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  • FIRST POST
    • RomfordNavy
    • By RomfordNavy 5th Aug 18, 9:00 PM
    • 182Posts
    • 15Thanks
    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 4
    • londoninvestor
    • By londoninvestor 15th Sep 18, 6:02 PM
    • 414 Posts
    • 336 Thanks
    londoninvestor
    I thought HL did pay a small interest on cash holdings?
    Originally posted by StellaN
    They do. I think boston's point is that HL don't charge a platform fee on cash holdings, whereas Vanguard do (here: "We calculate the account fee on the overall value of your Vanguard account, including any cash held.")
    • george4064
    • By george4064 15th Sep 18, 6:20 PM
    • 1,044 Posts
    • 1,084 Thanks
    george4064
    I use AJ Bell YouInvest and very happy with the service alongside competitive fees. Would recommend.
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £12,427.51/£12,000 (104%)
    Save £12k in 2018 - #004 £5,529/£12,000 (46%)
    • talexuser
    • By talexuser 15th Sep 18, 10:47 PM
    • 2,499 Posts
    • 1,988 Thanks
    talexuser
    Bell are competitive for shares and etfs, but for larger amounts in funds they are only middle of the road with more than half dozen platforms considerably cheaper. Their re registration charges are also amongst the highest.
    • RomfordNavy
    • By RomfordNavy 16th Sep 18, 11:50 AM
    • 182 Posts
    • 15 Thanks
    RomfordNavy
    In black and white here: "Dividend reinvestment purchases are charged per reinvestment at a flat rate of 2% based on the value of the dividend (maximum £5)".

    So it's actually a little more favourable than the £5 per trade they told you. Some trades (namely small dividend reinvestments) cost less than that.
    Originally posted by londoninvestor
    Well this could get interesting, looks like they have been lying to me. I have a recording of their phone call where they confirmed that the only charges are the £25 opening fee and the £5 per trade transaction fee, they even called me to confirm that I understood the charges which would apply! That page you linked to suggests ISA transfer fees as well which they failed to mention. I can see this becoming a complaint to the FOS if they try and apply any of those charges.
    • talexuser
    • By talexuser 16th Sep 18, 12:34 PM
    • 2,499 Posts
    • 1,988 Thanks
    talexuser
    I think you should calm down a little. ISA transfer fees are when you leave them and transfer out to another platform so not an ongoing expense. With iWeb they are at least capped at £125 max, many platforms have higher transfer out charges once you have a few funds, those that do not charge on the way out have far more in custody charges or limited choice in funds.
    • bowlhead99
    • By bowlhead99 16th Sep 18, 12:38 PM
    • 8,292 Posts
    • 15,175 Thanks
    bowlhead99
    reinvestment at a flat rate of 2% based on the value of the dividend (maximum £5)".

    So it's actually a little more favourable than the £5 per trade they told you. Some trades (namely small dividend reinvestments) cost less than that
    Well this could get interesting, looks like they have been lying to me. I have a recording of their phone call where they confirmed that the only charges are the £25 opening fee and the £5 per trade transaction fee, they even called me to confirm that I understood the charges which would apply! That page you linked to suggests ISA transfer fees as well which they failed to mention. I can see this becoming a complaint to the FOS if they try and apply any of those charges.
    Originally posted by RomfordNavy
    Originally posted by londoninvestor
    What are you on!?

    If you would like, you can automatically reinvest dividends that arrive in the account at a MAXIMUM cost of £5, but it will be less than £5 in many cases as it is a percentage based sliding scale which tops out at the same price as an ad hoc purchase transaction.

    If they told you that it would cost you £5 for every purchase of shares but neglected to tell you that actually if you have money arriving in your account resulting from dividend income, they will grant you the ability to purchase new shares, if you wish, on an automatic basis for LESS than the standard £5 for normal share purchases that you had agreed to...

    ... then to decry them as liars and threaten to instigate a complaint with the ombudsman is bonkers.

    - It costs £5 to buy shares.

    - If you have incoming dividend income which is sufficient to buy new shares in the same company, they will let you participate in a special program to reinvest that incoming money for LESS than £5.

    If they forget to tell you about that special offer (which won't be relevant to many people, self included, who don't reinvest incoming dividends back into the exact same company the same time they arrive) and so you think it is going to cost you the full £5; and then you read more about their services and discover they have a better deal so it will be only (say) £2 on a £100 transaction instead of £5. The natural reaction shouldn't be to say, "I will contact the FOS if they try to charge me £2, because I understood that any share purchase should be £5".
    • redux
    • By redux 16th Sep 18, 1:55 PM
    • 18,637 Posts
    • 24,893 Thanks
    redux
    A recent direct example to confirm iWeb charges for dividend reinvestment:

    74 @1.0616 = 78.56, broker charge 1.57, stamp duty 0.39

    That could be a marginally cheaper £1 charge at HL, but the other quarterly dividends are lower, so only about 50p charge at iWeb. On the other hand I have some holdings at HL which earn them about £4.50 a year, which would be £9 at iWeb.

    As I suggested, it's splitting hairs over a few pence or couple of quid at this level, but for someone with 15 or 20 significant holdings and reinvesting dividends it will be worth considering different platform's charges, might be worth £100 to £300 or more a year.
    Last edited by redux; 16-09-2018 at 4:58 PM.
    • RomfordNavy
    • By RomfordNavy 21st Sep 18, 11:29 AM
    • 182 Posts
    • 15 Thanks
    RomfordNavy
    That link looks like it is about the ISA, it mentions a management charges of £32.50+VAT. There is also the vague paragraph:
    Originally posted by RomfordNavy
    Does anyone know whether the Baillie Gifford Management charge applies to the (non-ISA) Share Plan or just the ISA? It is not clear from their webpage and I can't find any more clarity in any of their other documents..
    • bowlhead99
    • By bowlhead99 21st Sep 18, 11:47 AM
    • 8,292 Posts
    • 15,175 Thanks
    bowlhead99
    Does anyone know whether the Baillie Gifford Management charge applies to the (non-ISA) Share Plan or just the ISA? It is not clear from their webpage and I can't find any more clarity in any of their other documents..
    Originally posted by RomfordNavy
    If you are on the "share plan and ISA" page at

    https://www.bailliegifford.com/en/uk/individual-investors/how-to-invest/investment-trust-share-planisa/

    The page is split into two parts for the two products

    Investment Trust ISA:
    SUMMARY OF FEATURES
    Tax-efficient investment
    No set-up charge*
    Flat rate annual management charge of £32.50 + VAT
    Lump sum investment from £2,000 up to a maximum of £20,000 each tax year
    Invest monthly from £100

    Investment Trust Share Plan
    SUMMARY OF FEATURES
    No initial or annual plan charge*
    Invest a lump sum from £250 or monthly from £30
    No maximum investment
    Stop and start investing at any time

    The £32.50+vat annual charge for being your ISA manager is a feature of the ISA product. Whereas the share plan does not have an initial or annual plan charge; it will also take smaller lump sum or annual amounts but does not have the tax exemptions.
    • Alexland
    • By Alexland 21st Sep 18, 8:59 PM
    • 3,580 Posts
    • 2,898 Thanks
    Alexland
    The natural reaction shouldn't be to say, "I will contact the FOS if they try to charge me £2, because I understood that any share purchase should be £5".
    Originally posted by bowlhead99
    But how can anyone trust a fixed fee platform that sneakily charges lower percentage fees for things that you might reasonably expect them to charge higher fixed fees on? It's the thin end of the (capped) wedge.

    Alex
    • RomfordNavy
    • By RomfordNavy 25th Sep 18, 9:27 PM
    • 182 Posts
    • 15 Thanks
    RomfordNavy
    If you are on the "share plan and ISA" page at

    https://www.bailliegifford.com/en/uk/individual-investors/how-to-invest/investment-trust-share-planisa/

    The page is split into two parts for the two products
    ...
    Originally posted by bowlhead99
    Thanks for that bowlhead99, I hadn't realised there was that other section for the non-ISA share plan further down the page. I wonder if the £22 per withdrawl charge applies to a non-ISA account or not?
    • RomfordNavy
    • By RomfordNavy 25th Sep 18, 9:29 PM
    • 182 Posts
    • 15 Thanks
    RomfordNavy
    But how can anyone trust a fixed fee platform that sneakily charges lower percentage fees for things that you might reasonably expect them to charge higher fixed fees on? It's the thin end of the (capped) wedge.

    Alex
    Originally posted by Alexland
    But why can they not have a simple one page summary of ALL of their charges regardless of whether they happen to be are more or less than one expected.
    • bowlhead99
    • By bowlhead99 25th Sep 18, 10:15 PM
    • 8,292 Posts
    • 15,175 Thanks
    bowlhead99
    But why can they not have a simple one page summary of ALL of their charges regardless of whether they happen to be are more or less than one expected.
    Originally posted by RomfordNavy
    Because if they put a really big page of charges for all possible account types crammed into a small space people will moan that it's too complicated and they are not looking to use all those services.

    On the Iweb homepage you just click on the Charges heading which takes you to:
    https://www.iweb-sharedealing.co.uk/charges-and-interest-rates/charges.asp

    That tells you the dealing charges and says, "When choosing the account that suits you, please ensure you have understood both the dealing and account administration charges.", giving you links to the specific account charge pages for the different types of accounts (S&S ISA, Share Dealing, SIPP)

    https://www.iweb-sharedealing.co.uk/charges-and-interest-rates/stocks-and-shares-isa-charges.asp

    https://www.iweb-sharedealing.co.uk/charges-and-interest-rates/share-dealing-account-charges.asp

    https://www.iweb-sharedealing.co.uk/charges-and-interest-rates/sipp-charges.asp

    It's really not complicated.
    • Vortigern
    • By Vortigern 25th Sep 18, 11:08 PM
    • 2,601 Posts
    • 1,788 Thanks
    Vortigern
    I wonder if [Baillie Gifford's] £22 per withdrawal charge applies to a non-ISA account or not?
    Originally posted by RomfordNavy
    I suspect that the charge does apply, but you can ask them to send you a share certificate, for which there is no charge.
    • RomfordNavy
    • By RomfordNavy 5th Oct 18, 3:13 PM
    • 182 Posts
    • 15 Thanks
    RomfordNavy
    As iWeb are quite adamant that they will not trade Lindsell Train I need to look elsewhere for the best place to hold some of that.

    In a couple of months I have just under £100k being released from a notice cash ISA of which I would like to invest at least some part in Lindsell Train. So the question is exclusing iWeb who is the next best broker for this intended buy and hold investment?


    Thanks,
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