Vanguard or Interactive Investor SIPP to hold Vanguard fund?

Mutton_Geoff

Comparing the two platforms for a forthcoming high value transfer in SIPP investment, Vanguard have a cap of £375 and II have a flat fee of £10 a month (on top of the £9.99 I pay for my S&S ISA with them).

Since I can hold my desired Vanguard fund on the II platform with the same OCF of 0.22% is there any advantage in opening a Vanguard account separately?

It was only using Snowman's spreadsheet did I realise II were actually a cheaper SIPP platform and of course gives me access to an almost "whole of market" range of investments compared to the Vanguard platform which can currently only be used for their own products (and doesn't have drawdown until 2021).

Joey_Soap

Correct, a SIPP at II will cost you £120 per year irrespective of how much you hold there. So, if the Vanguard fee would be £121 for the same holding, there's an opportunity to cap your costs at £120 at II versus £375 at VG.

Mutton_Geoff

Thanks Joey, there is also an advantage that the majority of my current IFA recommended holdings (20 of them) can be transferred in speci to II but not Vanguard. I could then keep the ones I like and use the others to purchase the funds I want and simplify my portfolio with the majority into a "fund of funds" like the Vanguard or HSBC flavoured ones.

bowlhead99

They have a separate fee for the sipp service on top of the basic account fee that includes bundled trades (that you're already familiar with if you have an ISA), and there will be transaction-based fees if you use up your trading credit.

But yes if the SIPP is large it will be better than paying vanguard's percentage-based fee, and always preferable to have a platform with a wider choice of investments because the best fund provider today may not be best for you at some point down the line.

By the time you reach drawdown (and vanguard have launched their drawdown product) you may find the platform market has moved on again anyway, so you could always reassess later .

Albermarle

II will charge another £120 again for drawdown , so £360 pa altogether + extra charges for one off withdrawals etc 
But most of the cheaper platforms do the same . At this moment only HL & Fidelity offer a one price fits all for ISA's; SIPP;s and SIPP's in drawdown. So they are uncompetitive for large ISA's, but more in the frame for SIPPs in drawdown, especially if some shares/IT's/ETF's are held instead of all OEIC funds. 

dharm999

I have just moved my pension to II, from Standard Life, it should save me c0.8% a year in costs.  One of the attractions for me of II, was that they do free regular investing, as long as its at least £25 you are investing.  It is ideal for me, as there is a monthly contribution to it, in to 8 funds/etfs, so that saves me a significant amount of trading costs.

shinytop

I have a substantial sum in Vanguard and HSBC in II and consider it good value.  I haven't seen the Vanguard interface but the II web based interface, app and customer service are all good.

83705628

shinytop said:

I have a substantial sum in Vanguard and HSBC in II and consider it good value.  I haven't seen the Vanguard interface but the II web based interface, app and customer service are all good.

I can only speak to Vanguard - same.

squirrelpie

Albermarle said:

At this moment only HL & Fidelity offer a one price fits all for ISA's; SIPP;s and SIPP's in drawdown. So they are uncompetitive for large ISA's, but more in the frame for SIPPs in drawdown, especially if some shares/IT's/ETF's are held instead of all OEIC funds. 

HL has limits on charges for shares/ETFs as you imply, but the limits are different for ISAs and SIPPs.

Albermarle

squirrelpie said:

Albermarle said:

At this moment only HL & Fidelity offer a one price fits all for ISA's; SIPP;s and SIPP's in drawdown. So they are uncompetitive for large ISA's, but more in the frame for SIPPs in drawdown, especially if some shares/IT's/ETF's are held instead of all OEIC funds. 

HL has limits on charges for shares/ETFs as you imply, but the limits are different for ISAs and SIPPs.

For Fidelity it is the same limit ( and lower than HL) 

coyrls

Albermarle said:

II will charge another £120 again for drawdown , so £360 pa altogether + extra charges for one off withdrawals etc 
But most of the cheaper platforms do the same . At this moment only HL & Fidelity offer a one price fits all for ISA's; SIPP;s and SIPP's in drawdown. So they are uncompetitive for large ISA's, but more in the frame for SIPPs in drawdown, especially if some shares/IT's/ETF's are held instead of all OEIC funds. 

There are no extra charges for one off withdrawals that I am aware of.  They currently have an offer of no SIPP fee until April 2021 if you open a SIPP by the end of this month.