Welcome to the new way of active ISA management

When it comes to investing in an ISA, your goal is to increase your investment and get good returns.

Returns you can use for retirement, college, a new house or even to travel the world.

At MarketsFlow and using our proprietary investment platform we actively manage the stocks and shares your ISA is invested in.

We ensure your ISA investment is balanced and, as with all our investment portfolios, that it endures the market conditions to give you the best possible returns.

What we do not do is just put your money in a third party, uncontrollable ETF, where gains and losses cannot be culminated.

Our active ISA management will ensure your investment is monitored and the stocks and shares adjusted daily to yield the best possible results.

This is why MarketsFlow ISA is so different!

Disclosure

Applicants must be over 18 and a UK resident. Proof of identity required. It’s important to keep in mind that the value of investments can fall as well as rise, so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future.
FAQ
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APPLY FOR YOUR ISA

Our Fee Structure:

Our fees are simple, extremely competitive and transparent. Every client that signs up to the MarketsFLow Managed Portfolio service receives a copy of our Investment Management Agreement with all the information and disclosures.

Stocks & Shares ISA Accounts:
Fee Rate: The following table lays out the Fee Rate.
Investment Account Size Fee Rate (per annum )
From £10 and above 1.00%
Stocks & Shares ISA Accounts:
Fee Rate: The following table lays out the Fee Rate.
Investment Account Size Fee Rate (per annum )
From £10 and above 10.00%
  • Stock & Shares ISA - £20,000 Tax free allowance in 2018/19
  • Junior Stocks & Shares ISA -£4260 Tax free allowance in 2018/19
  • Avail 2018/19 Allowance up until April 05, 2019

Here is how:

For MarketsFlow to start managing your ISA we will need to open an account for you with our broker and custodian Interactive Brokers. We will complete all the information for you and send you the completed application in a PDF document to be checked, signed and returned to us via email.

Once your account is set-up, you can transfer your chosen amount and we can start managing your ISA. When you finish registering with MarketsfLow you will have completed the majority of the required information, however there are some details which may still be required in order to proceed.

To ensure we have all the information required for your application, we will send you an email with further instructions after you complete the sign up.


  • Facility to withdraw and replace cash within tax year without affecting allowance.
  • Transferability between Cash ISA / Investment ISA / Innovative Finance ISA in any direction.
  • Complementary role with pensions saving: ISA investment goes in net, but is untaxed when taken out; pensions savings go in gross (subject to some restrictions) but are taxable when taken out.
  • Pensions savings are not accessible until the latter stages of life; ISA is accessible at any time
  • Over the long run it makes sense to use tax shelters for the investments with the highest expected return. Power of compounding is boosted considerably by the power of untaxed returns. See an example of ISA investment results below.

Simplifying assumptions:

  • 10 year period
  • ISA allowance remains £20,000
  • Individual saves £40,000 per year – cannot all be accommodated in an ISA
  • Individual directs half of savings into cash and half into high-return funds
  • Cash returns 2%; high performing funds return 12%, of which 3/5 comes as capital gain and 2/5 as income
  • Individual’s tax rates are 40% on income and 20% on capital gains

How should the ISA allowance be used?

The charts below show the difference it makes: in example 1, the investor shelters the cash product in the ISA wrapper but not the high return funds; in example 2 the investor shelters the high return funds in the ISA.
Note, the same amount of investment risk is being taken in both cases.




The results
  • Total return: example 1: £147,868; example 2: £206,778
  • A difference of almost £60,000, equivalent to 1.5 years’ contributions
The total ISA allowance for this 2018/2019 tax year is £20,000. Your ISA allowance can be split between stocks and shares and cash ISAs.

Stocks and shares ISAs:

  • No personal liability to capital gains tax on any growth.
  • No tax to pay on any dividend distributions. No further tax on interest distributions.
  • We reclaim the 20% tax that was deducted on interest distributions for you. All of the above information is based upon our current understanding of HMRC tax rules and is subject to change. For further information, please refer to gov.uk.

All of the above information is based upon our current understanding of HMRC tax rules and is subject to change. For further information, please refer to gov.uk.

Yes, you can withdraw your ISA amount anytime giving us 1 day’s notice.

If you are new to investing, an investment (or stocks and shares) Individual Savings Account (ISA) may be a great place to get started. An Investment ISA, or stocks and shares ISA, is a tax-efficient wrapper in which you can buy, hold and sell investments such as funds, shares and bonds.

If you’re prepared to accept the risk that you might lose money, our Investment ISA gives you access to a wide range of investment opportunities to help you reach your financial goals.

Pay in up to £20,000 in the current tax year you can use your full 2018/19 ISA allowance of £20,000 with our Investment ISA.

Alternatively, you can use your ISA allowance across cash, investment, innovative finance or lifetime ISAs, splitting it however you like. You can only pay into one of each type of ISA in each tax year. With a lifetime ISA, you can pay in a maximum of £4,000 in each tax year.

Please contact us if you are interested in transferring your ISA. At the moment we only accept cash transfers for our ISA product.

The favourable tax treatment for ISAs depends on your individual circumstances and may vary in the future.

Please remember that the value of your investments can go down as well as up so you may get back less than you originally invested.

Investments should be considered as a long term option of 6 years or more.

You need to be aged 18 or over and be resident in the UK to hold a stocks and shares ISA.

Compared to keeping money in the bank, investing can give you potentially greater rewards, however it also comes with additional risk and there's a chance your investments will lose money.

Investing might be right for you if:

  • You've paid off your debts
  • You have access to savings in a bank or building society to cover unexpected emergencies
  • You're willing to invest the money for the long term of 6 years or more.
  • You're comfortable with the risks that come with investing.

Yes, before we start constructing your portfolio you will need to select a base portfolio construct, either the Growth Portfolio or the High Growth Portfolio. The MarketsFLow High Growth Portfolio has slightly higher volatility than the Growth Portfolio, therefore the performance can be higher - please refer to 2018 performance for comparison (link to performance page).

This should take 2-3 days after your funds are transferred and available in your IB account.

This will be on the MarketsFlow platform and should also take 2-3 working days.

Our Portfolio Managers will create your MarketsFlow Platform ISA account to give you access to your portfolio construct. You will then be able to follow its movement and performance.

They will need to configure your ISA account to the portfolio of your choice (Growth Portfolio or High Growth Portfolio) and start constructing your stocks and shares portfolio according to the MarketsFlow buy and sell signals - which are in turn dependent on the market conditions.

We will start constructing your ISA portfolio soon after your funds are available in Interactive Brokers and send you all the details so you can follow your ISA portfolio in your MarketsFlow account when it is fully set-up.

MarketsFlow ISA, High Growth and Growth Portfolios are managed in the same way on the MarketsFlow platform with similar constructs except that we do not sell puts or covered calls on ISA.

The MarketsFLow High Growth Portfolio has slightly higher volatility than the Growth Portfolio, therefore the performance can be higher - please refer to 2018 performance for comparison

The allocation of stocks for ISA portfolios is still resulting from the underlying buy signals, including the position sizes which are determined by the signal strength.

Therefore, the resulting potential extra performance is not available on ISA portfolios.

The level of activity in a portfolio is dependent on the invested amount (larger amounts will usually have more activity due to the price of individual stocks, shares etc), the platform signals and the market conditions.

As the MarketsFlow platform assesses the market environment on a number of levels, it will suggest the most optimal trades and trade volume for the size of your portfolio investment to yield the optimum returns.

As the market conditions vary, you will notice increase or decrease in activity dependent on the platform signals. During some periods your portfolio might not be invested at all or not fully invested due to market conditions and MarketsFlow risk mitigation

The allocations for the Stock and Shares ISA portfolio are based on the proprietary MarketsFlow platform, and the portfolio performance shown on the website is a reflection of the signals.

It is normal at times to be allocated only a proportion of your capital, we will be varying the invested amounts depending on the amount of funds in your account and on the platform.

By having lower or no allocations at times, your portfolios will not be compromising on performance.

You can find updates on the weekly performance here which will allow you to compare .

Also, the activity and trades are adjusted to the investment size of each account.

You will be seeing your fees including charge rate at Funds tab of “Trade transactions” in your Interactive Brokers account.

Yes, the MarketsFlow ISA Management Agreement is in place between the three parties, our clients receive the ISA Management Agreement as part of the MarketsFlow onboarding process.

This is to essentially avoid any potential conflict of interest and Interactive Brokers need this information as part of their compliance. You can find more information about this here.

The way we would do this is take the total funds that you will deposit into your IB account (eg 50K) and set up 2 accounts for you on the MarketsFlow platform. One for the ISA and one for the Managed Portfolio.

Then our portfolio managers will allocate the desired proportion as you instruct us (eg 40K Managed and 10K ISA) to the relevant trading portfolios.

You would only need to transfer the complete sum of funds for both Managed Portfolio and ISA to your Interactive Brokers account and instruct us on how you would like to split the amount.

You can withdraw your funds with 1 day’s notice (please refer to the MarketsFlow Investment Management Agreement p 7).

In order to terminate your agreement, we would require a 30 day notice for your account (please refer to the MarketsFlow Investment Management Agreement p 10).

We will endeavor to implement changes in Risk Level within 7 business days but we cannot guarantee to do so

The minimum amount is 5K for the ISA account and you can keep adding to it if you wish whenever you have liquidity at a minimum of £100 per month.

The minimum to invest in an MF Junior ISA account is 1000 and you can keep adding to it at a minimum of £50 a month.

It is correct that IB do not offer ISA accounts, however we offer ISA accounts using the Interactive Brokers platform. As an ISA manager we are responsible for all HMRC reporting regarding ISA accounts and your tax-free allowance. Your MarketsFlow ISA account will have a unique HMRC reference which we will provide to you.

Will my stock and shares ISA be a discretionaly managed account (managed by MarketsFlow)?

Yes, your ISA will be a discretionary managed account.

Yes it is possible. We will simply need the old account reference for our HMRC reporting purposes. It is also possible to convert your ISA to a MarketsFlow Managed Portfolio service.

You should not lose the tax status, we will report to HMRC as your transfer ISA account with existing tax-allowance facilities.

We will simply need your previous ISA account reference for HMRC reporting purposes.

At the moment we only accept Cash ISA transfers for the use of stock & shares ISA. If your stock and shares ISA is with another Bank or Building society you can request a direct cash transfer to your Interactive Brokers account by providing your Bank/Building society with the Interactive Brokers account details.

These can be found in your account under “Fund Transfers” when initiating a deposit transfer. Please contact us by email or phone if you have any questions or need any help.

The allocations for the ISA portfolio are based on the proprietary MarketsFlow platform, and the portfolio performance shown on the webiste is a reflection of the signals.

It is normal at times to be allocated only a proportion of your capital, we will be varying the invested amounts depending on the amount of funds in your account and on the platform.

By having lower or no allocations at times, your portfolios will not be compromising on performance.

Yes you can, all you need to do is provide your bank with the transfer details for your IB account and ask them to liquidate the Stock and Shares Isa you currently hold with them and transfer it to your IB account.

We have found that Banks have different procedures for initiating the transfer such as a request for a signed letter from yourself sent by post. We would recommend contacting your Bank or Building society before you request the transfer to clarify the process and avoid delays.

If you need our help please contact us or call us on 0203 006 2390 Please make sure to include your Interactive Brokers or Schwab account number when initiating a fund transfer to your broker account.

There are 2 ways to make a deposit to fund your account:

  • 1. You can get your password by calling Interactive Brokers Professional Services on 0207 710 5698. Alternatively you will receive a letter from Interactive brokers with your password and other details which you can use to log-in to your IB account and complete the funding as per the instructions we send you in our “Account Funding” email.

  • 2. We can initiate the fund transfer from the Master access we have to your account and send you the transfer/ IB account details in a PDF generated by the IB system which you can use to fund your account. If you would like to choose this 2nd option please provide us with the amount you would like to deposit, your Bank name and account number so we can start the process for this and send you the transfer PDF with all the instructions.

Options are only being used in the standard Marketsflow High Growth Managed Portfolio.

However when we construct the ISA portfolio relevant to the High Growth Portfolio we do not use any options, only the stocks and shares.

  • 1. Is it long only, or long/short?

    It is long only.

  • 2. What is the expected turnover (single sided) per month?

    It depends on the signals generated on the platform but on average we may be transacting 20-25 times, this can obviously vary depending on the market conditions and the amount available for your portfolio.

  • 3. Are the presented performance figures net of transaction (and market impact) costs?

    The figures presented are net of transaction cost.

  • 4. How many stocks are in the portfolio typically.

    The portfolio construct has about 20-23 stocks which dynamically change depending on the market conditions.

  • 5. What is the weighting scheme of the stocks (market cap weighted / equal weighted or other weighting scheme)?

    The allocation of the portfolio is determined dynamically on a daily basis, we have signals to ensure that depending on the (signal)strength position sizes and weighting is configured. As this is a dynamic process and is determined depending on the current holdings, we do not apply a static process driven weighting structure, the platform generates optimum weighting based on the existing holdings and signals. For example, it may well be that at any given time we only have 60% of the portfolio invested with each position size no more than 10% of the portfolio.
  • 6.On what basis are the stocks selected, on what characteristics?

    The stocks are selected by the platform dynamically as long as they exhibit certain beta characteristics over a recent period, along with alpha potential, they must exhibit group leadership, upside reversion, and generally be in a momentum industry/sector. The system looks at other proprietary characteristics like momentum behavior over a certain period.