Platform choice for the move to DIY investing before retirement

RichardS

I’m hoping very soon to move into the world of DIY investing, basically passive investing with index funds.  I will have an ISA to transfer (value £26K) and a pension (value £203k). I will be continuing to contribute to these for the next 3-5 years and then at that point start some sort of drawdown, perhaps with portfolios (at least the pension pot anyway) split into some sort of cashflow ladder set up.

I would probably want to try and keep things very simple and just track some sort of global equity index and a bond index and perhaps one additional index of some sort so maybe 3 funds.

My problem is that I just can’t decide on what platform I should be looking to use and I get confused comparing all their different charging methods.  I’m looking at Vanguard, InvestEngine, Interactive Investor, trading212 etc etc.    Does anyone have any clear recommendations for a good platform for my particular use case or any I should avoid?  And should I use one for the ISA and one for the pension or is there a platform that would give lower charges if I used them for both?

MallyGirl

I have both my pension and ISA on II as it was more cost effective to do it that way.

xylophone

With regard to fund choice

https://monevator.com/low-cost-index-trackers/

https://monevator.com/best-global-tracker-funds/

might be worth a read.


Platform comparison

https://monevator.com/compare-uk-cheapest-online-brokers/



I use iweb for my ISA - it's "cheap and cheerful" but works for me. Check the funds you require are offered.

It might suit you if your needs are as simple as you indicate.


https://www.iweb-sharedealing.co.uk/our-accounts/self-select-stocks-and-shares-isa.html

Relative uses Hargreaves Lansdown for SIPP and for ISA and also has ISA with II and an account with iweb.

He finds both satisfactory.

https://www.hl.co.uk/partners/search/self-invested-personal-pension?partners=1&theSource=PCHLS&Override=1&adg=G+HLBS+HLS+NLP&gad_source=1&gclid=CjwKCAiAsIGrBhAAEiwAEzMlCw8W-iIopu79Q7sX78ereJeu6v2jYMZnbRxHRZMg2HFmkA5mQbhiIRoCDOMQAvD_BwE

https://www.hl.co.uk/partners/search/stocks-shares-isa?partners=1&theSource=PCHLI&Override=1&adg=G+HLBI+HLI+RSA+CON&gad_source=1&gclid=CjwKCAiAsIGrBhAAEiwAEzMlCzHM5ezlWb0yLP6Q7RbXnyDppHTREr_1dt32WjJee-Eh3vMQhRcjcBoCjV4QAvD_BwE

https://www.ii.co.uk/acq/open-isa-account?utm_source=google&utm_medium=cpc&utm_campaign=Brand_Non_Core&utm_content=rsa-ii isa- isa cashback offer-nov 23-b&utm_term=ii transfer isa&gad_source=1&gclid=CjwKCAiAsIGrBhAAEiwAEzMlCzeNE5qsOrkoyplj_bfLQfcwuCfP2QcZwbdjB3ld4_UJjbWx91ddGRoCRvEQAvD_BwE

https://www.ii.co.uk/acq/open-sipp-account?utm_source=google&utm_medium=cpc&utm_campaign=Generic_SIPP&utm_content=rsa-sipp-product-1-e&utm_term=ii sipp&gad_source=1&gclid=CjwKCAiAsIGrBhAAEiwAEzMlCywMHj7WwchpTafEhvc80T0ez1TZ8FWnpMXAdtYxkDpKrry27ao5_hoCa0oQAvD_BwE

coastline

Two guides here. Regarding SIPP you'll probably need competitive fees in drawdown.? How can you tell how the newer platforms compare in drawdown ? Do they have good records regarding customer service ? Can only wait and see how they are recommended by investors.

Broker comparison: cheap investment platforms UK (monevator.com)

The cheapest stocks and shares ISA on the market - Monevator

Albermarle

Normally for funds of your size, a fixed fee platform is better 
However some % fee platforms have a capped price if you only invest in exchange traded products ( shares, ETF's and Investment trusts) They are 
AJ Bell £120 
Fidelity £90
HL  £200 for Sipp and £45 for ISA

Apart from a charge to buy the investment product there are very few/no charges for drawdown .

Personally if I was in your position looking for a retirement plan I would probably shyaway from smaller newer players and stick with an established large platform.

All the above mentioned , and others, regularly offer quite generous cashbacks for transfers in .

RichardS

MallyGirl said:

I have both my pension and ISA on II as it was more cost effective to do it that way.

Why was it more cost effective - because of the size of your pension and ISA or because you were investing in both on the same platform?

Albermarle

RichardS said:

MallyGirl said:

I have both my pension and ISA on II as it was more cost effective to do it that way.

Why was it more cost effective - because of the size of your pension and ISA or because you were investing in both on the same platform?

Because it is a fixed fee platform. You pay the same regardless of how much you have on the platform.
Most platforms charge a % of the funds on the platform, although the % can drop as the amounts get bigger.

RichardS

I like the look of Interactive Investor actually because of the fixed fees. And it looks like if I wanted to choose Vanguard Lifestrategy mixed asset funds rather than choose my own fund mix, it would be cheaper on there than on the Vanguard platform (unless I’m missing something). Something inside me makes me a little bit scared of choosing my own funds so I might well end up with a mix of some LS funds, unless I become braver. 

Pat38493

RichardS said:

I like the look of Interactive Investor actually because of the fixed fees. And it looks like if I wanted to choose Vanguard Lifestrategy mixed asset funds rather than choose my own fund mix, it would be cheaper on there than on the Vanguard platform (unless I’m missing something). Something inside me makes me a little bit scared of choosing my own funds so I might well end up with a mix of some LS funds, unless I become braver. 

I am with II and I don't have any complaints so far.  One thing to watch out for though is that they seem to have a £40 fee for any single transaction over £100K, so once you have your money there you would have to invest it in chunks less than £100K each time to avoid this charge.

Hoenir

RichardS said:

 Something inside me makes me a little bit scared of choosing my own funds so I might well end up with a mix of some LS funds, unless I become braver. 

Self management of an investment portfolio is far from easy. The once in a lifetime era of an incoming tide lifts all boats has passed. Running a dummy portfolio is one way of educating yourself. While undertaking research and gaining a broader understanding of the markets. . 

tacpot12

I'm self-managing my retirement portfolio, mosting in a SIPP, but also have some in a Stocks & Shares ISA. I've retired now and have been drawing down on my pension for just over 4 years.  I use AJ Bell. I don't think they are the absolutely cheapest, but their charges are low and their customer service has been very good. 

It is a little nerve-wracking being responsible, but providng you are diligent with your research (and running a dummy portfolio for a while is a good idea), you should be ok. The point of doing it yourself is that you don't need to acheive quite the same return that you would need a professional to acheive as you are saving the cost of their fees, which might be 1% of your portfolio value. It's quite hard for advisers to outperform DIY investors as getting 6% on your money is relatively easy, and getting 7% (reliably) is harder.