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  • FIRST POST
    • traineepensioner
    • By traineepensioner 11th Aug 18, 7:59 AM
    • 265Posts
    • 136Thanks
    traineepensioner
    CSD alternatives & transaction charges
    • #1
    • 11th Aug 18, 7:59 AM
    CSD alternatives & transaction charges 11th Aug 18 at 7:59 AM
    My partner & I have accounts with Charles Stanley Direct and Interactive Investor. CSD have just announced a 40% increase in charges so I'm now looking for an alternative platform. We have 100K in 4 passive funds with CSD and over 200K in II. I don't trade very often and I'm happy with II but I don't want to put all our investments on one platform.

    I've been looking at Iweb fees and they mention a "Transaction charge" of 0.5% in addition to their 5 dealing costs. Do all platforms have this charge? There's no mention of this in II's charges.... Or is this just another hidden charge that investors don't see?

    Any recommendations for any other flat fee platforms?

    Many thanks
    No longer trainee
    Retired in 2012 (54)
    State pension due 2024 (66)
Page 1
    • masonic
    • By masonic 11th Aug 18, 8:02 AM
    • 9,676 Posts
    • 6,880 Thanks
    masonic
    • #2
    • 11th Aug 18, 8:02 AM
    • #2
    • 11th Aug 18, 8:02 AM
    Plenty of discussion about other platforms in the main CSD fee hike thread here:
    https://forums.moneysavingexpert.com/showthread.php?t=5880383
    • traineepensioner
    • By traineepensioner 11th Aug 18, 8:10 AM
    • 265 Posts
    • 136 Thanks
    traineepensioner
    • #3
    • 11th Aug 18, 8:10 AM
    • #3
    • 11th Aug 18, 8:10 AM
    Plenty of discussion about other platforms in the main CSD fee hike thread here:
    https://forums.moneysavingexpert.com/showthread.php?t=5880383
    Originally posted by masonic
    Thanks Masonic, I've been following the thread but didn't want to hijack it with my query about transaction charges.
    No longer trainee
    Retired in 2012 (54)
    State pension due 2024 (66)
    • masonic
    • By masonic 11th Aug 18, 8:13 AM
    • 9,676 Posts
    • 6,880 Thanks
    masonic
    • #4
    • 11th Aug 18, 8:13 AM
    • #4
    • 11th Aug 18, 8:13 AM
    I've been looking at Iweb fees and they mention a "Transaction charge" of 0.5% in addition to their 5 dealing costs. Do all platforms have this charge? There's no mention of this in II's charges.... Or is this just another hidden charge that investors don't see?
    Originally posted by traineepensioner
    I use II and iWeb and iWeb does not have a 0.5% charge in addition to the 5 dealing costs (perhaps you're referring to stamp duty on shares and investment trusts, which is applicable to all platforms).
    • traineepensioner
    • By traineepensioner 11th Aug 18, 8:27 AM
    • 265 Posts
    • 136 Thanks
    traineepensioner
    • #5
    • 11th Aug 18, 8:27 AM
    • #5
    • 11th Aug 18, 8:27 AM
    I use II and iWeb and iWeb does not have a 0.5% charge in addition to the 5 dealing costs (perhaps you're referring to stamp duty on shares and investment trusts, which is applicable to all platforms).
    Originally posted by masonic
    Thanks again, it must be a hidden charge within the fund.

    I was looking at the fund buying example (Farouk) at https://www.iweb-sharedealing.co.uk/PDFs/CostsAndCharges.pdf
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    • masonic
    • By masonic 11th Aug 18, 8:59 AM
    • 9,676 Posts
    • 6,880 Thanks
    masonic
    • #6
    • 11th Aug 18, 8:59 AM
    • #6
    • 11th Aug 18, 8:59 AM
    Thanks again, it must be a hidden charge within the fund.

    I was looking at the fund buying example (Farouk) at https://www.iweb-sharedealing.co.uk/PDFs/CostsAndCharges.pdf
    Originally posted by traineepensioner
    Stamp duty is not a hidden charge, it's a Government tax. It doesn't apply to ETFs or open ended funds.

    In the case of Farouk, iWeb is using a regulatory figure of 0.5% to represent the average cost across the industry. It is a bit of a nonsense figure because it is not charged to the investor, but it is part of the cost of running the fund and is included in the overall fund performance. It is therefore diluted between all holders of the fund and the actual percentage could be more or less than 0.5% depending on how actively traded the fund is.

    They don't mention the big hidden cost in actively managed funds and that's the cost of portfolio turnover - when underlying investments are bought and sold by the fund manager. All in all, the hidden costs can add up to as much as 5% per year, but as these costs are deducted from fund performance they will tend to cause the fund to underperform over the long term if they are higher.
    Last edited by masonic; 11-08-2018 at 9:16 AM.
    • Aletank
    • By Aletank 11th Aug 18, 4:08 PM
    • 539 Posts
    • 179 Thanks
    Aletank
    • #7
    • 11th Aug 18, 4:08 PM
    • #7
    • 11th Aug 18, 4:08 PM
    What's your views on Interactive Investor compared to Charles Stanley ? Customer Service , using the platform etc ?
    • traineepensioner
    • By traineepensioner 11th Aug 18, 8:11 PM
    • 265 Posts
    • 136 Thanks
    traineepensioner
    • #8
    • 11th Aug 18, 8:11 PM
    • #8
    • 11th Aug 18, 8:11 PM
    What's your views on Interactive Investor compared to Charles Stanley ? Customer Service , using the platform etc ?
    Originally posted by Aletank
    I'm quite happy with Interactive Investor. That said, as a buy & hold investor, I only do around 10 transactions a year.
    Both platforms have an easy to use web interface. However, I prefer II's fixed fee structure and the fact that you can roll up your quarterly charges to have commission free transactions to re-balance your portfolio.

    Charles Stanley's charges were at 250 per year on our 100K investments (0.25%). The increase fees would take the charges to 350.
    Interactive charges are 90 per year on our 200K investments and this allows 9 commission free trades per year. Any further trades are charged at 10.

    II have had a number of bad reviews in the past and have recently merged with TD direct. However, I've had no problems with either platform.

    HTH
    No longer trainee
    Retired in 2012 (54)
    State pension due 2024 (66)
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