Stockbrokers for Investment Clubs Sep’25

MorGra

I'd like to check that I have this right.
If we obtain an LEI and join IBKR, their charges are 0.05% per deal (Min £1.00)
So, for our typical £3000 deal, the charge would be £1.50
There are no other ongoing charges whatsoever.
That seems very attractive.  Is there a catch?
OK, I haven't checked what 

Tiered5	Fixed - IB SmartRoutingSM	Fixed - Direct Routing

means, but even at the highest rate of 0.10% min £4.00, it's still OK.
Have I missed something?

ShareClubber

I have also been looking at IKBR fees and I think your summary is correct.

Whispering

Is an LEI number easily obtained for a share club? And where best to get it?  I assume clubs would have a constitution and accounting procedures, sufficient for members’ tax submissions, but are not otherwise formalised.

Tanatclub

12Saver3 said:

Has anyone experience of using CFM?

Has anyone had any dealings with CFM. I don't seem to be getting any response from them regarding it they have a cap on number of members and would we be able to transfer our US stocks too. 

Accipiter

Hi, I am currently Treasurer of a 10 person investment club that has been in existence for 27 years. ii sent their letter giving notice to the previous Treasurer so I did not become aware of the issue until Sept 11. I wrote to ask for an extension, predictably without success but will write again. The timescale is too tight. A good point was made on this forum that this is happening in spite of the Govt's desire to encourage small investors to switch money to stocks and shares, whilst the issue seems to be that money laundering regs are making small clubs no longer viable for brokers.  As regards options Pilling looks sound but too costly. A colleague has approached CFM -not much response yet which indicates they are a small outfit and overwhelmed. Other options such as IBKR seem complex and it is a case of our clearly understanding their terms and having confidence in them. Incidentally when I approached Pilling they conceded we are not a Trust and their respondent agreed we'd not need to register as such with HMRC -but can this informal advice be relied on? We need  more time to assure ourselves that we know the terms on which we register with a broker. Anyway we'd like to keep going and support other people's efforts to do so.

poseidon1

Accipiter said:

Hi, I am currently Treasurer of a 10 person investment club that has been in existence for 27 years. ii sent their letter giving notice to the previous Treasurer so I did not become aware of the issue until Sept 11. I wrote to ask for an extension, predictably without success but will write again. The timescale is too tight. A good point was made on this forum that this is happening in spite of the Govt's desire to encourage small investors to switch money to stocks and shares, whilst the issue seems to be that money laundering regs are making small clubs no longer viable for brokers.  As regards options Pilling looks sound but too costly. A colleague has approached CFM -not much response yet which indicates they are a small outfit and overwhelmed. Other options such as IBKR seem complex and it is a case of our clearly understanding their terms and having confidence in them. Incidentally when I approached Pilling they conceded we are not a Trust and their respondent agreed we'd not need to register as such with HMRC -but can this informal advice be relied on? We need  more time to assure ourselves that we know the terms on which we register with a broker. Anyway we'd like to keep going and support other people's efforts to do so.

Trusts are very precise and specific entities. If your club constitution has been established as a recognisable unincorporated association there should no problem demonstrating that fact to a broker prepared to take on this business.

Incidentally very early in this thread Redmayne Bentley were mentioned has  still appearing to be active in this market. With 25 offices nationwide they are a much larger entity compared to Pilliing , with similar commission terms.

https://www.redmayne.co.uk/stockbroking#:~:text=*Please note, if you would,details of our offices here.

I get the impression from an old Investors Chronicle article that Redmayne were a reasonably sized player in this market.

phlebas192

poseidon1 said:

Incidentally very early in this thread Redmayne Bentley were mentioned has  still appearing to be active in this market. With 25 offices nationwide they are a much larger entity compared to Pilliing , with similar commission terms.

https://www.redmayne.co.uk/stockbroking#:~:text=*Please note, if you would,details of our offices here.

I get the impression from an old Investors Chronicle article that Redmayne were a reasonably sized player in this market.

Apparently, they aren't accepting clubs now. The fees - as with Pilling - just wouldn't work for us in any case.
We're pretty much settled now that we're going to dissolve our club. It's a shame but I think the writing has been on the wall for some time. This is just the final nail in the coffin, but ultimately the slashing of the allowances for dividends and capital gains has been the real killer - the convenience of a club can't really offset the extra tax that now comes from following an active strategy outside of an ISA or SIPP.

ShareClubber

Whispering said:

Is an LEI number easily obtained for a share club? And where best to get it?  I assume clubs would have a constitution and accounting procedures, sufficient for members’ tax submissions, but are not otherwise formalised.

Global Legal Entity Identifier Foundation (GLEIF) provide a list of approved service providers, several of which are UK based.  I cannot post links yet but just Google "GLEIF LEI providers".

Has anyone managed to obtain an LEI for their share club?

RUTIC25

Hi All, I represent a long established London based Investment Club 25 years+ and with 11 members and a portfolio of around £85K in the same position as the rest of you so just linking up through this forum. Thanks

WightWave

Hi Everyone,

I'm a bit late to the discussion but I've only just heard about it from another investment club.  I'm the Treasurer of an investment club that has been running for 25 years and if only 1 thing good comes out of this then it will be knowing we are not alone. Until recently I thought we were the only investment club left.

We, too, have been using Interactive Investor ever since being transferred over from SelfTrade and are very angry about the way we have been treated. At one point I thought it would be the end of our club but this forum has given me new hope. My private portfolio is with AJ Bell so I contacted them straight away but from reading other people's posts here it sounds unlikely that AJ Bell will be interested in helping Investment Clubs. I've looked at Piling but they seam very expensive. I'm now looking at Interactive Brokers as suggested here; has anyone yet managed to set up an account with them and if so a detailed explanation of how it was done would be very useful.

It would be great to set up an Investment Club Association but I feel it is impracticable but would a looser grouping be possible because it would be great to have a central place where investment clubs could get together to discuss issues/get advice. "Together Strong"