The Lemon Fool

If we want to buy and hold a simple portfolio consisting of something like a global equity index tracker ETF plus a global bond index tracker ETF (outside either a SIPP or an ISA because we don't have either of those), it seems to me that we need a platform like Halifax or iWeb that only charges for the deal, not something like Vanguard or HL which charge an ongoing percentage.

Am I correct, or does paying an ongoing percentage give us something extra that I'm failing to see? Total amount would be in the 6-figure range.

sloth wrote: does paying an ongoing percentage give us something extra that I'm failing to see?

Worth checking the small print. Those charging as percentage of value like Hargreaves will usually cap the annual charge at a fairly low amount to make them competitive for larger asset values.
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Alaric wrote:Worth checking the small print. Those charging as percentage of value like Hargreaves will usually cap the annual charge at a fairly low amount to make them competitive for larger asset values.
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For non-ISA/SIPP accounts I don't think HL have a % charge. But their fee for trades is still higher than iWeb for instance.
Not a complete rip off like holding open ended funds? Yes. Competitive? Not really.

What are you going to do with the dividends? If reinvestment then there will be charges for that.

Scott.

If you are buying ETFs, like Vanguard VWRL, which pay dividends in dollars, some platforms like HL compulsorily convert each divi into Sterling (at a fee) and don't allow you to hold a USD cash account. This may be a factor in your choice of broker.

swill453 wrote:What are you going to do with the dividends? If reinvestment then there will be charges for that.

Scott.

True.

Looking at Monevator's comparison table, with iWeb for example that would be £5 per deal which still makes it cheaper than paying somebody say like Vanguard 0.15% of my total holdings (I see that's capped at £375) which is why I just wanted to ask whether paying that £375 was providing me with something apart from free dealing.

I've had a simple Halifax Sharebuilder account for many years and only pay for the transactions. One advantage, apart from the three or four very cheap 'share buying' days per month is the monthly Cheap dealing day when it costs 3.95 to sell as well as buy, useful for those rare times when you may want to re-balance or just get rid of a holding.

I think i-Web is part of Halifax/Lloyds.

Steve