Draw Down SIPPs Fidelity vs Interactive Invester

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  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    We are still in the accumulation phase so I can only comment from that perspective but, as a recent mover from HL to Fidelity and having had a YouInvest (AJ Bell) account I'll offer some comments.

    SIPP platforms are really no different than normal GIA / ISA S&S accounts other than managing the tax relief element of the contribution.
    1. You don't have the ability to click a buy button, you have to click on switch. Once you've done it and understand then it is fairly intuitive but not initially.
    2. Fidelity seem to have retained the concept of your cash as being within a deposit fund rather than just being cash; see point 1
    3. Changing a regular investment fund or amount requires you to go through the entire process of setting up and completing a direct debit mandate rather than just amending the salient aspects
    4. Some sites treat the regular contribution and the regular investment as two distinct activities, Fidelity doesn't have that concept

    These are a few of the things I have picked up on since switching to them, it makes the user experience clunky at best and not as intuitive as perhaps it should be. Having said that once the portfolio is set up then these things will not really worry me.

    Have only been with them for 3 months so will see how it goes.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • ArchBair
    ArchBair Posts: 153 Forumite
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    Alexland wrote: »
    I wouldn't worry to much about the age of the software as some of the best investment products have old software.

    Fidelity also cap their platform cost at £45 for exchange traded instruments such as ITs and under certain circumstances are offering cashback and to cover the cost of transfers.

    https://www.fidelity.co.uk/investing/fees
    https://www.fidelity.co.uk/transfer/cashback

    Personally if going for a Baillie Gifford IT then my preference is for Monks over Scottish Mortgage as it is less concentrated. I also like Bankers from Hendersons and the multi manager / self managed Witan.

    Brunner managed by Allianz might also have potential now that an onerous gearing facility from the 90s is finally expiring. Not sure the market has priced this in yet as it is still trading at a good discount.

    Alex

    From a personal perspective, I like the concept of holding SMT with Bankers as my two core global holdings.

    SMT gives you a a more concentrated growth fund (around 37 listed equity holdings and about the same total in unlisted equities) whereas Bankers is a lower risk income & growth IT which broadly covers most regions and sectors therefore complimenting SMT.

    I've not heard anything about the gearing with Brunner but must look into this purely out of interest as I'm now happy with SMT & Bankers.
  • StellaN
    StellaN Posts: 354 Forumite
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    ArchBair wrote: »
    From a personal perspective, I like the concept of holding SMT with Bankers as my two core global holdings.

    Nothing wrong with that in my opinion, however, you could equally hold either Witan or F&C to compliment your SMT holding but Bankers is also good.
  • MPN
    MPN Posts: 365 Forumite
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    If you are only investing in IT's or ETF's in your SIPP then I would go with Fidelity as the fees are so low (£45 per annum) and no drawdown or transfer out charges therefore even if you were not happy it will cost you nothing to transfer out.
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    MPN wrote: »
    If you are only investing in IT's or ETF's in your SIPP then I would go with Fidelity as the fees are so low (£45 per annum) and no drawdown or transfer out charges therefore even if you were not happy it will cost you nothing to transfer out.
    But, they do charge their fee on holding cash.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • MPN
    MPN Posts: 365 Forumite
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    cloud_dog wrote: »
    But, they do charge their fee on holding cash.

    Agreed, but they do pay interest at 0.35% which equates to the custody fee that they charge for holding cash so therefore they cancel each other out. The benefits are obviously much better if you are invested in your chosen IT's or ETF's rather than cash.
  • ian.smith7
    ian.smith7 Posts: 22 Forumite
    edited 19 April 2018 at 7:36PM
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    Thank you all for your replies.
    It seems I have opened a SIPP with interactive Investor.
    I have not transferred my pension in yet and I am still in the 30 day period.
    i chose ii mainly for 2 reasons
    1. The Low fee structure.
    2. A comment dunstonh made in another thread about the underlying software Platform being modern and robust.
    "III apparently use FNZ. FNZ has some of the best software on the market for platforms. However, it is highly configurable (so features/options can be enabled/disabled) and FNZ just controls the backend and trading. They do not code the frontend (how info is displayed)."

    hope i have made the right decision:(

    Would anyone disagree with ii being cheaper than Fidelity for a £160K SIPP in Drawdown that holds a mixed bag of about 10 - 15 Funds And ITs with about 4 trades a year after the initial set up and no money taken out of the fund for the next 5 years.
    Rereading the last few replies they seem to favour Fidelity. Still 30 days to change my mind!

    Thankyou once again for all your comments
    Ian
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    ian.smith7 wrote: »
    Would anyone disagree with ii being cheaper than Fidelity for a £160K SIPP in Drawdown that holds a mixed bag of about 10 - 15 Funds And ITs with about 4 trades a year after the initial set up and no money taken out of the fund for the next 5 years.
    Rereading the last few replies they seem to favour Fidelity. Still 30 days to change my mind!
    Sometimes, you can't get past "You get what you pay for".

    You are always going to get many many different and probably opposing opinions on providers and platforms. For me, I have spent the last 10+ (maybe 15) years running away from II (III as was). Recently moved the OH GIA and ISA away from TD Direct (who have been brilliant) because they were taken over by II.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    For small SIPPs HL are good. At £160k I can see why you are using a different provider.

    We shall probably move a small S&S ISA away from II - for that they are too expensive.
    Free the dunston one next time too.
  • LHW99
    LHW99 Posts: 4,217 Forumite
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    II seems to have significant problems during transfers in or out. That said, it isn't always only their fault (from experience).
    I don't find a problem with their new site, but I don't do a lot of trading, and keep to fairly mainstream holdings.
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