 a year which equates to a 0.032% platform fee on my portfolio size.  I'm very happy with II website, app and their uk customer service.

Yes, I could look to replicate my index funds HSBC FTSE all global (0.12% fee), same in Fidelity etc in ETFs  but I need to calc what saving I would achieve over lifetime of holding given that I'm mid 50s and hoping to retire age 58 ish.

If all in ETF's then £173 pa with Fidelity. So if you live to an average age of 84 = about £5K ( plus they also regularly offer transfer cashbacks) 

£90 x 34 years = £3060?

Do the ETF and fund alternatives have the same charges?

The current II charge is £263 pa so over 34 years = £8,942 

So the saving would be more like £6K ( I think I worked it out over 30 years)

Obviously it is not that easy directly comparing investments, but for global trackers the funds seem to be about 0.1% cheaper.

michaels

Albermarle said:

MaidaVale3499 said:

I only hold index tracker globals funds in both my II SIPP, SS ISA & Trading account.  I received a £1k cashback for transferring into II in c2018 and now pay a fee of £263 a year which equates to a 0.032% platform fee on my portfolio size.  I'm very happy with II website, app and their uk customer service.

Yes, I could look to replicate my index funds HSBC FTSE all global (0.12% fee), same in Fidelity etc in ETFs  but I need to calc what saving I would achieve over lifetime of holding given that I'm mid 50s and hoping to retire age 58 ish.

If all in ETF's then £173 pa with Fidelity. So if you live to an average age of 84 = about £5K ( plus they also regularly offer transfer cashbacks) 

I see - £173 is the saving pa not the Fidelity annual cost.

michaels

Albermarle said:

MaidaVale3499 said:

I only hold index tracker globals funds in both my II SIPP, SS ISA & Trading account.  I received a £1k cashback for transferring into II in c2018 and now pay a fee of £263 a year which equates to a 0.032% platform fee on my portfolio size.  I'm very happy with II website, app and their uk customer service.

Yes, I could look to replicate my index funds HSBC FTSE all global (0.12% fee), same in Fidelity etc in ETFs  but I need to calc what saving I would achieve over lifetime of holding given that I'm mid 50s and hoping to retire age 58 ish.

If all in ETF's then £173 pa with Fidelity. So if you live to an average age of 84 = about £5K ( plus they also regularly offer transfer cashbacks) 

But my question is the fund charge - is it the same 12 basis points whether you hold it as a fund or an ETF?

artyboy

Ciprico said:

artyboy said:

Pat38493 said:

Albermarle said:

jaybeetoo said:

Interactive Investor recently increased their fees to £21.99 a month or £263.88 a year for holding a trading, ISA and SIPP account.

If you just hold shares, cash, ETFs, investment trusts then Fidelity is £90 a year and Hargreaves Lansdown is £245 a year!

I never thought I'd ever see HL cheaper than ii.

Clearly, Abrdn are trying to get some return from buying ii.

The low cap on exchange traded products for HL and even lower with Fidelity, can not be directly compared with II charges . If you compare them for a client holding mainly OEIC funds, then II will win out for anyone with more than £100K. All these platforms are 'horses for courses' when it comes to charging structure.

Of course if you only hold shares/IT's/ETF's then the £90 cap with Fidelity is an absolute bargain. It is cap over all holdings, SIPP & ISA, and apart from a trading charge when you buy the shares etc there are almost no other charges, even when you are in drawdown.
It clearly can not be profitable, and it has been questioned in previous threads 'why do they do it?' 
The answer seems to be 1) Keeping market share at a loss 2) The number of actual clients benefitting from it is relatively small. Your average UK investor, pension holder is normally 100% in OEIC funds.

Question is, if there is a similar ETF for all of the OEIC that ou are holding, I guess you could move everything into ETF and benefit from those lower charges - for example Vanguard seems to have an ETF and an OEIC global tracker that appear to be pretty much the same in terms of the investment mix.

I'm using the HMWO ETF in my HL SIPP - partly to diversify a bit from a lot of Vanguard funds I hold, and partly to get the benefit of the lower fees.

To my mind, it's one of the most globally diversified ETFs, and although I'm sure there will be nuance in holdings/weightings with Vanguard's equivalent, it's basically doing the same thing for me - a single buy and forget low cost world tracker.

I used hmwo too, but someone on here pointed out swld is very similar, lower cost and accumulating, so avoids transferring $ dividends into £....

I'd certainly be interested to see any posts/analysis comparing these 2 ETFs... admittedly the difference between 0.15% for HMWO and 0.12% for SWLD isn't exactly a game changer, but if it does eliminate FX risk on dividends, it could be worth a look...

Albermarle

michaels said:

Albermarle said:

MaidaVale3499 said:

I only hold index tracker globals funds in both my II SIPP, SS ISA & Trading account.  I received a £1k cashback for transferring into II in c2018 and now pay a fee of £263 a year which equates to a 0.032% platform fee on my portfolio size.  I'm very happy with II website, app and their uk customer service.

Yes, I could look to replicate my index funds HSBC FTSE all global (0.12% fee), same in Fidelity etc in ETFs  but I need to calc what saving I would achieve over lifetime of holding given that I'm mid 50s and hoping to retire age 58 ish.

If all in ETF's then £173 pa with Fidelity. So if you live to an average age of 84 = about £5K ( plus they also regularly offer transfer cashbacks) 

But my question is the fund charge - is it the same 12 basis points whether you hold it as a fund or an ETF?

The Two ETF's in the previous post have charges 0.12% and 0.15%, whilst Fidelity World P ( OEIC ) is 0.12%.
I think they all are 100% developed world.