Remove ads

Introducing the LemonFools Personal Finance Calculators

Low Cost/Free Brokerage Account

Investment discussion for beginners. Why you should invest your money, get help getting started
YeeWo
2 Lemon pips
Posts: 216
Joined: November 5th, 2016, 10:12 am
Has thanked: 40 times
Been thanked: 29 times

Low Cost/Free Brokerage Account

#106909

Postby YeeWo » December 31st, 2017, 8:56 am

A colleague of mine was just asking about buying some Stocks. Can anybody recommend a Provider that will not levy any ongoing fees and will allow him to buy both London and New York listed securities?

(Disc. I'm with HSBC InvestDirect+ which probably wouldn't work in this case as HSBC do levy a small quarterly charge which is fine in the context of my portfolio value but would be ridiculous for a small portfolio!)

nmdhqbc
2 Lemon pips
Posts: 135
Joined: March 22nd, 2017, 10:17 am
Has thanked: 10 times
Been thanked: 23 times

Re: Low Cost/Free Brokerage Account

#106920

Postby nmdhqbc » December 31st, 2017, 9:39 am

I use iWeb - £25 opening fee. Then just £5 per transaction. So 5 transactions and you've made up the £25 opening fee compared to most other brokers. I've never done the foreign share buying thing though but this page seems to talk about it so they must. I don't know how that 1.5% currency charge compares to others so that may need comparing.

http://www.iweb-sharedealing.co.uk/char ... harges.asp

nmdhqbc
2 Lemon pips
Posts: 135
Joined: March 22nd, 2017, 10:17 am
Has thanked: 10 times
Been thanked: 23 times

Re: Low Cost/Free Brokerage Account

#106923

Postby nmdhqbc » December 31st, 2017, 9:47 am

One thing to note. From time to time I come across a fund that's not available in iWeb so I have a Hargreaves Lansdown account (non-ISA so no yearly charge unless I hold a fund) for those.

GeoffF100
Lemon Slice
Posts: 836
Joined: November 14th, 2016, 7:33 pm
Has thanked: 22 times
Been thanked: 118 times

Re: Low Cost/Free Brokerage Account

#111866

Postby GeoffF100 » January 19th, 2018, 12:39 pm

iWeb is fine for UK shares, UK bonds and a variety of funds. You can also trade overseas shares, but this is not economic because of the high foreign exchange fees, and because you cannot hold foreign currencies in the account. IG Index is better for overseas shares, but it has a custody fee, so it is not suitable for small investors.

BobGe
2 Lemon pips
Posts: 112
Joined: November 5th, 2016, 12:49 am
Has thanked: 74 times
Been thanked: 17 times

Re: Low Cost/Free Brokerage Account

#112052

Postby BobGe » January 20th, 2018, 12:30 pm

Within other TLF threads X-O has been suggested as being 'fee lite' and worth a look. I've no experience myself.
http://www.x-o.co.uk/our_charges.htm

GeoffF100
Lemon Slice
Posts: 836
Joined: November 14th, 2016, 7:33 pm
Has thanked: 22 times
Been thanked: 118 times

Re: Low Cost/Free Brokerage Account

#112067

Postby GeoffF100 » January 20th, 2018, 1:19 pm

x-o is more expensive than iWeb (except for the SIPP, which is very cheap), and you cannot hold bonds or foreign shares in the account. With x-o, you are putting your money with a small broker rather than a large bank (Lloyds).

BobGe
2 Lemon pips
Posts: 112
Joined: November 5th, 2016, 12:49 am
Has thanked: 74 times
Been thanked: 17 times

Re: Low Cost/Free Brokerage Account

#113165

Postby BobGe » January 25th, 2018, 1:00 am

I presume iWeb charge a £2 set-up fee for each limit order (and amendment) as do HSDL. Most other providers seem to offer this for free. I have to say it puts me off using limit orders with HSDL even if they discount the fee value should a trade execute.

Maylix
Posts: 28
Joined: November 4th, 2016, 12:16 pm
Has thanked: 19 times
Been thanked: 3 times

Re: Low Cost/Free Brokerage Account

#113168

Postby Maylix » January 25th, 2018, 2:02 am

BobGe wrote:I presume iWeb charge a £2 set-up fee for each limit order (and amendment) as do HSDL. .


FYI, iWeb charge that for their normal dealing accounts, but not in their ISA's. From their website::
'For ISAs and SIPPs there is no charge to set-up a TradePlan and standard commission rates apply to a trade carried out under a TradePlan in a Stocks and Shares ISA or a SIPP.'

HTH
Maylix

BobGe
2 Lemon pips
Posts: 112
Joined: November 5th, 2016, 12:49 am
Has thanked: 74 times
Been thanked: 17 times

Re: Low Cost/Free Brokerage Account

#113374

Postby BobGe » January 25th, 2018, 9:37 pm

Maylix wrote:iWeb... not in their ISA's. From their website::
'For ISAs and SIPPs there is no charge to set-up a TradePlan and standard commission rates apply to a trade carried out under a TradePlan in a Stocks and Shares ISA or a SIPP.

Given HSDL also levy a £12.50p.a. reoccuring fee for ISAs (iWeb don't) that makes HSDL seem lke a bit of a rip-off then!

GeoffF100
Lemon Slice
Posts: 836
Joined: November 14th, 2016, 7:33 pm
Has thanked: 22 times
Been thanked: 118 times

Re: Low Cost/Free Brokerage Account

#113392

Postby GeoffF100 » January 26th, 2018, 7:37 am

Given HSDL also levy a £12.50p.a. reoccuring fee for ISAs (iWeb don't) that makes HSDL seem lke a bit of a rip-off then!


The Halifax branded accounts and iWeb are both HSDL, operated by the same staff. The Halifax branded accounts have some additional features, e.g. telephone dealing. If you do not need any of the additional features, iWeb is the best buy.

BobGe
2 Lemon pips
Posts: 112
Joined: November 5th, 2016, 12:49 am
Has thanked: 74 times
Been thanked: 17 times

Re: Low Cost/Free Brokerage Account

#113748

Postby BobGe » January 27th, 2018, 11:52 pm

GeoffF100 wrote:The Halifax branded accounts and iWeb are both HSDL, operated by the same staff.

My point entirely.
GeoffF100 wrote:The Halifax branded accounts have some additional features, e.g. telephone dealing.

Yes, at £25 per trade, whereas iWeb is still a fiver, isn't it? (It used to be so.)

GeoffF100
Lemon Slice
Posts: 836
Joined: November 14th, 2016, 7:33 pm
Has thanked: 22 times
Been thanked: 118 times

Re: Low Cost/Free Brokerage Account

#113754

Postby GeoffF100 » January 28th, 2018, 7:07 am

GeoffF100 wrote:
The Halifax branded accounts have some additional features, e.g. telephone dealing.
Yes, at £25 per trade, whereas iWeb is still a fiver, isn't it? (It used to be so.)


Yes, but some people are scared of the Internet. Others cannot cope with it. iWeb is no use to them. iWeb has other restrictions too.

For most people, iWeb is much the better deal, but you have to be savvy enough to find it, find out that it is part of HSDL, and that HSDL is owned by Lloyds Bank. Lots of people cannot manage that, and as with lots of things, there is cheap version if you shop around, and a heavily advertised expensive version with a fancy brand name.

If you have an iWeb account, be thankful that you are being subsidised by the people with Halifax branded accounts, and hope that you never need one of the features that iWeb does not have.


Return to “How Do I Invest”

Who is online

Users browsing this forum: No registered users and 1 guest