Cheapest platform for Vanguard LifeStrategy funds

LoveWalking

Am I right in saying that it is less costly to invest Vanguard LifeStrategy funds using the iWeb platform than usiing Vanguard's own platform?
This does not seem to make any sense.

masonic

It depends. If you want to start with a £100 investment and add £25 per month, iWeb would not be cheaper.

Vanguard's platform is a separate service to its fund management arm, so it is not surprising that it has its own separate charging structure that is not always the most competitive option in the DIY investment market. You do not receive any rebate on Vanguard fund fees by holding the funds on Vanguard's platform.

ColdIron

For small amounts and frequent dealing you want a percentage fee platform such as Vanguard Investor

For larger holdings and infrequent dealing a fixed fee or no fee platform will be more cost effective. e.g. IWeb

Get it the wrong way around and you will be paying more than you need to

Futuristic

ColdIron said:

For small amounts and frequent dealing you want a percentage fee platform such as Vanguard Investor

For larger holdings and infrequent dealing a fixed fee or no fee platform will be more cost effective. e.g. IWeb

Get it the wrong way around and you will be paying more than you need to

Even if you trade frequently iWeb can still be way cheaper, it all depends on the amount you have. Especially right now where iWeb have waived £100 sign up fee with no min deposit. 

https://www.iweb-sharedealing.co.uk/charges/competitor-charges.html

ColdIron

Yes, the sums and dealing frequency are key

With 12 trades a year IWeb would cost £60

With Vanguard Investor the break even point would be £40,000 averaged over a year. Perhaps the OP is in this ballpark but they haven't said

Vortigern

Use both. Build your ISA by monthly purchases on Vanguard's platform, then transfer your ISA in specie to iWeb each year. 

Then repeat; Vanguard don't mind.

eskbanker

https://comparefundplatforms.com/ allows a fee comparison based on a specified investment profile, although doesn't include Vanguard's platform....

trickydicky14

Not wishing to interject but would iweb be cheaper than Halifax for an ISA with a lump sum of 120k doing very little in terms of trades just left to do its own thing.

masonic

trickydicky14 said:

Not wishing to interject but would iweb be cheaper than Halifax for an ISA with a lump sum of 120k doing very little in terms of trades just left to do its own thing.

iWeb charges no custody fee at all, so if you don't trade, you'd pay nothing to iWeb. There are cases when Halifax could be cheaper, mainly if you make heavy use of their cheaper regular investment feature, which iWeb does not have.

Beddie

trickydicky14 said:

Not wishing to interject but would iweb be cheaper than Halifax for an ISA with a lump sum of 120k doing very little in terms of trades just left to do its own thing.

Halifax is £36 a year, I believe, so it's hardly a lot of money to be saved. But yes, if you do no trading then there's no charges at all with iweb.

dales1

masonic said:

iWeb charges no custody fee at all, so if you don't trade, you'd pay nothing to iWeb.

After this morning's posts, I was considering moving from Hx Sharedealing to iWeb (now with no opening fee).

And I downloaded iWeb's costsandcharges.pdf today.

This states that "Ethan the ETF investor" (like me) will pay 0.2% ongoing charge plus 0.5% transaction charge [on top of the £5 dealing commission].

So it appears to me that iWeb do charge a custody fee (plus a horrid transaction charge).

(I'm sorry if i've misunderstood).