Advice needed on ISA transfer
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Dropping to monthly investing makes things cheaper at both platforms, but really drops the cost of HSD. It would then depend on how many full price trades would be needed (if any) as to whether that saving could be realised.foxreymann you get £85k of FSCS protection with S&S ISAs (although it won't cover genuine investment losses) from the 6th April so there is no need to spread this across multiple platforms.
You initial plan will incur at least £100 (0.5%) of iWeb trade fees (£5 X 20 weeks) and opening an account with Interactive Investor will be at least another £90 pa commitment. It's starting to look expensive.
Are you sure you wouldn't be better with a Halifax Share Dealing account at £12.50 fixed pa and making monthly scheduled trades at £2 each? Total £36.50 pa.
I agree the Halifax Share Dealing option is worth considering, but if weekly investing is non-negotiable, over 25 weeks for £25k invested, this would cost £262 at HSD (including 6 x £2 trades, and the rest full priced). The equivalent transactions at iWeb would come to £150. Opening fee/platform fee included.
The first year is likely to be an outlier (I would hope!) so it would be necessary to compare likely ongoing costs in future years to get a clearer picture. If this is a long term buy and hold strategy with infrequent trading in future years, then iWeb might still have the advantage, although Halifax would probably be cheaper than Interactive Investor as the second account - if needed.0 -
I agree the Halifax Share Dealing option is worth considering, but if weekly investing is non-negotiable, over 25 weeks for £25k invested, this would cost £262 at HSD (including 6 x £2 trades, and the rest full priced).
I am unsure it is possible to schedule a weekly trade on HSD. I have only ever done 4 trades in my SIPP and after moving another lump sum from my workplace pension this year will hopefully leave the account alone to grow for many years. I don't even login anymore as I can see the fund units alongside several of my other investments on the HL app for our LISAs. The quarterly fees are covered by a monthly DD into the SIPP so no need to even check the cash balance.
Anyway my point was that cost could be substantially reduced by moving to monthly contributions especially on a platform that had a suitable fee structure.
Alex0 -
Alexland, I've checked HSD. It is just more expensive version of iWeb, or the other way, iWeb is a cheaper version of HSD. I want to go weekly as I might be buying different fund/ETF/share every week. So the HSD's £2 regular investment plan won't work for me.
Masonic, Alexland, I realise that drip-feeding is expensive. It is just for the start when I'm learning. I might go bolder in the next months. I actually have more cash to invest, £200k + over £2k savings monthly from my active income (work). Lots of cash and stress for someone who has no clue about investing. I will explain everything in other post tomorrow.0 -
Just checked HSD and they seem to have 4 start days across each month where you can setup monthly scheduled £2 trades (maybe let them run once and cancel reoccurance). The investment options would be the same as iWeb runs on the Halifax platform anyway.
Most investors would consider a monthly approach to be drip feeding for the benefit of cost averaging so going weekly is a bit extreme.
Also for the investments are you sure it is wise to buy something different each week? Generally with investment taking a long term consistent approach is recommended. Unless you are unusually skilled picking individual shares is high risk and gives below market returns.
Have you considered just going with a sensible low cost multi asset fund such as Vanguard LifeStrategy which uses underlying trackers to get your fair share of market returns?
Alex0 -
While it's entirely understandable for a newbie investor to be cautious, I'd be wary of an expectation of learning as you go in any meaningful sense.foxreymann wrote: »I realise that drip-feeding is expensive. It is just for the start when I'm learning. I might go bolder in the next months.
IMHO it's far better to do your research up front, via posting and reading on here (not necessarily in that order!) and elsewhere, and then decide on a strategy and stick to it. Investing is a long term activity, so it would be misleading and potentially counterproductive to judge your initial investments (to the extent of considering changing them) based on their performance after, say, three or six months.
Drip-feeding can be used as a legitimate method of mitigating volatility by 'pound cost averaging', but this is typically less effective for those starting with a lump sum, where on average returns will be better by committing it all at the start rather than in dribs and drabs....0 -
Just checked HSD and they seem to have 4 start days across each month where you can setup monthly scheduled £2 trades (maybe let them run once and cancel reoccurance).
With Lloyds you can literally set up a one-off "regular" investment on a single date. (It's obviously not "regular" but you get the reduced rate by virtue of setting it up on one of their prescribed days so they can lump it in with the others.) So no need to go back and cancel it.
As it's the same underlying platform, perhaps you can do that on Halifax too?0 -
londoninvestor wrote: »As it's the same underlying platform, perhaps you can do that on Halifax too?
Just had a play and yes it lets you setup a one-off regular investment (so no need to cancel) but still only to trigger on a particular 4 days each month. I assume that would still be at the lower rate.
Alex0 -
Just had a play and yes it lets you setup a one-off regular investment (so no need to cancel) but still only to trigger on a particular 4 days each month. I assume that would still be at the lower rate.
Alex
Cool - yes that's what you get with Lloyd's too (and yes you do get the lower rate, the same as for recurring regular investments).0
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