Which Broker for buying and holding some Investment trusts?

RomfordNavy
RomfordNavy Posts: 683 Forumite
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in Savings & investments
Any suggestions which Broker would be a reasonable cost option in the long-term for buying and holding say half a dozen different Investment Trusts?
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  • Alexland
    Alexland Posts: 9,653 Forumite
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    It might depend which investment trusts and how frequently you intend to trade?

    Otherwise my default answer is iWeb or Jarvis X-O for buy and hold stock investing.

    Alex.
  • Davina40
    Davina40 Posts: 45 Forumite
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    Another recommendation for X-O. I've been with them years, they're very basic no bells and whistles but cheap and they get the job done.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Another vote for x-o. At £5.95p a trade, very cost effective.
  • ColdIron
    ColdIron Posts: 9,039 Forumite
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    ISA, SIPP or unwrapped? There are many low or no fee platforms to choose from. Avoid percentage fee providers for long term buy and hold

    http://monevator.com/compare-uk-cheapest-online-brokers/
  • Audaxer
    Audaxer Posts: 3,508 Forumite
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    RomfordNavy wrote: »
    Any suggestions which Broker would be a reasonable cost option in the long-term for buying and holding say half a dozen different Investment Trusts?
    If it's a significant amount of investment, I think HL is a good option for long buy and hold as the platform costs are capped at £45 per annum for ITs. It's said to have the best customer service, and expensive for buying and holding funds, but cheap for ITs.
  • londoninvestor
    londoninvestor Posts: 1,350 Forumite
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    Audaxer wrote: »
    I think HL is a good option for long buy and hold as the platform costs are capped at £45 per annum for ITs.

    That's in the ISA - 0.45% of the amount held, capped at £45pa.

    The SIPP is 0.45% again, but capped at £200pa.

    The unwrapped account has no plaform charge at all for ITs or ETFs.
  • pafpcg
    pafpcg Posts: 882 Forumite
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    We've been happy with IWeb for our IT holdings in ISAs (£5/trade with no platform charges other than £25 to open the account), but IWeb (and it's parent company Halifax Share Dealing) have a significant drawback for some: there's no option for joint share-dealing accounts. So my partner & I are still using our old SVS account (£7.95/trade with no platform charges www.svsxo.com/account-summary). Jarvis and HL also allow joint accounts (but the application process has to be done by post).

    Another issue which differentiates the brokers is the facility to automatically pay-out dividends to an external bank account or to re-invest:
    IWeb: automatic next-day distribution or reinvestment; alternatively, retain in account for manual investment or distribution
    SVS: no automatic facility - manual only
    Jarvis: automatic distribution but only quarterly, or manual
    HL: automatic distribution but only monthly, or manual
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    If you really want to buy and hold ITs for a long time why not look at their own share plans? Baillie Gifford do an absurdly cheap one - it's awfully hard to beat free - and memory says that Caledonian do a reasonably cheap one.
    Free the dunston one next time too.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    edited 6 August 2018 at 3:04PM
    Audaxer wrote: »
    If it's a significant amount of investment, I think HL is a good option for long buy and hold as the platform costs are capped at £45 per annum for ITs. It's said to have the best customer service, and expensive for buying and holding funds, but cheap for ITs.

    Yes, capped at £45 p.a., but X-O is a one-off cost of £5.95 and iWeb is a one-off cost of £5, so they are way cheaper than HL.
    londoninvestor wrote: »
    The unwrapped account has no plaform charge at all for ITs or ETFs.

    There is no platform fee, but there is a trading fee of £11.95.
  • pafpcg
    pafpcg Posts: 882 Forumite
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    kidmugsy wrote: »
    If you really want to buy and hold ITs for a long time why not look at their own share plans? Baillie Gifford do an absurdly cheap one - it's awfully hard to beat free - and memory says that Caledonian do a reasonably cheap one.
    I'll agree the Baillie Gifford plan is good but it's a dying breed. Purely by coincidence I made a posting yesterday on my experience over 25 years with buying direct from IT managers' share plans: https://forums.moneysavingexpert.com/showthread.php?t=5877671

    For a really long-term hold, consider certificating the holding. That way you get the dividends on the date of distribution paid direct into the bank account of your choice, you get the annual report and a vote at AGMs, and there'll never be any platform charges. Certificating the holding bought at an execution-only broker usually costs £25/holding (SVS charge only £15); amazingly, Baillie Gifford charge nothing for the trusts they manage (Scottish Mortgage, Monks, Scottish American, ...). To sell, just transfer the certificates back to a broker (at no charge).
    But keep the certificates safe!
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