Transfer Vanguard funds to a fixed fee platform

Snapdragon

Rollinghome said:

TheAble said:

Rollinghome said:

I was hoping you would clarify how that plan would be operated in order to get that £100 pa saving you mentioned?

Presumably trading frequently on Vanguard at the zero cost next trading point?

So 20+ trades and 20+ transfers?  Would that be better than transferring the lot to Iweb to avoid paying Vanguard's 0.15% platform fee plus £7.50 live trade fee for ETFs  and paying their £5 fee for future trades?

No not 20 trades and 20 transfers, just one transfer a year.
The process I used and was advocating was moving the historic ISAs to IWeb, which gives the main bulk of the savings, as no further %based fee on holding the historic ISAs with IWeb. Then to build the next year's ISA with Vanguard for minimal cost, using excess monthly income over the year, whether via monthly standing order, hence no effort involved once standing order set up, or manually via Halifax debit card(s) to get paid to fill my ISA monthly using Vanguard's once a day purchases at the zero cost next trading point. Therefore annual cost on Vanguard is the 0.15% of the growing pot which Monevator article suggests is £16pa. Transfer ISA once filled to IWeb.

It works for someone like me, who wants something relatively simple, but want to invest (rather than save) gradually from income, build it up then transfer it once a year. Obviously if you want a wider range of investment options and aren't trading frequently then I wouldn't argue with your suggestion. There is nothing wrong with using IWeb for holding ISAs, and also building the next one particularly if you are doing that with a lump sums, so infrequent trades paying the £5 each time.

dharm999

Don’t Vanguard cap annual fees at £375, so above £250k, the fee as a % of the value falls.  We have our ISAs and my wife’s SIPP with Vanguard and our general investment accounts with IWeb.  It would save a bit of money moving to IWeb, but then I’m concentrating more with them, so the extra fees with Vanguard, I view as a kind of insurance policy, it’s an extra cost but it spreads my risk

ColdIron

The likelihood of needing to call on the FSCS with either Vanguard (2nd biggest global Asset Manager) or IWeb (part of Lloyds Banking Group) is remote. That's an expensive 'insurance policy'. Still if it helps you to sleep at night ...

Rollinghome

Snapdragon said:

Rollinghome said:

TheAble said:

Rollinghome said:

I was hoping you would clarify how that plan would be operated in order to get that £100 pa saving you mentioned?

Presumably trading frequently on Vanguard at the zero cost next trading point?

So 20+ trades and 20+ transfers?  Would that be better than transferring the lot to Iweb to avoid paying Vanguard's 0.15% platform fee plus £7.50 live trade fee for ETFs  and paying their £5 fee for future trades?

No not 20 trades and 20 transfers, just one transfer a year.
The process I used and was advocating was moving the historic ISAs to IWeb, which gives the main bulk of the savings, as no further %based fee on holding the historic ISAs with IWeb. Then to build the next year's ISA with Vanguard for minimal cost, using excess monthly income over the year, whether via monthly standing order, hence no effort involved once standing order set up, or manually via Halifax debit card(s) to get paid to fill my ISA monthly using Vanguard's once a day purchases at the zero cost next trading point. Therefore annual cost on Vanguard is the 0.15% of the growing pot which Monevator article suggests is £16pa. Transfer ISA once filled to IWeb.

It works for someone like me, who wants something relatively simple, but want to invest (rather than save) gradually from income, build it up then transfer it once a year. Obviously if you want a wider range of investment options and aren't trading frequently then I wouldn't argue with your suggestion. There is nothing wrong with using IWeb for holding ISAs, and also building the next one particularly if you are doing that with a lump sums, so infrequent trades paying the £5 each time.

That's why I was interested in the maths for the saving of "£100+" claimed earlier, over and above the saving from just a one-off transfer from Vanguard to Iweb, or clarification of just what was meant.

You pay by monthly DD, so presumably 12 trades or so a year.  That would cost £60 in fees at Iweb.  Minus the £16 pa you think is paid to Vanguard, looks like a £44 or so saving to me.  That saving might be further reduced when there are similar funds with a lower OCF than from Vanguard.

Whether that saving is worth the hassle of managing repeated transfers, and the investment limitations of an ultra bare-bones service, is clearly a matter of choice. If it suits you, then that's all that matters.  The Iweb platform is also seen as too bare-bones by many, but it suits me well alongside another platform I use.

But it does need to be clear exactly how much could be saved in return. In your case, it appears to be a long way off that £100+ figure referred to earlier for what the OP proposed. That's not to say it couldn't be done, but not in a way that would make the greatest sense for most people.  If Coldiron ,or someone else, could clarify what they had in mind, that would be interesting.

Snapdragon

Rollinghome said:

Snapdragon said:

Rollinghome said:

TheAble said:

Rollinghome said:

I was hoping you would clarify how that plan would be operated in order to get that £100 pa saving you mentioned?

Presumably trading frequently on Vanguard at the zero cost next trading point?

So 20+ trades and 20+ transfers?  Would that be better than transferring the lot to Iweb to avoid paying Vanguard's 0.15% platform fee plus £7.50 live trade fee for ETFs  and paying their £5 fee for future trades?

No not 20 trades and 20 transfers, just one transfer a year.
The process I used and was advocating was moving the historic ISAs to IWeb, which gives the main bulk of the savings, as no further %based fee on holding the historic ISAs with IWeb. Then to build the next year's ISA with Vanguard for minimal cost, using excess monthly income over the year, whether via monthly standing order, hence no effort involved once standing order set up, or manually via Halifax debit card(s) to get paid to fill my ISA monthly using Vanguard's once a day purchases at the zero cost next trading point. Therefore annual cost on Vanguard is the 0.15% of the growing pot which Monevator article suggests is £16pa. Transfer ISA once filled to IWeb.

It works for someone like me, who wants something relatively simple, but want to invest (rather than save) gradually from income, build it up then transfer it once a year. Obviously if you want a wider range of investment options and aren't trading frequently then I wouldn't argue with your suggestion. There is nothing wrong with using IWeb for holding ISAs, and also building the next one particularly if you are doing that with a lump sums, so infrequent trades paying the £5 each time.

That's why I was interested in the maths for the saving of "£100+" claimed earlier, or clarification of just what was meant.

You pay by monthly DD, so presumably 12 trades or so a year.  That would cost £60 in fees at Iweb.  Minus the £16 pa you think is paid to Vanguard, looks like a £44 or so saving to me.  That saving might be further reduced when there are similar funds with a lower OCF than from Vanguard.

Whether that saving is worth the hassle of managing transfers, and the investment limitations of an ultra bare-bones service, is clearly a matter of choice. If it suits you, then that's all that matters.  The Iweb platform is also seen as too bare-bones by many, but it suits me well alongside another platform I use.

But it does need to be clear exactly how much could be saved in return. In your case, it appears to be a long way off that £100+ figure referred to earlier for what the OP proposed. That's not to say it couldn't be done, but not in a way that would make the greatest sense for most people.  If Coldiron ,or someone else, could clarify what they had in mind, that would be interesting.

I believe you have misunderstood what I said. As previously stated, the bulk of the saving of £100+ per year, is because that is what it was costing to hold several years worth of ISAs with Vanguard. Once transferred to IWeb those ISAs no longer cost me anything to hold, whereas if I left them with Vanguard they would have continued to cost at least £100 every year I continued to hold them, and probably more as the value of the pot grew. The same would be true for the OP if he holds £100,000+ with Vanguard being charged a % based fee every year. Hence why I was very specific about the advantages of holding historic ISAs with IWeb.

For ongoing ISA investment within Vanguard, 3 * £500 buys per month, plus top ups to the max allowance of £20,000, so 37-40 free trades per year plus the %base fee of about £16 for the year. Followed by one transfer to IWeb.

jimjames

Rollinghome said:

Snapdragon said:

Rollinghome said:

TheAble said:

Rollinghome said:

I was hoping you would clarify how that plan would be operated in order to get that £100 pa saving you mentioned?

Presumably trading frequently on Vanguard at the zero cost next trading point?

So 20+ trades and 20+ transfers?  Would that be better than transferring the lot to Iweb to avoid paying Vanguard's 0.15% platform fee plus £7.50 live trade fee for ETFs  and paying their £5 fee for future trades?

No not 20 trades and 20 transfers, just one transfer a year.
The process I used and was advocating was moving the historic ISAs to IWeb, which gives the main bulk of the savings, as no further %based fee on holding the historic ISAs with IWeb. Then to build the next year's ISA with Vanguard for minimal cost, using excess monthly income over the year, whether via monthly standing order, hence no effort involved once standing order set up, or manually via Halifax debit card(s) to get paid to fill my ISA monthly using Vanguard's once a day purchases at the zero cost next trading point. Therefore annual cost on Vanguard is the 0.15% of the growing pot which Monevator article suggests is £16pa. Transfer ISA once filled to IWeb.

It works for someone like me, who wants something relatively simple, but want to invest (rather than save) gradually from income, build it up then transfer it once a year. Obviously if you want a wider range of investment options and aren't trading frequently then I wouldn't argue with your suggestion. There is nothing wrong with using IWeb for holding ISAs, and also building the next one particularly if you are doing that with a lump sums, so infrequent trades paying the £5 each time.

But it does need to be clear exactly how much could be saved in return. In your case, it appears to be a long way off that £100+ figure referred to earlier for what the OP proposed. That's not to say it couldn't be done, but not in a way that would make the greatest sense for most people.  If Coldiron ,or someone else, could clarify what they had in mind, that would be interesting.

OP seemed to be referring to an existing portfolio of c £120k to give the annual saving of £180

Rollinghome

jimjames said:

Rollinghome said:

Snapdragon said:

Rollinghome said:

TheAble said:

Rollinghome said:

I was hoping you would clarify how that plan would be operated in order to get that £100 pa saving you mentioned?

Presumably trading frequently on Vanguard at the zero cost next trading point?

So 20+ trades and 20+ transfers?  Would that be better than transferring the lot to Iweb to avoid paying Vanguard's 0.15% platform fee plus £7.50 live trade fee for ETFs  and paying their £5 fee for future trades?

No not 20 trades and 20 transfers, just one transfer a year.
The process I used and was advocating was moving the historic ISAs to IWeb, which gives the main bulk of the savings, as no further %based fee on holding the historic ISAs with IWeb. Then to build the next year's ISA with Vanguard for minimal cost, using excess monthly income over the year, whether via monthly standing order, hence no effort involved once standing order set up, or manually via Halifax debit card(s) to get paid to fill my ISA monthly using Vanguard's once a day purchases at the zero cost next trading point. Therefore annual cost on Vanguard is the 0.15% of the growing pot which Monevator article suggests is £16pa. Transfer ISA once filled to IWeb.

It works for someone like me, who wants something relatively simple, but want to invest (rather than save) gradually from income, build it up then transfer it once a year. Obviously if you want a wider range of investment options and aren't trading frequently then I wouldn't argue with your suggestion. There is nothing wrong with using IWeb for holding ISAs, and also building the next one particularly if you are doing that with a lump sums, so infrequent trades paying the £5 each time.

But it does need to be clear exactly how much could be saved in return. In your case, it appears to be a long way off that £100+ figure referred to earlier for what the OP proposed. That's not to say it couldn't be done, but not in a way that would make the greatest sense for most people.  If Coldiron ,or someone else, could clarify what they had in mind, that would be interesting.

OP seemed to be referring to an existing portfolio of c £120k to give the annual saving of £180

jimjames said:

Rollinghome said:

Snapdragon said:

Rollinghome said:

TheAble said:

Rollinghome said:

I was hoping you would clarify how that plan would be operated in order to get that £100 pa saving you mentioned?

Presumably trading frequently on Vanguard at the zero cost next trading point?

So 20+ trades and 20+ transfers?  Would that be better than transferring the lot to Iweb to avoid paying Vanguard's 0.15% platform fee plus £7.50 live trade fee for ETFs  and paying their £5 fee for future trades?

No not 20 trades and 20 transfers, just one transfer a year.
The process I used and was advocating was moving the historic ISAs to IWeb, which gives the main bulk of the savings, as no further %based fee on holding the historic ISAs with IWeb. Then to build the next year's ISA with Vanguard for minimal cost, using excess monthly income over the year, whether via monthly standing order, hence no effort involved once standing order set up, or manually via Halifax debit card(s) to get paid to fill my ISA monthly using Vanguard's once a day purchases at the zero cost next trading point. Therefore annual cost on Vanguard is the 0.15% of the growing pot which Monevator article suggests is £16pa. Transfer ISA once filled to IWeb.

It works for someone like me, who wants something relatively simple, but want to invest (rather than save) gradually from income, build it up then transfer it once a year. Obviously if you want a wider range of investment options and aren't trading frequently then I wouldn't argue with your suggestion. There is nothing wrong with using IWeb for holding ISAs, and also building the next one particularly if you are doing that with a lump sums, so infrequent trades paying the £5 each time.

But it does need to be clear exactly how much could be saved in return. In your case, it appears to be a long way off that £100+ figure referred to earlier for what the OP proposed. That's not to say it couldn't be done, but not in a way that would make the greatest sense for most people.  If Coldiron ,or someone else, could clarify what they had in mind, that would be interesting.

OP seemed to be referring to an existing portfolio of c £120k to give the annual saving of £180

Jim, the "£100" I was referring to was from the last post on page 2 which was both quoting and replying to the OP,  dllive. 

dllive said they had paid £182.52 last year to Vanguard, so a full transfer to Iweb would likely save him far more than £100, more like £180. 

They'd already explained their plan was to continue investing with Vanguard, but to then continuously transfer those investments to Iweb in order to avoid paying any fees to Iweb.  The additional saving for doing that would likely to be far less than £100 in most cases.

Neither figure looks right, which was why I was asking for clarification of what was meant.

I don't think anyone new to investing should be given the impression that they would make gains of £100 just from the wheeze of buying from buying on Vanguard then transferring to Iweb, They also need to be aware of all the downsides.

Rollinghome

Snapdragon said:

Rollinghome said:

Snapdragon said:

Rollinghome said:

TheAble said:

Rollinghome said:

I was hoping you would clarify how that plan would be operated in order to get that £100 pa saving you mentioned?

Presumably trading frequently on Vanguard at the zero cost next trading point?

So 20+ trades and 20+ transfers?  Would that be better than transferring the lot to Iweb to avoid paying Vanguard's 0.15% platform fee plus £7.50 live trade fee for ETFs  and paying their £5 fee for future trades?

No not 20 trades and 20 transfers, just one transfer a year.
The process I used and was advocating was moving the historic ISAs to IWeb, which gives the main bulk of the savings, as no further %based fee on holding the historic ISAs with IWeb. Then to build the next year's ISA with Vanguard for minimal cost, using excess monthly income over the year, whether via monthly standing order, hence no effort involved once standing order set up, or manually via Halifax debit card(s) to get paid to fill my ISA monthly using Vanguard's once a day purchases at the zero cost next trading point. Therefore annual cost on Vanguard is the 0.15% of the growing pot which Monevator article suggests is £16pa. Transfer ISA once filled to IWeb.

It works for someone like me, who wants something relatively simple, but want to invest (rather than save) gradually from income, build it up then transfer it once a year. Obviously if you want a wider range of investment options and aren't trading frequently then I wouldn't argue with your suggestion. There is nothing wrong with using IWeb for holding ISAs, and also building the next one particularly if you are doing that with a lump sums, so infrequent trades paying the £5 each time.

That's why I was interested in the maths for the saving of "£100+" claimed earlier, or clarification of just what was meant.

You pay by monthly DD, so presumably 12 trades or so a year.  That would cost £60 in fees at Iweb.  Minus the £16 pa you think is paid to Vanguard, looks like a £44 or so saving to me.  That saving might be further reduced when there are similar funds with a lower OCF than from Vanguard.

Whether that saving is worth the hassle of managing transfers, and the investment limitations of an ultra bare-bones service, is clearly a matter of choice. If it suits you, then that's all that matters.  The Iweb platform is also seen as too bare-bones by many, but it suits me well alongside another platform I use.

But it does need to be clear exactly how much could be saved in return. In your case, it appears to be a long way off that £100+ figure referred to earlier for what the OP proposed. That's not to say it couldn't be done, but not in a way that would make the greatest sense for most people.  If Coldiron ,or someone else, could clarify what they had in mind, that would be interesting.

I believe you have misunderstood what I said. As previously stated, the bulk of the saving of £100+ per year, is because that is what it was costing to hold several years worth of ISAs with Vanguard. Once transferred to IWeb those ISAs no longer cost me anything to hold, whereas if I left them with Vanguard they would have continued to cost at least £100 every year I continued to hold them, and probably more as the value of the pot grew. The same would be true for the OP if he holds £100,000+ with Vanguard being charged a % based fee every year. Hence why I was very specific about the advantages of holding historic ISAs with IWeb.

For ongoing ISA investment within Vanguard, 3 * £500 buys per month, plus top ups to the max allowance of £20,000, so 37-40 free trades per year plus the %base fee of about £16 for the year. Followed by one transfer to IWeb.

What you said was clear enough, but I was replying to your reply to the post I'd made.  I haven't read any of your other posts.  Your final paragraph explains why with very small trades you think the hassle and investment limitations make it worthwhile for you. Context matters.

ColdIron

Rollinghome said:

But it does need to be clear exactly how much could be saved in return. In your case, it appears to be a long way off that £100+ figure referred to earlier for what the OP proposed. That's not to say it couldn't be done, but not in a way that would make the greatest sense for most people.  If Coldiron ,or someone else, could clarify what they had in mind, that would be interesting.

Pretty sure I haven't mentioned £100

However IWeb do have a cashback deal that negates their usual £100 opening fee

dllive

Apologies If I didnt make myself clear (as you may tell, Im a bit out of my wheelhouse). To clarify:

My plan is to move previous year's ISAs (about 5 year's worth) from Vanguard to iWeb. iWeb is purely just for holding funds, not trading.

For trading Ill continue to use Vanguard. (I dont pay to trade ETFs, I just pick the free option because I dont try to time the market). Then each year transfer the ISA to iWeb. Then repeat each year.