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Independent, no-nonsense ratings and reviews
Service remains strong and customers rate the call centre well. The problems lie with the site which is difficult to navigate and to find a path through. Fund research is deeply hidden – when you actually get there, it is all quite good. But the website feels like a frustrating maze to get through.
We score each provider on about 20 different criteria including cost, service, website, functionality, customer feedback and our experience of the service. All overseen by our PhD gonk!
Good customer service
Wide choice of investments
Good fund research
Don’t want to take our word for it? We ask existing customers and investors to rate their experience with the company – based on value for money, overall service and the website. We need at least 20 customer reviews before we add anyone to our Best Buys list.
Based on 95 reviews
Great service. Good at technical stuff. No passing the buck with the tricky stuff. Would happily recommend.
27/05/2020
Overall a good package, i.e. ISA and a SIPP. However a word of warning. If you have a SIPP and go into Drawdown then problems can and have occurred, as they outsource this service to EBS Pensions Limited, a London based company. This was not initially apparent when I transferred my plant to Charles Stanle Direct. Where the problems arise are two fold. You are forced to deal with the Charles Stanley office in Edinburgh, and the staff with the exception of Louise Millar, have little or no knowledge of pensions. You are not a client of EBS and the service level is impersonal and you cannot speak direct with them.
28/02/2020
Very helpful and speedy customer service.
06/02/2020
The team behind Charles Stanley Direct are excellent. The website and app are easy to use. (If there's one website feature I'd like to see, it's easy access to RNS news for stocks including an email subscription to RNS for a watchlist). The 0.35% fees are neither cheapest nor most expensive. The few times I've had to pick up the phone or use messaging or chat, the team have been professional, clear, knowledgeable and have sorted things out. If there's one area for improvement, it's the ability to trade foreign stocks on the website, without telephone trading and oversees custody charges. 💥
04/02/2020
Been trying to move my ISA account from Hargreaves Lansdown to Charles Stanley Direct since June 2019. The transfer has been painful, slow and difficult. It has been completed today after seven long months during which a significant portion on my money has been effectively frozen. The completion would not have happened without the help and interference of Charles Stanley in the process. Thank you! I am now free to deal with my own money as I wish!
28/01/2020
I was happy with them, but thought their fees were high. Since I saw Holly's recent rating table, I am thinking of moving to one of the better-value platforms.
23/01/2020
I had a Virgin Tracker ISA and I was sure I could do better but didn't want hefty fees and knew nothing about stocks and shares. But you don't need that kind of knowledge the CS website provides expert support and is an easy way into investing: there are good fact sheets that help you to make sound choices on factors such as risk, ethics and ROI. The site is easy to use and understand, and it gives you flexible control of when and how much you invest. Best of all, for a novice like me - the support people are FANTASTIC - knowledgeable, courteous, friendly and fast - 10/10 for them!
17/01/2020
I have an ISA with Charles Stanley and have had nothing but excellent service from their help desk when called for. Part of my holding recently was approached by a Canadian listed organisation. In that it might involve a vote I advised Charles Stanley I wished to vote and additionally asked whether i would have access within my ISA wrapper. I received a reply within 24 hours which was entirely satisfactory. I also note that there is now an online chat facility which I haven't used as yet but must be a tremendous advantage for quick advice.
15/01/2020
Cheapest platform available for the more modestly wealthy when I set up my account. There is a good selection of funds and good links to the appropriate materials to assist comparisons and reaching a sound decision. Helpful support via the portal messaging service.
14/01/2020
I like the flexibility that is offered. You can elect for a simple funds portfolio or select investments that suit your view of risk and your experience. I don't have much knowledge of investing so I prefer to keep my pension in less exciting funds which suits me. The website works really well and is fairly intuitive to navigate. I must say that in all my dealings with Charles Stanley Direct they have been prompt to respond and provide clear and complete information. This has made it easy to invest and to access my pension when I need to.
10/01/2020
Quite complex to get into but lots of information available. Moved here as more control over investment funds when compared to the simpler robo investors.
08/01/2020
Got a very, very good vibe with my first dealings with Charles Stanley Direct 4 years ago, good value, great helpdesk, nothing too much trouble. HOWEVER, the ramping up of fund charges and some annoying quirkiness in their website has got me wondering if it's time to consider capping or fleeing! I could give examples of this criticism but not enough space here. However... why can't I instruct a sell and a buy (ie: a fund switch instruction) in a single session without waiting ages for the sale proceeds to appear as ££ in the account? Why show "Ongoing Charges/AMC" in their info instead of the familiar "OCF"?
05/01/2020
Good for small investors. As your portfolio grows to over £50,000 they are not as competitive in terms of charges. They have a good spread of investments to choose from and provide lists of foundation funds if you are new to investing in the stock market. I would recommend them to the small investor just starting out with limited knowledge of investing as a good platform to use.
03/01/2020
I have been using Charles Stanley Funds Platform since 2013 and would recommend their service very highly to any investor. All my family now invest in ISA's and Pensions on their platform. It has the best call desk I have ever used in any business. Staff are very helpful, knowledgeable and responsive. Lindsay (on the desk) has been terrific personally monitoring a withdrawal for me. The call is always answered in a few rings and they get straight down to helping you. Service to me is very important because your pension is everything and Charles Stanley give me peace of mind.
26/12/2019
Works well for my needs as a passive investor with a small portfolio. Their fees are very reasonable and support is excellent - helping me out as a beginning investor.
23/12/2019
I am sure no one will be able to find a more diligent and caring service than that provided by the help desk at Charles Stanley Direct. Their attention to all my requirements have been above and beyond what any reasonable person could expect. Given that they also provide this service on what I believe is the most cost effective platform makes this company truly remarkable.
23/12/2019
Easy to use, informative, reactive to questions. I'd never invested outside cash before the bottom fell out of the interest rate and CSD have been great getting me into the market. Shame about the price increase but still good value.
16/12/2019
Fantastic! Not good. GREAT! I have had various ISAs spread around over the years. This is without doubt the easiest, most efficient & best one of all. So easy, I was able to open an account whilst on Holiday in France. Started dealing within hours of depositing some of my allowance. Clear to access & understand, absolutely no problems. Excellent staff a phone call away & really efficient & reassuring messaging service. Used only to clarify regarding other family members & friends transferring in/opening ISAs & JISAs. Love the website! I cannot speak highly enough of CSD. Highly recommended.
13/12/2019
I've known & used Charles Stanley Direct for several years having migrated from Charles Stanley because I wanted an execution only account; although the service is, as one might expect, continuously evolving, it has always been prompt, efficient & friendly. In all, highly recommended.
10/12/2019
I inadvertently contributed £3500 above my ISA allowance this year through another platform and although CSD had had the first contribution, they could not have been more helpful in rectifying this for me quickly, simply and efficiently. I was delighted with they're helpful, can-do attitude and the no-nonsense approach to solving the problem rapidly and without fuss. Five stars for service.
05/12/2019
I rate Charles Stanley highly. As others have said the website functionality is great and incredibly easy to use. The information is easy to gather and digest too. Their customer service team are also fantastic. All of my experience has been positive and their responses are timely and written in layman's terms which again helps with understanding. My only critiques are, as others have written, the fees for funds. I am not a fan of a proportion of my investment being taken as payment but would prefer a flat fee. Also, I would like the ability to set a stop loss on my investments.
03/12/2019
Website easy to use. Easy to invest in funds, investment trusts and shares. They produce a list of foundation funds and provide quarterly reports on the investments held. I have found it easy to buy and sell funds on this site, and would not hesitate to recommend it to a small investor.
23/11/2019
Used Charles Stanley Direct as charges were reasonable at the time I opened an ISA account. Various improvements were promised when charges were increased last year but cannot see much difference to date. I am not a fan of paying a percentage of my investment in charges as there is no difference in the amount of work to do on my account whether it is £50k or £100k. I am now considering changing to a fixed fee account with another platform, but as the service provided by CSD has been excellent I am wary of changing.
15/11/2019
Android app hasn’t been updated in some time and (as reported to them some time ago) it crashes every time I try to view my statement.
09/11/2019
It's not a website for beginners and you have to have some understanding of the different types of financial products.
08/11/2019
No comment.
22/09/2019
All good, replies to any query are always quick and clear.
18/08/2019
Whilst not the cheapest platform for my DIY investing, quality of service and prompt attention to detail more than make up for a slightly higher platform charge. Once used to the website layout, all information is to hand, with ready availability of research opportunities, KIIDs, statements, reports, summaries et. al. Having been with them for a few years, never once has a phone call resulted in 'Your call is in a queue,' or 'All our operators are busy...' Phone response has always been immediate with knowledgeable staff. That's important. Highly recommended.
18/03/2019
The web site has a few quirks and bugs. There is something funny going on with the authentication but all in all I am really glad I moved to Charles Stanley.
13/03/2019
I have always found Charles Stanley Direct to be an effective, straightforward-to-use, good-value online platform. With other providers I came across a few eccentricities which did not make them as good to use. I would recommend them to anyone, on the basis of my experience. The website has plenty of choice and explanations, so if you want to manage your own investments and save IFA fees, this seems to me an effective way to do it.
01/03/2019
Research is OK and the platform is user friendly on a p.c. I travel a lot and currently trading on a mobile device is not available. They need to get their lacy together and make this happen.
19/12/2018
Not too "pushy" and very helpful when I need to contact them about something related to my account. Correct me if I'm wrong about any of this, but the following are my niggles: I chose Charles Stanley because their ISA fund fees were low and suddenly they've ramped them up by quite a percent, without any apparent improvement in services provided. The platform seemingly does not allow you to make a seamless "sell A and buy B with the proceeds" type of command. You have to wait days before the A transaction clears and the funds show up to permit the B transaction. The CS research info is a bit off-piste compared with HL or AJB which use familiar FE Trustnet or Morningstar data.
19/12/2018
The website/phone app is slick and easy to navigate. N/A
19/12/2018
Easy to navigate site and to research investments
19/12/2018
Started with them at a lower cost point in history - have now raised charges which is disappointing. Their fund data is excellent, but for some reason their share and IT data format is less helpful.
25/11/2018
Very helpful with queries. Not patronising. Really like their website navigation - transactions could be slicker. Low charges made me to put my ISA with CSD, so I was horrified when they increased it by 40%. Seriously thinking about moving to AJ Bell. A few irritating things about the website; can't sell a fund & buy another in a single session without waiting days for Sell transaction to show as cash. Hargreaves lets you. The shown fund name differs from the KII official name. The research info is odd compared to other providers. Joined due to good customer service, cost & Holly Mac's review.
14/11/2018
Opened what's called a General Investment Account as couldn't see the point of an ISA and have to say the opening pages were really easy and then I spoke to a nice lady in Edinburgh who told me how to transfer from my other place. The transfer happened in 7 days which is faster than a bank account transfer. Impressed. Website is easy to use. Don't know about value for money but looks reasonable. Everyone charges about the same.
18/10/2018
While not the cheapest offering on the market, I have found the updated website and app to be excellent and the customer service has always been efficient and very helpful.
03/10/2018
It does exactly what you want it to, at a reasonable price, with clarity, useful information and detail. Response time is quick, service efficient and accurate .
03/10/2018
My husband and I signed up to Charles Stanley Direct because it's a trusted brand and Brexit is on the horizon. We transferred our ISA accounts from Hargreaves and the process was very quick. Charles Stanley's help desk is really amiable and they pick up the phone quickly with a knowledgeable person on the other end of the phone - where else do you get that kind of service? Fees have recently gone up but to pretty much standard levels. The app is amazing and we regularly look at our stocks and brag about who is doing better. Great fun.
03/10/2018
No comment.
12/06/2018
No comment
06/06/2018
Satisfied.
09/04/2018
I opened an account as my existing platform didn't do IPO's and I also wanted to see whether they were suitable to transfer financial advisor-run funds when I dumped them - and "get back control"!!!! Managed to send the ISA transfer form to their London address which they transferred to Scotland by post, not bothering to tell me so it was too late to use ISA for IPO. Cancelled the account. Wasn't impressed. Opened a/c elsewhere.
28/03/2018
Just transferred my shares ISA to Charles Stanley and their helpdesk is very helpful. Spoke to a guy called Phil who reassured me and took me through the process. It was really easy and I felt informed along the way. I sold some stock and bought a small amount in a fund which was free of charge to deal. They are bit pricey for stock dealing but great if you want to hold for long term.
28/02/2018
No comment
11/02/2018
Website could be more intuitive to help the novice investor.
30/01/2018
Customer service has been good both by secure messages and on the telephone. I travel quite a bit so a trading app would be really useful.
30/01/2018
Easy to use, gives me the information that I want when I want it. I don't get bombarded with loads of emails, just things that I need to know which is great.
30/01/2018
Website is clear and easy to use. Provides CGT reports (when requested) in addition to CTC. Helpful staff.
30/01/2018
The company offers free fund dealings, easy monthly investment, and low annual charges compared to other platforms. The app could be improved to view more information about the funds and search for new funds, although I believe they are currently working on an update for the app anyway.
30/01/2018
It's cheap. More research.
30/01/2018
Fine for small portfolios, would be better if fees were capped.
30/01/2018
Good functional website. Excellent customer service.
30/01/2018
Simple IDV process, app that makes it easy, low cost tracker funds.
30/01/2018
Nice clean website with good tools.
30/01/2018
Their recommendations are very good.
30/01/2018
Now very expensive for basic share dealing, which is what I use. Website is cluttered and confusing for a low volume trader.
30/01/2018
Customer service has been good when accessed.
30/01/2018
Be more responsive.
30/01/2018
Good website. Research info has deteriorated - use of BATS instead of FTSE indices and data on investment trusts is poor (no discount info). Charges are good for small amounts, but not competitive for larger amounts so I will not invest further, which is a shame as I like the platform.
30/01/2018
Quick response to messages; helpful phone advice.
30/01/2018
Charges are low, especially on SIPP over �30000. The website is not that straightforward to use.
30/01/2018
No charge an cash holdings. Valuable when phasing/siting on sidelines. Dashboard can be a tad confusing.
30/01/2018
Their app has only just caught up with modern times, but is now good. Dealing on the app would be great. I like the simplicity of the platform; the firm isn't as "salesy" as some others, who frankly appear to want you to churn your holdings (I think we know who I'm talking about).
30/01/2018
Website could be better. Like the secure email facility.
30/01/2018
Old fashioned, simpler information, it's too complex for me! Use easier to understand literature, (More pictures)!!
30/01/2018
I am new to investing so tried this one first as it has been given good ratings. However: I have found the website very slow and frustrating to use. Gone over to Hargreaves Lansdown... much better.
16/12/2017
Cheap but awful UX, hard to navigate and picking funds an issue. I wanted to try out Charles Stanley Direct with my 4th child's JISA and would have moved more money over but what a pain it is... maybe it's because I don't have hours to scour the market.
13/12/2017
1) easy, relatively intuitive user interface. 2) among industry peers, relatively low admin charges. 3) Fund choices however trail that of the largest peer (Hargreaves) in some categories.
10/10/2017
Fantastic Helpdesk. Good price point. Company feels like they know what they are doing and I trust them. Backed by a very secure company.
26/09/2017
Solid reputation.
26/09/2017
Good experience from registration through to account opening. Took literally 2 minutes. Good choice of investments and useful info around the site.
Richard
10/08/2017
Simple website. Good choice of funds and I liked their best buy list for funds - very informative. Easy to use.
10/08/2017
Their service is very good - they have a helpful Helpdesk where nothing seems too much trouble. I've just bought funds in my ISA and the trading was free and the headline rate is 0.25% which is better than others and the choice is good. Nice that they don't bombard me with emails.
10/08/2017
I like the website, and it's low cost.
04/07/2017
No comment.
04/07/2017
Customer service responses always quick and useful. Lowest fees I could find. Could do with more research articles.
04/07/2017
Easy to use with no hassle. Would like easier to use research tools as I find them a bit hard to find.
04/07/2017
Website is generally a bit clunky, especially the search function.
04/07/2017
Dependable.
04/07/2017
It's very corporate and dull.
04/07/2017
Cheap and no different to any of the other services.
04/07/2017
Easy to use website.
04/07/2017
Its okay, they respond to messages in a sensible way although refuse to communicate by email, the secure messaging business can be painful. When I had to organise a transfer of two holdings from them to Bestinvest they snarled it up completely.
04/07/2017
Very good website, very clear. Good levels of both fund and equity research. Excellent customer service. The app should really have trading functionality and the layout in the post login area could be updated to be clearer.
04/07/2017
Low cost for a small portfolio. An android app would be good as there is only an iOS one at the moment.
04/07/2017
Price and reviews on BM, website not as good as Hargreaves.
04/07/2017
Easy to use website and I can easily see how my portfolio is performing. They should introduce a mobile app. Overall very good.
04/07/2017
. . .
04/07/2017
I think they get the numbers right but the web interface is poor and yet another set of passwords to remember.
04/07/2017
Very secure website, good advice and lots of account detail.
04/07/2017
It has a lot of information, which is great as I'm new to dealing stocks and shares. It seems very transparent.
04/07/2017
Easy to use and excellent customer service, but is there an app?
T
04/07/2017
Straightforward, useful research tools and easy to use. Quick to respond and clear communication.
04/07/2017
Best Buy for Sustainable Investors
Platform fees are waived on socially responsible investments until July 2020. There is a clear link from the homepage which leads to a newly created and narrow shortlist of 7 SRI funds.
The website has undergone a lot of changes over the last year with the logged-in state a lot clearer and easier to use.
If you’re an inexperienced or tentative investor the ‘Not sure where to start’ function is a clear, simple way of determining what might be the right investment for you. Once you’ve found your way to the right product or investment, trading is straightforward, the reporting is clear, and the customer service is good.
The app has improved a lot recently, and you can now trade and add both funds and shares.
The app is a lot cleaner than the desktop version and their secure messaging feature should be common across all apps. The ability to customise what is displayed on the app is handy and you can reveal more information by tilting to a landscape view. The app still features a lot of jargon but is visually very appealing.
There are two sides behind the scene. The newly updated pages such as the image to the left, are clean with improved functionality. However, within the older pages, there is often a lot of small font and many numbers on a page – probably a nightmare for those with tricky eyesight. Overall there is a nice visual display of fund research although the pages do carry a lot of jargon.
This word cloud has been created from customer reviews of Charles Stanley Direct.
Pink is positive and grey is negative.
The size of the word indicates the frequency of mentions.
Stocks and Shares ISA
Junior ISA
Investment Account
Pension
Own brand funds
Stocks and shares
Charles Stanley Direct is a relatively cheap way to invest for those with less than £50,000 to invest, at 0.35% per year, plus any fund management costs. There are no fund dealing charges, so for investors putting small amounts into a few different funds on a monthly basis it is low cost. You can also buy company shares. There is also an annual £120 fee for a pension for investors holding less than £30,000 on the platform.
It will be a bit overwhelming for less confident investors who have a huge range of investments to navigate and not that much help with any filters. There is lots of choice and research available. The so-called Foundation Fund list shows their favourite funds which is useful. There is also a range of all-in-one funds – the Charles Stanley Multi Asset Funds – for those that want all the investment done for them. These are active funds which are relatively pricey in comparison to passive options.
Expect to pay about 1% all-in for a self-selected ‘active’ portfolio – this is good value. It’s worth considering for Junior ISAs too.
| Provider Size: | Mid-sized investment platform administering around £2.5bn |
| Minimum amounts: | £50 minimum monthly payment £500 minimum initial investment into a fund |
"We currently have around £135k in a Scottish Mortgage fund with Baillie Gifford. We’ve received a letter stating that they plan to transfer us to Hargreaves Lansdown who will charge the same fees as Baillie Gifford for 3 years. Is this a good idea or should we look elsewhere? Should we consider Charles Stanley Direct, for example? Matthew"
Matthew, London
30/05/2019
Read our replyWe currently have around £135k in a Scottish Mortgage fund with Baillie Gifford. We’ve received a letter stating that they plan to transfer us to Hargreaves Lansdown who will charge the same fees as Baillie Gifford for 3 years. Is this a good idea or should we look elsewhere? Should we consider Charles Stanley Direct, for example? Matthew
Matthew, London
30/05/2019
Lots of fund managers have over recent years, decided to stop looking after retail customers directly and have made arrangements with alternative platforms.
This is like some product manufacturers deciding that they will no longer sell direct, but instead they're going to make their products available in supermarkets or department stores.
Hargreaves Lansdown I guess, could in this analogy be seen as a bit of a John Lewis, where you will be able to hold your Scottish Mortgage Investment Trust and access it online.
I have to say, that Hargreaves Lansdown's service is exemplary, and they're generally very well recommended by customers.
On the basis that you are not going to be charged more than you are today, I think it's probably a very good deal. You certainly can try the service for a year, and see how you go, knowing that you've got time to move should you want to.
I would suggest in this instance, to see how you go before jumping ship.
The other good news is that because you have the Scottish Mortgage Investment Trust, Hargreaves Lansdown do cap the annual administration charges on investment trusts. So down the track after the 3 year period has expired, if nothing else has changed, you will be charged very reasonable fees.
The other thing that Hargreaves will do, is to let you have a look around and see if you want to diversify your holdings. Should you wish to do this, you won't have to open up multiple accounts with lots of different providers.
Hope this helps.
Holly
We are not regulated to give personal financial advice - This isn’t full-fat regulated financial advice. Boring Money is a publisher and not regulated by the FCA.
This means we can't help with specific personal circumstances or recommend specific investment products. It also basically means that if we say something daft, you have no recourse to come back and complain.
We’re only allowed to give you a steer or share an opinion or tell you the facts - That said, we promise that our answer to you is an independent unbiased perspective with no commercial gain to make. If you need regulated financial advice, you can find a good adviser via sites such as Unbiased & Vouchedfor.
"Where can I get a good Junior ISA?"
Rebeccah, Greater London
27/03/2019
Read our replyWhere can I get a good Junior ISA?
Rebeccah, Greater London
27/03/2019
You need first to decide where to get the Junior ISA (which is the wrapper) and then decide what to put in it – cash, stocks and shares, funds etc.
We’re a bit suss on Cash Junior ISAs – if you’re saving for a baby then we think the stock market is likely to do better over the long-term. However there are good rates available for cash Junior ISAs – currently Nationwide and Coventry are offering 3.25% but these do change so please check online for current deals.
Many parents choose an investment platform for their stocks and Shares Junior ISA. Have a look at which ones we suggest here: Hargreaves is not the cheapest but they offer decent value and they are big and solid. Cheaper, but still good options, are AJ Bell, Charles Stanley Direct or Fidelity.
These platforms all offer a wide choice of investment options to put in a Junior ISA, too wide for many novices. That said, there are plenty of tools to help you find the right option: recommended fund lists and so on. In general, people tend to be over-cautious with their children’s money. You may have 15+ years to invest. That gives you a long time to ride out the ups and downs of a stock market. I know that people don’t like the thought that the capital value could drop, but over the long-term, the stock market generally outperforms cash.
For those new to investment, multi-manager funds might be an option. These are like ready-meals versus choosing the ingredients and making the meal. For less confident investors, it takes some of the pain away from choosing individual stocks or funds. Many of the platforms have their own versions – see here from Hargreaves Lansdown, AJ Bell and Charles Stanley Direct.
A cheaper option would be the Vanguard LifeStrategy 100% option, available through the Hargreaves platform. This is a passive fund and costs 0.24% instead of the HL Multi-Manager 1.46%. Passive funds are where computers just pick the world’s biggest stocks in proportion to their size. And if oil is out of favour, well you still have the oil shares. And if retail is going gang-busters, well you don’t get any more than the proportionate weighting. You are buying the average.
Active managers cost more because they employ expensive people to make a bet on which stocks will do better – if they love M&S, they can buy twice as much of it. If they hate Easy Jet they can sell it all. Passive guys can’t do this. They have to hold what we call the ‘index weighting’ – if HSBC is 5% of the main basket of shares, the FTSE 100, they have to hold 5% in HSBC shares.
Finally, in terms of paying into your Junior ISA, it is worth setting up a direct debit every month. That way, you drip feed into these and run less risk of investing when the market is at its highest, through simple bad luck and bad timing.
We are not regulated to give personal financial advice - This isn’t full-fat regulated financial advice. Boring Money is a publisher and not regulated by the FCA.
This means we can't help with specific personal circumstances or recommend specific investment products. It also basically means that if we say something daft, you have no recourse to come back and complain.
We’re only allowed to give you a steer or share an opinion or tell you the facts - That said, we promise that our answer to you is an independent unbiased perspective with no commercial gain to make. If you need regulated financial advice, you can find a good adviser via sites such as Unbiased & Vouchedfor.
"Following the announcement of the platform increase at Charles Stanley Direct I think this is an ideal time to review my finances. My ISA started out with 100% in St James's Place, but following new investments and transfers over the last 3 years, I currently have about two thirds of my ISA in funds with Charles Stanley Direct and about one third left with St James's Place. Having outperformed the St James's Place funds with my own choices, I was planning on transferring the remaining one third to Charles Stanley Direct. However the recent announcement in platform price increases at Charles Stanley Direct is making me have a serious re-think. Having less than 250K invested, it seems to put me in the worst position possible, with the 40% increase in platform fees. I also have a private pension that I transferred to St James's Place, and I contribute a small amount into it monthly. Would I be correct in thinking the fees are also high on this, and I could do better elsewhere? Can I transfer into an SIPP for example? I'd be very interested to hear your thoughts."
Gerry, Bedfordshire
15/08/2018
Read our replyFollowing the announcement of the platform increase at Charles Stanley Direct I think this is an ideal time to review my finances. My ISA started out with 100% in St James's Place, but following new investments and transfers over the last 3 years, I currently have about two thirds of my ISA in funds with Charles Stanley Direct and about one third left with St James's Place. Having outperformed the St James's Place funds with my own choices, I was planning on transferring the remaining one third to Charles Stanley Direct. However the recent announcement in platform price increases at Charles Stanley Direct is making me have a serious re-think. Having less than 250K invested, it seems to put me in the worst position possible, with the 40% increase in platform fees. I also have a private pension that I transferred to St James's Place, and I contribute a small amount into it monthly. Would I be correct in thinking the fees are also high on this, and I could do better elsewhere? Can I transfer into an SIPP for example? I'd be very interested to hear your thoughts.
Gerry, Bedfordshire
15/08/2018
It’s hard to comment without seeing the specifics but here’s a general opinion.
We should take a long-term view of performance, as short-term tests have even shown that my cat Mog could outperform over a year, just by sitting on the logos of the shares she likes! This year for example if people have backed Amazon, Apple and Facebook, they will have done super well – but at some point this will crumble a bit and some lesser-known firms which have been unloved will come back – and so the cycle will turn. So be careful about judging performance on anything less than 5 years, although I know we all do it. Pre tech crash I was the best fund manager in Australia (in my opinion)! During the crash, I realised that I had been youthfully arrogant, and in fact one of the worst!
That said, if you are picking a good mix of funds from around the world and you’re doing OK, then the lower fees you get as a DIY investor can make your long-term returns higher. I am generally negative about St James's Place because they're not clear enough on what they charge, and they can charge very high initial fees or high exit fees. BUT a good adviser will do more than simply pick funds for you, so it depends on your views about the overall service you are getting.
As for Charles Stanley Direct, well yes it’s a 40% hike BUT it’s still a reasonable 0.35%, which is slap bang on the industry average. So they are not taking the mickey here.
I see no reason really why you would not continue with the planned move of the rest of your ISA to Charles Stanley Direct. You could shop around to try and find somewhere for 0.25%, but it sounds as though you have had a lot of change and admin already. I’d pull the ISA into one place, breathe for a year, then you can always move if the service isn’t up to scratch?
Your pension is trickier. I believe – and do check – that St James's Place charge exit fees on pensions which start at about 6% a year, which I hate. This reduces by 1% a year. If so, there’s not much point in moving it today. But there’s no rule to say you can’t set up a SIPP elsewhere and chip into that monthly.
I would on balance leave the St James's Place pension in place until such time as there will be no exit fees – check how long this will be. In the interim, you can set up a SIPP online. You may as well do that at Charles Stanley Direct for convenience. As long as you have more than £30k on their platform, you won't pay the fixed fee for a SIPP - just the ongoing 0.35%, which is OK.
Again with a DIY SIPP make sure you spread investments around geographically. Have some global funds, not just UK stuff. Look at the Best Buy fund lists on Charles Stanley Direct and others such as Hargreaves Lansdown. If you’re unsure a ‘passive’ multi-asset fund such as the Vanguard LifeStrategy range is cheap as chips, will do all the picking and mixing for you, and is a simple and easy way to set and forget.
Hope that’s helpful.
Holly
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