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  • FIRST POST
    • stphnstevey
    • By stphnstevey 25th Feb 18, 1:46 PM
    • 2,790Posts
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    stphnstevey
    Low Cost Broker
    • #1
    • 25th Feb 18, 1:46 PM
    Low Cost Broker 25th Feb 18 at 1:46 PM
    I have been looking into costs, particularly % fee brokers vs fixed fee brokers

    I am looking for multiple purposes:

    - S&S ISA
    - Non ISA Trading account
    - SIPP
    - Pension Administrator/Trading Account (eg for a SSAS)
    - Company

    I have looked on LemonFool and here monevator.com/compare-the-brokers/

    I have a H&L account and back when they restructured their fees, I made a complaint (prompted by the success of many on the MSE board) and they agreed to reduce the annual fee to 0.25% on upto 1M. This then seems to match the lowest % fee brokers I can find

    It seems iWeb might have the lowest fixed fee at 25 one off setup and 5 per trade

    With a fixed fee broker I am not sure how many trades I should estimate making? For 2 trades (assuming a buy and sell) is 2x5=10 with iWeb (ignoring setup) which is what I would pay on a portfolio of 4000 at H&L (4000x0.25%=10)
    Iweb for me seems to generally the cheapest at 25 to open and then 5 a trade

    I have also looked at some other slightly less mainstream options:

    - Degiro - around 2 trading costs for shares

    - Trading 212 - similar costs to Degiro, but 10x free trades per month of up to 10k each trade (which would be enough for me)

    - Plus 500 - no trading fees, seems to some how make money from the spread and deposit/withdrawal fees

    How do any of these sound or have you used any?
    Are there others I should consider? Where do you do yours?
Page 1
    • ValiantSon
    • By ValiantSon 25th Feb 18, 1:51 PM
    • 1,867 Posts
    • 1,725 Thanks
    ValiantSon
    • #2
    • 25th Feb 18, 1:51 PM
    • #2
    • 25th Feb 18, 1:51 PM
    I'm not exactly sure what it is you are asking.

    If you have managed to get HL to reduce your annual fee to 0.25% then that's pretty good.

    Fixed fee brokers are normally better for larger portfolios. iWeb are one of the cheapest available, as long as they have the funds you want to trade in, and you won't trade a lot.
    • stphnstevey
    • By stphnstevey 4th Mar 18, 7:22 AM
    • 2,790 Posts
    • 458 Thanks
    stphnstevey
    • #3
    • 4th Mar 18, 7:22 AM
    • #3
    • 4th Mar 18, 7:22 AM
    I have looked at REGULAR INVESTMENT options due to the low cost. I realize selling incurs the normal trading cost, so have bared that in mind. I hope to hold for a long period with little selling and when I do sell, sell in large amounts to limit the trading cost

    Some Regular investment sites restrict what you can invest in to, particularly I discounted H&L RI due to this.

    I also looked for accounts with NO ANNUAL FEE. As I plan to hold for a long period, I just want to pay for trading costs and not an additional annual fee. I realize some annual fees incorporate trading costs, but generally I found those who just charged for trading with no ongoing costs were cheaper for me.

    I assumed a trading cost of 10 trades per 50k invested. Obviously other assumptions would produce different results. Where there was a different cost to trade funds vs shares, I evaluated both options. I haven't as yet decided if I want to hold funds or shares (likely ETFs)


    Looking at TRADING accounts, iii seemed good with 1 regular investing but had a 90/yr fee. Halifax had 2 RI and no annual fee. Halifax is obviously a major bank and I am more happy to hold investments with them.

    For an ISA, again iii has 1 RI but 90/yr fee. Halifax 2 RI and 12.50/yr fee. x-o.co.uk had no RI and therefore a higher trading cost at 5.95/trade but then I was not reliant on RI and selling costs were the same as purchase costs. x-o.co.uk had no annual fee.

    For a SIPP, iii annual fee appeared to be (120+90) 220, Halifax 180 (for 50k+) and x-o.co.uk refunds any annual fee (with trading account). RI could be used for both iii and Halifax to reduce trading cost, but x-o.co.uk effectively has no annual fee.

    For a LISA, as I wanted to invest in the stock market, it was a choice of H&L or AJ Bell for me. Other stock market options seemed too high cost. I was looking at investing the full 4k/yr and just one trade/yr. AJB RI is 1.50 trading and 0.25%/yr with a 30 cap on share costs, which as the balance increase, makes shares much cheaper than even funds. H&L RI is also 1.50 but has a very restrictive list. H&L % cost will also be higher for most.


    What protection is there for S&S accounts? It appears securities are protected at a lower amount than a bank account?

    I am wary of having large amounts on x-o.co.uk and would prefer Halifax, but for the ISA and SIPP x-o.co.uk seems a good deal
    • Alexland
    • By Alexland 4th Mar 18, 7:57 AM
    • 2,388 Posts
    • 1,790 Thanks
    Alexland
    • #4
    • 4th Mar 18, 7:57 AM
    • #4
    • 4th Mar 18, 7:57 AM
    On the LISA - yes AJ Bell are likely to be your best option for lump sum trades of 4k and 1k bonuses. After a few years when the balance is high enough it makes sense to move across from funds to Shares, ETFs or ITs for capped fees. I avoid AJ Bell on the LISA as they also have a role in administering my Halifax SD SIPP.

    On the Halifax SD SIPP as the 180 is entirely deducted from the account it's only 144 per year. So I just add 12 per month via DD. With II only the 120 is deducted from within the account costing 100 and you have to pay the full 90. It depends what you want to invest in as Jarvis X-O don't offer funds.

    On the ISA and GIA you have lots of options again it very much depends on what you want to invest in? My preference is to invest directly with the fund manager which can sometimes be cheaper.

    On the FSCS protection - the limit on uninsured investment products is 50k per financial institution. Obviously this doesn't cover normal investment losses. I go over this limit with some reputable institutions however we do spread our money around as much as practically possible even if it costs a bit more in fees.

    Alex
    Last edited by Alexland; 04-03-2018 at 9:07 AM.
    • ValiantSon
    • By ValiantSon 4th Mar 18, 11:55 AM
    • 1,867 Posts
    • 1,725 Thanks
    ValiantSon
    • #5
    • 4th Mar 18, 11:55 AM
    • #5
    • 4th Mar 18, 11:55 AM
    I think you need to make some clearer decisions about what you actually want to invest in. Once you know where your investments will be (which funds, if any; shares; ETFs; ITs) then you can make more informed decisions about the platform to hold them with.

    Of your various options so far, the LISA is the only one where we can give helpful comments. In your particular situation, where you would have two trades per year (4,000 investment and 1,000 bonus), AJ Bell would almost certainly be the cheaper option, although some funds on HL are significantly cheaper than on AJ Bell, so again you should still make a decision on the type of investment before committing to the platform.
    • Alexland
    • By Alexland 4th Mar 18, 1:04 PM
    • 2,388 Posts
    • 1,790 Thanks
    Alexland
    • #6
    • 4th Mar 18, 1:04 PM
    • #6
    • 4th Mar 18, 1:04 PM
    Actually, fixed loans are somewhere reliable because you can plan that how you can manage while returning it. % particularly loans, you are not sure that how much you will have to pay next month and that will make trouble for you.
    Originally posted by ElenePikkarainen
    Did you mean to post this message on another thread?
    • Ilona
    • By Ilona 4th Mar 18, 1:45 PM
    • 2,064 Posts
    • 7,092 Thanks
    Ilona
    • #7
    • 4th Mar 18, 1:45 PM
    • #7
    • 4th Mar 18, 1:45 PM
    Actually, fixed loans are somewhere reliable because you can plan that how you can manage while returning it. % particularly loans, you are not sure that how much you will have to pay next month and that will make trouble for you.
    Originally posted by ElenePikkarainen
    EP has posted five times in quick succession, and none of them make much sense. Not sure why they have posted, they are in the USA.

    Ilona
    I love skip diving
    • stphnstevey
    • By stphnstevey 4th Mar 18, 3:00 PM
    • 2,790 Posts
    • 458 Thanks
    stphnstevey
    • #8
    • 4th Mar 18, 3:00 PM
    • #8
    • 4th Mar 18, 3:00 PM
    I think you need to make some clearer decisions about what you actually want to invest in. Once you know where your investments will be (which funds, if any; shares; ETFs; ITs) then you can make more informed decisions about the platform to hold them with.

    Of your various options so far, the LISA is the only one where we can give helpful comments. In your particular situation, where you would have two trades per year (4,000 investment and 1,000 bonus), AJ Bell would almost certainly be the cheaper option, although some funds on HL are significantly cheaper than on AJ Bell, so again you should still make a decision on the type of investment before committing to the platform.
    Originally posted by ValiantSon
    Yes, I think your right and maybe doing AAF

    Looking at funds and ETFs now
    • stphnstevey
    • By stphnstevey 12th Mar 18, 2:29 PM
    • 2,790 Posts
    • 458 Thanks
    stphnstevey
    • #9
    • 12th Mar 18, 2:29 PM
    • #9
    • 12th Mar 18, 2:29 PM
    I was looking purchasing ETFs

    I see there currency transaction costs with each broker.

    I presume it is best to buy the sterling version? Is there always a sterling version?

    If the assets the ETF buys are in another currency, does the ETF make a hidden charge to exchange that back to sterling when buying and selling the sterling version? If so, does that translate into lower performance?

    Thanks
    • coastline
    • By coastline 12th Mar 18, 3:11 PM
    • 940 Posts
    • 1,083 Thanks
    coastline
    I was looking purchasing ETFs

    I see there currency transaction costs with each broker.

    I presume it is best to buy the sterling version? Is there always a sterling version?

    If the assets the ETF buys are in another currency, does the ETF make a hidden charge to exchange that back to sterling when buying and selling the sterling version? If so, does that translate into lower performance?

    Thanks
    Originally posted by stphnstevey
    I'm not sure but I normally buy the sterling version..a useful link below..

    https://www.justetf.com/uk/

    Looking at the best broker it depends how often you are dealing in a year. Just because a deal is around 5 doesn't always mean they are obtaining the best price as they might only use a few market makers. ? The links below show they try to obtain a decent quote by using 20-30 market makers..


    https://www.halifax.co.uk/sharedealing/getting-started/how-to-buy-shares/price-polling/

    http://www.hl.co.uk/news/investment-times/2014/11/the-right-tools-for-the-job

    https://www.smartinvestor.barclays.co.uk/invest/investments/barclays-price-improver.html

    Look at post 12 on here. No idea if this is accurate but you'll need a price improver if you are dealing on a regular basis.
    If your chosen platform can't give you decent information on this subject then it looks like its worth making an enquiry.

    http://moneyforums.citywire.co.uk/yaf_postst3868_Stockbrokers.aspx
    Last edited by coastline; 13-03-2018 at 10:55 AM.
    • bowlhead99
    • By bowlhead99 12th Mar 18, 3:32 PM
    • 7,833 Posts
    • 14,306 Thanks
    bowlhead99
    I was looking purchasing ETFs

    I see there currency transaction costs with each broker.

    I presume it is best to buy the sterling version?
    Originally posted by stphnstevey
    Generally yes. The ETF manager is looking after millions of pounds/dollars so can exchange the currency to buy whatever underlying assets he wants, at relatively low cost. Your broker is just dealing there and then with your trade size of 1000 or whatever and while you'll get better than tourist rates it will generally be no where near as competitive as what the fund could get for themselves if you just gave them the sterling.

    there always a sterling version?
    Unfortunately no. Depends if there's enough demand for alternative currencies for the ETF manager to bother creating one to be able to sell to more customers. Generally the more niche the fund, the fewer currencies and listing venues it'll be available in, because people that really really want it will just take what they're offered

    If the assets the ETF buys are in another currency, does the ETF make a hidden charge to exchange that back to sterling when buying and selling the sterling version?
    It would be unlikely in this day and age for the fund manager to syphon off money for himself as a hidden charge and blame it on currency.

    But when the fund manager goes to buy assets in the market (e.g. Tesco and Samsung and Microsoft and Nestle in a world index) he will face the same thing that you do when you go to your own broker and ask about buying into a dollar ETF; i.e. the fund's stockbroker/custodian will want Pounds and Won and Dollars and Francs to settle all the trades, or will charge a commission for getting them himself. If the fund manager doesn't have those currencies, or the right proportion of currencies (eg he has a lot of Swiss Francs and euro and dollars and pounds from recently issuing new shares, but no Korean Won), he will have to buy some at market rates including commission.

    When he buys an underlying share in (eg) Samsung in Won but he does his accounting in dollars, he will record the price he paid in dollars, which will include all the costs of acquiring the share, including currency commissions. By the end of the year the share might be valued at $100,000 having only been acquired for $90,000 (inc FX conversion and broker costs to buy). So, a $10,000 gain. Of course, it would have been a $10002 gain if he had been able to avoid paying the currency exchange commission on buying $90,000 worth of Won because he had some in the bank from a previous sale of Korean shares. Then he could have bought them for $89998 equivalent instead of spending $90,000. But he didn't so you only see the $10,000 reported profit, because that was the profit. The fx charge is "hidden".

    If so, does that translate into lower performance?
    Lower performance than if he could somehow have been able to buy all the different currencies he needs, for free. But generally the FX trades done by the fund to buy dollars and other currencies with the GBP you give them on a GBP share class, are lower priced overall than the total cost if you had bought dollars yourself via your broker at a high cost and then given them the dollars and they still had to buy all the euro and francs and won and rmb that they want anyway.

    You can of course compare the performances between funds and ETFs and between those funds and ETFs and a benchmark index, to see what if anything is "hidden". Any deviation from the index it should be tracking is a combination of either "tracking error" or genuine costs. The costs might be either explicit (management fee, admin cost forecast) or implicit (trading costs such as broker and FX commissions etc) and if they are implicit you'll only find guesstimates. If you look at the bottom line you'll see the actual results, even if the costs aren't broken or very well. With something like an index tracker it is much easier to work out the implicit internal charges because you can see from the published index direct from FTSE or MSCI etc, what you'd have got off the index if there had been no charges at all.
    Last edited by bowlhead99; 12-03-2018 at 8:50 PM.
    • stphnstevey
    • By stphnstevey 12th Mar 18, 9:21 PM
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    stphnstevey
    Has anyone any experience with X-O?

    I like their SIPP as it doesn't have an annual charge (refunded by Jarvis). Elsewhere looks like around 200/yr

    They dont offer any RS dealing discount, like Halifax or iii, but the average trading fee (average of purchase and sale trading fee) is about the same. I will likely make annual contributions and then into one or two ETFs, so only about 1-2 trades a year, which will hopefully make it an extremely cheap SIPP. I will most likely wait for the tax rebate to be added before investing

    Can you pay the fees with cash outside the SIPP, without it being classed as a contribution? (H&L let you pay the fees from other non SIPP accounts) When they refund the fees, does that go back into your SIPP account (just I am thinking about the cost of reinvesting that)?

    I have not used a fee based broker before, do people guess the amount of their trades and leave enough in to cover that? Presume there is some cash drag?

    Looking into Jarvis, the parent company is AIM listed and the x-o management company seems highly profitable from the accounts

    Speaking with Gaudi about small queries, they picked up the phone quickly, were very knowledgeable and were able to answer my queries


    A little bit different, as I have a SSAS as well, I did look at dealing accounts that allowed them, such as AJ Bell and iii. But both now require a LEI, which would add costs of applying 115 + VAT (140) with annual renewal fees of 70 + VAT (84). As I can do the same in a SIPP, with potentially no annual fee with x-o, the SIPP seemed less expensive

    I would like a dealing account for a Ltd Company, but that also seems to require a LEI and same costs. Anyone anything cheaper for a Company?
    • bowlhead99
    • By bowlhead99 12th Mar 18, 11:06 PM
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    bowlhead99
    Can you pay the fees with cash outside the SIPP, without it being classed as a contribution? (H&L let you pay the fees from other non SIPP accounts) When they refund the fees, does that go back into your SIPP account (just I am thinking about the cost of reinvesting that)?
    Originally posted by stphnstevey
    Just in case you haven't thought this through, you realise that 10 of fees paid with your SIPP money only costs you a net amount of 8 or 6 or 5.50 or 4 or whatever, depending on your exact marginal rate of tax relief, while if you pay it with cash out of your pocket it will literally cost you the full 10?

    Being able to fund the charge from somewhere *other* than the SIPP (i.e. paying for it with fully taxed money so it costs you the full 10 net of income taxes - or the equivalent of a fair bit more than that, gross...), is a choice that would only be rationally made by someone who wanted to fully max out their current year pension amount into investments (lower of earnings and [40k or more depending on prior year carryforward]) and therefore didn't have any capacity to put a few pounds of extra money into the SIPP account to get tax relief and then pay the fee with the tax-relieved money.

    Obviously you mention you have a SSAS so probably not a complete pensions newbie or a relative pauper but if you are absolutely maxing your contributions threshold you will be in a tiny minority of site users here.
    I have not used a fee based broker before, do people guess the amount of their trades and leave enough in to cover that? Presume there is some cash drag?
    You need to be able to pay fees when they become due. For transactions fees it's not a problem because you know when buying the investment what the investment plus its associated transaction fees is going to cost. But yes if they charge your account periodically with an admin fee, custody fee, sipp service fee, whatever they call it, you will need cash on hand in the account to cover it. How did you pay fees at other brokers? Most would have an ongoing fee of some sort.

    Anyway the short answer is from what you were saying further up your post, you are going to have a very cheap SIPP with <20 of transaction fees and a 100 SIPP service fee that's going to be refunded anyway. So even if you had 100 sitting around all year idle in the account, the missed income on 100 is not much of a drag on your IRR of a portfolio valued in the tens or hundreds of thousands of pounds. Say you are losing 10% of missed profit on the 100 over an entire year - it's only a tenner, and you've identified that there aren't any other SIPPs that come within 10 of the operating costs of this one.

    I would like a dealing account for a Ltd Company, but that also seems to require a LEI and same costs. Anyone anything cheaper for a Company?
    If you're establishing a relationship between a company you own (or a SSAS for which you're trustee of the scheme) and a broker, you are going to need an LEI, as that's how they record which entity they are transacting with for the purpose of regulatory compliance. Prior to this year you only needed to get yourself an LEI to support the reporting of certain derivatives trading which most small businesses were not engaging in anyway. But under the new rules and regs you'll struggle to avoid it.
    • stphnstevey
    • By stphnstevey 15th Mar 18, 3:06 PM
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    stphnstevey
    I have a H&L SIPP which I have kept open with the minimum 1000, kept in cash so as not to incur a fee, as it enabled me to retain the reduced 0.25% fee I had negotiated

    I am going to be using an X-O SIPP as I found it the cheapest for what I want to do, with no annual charge

    The H&L 1k money is sat there gaining 0.05% interest and being eroded by inflation...

    My options seem to be:
    1) Close the SIPP, pay a 30 fee, lose the reduced 0.25% fee
    2) Put it in a tracker fund, pay the 2.50 annual H&L fee, and hope the investment increase more than 0.25% H&L fee and 0.7% tracker fund fee (so more than 1% a year)

    As the 30 fee is 3 years of the tracker fund fee and H&L management charge, (2) seems the better option

    Can anyone check my logic?

    Can I sell down the fund to pay fees with H&L or do I need to keep some aside? How often is the fee charged?
    • stphnstevey
    • By stphnstevey 19th Mar 18, 1:19 PM
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    • 458 Thanks
    stphnstevey
    I am encountering TRANSACTION FEES from some brokers in the quote of the cost, which is not included with other brokers - is this a charge for a fund/ETF specific to that platform?

    I am looking to buy GBP versions of ETFs, but I am still quoted a FX fee - how does that work?
    • grey gym sock
    • By grey gym sock 19th Mar 18, 4:00 PM
    • 4,333 Posts
    • 3,864 Thanks
    grey gym sock
    I am encountering TRANSACTION FEES from some brokers in the quote of the cost, which is not included with other brokers - is this a charge for a fund/ETF specific to that platform?
    Originally posted by stphnstevey
    this might refer to the internal transaction costs incurred by the ETF. brokers have a new obligation to (attempt to) pass on this info to investors.

    if that's what it is, then the internals costs are the same regardless of what platform you use. so any difference between brokers can be ignored.

    (and, whilst internal transaction costs are real, the methodology being used to report them has serious issues, so i wouldn't necessarily believe the figures, when you are provided with them.)

    I am looking to buy GBP versions of ETFs, but I am still quoted a FX fee - how does that work?
    i'm not sure.

    providing you have a GBP line of an ETF (and are buying using GBP), there won't be FX costs on purchase/sale.

    this could be about internal costs again?

    some ETFs do pay dividends in USD or EUR, even when you hold the GBP line, so there can be FX costs to convert dividends back to GBP. it could be about that?
    • stphnstevey
    • By stphnstevey 19th Mar 18, 4:06 PM
    • 2,790 Posts
    • 458 Thanks
    stphnstevey
    this might refer to the internal transaction costs incurred by the ETF. brokers have a new obligation to (attempt to) pass on this info to investors.

    if that's what it is, then the internals costs are the same regardless of what platform you use. so any difference between brokers can be ignored.

    (and, whilst internal transaction costs are real, the methodology being used to report them has serious issues, so i wouldn't necessarily believe the figures, when you are provided with them.)



    i'm not sure.

    providing you have a GBP line of an ETF (and are buying using GBP), there won't be FX costs on purchase/sale.

    this could be about internal costs again?

    some ETFs do pay dividends in USD or EUR, even when you hold the GBP line, so there can be FX costs to convert dividends back to GBP. it could be about that?
    Originally posted by grey gym sock
    Thanks, this was on Youinvest (AJ Bell) in their quote on costs - I will email the and see if these are actually charged or just a representation
    • bowlhead99
    • By bowlhead99 19th Mar 18, 4:47 PM
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    bowlhead99
    AJ Bell like every other broker will charge you a transaction fee to buy a share of the ETF on the stock exchange because nobody (whether HL, X-O or AJBell) will place your order into a busy real-time market and settle it for free. They would usually be quoted at x per trade but can sometimes by percentage based if you are doing massive trades or old-school telephone dealing.

    The fund itself will of course incur some transaction costs when it buys the underlying companies every time the index or model portfolio that it's following adds a new holding or kicks one out. Those are quoted in percentage terms as an extra estimated ongoing running costs (it was rare to quote them at all before change of regulations earlier this year) and as GGS mentions above, the estimations can be quite flawed.

    On the FX side whether the broker charges you an FX fee depends on whether you're buying a share priced in, or receiving a different currency from, what your cash account is. Usually if you ask the broker what his costs will be, FX transactions are mentioned for completeness because he doesn't really know what you're going to buy. It's true that some US or global ETFs will pay their divs in dollars even if the market for that class is priced in pounds.
    Last edited by bowlhead99; 19-03-2018 at 4:52 PM.
    • stphnstevey
    • By stphnstevey 19th Mar 18, 7:36 PM
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    stphnstevey
    AJ Bell like every other broker will charge you a transaction fee to buy a share of the ETF on the stock exchange because nobody (whether HL, X-O or AJBell) will place your order into a busy real-time market and settle it for free. They would usually be quoted at x per trade but can sometimes by percentage based if you are doing massive trades or old-school telephone dealing.

    The fund itself will of course incur some transaction costs when it buys the underlying companies every time the index or model portfolio that it's following adds a new holding or kicks one out. Those are quoted in percentage terms as an extra estimated ongoing running costs (it was rare to quote them at all before change of regulations earlier this year) and as GGS mentions above, the estimations can be quite flawed.

    On the FX side whether the broker charges you an FX fee depends on whether you're buying a share priced in, or receiving a different currency from, what your cash account is. Usually if you ask the broker what his costs will be, FX transactions are mentioned for completeness because he doesn't really know what you're going to buy. It's true that some US or global ETFs will pay their divs in dollars even if the market for that class is priced in pounds.
    Originally posted by bowlhead99
    Yes I realize there is a broker dealing charge and also a fund/ETF running cost

    But there appears to be a TRANSACTION CHARGE as well as a FX charge

    I had to go through them all again, so its taken me a while

    1) Transaction Costs/fees

    - Shown on Youinvest and H&L.
    - H&L define these as "The explicit cost the manager incurs whilst dealing......".
    - Adds 0.1-0.2% to effectively the OCF - not too much of a problem, but should be in OCF
    - Examples:
    HSBC AMERICAN INDEX CLASS C - ACCUMULATION
    (http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-american-index-class-c-accumulation/costs)
    FIDELITY INDEX US CLASS P - ACCUMULATION
    (http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/f/fidelity-index-us-class-p-accumulation/costs)
    SWDA (http://www.hl.co.uk/shares/shares-search-results/i/ishares-iii-plc-core-msci-world-acc/costs)

    2) FX charge

    - Shown on Youinvest when go to deal and review charges
    - 1% - enough to consider holding funds instead
    - Examples:
    CSP1, VUSA, HMWO

    But not on IUSA, SWDA
    • grey gym sock
    • By grey gym sock 19th Mar 18, 11:00 PM
    • 4,333 Posts
    • 3,864 Thanks
    grey gym sock
    1) Transaction Costs/fees

    - Shown on Youinvest and H&L.
    - H&L define these as "The explicit cost the manager incurs whilst dealing......".
    - Adds 0.1-0.2% to effectively the OCF - not too much of a problem, but should be in OCF
    Originally posted by stphnstevey
    well, OCF has always been defined to exclude transaction costs. could be confusing to redefine it now.

    2) FX charge

    - Shown on Youinvest when go to deal and review charges
    - 1% - enough to consider holding funds instead
    - Examples:
    CSP1, VUSA, HMWO

    But not on IUSA, SWDA
    i have a youinvest account, and just logged in to look at this, and i think it's an error in youinvest's info.

    they would charge 1% for FX each time you buy (or sell) a share that is traded in a currency other than GBP. but those tickers are all for the GBP lines of the ETFs. so FX shouldn't come into it.

    (they are ETFs which also have a USD line. which might be where the error comes from. but then IUSA and SWDA have USD lines, too.)
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Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

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