Invesment Question

PloughmansLunch

MoneyMan01 said:

FIREmenow said:

MoneyMan01 said:

Thanks

So for the HSBC fund, on the basis of say £1,000 a month, option 4 with Dodl/AJ Bell would be the cheapest, coming in at a cost of £45.60 per year.

Option 1 is second for HSBC, costing £46.80 p/a.

Option 3 would come in at £75.60 p/a.

The Vanguard option would cost £45.60 p/a.

I'd probably look at moving most of it each April, into an ISA. 

Anything remaining outside the allowance, I'd move to iWeb in April (to a GIA).

If I'm moving from a GIA on say HSBC's platform, to iWeb, can you do that as a transfer and does that still cost the £5 purchase fee? Or, would I have to sell, and repurchase via iWeb, thus including the £5 purchase fee?

Also, I understand platforms charge a yearly %, in this case, HSBC charge 0.25%, I can see it says that charge happens every quarter, but my plan would be to move it from their platform, to iWeb, after 12 months. Are the platform charges every quarter from when you open the account, or are there set dates? I ask because I am trying to grasp when the best time to move the money across would be?

Hi, just a correction to the Dodl fee - the platform fee is 0.15% or £12, whichever is higher, meaning any monthly fee less than £1 is rounded up to £1. You don't pay £12 plus 0.15%.  £12k fee for a year is £18 (over the minimum). So in your calculations above Dodl would be £33.60.

Annual calculations are good for comparison, but the percentage fees will actually be lower than this if you are starting from zero. If you are drip feeding monthly then only the last month will have the full £12k in and the highest fees. Interest is usually calculated daily at one 365th of the interest rate, then paid monthly/quarterly etc. 

If you want to know fees exactly you can use a regular savings calculator and the interest gained, is just fees lost in this case. (Dodl will just be the flat £12 in this case as the total for the year will be rounded up from £9.75

Mentioning as you might find the fees are so low when drip-feeding that you could go longer than a year between transfers and still be saving compared to the iWeb transaction fees.

Thanks for this.

I actually proceeded with the fund via HSBC's GIC platform.

It hasn't actually gone through yet by the looks of things, and is on "pending". I may look into whether I can cancel that and get it through Dodl in this case.

Is that going to cause issues, and does anyone know if this is possible / done something similar in the past?

HSBC GIC are pretty hands-off as far as customer service is concerned, so if I were you I’d leave it to complete. For your info I recently transferred out my HSBC FTSE holding from HSBC GIC to Lloyds (so effectively Halifax Share Dealing / iWeb) and surprisingly it only took about 3 or 4 working days to do so.

MoneyMan01

Dodl says it can take 6-8 weeks to transfer to. 

Alternatively, I guess I could sell what I have with HSBC (does it matter if it only was bought a few days ago) and then open and purchase via dodl?

Looks as though there is a £1.80 selling fee with HSBG GIC, but long term the Dodl platform is cheaper, especially the more you hold on there. 

Not entirely sure what’s best to do here. 

FIREmenow

Even if it takes 6-8 weeks to transfer, you are invested the whole time for an in specie transfer so it doesn't really matter. Whilst it's transferring you can make your regular investments in the new Dodl account.

Try not to get to bogged down in this and remember the difference in fees in £s is small at the moment.

MoneyMan01

FIREmenow said:

Even if it takes 6-8 weeks to transfer, you are invested the whole time for an in specie transfer so it doesn't really matter. Whilst it's transferring you can make your regular investments in the new Dodl account.

Try not to get to bogged down in this and remember the difference in fees in £s is small at the moment.

Thank you for the clarification!

MoneyMan01

Just noticed that on Dodl, I can only see the Acc version of HSBC FTSE All World. 

I have the HSBC FTSE All World Income version. To transfer to Dodl, it says it needs to be the same fund. 

I’ve asked them via the chat but had no response. 

Does anyone know if the Income version is on Dodl?

DeLaSole

MoneyMan01 said:

Just noticed that on Dodl, I can only see the Acc version of HSBC FTSE All World. 

I have the HSBC FTSE All World Income version. To transfer to Dodl, it says it needs to be the same fund. 

I’ve asked them via the chat but had no response. 

Does anyone know if the Income version is on Dodl?

Hi MoneyMan,

Only the Acc. version is on Dodl.

MoneyMan01

I’ve opened a GIA on there for nothing in that case. I haven’t deposited anything, so I won’t get charged for having an account will I? Debating whether to look at closing it down or leaving it open. 

DeLaSole

MoneyMan01 said:

I’ve opened a GIA on there for nothing in that case. I haven’t deposited anything, so I won’t get charged for having an account will I? Debating whether to look at closing it down or leaving it open. 

I believe it's a minimum of £1pm charge at Dodl, and entering £0 investment on the fees calculator on their website also suggests that would be the fee.

MoneyMan01

FYI, I had a response back from them, and if nothing is in the account, there isn't a charge.