MegaSack DRAW - This year's winner is user - rgwb
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Hi all, I need some advice on investment platforms so who better than a load of middle class MTB riders 😂
Someone at work was telling me about Moneybox and reckoned it was good, but a bit of online searching suggests that there may be better out there? I've been getting mailshots from Santander about their Investment Hub as I bank with them but again I'm not sure.
Anyone out there do this?
I've never done anything like this before so I'm an absolute beginner. The level I'm at would be to stick a 500 lump in at first, and then around 100 a month. In around 6 months this could go up to 500 a month. I'm aware that I need to stick with this for 5+ years, and it's not money that I need for living expenses or for my mortgage (3 years left and easily manageable on very low interest).
Cheers in advance
Spuds N17
Hargreaves lansdown is OK if you plan to do some active investment (buying and selling) but it sounds like you just want to let it sit there. In that case a managed fund might suit you better. Have a look fundsmith which has done very well recently or a vanguard tracker which has done OK and you can choose the risk level. Both can be bought directly which makes it much easier for a newby.
You're confusing two things, the platform and the funds.
You need a platform to act as broker / tax wrapper (SIPP or ISA) eg HL, III, Tilnet Best Invest, etc.
Then you buy funds using that platform. Most platforms offer most funds eg Fundsmith can be bought though just about any platform.
Vanguard is different, they provide funds and recently (in the UK) have opened as a platform (ISA only, SIPPs TBC). With their platform you can only buy their funds (IIRC).
There are two sets of fees to consider. The platform charge fees and the funds charge management fees. Some platforms, eg HL, negotiate reductions in fees so whilst they are a more expensive platform, overall they might not be that expensive. All platforms have to give an illustrated example of fees for each fund, so worth running those and comparing the numbers, you get some interesting results eg III, who on paper look the cheapest, aren't any cheaper in some case. I posted some examples a while back which no one believed even though I just copy and pasted the numbers from their website!
footflaps (as ever) gives a sound summary.
On cost terms alone, choosing a platform will depend on value of the investments you hold, your trading frequency & the type of assets you buy / sell (shares, index funds etc)
Virtually all platforms will charge to trade individual shares, whilst others you can trade index funds/trackers without paying commission fee's (costs presumably wrapped up in overall fee's).
Monevator provides a good summary table which will help choose the most cost effective platform based on your assets / likely trading frequency etc.
All of the above ignores customer service, ease of use, which you may decide you want to pay extra for on a "better" platform.
As you haven't mentioned it, I'm assuming you want to open a S&S ISA?
I use H&L for a self managed ISA.
Mrs M has an ISA managed by them and we both have drawdown with them.
Personally I would stay with cash right now until those clowns have sorted Brexit but then don't take any advice from me. I have successfully called seven out of the last three crashes.
Spent a while looking at this over the weekend as well and opened my LISA with H&L. Over all costs worked out a few quid per year cheaper than AJB and nutmeg.
Recent fluctuations don't worry me too much as I wont be retiring for 25 or so years
Thanks all, I'm still confused though 😂
I do need something that's easy to manage being a complete beginner but I also want an element of control, and yes I was looking at a S+S ISA.
You've given me plenty to think about so I'll have a look at the stuff you've suggested
I've been having a look into this too and I was swaying to a Vanguard S+S ISA with a low cost FTSE tracker. Looks like all up fees should be around 0.23% which is 1/4 of what I pay just now (Virgin Money) and half of Hargreaves Lansdown. Frustratingly I want to split the investment 50/50 between L-ISA and ISA which vanguard do not offer...
Scruff9252 - same problem I faced. It's shocking how few LISA providers there are.
For those who might be interested, Peter Hargreaves - co founder of Hargreaves Lansdown - was a top Leave supporter and donor of £3.2m to the Leave campaign. He backs a No Deal outcome as best for Britain. According to The Independent, he owns a third of HL shares.
I have successfully called seven out of the last three crashes.
🙂