Halifax Share Dealing

hiriskpaul
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Halifax Share Dealing

Postby hiriskpaul » December 13th, 2016, 6:18 pm

I have been looking for an appropriate broker for family members to use for their ISAs. They are currently at Youinvest, but the recent changes to charges makes Youinvest sub optimal. A good alternative option appears to be Halifax Share Dealing. I use iWeb and so am familiar with the service, but the £200 account opening fee unfortunately rules out iWeb.

One question I have about Halifax is with what they call the "Scheduled regular investments" service at £2 per trade. Can someone tell me how this works and what the restrictions are? Would it be possible for example to use this service to make a one-off purchase of say half a dozen tracker funds from a single £10k ISA deposit? Or does the service require a regular standing order be set up? Also, is the service available across all funds, ETFs, ITs and shares or restricted to a subset?

staffordian
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Re: Halifax Share Dealing

Postby staffordian » December 13th, 2016, 6:33 pm

The scheduled regular investments facility is as flexible as you want it to be.

You give them your debit card details and then you control how your account is funded, you can switch on and off the subscriptions at will. There is a published timetable for funding and for the purchasing.

I usually just set up a regular monthly subscription, then when the amount saved builds up, I make a one off investment by selecting the share I want and the date I want to purchase it from the available dates.

The investment decision can be made up to the day before the relevent date.

I don't buy funds, only stocks and ITs so can't help you with what part of your query, I'm afraid.

All in all, I'm very happy with their service and would recommend it.

Staffordian

hiriskpaul
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Re: Halifax Share Dealing

Postby hiriskpaul » December 13th, 2016, 9:03 pm

By the sound of it then, the Halifax system is similar to that offered by Youinvest. Am I right in saying that purchases are completely unrelated to standing orders?

Let's say someone sold an investment for £10k. They then wanted to invest £5k in 2 shares, ITs or ETFs. To take advantage of the £2 dealing fee, is that done by setting up a "Scheduled Regular" investment of £5k in each of those securities and then cancelling future investments once the 2 trades have been completed?

Also, how frequent is the "Schedule"? Monthly, quarterly?

staffordian
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Re: Halifax Share Dealing

Postby staffordian » December 13th, 2016, 10:20 pm

hiriskpaul wrote:By the sound of it then, the Halifax system is similar to that offered by Youinvest. Am I right in saying that purchases are completely unrelated to standing orders?

Let's say someone sold an investment for £10k. They then wanted to invest £5k in 2 shares, ITs or ETFs. To take advantage of the £2 dealing fee, is that done by setting up a "Scheduled Regular" investment of £5k in each of those securities and then cancelling future investments once the 2 trades have been completed?

Also, how frequent is the "Schedule"? Monthly, quarterly?


You are correct, though you don't need to set up regular purchases or regular subscriptions and then cancel them, you can simply set them up as one offs.

The "admin" page gives you independant options for subscription plans and for investment plans, and you can set up regular or one offs in each case.

There are roughly weekly dates for each, but they don't follow an exact pattern, ie they are not the same day each week. A link to a calendar for the following six months is available on the set up page.

Staffordian

hiriskpaul
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Re: Halifax Share Dealing

Postby hiriskpaul » December 13th, 2016, 10:26 pm

Thanks, that all sounds good. I think iWeb used to have something similar, but for some reason stopped it a while ago.

I have just noticed that Halifax have reduced commission trading tomorrow as well. £3.95 for buys AND sells, but you need to trade between 12:15pm and 2:15pm. Do they do that often?

AleisterCrowley
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Re: Halifax Share Dealing

Postby AleisterCrowley » December 13th, 2016, 10:29 pm

About monthly these days.
(I'm happy with HSDL/Halifax - pretty reasonable service and charges)

staffordian
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Re: Halifax Share Dealing

Postby staffordian » December 13th, 2016, 10:48 pm

hiriskpaul wrote:Thanks, that all sounds good. I think iWeb used to have something similar, but for some reason stopped it a while ago.

I have just noticed that Halifax have reduced commission trading tomorrow as well. £3.95 for buys AND sells, but you need to trade between 12:15pm and 2:15pm. Do they do that often?



They will email you about a week ahead of each of these, so you do get time to consider whether to use them.

Staffordian

AleisterCrowley
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Re: Halifax Share Dealing

Postby AleisterCrowley » December 13th, 2016, 10:56 pm

Off topic a bit: They did have a CFD option as well, but I can't find it

hiriskpaul
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Re: Halifax Share Dealing

Postby hiriskpaul » December 13th, 2016, 11:55 pm

AleisterCrowley wrote:Off topic a bit: They did have a CFD option as well, but I can't find it


iWeb used to offer them as well, although I think this was through a third party. No mention on the iWeb site any more either.

kempiejon
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Re: Halifax Share Dealing

Postby kempiejon » December 14th, 2016, 7:12 am

hiriskpaul wrote:By the sound of it then, the Halifax system is similar to that offered by Youinvest. Am I right in saying that purchases are completely unrelated to standing orders?
...
Also, how frequent is the "Schedule"? Monthly, quarterly?


As has been mentioned the buys and fundings are unrelated and the regular investments can be used as one off buys. Halifax have 4 or 5 regular investment days each month.

stevensfo
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Re: Halifax Share Dealing

Postby stevensfo » December 14th, 2016, 5:09 pm

As has been mentioned the buys and fundings are unrelated and the regular investments can be used as one off buys. Halifax have 4 or 5 regular investment days each month.


Yes. I am with both Halifax and AJBell (youinvest) and the latter has only one cheap buying day per month whereas Halifax has more.

The advantage that Halifax has, as somebody has already said, is the monthly 'Cheap dealing day' for 3.95 which is for both buying AND selling. Excellent for cheap rebalancing or whatever.

Shame that AJBell doesn't have this.

Steve

simoan
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Re: Halifax Share Dealing

Postby simoan » December 14th, 2016, 5:12 pm

stevensfo wrote:Shame that AJBell doesn't have this.

Steve

But not at all surprising given their modus operandi! It wouldn't look very good in the IPO prospectus either ;-)

All the best, Si

BobGe
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Re: Halifax Share Dealing

Postby BobGe » December 15th, 2016, 6:29 am

As others have mentioned above, the automated 'Regular investment' function can be just a single investment (buy) or a 'one time' investment of several instruments. Likewise an automated 'subscription' funding which has to be set up and executed 3 business days in advance of the investment day. But it doesn't have to be. You can fund it via a registered debit card manually, so long as there are cleared funds in the cash account the day before the scheduled 'regular investment' date, i.e you can do it the day before. A limitation is that you can only register one debit card on the system - meaning you can only fund from one 'linked' bank account in practice. Before 'faster payments' it needed to be a Halifax bank account for speed, or perhaps a clearing bank. Presumably any bank on the faster payments system might now suffice?

IIRC, I think the 'regular investment' function was originally attached to a 'Sharebuilder Account' but now functions with any Hx account.

Halifax won't allow you to buy anything they think is 'risky' nowadays. Hence CFDs are are surely a no-no. They think some bonds etc. are too risky (usually assessed by rating) and I'm told some shares too, although I've not seen an example of the latter being blocked. (I think they will happily allow you to 'speculate' on AIM fraud or deadloss outfits if you wish.) All clients are considered 'retail' and there is no facility to declare yourself as 'sophisticated investor' status. It is generally impossible to speak to a dealer. Hence no posibility to negotiate a trade.

You can place limit orders / sells and suchlike (they call it 'tradeplan') but they charge £2 each time. You get a £2 'discount' on the trade commission if and when it executes. Personally I don't see this as attractive. It's a fully automated function but it's almost like they are trying to discourage people from using it.

You can easily set up a DRIP, but beware that the DRIP commission is higher than it used to be. (IIRC, they doubled it.) It's a percentage 'cut' but often works out a lot more than the 'regular investment' fee!

Jon46
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Re: Halifax Share Dealing

Postby Jon46 » December 15th, 2016, 7:23 pm

On a different tack...

Having now received the expected unsatisfactory 'we make it look as if we do but don't really care' type answer to my complaint to BSL about increasing their charges, we will be definitely transferring out. The move to charging a percentage of the value of an equity portfolio is not acceptable to us anyway and sets a potentially nasty precedent.

As part of the research into what to do next, I have looked at the charging structure on Halifax diy ISAs, but can't see clearly what they charge for holding OEICs and UTs, of which we have a few, not many, being mostly in ITs, individual shares, prefs and the odd ETF and ORB bond.

Can somebody please clarify their charges for holding funds. I particularly hate 'ad valorem' uncapped charges based on a percentage of the value held in Funds, because it does not cost the platforms a bean more if you invest £1k or £1m as an individual, so it is plain 'theft' imho and can add up to increasingly quite a lot.

Jon

PS
I will miss the very good BSL features for setting limits and trailing stops, which I use quite a bit.

We also have ATS accounts, which are fine when you get used to them, but we are not keen in putting it all in one platform/broker basket.

BobGe
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Re: Halifax Share Dealing

Postby BobGe » December 17th, 2016, 3:34 am

AFAIK there are presently no charges for holding funds / oeics but there is an ISA flat-rate annual administration charge of £12.50.

https://www.halifax.co.uk/sharedealing/charges/

Why not give them a ring to confirm.

TahiPanas
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Re: Halifax Share Dealing

Postby TahiPanas » December 17th, 2016, 1:58 pm

I will definitely transfer out of Barclays following their new charging structure. I will do this with regret as I have been happy with them to date.

My preferred option was Halifax but I just found out that they don't do joint accounts.

Any suggestions for a new broker who accepts joint accounts? We are more or less fully invested and in the draw down stage. Transaction costs are therefore not critical. I like the bigger organizations such as banks for safety reasons. I am also transferring out of TDI, following the change of ownership.

Are HSBC any good, for example?

many thanks!

BrummieDave
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Re: Halifax Share Dealing

Postby BrummieDave » December 19th, 2016, 10:53 pm

Never considered having a joint account - what's the benefit of that pls?

Lootman
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Re: Halifax Share Dealing

Postby Lootman » December 20th, 2016, 12:08 am

BrummieDave wrote:Never considered having a joint account - what's the benefit of that pls?

One clear benefit is that upon death the value of your half of the account passes to your spouse or named beneficiary without having to go through probate and regardless of what your will says.

TahiPanas
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Re: Halifax Share Dealing

Postby TahiPanas » December 20th, 2016, 4:06 am

Lootman wrote:
BrummieDave wrote:Never considered having a joint account - what's the benefit of that pls?

One clear benefit is that upon death the value of your half of the account passes to your spouse or named beneficiary without having to go through probate and regardless of what your will says.


Spot on Lootman. To the maximum extent possible we have everything joint. Upon my descent to the perpetual flames, my wife has nothing to do. She just carries on as normal, owning the house and shares, overspending, etc. with no lawyers or executors required. Other things are covered by mirror wills.

Accounting for tax etc. is very easy; divide income by 2, multiply personal and dividend allowances by 2, and get a lower tax rate. That's all possible, of course, without joint ownership but it seems more of a hassle.

BrummieDave
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Re: Halifax Share Dealing

Postby BrummieDave » December 20th, 2016, 6:57 am

Wasn't aware of all that - so a joint share trading account providing dividend income could provide up to £10k tax free (ie £5k each)? And upon the death of the first named the dividend income will continue to flow but anything over £5k becomes taxable?

All as it would be in two single named accounts, but without the hassle of transferring the assets upon the first death.

Have I understood that correctly please?


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