Question
Where can I find a list of 'discount brokers'?
I am paying trail commission of 0.50% on a 7 year old Aviva Portfolio Bond worth about £35K, bought through Towry Law, and I understand from a recent edition of BBC2's 'Working Lunch' that you can transfer to a 'discount broker' and receive part of the trail commission back each year?Answer
I’ve been meaning to put together a comprehensive list of discount brokers, including the discounts and services offered, for some time. Your question is a good prompt so I’ll try and get something on the site within the next couple of weeks.
Unless you need ongoing advice (which I’m assuming Towry Law haven’t been giving you) then getting a trail commission rebate would be well worthwhile. If you do want ongoing advice then you could try and find an adviser who’ll be happy to oblige in return for the trail commission.
Your cheapest discount broker option is probably Cavendish Online, who refund all trail commission in exchange for an initial £35 charge and £10 annual fee. Given the annual trail commission on your bond is currently around £175 this seems like a decent deal.
Alternatively Club Finance will rebate 75% of the trail commission without charging you any fees. So you’d expect to receive about £131 of the £175 commission.
If you want to find out more about getting trail commission rebates you’ll hopefully find the ‘action plan’ I’ve just put together helpful.
As an aside you might want to investigate whether the investment bond is worth holding onto. If you’re a basic rate taxpayer there’s no income tax benefit and gains are taxed at source, which is less favourable than conventional investments where gains can be offset against your annual capital gains tax allowance. It would also be worth checking the underlying bond investment fund(s) to see whether it’s any good – if not you may have the option to switch funds within the bond.
Where can I find a list of 'discount brokers'?
I am paying trail commission of 0.50% on a 7 year old Aviva Portfolio Bond worth about £35K, bought through Towry Law, and I understand from a recent edition of BBC2's 'Working Lunch' that you can transfer to a 'discount broker' and receive part of the trail commission back each year?Answer
I’ve been meaning to put together a comprehensive list of discount brokers, including the discounts and services offered, for some time. Your question is a good prompt so I’ll try and get something on the site within the next couple of weeks.
Unless you need ongoing advice (which I’m assuming Towry Law haven’t been giving you) then getting a trail commission rebate would be well worthwhile. If you do want ongoing advice then you could try and find an adviser who’ll be happy to oblige in return for the trail commission.
Your cheapest discount broker option is probably Cavendish Online, who refund all trail commission in exchange for an initial £35 charge and £10 annual fee. Given the annual trail commission on your bond is currently around £175 this seems like a decent deal.
Alternatively Club Finance will rebate 75% of the trail commission without charging you any fees. So you’d expect to receive about £131 of the £175 commission.
If you want to find out more about getting trail commission rebates you’ll hopefully find the ‘action plan’ I’ve just put together helpful.
As an aside you might want to investigate whether the investment bond is worth holding onto. If you’re a basic rate taxpayer there’s no income tax benefit and gains are taxed at source, which is less favourable than conventional investments where gains can be offset against your annual capital gains tax allowance. It would also be worth checking the underlying bond investment fund(s) to see whether it’s any good – if not you may have the option to switch funds within the bond.
Read this Q and A at http://www.candidmoney.com/questions/question148.aspx
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