Just wondering if people have any views on the different Self Select ISA providers? Guessing there are a few who are using such providers.
I have been looking at x-o.co.uk who are execution only which is all I am interested in. They seem to be one of the most competitively priced with dealing commissions of £5.95 and £15 per line of stock for transferring out plus a £50 account closure fee. No admin fee or inactivity fees with a promise to never bring in such charges, unlike iii!
Has any one got experience with them or views on other providers?
TIA.
Self Select S&S ISA Providers
Because of the size of my portfolio I've tended to stick to one provider. I use Selftrade and they have always looked after me. I know it's tempting to go for the lowest cost but it's when there is a problem that you come to realise you pay for what you get.
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andyfuller
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- Joined: Wed Mar 25, 2009 12:23 pm
Yeah that is a fair point about taking into account customer service when selecting a provider, cheapest usually equals cheap customer service. Also building a long term relationship is worthwhile but less so these days imo.
Do you know if the provider were to go bust what would happen, obviously with savings you get your £85,000 per institution protection.
But what happens when using one of these S&S Isa Providers like Selftrade, you own the shares still, but they are the nominee so does this have any implications?
Do you know if the provider were to go bust what would happen, obviously with savings you get your £85,000 per institution protection.
But what happens when using one of these S&S Isa Providers like Selftrade, you own the shares still, but they are the nominee so does this have any implications?
Treatment of cash is the same as the FSCS treatment of cash in a 'normal' account. But if you acquire shares then you are the legal owner so that isn't affected. You would still hold the ownership and the rights would, probably, be transferred to a nominated provider.
The nominee services just means they are managed under one umbrella, the end point ownership is unaffected. They are the legal holders of the shares but not the beneficial owners of them. Hope that makes sense.
The nominee services just means they are managed under one umbrella, the end point ownership is unaffected. They are the legal holders of the shares but not the beneficial owners of them. Hope that makes sense.
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andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
Yes makes sense thanks Peter.
I would have thought that you could end up in a period of flux where by your Provider has gone bust but your shares have yet to be transferred to a new provider and as such are unlikely during that period to be able to sell your shares that were held by the now bust provider as nominee thus leaving you somewhat exposed. Guess this risk could be lessened by spreading your purchases across a few different providers.
Is anyone aware of circumstances where a Provider has gone bust? It would be interesting to find out what happened.
I would have thought that you could end up in a period of flux where by your Provider has gone bust but your shares have yet to be transferred to a new provider and as such are unlikely during that period to be able to sell your shares that were held by the now bust provider as nominee thus leaving you somewhat exposed. Guess this risk could be lessened by spreading your purchases across a few different providers.
Is anyone aware of circumstances where a Provider has gone bust? It would be interesting to find out what happened.
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andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
Rather than post this in a new thread I thought here was appropriate.
I am sure people know that the ISA is getting a refresh after the Budget this week where by on July 1st 2014 you will be able to put £15,000 into what is being called the New ISA (NISA).
The other big change is that you can move from Cash to S&S and vice versa as you want.
This imo has opened up a loop hole that doesn't seem to have been covered in the press which seems a bit odd.
In the current tax year (2013/14) you can put £5,760 into a cash ISA. Many only do this as they don't want to invest in S&S. But the government has now effectively opened a back door to increasing the amount you can deposit in the 2013/14 tax year to the full ISA allowance of £11,520.
Here is what to do:
1. Open a S&S ISA and deposit your remaining £5,760 into it before 06/04/14 but don't invest it in shares, leave it sitting as a cash deposit (check the S&S provider offers this facility before opening the account).
2. Leave the money sitting as Cash until July 1st 2014. You are likely to earn 0% or near to 0% interest on the money, any interest earned is taxable I believe.
3. On 1st July 2014 transfer the money into a new Cash NISA.
4. End result is you have doubled the amount you have been able to deposit as cash in the 2013/14 tax year. Yes you have missed out on a little interest, about 15 weeks but you now get the benefit of getting an extra £5,760 into a tax free wrapper every year going forward until you either die or they scrap ISA's.
Simples!
I am sure people know that the ISA is getting a refresh after the Budget this week where by on July 1st 2014 you will be able to put £15,000 into what is being called the New ISA (NISA).
The other big change is that you can move from Cash to S&S and vice versa as you want.
This imo has opened up a loop hole that doesn't seem to have been covered in the press which seems a bit odd.
In the current tax year (2013/14) you can put £5,760 into a cash ISA. Many only do this as they don't want to invest in S&S. But the government has now effectively opened a back door to increasing the amount you can deposit in the 2013/14 tax year to the full ISA allowance of £11,520.
Here is what to do:
1. Open a S&S ISA and deposit your remaining £5,760 into it before 06/04/14 but don't invest it in shares, leave it sitting as a cash deposit (check the S&S provider offers this facility before opening the account).
2. Leave the money sitting as Cash until July 1st 2014. You are likely to earn 0% or near to 0% interest on the money, any interest earned is taxable I believe.
3. On 1st July 2014 transfer the money into a new Cash NISA.
4. End result is you have doubled the amount you have been able to deposit as cash in the 2013/14 tax year. Yes you have missed out on a little interest, about 15 weeks but you now get the benefit of getting an extra £5,760 into a tax free wrapper every year going forward until you either die or they scrap ISA's.
Simples!