Fund supermarkets, platforms and so on

[EmilyGilmore]

Next question - thanks in advance for your thoughts and patience...

If I want to buy a tracker ISA, plus some other similar funds outwith our ISA allowances, I gather I am best to do this via a fund supermarket or platform (they're the same thing, right?). We may wish to buy some individual shares or transfer in some current holdings in Shell, Rio Tinto, Diageo and others (it will probably be cheaper for my in-laws to transfer the shares into our names rather than sell them and transfer the proceeds).

If I'm right, the best thing would be to use a platform and buy via them - yes? And they have a facility where I can check my holdings' values etc. And for this I will pay a fixed fee or a percentage of the total holding?

Will a fund supermarket/platform be able to do what I think they will with regards to buying funds and shares and providing an easy to understand way of seeing the value of my portfolio? Or is there something I'm missing?

Thanks - I know this is a really obvious question and I kind of know the answer but I want to check my understanding is correct.

[BarrenWuffett]

Next question - thanks in advance for your thoughts and patience...

If I want to buy a tracker ISA, plus some other similar funds outwith our ISA allowances, I gather I am best to do this via a fund supermarket or platform (they're the same thing, right?). We may wish to buy some individual shares or transfer in some current holdings in Shell, Rio Tinto, Diageo and others (it will probably be cheaper for my in-laws to transfer the shares into our names rather than sell them and transfer the proceeds).

If I'm right, the best thing would be to use a platform and buy via them - yes? And they have a facility where I can check my holdings' values etc. And for this I will pay a fixed fee or a percentage of the total holding?

Will a fund supermarket/platform be able to do what I think they will with regards to buying funds and shares and providing an easy to understand way of seeing the value of my portfolio? Or is there something I'm missing?

Thanks - I know this is a really obvious question and I kind of know the answer but I want to check my understanding is correct.

Yes a low cost online platform provides the flexibility to hold an assortment of shares, funds, index trackers etc. Some common ones would be Hargreaves Lansdown, AJ Bell Youinvest, Halifax Share Dealing so you need to visit a few sites to compare costs. They will all show your holdings after purchase with portfolio totals etc.

A couple of sites which may help
DIY investor...http://diyinvestoruk.blogspot.co.uk/201 ... roker.html

and Monevator...http://monevator.com/compare-uk-cheapes ... e-brokers/

[richfool]

Jarvis share dealing and X-0 ( a subsidiary of Jarvis) don't charge platform fees.
I have a share dealing account with one and an ISA with the other.

I invest in IT's and some stocks directly. The only fees are the trading fees and stamp duty.

[EmilyGilmore]

Thanks all. That's really helpful.

I've ferreted about as suggested and I think I'm going to go with Interactive Investor. Their fees will work out well for us and I just rang their helpdesk to clarify something and I was impressed with their attitude and willingness to explain things.

We'll do our research re funds to select but instead of trusting an IFA as we've done in the past (why we are now mostly invested in property!) we're going to manage this much more closely ourselves.

The aim is to choose well, monitor every so often and leave it be.

Thanks again - virtual beers all round

[doug2500]

You should be aware that for your in laws to transfer shares to you I think it would be easier, and probably necessary, for you them to do it as certificates and then deposit them with your online broker once they're in your own name. I suspect you'll find it difficult to transfer them online to an account in a different name.

I have no direct experience of this but I couldn't transfer shares into a joint account from another broker because the name was different. I had to transfer them to a trading account in my name with the same broker then gift them to the joint account.

[doug2500]

Oh, and another thing that occurred to me, if you're buying trackers and you hold them outside an ISA you can harvest capital gains exemptions by selling them and buying a different tracker, even if both are for the same index.

[WessexBoy]

Oh, and another thing that occurred to me, if you're buying trackers and you hold them outside an ISA you can harvest capital gains exemptions by selling them and buying a different tracker, even if both are for the same index.

That sounds useful advice, can you say some more about the 'threat' of capital gains tax and this 'trick' pl.

[Alaric]

That sounds useful advice, can you say some more about the 'threat' of capital gains tax and this 'trick' pl.

The link is to what the Government say about CGT
https://www.gov.uk/government/publicati ... allowances

Everyone has an Annual Exempt Amount currently of £ 11,300

It only matters if you have sufficient invested, but suppose you had funds of £ 100,000 . If you can get growth of 6% a year, that's a gain of £ 6,000 a year, the cumulative effect of which would exceed the Annual allowance in not so many years. If you sell one Index fund, buy another in the same Index, you get an annual calculation where each year's gain is below the limit. So if you need all the money at some time in the future, you can get at it without suffering a tax liability.

I don't think anyone is marketing the idea as a tax device, so presumably it's safe from a Budget crackdown for the time being. If you did the same as an American taxpayer, I believe you would be treated as holding the same asset.