Investment platforms are great, but they need to up their game


(Louis Otto) #1

Great article in MoneyWeek this morning:

Crazy how HL manage such high profit margins, yet doesn’t get much consumer backlash regarding fees/costs etc


#2

Investors who are unhappy with HL’s high fees transfer to other providers, or negotiate a cheaper fee (those with very large portfolios). Those who are happy/don’t mind/don’t know stay with them.

I’ve been with HL for several years, thought about switching to a cheaper provider but then realised that they’re competitive if you only hold shares, investment trusts and ETFs in their ISA, as the fees are capped at £45 per annum (normal fee is 0.45%). So I switched all my funds over.

Website is great as is their customer service, I can’t see them dropping their fees any time soon, not when they continue to have satisfied customers, but people do need to be aware of how high fees affect their investments.

Agree that the whole industry needs to scrap exit/transfer fees and make it easier , like with gas or electricity suppliers, customers should be able to switch easily to their preferred suppliers easily.

I also hold a SIPP with HL, paying higher fees than I should as the investments are in funds but I don’t want to be charged to switch so I now invest into another SIPP (with AJ Bell) where the fees are cheaper and just left the HL one to tick along.


(Louis Otto) #3

I use HL for my LISA, and I have to say their mobile app is incredible too. £45 per year when you have a lot in there really isn’t much, so I can see why it isn’t worth moving.


(Dave Smith) #4

I use HL, mainly due to apathy as I opened the account over 10 years ago, the fees aren’t that bad if you don’t trade a lot and don’t buy small amounts of shares. But they are a bit prohibitive for someone without a lot of money who just wants to have a go. Obviously Free will be better :slight_smile:


#5

Great post from @freetrade_cal coming on this very subject


#6

Also an HL customer as my pre-Freetrade broker. Even on a big trade £11.95 on the way in and out is painful. Say it’s £1000. That’s >1% right there on purchase.


#7

I’ve tried to minimise costs over the years by not trading too much, ie holding.

I also make use of their regular investment facility so it only costs £1.50 to buy but you’re then limited to buying only on one day a month.


#8

After the FCA’s recent audit of broker platforms @freetrade_cal wrote this awesome epic.