Platform Recommendations

engagedandopen

NFU Mutual's service charge used to match HL's 0.45% for lowest pot sizes, but recently they increased it to 0.50%.  We have a Flexibond with them, but I don't know who uses them for pensions and investments.

grumpsthegit

artyboy said:

I'm paying more to II currently than to HL on platform costs, despite having double

in II what I have in HL - so what you're saying about fixed fee isn't a given and needs proper research.

Is that because you have ETF's on HL's platform?

artyboy said:

That said, switching platforms could definitely be worth it for the cashback that many providers are throwing around at the moment. II is actually offering up to an absurd £5k for SIPP xfrs in, although you would need to move £2m+ for that.

Alternatively Charles Stanley will pay £1500 for a £200k+ xfr, what's more if you can get a referral, the person referring gets £1000 - that's a decent chunk of cash - I'm intending to refer Mrs Arty for exactly this offer... 

Yeah I noticed II have incentives at the moment but it ends 31st Jan and the transfer needs to be done by then so suspect that will not leave enough time - I should have looked into this a few weeks back!  Mind you my gut tells me I should move when the markets are going down not up as they are at the moment - although I guess that is irrelevant if its mostly in speccie?

Cheers

grumpsthegit

dunstonh said:

Hmm this sounds easier said than done. But I can see that the funds where the charges are higher, perversely are  some of the ones that have performed worst. Basically any of the HL Funds - So a double Whammy to my mind and I need to cut my losses and switch and just need to decide if I switch platforms as well.

Those HL in-house funds are expensive.  It is a bit of irony as people often say they DIY to save money but then go and stick on one of the most expensive platforms using their in-house expensive funds and pay more than they would have done had they used an IFA.    A phrase often used here is that if you DIY well it can save you money. If you DIY badly it can cost you more.

Yeah so it seems - and I think it was me that picked the HL funds rather than my dad after transferring my Cash ISA to HL and starting a SIPP. Well I guess at least I have realised this now when I still have a couple of years before retirement + hopefully 20 + years living off the investments :-) 

artyboy

grumpsthegit said:

artyboy said:

I'm paying more to II currently than to HL on platform costs, despite having double

in II what I have in HL - so what you're saying about fixed fee isn't a given and needs proper research.

Is that because you have ETF's on HL's platform?

artyboy said:

That said, switching platforms could definitely be worth it for the cashback that many providers are throwing around at the moment. II is actually offering up to an absurd £5k for SIPP xfrs in, although you would need to move £2m+ for that.

Alternatively Charles Stanley will pay £1500 for a £200k+ xfr, what's more if you can get a referral, the person referring gets £1000 - that's a decent chunk of cash - I'm intending to refer Mrs Arty for exactly this offer... 

Yeah I noticed II have incentives at the moment but it ends 31st Jan and the transfer needs to be done by then so suspect that will not leave enough time - I should have looked into this a few weeks back!  Mind you my gut tells me I should move when the markets are going down not up as they are at the moment - although I guess that is irrelevant if its mostly in speccie?

Cheers

Yes, my holdings with HL, as well as Charles Stanley & Fidelity, are in ETFs - it does need a bit of research but there's generally an ETF equivalent (or as near as dammit) for most trad funds. Point being, the decision between fixed and percentage based charging platforms can be nuanced based on what you are holding. I actually like II's platform, and if I do want to hold trad funds, they would be a cheap option for that.

As for incentives - I wouldn't worry too much about II - there seems to be a constant repeating round of these offers from various providers right now, if anything they are getting bigger and more frequent. The Charles Stanley one I think runs to the end of Feb (and remember you only have to initiate the transfer by then, not complete it - same with all offers of this type) but as I mentioned, it helps to have someone to refer you to maximise the cashback!

If not CS, another offer will be along soon enough! As you say, always transfer in specie to eliminate any market risk in the process.

Albermarle

grumpsthegit said:

artyboy said:

I'm paying more to II currently than to HL on platform costs, despite having double

in II what I have in HL - so what you're saying about fixed fee isn't a given and needs proper research.

Is that because you have ETF's on HL's platform?

artyboy said:

That said, switching platforms could definitely be worth it for the cashback that many providers are throwing around at the moment. II is actually offering up to an absurd £5k for SIPP xfrs in, although you would need to move £2m+ for that.

Alternatively Charles Stanley will pay £1500 for a £200k+ xfr, what's more if you can get a referral, the person referring gets £1000 - that's a decent chunk of cash - I'm intending to refer Mrs Arty for exactly this offer... 

Yeah I noticed II have incentives at the moment but it ends 31st Jan and the transfer needs to be done by then so suspect that will not leave enough time - I should have looked into this a few weeks back!  Mind you my gut tells me I should move when the markets are going down not up as they are at the moment - although I guess that is irrelevant if its mostly in speccie?

Cheers

It is not just ETF's that have capped fees on some platforms like HL, Fidelity etc . It is any 'exchange traded product' . In English it means anything you can buy and sell on the stock market where there is a price quoted.
So includes individual company shares and Investment Trusts.

The large majority of retail investors are invested in OEIC funds ( used to be better known as unit trusts) and here the platform costs can mount up.

As @artyboy says it is true there are regular generous cash back deals on offer. A bit crazy really as some people are pocketing the cashback, paying minimal fees to the platform, and then transferring back out again after the 12/18 months time limit to get another cashback. Presume one day a serial switcher will get blocked.

Mind you my gut tells me I should move when the markets are going down not up as they are at the moment - although I guess that is irrelevant if its mostly in speccie?
If you transfer in specie it makes no odds if the market goes up or down.
In any case I would guess your guts ( or mine ), are not very good at predicting future market movements !

artyboy

@Albermarle - I'll probably be top of the hit list if it ever happens. I got a letter from Charles Stanley offering me more cashback and stating that 400 people had already qualified for £150,000 through their last promotion - well yes, I was one of those people, so please pay me the £1,500 I 'earned'  

For now though, I'll make hay. £3000 just received from Nutmeg - and yes I know that's a bit less DIY, but I've got a discounted rate with them and I want to see over then next couple of years how their 10/10 risk portfolio performs relative to HMWO. If it outperforms by 0.3% PA then I'm in the money net of fees...

Albermarle

It might be like betting with book makers. As soon as you start winning or gaming the system ( free bets, best odds guaranteed etc ) they block you and/or restrict your options.

I have just transferred £100K + Isa from Fidelity to a small existing ISA with HL. Currently with HL I pay £45 pa.
As I have transferred over in specie, three ETF's and one IT, my new fees with HL will still be £45pa .
So they have gained zero in fees, and given me £1000 cashback. 
Clearly they are all chasing market share, even if it costs them. In some business areas this indicates consolidation is around the corner....

grumpsthegit

Clearly they are all chasing market share, even if it costs them. In some business areas this indicates consolidation is around the corner....

Are you saying there are too many platforms and some might close down?

QrizB

grumpsthegit said:

Clearly they are all chasing market share, even if it costs them. In some business areas this indicates consolidation is around the corner....

Are you saying there are too many platforms and some might close down?

Consolidation happens all the time.

The Share Centre, for example, was taken over by ii a few years ago (and was the first step in increasing charges that eventually led me to switch).

Albermarle

grumpsthegit said:

Clearly they are all chasing market share, even if it costs them. In some business areas this indicates consolidation is around the corner....

Are you saying there are too many platforms and some might close down?

The market seems to be getting more competitive each year.
In that case some weaker ones may decide to sell up. I have no inside info but that is just how business works.