What is the Best Brokerage to use?

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4th Apr '21 by tobysweeney94

3 comments 362 reads

I just thought I should post here to get the advice of some more experienced investors. As a new investor last year I was wondering what brokerage would be best to use; I currently use a combination of Hargreaves Lansdown & Trading 212, with around £230k invested, but I'm over the 85k FSCS so I'm slightly worried about not being covered...

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Tobysweeney94

Premium Member

3 comments

PLS1nve5t

4th Apr '21

It depends on what you wish to invest in.....

If its funds, then Interactive Investor with its fixed monthly fee would be way cheaper than HL's percentage charges given your pot size.

IG is good for US(free) and cheap UK(£3) trading shares if you do 3 trades per month - 1 buy at £100 and 2 immediate sells of £50 seems to work fine and is very cheap :-)

Sticking with the big boy's I think is okay above £85k, I'd not trust smaller companies like T212 above that.

sharw

5th Apr '21

This is a question that crops up from time to time - recently in connection with stop losses - so you may find some ideas here:

https://www.stockopedia.com/content/isa-accounts-stop-loss-orders-773649/

Rusty2

5th Apr '21

The FSCS has have different rules for brokers. "Investments are also covered by the FSCS, but up to £50,000 of investments in a firm that has gone into default. This applies to both fund managers and brokers.

Investments

‘Investments’ covers stocks and shares, unit trusts, futures and options, and other long-term investments. The FSCS will only be triggered when an investment product provider goes bust, or for a loss arising from bad advice; rather than for the demise of an underlying investment. So if you buy shares in a company that subsequently goes belly-up, you’re on your own, as sadly that’s the nature of investment."

Cash in your account will be covered, I know HL uses around 6 different banks, so the risk is low.

I'm currently transferring some of my HL ISA to IG. I have been using IG for about 3 months now, generally it has been ok but service is not as good as HL but it is far cheaper, especially if you trade US shares.

I looked into Trading 212 but was never comfortable using them, too many bad reports.

To be honest, we are poorly served with share dealers in the UK compared to the US.

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What is the Best Brokerage to use?

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Tobysweeney94

3 comments

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