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Interactive increases monthly charge

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EthicsGradient
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Re: Interactive increases monthly charge

#213996

Postby EthicsGradient » April 9th, 2019, 8:53 pm

I use II; I haven't had any indication of this yet (if I'd gone straight to the login page, I probably would have missed it - I noticed it on a news site). I think it'll cost me about £10 more a year, in total fees and dealing charges; since I've started doing regular investments, but already have a sizable combined ISA and non-ISA portfolio, I suspect there's no single platform that'll be cheaper for me, even now. Since the basis of it is a fixed fee per month, it'd certainly have to mean moving all my investments out to be worth it, and I think anywhere with regular charges as cheap makes it up in another way.

Ho hum; I suspect I'll stay and pay the little bit more.

Parky
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Re: Interactive increases monthly charge

#214160

Postby Parky » April 10th, 2019, 3:55 pm

Now that they have taken over Alliance Trust, their main (only?) flat-fee competitor, they do not have to compete on price any more. Should be referred to the appropriate competition authorities IMHO.

Lootman
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Re: Interactive increases monthly charge

#214166

Postby Lootman » April 10th, 2019, 4:10 pm

EthicsGradient wrote:I use II; I haven't had any indication of this yet (if I'd gone straight to the login page, I probably would have missed it - I noticed it on a news site). I think it'll cost me about £10 more a year, in total fees and dealing charges; since I've started doing regular investments, but already have a sizable combined ISA and non-ISA portfolio, I suspect there's no single platform that'll be cheaper for me, even now. Since the basis of it is a fixed fee per month, it'd certainly have to mean moving all my investments out to be worth it, and I think anywhere with regular charges as cheap makes it up in another way.

Ho hum; I suspect I'll stay and pay the little bit more.

Unless I am reading it wrong, the new charges may actually work out cheaper for some clients.

For instance right now I pay 90 a year and get 8 free trades. Under the new plan I will pay 120 a year and get 12 free trades.

Throw in the fact that the unit price for trades has gone down and I should be ahead on the deal.

Plus there are three options for the fees you wish to sign up for. The main downside would be for folks who never trade. But how many manage that? And why should the rest of us subsidise their inaction?

EthicsGradient
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Re: Interactive increases monthly charge

#214171

Postby EthicsGradient » April 10th, 2019, 4:28 pm

Lootman wrote:Unless I am reading it wrong, the new charges may actually work out cheaper for some clients.

For instance right now I pay 90 a year and get 8 free trades. Under the new plan I will pay 120 a year and get 12 free trades.

Throw in the fact that the unit price for trades has gone down and I should be ahead on the deal.

Plus there are three options for the fees you wish to sign up for. The main downside would be for folks who never trade. But how many manage that? And why should the rest of us subsidise their inaction?

Yes, it'll be cheaper for some, but not for a lot. (I think that ought to read "pay 90 a year and get 9 free trades", by the way). But that means people who trade less than 12 times a year, which isn't "never", will be paying more, since £120 is the absolute minimum you will be able to pay. Or someone who has 1 regular investment a month, and another 8 lump sum buy/sells a year: old system, charges £12+8*10=£92 (just above the minimum £90 fee); new system: charges £12+8*8=£76, all rebated (up to £96 can be rebated a year), but minimum fee is £120, so that's £28 more.

And I've just noticed that they're starting on 1st June, so we'll pay one month's fee in this 2nd quarter, for which they've already taken the £22.50 fee. So that's a tenner they're taking off everyone, to start this.

puffster
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Re: Interactive increases monthly charge

#214188

Postby puffster » April 10th, 2019, 5:26 pm

EthicsGradient wrote:And I've just noticed that they're starting on 1st June, so we'll pay one month's fee in this 2nd quarter, for which they've already taken the £22.50 fee. So that's a tenner they're taking off everyone, to start this.

I'd noticed that too. Surely we have paid for a service - they can't charge us twice for June?

Another question is what happens to the trading credit that one has built up - does that just disappear on June 1st?

Regards, Puffster

EthicsGradient
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Re: Interactive increases monthly charge

#214192

Postby EthicsGradient » April 10th, 2019, 5:36 pm

puffster wrote:Another question is what happens to the trading credit that one has built up - does that just disappear on June 1st?

Regards, Puffster

From their FAQs (I'm too much of a newbie to even be allowed to type out the link, let alone make it clickable) : existing credit from the old scheme lasts until 31 Dec 2019; credit from the new scheme lasts just 90 days from when it was credited. So you can only 'save up' 3 free trades at a time after this year.

Breelander
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Re: Interactive increases monthly charge

#214208

Postby Breelander » April 10th, 2019, 6:15 pm

EthicsGradient wrote:From their FAQs (I'm too much of a newbie to even be allowed to type out the link, let alone make it clickable) : existing credit from the old scheme lasts until 31 Dec 2019; credit from the new scheme lasts just 90 days from when it was credited. So you can only 'save up' 3 free trades at a time after this year.


I though you could still type a link as a 'newbie', just that it wouldn't automatically become clickable (maybe that's changed recently). Anyway, I've been around long enough...


What will happen to my existing free credit that I haven’t used yet?
Your existing free credit will stay on your Plan until 31 December 2019. If it is not used, after this date it will expire.
https://www.ii.co.uk/service-plans/investor/faqs#18
Last edited by Breelander on April 10th, 2019, 6:15 pm, edited 1 time in total.

tjh290633
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Re: Interactive increases monthly charge

#214209

Postby tjh290633 » April 10th, 2019, 6:15 pm

Parky wrote:Now that they have taken over Alliance Trust, their main (only?) flat-fee competitor, they do not have to compete on price any more. Should be referred to the appropriate competition authorities IMHO.

They have other cheaper competitors, Halifax Sharedealing for one. If you don't trade very much, Halifax could be cheaper.

TJH

Dod101
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Re: Interactive increases monthly charge

#214220

Postby Dod101 » April 10th, 2019, 7:30 pm

Parky wrote:Now that they have taken over Alliance Trust, their main (only?) flat-fee competitor, they do not have to compete on price any more. Should be referred to the appropriate competition authorities IMHO.


Last time I looked they had not (yet) taken over Alliance Trust Savings Ltd. I doubt that they will have a tilt at Alliance Trust PLC.

Frankly the new charges are perfectly competitive and even if they are not for some, they can always move. ATS has struggled for years to make any money and I want my ISA manager and platform provider to be stable and carry on for the foreseeable future.

Dod

TedSwippet
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Re: Interactive increases monthly charge

#214259

Postby TedSwippet » April 10th, 2019, 10:27 pm

Lootman wrote:The main downside would be for folks who never trade. But how many manage that? And why should the rest of us subsidise their inaction?

I never trade. I hold accumulation units in passive trackers, wrapped in a SIPP that I am not currently paying into. I do however pay a sizeable platform fee that includes nine trades a year that I do not use (soon to be twelve trades a year). Why should I subsidise your trading activities?

Lootman
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Re: Interactive increases monthly charge

#214323

Postby Lootman » April 11th, 2019, 8:56 am

TedSwippet wrote:
Lootman wrote:The main downside would be for folks who never trade. But how many manage that? And why should the rest of us subsidise their inaction?

I never trade. I hold accumulation units in passive trackers, wrapped in a SIPP that I am not currently paying into. I do however pay a sizeable platform fee that includes nine trades a year that I do not use (soon to be twelve trades a year). Why should I subsidise your trading activities?

Ha, well as I was writing that I did think that someone with only a non-taxable account who only invested in open-ended funds might be in that position.

Someone who holds shares in a taxable account is going to trade though, if only in response to corporate actions, to utilise the annual CGT-free allowance or simply to invest new capital and redistributions.

As to who is subsidising who that is another matter, but I suspect my broker makes more money from me than from you, and might act accordingly.

EthicsGradient
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Re: Interactive increases monthly charge

#214374

Postby EthicsGradient » April 11th, 2019, 12:15 pm

puffster wrote:
EthicsGradient wrote:And I've just noticed that they're starting on 1st June, so we'll pay one month's fee in this 2nd quarter, for which they've already taken the £22.50 fee. So that's a tenner they're taking off everyone, to start this.

I'd noticed that too. Surely we have paid for a service - they can't charge us twice for June?

This FAQ seems to have been added to their list - I hadn't seen it yesterday, though I looked for something like it:

I’ve already paid my quarterly fee, how does this work when the monthly payments begin?

When the monthly fees begin in June, customers who paid their £22.50 quarterly fee in April or May, will get a pro-rated refund (£7.50 if paid in April, £15 if paid in May). You will receive this refund in June.

Dod101
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Re: Interactive increases monthly charge

#214445

Postby Dod101 » April 11th, 2019, 4:57 pm

For the benefit of particularly Bouleversee, I have just received my email detailing the charges. Nothing different from the website of course and I think it will have a minimal effect on me. Like others in the same position though I face some disruption after the takeover of ATS goes through as I cannot have all my ISA eggs in one basket, so I will move about half to HSBC if my early trial of its site goes OK. I am just setting up this year's ISA with them at the moment.

Dod

daveh
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Re: Interactive increases monthly charge

#214884

Postby daveh » April 13th, 2019, 7:09 pm

Bouleversee wrote:But one only sees that if one goes on their website, which I don't do very often. Not quite the same thing as being notified by an email, is it?

I had an email from lI middle of this week, but I'm in Alpe d'Huez so have been unable to do much about checking the details yet, will look into it when I'm back. I don't particularly want to move and II are my 2nd broker, as I wanted to spread my risks a little.

GPhelan
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Re: Interactive increases monthly charge

#214902

Postby GPhelan » April 13th, 2019, 9:56 pm

Mark Polson, top cat at the Langcat Consultancy is quite taken by the 'Netflix' style pricing II has adopted. "For the first time in a long time, we have a provider really trying to do something different on fees."
Read his full comment here - second topic.
https://www.langcatfinancial.co.uk/2019 ... extension/

The impact for me is probably neutral - higher fees balanced by cheaper trades, event in the bottom 'Investor' profile which they allocated to me.
Compared with my Hargreaves Lansdown costs, II have a LOT of headroom before they stop looking cheap.

Alaric
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Re: Interactive increases monthly charge

#214908

Postby Alaric » April 13th, 2019, 10:23 pm

GPhelan wrote:Mark Polson, top cat at the Langcat Consultancy is quite taken by the 'Netflix' style pricing II has adopted. "For the first time in a long time, we have a provider really trying to do something different on fees."


Custody fees offset by dealing charges isn't anything new. It's bad news for absolute buy and hold investors. If they are doing so in taxed accounts, the "free" option of reverting to paper certificates has to be considered. If you have amounts to reinvest or have the annual shuffle between realising in taxed accounts to utilise CGT allowances and finance new year ISA or de minimis SIPP contributions, you may generate enough trading activity to offset. Not being gouged by a percent of value on OEICs can have its points if a particular investment strategy or fund manager is only available in that format.

stevensfo
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Re: Interactive increases monthly charge

#215197

Postby stevensfo » April 15th, 2019, 3:06 pm

It's not the custody fees that I find annoying, but rather the way that they're taken from the 'Cash' part of the ISA account and not the Trading Account.

What I mean is, before the last changes, every 3 months I used to make sure that I transferred..20 pounds?...to the Trading account to pay the custody fee. i.e. the fee was not taken from the cash in the ISA account.

After the change, they ignored the money I transferred over for the Custody fee and took the fee straight from my ISA cash. Since I'm currently using AJBell and not adding additional funds to ii, this means that the custody fee is now always paid from dividends received, something I feel is unfair. Surely a custody fee should be outside the ISA contributions?

An email of complaint and demand for explanation got some bland unhelpful reply that was of no use whatsoever.


Steve

tjh290633
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Re: Interactive increases monthly charge

#215255

Postby tjh290633 » April 15th, 2019, 6:54 pm

There are some brokers who take the management fees from your bank account direct, rather than from your ISA or trading account.

TJH

Bouleversee
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Re: Interactive increases monthly charge

#215270

Postby Bouleversee » April 15th, 2019, 8:48 pm

I find the whole thing irritating. I really don't want to spend time working out which scheme is best for me. I am in theory in the process of switching to ITs largely, otherwise AIM shares, but in practice it will take some time and since I don't have much spare cash in my ISA (which is showing a thundering loss overall so no top slicing indicated) and almost none in my dealing acct. I don't trade very often, usually only when a holding gets taken over but more often they go bust. All far too complicated and I probably ought to move out (especially since this account seems to be jinxed) but where to? I have most of my ISA shares, and quite a few non-ISA holdings, with Iweb but do I want to have all my money with them and will they follow the trend and put their fees up, too? I need to think about that. All a bore.

felixcanis
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Re: Interactive increases monthly charge

#215330

Postby felixcanis » April 16th, 2019, 8:21 am

stevensfo wrote:It's not the custody fees that I find annoying, but rather the way that they're taken from the 'Cash' part of the ISA account and not the Trading Account.


That's not how Interactive do our accounts - the £22.50 is taken from the Trading account cash, not the ISA cash. I messaged them when the £22.50 charge was introduced and they confirmed the order they use to take the charges - firstly via a direct debit if set up via the account. If no direct debit is present they try to take from the trading account cash. If there are insufficient funds in that account, they will use ISA cash.

Interactive have not touched our ISA cash - unlike Youinvest AJBell who take their fees from the individual accounts. Last time I asked Youinvest had no plans to change this procedure.

FelixC


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