IWeb - Why aren't they on the MSE top SSISA list?

j_netprofit

You can invest (in one lump) 20k into a single fund for only £5.

From my 2mins of research there are only two providers who can beat that T212 and IE.

Am I missing something?

eskbanker

From the article:

Investing isn't MoneySavingExpert's area of expertise. So, we don't tell you here what the 'best' platform for you is, or give you any top picks. What we've done is pull out a mix of both cheaper platforms and well-known platforms for the two main types (DIY platforms and managed or robo-investment platforms), so you have somewhere to start your own research in to which suits you best.

The differing charging models (and other important features) of the various platforms makes it difficult to come up with any meaningful 'best buy' comparison, so you need to model costs based on your own likely investing profile.  In particular you've highlighted the transaction cost of a single purchase, which is free on many platforms, so it's not hard to beat £5 for that, even though that may be outweighed by annual charges thereafter.

Try the likes of https://www.comparefundplatforms.com/ or just the raw data at https://monevator.com/compare-uk-cheapest-online-brokers/

dunstonh

You can invest (in one lump) 20k into a single fund for only £5.

Multi-charge platforms, like iweb, are more complicated to cost than percentage based ones.   In some scenarios, they will be cheap but in others they will be expensive.  They also have some implicit charges that are not as easy to see.  Such as the no interest paid on cash balances.

So, the outcome on charges is going to be highly dependent on the circumstances of the individual.

wmb194

jay_ftw said:

You can invest (in one lump) 20k into a single fund for only £5.

From my 2mins of research there are only two providers who can beat that T212 and IE.

Am I missing something?

iWeb normally charges £100 to open an account. At the moment it's being waived but if the comparison tables aren't being constantly updated or monitored it could be one reason.

j_netprofit

eskbanker said:

From the article:

Investing isn't MoneySavingExpert's area of expertise. So, we don't tell you here what the 'best' platform for you is, or give you any top picks. What we've done is pull out a mix of both cheaper platforms and well-known platforms for the two main types (DIY platforms and managed or robo-investment platforms), so you have somewhere to start your own research in to which suits you best.

The differing charging models (and other important features) of the various platforms makes it difficult to come up with any meaningful 'best buy' comparison, so you need to model costs based on your own likely investing profile.  In particular you've highlighted the transaction cost of a single purchase, which is free on many platforms, so it's not hard to beat £5 for that, even though that may be outweighed by annual charges thereafter.

Try the likes of https://www.comparefundplatforms.com/ 

That's a great link, not seen that before. I put in how I would use any given platform and for my example, as kinda outlines above IWEB came up trumps.

Checked it with my SIPP too and thankfully my chosen provider also came out on top.

I guess I underestimate my due diligence!

pochisoldi

As previously mentioned it's horse for courses, and there's nothing to stop you owning two horses...

For S&S ISAs I use iWeb for long term buy+hold single share lump sum investments, and dividends are automatically reinvested (works out at around 2.5% for commission and stamp duty).
Regular/monthly investments go through another provider, which charge nothing for dealing, but a percentage to maintain the account (which comes from an "outside the ISA wrapper" cash account or a monthly direct debit). (The regular investments were unit trust funds, I then changed to ETFs when I transferred provider and had a look at the fund charges)

I think iWeb would probably be cheaper in the long run, but aren't a realistic option for monthly investing.
In effect I'm paying a premium for lazyness - to have the second provider do things automagically every month.

Never really considered transferring out as my previous "second provider" Fidelity didn't permit partial transfers out.
Might need to look at that at some point.

Now that you can contribute to multiple ISAs of each type (HMRC only look at your aggregate subscriptions for the year), having a second provider isn't a big deal - Hint iWeb have a £0 signup fee until Dec 31st - open a sharedealing and ISA account and let them lie fallow.