its now 2023
and T212 still not offering a Bed and Isa function
are they working on this?
for those that dont have the capital to do this and forcing us to manually do it ourselves
waiting for funds to clear and being out of the marked potentially loosing money
its now 2023
Why don’t you politely propose this might be a useful feature for someone that doesn’t want to do it manually(list the customer benefits).
If it gets a lot of interest on the forum, perhaps it might be considered for development?
I’ll run your suggestion past the team, @BlueSonic, and once I get word whether this is something we’ll consider working towards or not - I’ll let you know
When I do this I figure that I will be equally likely to either lose or gain money because being out of the market. Over the few days that it takes to move money from Invest to ISA the market is pretty much a zero drift random walk.
Of course I will always lose a small amount because of bid/offer spread. “Bed and ISA” is more important with brokers who charge a trading commission. They sweeten things by charging one, rather than two, commissions. But this is only with GBP stocks and funds. Since with Trading 212 there is no commission there is much less to gain from a “Bed and ISA” arrangement.
If you have £20,000 to move across, why not do it is ten trades of £2,000, spaced over a few weeks? Then no more than £2,000 ever needs to be out of the market. You can sell in invest £2,000, and have £2,000 ready in ISA to immediately repurchase. Because Trading 212 does not charge for trades, this costs the same as two £20,000 trades. Making 10 sales and 10 purchases of £2000, there is a good likelihood that the amounts gained or lost by being out of the market will cancel out.
I thought bed and isa was specifically selling shares in an invest account and buying them back in isa. I didn’t think it was possible to transfer shares direct due to tax and/or ISA regulations.
You are correct with this.
Other brokers will bed and isa. They sell your shares for you then straight away buy them back in your isa for you.
No having to faff around waiting for the trades to complete them waiting to transfer funds over then having to place buy orders again
I can’t see any other free trade brokers offering a Bed and ISA service, so it’s not like we can push on them being behind the times.
Some of the bigger brokers do offer this, but charge:
Hargreaves up to £11.95 a share
InteractiveInvestor £5.99 a share
Struggling to see if Interactive Brokers or if any other big players offer this. Perhaps it’s not a common offering out there as niche to the UK market, and complicated if you have say more than 20k assets in a GIA…
From the HL site:
But as part of our online service you can sell shares, move the cash to a Stocks and Shares ISA or SIPP, and buy back the same shares in your ISA or SIPP by giving one instruction.
For me, it isn’t a good solution:
a) in the sell, no control on sell price
b) it solidifies the returns for the good and bad and again no control for the client
c) no control on buy transactions for the client, including the prices
d) client looses money due to possible capital gains of the shares sold, as it realize the gains. No tax harvesting practices
e) client will pay more taxes, due to 0.5% UK Stamp Duty on shares bought
f) Taxes and/or exchange fees will apply to foreign shares bought (e.g. US, France, Italy)
g) besides fees per share from this service, £11.95 per share bought
h) a maintenance fee of 0.45% per year for all shares held in those accounts, capped at £45 per year for the Stocks and Shares ISA and £200 per year for the SIPP.
There is indeed no way to move investments into an ISA on any platform without the issues of b) through f). Capital gains must be realised and fresh stamp duty, etc paid.
Doing it yourself at least gives you the opportunity to choose the timing and sales price and think about what losses should be harvested to cancel out gains.
This is worth a read. Some options out there as well.