Investment Trading Account
What is Investment Trading Account?
Investment Trading Account allows you access to a range of investments including funds, ETFs and UK shares. This type of account does not carry the tax reliefs of investing as is the case with an Individual Savings Account (ISA) or a Junior ISA. If appropriate, investors and savers may therefore look to maximise their ISA allowance or Junior ISA allowance (in terms of saving for children) for any given tax year, before they use Investment Trading Account.
Is Investment Trading Account right for me?
The Investment Trading Account could be right for you if you:
- Are looking to build up a portfolio of investments, including UK shares, funds and ETFs
- Want unrestricted access to your money
- Have used your £20,000 ISA allowance this tax year (2018/19) and you are interested in investing more
- You do not want to lock your money away in a pension until the age of 55
- Want to invest without annual or lifetime limits
- Understand that investment growth is not guaranteed
- Are willing to accept that your money is at greater risk and are prepared to invest for at least five years
Who can set up Investment Trading Account?
You can set up Investment Trading Account, if you are resident in the UK and are aged 18 or over.
Which investments can I invest in?
All investments available through your account will have been screened for both Ethical and Sharia compliance in accordance with the set criteria in the Ethical Investment Policy Statement. This document can be viewed on Simply Ethical website.
Subject to the screening restrictions that apply to your access to investments, the service enables you to transact in following investments:
- UK Equities (Shares)
- Investment Trusts
- Exchange Traded Funds (ETFs)
- Open and Closed-ended Funds (e.g. Unit Trusts, OEICs)
Can I set up an Investment Trading Account for a trust, charity or company?
Yes, you can set up Investment Trading Account for trusts, charities or limited companies. Although, this cannot be done through our online application. Please contact us for further information on opening an account.
What are the charges?
There is no set up cost.
The annual administration charge is tiered within bands as follows:
- 0.45% per annum for the first £250,000;
- 0.25% per annum between £250,000 and £1m; and
- 0.10% per annum above £1m.
This charge is subject to a minimum of £12.50 per quarter. This charge is calculated daily, based upon the value of your investments and charged to the account at quarterly intervals on 31st March, 30th June, 30th September and 31st December each year.
The online dealing or trading fee is £5.95 per trade. This applies every time you buy or sell unit trusts, OEICs, investment trusts, ETFs, VCTs and UK shares.
Please read our Charges Schedule for complete details. This is accessible through our website www.simplyethical.com or by contacting us.
What is the minimum and maximum amount that can be invested in the Investment Trading Account?
The minimum investment to open an account is £2,500 or £1,000 plus £100 per month. There is no maximum limit to the amount you can invest.
For each account, you must maintain a minimum cash balance equal to £50 or 1% of the portfolio value, whichever is higher. If you don’t, or if the cash balance is insufficient to cover regular withdrawals or pay our charges, we may at our discretion sell investments in accordance with Self Select Service Terms and Conditions.
How do you deal with the cash I hold within Investment Trading Account?
Any cash within your account is held on deposit in a Sharia compliant bank account. No interest is paid on cash.
Why do I have to maintain a minimum cash balance?
The minimum cash balance ensures that there is always enough cash in your account to pay all the charges you have agreed to pay, to fund any withdrawals you request, to credit the proceeds of any investments you decide to sell and to allow us to make all other credits and debits necessary to administer your account.
How can I make payments into my Investment Trading Account?
Single payments can be made electronically by instructing your bank. The relevant bank details and a reference number will be provided when your account is opened with us. Regular payments can be made by setting up a standing order with your bank.
Alternatively, you may wish to make payments from the payment functionality on the investment platform. There may be a charge levied by the 3rd party payment provider. You will be informed of the charges prior to payment.
Can I move cash from my Investment Trading Account to other account(s) with Simply Ethical?
Yes you can. You can move cash held in the cash account of your Investment Trading Account into the cash account of ISA. You must be sure that you have sufficient unused allowance for the tax year before you transfer funds to an ISA. You will need to instruct us to perform the transfer.
When can I take money out of my Investment Trading Account?
Cash can be taken out of the account any time. You can either withdraw the full balance held in your account, or withdraw part of the balance.
How do I make withdrawals?
You can withdraw funds from your account, by accessing your online account. These will be paid directly to the nominated bank details held on file for you. We will normally pay withdrawals within three working days of our receipt of your instructions.
Where are withdrawals made to?
For security reasons, we only make withdrawal payments to your nominated bank account. We do not pay withdrawals to third parties other than to your estate in the event of your death.
Can I transfer existing investments that I hold into the Investment Trading Account?
To transfer your existing account, please complete our online account opening application and the transfer form.
We only accept transfer in the form of cash.
Cash transfer means that your current investments will be sold and the cash transferred to your account for you to buy investments of your choice (subject, of course, the investments being available on our platform and satisfying our ethical investment criteria).
Please be aware that a cash transfer means:
- You may lose out on investment growth while your investment is not invested during the transfer period.
- You may incur charges when you purchase new investments to be held within your account with us.
- You will not have access to your account until such time as the transfer is complete.
What about tax?
Please remember that the tax benefits of any investment depend upon your personal circumstances and tax laws may change; so you should always refer either to your financial adviser or a specialist tax adviser for up to date tax advice.
Do I pay tax on any dividends or gains within my Investment Trading Account?
All income and capital gains from your account will be subject to capital gains tax and income tax, in accordance with your individual tax position.
What happens to Investment Trading Account if I die?
Once we are advised of the death, we must take steps to close the account. We will liaise with the persons dealing with the estate regarding the sale of any investments, so it is important that they hold details of the account.
What might I get back?
The amount you get back is not guaranteed and depends on a number of factors, such as:
- How much you invested
- The length of time you invested for
- The performance of the investments you have chosen
- How much our charges are
- The amount of any withdrawals you have taken
Can I change my mind?
Yes. After we have opened your account we will confirm this in writing. You will then have 14 calendar days starting from the day you receive this to change your mind and cancel your account. If you decide to cancel, you should write to us at our registered address.
Once we have received your notification, we will give you your money back less any other payments, charges and fees in accordance with the Self Select Service Terms and Conditions. If your investments have fallen in value, you will get back less than you invested.
If you do not cancel your account it will continue in force in accordance with the Self Select Service Terms and Conditions.