How do I get a stocks and shares ISA

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  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    jackdaw wrote:
    Hi cheerful cat - how do you find out the cheapest provider? is there a comparison site or something like that around.

    The funds have the same annual management charges with all fund supermarkets and wraps. However, the initial charge can vary.

    That being said, initial charges shouldnt be the only consideration. Where I have my personal ISAs/Unit Trusts, it isnt the cheapest on initial charge basis but doesnt charge a penny on fund switches (no initial charge, no bid/offer spread). So, over the years the lower servicing charges offset the higer initial charge.

    Also, some fund supermarkets/wraps offer discounts with higher values. Some don't allow regular withdrawals. Some have excellent service, some have poor.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jackdaw
    jackdaw Posts: 40 Forumite
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    Thanks, that's helpful, dunstonh. I'm learning a lot more now and have been browsing around..

    Which fund supermarkets do members recommend? (switching fees, initial charges, range, service, etc)
  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    Which fund supermarkets do members recommend? (switching fees, initial charges, range, service, etc)

    Depends. throughout the year I will place funds across the 4 major fund supermarkets as each has its pros and cons. There are some variations in fund availability which can push you into one choice only. If you want a regular income (now or in future), then can rule out one of the big providers. Another only does MAXIs and Collectives.

    As I said I have a preference for one provider which I use probably more than the others but they are not the cheapest, on initial contributions but they charge nothing on switching and have free annual portfolio rebalancing. Over time that makes them cheap if you want those services. Although they probably wouldnt be any use to you as you need an agency arrangement with them (which means you have to submit the business through an IFA). The companies that usually get quoted are bestinvest and hargreaves lansdown. The latter does seem to get a few posts commenting on poor service but there are also others that dont have any problems. Fidelity Fundsnetwork seem to be having a lot of admin problems recently although they have one of the strongest fund ranges and you have good access to REIT funds through them. Cofunds service is still not the best but improving in that you actually get to speak to someone. Skandia are often the cheapest due to their "first nation status". Although like Selestia (my own provider), they require business to placed via an IFA.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • cheerfulcat
    cheerfulcat Posts: 3,338 Forumite
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    jackdaw wrote:

    Which fund supermarkets do members recommend? (switching fees, initial charges, range, service, etc)

    Hargreaves Lansdown's service for funds is hard to beat on charges IMHO - not a fund supermarket, rather a broker, but they offer [ usually ] a full discount of the initial charge and partial rebate of the annual management charge. They have a very good range of funds. Service is normally pretty good but not uniformly so. They send out a very useful quarterly guide to funds and are not afraid of naming " dogs ".
  • jackdaw
    jackdaw Posts: 40 Forumite
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    Thanks. It is funny because after doing some research around them I had pretty much decided on hargreaveslansdown so I think that will be OK for me.

    By the way, when the financial world talks about "long term" investment in relation to funds, how long do they mean by that usually. 5 years? 10 years?
  • cheerfulcat
    cheerfulcat Posts: 3,338 Forumite
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    Long term implies 10+ years.
  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    Generally, most people have stopped saying 5 years and have moved towards 10 as a more sensible expectation.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jackdaw
    jackdaw Posts: 40 Forumite
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    I've picked out four funds with a range of areas + moderate risk and so the basic idea would be to be to put them in for 5-10+ years? They are funds I've read about which talk about that they are better for longer rather than shorter term.

    I don't think I would be confident with something that would require me to check the market, switch, etc. I'd rather something I can just leave for longer term growth. Does this sound ok - I haven't got it wrong or anything..
  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    4 funds is good with £4k. Hopefully you have chosen 4 totally different funds rather than 4 in the same area.

    With investment funds, you will always see them referring to long term and not short term. Thats just part of the compliance text you see.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • cheerfulcat
    cheerfulcat Posts: 3,338 Forumite
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    Hi, jackdaw,
    I've picked out four funds with a range of areas + moderate risk and so the basic idea would be to be to put them in for 5-10+ years?[...]I'd rather something I can just leave for longer term growth. Does this sound ok - I haven't got it wrong or anything..

    That sounds fine.
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