Discussion
I started an online d2c proposition quite recently; very slick, very functional and sophisticated service, decent risk rated baskets of passive funds, sexy, cheap as chips, great value for starter investors - or for those with incredibly simple needs and who want to start investing and don't know how.
I can't post the link, so won't - suffice to say, robo advice has to be the way ahead for so many. It fills the advice gap, it addresses a need bought about by banks withdrawing from this space, the daft minimums that many advisers now have to take under management to justify costs, and expensive broker only propositions that leave all the responsibility with the individual.
I can't post the link, so won't - suffice to say, robo advice has to be the way ahead for so many. It fills the advice gap, it addresses a need bought about by banks withdrawing from this space, the daft minimums that many advisers now have to take under management to justify costs, and expensive broker only propositions that leave all the responsibility with the individual.
Ginge is this you? www.fiveraday.co.uk - seems cheap, is it like Hargreaves?
Yes, that's me. It was intended, from outset, to be very cheap but with great functionality, for clients with simple needs. I decided to only use baskets of passive funds to keep the cost down. They include discretionary dealing, my advice, reporting, the platform and the funds and for nearly all clients (certainly all so far) the ongoing cost works out at c0.82% pa. The initial is 0.5%.
It's not like HL, Chalres Stanley, Best Invest, Nutmeg etc because I'm not an order taker. So far, I'm asking about 20% of clients to rethink or declining applications - I'm an adviser when all's said and done. The online questionnaire is simple, gets to the point, discusses attitude to risk as well as capacity for loss, and contingency. The investment report is crisp, and is in your inbox in minutes. If you want to proceed, it takes a further few days and that's it.
So far, I'm only offering an ISA and a General Investment Account. Hopefully, pensions later. Better than HL? Well, I'm biased. Let's just say this is advised, there's no messing about and trying to time the market, being affected by financial media 'noise', or worrying about whether you should jump ship for the latest 'star' manager. And it's cheap, but also impeccable quality. I hope it addresses the advice gap. We have too many people in expensive, lousy or unsuitable investment strategies.
It's not like HL, Chalres Stanley, Best Invest, Nutmeg etc because I'm not an order taker. So far, I'm asking about 20% of clients to rethink or declining applications - I'm an adviser when all's said and done. The online questionnaire is simple, gets to the point, discusses attitude to risk as well as capacity for loss, and contingency. The investment report is crisp, and is in your inbox in minutes. If you want to proceed, it takes a further few days and that's it.
So far, I'm only offering an ISA and a General Investment Account. Hopefully, pensions later. Better than HL? Well, I'm biased. Let's just say this is advised, there's no messing about and trying to time the market, being affected by financial media 'noise', or worrying about whether you should jump ship for the latest 'star' manager. And it's cheap, but also impeccable quality. I hope it addresses the advice gap. We have too many people in expensive, lousy or unsuitable investment strategies.
Edited by Ginge R on Sunday 20th September 18:31
"Finally, we won’t let you invest if we think it’s not right for you." If you believe that, you'll believe anything!
Hargreaves Lansdown and Fidelity operate very popular retail platforms. With a sensible long-term investment strategy dealing costs should be pretty irrelevant.
Depending on how you use them Fidelity can be very cheap indeed,
Hargreaves Lansdown and Fidelity operate very popular retail platforms. With a sensible long-term investment strategy dealing costs should be pretty irrelevant.
Depending on how you use them Fidelity can be very cheap indeed,
- Service fee 0.35%
- Service fee reduced to 0.2% if you have more than £250,000
- Service fee 0% (zero) on any excess over £1m
- Service fee 0.45%
- Service fee reduced to 0.25% if you have more than £250,000
- Service fee reduced to 0.1% if you have more than £1m
- Service fee 0% (zero) on any excess over £2m
Ozzie,
Given that that appears to be a comment about me, I'll take a moment to respond. I have declined just over 20% of approaches to date. Mainly because an applicant doesn't have enough money held in cash to cover contingencies, or because they have an excess of debt in relation to disposable income.
HL and Fidelity are very popular. I think what HL (in particular) did was tremendous - I take my hat off to both of them. I don't intend to compete with them, their's is a non advised service where the client takes on the risk of advice, choosing the funds etc.. mine isn't. Bear in mind though, that you have to add fund/dealing etc costs to HL and Fidelity.
Fiver a day is for clients with simple needs - many clients won't have sums in excess of £1,000,000 (to date, I have only had seven clients investing six figures) with most in the region of £40,000-£65,000 and £10,000-£15,000. It won't be for everyone, and that's fine. If I was intent on hovering up as many clients as possible, I would have gone down a non-advised route anyway. For clients with simple needs, who don't want to have the uncertainty of taking on investment responsibility themselves, it's a highly cost effective solution (0.82% per annum, all in, including funds etc - for the vast majority). In my opinion of course.
My service passes responsibility of one's investments to me; every aspect from rebalancing to transferring automatically into one's ISA allowance, dealing etc. I don't intend to get into a bun-fight about who is, or who isn't, 'better'. It's like comparing apples with pears. It's not for everyone, and that's fine - mine is a modern, online based service for people who want a bit of financial advice but who can't afford it, or don't know how to fit it into their lives.
Given that that appears to be a comment about me, I'll take a moment to respond. I have declined just over 20% of approaches to date. Mainly because an applicant doesn't have enough money held in cash to cover contingencies, or because they have an excess of debt in relation to disposable income.
HL and Fidelity are very popular. I think what HL (in particular) did was tremendous - I take my hat off to both of them. I don't intend to compete with them, their's is a non advised service where the client takes on the risk of advice, choosing the funds etc.. mine isn't. Bear in mind though, that you have to add fund/dealing etc costs to HL and Fidelity.
Fiver a day is for clients with simple needs - many clients won't have sums in excess of £1,000,000 (to date, I have only had seven clients investing six figures) with most in the region of £40,000-£65,000 and £10,000-£15,000. It won't be for everyone, and that's fine. If I was intent on hovering up as many clients as possible, I would have gone down a non-advised route anyway. For clients with simple needs, who don't want to have the uncertainty of taking on investment responsibility themselves, it's a highly cost effective solution (0.82% per annum, all in, including funds etc - for the vast majority). In my opinion of course.
My service passes responsibility of one's investments to me; every aspect from rebalancing to transferring automatically into one's ISA allowance, dealing etc. I don't intend to get into a bun-fight about who is, or who isn't, 'better'. It's like comparing apples with pears. It's not for everyone, and that's fine - mine is a modern, online based service for people who want a bit of financial advice but who can't afford it, or don't know how to fit it into their lives.
Edited by Ginge R on Sunday 20th September 22:34
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