Advice on opening first S&S ISA between Vanguard and Trading212

isayhello

Am thinking to finally open an S&S ISA for the first time, have narrowed my platform choice to Vanguard and Trading212. Wondered if anyone has opinions on which one they would go for. Vanguard for me has the size and reputation and the funds I'd probably begin with but Trading212 is fee free and also has Vanguard funds but is a lot newer.
I'd probably be looking to go for some Vanguard funds initially. Though if I went with Trading212 I know I have the option to buy other funds and also shares.
Plan B was to open the ISA with Vanguard and open a general account with Trading212 to see how I find it.

masonic

Do you understand the differences between ETFs and open-ended investment funds? At Trading212 you will only have access to the Vanguard ETFs. I don't think it will really matter which you pick in the early years when costs will be low and the amount invested will fit comfortably within the FSCS compensation limit, you could always open up a second S&S ISA next tax year if you want to hold some investments with each provider, though it makes rebalancing holdings more difficult.

isayhello

masonic said:

Do you understand the differences between ETFs and open-ended investment funds? At Trading212 you will only have access to the Vanguard ETFs. I don't think it will really matter which you pick in the early years when costs will be low and the amount invested will fit comfortably within the FSCS compensation limit, you could always open up a second S&S ISA next tax year if you want to hold some investments with each provider, though it makes rebalancing holdings more difficult.

Hi, yes I understand the difference, just wondered if any people had used both or either or might have more knowledge around the pro's cons. I'm just leaning towards Trading212 for the flexibility in being able to hold shares as well within the ISA but I'm not sure.

masonic

isayhello said:

masonic said:

Do you understand the differences between ETFs and open-ended investment funds? At Trading212 you will only have access to the Vanguard ETFs. I don't think it will really matter which you pick in the early years when costs will be low and the amount invested will fit comfortably within the FSCS compensation limit, you could always open up a second S&S ISA next tax year if you want to hold some investments with each provider, though it makes rebalancing holdings more difficult.

Hi, yes I understand the difference, just wondered if any people had used both or either or might have more knowledge around the pro's cons. I'm just leaning towards Trading212 for the flexibility in being able to hold shares as well within the ISA but I'm not sure.

I have used Trading212, although I closed my account after a couple of months. I've never used Vanguard as I have never wanted to invest exclusively in Vanguard funds.

eskbanker

isayhello said:

Am thinking to finally open an S&S ISA for the first time, have narrowed my platform choice to Vanguard and Trading212.

[...]

I'd probably be looking to go for some Vanguard funds initially. Though if I went with Trading212 I know I have the option to buy other funds and also shares.

What are your evaluation criteria for platforms?  As ever, deciding what you want to invest in is a more important matter than the platform selection, and if your desired investments can only be held on one of your two identified platform options that would suggest a flawed evaluation process, in that the vast majority of platforms will offer individual shares and Vanguard ETFs if that's what you're anticipating investing in....

isayhello

masonic said:

isayhello said:

masonic said:

Do you understand the differences between ETFs and open-ended investment funds? At Trading212 you will only have access to the Vanguard ETFs. I don't think it will really matter which you pick in the early years when costs will be low and the amount invested will fit comfortably within the FSCS compensation limit, you could always open up a second S&S ISA next tax year if you want to hold some investments with each provider, though it makes rebalancing holdings more difficult.

Hi, yes I understand the difference, just wondered if any people had used both or either or might have more knowledge around the pro's cons. I'm just leaning towards Trading212 for the flexibility in being able to hold shares as well within the ISA but I'm not sure.

I have used Trading212, although I closed my account after a couple of months. I've never used Vanguard as I have never wanted to invest exclusively in Vanguard funds.

What do you prefer to use now @masonic or do you have any recommendations? Thanks.

isayhello

eskbanker said:

isayhello said:

Am thinking to finally open an S&S ISA for the first time, have narrowed my platform choice to Vanguard and Trading212.

[...]

I'd probably be looking to go for some Vanguard funds initially. Though if I went with Trading212 I know I have the option to buy other funds and also shares.

What are your evaluation criteria for platforms?  As ever, deciding what you want to invest in is a more important matter than the platform selection, and if your desired investments can only be held on one of your two identified platform options that would suggest a flawed evaluation process, in that the vast majority of platforms will offer individual shares and Vanguard ETFs if that's what you're anticipating investing in....

Hi thanks for your reply @eskbanker these are the funds that I thought I would go with as a newbie investor, they seem to be recommended for mostly hands off keeping and have done well. The platforms are cheap or free with Trading212 so that helped me narrow it down.
I'd probably be maxing out my ISA this year and maybe transfer from previous year as well.

Thrugelmir

Easy to find ETF's with good historic performance. More challenging as an investor is to decide where to invest for the future. Making informed and educated decisions in the process. Rather than getting caught up in repeatedly sung mantra's. 

Albermarle

Vanguard are a VERY large and respected operator , offering low cost access to mainstream funds .
Trading 212 offer  a free service for ISA's in the hope that you will be sucked in  to start trading in CFD's , which is gambling with a high loss rate .
I know which I would feel more comfortable with for the sake of paying 0.15% pa .

Thrugelmir

Trading212 isn't free.  Makes it's money on every trade undertaken.  

masonic

isayhello said:

masonic said:

isayhello said:

masonic said:

Do you understand the differences between ETFs and open-ended investment funds? At Trading212 you will only have access to the Vanguard ETFs. I don't think it will really matter which you pick in the early years when costs will be low and the amount invested will fit comfortably within the FSCS compensation limit, you could always open up a second S&S ISA next tax year if you want to hold some investments with each provider, though it makes rebalancing holdings more difficult.

Hi, yes I understand the difference, just wondered if any people had used both or either or might have more knowledge around the pro's cons. I'm just leaning towards Trading212 for the flexibility in being able to hold shares as well within the ISA but I'm not sure.

I have used Trading212, although I closed my account after a couple of months. I've never used Vanguard as I have never wanted to invest exclusively in Vanguard funds.

What do you prefer to use now @masonic or do you have any recommendations? Thanks.

The platforms I use now would not be suitable for small amounts. Your best option would be to use a site such as http://www.comparefundplatforms.com/ to identify the cheapest mainstream providers for your situation and habits and then compare those with some of the more niche or ultra-cheap providers if they provide the funds and services you want.