I'm switching provider!

Recently, I transferred my ISA from HL to Interactive Investor. The switch went well and I'm happy with Interactive Investor's service.

I have now initiated the transfer of my SIPP.

Two reasons:

First, I was becoming increasingly frustrated that HL would not allow me to trade some stocks that I wanted to. HL stipulates that they must settle on Crest. Frontline is just such an example. I can't trade it on HL, but I can on II.

Second, costs. I will save a not inconsiderable amount of money by switching. To start with, the annual charge will be quite a lot less. On top of that, I should make quite a saving on foreign exchange charges. With HL, every time I buy or sell an overseas stock, I am charged a prohibitive foreign exchange fee - in my mind, it should be market rate plus 10 basis points. Interactive Investor also charges a high forex fee, but it does give you an option to settle in the currency of the stock being traded. So, if I were to reduce one of my Canadian stocks, I could choose to keep the C$ in a separate pot, thus avoiding the foreign exchange fee. If I then buy another C$ stock, I can settle it from the C$ pot.

I have been with HL a long time and have, on the whole, been impressed with the service. It was a difficult decision, but in my case, I think switching makes sense.

I am definitely not suggesting people follow my lead, but it is worth checking that one is getting the best service and not being overcharged. Those savings compound over the years. A lot will depend on the size of portfolios - for me, it makes sense.