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Moving S&S ISA from IWeb to Trading 212 or etoro etc for lower fees? any concerns for larger pots?

isayhello
Posts: 455 Forumite


I have an ISA currently with IWeb that is over the 85k protection limit, I'm considering moving to a lower fee provider for trades as I do tend to make a few changes now and then and with IWeb its £5 each time and I like to make changes. It seems many people are using these other providers ok, I just wondered if anyone would have concerns of large ISA pots being with one of these companies.
Another option could be a partial transfer but not sure if anyone has had experience of this with these providers? Any advice appreciated.
Another option could be a partial transfer but not sure if anyone has had experience of this with these providers? Any advice appreciated.
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Comments
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It is good to gain the discipline to sit on your hands and avoid making changes. You should have a long term plan, and try to stick to it. Having a fixed cost to trading is probably worthwhile as a deterrent, as you'll also have hidden costs such as spread, and a tendency to underperform your investments through trading.I would be more cautious about holding very large pots with the smaller providers, but it is not a major concern.I don't think iWeb will support a partial transfer out, but that's something you should confirm.1
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masonic said:It is good to gain the discipline to sit on your hands and avoid making changes. You should have a long term plan, and try to stick to it. Having a fixed cost to trading is probably worthwhile as a deterrent, as you'll also have hidden costs such as spread, and a tendency to underperform your investments through trading.I would be more cautious about holding very large pots with the smaller providers, but it is not a major concern.I don't think iWeb will support a partial transfer out, but that's something you should confirm.
Why wouldn't it be a major concern for you to use the smaller platforms? is that because there is some protection. I'm sure there are people using them with far more than I have invested but I thought I'd check first.0 -
The smaller providers are often very new, often not profitable and the AUM ( assets under management) are small in relative terms. ( Providers like Vanguard, Fidelity etc are managing Trillions of Dollars of assets for example)
So there is always a possibility that a new small provider will have some kind of problems, get taken over etc .
Very unlikely you would lose any money, but could be some hassle involved.
Larger investors, maybe retired etc will prefer more established providers as a general rule.1 -
Below £85k, it is just an inconvenience factor. When you get to several multiples of £85k, then there is some potential risk of a particularly bad state of affairs leading to some degree of loss, but it would take quite a lot of missing assets and/or difficulties returning assets.Providers break down into several classes: 1) The large established players, who will have billions-trillions under management and mainstream investments only. 2) The smaller players who may be profitable or not, but perhaps whose systems and processes are not as robust, and where any missing assets would not be spread among many investors. 3) The bespoke outfits who have sidelines in complex investments and would be very challenging for an administrator to come in and wind down. Both 2 and 3 present some risks you wouldn't expect from 1.One option you could take is to start a new account at one of the no-fee brokers and build it up using new money. This could be used for your 'fun' portfolio, while you keep your boring investments at iWeb where they can sit relatively untouched.1
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You could just use multiple brokers.
T212 looks like a decent, profitable business.
https://find-and-update.company-information.service.gov.uk/company/08590005/filing-history
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wmb194 said:You could just use multiple brokers.
T212 looks like a decent, profitable business.
https://find-and-update.company-information.service.gov.uk/company/08590005/filing-history0 -
masonic said:Below £85k, it is just an inconvenience factor. When you get to several multiples of £85k, then there is some potential risk of a particularly bad state of affairs leading to some degree of loss, but it would take quite a lot of missing assets and/or difficulties returning assets.Providers break down into several classes: 1) The large established players, who will have billions-trillions under management and mainstream investments only. 2) The smaller players who may be profitable or not, but perhaps whose systems and processes are not as robust, and where any missing assets would not be spread among many investors. 3) The bespoke outfits who have sidelines in complex investments and would be very challenging for an administrator to come in and wind down. Both 2 and 3 present some risks you wouldn't expect from 1.One option you could take is to start a new account at one of the no-fee brokers and build it up using new money. This could be used for your 'fun' portfolio, while you keep your boring investments at iWeb where they can sit relatively untouched.0
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