TD Direct sold to Interactive Investor

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  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    economic wrote: »
    im not sure why so many are deciding to leave? the charges are a good thing for me and i would expect a good thing for most? yes there is an annual fee now but that can be offset by trading costs. also more crucially there is no platform fee for holding funds so my costs will go down a lot.

    or am i missing something?
    I can see why there will be quite a few people that want to move, as always happens when a fee structure changes from one style to another.

    For people whose holdings were predominantly funds, TDD were never the cheapest around - their 0.3% (reduced from 0.35% a couple of years back) were undercut by the likes of Charles Stanley Direct or Cavendish or Youinvest 0.25%, or Vanguard recently for the vanguard-only investors and so on. Presumably the people with large fund balances had already embraced other providers.

    What TD was good for was more the broking side with highly functional accounts and low inactivity fees/ fee waivers so you only really needed to pay for your trades.

    Now with the new structure you need to give them a minimum of £90 a year through the quarterly fees.
    - for a low value account (e.g. £5-6k) that's a hike to the 1.5-2% range.
    - if you were a high value fund investor it is a reduction but such investors if they were fee sensitive would already be using someone else for their funds investing.
    - if you are holding mostly stocks, and not trading significantly, you won't find £90 of trades in the year to use the £90 of 'credit', especially if your buys are just the regular investing £1 a month fee, so the quarterly trading fees add up to unwelcome extra slug of money of perhaps £50-£90 a year that other providers (albeit less full-featured ones) may not charge

    I am still undecided about leaving my shares ISA there as it's not massive at the moment having bought a new property this year. My small unwrapped trading account which I run for neice/nephew has started the process to move to Youinvest (as I have my SIPP there, parent's ISAs etc). I have another unwrapped account where I like the functionality that TDD has offered over the years (extended settlement, lots of foreign markets, multicurrency cash accounts) so it may stay especially if my ISA does - but £90 is quite steep for a nominee broker if you are not actually doing any trading or making use of the things they offer over and above what other providers do.
  • economic
    economic Posts: 3,002 Forumite
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    bowlhead99 wrote: »
    I can see why there will be quite a few people that want to move, as always happens when a fee structure changes from one style to another.

    For people whose holdings were predominantly funds, TDD were never the cheapest around - their 0.3% (reduced from 0.35% a couple of years back) were undercut by the likes of Charles Stanley Direct or Cavendish or Youinvest 0.25%, or Vanguard recently for the vanguard-only investors and so on. Presumably the people with large fund balances had already embraced other providers.

    What TD was good for was more the broking side with highly functional accounts and low inactivity fees/ fee waivers so you only really needed to pay for your trades.

    Now with the new structure you need to give them a minimum of £90 a year through the quarterly fees.
    - for a low value account (e.g. £5-6k) that's a hike to the 1.5-2% range.
    - if you were a high value fund investor it is a reduction but such investors if they were fee sensitive would already be using someone else for their funds investing.
    - if you are holding mostly stocks, and not trading significantly, you won't find £90 of trades in the year to use the £90 of 'credit', especially if your buys are just the regular investing £1 a month fee, so the quarterly trading fees add up to unwelcome extra slug of money of perhaps £50-£90 a year that other providers (albeit less full-featured ones) may not charge

    I am still undecided about leaving my shares ISA there as it's not massive at the moment having bought a new property this year. My small unwrapped trading account which I run for neice/nephew has started the process to move to Youinvest (as I have my SIPP there, parent's ISAs etc). I have another unwrapped account where I like the functionality that TDD has offered over the years (extended settlement, lots of foreign markets, multicurrency cash accounts) so it may stay especially if my ISA does - but £90 is quite steep for a nominee broker if you are not actually doing any trading or making use of the things they offer over and above what other providers do.

    yes i see what you mean.

    for me personally i have my ISA and trading account there. I will stay with them since:
    - in my ISA my total fund value is over £100k and so the charges are actually welcome as i will see a large drop in annual total fees.
    - i make use of the USD account they offer in their trading account and dont see any other brokers offering this at least any reputable ones.

    My parents also have ISAs with TD (both with fund values around 100k each). I will be looking to open a SIPP for my dad with TD as well as from what i can see their new SIPP charges are, i think one of the cheapest (and i prefer the convenience of having it under one platform).
  • griffb
    griffb Posts: 168 Forumite
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    greenglide wrote: »
    I got an email from TD/II as part of my transfer informing me that I would need to request closure of the account when the transfer, it wouldn't be automatic.

    I got that email too, and it tallies with the advice on their website; but my broking and isa accounts have both been closed automatically following transfer to IG.
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    economic wrote: »
    I will be looking to open a SIPP for my dad with TD as well as from what i can see their new SIPP charges are, i think one of the cheapest (and i prefer the convenience of having it under one platform).
    bowlhead99 wrote:
    My small unwrapped trading account which I run for neice/nephew has started the process to move to Youinvest (as I have my SIPP there, parent's ISAs etc)

    bowlhead / economic....may I ask a question?

    You have both commented on accounts for parents (specifically) and I was wondering if you are 'managing' the account(s) on behalf of the parent(s), or not, and if you are have these been set up under an LPA or is it under local authorisation with said parent(s)?

    (feel free not to answer)

    The reason I ask is that:
    1. I manage my mothers finances
    2. She is still very compus mentis but a) we had a scare hence LPA and b) she prefers me to do the ground work :)
    3. Both my brother and I are attorneys (individual)
    My mothers investments are all shares and all paper certificates at present and which really need to be deposited in to a nominee account (as I really need to start mitigating CGT).

    If you have expended any time / effort with investment platforms and LPA I would welcome any feedback.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    cloud_dog wrote: »
    bowlhead / economic....may I ask a question?

    You have both commented on accounts for parents (specifically) and I was wondering if you are 'managing' the account(s) on behalf of the parent(s), or not, and if you are have these been set up under an LPA or is it under local authorisation with said parent(s)?

    I don't have PoA, just what you might call "local authorisation". Sorry if that doesn't help your situation.

    Basically my parents are in process of moving ISAs to same platform as I am on for one of my pensions. They had been with HL for a while but getting expensive with largish pots - and it's a hassle if every time I recommend how to deploy some new money or re-balance, I have to spell it out in baby steps so that Dad can log into each account in turn and book the transactions and email me the results of them etc.

    Youinvest's solution is to allow someone in the same family to act as "account lead" and grant them either view-only access or proper dealing access.

    https://www.youinvest.co.uk/faq/can-i-give-member-my-family-access-my-accounts
    So, each of them can sign the form and let me be "in charge" of what is still "their" account. And my having ability to execute transactions doesn't stop them adding money into the account or doing a withdrawal. Effectively I can access it to view or buy or sell but without having to share their password.

    In my earlier post I implied my parents ISAs were on my platform but that was just shorthand- it hasn't actually happened yet just in the pipeline.

    If you want full and total control as a power of attorney that's slightly different to her having her own account and you having view and dealing rights for it via a "lead account" status or similar - but if she is not "too far gone" it might be an ok solution for you.

    I haven't done a review of the market for a proper LPA/PoA account as I don't need to be able to do everything and Dad likes to look in on their accounts too from time to time rather than just relinquish everything to me.
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    Hi

    Thanks for the info.

    I'd done a quick Google for S&S ISA accounts with reference to LPA and the only hit I managed was IG and they were mandating that the attorney also held an account with them as well as the donor.

    I'll probably have to ring around the usual suspects to get a more comprehensive answer I suspect.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • C_Mababejive
    C_Mababejive Posts: 11,654 Forumite
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    Emailed TDW/II re account closure on transfer and they say i have to ring and close. Will keep a close eye.
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • frugalmacdugal
    frugalmacdugal Posts: 10,077 Forumite
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    Hi,

    as it happens I have an account with TDW and II, so suppose they will just merge.
  • smoulder
    smoulder Posts: 30 Forumite
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    IG have declared that they're replacing their inactivity charge with a £24 quarterly custody fee "from spring". Can be avoided by placing 3+ trades in the quarter. Makes it less appealing for "buy and hold" investors.

    I'm now mulling over Fidelity: ETF holding fee capped at £45/year, £10 per trade or £1.50 regular investment. No transfer out fees. AJ Bell have lower cap of £30 but charge transfer out fee of £25/holding. I would consider IWeb but I'm avoiding them just because they share their FSCS protection with Halifax Share Dealing/Lloyds Bank Direct Investments/Bank of Scotland Share Dealing.

    Also I was due a VWRL dividend today which (at the time of typing) IG have not credited to my account. I gather III had a reputation for slow paying of dividends in the past. Anyone received theirs?
  • JohnRo
    JohnRo Posts: 2,887 Forumite
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    IG paid my first dividend while I've been with them the day after it was due, available for immediate withdrawal.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
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