Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • ColdIron
    • By ColdIron 10th Aug 18, 5:14 PM
    • 4,712Posts
    • 6,140Thanks
    ColdIron
    Charles Stanley Direct to increase fee to 0.35%
    • #1
    • 10th Aug 18, 5:14 PM
    Charles Stanley Direct to increase fee to 0.35% 10th Aug 18 at 5:14 PM
    Just received via email

    Notification of Platform Fee Increase from 10th September 2018:

    Since the launch of Charles Stanley Direct over five years ago, we have maintained an extremely low platform fee of just 0.25%. Over this period of time the pace of change in the digital world has continued to escalate and the costs to the business have grown, particularly relating to cyber security and systems to combat fraud. We have further grown our Edinburgh Helpdesk as user numbers have risen to ensure that we continue to deliver an exemplary customer service.

    Against this backdrop, in order to continue to meet the expectations of our clients with respect to developing our platform and investing in our people, we have made the decision to increase our platform fee to 0.35% from 0.25% on both fund and share holdings. We realise that such news is never welcome and would like to assure you that we have not taken this decision lightly. We will continue to:
    • Maintain our Loyalty Scheme levels at 0.20% for fund balances in excess of £250,000 and sharp tapering thereafter on your amalgamated accounts
    • Retain a charging cap of £240 per annum on our stocks & shares platform fees.
    • Offer a platform fee waiver to stocks & shares holders, meaning that clients can obtain free platform fees by undertaking one monthly trade at £11.50 commission.
    • Maintain free fund dealing on the website and in-App.
    • Offer no administration fees for Investment, ISA or Junior ISA account wrappers. No charge for SIPP wrapper if combined holdings in any CSD account are more than £30,000 in aggregate.
    These new charges will take effect from the 10th September 2018. Further explanation on the reasons for the change in platform fee charging can be seen HERE.

    Letting our clients know of a price increase is not an easy message to pass on, but we hope that you will understand that it will permit us to continue to invest heavily in the service. You will see the results of this investment over the coming months, through further improvements to the App and significant changes to the website.

    The revised Charges & Rates sheet can be found here and during the notification period our standard Terms & Conditions will apply for transfer instructions.

    Thank you for being a Charles Stanley Direct client. We appreciate that our clients have a choice and we do not take your custom lightly.
    Last edited by ColdIron; 10-08-2018 at 5:33 PM.
Page 2
    • DennisTenus
    • By DennisTenus 10th Aug 18, 8:52 PM
    • 293 Posts
    • 35 Thanks
    DennisTenus
    Yes, that's the chap. I was looking at the UK listing not Ireland. Many thanks
    Originally posted by ColdIron
    What does small cap mean
    • ColdIron
    • By ColdIron 10th Aug 18, 9:01 PM
    • 4,712 Posts
    • 6,140 Thanks
    ColdIron
    Companies with a small market capitalisation, as opposed to mid or large caps (capitalisation). In this case companies specifically tracked by the (MSCI) Small Cap World Index
    • dunstonh
    • By dunstonh 10th Aug 18, 9:12 PM
    • 95,312 Posts
    • 62,910 Thanks
    dunstonh
    I suppose it's possible HL could put their price up at any time too?
    Originally posted by DennisTenus
    Unlikely. They are profitable and one of the most expensive already.

    it is worth understanding the platform models. Most platforms are not profitable. What they tend to do is start cheap and try and build a critical mass that can make them profitable or find a buyer who is looking for market share through acquisition. The aim is to do that for as long as possible before either failing and going under or before they have to increase their own charges.

    A lot of the profitable platforms price small value investments with higher platform charges. This is partly to put smaller investors off but also means the larger investors are not cross-subsidising as much. The DIY market tends to be smaller investors. So, this can hinder a number of the platforms in their quest for survival and profits.

    SIPPs are also becoming more expensive to run as well. For decades SIPPs have not had the same running costs of personal pensions which is why they became popular on the DIY side. However, increased regulation, consumer protection and solvency requirements on SIPPs have increased the costs. So, these can hit the small platforms too.

    The platform charges in the 0.3x% range for £1+ invested seem to come from the stable platforms. The 0.2% range are those looking to buy business/market share probably at a loss. Those tiering down with higher values indicate the target market they are really after.
    Last edited by dunstonh; 11-08-2018 at 1:49 PM. Reason: spelling
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • fun4everyone
    • By fun4everyone 10th Aug 18, 9:17 PM
    • 1,020 Posts
    • 1,558 Thanks
    fun4everyone
    I wish platforms in the 0.3x% range like Fidelity didn't spend all their money making god awful new websites.
    • Lokolo
    • By Lokolo 10th Aug 18, 9:22 PM
    • 20,008 Posts
    • 15,138 Thanks
    Lokolo
    I wish platforms in the 0.3x% range like Fidelity didn't spend all their money making god awful new websites.
    Originally posted by fun4everyone
    To be fair to CSD they have spent a decent whack on a good website and a good app. However, at the end of the day I can't justify spending more money on my S&S ISA and SIPP than broadband, landline and mobile.
    • Audaxer
    • By Audaxer 10th Aug 18, 9:24 PM
    • 1,329 Posts
    • 798 Thanks
    Audaxer
    The platform charges in the 0.3x% range for £1+ invested seem to come from the stable platforms. The 0.2% range are those looking to buy business/market share probably at a loss. Those tiering down with higher values indicate the target market they are really after.
    Originally posted by dunstonh
    What about AJ Bell at 0.25% - I thought/hoped they were fairly stable as they are one of the biggest DIY platforms? I'm also with Halifax Share Dealing which are very cheap for large buy and hold funds at only £12.50 per year platform charge - I would have thought they were also fairly mainstream and stable, but not sure how they can do it so cheaply even although they do charge £12.50 for each transaction?
    • Alexland
    • By Alexland 10th Aug 18, 9:28 PM
    • 3,337 Posts
    • 2,675 Thanks
    Alexland
    AJ Bell and Halifax are making money on the trade fees (nothing is free) not just the platform fees which effectively means most customers pay 0.3%+ unless they have a high balance or static investment.

    Even customers that might intend to be static might not be able to resist fiddling with their investments..

    Alex
    Last edited by Alexland; 10-08-2018 at 9:31 PM.
    • fun4everyone
    • By fun4everyone 10th Aug 18, 9:56 PM
    • 1,020 Posts
    • 1,558 Thanks
    fun4everyone
    To be fair to CSD they have spent a decent whack on a good website and a good app. However, at the end of the day I can't justify spending more money on my S&S ISA and SIPP than broadband, landline and mobile.
    Originally posted by Lokolo
    Yeah I agree the CSD website is good. This price increase is a shame.
    • Lokolo
    • By Lokolo 10th Aug 18, 10:30 PM
    • 20,008 Posts
    • 15,138 Thanks
    Lokolo
    AJ Bell and Halifax are making money on the trade fees (nothing is free) not just the platform fees which effectively means most customers pay 0.3%+ unless they have a high balance or static investment.

    Even customers that might intend to be static might not be able to resist fiddling with their investments..

    Alex
    Originally posted by Alexland
    Yes. IWeb have a good fixed rate fee. My SIPP with 12 trades (6 buy 6 sell rebalance), will cost me £180 annual fee plus £60 making a total of 0.24%.

    The more my SIPP grows, the lower the % charge. Doubling my SIPP to £200k means total cost goes down to a decent 0.12%.

    It's just so difficult to move, as soon as a platform increases their fees, you have to weigh up if it's worth it.
    • Aletank
    • By Aletank 10th Aug 18, 11:35 PM
    • 543 Posts
    • 181 Thanks
    Aletank
    What other fixed fee ones are there besides Interactive Investor ?
    The format of II would probably suit me, it's just the reviews that put me off.
    • EdSwippet
    • By EdSwippet 11th Aug 18, 12:06 AM
    • 793 Posts
    • 764 Thanks
    EdSwippet
    What other fixed fee ones are there besides Interactive Investor?The format of II would probably suit me, it's just the reviews that put me off.
    Originally posted by Aletank
    You can find the flat-fee platforms listed in this table from Monevator.

    One additional note is that iWeb and Lloyds are really just alternative facets of Halifax sharedealing, so while they have differing value propositions, the underlying platform is pretty much the same across all three. They even look extremely similar online, clearly all running off the same software, just with different colour schemes and branding.

    For historical reasons I currently have accounts at iWeb, Lloyds, Alliance Trust and Interactive Investor (and yes, I should rationalise them at some point!). For what I want though, which is virtually comatose passive investing through tracker funds, all of them are perfectly fine. I save several thousand pounds a year in fees with these when compared with Hargreaves Lansdown, Charles Stanley Direct, YouInvest, and the other percentage-based platforms.
    Last edited by EdSwippet; 11-08-2018 at 9:55 AM.
    • busy_dad
    • By busy_dad 11th Aug 18, 7:55 AM
    • 37 Posts
    • 16 Thanks
    busy_dad
    Does anyone have experience of Close Brothers? Same 0.25% platform fee for ISA and SIPP, no charges for fund trades, no transfer out fees either.
    • antonio1
    • By antonio1 11th Aug 18, 8:54 AM
    • 29 Posts
    • 19 Thanks
    antonio1
    I don't like how they've handled this, apart from the price rise itself. They've not given much warning and in holiday season too! Bear in mind you can transfer out for free by giving a counter notice to CSD within 30 days of their email. Something contained in their terms and conditions but remarkably not mentioned in their email or links in it. One of those if you don't like a price rise you can leave for free. Different industry sector but even BT broadband make customers aware of their rights upon a price rise....
    • potts8
    • By potts8 11th Aug 18, 9:11 AM
    • 22 Posts
    • 1 Thanks
    potts8
    I'm currently only invested in Vanguard LS with CSD so I suppose the logical move for me would be to Vanguards platform if I have no intentions on investing elsewhere and my funds don't warrent a fixed fee at this point?


    Thanks for the heads up on not paying a fee to transfer out. Just contacted CSD for confirmation.
    • Lungboy
    • By Lungboy 11th Aug 18, 9:30 AM
    • 1,495 Posts
    • 1,511 Thanks
    Lungboy
    Does anyone have experience of Close Brothers? Same 0.25% platform fee for ISA and SIPP, no charges for fund trades, no transfer out fees either.
    Originally posted by busy_dad
    When I was looking for a sipp a few months ago I discounted them as their choice of funds seemed to be missing a lot of the funds that I was interested in.
    • traineepensioner
    • By traineepensioner 11th Aug 18, 11:02 AM
    • 271 Posts
    • 140 Thanks
    traineepensioner
    I don't like how they've handled this, apart from the price rise itself. They've not given much warning and in holiday season too! Bear in mind you can transfer out for free by giving a counter notice to CSD within 30 days of their email. Something contained in their terms and conditions but remarkably not mentioned in their email or links in it. One of those if you don't like a price rise you can leave for free. Different industry sector but even BT broadband make customers aware of their rights upon a price rise....
    Originally posted by antonio1
    Thanks for the heads up.....

    CSD business terms_April 2018
    "Variations in these Terms or in our services
    8. We may vary these Terms or the characteristics of any of our services
    at any time for the following reasons, subject to the conditions set out
    below:
    (i) we may make a variation in order to comply with the Rules or
    with relevant accepted market custom and practice. If we do
    so we shall seek to give you not less than ten business daysí
    notice in advance, but where this is not possible we shall notify
    you as soon as we can thereafter;
    (ii) we may make a variation with a view to improving or
    extending the service that we offer. If we do so we shall give
    you not less than ten business daysí notice in advance.
    (iii) in the case of any other variation in these Terms or in the
    characteristics of our services (including a variation in our
    Rates and Charges Sheet) we shall give you not less than
    ten business daysí notice in advance. Where the variation is
    material in relation to the substance of these Terms (including
    a variation in our charges) and/or to a particular service which
    you are receiving, and you give notice of termination within 30
    days of receiving our notice of the variation, we shall make no
    charge for transferring away on your instructions any securities
    which we may be holding for you
    .
    "

    Email on the way.
    No longer trainee
    Retired in 2012 (54)
    State pension due 2024 (66)
    • bowlhead99
    • By bowlhead99 11th Aug 18, 11:05 AM
    • 8,278 Posts
    • 15,126 Thanks
    bowlhead99
    Move to where though ? Interactive Investor was one thought but their customer service puts me off, AJ Bell i need to look into more.
    Other providers will pay back any moving fees for you
    Originally posted by Aletank
    I have a SIPP with AJ Bell for the last six years or so and they're fine - I've transferred lumps in from a couple of other pension providers over the years (including this year) with no issues, nice and easy (though these were done as cash transfers), and the range of funds offered is broader than Halifax / IWeb.

    The majority of what I hold is not funds but instead ITs, ETFs and shares, so the 0.25% charge caps out at £40k on that part of the SIPP portfolio (£100/yr); while in their ISA or unwrapped, the charge on the stock-exchange-traded stuff caps out at £12k invested (£30/yr). These caps are lower than CSD's cap of £240 collectively across the account types for exchange-traded stuff.

    The 'paying back of moving fees' with AJ Bell has been a long term offer for new and existing customers - they'll pay up to £500, but the minimum transfer in to get your fees paid these days is £20k. So if you didn't get to move from CSD without fees (because of leaving it a while), you would find that AJ Bell would cover those fees if you're a big enough customer.

    The service from AJ Bell is fine and the regular investment service to buy once a month at £1.50 per trade covers a broad range of equities, ITs and ETFs and you can change it every single month if you want (it also covers funds but they are 1.50 to buy (or to sell) whenever anyway).


    I expect most people who had a fund-heavy portfolio at CSD paying 0.25% on it will find that it is not a huge amount more expensive to be at AJ Bell instead paying 0.25% on it plus 1.50 per fund purchase or sale; if you do twenty puchases or sales over the year it's £30 for those £1.50s ; whereas CSD's new fee scale of 0.35 instead of 0.25 is a minimum of £30 extra on £30k and more on more than that. The question is really if you have a large fund-heavy portfolio do you just jump ship to a fixed-fee provider instead.
    • atypical
    • By atypical 11th Aug 18, 11:26 AM
    • 1,326 Posts
    • 846 Thanks
    atypical
    Some interesting points in their FY18 results (March Y/E)

    "The aim for the next two years is to drive asset growth [at Charles Stanley Direct] via two channels. First, from the next generation of digital clients via multi-channel marketing with a low cost per acquisition. The intention is to service those clients increasingly from the new app which will shortly allow clients to deposit money and trade funds. Second, by facilitating the transfer process from the Investment Management Services division of Execution-only clients for whom Charles Stanley Directís lower cost service might be more appropriate."

    "Charles Stanley Direct continues to make very encouraging progress and although it reported a small loss for the year of £0.3 million, it achieved a profit of £0.2 million in the second half. This was driven by a combination of ongoing growth in its customers and AuA on a relatively static cost base."
    • EdSwippet
    • By EdSwippet 11th Aug 18, 2:38 PM
    • 793 Posts
    • 764 Thanks
    EdSwippet
    The 'paying back of moving fees' with AJ Bell has been a long term offer for new and existing customers - they'll pay up to £500, but the minimum transfer in to get your fees paid these days is £20k. So if you didn't get to move from CSD without fees (because of leaving it a while), you would find that AJ Bell would cover those fees if you're a big enough customer.
    Originally posted by bowlhead99
    Worth bearing in mind though that AJ Bell is so far the only UK platform that has in the past raised its prices -- substantially and to multiples of the previous price for some customers -- without also offering a limited-time free transfer out. And not just once, but twice.

    In other words, be aware that this YouInvest offer might come with a sting in its tail. My own Interactive Investor SIPP is all funds/OEICs and is actually a refugee from the first YouInvest price hike. With Interactive Investor's charging model I am much happier and much better off financially, even after paying YouInvest's somewhat hefty transfer out fees.
    • someone
    • By someone 11th Aug 18, 3:13 PM
    • 638 Posts
    • 277 Thanks
    someone
    CSD business terms_April 2018
    " Where the variation is
    material in relation to the substance of these Terms (including
    a variation in our charges) and/or to a particular service which
    you are receiving, and you give notice of termination within 30
    days of receiving our notice of the variation, we shall make no
    charge for transferring away on your instructions any securities
    which we may be holding for you
    .[/I]"
    Originally posted by traineepensioner
    Also emailed. Assumed they would have to offer free transfer but even better it's in their own terms.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

153Posts Today

1,419Users online

Martin's Twitter
  • Lovely package on #newsnight just now about Brexit hitchhiking, livened up what has been not the most exciting show.

  • Is this is a serious tweet or a joke? Why did I mention he was a cyclist - because he was a cyclist. Eh? https://t.co/F1SP7UJZkH

  • How awful Mark. This is why those people who take risks on the road, have to realise while they think they're gamb? https://t.co/berU23vQOU

  • Follow Martin