Which Broker for buying and holding some Investment trusts?

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  • george4064
    george4064 Posts: 2,811 Forumite
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    I use AJ Bell YouInvest and very happy with the service alongside competitive fees. Would recommend.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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  • talexuser
    talexuser Posts: 3,499 Forumite
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    Bell are competitive for shares and etfs, but for larger amounts in funds they are only middle of the road with more than half dozen platforms considerably cheaper. Their re registration charges are also amongst the highest.
  • RomfordNavy
    RomfordNavy Posts: 684 Forumite
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    londoninvestor wrote: »
    In black and white here: "Dividend reinvestment purchases are charged per reinvestment at a flat rate of 2% based on the value of the dividend (maximum £5)".

    So it's actually a little more favourable than the £5 per trade they told you. Some trades (namely small dividend reinvestments) cost less than that.
    Well this could get interesting, looks like they have been lying to me. I have a recording of their phone call where they confirmed that the only charges are the £25 opening fee and the £5 per trade transaction fee, they even called me to confirm that I understood the charges which would apply! That page you linked to suggests ISA transfer fees as well which they failed to mention. I can see this becoming a complaint to the FOS if they try and apply any of those charges.
  • talexuser
    talexuser Posts: 3,499 Forumite
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    I think you should calm down a little. ISA transfer fees are when you leave them and transfer out to another platform so not an ongoing expense. With iWeb they are at least capped at £125 max, many platforms have higher transfer out charges once you have a few funds, those that do not charge on the way out have far more in custody charges or limited choice in funds.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    londoninvestor wrote: »
    reinvestment at a flat rate of 2% based on the value of the dividend (maximum £5)".

    So it's actually a little more favourable than the £5 per trade they told you. Some trades (namely small dividend reinvestments) cost less than that
    RomfordNavy wrote: »
    Well this could get interesting, looks like they have been lying to me. I have a recording of their phone call where they confirmed that the only charges are the £25 opening fee and the £5 per trade transaction fee, they even called me to confirm that I understood the charges which would apply! That page you linked to suggests ISA transfer fees as well which they failed to mention. I can see this becoming a complaint to the FOS if they try and apply any of those charges.

    What are you on!?

    If you would like, you can automatically reinvest dividends that arrive in the account at a MAXIMUM cost of £5, but it will be less than £5 in many cases as it is a percentage based sliding scale which tops out at the same price as an ad hoc purchase transaction.

    If they told you that it would cost you £5 for every purchase of shares but neglected to tell you that actually if you have money arriving in your account resulting from dividend income, they will grant you the ability to purchase new shares, if you wish, on an automatic basis for LESS than the standard £5 for normal share purchases that you had agreed to...

    ... then to decry them as liars and threaten to instigate a complaint with the ombudsman is bonkers.

    - It costs £5 to buy shares.

    - If you have incoming dividend income which is sufficient to buy new shares in the same company, they will let you participate in a special program to reinvest that incoming money for LESS than £5.

    If they forget to tell you about that special offer (which won't be relevant to many people, self included, who don't reinvest incoming dividends back into the exact same company the same time they arrive) and so you think it is going to cost you the full £5; and then you read more about their services and discover they have a better deal so it will be only (say) £2 on a £100 transaction instead of £5. The natural reaction shouldn't be to say, "I will contact the FOS if they try to charge me £2, because I understood that any share purchase should be £5".
  • redux
    redux Posts: 22,976 Forumite
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    edited 16 September 2018 at 4:58PM
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    A recent direct example to confirm iWeb charges for dividend reinvestment:

    74 @1.0616 = 78.56, broker charge 1.57, stamp duty 0.39

    That could be a marginally cheaper £1 charge at HL, but the other quarterly dividends are lower, so only about 50p charge at iWeb. On the other hand I have some holdings at HL which earn them about £4.50 a year, which would be £9 at iWeb.

    As I suggested, it's splitting hairs over a few pence or couple of quid at this level, but for someone with 15 or 20 significant holdings and reinvesting dividends it will be worth considering different platform's charges, might be worth £100 to £300 or more a year.
  • RomfordNavy
    RomfordNavy Posts: 684 Forumite
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    RomfordNavy wrote: »
    That link looks like it is about the ISA, it mentions a management charges of £32.50+VAT. There is also the vague paragraph:
    Does anyone know whether the Baillie Gifford Management charge applies to the (non-ISA) Share Plan or just the ISA? It is not clear from their webpage and I can't find any more clarity in any of their other documents..
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    RomfordNavy wrote: »
    Does anyone know whether the Baillie Gifford Management charge applies to the (non-ISA) Share Plan or just the ISA? It is not clear from their webpage and I can't find any more clarity in any of their other documents..

    If you are on the "share plan and ISA" page at

    https://www.bailliegifford.com/en/uk/individual-investors/how-to-invest/investment-trust-share-planisa/

    The page is split into two parts for the two products

    Investment Trust ISA:
    SUMMARY OF FEATURES
    Tax-efficient investment
    No set-up charge*
    Flat rate annual management charge of £32.50 + VAT
    Lump sum investment from £2,000 up to a maximum of £20,000 each tax year
    Invest monthly from £100

    Investment Trust Share Plan
    SUMMARY OF FEATURES
    No initial or annual plan charge*
    Invest a lump sum from £250 or monthly from £30
    No maximum investment
    Stop and start investing at any time

    The £32.50+vat annual charge for being your ISA manager is a feature of the ISA product. Whereas the share plan does not have an initial or annual plan charge; it will also take smaller lump sum or annual amounts but does not have the tax exemptions.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    bowlhead99 wrote: »
    The natural reaction shouldn't be to say, "I will contact the FOS if they try to charge me £2, because I understood that any share purchase should be £5".

    But how can anyone trust a fixed fee platform that sneakily charges lower percentage fees for things that you might reasonably expect them to charge higher fixed fees on? It's the thin end of the (capped) wedge.

    Alex
  • RomfordNavy
    RomfordNavy Posts: 684 Forumite
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    bowlhead99 wrote: »
    If you are on the "share plan and ISA" page at

    https://www.bailliegifford.com/en/uk/individual-investors/how-to-invest/investment-trust-share-planisa/

    The page is split into two parts for the two products
    ...
    Thanks for that bowlhead99, I hadn't realised there was that other section for the non-ISA share plan further down the page. I wonder if the £22 per withdrawl charge applies to a non-ISA account or not?
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