We are very pleased to announce that share dealing is now available to our FundSupermarket clients.
The charges that apply to shares are generally the same as for Investment Trusts (IT's) and Exchange Traded Funds (ETF's) that are already available on the platform, further details are listed below.
As well as FTSE 100 shares we now have shares from the FTSE 250, FTSE Small Cap, FTSE All Share and FTSE AIM indices.
We expect to see further shares added over the coming weeks and months. Global shares in the form of CDI’s (CREST Depositary Interests), Corporate Bonds and UK Government Bonds (Gilts) should also be available in the near future.
If you want to check what shares, IT's, ETF's or funds are available on the platform there are two options;
Existing clients - please login to your account and click on the Investment Finder tool.
New clients - you will need to set up an account first
What are the charges for receiving dividends? If you request that any dividend from your shares, IT’s or ETF’s is reinvested back into the same security you will incur a dividend reinvestment charge of £1.50 per deal, this is instead of the £10 dealing fee. Neither of these charges apply to funds (unit trusts or OEIC's).
If you request that the dividend is held as cash in your account or is paid out as cash to your linked bank account, you will not be charged this fee.
What are the charges for regular monthly contributions? You will be charged £1.50 for a regular monthly contribution into a share, IT or ETF, this is instead of the £10 dealing fee. Neither of these charges apply to funds (unit trusts or OEIC's).
How do I change my income settings so that dividends are reinvested or paid as cash? The income settings are very flexible and allow you to specify a default setting for all income received in your account(s). In addition you can also set up custom settings for each individual investment that you hold.
To amend your income settings, log in to your account and click on My Accounts, Manage Investments, Income Management.
You will then see your account(s) and to the right you should have the option to Edit Settings. Click on this and you will see the default settings for your account which you can amend. The options are as follows;
Automatically reinvest - Any dividends that you receive will be automatically reinvested into the same security that they came from. If the dividend is from a share, IT or ETF you will be charged a dealing fee of £1.50 as well as Stamp Duty for shares and IT's. If the dividend is from a fund then you won't be charged a dealing fee.
Hold as cash in this account - Any dividends received will be held as cash in your ISA or Investment account.
Hold as cash in Cash Management Account - Any dividends received will be held as cash in your Cash Management Account (CMA). For the time being the only purpose of the CMA is to pay the Cavendish Online Ongoing Fee of 0.05%, it cannot be used to pay FundsNetwork's Service Fee of 0.20%. If you do want dividends to be held here to pay the Cavendish Online Ongoing Fee, please do contact us as we need to make a small amendment to your account to allow this.
Pay to my bank account - Any dividends received will be paid out to your nominated bank account.
What are market orders and limit orders? For deals that you place in shares, IT’s and ETF’s on an account that has been migrated to the new platform you will have the option of placing a market order or a limit order. If your account has not yet been migrated to the new platform then any deals you place in IT’s and ETF’s will be placed once a day at lunchtime.
Market Order - You request a deal is executed and you will see the live market price at that time. You will be given 15 seconds to decide whether or not you want to proceed with placing the deal at that price.
Limit Order - You request a deal is executed but you can specify the price that you are prepared to buy or sell at. Your deal will not be executed until the market price hits your limit order price. Please do be aware that any Limit Orders that you submit will expire when the market closes on the day that you submitted the order, or when the market next closes if you placed the order outside of normal market hours.
How do I switch from funds to shares/investment trusts/ETF's or vice versa? You will need to sell from one product into cash, then use that cash to invest into the new product. For example if you hold fund A in your ISA and you would like to switch that into share XYZ plc you would need to do the following;
Sell the fund in your ISA and request that the cash remains within your ISA, i.e. do not request it to be paid out to your bank account.
You will then need to wait for FundsNetwork to receive confirmation from the fund provider as to what the sale proceeds will be. This could take up to a day or more from you submitting the sale instruction, it will depend on the time that you placed the sale and the time that the fund being sold is priced. We would suggest that you check your account every few hours if you are very keen to invest the sale proceeds.
After FundsNetwork have received confirmation of the sale proceeds they will update the available cash in your ISA. You will then be able to invest that cash and Buy your chosen share.
Similar rules would apply if you were doing the opposite, i.e. selling a share and investing that into a fund.
I hold paper based share certificates, can I move these into my account? For the time being it is not possible to transfer any paper share certificates into your account, but we do hope that this service will be offered soon.