How does Saxo MWM compare?
|Investment | Unit Trusts
Asked by starlight29, submitted
08 September 2012.
I wondered what your thoughts on SaxoMWM are? It is fairly new but I have opened an acount. It seems an efficient and relatively cheap way to invest compared to ny Transact account set up through a Financial adviser.
They take 2.2% of what I pay in plus 1% pa. SMWM is much cheaper particularly if you are buying and holding funds an Etf's.
Answered by Justin on 11 September 2012
Saxo Modern Wealth Management offers share and fund trading with the option of ISA and SIPP wrappers.
Perhaps the most significant point to note is that Saxo doesn't rebate any fund trail commission, which is very uncompetitive versus those platforms and discount brokers that do, e.g. Alliance Trust Savings, Interactive Investor and Cavendish Online.
There are no dealing charges for funds while shares cost a fairly competitive £9.95 per deal (up to £75,000 trades then the price rises sharply). Corporate bond trades are 0.75% on the first £15,000 then 0.1%, which is high).
There's an annual £35 account charge, which includes an ISA, while the SIPP wrapper is an additional £195 a year.
All in all, it's hard to get excited about Saxo MWM. It's an ok deal if you only want to invest in shares/ETFs, although the likes of SVS Securities and x-o.co.uk offer cheaper dealing without account or ISA wrapper fees (and for very frequent traders Club Finance may prove something of a bargain). If you want to hold funds the lack of trail commission rebates is a big negative that could prove costly over time.
The Transact charges you mention sound high, but they inclued high financial adviser fees. I believe the Transact platform charges 0.2% on purchases (up to £1 million then 0.1%) with some trail commission rebate for larger portfolios. The ISA wrapper is £12 a year and SIPP £80. While not extortionate, the fees could prove a bit steep on larger sums and may become excessive if a financial adviser adds greedy fees on top (believe me, 1% a year is greedy!).
You might find our online dealing, SIPP and ISA discount broker/platform comparisons helpful.
If you found this answer helpful, please add your vote by clicking here
Readers' Comments (0) - To post a comment please register or login