Image
feature
Other Candid sites

Candid Financial Advice
Financial advice for a fraction of the usual cost.

Compare Fund Platforms
The UK's only fund platform comparison site for private investors.

Calculator over 80 Calculators!

Covering almost all your money needs - use them.

Savings Inflation Impact

Calculator Positive inflation eats away at your savings. In fact, over time it could actually shrink them in terms of what they could buy. Use this calculator to see how big a threat inflation could be.

Random Jargon

Convertible Term Assurance Life Cover

A type of term assurance that allows you to convert into a whole of life policy.

Ask Justin

Ask Justin

| Printable version | A A A |


Transfer Moneysupermarket ISA?

Investment | ISAs Helpful? 6

Asked by rafablu87, submitted 24 April 2012.

Open Quote I am currently at the first stages of my ISA investment after starting work following graduation. I realised a bit too late that I could save in stocks and shares so quickly bought a preferred fund through MoneySupermarket/Cofunds at the start of April. They waived the 5% initial charge which was great.

But having done a bit more research, I stumbled upon discount brokers, especially the ones who rebate. Your guide says: "If you already hold investments via a fund supermarket, such as Cofunds or Fundsnetwork, it usually makes sense to buy new investments on the same platform, keeping everything in one place. This could affect your choice of broker as a few tie themselves to one fund supermarket."

My query is: Will I make more money overall if I switch my ISA allowance to Cavendish for example? Also should I buy a preferred fund for 2012/13 through them or just use my existing MoneySupermarket/Cofunds platform for any further buys I make in future years?

Thanks

End Quote

Answered by Justin on 07 September 2012

Yes. All you need to do is transfer the 'agency' of your existing Cofunds ISA to your chosen discount broker - just requires a simple form or letter. Cavendish Online only gives the option of using FundsNetwork these days, but for Cofunds you could use Club Finance who rebate 75% of the trail commission with no admin fees or rPlan who rebate 50% and offer potentially useful fund tools.

Alternatively, if you want to use Cavendish and get a 100% trail commission rebate you can transfer the Cofunds ISA across to FundsNetwork. It's straightforward but could mean your money being out of the market for up to a week or more, which is not ideal.

If the amount invested is small at this stage then the annual trail commission will be peanuts, e.g. about £5 per £1,000 invested, so perhaps keep things simple for now and remain with Cofunds using a broker like Club finance or rPlan.

If you transfer the agency to a discount broker then it's sensible to make new investments on the same platform through them too. You'll benefit from full initial and partial/full trail commission rebates.

I can't see any reason to use Moneysupermarket for stocks & shares ISA investments, there's no real service or research to speak of and no trail commission rebates.


Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

If you found this answer helpful, please add your vote by clicking here.


Readers' Comments (0) - To post a comment please register or login .