Question
I own a self select Isa of several years value approx £89,000. It is with a stockbroker which I know makes charges on transfers out. Are there any ISA provders that will pay all or some of these fees to get the business? Obviously I only want to move to one that has competetive dealing fees etc. I am aware of iDealing. The holdings are equities and investment trusts.Answer
I've had a quick look around the cheaper stockbrokers and I'm afraid the answer is no, I can't find any paying a bonus to get your business.
I guess it's a simple equation, if they offer very competitive fees there's not enough fat on the bone to throw at poaching customers from other brokers.
iDealing pays £10 per stock, capped at £150 per type of account (e.g. ISA or SIPP) and £400 overall. Let's suppose you have 10 stocks in your ISA, you'll receive £100 of credits (to offset against charges) in return for transferring your ISA to them.
iDealing charges a £9.90 dealing fee per trade, which is not bad, but also a £5 quarterly fee for the ISA wrapper, i.e. £20 a year. This could obviously erode the initial credits within a few years.
Personally I'd more be more inclined go for a broker who doesn't charge for the ISA wrapper and offers rock bottom dealing fees, especially if you're likely to trade fairly frequently (obviously the potential saving will need to outweigh transfer penalties from your exising broker). The cheapest I've found so far is x-o.co.uk, which charges £5.95 per deal and no ISA wrapper charge. I've reviewed them here.
I own a self select Isa of several years value approx £89,000. It is with a stockbroker which I know makes charges on transfers out. Are there any ISA provders that will pay all or some of these fees to get the business? Obviously I only want to move to one that has competetive dealing fees etc. I am aware of iDealing. The holdings are equities and investment trusts.Answer
I've had a quick look around the cheaper stockbrokers and I'm afraid the answer is no, I can't find any paying a bonus to get your business.
I guess it's a simple equation, if they offer very competitive fees there's not enough fat on the bone to throw at poaching customers from other brokers.
iDealing pays £10 per stock, capped at £150 per type of account (e.g. ISA or SIPP) and £400 overall. Let's suppose you have 10 stocks in your ISA, you'll receive £100 of credits (to offset against charges) in return for transferring your ISA to them.
iDealing charges a £9.90 dealing fee per trade, which is not bad, but also a £5 quarterly fee for the ISA wrapper, i.e. £20 a year. This could obviously erode the initial credits within a few years.
Personally I'd more be more inclined go for a broker who doesn't charge for the ISA wrapper and offers rock bottom dealing fees, especially if you're likely to trade fairly frequently (obviously the potential saving will need to outweigh transfer penalties from your exising broker). The cheapest I've found so far is x-o.co.uk, which charges £5.95 per deal and no ISA wrapper charge. I've reviewed them here.
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