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Switch from Interactive Investor

Discuss Brokers, trading, fees, experiences
blueskies
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Switch from Interactive Investor

#195119

Postby blueskies » January 20th, 2019, 8:03 pm

Hi all,

This is my first post and I'd like to begin by saying that I've found the posts on this forum very useful from my days of lurking.

I've decided to take the plunge and register by posing a question to you all:

I have a Portfolio of shares worth around (20K) in a S&S ISA with ii (originally TD Direct). I am a buy and hold investor and the only trades I really make are to reinvest my dividends.

One thing I liked about TD was they didn't charge an admin fee for holdings over £5K. Obviously this has changed with ii. The new structure of quarterly charges as trading credits confuses me a bit.

I guess, what I'm asking is if there's a better/cheaper broker to switch to or sticking with ii.

Many thanks in advance.

Itsallaguess
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Re: Switch from Interactive Investor

#195121

Postby Itsallaguess » January 20th, 2019, 8:22 pm

blueskies wrote:
One thing I liked about TD was they didn't charge an admin fee for holdings over £5K.

Obviously this has changed with ii. The new structure of quarterly charges as trading credits confuses me a bit.


Hi blueskies,

Welcome to the Lemon Fool.

Depending on your trading-requirements, the Interactive Investor trading-credits might lessen the blow of the £22.50 quarterly charges.

This is from their charging-sheet -

Quarterly payment

  • £22.50 per customer
  • In return for your quarterly payment we look after your assets securely and give you £22.50 of trading credits which you can use towards trading commissions as detailed below.
  • Your quarterly payment will be calculated on the next 8th of a month following account opening, collected shortly thereafter, and will be then payable every 3 months.
  • Quarterly payments are not refundable and will continue to be collected if your trading credits are not used.
  • Trading credits do not expire, however the maximum value of trading credits you can accrue is £90.
  • Trading Accounts, ISAs and SIPPs that are held in the same individual name can be linked together.
  • You'll make one quarterly payment and can use your trading credits for trades in any of your linked accounts.
  • Joint accounts and other types of account cannot be linked - a separate quarterly payment will be payable and you'll receive
    trading credits for each quarterly payment you make.

https://media-prod.ii.co.uk/s3fs-public/pdfs/rates_and_charges_uk.pdf


This is Money did an article at the end of last year, looking at the different self-select shares-ISA accounts available, and comparing their different charges, so it may well be worth you taking a look at this -

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

Cheers,

Itsallaguess

wydffa
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Re: Switch from Interactive Investor

#195127

Postby wydffa » January 20th, 2019, 8:39 pm

I moved my ISA and stocks/shares accounts to iweb and have had no problem with them. After the one-off joining fee there are no charges - so far- for holding the ISA. Buying/selling costs £5.
They do not offer Lindsell Train open-ended funds, I think because the funds are domiciled in Ireland.

Lootman
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Re: Switch from Interactive Investor

#195129

Postby Lootman » January 20th, 2019, 8:42 pm

Itsallaguess wrote:[*]In return for your quarterly payment we look after your assets securely and give you £22.50 of trading credits which you can use towards trading commissions as detailed below.

I love how ii presents not losing your assets as a marketing positive :D

I also moved from TD to ii and I can't say I am totally happy. The quarterly charge is irksome given that TD charged (me) nothing. But I easily make a couple of trades a quarter so it's not a big deal. And as a percentage of my accounts it is trivial. Moreover most other brokers charge something, or else probably soon will. Moving accounts around to avoid that will be as futile as swapping savings accounts on the basis of current savings rates.

I felt happier with TD standing behind my accounts as they are one of the strongest banks on the planet. ii is privately held but then, for that matter, so are Fidelity and Vanguard.

I like that the TD interface and back office were carried over, partly because I am used to them, but partly because they are quite good compared with others I have seen.

That said I plan to move some of my assets from ii in order to spread the assets around. I have a lot with ii and it makes me feel nervous. I'm looking at HSBC as I have Premier banking with them. But mc2fool has said some persuasive things about iWeb (the old Halifax share dealing system?)

Alaric
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Re: Switch from Interactive Investor

#195134

Postby Alaric » January 20th, 2019, 8:59 pm

blueskies wrote: The new structure of quarterly charges as trading credits confuses me a bit.


They take a regular charge. In return they let you have a handful of trades without trading commission.

The old contract notes from the tddirect era should still be there. Look back and see how much you used to be charged as commission.

Dod101
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Re: Switch from Interactive Investor

#195145

Postby Dod101 » January 20th, 2019, 9:40 pm

I currently have my main ISA and a SIPP with Alliance Trust Savings but they are being sold to II and like others, I had another ISA with TD Investing to spread my risk. Now I will have all my investment assets with II and irrespective of the charges I would feel most uncomfortable. My plan therefore is to let it all be consolidated (if that is their plan) and then like Lootman probably shift half of it to HSBC where I am also a Premier customer.

The II service, charges and website seem acceptable to me but I cannot have all my assets in one basket. In your position? I would probably leave them with II pro tem.

Dod

doug2500
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Re: Switch from Interactive Investor

#195189

Postby doug2500 » January 21st, 2019, 8:41 am

It's not quite correct to say Iweb are the old Halifax share dealing. Iweb are owned by HBOS and as far as I can tell is the same website with different colours.

AFAIUI you can also get an account with BOS and Halifax which are the same but with slightly different charges.

dspp
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Re: Switch from Interactive Investor

#195216

Postby dspp » January 21st, 2019, 10:39 am

Overall I think that ii are either the lowest cost broker, or equal lowest, or the ones that are currently (occasionally) lower will be forced to raise their prices to stay viable.

Basically I don't think it is worth you moving.

just my 2c

regards, dspp

GPhelan
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Re: Switch from Interactive Investor

#195341

Postby GPhelan » January 21st, 2019, 5:34 pm

Anyone interested in platform costs should wait until late February when the Lang Cat consultancy publish their 2019 Direct Platforms guide. Lang Cat specialise in the platform area. They produce the cost 'heat charts' that you see in financial articles about investing costs. Their Direct guide is free to download, though you have to register, but they do not send spam.
You can obtain the 2018 guide here: https://www.langcatfinancial.co.uk/prod ... a-go-2018/ It helps if you like cats.

blueskies
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Re: Switch from Interactive Investor

#195351

Postby blueskies » January 21st, 2019, 5:59 pm

Many thanks to you all for your replies, they are most helpful.

I must say it is rather fustrating that there aren't any other major brokers offering to hold your shares without charging an Admin fee. but given the amount I would have to spend on transferring shares, it seems I'm better off where I am for the moment.

It does seem strange to me in these days of challenger and mobile app banks like Monzo & Atom that there hasn't been some sort of similar effect in the stock broking market. I know Revolut are planning a Share Dealing platform, but information about the service is a bit thin on the ground and probably unlikely to have an ISA option when they start.

Hopefully in the not too distant future someone will come along to stir up the market.

Lootman
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Re: Switch from Interactive Investor

#195353

Postby Lootman » January 21st, 2019, 6:07 pm

blueskies wrote:Many thanks to you all for your replies, they are most helpful.

I must say it is rather fustrating that there aren't any other major brokers offering to hold your shares without charging an Admin fee. but given the amount I would have to spend on transferring shares, it seems I'm better off where I am for the moment.

It does seem strange to me in these days of challenger and mobile app banks like Monzo & Atom that there hasn't been some sort of similar effect in the stock broking market. I know Revolut are planning a Share Dealing platform, but information about the service is a bit thin on the ground and probably unlikely to have an ISA option when they start.

Hopefully in the not too distant future someone will come along to stir up the market.

By contrast all of the major US retail brokers I know about charge nothing for managing assets. There may be a minimum amount to qualify for a free account, and accounts with no activity may see some kind of fee. But the vast majority of US private investors enjoy free services. US brokers focus on bringing in assets under management and presume that the revenues will follow the assets.

Moreover the average commission in the US is between $5 and $7 - about half the UK commission rate. And no stamp duty of course.

So I think you are correct that there is an alternative, but UK brokers seem determined to nickle, dime and fee people to death here.

1nvest
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Re: Switch from Interactive Investor

#225868

Postby 1nvest » May 31st, 2019, 8:20 pm

Prompted by yet another 'your account is locked' from ever changing iii I found this web site via a google search. First post is basically a question as to what do others use/propose for a stable/consistent brokerage for someone who trades very little (once/month login to validate things look OK, once/year to make adjustments).

I was with TD for years, loved the consistency and stability and since taken over by iii its got to the 'anger' point that its just pointless me continuing with them. I do have multiple (linked) accounts with iii all rolled up into one. So ideally would prefer a alternative to which I might just transfer those accounts.

I bank with HSBC for a current account and I'm somewhat inclined to visit them in order to get them to take on the brokerage, but before I do I thought I'd put out a shout here. Ignorant as I am even direct certificate holding would be acceptable (accept higher trading costs to trade directly held certificates), but I believe that's no longer a option? Thanks in advance.

Itsallaguess
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Re: Switch from Interactive Investor

#225871

Postby Itsallaguess » May 31st, 2019, 8:30 pm

1nvest wrote:
Prompted by yet another 'your account is locked' from ever changing iii I found this web site via a google search.

First post is basically a question as to what do others use/propose for a stable/consistent brokerage for someone who trades very little (once/month login to validate things look OK, once/year to make adjustments).


I've got an ISA shares account with Interactive Investor and have never had any issues with it, and certainly haven't had the lock-out issues you seem to be experiencing.

I just wanted to raise my experience with Interactive Investor to add a little balance to the many new posters that seem to have cropped up with issues recently..

I've also got an ISA shares account with AJBell, who I also rate highly.

Cheers,

Itsallaguess

Alaric
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Re: Switch from Interactive Investor

#225927

Postby Alaric » June 1st, 2019, 8:09 am

1nvest wrote:Prompted by yet another 'your account is locked' from ever changing iii I found this web site via a google search. First post is basically a question as to what do others use/propose for a stable/consistent brokerage for someone who trades very little (once/month login to validate things look OK, once/year to make adjustments).


ii continued to use the tddirect platform. Other users have reported no such problems. Maybe you are using multiple devices. I don't trade very often either, but I do look in every few days to keep track of dividend receipts. Perhaps how often you login makes a difference.

Dod101
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Re: Switch from Interactive Investor

#225954

Postby Dod101 » June 1st, 2019, 11:00 am

1nvest wrote:I bank with HSBC for a current account and I'm somewhat inclined to visit them in order to get them to take on the brokerage, but before I do I thought I'd put out a shout here. Ignorant as I am even direct certificate holding would be acceptable (accept higher trading costs to trade directly held certificates), but I believe that's no longer a option? Thanks in advance.


Certificated holding is still an option, although an expensive one to buy and sell but if you are looking at LTBH it makes sense. In time certs are going to be phased out and on another thread this week someone said 2025 is the final date but it seems to keep moving forward. Certs also have the benefit that you do not need to worry about the security of a platform.

As for HSBC I am also a customer on the banking side and have opened this year's ISA with them to see how I get on. A bit of a hassle to set it up but that may be just not being familiar with their system. I would rather have them backing me than J C Flowers.

Dod

dspp
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Re: Switch from Interactive Investor

#226013

Postby dspp » June 1st, 2019, 3:59 pm

I'm with ii and manage four separate accounts. I've never had a login issue even during the Web platform transition they did. In the last week or so they changed the login process slightly to to require full password as opposed to random selected characters. But this did not change anyone's passwords at all. I happen to prefer the new way.

Anyway if ever there is an issue the call centre staff are always most helpful, not that I have needed them for password stuff.

In short I am not convinced by many of the criticisms of ii that are being raised, and which seem rather contrived to me. Each to their own however.

Regards, dspp

Lootman
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Re: Switch from Interactive Investor

#226075

Postby Lootman » June 1st, 2019, 7:39 pm

dspp wrote:In the last week or so they changed the login process slightly to to require full password as opposed to random selected characters. But this did not change anyone's passwords at all. I happen to prefer the new way.

Yeah, I noticed that too. I'm not sure whether it is more or less secure. Having to enter only part of the password means that if anyone detected your keystrokes, they still could not access your account. But needing all 12 characters makes it less likely that someone would get it right by accident.

1nvest
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Re: Switch from Interactive Investor

#226117

Postby 1nvest » June 2nd, 2019, 2:58 am

I do use different (clean) devices and I'm cautious about validating the connection i.e. validate the ssl fingerprint via local command line, remote server command line and match that to the fingerprint as shown in the browser. The login screen/procedure changing does generate a concern for me, where I'm more inclined to run a test login using a intentional invalid password just to check its timing/routing. Which can result in lockouts relatively easily (3 (?) attempts failure). I don't like entering a full password either as is now the required case. Changes introduce potential bugs and security bugs are just like any other bug, but that weaken security, and ii seem, at least to me, to be regularly making changes and in so doing increasing security risk.

Thanks for all of the replies. Others (not here) have also provided some useful pointers for alternatives and I'll be investigating/reviewing those along with the ones suggested here and hopefully should migrate my accounts within the next week or two.

johnhemming
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Re: Switch from Interactive Investor

#226118

Postby johnhemming » June 2nd, 2019, 6:53 am

What I personally prefer is a system whereby a message digest is sent to the server and not the password. That means that if the password database is compromised it is not much use for people as even if they have used the same password elsewhere.

There is also an advantage when the whole password is provided as you can rely on chrome or other systems to put it in. It is not unreasonable for transactional systems to require something to be typed in or TFA or some additional process, but just for looking up portfolios it is a pain having to type in the password. (or some other information).

I do have an account with ii.

TedSwippet
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Re: Switch from Interactive Investor

#226125

Postby TedSwippet » June 2nd, 2019, 8:33 am

Lootman wrote:I'm not sure whether it is more or less secure. Having to enter only part of the password means that if anyone detected your keystrokes, they still could not access your account. But needing all 12 characters makes it less likely that someone would get it right by accident.

This paper contains some analysis: http://groups.inf.ed.ac.uk/security/passwords/pps.pdf

It concludes that overall, partial passwords may provide only modest extra protection against recording, and are probably more susceptible to guessing and letter frequency attacks than full ones.


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