The Lemon Fool

SalvorHardin wrote:Two good things about Bank of Montreal.
......
I hold my Foreign & Colonial shares solely through BMO's monthly savings plan. I'm also a Bank of Montreal shareholder

To be clear, I was joking when I maligned BMO. If I really had any concerns I would also avoid FCIT rather than increasing my holding. They do after all manage that investment trust.

Regarding FCIT being well diversified, it IS. However some of us wish less diversification or to increase our holdings in certain areas. Or possibly to be less reliant upon US tech stocks. FCIT is over 50% US invested and six of it's top 10 holdings are tech stocks.

I hold both FCIT and BGSC managed by BMO. I could do so with one of their accounts. However I also own SMT and PHI, which I could not as they are run by Baillie Gifford. I would have to have more than one account.... which in fact I do. However where possible I avoid accounts that restrict me to in-house funds/trusts.

Ps, before anyone point's it out, SMT is NOT well diversified and has a VERY significant holding in one US tech stock. Those facts are reasons either to avoid or to invest, depending upon your view.

LooseCannon101 wrote:Urbandreamer -

Looking at AJ Bell's fees for holding an ISA I see that they charge 0.2% of assets. BMO Asset Manager savings plan only charges me £72 per year. If I were to use AJ Bell I would be paying over £1k per year.

I understand that having multiple investment trusts in a world equity portfolio might give someone a greater sense of security, but I doubt if someone could achieve a more diverse portfolio than that of F&C Investment Trust with about 450 companies.

BMO Asset Management uses JP Morgan Chase as its custodian bank to safeguard customer securities. JP Morgan Chase is one of the top 5 biggest custodian banks in the world.

Hargreaves Lansdown were recommending Neil Woodford's Equity Income Fund - one of the worst performing funds. The charging structure of online platforms may be transparent for the investor, but the charging structure for the funds on a platform can give perverse incentives.

PNL (Personal Asset Trust) has a arrangement with ii where if you only hold PNL shares in your ii account then PNL pays all of the ii fees (including dividend reinvestment) https://lemonfool.co.uk/viewtopic.php?p=421474#p421474. Seems like a somewhat similar setup however ii's custodial system looks less secure/stable https://www.ii.co.uk/about-ii/your-protection and I suspect the compensation cover is less deep and less secure compared to having JP Morgan Chase being the custodial.

I like the idea of a BMO multiple/shared/joint-account General Account costing £40/year + VAT, alongside individual ISA's costing £20/year each + VAT. Grandad with two grandchildren single joint general account and three ISA accounts, £120/year including VAT. Assuming that FCIT was considered a acceptable single holding. More generally however I suspect a similar structure could be established for much the same or less. For instance freetrade has no general account fee and charges £3/month for ISA (and seems to use CREST as its 'custodial'). And where you can trade a much broader range of assets. Adding 3 SIPP's under freetrade increases that by £10/month each (£360/year for 3 accounts). Can't find any details for a BMO SIPP so assume they don't cater for such.

I haven't seen Saxo mentioned on this thread - I need an alternative to etoro and trading 212, but as I still don't have that much to invest low fees are still a priority. SO FAR Saxo has been quite reliable but I was wondering if anyone has more experience with them or if there is anything I should avoid? Thanks

Greenland9 wrote:I haven't seen Saxo mentioned on this thread - I need an alternative to etoro and trading 212, but as I still don't have that much to invest low fees are still a priority. SO FAR Saxo has been quite reliable but I was wondering if anyone has more experience with them or if there is anything I should avoid? Thanks

Most people here stick with the big platforms, mostly iWeb, Interactive Investor, Youinvest, and Hargreaves Lansdown. Most of us avoid the likes of eToro, Trading 212 and Saxo. Vanguard is cheap for small accounts, and is is reasonably priced for larger accounts, but only if you have a SIPP with them. Most platforms charge extra for holding open ended funds, but some do not (notably iWeb and Interactive Investor).

GeoffF100 wrote:

Greenland9 wrote:I haven't seen Saxo mentioned on this thread - I need an alternative to etoro and trading 212, but as I still don't have that much to invest low fees are still a priority. SO FAR Saxo has been quite reliable but I was wondering if anyone has more experience with them or if there is anything I should avoid? Thanks

Most people here stick with the big platforms, ... Most of us avoid the likes of eToro, Trading 212 and Saxo.

Just to add to this. It isn't because we don't trust these newbies. I'm sure they'll do a fine job.

But there is a long history of new startup brokers being created, using cheap fees to build up a large customer base, and then selling out to the bigger and more expensive brokers. Leaving all their customers faced with paying the new larger fees, or the upheaval of porting your investments to another platform. That's why we prefer to stick to the long established players.

If cost is your main driver go with iWeb/Halifax. IME they can be a little slower, harder to contact and fewer options than their slightly more expensive rivals, but they get there eventually. They've been going for years, have a big backer, and are less likely to be absorbed by a larger rival.
The likes of AJBell, HL & II charge only a little more. But are generally quicker, more options, and have much better customer service if you need to speak to someone.

Gryff

The small players do go bust occasionally. SVS is a recent example. If you have many times the compensation limit per broker, I would be much more inclined to go with iWeb/Halifax (which is owned by Lloyds bank) than Freetrade or Trading 212 for example.

There are a few things that a new investor should keep in mind when getting started in the market. Firstly, it's important to do your research and understand what you're investing in. Secondly, always be mindful of your risk tolerance and invest accordingly. And finally, don't forget to stay disciplined with your portfolio and rebalance as needed. These are just a few tips to get you started, but there is plenty of other advice out there for new investors. Do your own research and find the resources that work best for you. Good luck!

Daffers wrote:I am completely new to investing and I am looking for some advice on stock brokers. My plan is to manage my own portfolio so my understanding is I need a stock broker to buy them for me. Any advice on where I should look, and what are the important factors when selecting a stock broker would be greatly appreciated! Thank you!

Welcome to The Lemon Fool!

I use iWeb. They have a simple website, and provide a comparatively cheap simple service. (You can get cheaper elsewhere at the cost of having fixed trading days, which might be completely acceptable to you.)

I am in no way connected with them other than being a satisfied customer. I have been investing for about 23 years with various brokers both in the UK and in Germany.

Regards,
Chris