Vanguard direct to customer offering confirmed

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Comments

  • cloud_dog
    cloud_dog Posts: 6,043 Forumite
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    Audaxer wrote: »
    Still nowhere near as low as Halifax Share Dealing fixed fee platform charge of £12.50 per annum.
    We don't pay a ISA platform charge (TD Direct and X-O) but, we do not invest / hold OIECs and do have to pay for trades.

    I make use of the regular investment feature (TD £1.50) for 'administrative' trades, i.e. re-balancing etc but, do incur normal charges on my active / trading investments.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • edinburgher
    edinburgher Posts: 13,458 Forumite
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    mgarl10024 wrote: »
    I'm not sure this is such a great deal - unless I am missing something.

    If Vanguard are charging 0.15%, this doesn't work well for larger investors. For example, if you had over £10k, you would be better to own the Vanguard investments through say Halifax at £12.50/yr? Even cheaper through iWeb once you've paid the account opening fee?

    What am I missing?

    They offer JISAs - iWeb/Halifax/BOS either don't or aren't currently offering new accounts
  • ian-d
    ian-d Posts: 371 Forumite
    Think I'll stick with HL for now; I'm struggling enough to make decisions over products and methods of investing that throwing in another provider just makes my head spin.
  • coyrls
    coyrls Posts: 2,431 Forumite
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    It’s a good offering but I don’t think it’s going to lead to a price war. As had been mentioned, price conscious investors with significant ISA investments will already be on a fixed price platform such as Halifax Share Dealing; somebody with a £250K ISA would have to make 30 or more full priced trades a year before the Vanguard ISA offering was cheaper. Investors who are already with Hargreaves Lansdown have already made a conscious or unconscious decision to pay above the market rate for the perceived advantages of HL and a new offering with only Vanguard funds on offer is unlikely to make them move.[FONT=&quot]Undoubtedly[/FONT] Vanguard will pick up a sector of the market that are bought in to the Vanguard philosophy and that have existing smaller ISA investments or who are new ISA investors but I don’t think this sector is big enough to disrupt the existing market.
  • edinburgher
    edinburgher Posts: 13,458 Forumite
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    coyrls wrote: »
    Vanguard will pick up a sector of the market that are bought in to the Vanguard philosophy and that have existing smaller ISA investments or who are new ISA investors but I don’t think this sector is big enough to disrupt the existing market.

    Vanguard seem to be exceptionally good at growing their business. I can see them picking up a lot of praise from comparison sites/MSE-type outlets as a great choice for new investors.

    At that point, I suspect that they will pick up quite a bit of business from new accounts and that the laziness of the average Brit (I'm thinking utility switches here) will lead to considerable AUM as people stick with a 'good enough' provider.

    I can definitely see that changing the existing market for the better.
  • cloud_dog
    cloud_dog Posts: 6,043 Forumite
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    edinburgher wrote: »
    I can definitely see that changing the existing market for the better.
    I agree, they can only have a positive impact on our local market. Would just like them to expand in to SIPPs.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • koru
    koru Posts: 1,501 Forumite
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    I guess they had to decide whether to target people on fixed fee platforms or percentage fee platforms. They decided on the latter, as it is most of the market, and easier to beat.
    koru
  • hutman
    hutman Posts: 104 Forumite
    can we transfer out of hl to vanguard? makes sense for me since all my s&s isa funds are vanguard on hl.
  • edinburgher
    edinburgher Posts: 13,458 Forumite
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    Yes, but it will cost you £25+VAT as a cash transfer, or £25+VAT per holding as a stock transfer. There is also a £25+ VAT account closure fee. I believe that I still have an old acc with HL somewhere as I was too cheap to pay the closure fee ;)
  • edinburgher
    edinburgher Posts: 13,458 Forumite
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    cloud_dog wrote: »
    I agree, they can only have a positive impact on our local market. Would just like them to expand in to SIPPs.

    The Citywire article quotes Vanguard as wanting to provide a SIPP soon
This discussion has been closed.
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