Broker for lifestrategy funds

jamels2

I'm starting from zero and want to invest each week/ month into vanguards lifestrategy. I would start at about 100 per month and maybe increase it if possible.
Is there a platform/broker ideal for this?
I'm confused with all the differing fees , and I notice some even have exit fees.
Thanks for any tips

Zero_Sum

https://www.vanguardinvestor.co.uk

Alistair31

Hard to beat Vanguards own platform when you are making regular monthly investments.

Edit; as linked in post above

jamels2

Thanks for that, no need to consider any others then?

Alistair31

jamels2 wrote: »

Thanks for that, no need to consider any others then?

No. Well, not until you have built up to £20k or so. Then you might wish to transfer that to a fixed fee platform whilst continuing with regular payments on Vanguard platform.

Alexland

Vanguard's own platform would be the cheapest choice for a general investment account or S&S ISA however they don't offer Lifetime ISAs or Pensions (launching in a few weeks) so you might want to consider Hargreaves Lansdown and Cavendish respectively for those types of account.

Alex

jamels2

Thanks so for a zero start maybe adding 100 a month I am looking at the annual platform fee and the fund itself fee. That should be it as long as I use one with no buying fee each time I add 100. Do any charge for transferring eg when I transfer the 20k later on?

Alexland

Yes you would pay Vanguard Investor 0.15% platform charge (which is either deducted from the account cash balance, collected via direct debit or they sell down some fund units to pay depending on your preference) and the VLS fund management 0.22% charge (which is collected within the fund so requires no action on your part).

Vanguard do not charge an exit fee for when the account gets big enough to transfer out to a fixed price platform. In a perfect world they would be helpful enough to remind you that it's time to leave them. In this model the bigger customers subsidise the smaller customers which is only good while you are a smaller customer.

As an example of the break-even point for a £25,000 S&S ISA account then Vanguard's 0.15% of the account balance would be £37.50 pa and Halifax Share Dealing would charge a fixed £12.50 pa plus £2 per regular monthly trade so £36.50 pa. As the account gets bigger then HSD would stay the same price but the Vanguard Investor fee would keep increasing until it is capped at £375 pa. In all cases you would still incur the 0.22% VLS fund cost.

Alex

Albermarle

Also if you wanted to branch out at some point to buying funds other than Vanguards , then you would have to move platforms, as Vanguard platform only offers Vanguard funds.

jamels2

Great example Alex, and alber yes this is my only concern if I was to buy a different fund, does anyone know the next best one to vanguards .15% which allows other providers funds?

Alexland

Next best for a much bigger choice of funds on a small account with regular contributions would be Cavendish at 0.25% platform fee.