How much do you keep on any single platform?

Kaizen917

Now that the new FY is approaching, Im considering how to spread the ISA allowance since we will be able to top up multiple accounts. And thank God for that change (long overdue), otherwise I feel I would have doubted big time who to commit for the year with. Im with Vanguard and InvestEngine for now where, from a year to year, its literally been a dilemma between the wish to be with someone established and to take advantage of lower fees.

I was wondering for the people that have been investing for 10+ years by now and with substantial portfolios - how much as a % would be fees threshold that you would find reasonable? I remember Ramin from Pensioncraft mentioning he wouldnt go beyond 0.20% but I only see myself achieving this on a zero cost platform.I suspect that there will be eventually a point where if I combite most of my funds into one decent provider, I could be better off on some fixed/capped fee but its a bit early to do the Maths on that.

This leads me to the other observation - why is it that many online comparison sites or articles may not even mention zero cost platforms like Trading212 or InvestEngine when listing the best S&S ISAs? Is it some kind of bias or there is a genuine reason to rule them out? I also find it strange that banks are not very bothered to offer a bit more competitive investment ISAs.

GeoffTF

Kaizen917 said:

This leads me to the other observation - why is it that many online comparison sites or articles may not even mention zero cost platforms like Trading212 or InvestEngine when listing the best S&S ISAs? Is it some kind of bias or there is a genuine reason to rule them out? I also find it strange that banks are not very bothered to offer a bit more competitive investment ISAs.

Perhaps they list sites that pay them, e.g. for advertising, or at least do not list sites that seriously undercut the sites that pay them. Lloyds offers iWeb, which is pretty competitive. HSBC InvestDirect is not bad for large portfolios.

ColdIron

Kaizen917 said:

I was wondering for the people that have been investing for 10+ years by now and with substantial portfolios - how much as a % would be fees threshold that you would find reasonable?

Percentage fee providers are OK for maybe a few tens of thousands but what about a few hundreds of thousands?

£300,000 of OEICs with an HL ISA would be £1,250, the same with IWeb would be £0. After 10 years HL would cost you £12,500. There's simply no way I would call that reasonable which is why I use IWeb for OEICs. Even with a lower percentage that would be out of the question for me

However with the right type of investments, Investment Trusts and ETFs (not OEICs), even HL would cap your charges at £45 pa. I'd call that reasonable. The cap for my larger SIPP is £200 so I'm happy to use HL for that

You cut your cloth to suit your coat

badger09

ColdIron said:

Kaizen917 said:

I was wondering for the people that have been investing for 10+ years by now and with substantial portfolios - how much as a % would be fees threshold that you would find reasonable?

Percentage fee providers are OK for maybe a few tens of thousands but what about a few hundreds of thousands?

£300,000 of OEICs with an HL ISA would be £1,250, the same with IWeb would be £0. After 10 years HL would cost you £12,500. There's simply no way I would call that reasonable which is why I use IWeb for OEICs. Even with a lower percentage that would be out of the question for me

However with the right type of investments, Investment Trusts and ETFs (not OEICs), even HL would cap your charges at £45 pa. I'd call that reasonable. The cap for my larger SIPP is £200 so I'm happy to use HL for that

You cut your cloth to suit your coat

Ditto again😊

I only started investing seriously in S&S ISA & SIPP 11 years ago. As a novice, I used Hargreaves Lansdown. Within a year, I moved my ISA from HL to IWEB when HL changed their charging structure. 

My fee savings are a little higher than your example. 

However, as I’m restricted to £3600 pa SIPP contribution, I’ve left it with HL invested in ETFs. My charges are capped @ £200 pa, which may not be the absolute cheapest, but suits me. 

ColdIron

HL are great for the £2,800/£3,600 annual SIPP contribution especially if you withdraw the relief as soon as it's received. No charges at all and I even got £15.41 tax free interest

ChilliBob

I have and use multiple providers for different reasons, but, 99% of my portfolio is with one provider. I figure the investments aren't held with them, so, if there was an issue with then then I'd hey them back, eventually. I don't need the capital in the account for day to day spending or what not, which I think is a big part of it. I did consider splitting across two platforms, perhaps, but never really got round to it.

I think having access to multiple platforms is useful if cost isn't an issue - eg I have iweb but I don't do much with it - if I need to use it I can. 

badger09

ColdIron said:

HL are great for the £2,800/£3,600 annual SIPP contribution especially if you withdraw the relief as soon as it's received. No charges at all and I even got £15.41 tax free interest

I’m leaving mine invested. I don’t need it & can’t envisage ever doing so. It’s a small, but not insignificant shelter from IHT. I’ll only be able to make 1 more contribution, but every little helps. 

Aminatidi

Thanks all.

Put a transfer request in this morning.

Fingers crossed it doesn't turn into a drawn out mess.

silvercue

This thread makes me feel poor 

Aminatidi

Trust me I know it's a very first world problem when you read some of the threads on here and other forums 👍🏻