Cheapest stocks & share ISA for buying funds only

Booker_j

Hi,

After research, I have decided to invest in the HSBC FTSE all world index fund (small ongoing fee 0.13%). You can get this with HSBC in an S&S ISA - with a platform / account fee of 0.25% which seems quite reasonable in comparison to others (such as HL 0.45%). 

I want to have the fund with a reputable platform (hence HSBC) but is anyone aware of any platforms that may be cheaper and meet this criteria?

I will be investing £400 p/m by direct debit, so any platform with purchase fees etc will likely be unsuitable due to the regular but relatively small investment. HSBC (and HL) for instance do not charge to deal funds. 

Thank you 

ColdIron

There are several new fintechs that are basically free but most of them are ETF only, so no funds. If you are looking for an all world tracker you could identify an ETF equivalent that tracks the same, or similar, index

Maybe check out Dodl by AJ Bell, 0.15% and no trading fees. At £400 per month that would be £3.60 in your first year
Edit: Seems like Dodl has a £1 per month minimum fee, would this blow your budget?

With low sums like yours the fees will be low for any percentage fee provider, perhaps focus on other factors like service, range etc rather than annual cost in isolation. For example, HSBC would be £6 in the first year while HL would be £10.80

wmb194

Booker_j said:

Hi,

After research, I have decided to invest in the HSBC FTSE all world index fund (small ongoing fee 0.13%). You can get this with HSBC in an S&S ISA - with a platform / account fee of 0.25% which seems quite reasonable in comparison to others (such as HL 0.45%). 

I want to have the fund with a reputable platform (hence HSBC) but is anyone aware of any platforms that may be cheaper and meet this criteria?

I will be investing £400 p/m by direct debit, so any platform with purchase fees etc will likely be unsuitable due to the regular but relatively small investment. HSBC (and HL) for instance do not charge to deal funds. 

Thank you 

Have a look at iWeb, part of Lloyds Bank and soon to be renamed Scottish Widows Share Dealing. It has no ongoing account fee and when it becomes SW it will offer free regular investing.

scoobyjones1

I have had a lot of trouble dealing with HSBC. It's not based in the UK and any customer service issues take for ever. Avoid, IMO.

Ch1ll1Phlakes

Booker_j said:

Hi,

After research, I have decided to invest in the HSBC FTSE all world index fund (small ongoing fee 0.13%). You can get this with HSBC in an S&S ISA - with a platform / account fee of 0.25% which seems quite reasonable in comparison to others (such as HL 0.45%). 

I want to have the fund with a reputable platform (hence HSBC) but is anyone aware of any platforms that may be cheaper and meet this criteria?

I will be investing £400 p/m by direct debit, so any platform with purchase fees etc will likely be unsuitable due to the regular but relatively small investment. HSBC (and HL) for instance do not charge to deal funds. 

Thank you 

The following page on financialinterest.com gives an overview of brokers of S&S ISA including fees (the review of each broker give details on the fees in more detail). Compare Stocks & Shares ISAs - Financial Interest. Note, you would need to check where the HSBC FTSE all world index fund is available. 

After a quick google, other broker that you should be able to buy the above fund from should include Hargreaves Lansdown, AJ Bell, Fidelity, iWeb, Lloyds and Halifax.  I'll also mention Chip, though not a mainstream name they offer the HSBC fund along with free account / platform fees for the first year and then 0.25% after. See here Stock and Shares ISA | Chip

Booker_j

Thanks for the replies all, some good information and suggestions. 

scoobyjones1

This one looks very interesting :
https://www.trading212.com/isa

ColdIron

scoobyjones1 said:

This one looks very interesting :
https://www.trading212.com/isa

T212 doesn't allow the open ended funds that the OP wants

Booker_j

ColdIron said:

There are several new fintechs that are basically free but most of them are ETF only, so no funds. If you are looking for an all world tracker you could identify an ETF equivalent that tracks the same, or similar, index

Maybe check out Dodl by AJ Bell, 0.15% and no trading fees. At £400 per month that would be £3.60 in your first year
Edit: Seems like Dodl has a £1 per month minimum fee, would this blow your budget?

With low sums like yours the fees will be low for any percentage fee provider, perhaps focus on other factors like service, range etc rather than annual cost in isolation. For example, HSBC would be £6 in the first year while HL would be £10.80

Great suggestion with Dodl - it has the fund I want, a small platform flat fee of 0.15% and is part of well known AJ Bell, thanks!! I hadn’t even heard of it. 

Alexland

Booker_j said:

Great suggestion with Dodl - it has the fund I want, a small platform flat fee of 0.15% and is part of well known AJ Bell, thanks!! I hadn’t even heard of it. 

Have you checked if the fund you want is on iWeb as it is owned by Lloyds and has no ongoing fee and as part of the Scottish Widows rebrand will be offering free regular investment too?

Qyburn

Iweb has that fund. (HSBC FTSE All-World Index C Acc GB00BMJJJF91). 

Until Iweb adds their monthly investment option, and we don't know when that will be, you could do your regular investment into another platform, then periodically transfer to Iweb.