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Advice about cheapest way of managing my small HYP portfolio

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DanUK
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Advice about cheapest way of managing my small HYP portfolio

#518900

Postby DanUK » August 1st, 2022, 7:51 pm

Hi,

A good few years ago I set up an account with TD Waterhouse to dabble in a HYP with any spare money I might have. I forget what the costs of TD Waterhouse were but I never took it that seriously and literally bought about 10 shares and 'fired and forgot'. TD got bought out by Interactive Investor and the charging structure changed, again I forget what it was but currently it is £9.99 a month where you get a 'free' £7.99 trade a month built in. It's about to lose the accruement of these £7.99 credits as these could be redeemed within 3 months, but that will disappear in September where it will be 30 days to spend this £7.99 trading credit.

It's only in the last year that I've started to look at what I want from the portfolio and whether it is making more money than it could be by putting it in a bank. In nutshell I now have about 15k of shares in an ISA in (currently) 18 higher yielding FTSE100 companies. There's a bit of imbalance in the holdings which has happened over the years i.e. I have a couple of grand in Astrazeneca right down to a couple of hundred quid in Royal Mail!

I've done some rough calculations, taking into account the monthly costs of the ii account, to assure myself it is doing better than the bank, which it is. These days I don't really have too much money set aside a month to put into it though, perhaps about £100 a month plus reinvesting whatever dividends a particular month provides. Even without sticking anything in, the dividend returns outweigh the running costs and give me more than a bank would. However, I'm wondering if there is a better approach as I don't really like to waste these 'credits' by not using them but then I get irked at 'spending' £7.99 for a monthly low value trade of £100 + whatever dividends I get a month. I don't think there's a cheaper way of doing it unless I cash in and go for something like a Vanguard account and its funds where the running costs are less but I then give up the ability to do anything 'exciting' or the ability to dabble. I guess I'm a bit lost with what to do with it for the best...

Any advice?

Thanks

Dan

monabri
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Re: Advice about cheapest way of managing my small HYP portfolio

#518903

Postby monabri » August 1st, 2022, 7:54 pm

Pay £50 one off and move to iWeb. Fill in the iWeb transfer form and move your shares from ii to iWeb.

Do it before 10th August. You will recover the 50 quid in 5 months of ii fees.

https://www.iweb-sharedealing.co.uk/our ... &WT.srch=1

Arborbridge
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Re: Advice about cheapest way of managing my small HYP portfolio

#518906

Postby Arborbridge » August 1st, 2022, 7:59 pm

Have a look at Halifax share dealing. They have a flat charge of £36 a year and if you buy with their regular investment scheme the dealing fee is £2. These dealing days are specified by Halifax so you just fit in with whenever they are happening.
Although it's "regular" dealing, you can make it just a single purchase, or repeating as you wish.

I've been with them for many years and it works for me. I think other people may have their own favourite brokers, and I'm sure they will be along soon.

https://www.halifax.co.uk/investing/sta ... sting.html

Arb.

monabri
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Re: Advice about cheapest way of managing my small HYP portfolio

#518911

Postby monabri » August 1st, 2022, 8:09 pm

Noting that iWeb and Halifax ( HSDL) operate under the same licence ( Lloyds Banking Group). From memory, TJH uses Lloyds as his trading platform, many use HSDL and many iWeb....but they are all under the Lloyd's licence. All provide a slightly different offering.

scrumpyjack
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Re: Advice about cheapest way of managing my small HYP portfolio

#518915

Postby scrumpyjack » August 1st, 2022, 8:14 pm

For an ordinary 'Fund & Share' account such as yours, with shares only in it, Hargreaves Lansdown charge nothing.
Dealing costs may not matter if you deal very infrequently?

DanUK
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Re: Advice about cheapest way of managing my small HYP portfolio

#518964

Postby DanUK » August 1st, 2022, 10:32 pm

Thanks, I'll see what my preferred trading habits are but looks like Halifax/Iweb or Hargreaves Landsdowne are better propositions than ii at the moment!

Thanks

Dan

Itsallaguess
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Re: Advice about cheapest way of managing my small HYP portfolio

#518990

Postby Itsallaguess » August 2nd, 2022, 6:02 am

DanUK wrote:
I don't think there's a cheaper way of doing it unless I cash in and go for something like a Vanguard account and its funds where the running costs are less but I then give up the ability to do anything 'exciting' or the ability to dabble.

I guess I'm a bit lost with what to do with it for the best


Don't get hung up on the idea that it needs to be one or the other though...

Why not consider allocating at least some level of capital to a cheap, boring, 'non-dabble' investment, and then see how you like it's longer-term performance when directly compared with your other 'more exciting' holdings?

I'm a great believer that comparing 'hypothetical' performance figures of different types of investments is one thing, but actually directly owning something and seeing it live alongside other types of directly-owned investments can often help to open an investors eyes to potential alternative approaches, so this might be a good time for you to consider doing something like that if you're looking at alternative providers and their particular charging structures...

Cheers,

Itsallaguess

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Re: Advice about cheapest way of managing my small HYP portfolio

#519022

Postby Hariseldon58 » August 2nd, 2022, 9:12 am

ii are reducing trading fees to £5.99 a time ( trading credit will fall to this level of course)

As mentioned HL regular account has no monthly fee and the isa is capped at £45 a year. Although trading charges seem relatively high now at £11.95 the reinvestment charges are lower.

I have used Halifax and it was ok, use ii and HL, HL platform is good for dealing and research.

ii have caught me out a few times and that has proved very expensive, some ETFs that trade without high fx charges on other platforms, ii have caught me out such that I don’t hold anything in ii that does not trade in GBP even then the dividends may come in $ on some ETFs..

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Re: Advice about cheapest way of managing my small HYP portfolio

#519026

Postby richfool » August 2nd, 2022, 9:23 am

monabri wrote:Pay £50 one off and move to iWeb. Fill in the iWeb transfer form and move your shares from ii to iWeb.

Do it before 10th August. You will recover the 50 quid in 5 months of ii fees.

https://www.iweb-sharedealing.co.uk/our ... &WT.srch=1

Yep, I would do as monabri suggests, -open a iWeb ISA or share dealing account. There's a one-off £50 opening fee, after that no platform, admin or closing fees, just modest trading fees of £5.00. That offer (a 50% discount) has been extended from 31st July to 10th August. Thereafter it will be back to a £100 opening fee.

I recently opened one with iWeb n the above basis. Though my main ISA is with X-O (Jarvis Investment management), which has no opening fees, no platform or ongoing running costs, just trading cost at £5.95.

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Re: Advice about cheapest way of managing my small HYP portfolio

#519304

Postby DanUK » August 2nd, 2022, 9:05 pm

Thanks everyone, I've just started the process of opening an ISA with Iweb. Hopefully the activation letter that's physically posted reaches me soon so I can take advantage of the offer and get my II ISA transferred over!

monabri
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Re: Advice about cheapest way of managing my small HYP portfolio

#519308

Postby monabri » August 2nd, 2022, 9:36 pm

DanUK wrote:Thanks everyone, I've just started the process of opening an ISA with Iweb. Hopefully the activation letter that's physically posted reaches me soon so I can take advantage of the offer and get my II ISA transferred over!


Have a shufty at this ..transfer form.

https://www.iweb-sharedealing.co.uk/our ... ments.html

"Transferring an ISA or Share Dealing Account
How it works
Simply sign in and complete our online transfer form.
Once your transfer is complete you’ll be able to see your investments online straight away, we'll also send you a letter to let you know it’s done.
You won't be charged to transfer in or out of IWeb."

DanUK
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Re: Advice about cheapest way of managing my small HYP portfolio

#519309

Postby DanUK » August 2nd, 2022, 9:42 pm

Thanks, sounds painless, just want to make sure I get in before the price goes up unless what I've done so far counts as the start date!

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Re: Advice about cheapest way of managing my small HYP portfolio

#519311

Postby DanUK » August 2nd, 2022, 9:48 pm

...and just clocked this:

Any accounts that are opened within the offer period but not activated by 10th August may still have the £50 offer honoured as long as the account is activated within 30 days of opening. In these circumstances the standard £100 Account Opening Charge will be applied and £50 refunded to your bank account within 3 working days.

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Re: Advice about cheapest way of managing my small HYP portfolio

#519326

Postby dealtn » August 2nd, 2022, 10:40 pm

Even spending £2 to buy £100 of shares is a large percentage. I really wouldn't be investing such small sums like this, or having so many low value holdings. But if you want to go down this route I would advise reducing the frequency of purchases to every 3 to 6 months and reducing that expense ratio significantly.

DanUK
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Re: Advice about cheapest way of managing my small HYP portfolio

#519594

Postby DanUK » August 3rd, 2022, 7:31 pm

Yes, that's what I plan on doing. Either way, not paying £120 a year is going to beneficial to me!

I have a couple of questions about Iweb for those that use it. I know it's basic so my expectations are low as to what information it gives you but I never really utilised the the more advanced offerings of ii either. I'm wondering what sort of columns Iweb gives when looking at investments -for example, does it have a 'gain' column that shows the price now vs the current book cost? And in terms of dividend reinvestment, can I choose (like ii) on a per-share level? When I applied for iweb it asked a blanket 'do you want to reinvest dividends' which implies it is an all or nothing scenario but this may be different once I have an account!

Thanks

Dan

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Re: Advice about cheapest way of managing my small HYP portfolio

#519627

Postby ReformedCharacter » August 3rd, 2022, 8:44 pm

DanUK wrote:I have a couple of questions about Iweb for those that use it. I know it's basic so my expectations are low as to what information it gives you but I never really utilised the the more advanced offerings of ii either. I'm wondering what sort of columns Iweb gives when looking at investments -for example, does it have a 'gain' column that shows the price now vs the current book cost? Dan

Yes

DanUK wrote:And in terms of dividend reinvestment, can I choose (like ii) on a per-share level? When I applied for iweb it asked a blanket 'do you want to reinvest dividends' which implies it is an all or nothing scenario but this may be different once I have an account!


No, all or nothing.

RC


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