Hi, I’m not sure if this has been raised before, but would it be possible to have the ISA fee priced according to portfolio value and capped at £3?
I’ll try to be to the point. Here’s my reasoning:
As a fledgling investor, my portfolio is very small. Lets say I invest £83.33 per month, ~£1000 per year. Assuming I made a 10% profit (£100) I would lose 1/3 of my profit to ISA fees, massively slowing my portfolio growth.
The logical conclusion for me here would be to not start an ISA with freetrade and use your GIA until my portfolio had grown, as I think the first £11000 of capital gains and £2000 of dividends are not taxed on a GIA (correct me if I’m wrong).
If I’m correct, then even after I had exceeded my limit I would still be better off with a GIA for while, lining the tax man’s pocket instead of freetrade.
I would rather support my broker. An ISA is much more “sticky” then a GIA, and there is a definite bonus in having my portfolio in an ISA earlier and not having to sell/ buyback my equities later.
My idea is making the
Monthly ISA fee = (portfolio size * 0.001) / 12
Or increasing the bold section to 0.01, but capping the max monthly fee at £3.
This way, you would get people like me on ISA’s earlier, locking in potential long time investers. The fees would gradually increase my portfolio does. Freetrade also potentially gets paid earlier. I still would technically be better off going GIA first, but the value of not having to sell/buyback makes up for this.
This is not a deal breaker for me as I will GIA first if necessary, but it be a “nice to have”. Thanks for reading