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A low cost ISA for shares?
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Pauline_J
Posted: 08 December 2010 15:14:52(UTC)
#26

Joined: 06/10/2007(UTC)
Posts: 4
only 1 person seems to have mentioned BestInvest. they have 0% charge on so many of the Unit trusts and a very comprehensive and flexible fund research facility. a comparison table of the providers would be useful.
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Pauline_J
Posted: 08 December 2010 15:32:23(UTC)
#29

Joined: 06/10/2007(UTC)
Posts: 4
oops, i meant to say, a comparison table of all the ISA providers talked about above would be useful
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Dexter
Posted: 08 December 2010 17:07:32(UTC)
#30

Joined: 15/07/2009(UTC)
Posts: 12
Just to add, for regular dealing in shares, etf's etc, many providers (including interactive investor) offer a portfolio/share builder service where you can trade for just £1.50 at 4 regular dates across this month. Very handy for regular investing.
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Dexter
Posted: 08 December 2010 17:18:14(UTC)
#31

Joined: 15/07/2009(UTC)
Posts: 12
Peter Jason Taylor: You could always trade Gazprom via its secondary listing on the LSE, its ticker is OGZD. Or the ADR is GAZ.
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Peter Jason Taylor
Posted: 08 December 2010 19:50:12(UTC)
#32

Joined: 12/10/2010(UTC)
Posts: 13
Thank you, Dexter. I know the Gazprom secondary listing ticker is OGZD, but both of my ISA providers declined to deal in it because of the dollar quote. Likewise the non-ISA broker I use, Halifax Sharedealing, would not deal in it either, although they will deal in foreign shares such as Berkshire Hathaway (NYSE:BRK.B), Trina Solar (NYSE:TSL) and Cameco (NYSE: CCJ, not the Toronto-traded CCO). I'm reluctant to open an account with another stockbroker because I've promised my wife to keep my affairs as simple as possible (financial affairs, I mean!) in case I kick the bucket.
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Dexter
Posted: 09 December 2010 09:03:26(UTC)
#34

Joined: 15/07/2009(UTC)
Posts: 12
HL are very good if you want to invest in active managed funds, they rebate a lot of the inital fee (if not all of it) and save some of the annual commission as well. For tracker funds they tend to offer nothing over iii (or similar) as these are already rock bottom. But for anything that does not provide them with some form of trailback commission (ie shares, etfs) they charge you.

Personally, I dont invest in active funds, so I find iii perfect for my needs.

Bear in mind, if you are a base rate taxpayer, and will never become a higher rate taxpayer, then the only advantage to a shares ISA is the shielding from capital gains tax, the dividends in or outside of an ISA (for base rate taxpayers) are still taxed at 10% and cannot be reclaimed. So you may find the need for an ISA is not as important as it would first seem...
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Dexter
Posted: 09 December 2010 10:28:52(UTC)
#36

Joined: 15/07/2009(UTC)
Posts: 12
Ah yes bonds, that is a good point. That's correct bond yield would be taxed as income so the ISA does shield you. I only have bonds in my SIPP so apologies this had slipped my mind!
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Kenpen2
Posted: 09 December 2010 12:14:05(UTC)
#38

Joined: 17/07/2008(UTC)
Posts: 103
PJT - ha ha !! I made the same promise to my wife, for the same reason. I only regret that my non-financials are already at the simplest possible level.
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Daniel25
Posted: 09 December 2010 13:03:25(UTC)
#39

Joined: 10/12/2009(UTC)
Posts: 3
I see coments stating that there is no advantage to holding shares within an ISA for lower rate tax payers. Isn´t this a little short sighted? I mean, we all invest in shares for growth and even those high yielders will go up in value pretty dramatically so if you invested in one of these winners and sold at a profit above the allowance surely you will be happy you invested within an ISA.

We always hear the adage - Invest for the long term. In some cases this creates huge capital gains. I for one know where all my investments will be: In an ISA. Who is to say my fortunes will not change and I might find myself a higher rate taxpayer one day? By that time I might have a tiddy nest egg in one of the most tax efficient/flexible investment vehicles.

If the cost of investing within an ISA is no greater or slightly greater than investing outside, why not use the wrapper? In the case of Interactive Investor, charges are the same in our out of an ISA...
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Dexter
Posted: 09 December 2010 14:09:42(UTC)
#40

Joined: 15/07/2009(UTC)
Posts: 12
Daniel25: I completely agree, an ISA (even with it's limiations is the best choice), but it's good to be aware that as long as your tax band doesnt change (and you have no bonds in it) that the advantages of the ISA may not outweigh additional costs to gain the wrapper. With the current CGT limit at £10,100 per year, you would have to be doing pretty well to cross the threshold, and of course its only activated on disposals, so unless you had some reason to liquidate a large chunk of your portfolio you could manage it year by year, but generally it is worth the ISA to avoid worrying about it (and for bond yield) as long as you are not subjected to high fees, restrictions simply for the wrapper.

In the case of Interactive Investor I hold an ISA with them for exactly these reasons :)
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