Forums General Discussion Best Broker Platform – UK

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  • David JohnDavid J Member
    Post count: 11

    Hi All,

    Currently I am a small time investor with a small portfolio. However recently I have been considering the platform I’m using to place trades.

    I’m using Hargreaves Lansdown Stock and Shares ISA at the moment. HL have high trading fees and also management fees.

    I’ve seen that IG and DEGIRO are decent platforms with low trading and management fees.

    Is it worth considering a switch to these platforms or do the tax benefits of an ISA outweigh these other platforms?

    Can anyone give me some more info or maybe an overview of the positives of which accounts will be best for me in the long term?

    Your advice is appreciated.

    Thanks

    UK based Mortgage Broker

    Veeral ShahVeeral S Aspiring VIP Member
    Post count: 62

    Hi David,

    If you are planning to invest in individual stocks (the USA, UK and Europe), then you can consider Halifax’s either Share Dealing account or Stocks and Shares ISA. Halifax mostly offers £3.95/ trade special trading price for at least once a month & no management/account admin fees on Share Dealing account.

    You will be able to calculate savings yourself by checking trading, yearly admin fees, etc costs on their website. You can also invest in Mutual Funds in Halifax accounts but do check their fees. Other major brokers are AJ Bell & Standard Life.

    Savings and switching costs will depend upon how much you already have in HL and also going forward how much you are intended to trade/save. Hence, if you can give some numbers on the forum, then I can help you further. It may be worth considering buying a magazine or two of Investors Chronicle or similar magazines from the UK as normally they have articles on investment platforms or you can check Money edition of Sunday Times.

    Let me know if you have any further specific queries.

    Cheers

    David JohnDavid J Member
    Post count: 11

    Thanks Veeral for your help.

    Currently I have a small holding around 5k. Mostly in individual stocks, but I do want to look at bonds, funds and etfs. I don’t trade often as I am going for the value buy and hold strategy. Maybe 10 per year at most.

    I’m trying to establish if a stocks and shares isa works out best as it is free from CGT. Would this be best with Halifax over their share dealing account?

    As for management fees in my HL account I’m not as to whether the tax wrapper is more beneficial than not having management fees.

    I’m looking at growing my holding and ideally I would like to deposit at least 10k per year over the next few years.

    Thanks again for your input.

    UK based Mortgage Broker

    Veeral ShahVeeral S Aspiring VIP Member
    Post count: 62

    Hi David,

    My suggestion would be to calculate fees, trading costs, management fees, etc for a few platforms and see which is suitable for you. That is what I did to come up with suitable brokers for me.

    The good thing with Shares ISA is that you can have multiple accounts as long as you open them in different tax year and fulfill other criteria. You can also have ISA and standalone trading account. As per my previous post, I think investing in some of magazines and newspapers will be worth the money.

    HL’s management fee, 0.45% / year for small investors, is high and you can find lower fee providers, around 0.35% or lower. HL’s service is good if you are planning to use their telephone, customer service, etc. But if you think you won’t need any additional advice or frequent support, then Halifax, AJ Bell, Share Centre, etc can offer lower overall costs. Vanguard & Fidelity also provide good overall platforms for mutual fund and index fund investors.

    Regards

    ……………
    Please note: I’m not a financial advisor and above posts are for information purpose only.

    Robert BowensRobert B Newbie
    Post count: 1

    Hi David,

    It may be worth looking at Interactive Investor. They charge £22.50 per quarter and give a £22.50 credit for trades, which are £10. So the total cost given your expected activity would be £90 per annum or 1.8% of £5,000.

    Also, when looking around, it’s worth considering that there is a CGT allowance of £11,700 (not sure what it is for 2019/20) and £2,000 dividend allowance, so if you find a cheaper, non-ISA trading platform, it may be worth using that for a while.

    David FloodDavid Moderator
    Post count: 194

    Hi David,

    I would also advise you to consider what kind of stocks you will be wanting to buy.

    I opened an account with Halifax (the Iweb share dealing service) as it was the cheapest one I could find in the UK. The problem is that I found the coverage of markets and stocks to be too limiting.

    For example, if you are going to pursue Ben Graham’s net-net strategy (Buying stocks below their Net current asset value) you will want access to global markets including Japan, singapore and the OTC markets in the U.S.

    You will then need to opt for a broker with much better coverage, Saxobank and Interactive Brokers are the best ones I’ve found.

    If you just want to buy regular common stocks for UK companies and have limited access to european and U.S. markets then the Iweb share dealing account is fine.

    Have a look at this website for more info on U.K. brokers;

    Regards,

    David

    David JohnDavid J Member
    Post count: 11

    Thank you Robert,

    I did not consider these allownances.

    With my current small portfolio due to the allowances I think it will work better for me to use an account with no management fees.

    UK based Mortgage Broker

    David JohnDavid J Member
    Post count: 11

    Hi David,

    Thank you for your response!

    I am wanting exposure to international markets in the long term. I am early in my investing career currently so mostly am looking at UK markets in the interim.

    I will look into Halifax and the other accounts mentioned.

    I think what I may do is use one of the other accounts you suggested for UK based markets as my holding is small currently, so CGT and dividend allowances should suffice for the time being. I can then still use my HL ISA for international markets and funds as HL offer access to a large variety.

    If you have any other suggestions they would be appreciated.

    UK based Mortgage Broker

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