Low-cost platform for investing in funds

N8tey

Hello from a MSE forum newbie!

Hoping to benefit from the impressive collective wisdom here... basically I am looking for the cheapest possible platform to start investing in index funds (e.g. Vanguard, etc). Small monthly amounts, so a drip feed approach.

I currently have accounts with both HL and Nutmeg but am looking for something more basic and cheaper in the long run. Nutmeg currently charges .75% annually, whereas HL is more like .95% plus trading charges, I think. Is it possible to beat those rates here in the UK? I know the US has platforms like Betterment which charge as little as .25%, but I have not heard of anything so cheap over here.

Any advice greatly appreciated, thanks.

System

Why not Vanguard?:
https://www.vanguardinvestor.co.uk/

eskbanker

Plenty of cheaper options than HL and Nutmeg shown at:
http://monevator.com/two-ways-to-help-you-find-the-best-online-broker-or-investment-platform/
http://www.comparefundplatforms.com/
https://forums.moneysavingexpert.com/discussion/5583030/coolly-comparing-investment-platform-charges-snowmans-spreadsheet

GooeyBlob

I use Barclays Smart Investor, fees are 0.2% for funds, 0.1% for shares and bonds and £6 to buy. Can't remember what the fee is for selling, think it's also £6

A_T

As it's index tracker funds and ETFs you're looking for it's hard to beat Vanguard Investor for 5-figure amounts. £15 per annum for holding £10,000 with all the buying and selling you want included.

dunstonh

Nutmeg currently charges .75% annually, whereas HL is more like .95% plus trading charges,

That is not comparing like for like.

Plus, Nutmeg is not 0.75%. It is 0.75% plus 0.21% investment cost plus 0.09% transaction costs. They charge 1.05% Which is very high for flow chart option. Although for very small investors, it would be attractive. For larger investors, that is not far off a full advised IFA portfolio including managed funds and more expensive than an IFA option using passives only. DIY is meant to be cheaper. Not more expensive.

HL is 0.45% plus fund charge of 0.22% (for VLS) plus 0.11% for transaction costs.

Is it possible to beat those rates here in the UK?

Yes. Seeing as HL is one of the most expesnive platforms in the UK and Nutmeg is one of the most expensive robo providers, it is pretty easy to get cheaper.

dont_use_vistaprint

I really like Vanguard, the fees seem low to me for the amounts bought and sold, I'm sure there are cheaper, but as a newbie they have good telephone support. My only complaint is they're not chosen intermediaries for some companies so I need to use HL too.

overlyconcerend

Sorry to hijack but cab someone explain the difference between something like the life strategy fund and the L&G International Index Trust?

I'm looking for something without the UK weighting the vanguard funds seem to have

dunstonh

Sorry to hijack but cab someone explain the difference between something like the life strategy fund and the L&G International Index Trust?

VLS is a fettered fund of funds using underlying passive funds.
L&G International Index is passive fund.

In other words, VLS is a collection of different own-brand funds whereas L&G is a fund in itself.

L&GMI is a closer comparison to VLS.

ColdIron

At a high level Lifestrategy is a fund composed of separate index trackers and may include bonds, the allocations are decided by Vanguard. The L&G fund tracks a single index, the FTSE World (ex UK) Index, that specifically excludes the UK and is 100% equities

Terry_Towelling

GooeyBlob wrote: »

I use Barclays Smart Investor, fees are 0.2% for funds, 0.1% for shares and bonds and £6 to buy. Can't remember what the fee is for selling, think it's also £6

Just one additional factor with Barclays is the minimum monthly charge of £4 (£48 pa)