Transfer Moneysupermarket ISA?
|Investment | ISAs
Asked by rafablu87, submitted
24 April 2012.
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?
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.
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