Fee Comparison (data gathering)

Lots of chat about fees now Plus is a thing. I was wondering if some people could post or point to fees of competitors? I was putting together a small table to compare fees and the size of your holding before Freetrade is more value (based on fees alone).

Fixed fees are generally seen are more beneficial in the long run, simpler, and easier to manage, but % based fees tend to be good for small portfolios, something Vanguard takes advantage of for example.

I’ve only got HL and Vanguard at the moment. but i want to build up a table that compares more than just fees and takes into consideration other limitations and options. Figured id gather some input so i can expand on the table.

Btw, the function to identify how much you need before a platform (that uses % based fees) becomes more expensive is this (assuming i got it right)

=SUM((<price>)/<platform % fee>*100)

So for example HLs is =SUM((<Freetrade price>*12)/0.45*100)

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Broker fee comparison already done here, though probably won’t include Plus or Freetrade’s SIPP: https://monevator.com/compare-uk-cheapest-online-brokers/

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Ah yeah i remember that. I’ll use it as a base. It doesn’t i’ve you the tip over balance where a broker becomes cheaper so still some value to it (tbh im just personally interested to see what the various thresholds are in comparison to Freetrade anyway)

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Nice idea, it might be worth breaking it out by investment style as well, just because Vanguard for example only really caters to passive investors also prices vary dramatically between the two.

FT is very good value for passive investors because you just have a flat platform fee + fund ongoing charges.

FT is less great for active investors / traders (except for those mostly picking UK product) because it becomes a percentage fee rather than a flat fee.

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Yeah I was going to consider how best to do this. Possibly split it out into ‘investment styles’

Vanguard GIA for example is more expensive once you put more than £1 in :smile: as all of the vanguard funds are free in Freetrade (no counting the fund fee) so a passive investor who doesn’t want an ISA may be better riff with Freetrade from the get go, plus they’re still not locked into vanguard funds.

So there’s a few scenarios to think about, i think these are often overlooked.

I hold like to see iWeb included in your table.

They charge £25 to join (used to be free) and then no ongoing charges and £5/trade regardless of whether you have a dealing account and/or ISA or both.

For SIPPs, it’s slightly different with no joining fee but a quarterly admin charge of £22.50 for SIPPs valued up to £50,000 and £45 for all other SIPPs.

They also offer 7 different markets.

Pensionbee offer a tracker fund pension that charges as low as 0.5% but also offer other pots that can charge as high as 0.95%.

I used Pensionbee to mop up some very old pensions from when I first started work 20 years ago (it really is a good service to track lost pensions and they do all the searching for you so long as you know the company name) so have 16.5k in there at the moment.

Happily, freetrades new sipp (ignoring the far better way of investing individually yourself - for me at least) becomes cheaper than 0.5% as soon as you hold more than £16,500 with pensionbee if you’re already a freetrade plus member.

I’ll be transferring to Freetrade as soon as i can!

Edit: also just checked and don’t think there’s any fee to transfer the pension out. I’d honestly recommend Pensionbee to anyone to combine your small pensions elsewhere and find lost ones… Then transfer to Freetrade.

Good idea
What about Plus(+ISA) comparison?

It would essentially be the same value cap as the SIPP based on the % platform fees brokers offer which are all about the same but I’ll add it in as SIPPs have extra costs with most other brokers except Vanguard.

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@eden I’d guess the variables are probably

  • platform fees (% or flat fee per month) and fee caps
  • account-opening fees (eg iWeb in 2020)
  • transaction fees per trade
  • what securities are being invested in (some brokers vary fees based on that)
  • frequency of trading (some brokers include X trades/per quarter in their platform pricing, some brokers give discounts for repeat buys)
  • what price segmentation the broker is offering (as you’ve got in your screengrab)
  • discounts (some brokers offer eg JISA free if you already have ISA etc)
  • any other costs… fx, transfers in or out, drawdown, etc

There was a startup trying to do a comparison engine for brokers - Brokercompare.info - but they seem to have disappeared.

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Yeah. I think what I plan to do is have a simpler table like the one above, purely basic cost thresholds (in some cases the fees don’t matter so much because Freetrade is cheaper quite quickly. And then do a second sheet with more detail for each. Fx, drawdown fees like you say as they’re often forgotten. I was considering that the best option might be to do some scenarios e.g. Bob invests monthly into x,y,z as that might give a more interesting comparison than just meaningless numbers.

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"Over 30 years, for an initial pot of £20,000 and assuming 5 per cent growth per year, Freetrade claims its Sipp could save Hargreaves Lansdown customers up to £9,900, AJ Bell customers up to £6,100 and Interactive Investors up to £7,400.

The graphic above assumes a portfolio in equal amounts of shares, ETFs and trusts and two share deals per month - amounting to 24 a year.

Hargreaves Lansdown caps annual charges on shares in a Sipp at £200 while AJ Bell caps this annual charge at £25 a quarter (£100 a year). "

Provider Admin charge Charges notes Fund dealing (online) Standard share, trust, ETF dealing (online) Regular investing Dividend reinvestment
AJ Bell Youinvest £0 - £250k: 0.25%, £250,000 - £1m: 0.1% £1m - £2m: 0.05% Over £2m: free Capped at £100 for Sipps for shares, ITs and ETFs £1.50 £9.95 (£4.95 if 10+ trades occurred last month) 1% (min £1.50, max £9.95) 1% (min £1.50, max £9.95)
Freetrade £10 per month for basic users £7 per month for premium users £9.99 monthly membership fee applies for premium users n/a Free Free n/a
Hargreaves Lansdown £0 - £250k - 0.45%, £250k - £1m: 0.25%£1m - £2m: 0.10% Over £2m free 0.45% a year (capped at £200) for Shares, ITs, ETFs, and bonds Free 0 - 9 deals: £11.95,10 -19 deals: £8.9520 +: £5.95 £1.50 per stock a month 1% (£1 min, £10 max)
Interactive investor Investor Plan: £9.99 per month Funds Fan Plan: £13.99 per month Super Investor Plan: £19.99 per month Investor Plan: One free trade per month, Funds Fan Plan: Two free trades per month, Super Investor Plan: Two free UK or funds trades per month Investor Plan: £7.99 Funds Fan and Super Investor plans: £3.99 Investor Plan: £7.99 Funds Fan Plan: £7.99 for shares and ETFs, £3.99 for trusts Super Investor Plan: £3.99 99p 99p

Which percentage fee do you mean? The FX commission?

Yeah

But so do all ISA providers - and most charge 2-3x as much.

(Note: I am aware of the one that does it for free - presumably as a loss leader.)

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I think they will be launching a SIPP at a similar time so should be relatively comparable at that point.

Hi Eden, this table shows ISA fees. It includes almost every provider out there. Happy to work with you to add other parameters. Here’s a link to the full table.

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Just missing the fx fee!

I wish I could move my investments over to FT
Niche investment style…

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