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Self-select shares ISA provider


InLikeFlynn

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InLikeFlynn

I've just had a letter from my ISA provider (interactive investor) letting me know that they are increasing the charge on my ISA to £120 per year.

My portfolio  is not large (2 investment trust holdings, mid 5 figure value) so the charges will eat away at the dividend stream.

Can anyone recommend a cheap, safe (i.e. secure and not likely to go bust) provider other than Hargreaves Lansdown? I only plan to hold equities and am a "buy and hold" investor with very little trading activity.

I have other investments with HL so would rather use an alternative to spread risk.

Thanks

Edit to add - the Mail has an article on this from a couple of weeks ago if anyone is interested.

https://www.thisismoney.co.uk/money/diyinvesting/article-1718291/Pick-best-cheapest-investment-Isa-platform.html

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Have you looked at AJ Bell?  I'm not sure what the charges would be for your size of portfolio but I joined earlier this year and like their service so far.  The basic buy sell charge for shares is £9.95.

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First direct

£10 share dealing and no holding charges iirc. I would use them myself but have my sipp with ii so happy to double up with them with my isa for now.... At least.

AJ bell seem good. Recently opened a LISA with and they completed a transfer in two weeks

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On 26/04/2019 at 10:17, InLikeFlynn said:

I've just had a letter from my ISA provider (interactive investor) letting me know that they are increasing the charge on my ISA to £120 per year.

My portfolio  is not large (2 investment trust holdings, mid 5 figure value) so the charges will eat away at the dividend stream.

Can anyone recommend a cheap, safe (i.e. secure and not likely to go bust) provider other than Hargreaves Lansdown? I only plan to hold equities and am a "buy and hold" investor with very little trading activity.

I have other investments with HL so would rather use an alternative to spread risk.

Thanks

Edit to add - the Mail has an article on this from a couple of weeks ago if anyone is interested.

https://www.thisismoney.co.uk/money/diyinvesting/article-1718291/Pick-best-cheapest-investment-Isa-platform.html

I am using ii for my SIPP as the fees are still very good, despite the increases.

For ISA, use iWeb. It's £25 to open and then just £5 a trade. That's it. 

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InLikeFlynn

Many thanks for all the advice - I've gone with AJbell.  I didn't realise iweb are backed by Halifax or I might have used

them.

On 26/04/2019 at 19:28, A_P said:

. I would use them myself but have my sipp with ii so happy to double up with them with my isa for now.... At least.

 

ii (Interactive investor) are increasing their ISA charges to £120 per year so you may want to look again (they don't charge any exit fees). There's also a good argument for having your SIPP and ISA with different providers to spread risk.

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42 minutes ago, InLikeFlynn said:

Many thanks for all the advice - I've gone with AJbell.  I didn't realise iweb are backed by Halifax or I might have used

them.

ii (Interactive investor) are increasing their ISA charges to £120 per year so you may want to look again (they don't charge any exit fees). There's also a good argument for having your SIPP and ISA with different providers to spread risk.

Yeah im aware of the increase. The £120 per year is a platform fee, not per account, subsequently I count that as part of my SIPP charges and ISA becomes FOC for me bar any trading costs. Which are limited due to the trading credits and using them on the regular investing function where i can.

I only have two years worth of ISA holdings with ii so not too concerned about the broker risk in all honesty at the moment. But I am diversifying in other ways, LISA with AJ,  and going forward direct company holdings/PM ETC's with freetrade. I will likely move my ISA holdings to First Direct or someone else once the pot becomes a bit more sizeable or ii go too far with the their platform fees. At the moment though combined SIPP and ISA they're competitive for my total pot size and what i buy and hold.

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Democorruptcy

I know this is a "shares" thread but reading it made me think iweb looked very cheap.

Then I decided to compare their fund charges against HL, comparison using Troy Trojan

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/t/troy-trojan-class-x-income

https://www.markets.iweb-sharedealing.co.uk/funds-centre/fund-supermarket/detail/GB00BZ6CQ069

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1 hour ago, Democorruptcy said:

I know this is a "shares" thread but reading it made me think iweb looked very cheap.

Then I decided to compare their fund charges against HL, comparison using Troy Trojan

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/t/troy-trojan-class-x-income

https://www.markets.iweb-sharedealing.co.uk/funds-centre/fund-supermarket/detail/GB00BZ6CQ069

Do iweb charge to hold funds? Buying funds are cheap on HL for a reason....they're levy a 0.45% charge and don't stop until £200k, and continue charging something until one breaks £1m xD

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Democorruptcy
1 hour ago, A_P said:

Do iweb charge to hold funds? Buying funds are cheap on HL for a reason....they're levy a 0.45% charge and don't stop until £200k, and continue charging something until one breaks £1m xD

Are these right?

Initial charge, iweb 5%, HL 0%

Transaction fee, iweb 0.5% HL 0%

Online dealing fee, iweb £5, HL £0

Ongoing charge, iweb 0.87%, HL 0.62%

Annual platform charge iweb 0%, HL 0.45% first £250k (0.25% 250k to 1m)

 

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1 minute ago, Democorruptcy said:

Are these right?

Initial charge, iweb 5%, HL 0%

Transaction fee, iweb 0.5% HL 0%

Online dealing fee, iweb £5, HL £0

Ongoing charge, iweb 0.87%, HL 0.62%

Annual platform charge iweb 0%, HL 0.45% first £250k (0.25% 250k to 1m)

 

As far as I understand sometimes the initial charge is only levied if you go directly to the fund manager rather than through the broker. No idea on that fund though. I suspect the 0.5% transaction fee is just an average figure they use. When looking on iweb's charges they use 0.5% in their examples.

AJ bell quote 0.07, which is more realistic. I can't even see the fund on II for a comparison. There are always some underlying transactions fees so i suspect HL's will likely be incorrect.   Your broker should give you a detailed cost disclosure before confirming a purchase. If you use HL worth doing a dummy purchase to see what it says.

Generally though HL aren't great for investing in funds but not too bad if investing in ETF's where they cap platform fees at £45

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Democorruptcy
12 hours ago, A_P said:

As far as I understand sometimes the initial charge is only levied if you go directly to the fund manager rather than through the broker. No idea on that fund though. I suspect the 0.5% transaction fee is just an average figure they use. When looking on iweb's charges they use 0.5% in their examples.

AJ bell quote 0.07, which is more realistic. I can't even see the fund on II for a comparison. There are always some underlying transactions fees so i suspect HL's will likely be incorrect.   Your broker should give you a detailed cost disclosure before confirming a purchase. If you use HL worth doing a dummy purchase to see what it says.

Generally though HL aren't great for investing in funds but not too bad if investing in ETF's where they cap platform fees at £45

Well if I were iweb, I wouldn't display a 5% initial charge if I weren't going to charge it. The difference between the ongoing fees make HL 0.2% (0.62% + 0.45% v 0.87%) more expensive per year. I looked at it and thought 5% / 0.2% = 25 years to break even.

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26 minutes ago, Democorruptcy said:

Well if I were iweb, I wouldn't display a 5% initial charge if I weren't going to charge it. The difference between the ongoing fees make HL 0.2% (0.62% + 0.45% v 0.87%) more expensive per year. I looked at it and thought 5% / 0.2% = 25 years to break even.

I'm not saying they're not going to charge it. All I'm saying is I wouldn't rely on the information unless you have the actual cost disclosure document when logged in. As we've seen this specific fund fees across three platforms are very different.

Although I don't doubt on this fund that HL come out on top. Did they do a deal with them perhaps?

How do they compare for £100k's worth of vanguard's FTSE 100 index unit trust?

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Democorruptcy

That Troy Trojan fund is in HL's top 50, so maybe that came at a price? I have little interest in funds but that one seems to match some aspects of the credit/deflation thread.

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