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  • FIRST POST
    • RomfordNavy
    • By RomfordNavy 5th Aug 18, 9:00 PM
    • 203Posts
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    RomfordNavy
    Which Broker for buying and holding some Investment trusts?
    • #1
    • 5th Aug 18, 9:00 PM
    Which Broker for buying and holding some Investment trusts? 5th Aug 18 at 9:00 PM
    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?
Page 1
    • Alexland
    • By Alexland 5th Aug 18, 9:07 PM
    • 3,847 Posts
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    Alexland
    • #2
    • 5th Aug 18, 9:07 PM
    • #2
    • 5th Aug 18, 9:07 PM
    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
    • By Davina40 5th Aug 18, 10:22 PM
    • 33 Posts
    • 6 Thanks
    Davina40
    • #3
    • 5th Aug 18, 10:22 PM
    • #3
    • 5th Aug 18, 10:22 PM
    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
    • By Thrugelmir 5th Aug 18, 10:27 PM
    • 61,351 Posts
    • 54,593 Thanks
    Thrugelmir
    • #4
    • 5th Aug 18, 10:27 PM
    • #4
    • 5th Aug 18, 10:27 PM
    Another vote for x-o. At 5.95p a trade, very cost effective.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • ColdIron
    • By ColdIron 5th Aug 18, 10:28 PM
    • 4,854 Posts
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    ColdIron
    • #5
    • 5th Aug 18, 10:28 PM
    • #5
    • 5th Aug 18, 10:28 PM
    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
    • By Audaxer 5th Aug 18, 11:09 PM
    • 1,495 Posts
    • 922 Thanks
    Audaxer
    • #6
    • 5th Aug 18, 11:09 PM
    • #6
    • 5th Aug 18, 11:09 PM
    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?
    Originally posted by RomfordNavy
    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
    • By londoninvestor 6th Aug 18, 11:18 AM
    • 497 Posts
    • 414 Thanks
    londoninvestor
    • #7
    • 6th Aug 18, 11:18 AM
    • #7
    • 6th Aug 18, 11:18 AM
    I think HL is a good option for long buy and hold as the platform costs are capped at 45 per annum for ITs.
    Originally posted by Audaxer
    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
    • By pafpcg 6th Aug 18, 1:40 PM
    • 302 Posts
    • 274 Thanks
    pafpcg
    • #8
    • 6th Aug 18, 1:40 PM
    • #8
    • 6th Aug 18, 1:40 PM
    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
    • By kidmugsy 6th Aug 18, 1:46 PM
    • 12,200 Posts
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    kidmugsy
    • #9
    • 6th Aug 18, 1:46 PM
    • #9
    • 6th Aug 18, 1:46 PM
    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
    • By ValiantSon 6th Aug 18, 2:59 PM
    • 2,536 Posts
    • 2,525 Thanks
    ValiantSon
    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.
    Originally posted by Audaxer
    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.

    The unwrapped account has no plaform charge at all for ITs or ETFs.
    Originally posted by londoninvestor
    There is no platform fee, but there is a trading fee of 11.95.
    Last edited by ValiantSon; 06-08-2018 at 3:04 PM.
    • pafpcg
    • By pafpcg 6th Aug 18, 5:18 PM
    • 302 Posts
    • 274 Thanks
    pafpcg
    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.
    Originally posted by kidmugsy
    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!
    • kidmugsy
    • By kidmugsy 6th Aug 18, 9:04 PM
    • 12,200 Posts
    • 8,643 Thanks
    kidmugsy
    But keep the certificates safe!
    Originally posted by pafpcg
    Our local bank branches used to offer safety deposits. Not now.
    Free the dunston one next time too.
    • RomfordNavy
    • By RomfordNavy 15th Aug 18, 8:37 PM
    • 203 Posts
    • 18 Thanks
    RomfordNavy
    Well I think it would be prudent to open two accounts, one for the ISA and one for non-ISA investments. Unless anyone suggests any reason not to I guess from the feedback here it is going to be iWeb and X-O, does it matter which one is the ISA and which not?

    Edit:
    Also a small 15k Stocks and Shares ISA with TDWaterhouse (now InteractiveInvestor), is that worth combining into one of the above accounts or is there any advantage in keeping this seperate say open an AJ Bell ISA account and move it there?
    Last edited by RomfordNavy; 15-08-2018 at 9:14 PM.
    • Alexland
    • By Alexland 15th Aug 18, 9:09 PM
    • 3,847 Posts
    • 3,151 Thanks
    Alexland
    Well I think it would be prudent to open two accounts, one for the ISA and one for non-ISA investments. Unless anyone suggests any reason not to I guess from the feedback here it is going to be iWeb and X-O, does it matter which one is the ISA and which not?
    Originally posted by RomfordNavy
    You never said which trusts you were buying. In particular some IT managers such as Baillie Gifford are particularly attractive for unwrapped non-ISA accounts.

    Alex.
    • darkidoe
    • By darkidoe 15th Aug 18, 10:55 PM
    • 973 Posts
    • 1,130 Thanks
    darkidoe
    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!
    Originally posted by pafpcg
    Interesting. Any disadvantages of investing via an Investment Trust Share Plan compared to with a broker? and what do you mean by certifying the holding? Getting a certificate as proof of holding? What does this function for?

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    • cashbackproblems
    • By cashbackproblems 16th Aug 18, 12:40 AM
    • 1,792 Posts
    • 699 Thanks
    cashbackproblems
    just a warning about XO, their website and CS is a joke, constantly disabling/locking my account and having to call them, never had this problem with HL/Vanguard etc

    and their service is extremely limited e.g. no dividend reinvest, having to each email time for withdrawals etc. Stick to HL
    • SCGoulette
    • By SCGoulette 16th Aug 18, 6:34 AM
    • 1 Posts
    • 0 Thanks
    SCGoulette
    Hey, I think it depends on which type investment.
    • jimjames
    • By jimjames 16th Aug 18, 1:36 PM
    • 12,873 Posts
    • 11,634 Thanks
    jimjames
    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.
    Originally posted by Alexland
    I'm with iWeb and find them great. Only caveat is that it depends which investments you are looking to buy as iWeb have restricted the list so some ITs can no longer be purchased on their platform. One of mine is affected (ICGT) but I'm assuming others will be too.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • pafpcg
    • By pafpcg 16th Aug 18, 3:06 PM
    • 302 Posts
    • 274 Thanks
    pafpcg
    JavisXO vs HL or IWeb
    just a warning about XO, their website and CS is a joke, constantly disabling/locking my account and having to call them, never had this problem with HL/Vanguard etc
    and their service is extremely limited e.g. no dividend reinvest, having to each email time for withdrawals etc. Stick to HL
    Originally posted by cashbackproblems
    Unless you want a joint account, stick to IWeb!
    It's cheaper and offers both automatic dividend reinvestment or distribution. (HL's automatic dividend distribution is in monthly batches.)
    • RomfordNavy
    • By RomfordNavy 16th Aug 18, 4:04 PM
    • 203 Posts
    • 18 Thanks
    RomfordNavy
    You never said which trusts you were buying. In particular some IT managers such as Baillie Gifford are particularly attractive for unwrapped non-ISA accounts.

    Alex.
    Originally posted by Alexland
    Don't really want to be limited to trusts from one Investment Manager, although Baillie Gifford do look good for direct investment I wouldn't want to be limited to investing in their funds only.
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