regular investment stock an shares isa total yearly costs-commision/stamp duty/admin fees 8.5% is this bad?
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410manzanilla postedIt's dreadful.
who is it with? how does the cost break down between commmission and admin fees?
are you buying every month? you could presumably halve the commission costs by only buying every other month, or even once a quarter. If you are paying say £12 commission, I wouldn't want buy in chunks of less than £1200, ie 1% commission rate.
manzanilla
Posted on 30 November 2009 |
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7compound200 posted
not sure if i got % right
eg.-£50 a month(regular saver share isa)
£1.50 commision+ stamp duty .25 x 12=£21
admin
0.05% of valuation x 12(low £2.16--max £8.33)(£2.16 x 12=£25.92+£3.88vat vat)=£29.80
£29.80 + £21=£50.80
£600 invested minus costs = £549.20
about 8.5%
do you know a cheaper way to buy shares
this was sold as low cost--i guess you have to invest larger sums for cost ratio to come down
Posted on 30 November 2009 | Love 0 loves
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410manzanilla posted
Sorry, but yes, you are simply investing too little for it too be economic.
i think you should stop buying shares each month and buy just twice a year. And therefore go for some sort of colective vehicle, rather than a single share. An Investment Trust or an ETF or a tracker fund.
Your next years figures wont be nearly so gloomy, as the adn=min costs will stay the same but your fund will be twice as large.
Any chance of increasing the £50 a month to a £100??? Just asking :)
manzanilla
Posted on 30 November 2009 | Love 0 loves
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804MikeGG1 posted
If you are subscribing that sort of amount, you shouldn't be using them, or buying shares for that matter.
Much better to go for a low-cost All-Share Tracker, such as Legal & General or Fidelity, or an ETF.
If you are investing long-term (over 10 years), go Global instead.
Once you have built up a big enough holding then you can branch out into share buying, but not in chunks of £50. Put the £50 into a 12-month Fixed-rate Monthly Saver. At the end of the year, buy 1 company and start a new Monthly Saver. Keep doing that and you will build up a portfolio with much lower expenses.
Mike
Posted on 01 December 2009 | Love 1 love
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7compound200 posted
what amount monthly would i have to put in to make this account value for money?
thx
Posted on 01 December 2009 | Love 0 loves
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804
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410manzanilla posted
Compound200 is only paying £1.50 per trade, that is very cheap! So a trade value of £250 rather than £500 is fine. The admin fees only look high because this is the first year - next year they will be better and the year after better again.
Of course this was probably not a sensible account to open. But having paid this years fees, it will get better.
manzanilla
Posted on 02 December 2009 | Love 0 loves
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804MikeGG1 posted
The cheap trading cost is the one good thing here. Stamp duty is 0.5%, so converting the £1.50 into another 0.5% gives £300 per trade to get a 1% initial cost.
Admin fees would shift this up considerably but, as Manzanilla has said, the higher the total pot, the lower the unit admin cost, especially until you reach the minimumlevel. Even at £500 per trade, the overall cost will still be greater than 1% until you are well over the maximum admin fee.
Posted on 02 December 2009 | Love 0 loves
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7compound200 posted
admin fee is valuation of account at rate of 0.05%
£4000 valuation matches min fee £2.16
£16000 valuation matches max fee £8.33
theres a cap at £8.33
so anything above that will bring down costs considerably
Posted on 02 December 2009 | Love 0 loves
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7compound200 posted
it is a investment trust
fcs-global smaller companies
Posted on 02 December 2009 | Love 0 loves
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