Stockbrokers for Investment Clubs Sep’25

harrythehorse

I think this is the end of the line for investment club accounts in the UK. Brokers can't make a profit on investment clubs without charging a lot more than we're prepared to pay - Mainly because of the admin overhead of money laundering regulations - 10-20 people per account and they keep changing as members move in and out of each club. Interactive Brokers is a US based company turning over $9.6 Billion. US investment clubs require an LEI to trade. They are clearly not going to be interested in UK clubs. I can see no viable options. Anyone who takes us on would have to increase charges to cover their overheads before too long and could easily do so if they're the only game in town. I'm afraid we have to face financial facts. 

Tanatclub

harrythehorse said:

I think this is the end of the line for investment club accounts in the UK. Brokers can't make a profit on investment clubs without charging a lot more than we're prepared to pay - Mainly because of the admin overhead of money laundering regulations - 10-20 people per account and they keep changing as members move in and out of each club. Interactive Brokers is a US based company turning over $9.6 Billion. US investment clubs require an LEI to trade. They are clearly not going to be interested in UK clubs. I can see no viable options. Anyone who takes us on would have to increase charges to cover their overheads before too long and could easily do so if they're the only game in town. I'm afraid we have to face financial facts. 

I spoke to interactive brokers yesterday and they told me that they are not taking on investment clubs. Confused as it seems they are giving different information. 

DrNik

How do we get this issue to gain traction?
Is there any way to elevate it to Martin Lewis himself?

Magicmouse

Our club is in the same boat as others. We are very interested in a viable alternative to II but don't see it here...yet.
Becoming a Trust or a Company sounds far too complex. However, we are interested in finding out more about a single person trustee operating on behalf of all. Views welcome.

beegee

Thanks Magic mouse completely agree. I'm not giving up but it is so time consuming.

findthetruth

I have now obtained an LEI from Register-LEI Uk and started an application to IBKR.
3 problems already - the LEI is stated as invalid, which it isn’t. I can’t find a suitable account description for our investment club, and they want a UTR which of course, we haven’t got.
[Removed by Forum Team] from IBKR has stated that they can deal with Investment Clubs and I am waiting for her help…

findthetruth

Please see above..
[Removed by Forum Team] has now responded. First 2 problems resolved BUT they do need a UTR.
Not sure if I can resolve this one- I don’t want them to have mine!

JamesRobinson48

findthetruth said:

I have now obtained an LEI from Register-LEI Uk and started an application to IBKR.
3 problems already - the LEI is stated as invalid, which it isn’t. I can’t find a suitable account description for our investment club, and they want a UTR which of course, we haven’t got.
XXXX from IBKR has stated that they can deal with Investment Clubs and I am waiting for her help…

Polite suggestion:  on this forum it is discouraged to state the name of an individual CS representative that you have dealt with. That might result in the person being deluged by phone calls from numerous MSE forumites asking to speak to that named individual specifically. It could even get the person into trouble at work, if he/she gave a different response from other CS staff.  I am aware that many on this thread are newcomers and may be unfamiliar with its conventions.

Driverxyz

I was very interested in the information from DORCOTS 15tth September and the advice from HMRC.  It offered lots of advantages and potentially very simple to operate.  It does seem possible to set up such an account.  There does seem to be an issue in that the broker requires that the associated bank account has the same name as the person setting up the account.  We have an account in the name of the investment club, which would not be acceptable to them, and providing my bank account would not be acceptable to me or the members!  I have put the question to AJBell, but I am not too hopeful.  Can any one think of a way round this?

Ch1ll1Phlakes

Driverxyz said:

I was very interested in the information from DORCOTS 15tth September and the advice from HMRC.  It offered lots of advantages and potentially very simple to operate.  It does seem possible to set up such an account.  There does seem to be an issue in that the broker requires that the associated bank account has the same name as the person setting up the account.  We have an account in the name of the investment club, which would not be acceptable to them, and providing my bank account would not be acceptable to me or the members!  I have put the question to AJBell, but I am not too hopeful.  Can any one think of a way round this?

While I have no experience with Investment Clubs would opening a separate account for your club in your name PLUS the names of say 2-4 other individuals from the club be an option. This way you'd have an account for I presume paying in the funds and would allow your account to be set up, while allowing any transactions to be viewed by other members so no issues may arise.

I've linked the finder website which gives options of such accounts but again I've no experience with this. I just know these accounts will act as joint accounts between multiple persons.
Compare joint bank accounts for 3, 4 and more people