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Does anyone have any experience of Bed & ISA within Barclays Smart Investor please.
I picked the following from their website:
Bed and ISA is only available between 08:00 and 16:15 (15:30 on the last day of the tax year and 12:15 if the market closes at 12.30). Any instructions submitted after this time will be processed the following day.
To place a Bed and ISA order, just click on the ‘Bed and ISA’ button. You’ll find it by selecting ‘Overview’ once you’ve logged into your account. You can then choose which investments you want to sell from your Investment Account and buy them again within your Investment ISA.
Does it all actually happen on the same day? I assume the risk is that news is released when the shares are being transferred in which case I assume less shares would be bought back if the price had changed.
sharesport,
Don't have experience of bed and isa on any platform, but my understanding is that a buy and sell order will be placed simultaneously and potentially (depending on the platform provider) be executed either as a cross-trade (e.g. same buy and sell price), or negotiated with the broker as close to the mid-price as possible, so the price differential may not be too great.
I believe trading fee would still apply.
From what you have advised, it would appear to be done same day if requested within the required hours. I would expect you would see a warning note if there was a possibility that your instruction was late.
I could be wrong here as it is possible that cross-trades are no longer permitted.
Their FAQ's may explain it more
OK,
The FAQ's say there are no fees, but there may be a price differential, although trades would be expected to be done in quick succession.
It's a pretty standard transaction to be fair.
Potentially a small change in shares bought back, but the FAQ's seems pretty useful in outlining everything
Thanks Croq. Much appreciated.
sharesport, be aware that the spread at the time of execution can affect the cost in shares for the transaction. I have been caught with a wide spread and paid the price!
ATB
Shareport
I’ve had major issues with Bed and ISA through Barclays smart investor!! Make sure if you do it between those hours!!! It is a automatic process but within working hours they are supposed to manually monitor B&I transactions! iIdid it outside those hours and they process at bid offered prices and cost me about £2,500! If you do it during the day it should be done at a maximum of £100!!
I’ve had major issues for two years running but always won my case and the fees should not amount to more than £100 worth of shares!!
Any issues let me know!!
Thank you Eddietheo & Tetrolite
Sharesport
Should anything go wrong then just complain and hold your nerve with them!! They refunded me and also sent a nice hamper in compensation!! You shouldn’t lose out on more than £100. They should NOT do a sell and buy back which with the spread on AFC is a huge loss as we all know!!
@muscorum - your response does surprise me. As you know this facility allows anyone to move shares into an ISA and it's effectively a buy and sell action at the same time.
The benefits:
- not being out of the market should any news affect the share price upwards
- not having to worry about the spread - moving shares outside a B&I would lose shares (hundreds of pounds worth)
- not having to worry about availability of shares - moving shares outside a B&I would possibly have fulfilment issues for eg. £20k
- minimal cost / loss (shares) fior a tax free wrapper
- no need to buy shares in the ISA before selling (spare funds required and doubles risk)
A B&I is great, or am I missing something!?
But Muscorum there is a 50:50 chance of it going the other way. if you did this 2-3 weeks ago at 28p you would have to see a lot more shares. B&I mitigates the risk and hugely reduces the costs. What you are advocating is risky.
for me - I've normally had 20k outside of the ISA only April 4 that I've wanted to move asap on the (yearly) anticipation of transformational news and lift in the SP so the B&I has been of value. Also, with the decline in SP over that past few years that mean I was able to get more shares into the ISA (ie: I paid more the £20k for the £20k shares I'd moved) as the SP was well below my average for quite some time.
The main reason re bed and ISA, is that if you go down this route, your broker ( as mine did) gets a quote for the sale and buy both on hold for a time long enough for the holder to decide, yes or no.
If you go via your own dealing, the spread gap %, due to a longer delay can cost you more money.
The last bed/ISA I did through my broker took less that 20 seconds, from sell to buy back.
not sure
Should have edited to not sure bit, as that was a from a previous comment.