Any advantage in putting all (most) eggs in one basket?

SunnyBunny

I've got a S&S ISA with Vanguard and a SIPP with Fidelity.   I've read on this site that it is possible to buy a wider range of Vanguard products via Fidelity - so I guess it would be less admin for me if I transferred to Fidelity. 
Are there any other advantages?   I suppose the big disadvantage would be if Fidelity took a tumble.   Any views appreciated.
Thanks.

Beddie

Higher fees at Fidelity and no, they won't be taking a tumble!

But I don't see the point, personally, unless you want access to more funds. In which case there are cheaper platforms out there anyway.

However, if you want it all with one provider, that's up to you.

kempiejon

SunnyBunny said:

I've got a S&S ISA with Vanguard and a SIPP with Fidelity.   I've read on this site that it is possible to buy a wider range of Vanguard products via Fidelity - so I guess it would be less admin for me if I transferred to Fidelity. 
Are there any other advantages?   I suppose the big disadvantage would be if Fidelity took a tumble.   Any views appreciated.
Thanks.

That big disadvantage outweighs admin savings in my book. I like more than one supplier for my access to cash. I have 5 credit cards, 3 current accounts,  savings accounts. 3 ISA providers and 2 SIPPs. Just in case there's something that hits my flow of money. But I'm paranoid about the likelihood of tech outages.

InvesterJones

SunnyBunny said:

I've got a S&S ISA with Vanguard and a SIPP with Fidelity.   I've read on this site that it is possible to buy a wider range of Vanguard products via Fidelity - so I guess it would be less admin for me if I transferred to Fidelity. 
Are there any other advantages?   I suppose the big disadvantage would be if Fidelity took a tumble.   Any views appreciated.
Thanks.

If your money is in stocks & shares/funds then it's not really in one basket, your transactions in and out are just being administered by one provider - if they go under your funds will still be working away fine and you'll be able to use another provider to get access to them.

SunnyBunny

Hey @InvesterJones good to know that another provider would step in (naive I should know that)

@Beddie So is it expensive to buy via Fidelity, I mean in general, rather than to buy Vanguard products? 

Thanks @kempiejon that is a consideration.

InvesterJones

SunnyBunny said:

So is it expensive to buy via Fidelity, I mean in general, rather than to buy Vanguard products? 

You need to add up exactly the fees that you'd pay for your investments - it'll depend on the type of investment and the amount as to whether Fidelity ends up more expensive or cheaper. For most cases Vanguard will be cheaper, but there's an edge case (large amounts invested in stocks/investment trusts/ETFs but few transactions where Fidelity could be cheaper).

Beddie

SunnyBunny said:

@Beddie So is it expensive to buy via Fidelity, I mean in general, rather than to buy Vanguard products? 

As you already invest with both companies, surely you know what their fees are? It's an important consideration, but not the only one. As you've found, Fidelity have access to many more funds. But then so do others that are cheaper.

Fidelity platform fee 0.35%
Vanguard platform fee 0.15%

Plus fund management fees which should be the same for both. 

dunstonh

I've read on this site that it is possible to buy a wider range of Vanguard products via Fidelity 

Whole of market platforms have a wider choice of Vanguard funds. They also have the advantage of other fund houses too and that is important as Vanguard is not the best fund house in every area.  If you favour trackers, then you are likely to have a portfolio of funds across different fund houses if you are looking at doing the optimal selection.

 I suppose the big disadvantage would be if Fidelity took a tumble.  

Why would it be a disadvantage?  Fidelity don't have high volumes of illiquid assets and it would be sold to another long before any financial problems occurred.   Its platforms with higher volumes of illiquid assets that you need to be wary of.

I don't use Fidelity. Whilst we have special terms which are lower than the default and the DIY pricing, they are still more expensive than other whole of market platforms. Plus, I don't like Fidelity's software.    Software is a subjective opinion though as some will be happy with it and others won't know the differences as they lack the experiences of others.

So is it expensive to buy via Fidelity, I mean in general, rather than to buy Vanguard products? 

Its probably best to stop referring to Vanguard funds as Vanguard products.   A product typically refers to the tax wrapper.  e.g. ISA or pension.     When you refer to funds, its best to stick to funds or if you are using ETFs instead of OEICs then refer to them as ETFs.

dunstonh

I've read on this site that it is possible to buy a wider range of Vanguard products via Fidelity 

Whole of market platforms have a wider choice of Vanguard funds. They also have the advantage of other fund houses too and that is important as Vanguard is not the best fund house in every area.  If you favour trackers, then you are likely to have a portfolio of funds across different fund houses if you are looking at doing the optimal selection.

 I suppose the big disadvantage would be if Fidelity took a tumble.  

Why would it be a disadvantage?  Fidelity don't have high volumes of illiquid assets and it would be sold to another long before any financial problems occurred.   Its platforms with higher volumes of illiquid assets that you need to be wary of.

I don't use Fidelity. Whilst we have special terms which are lower than the default and the DIY pricing, they are still more expensive than other whole of market platforms. Plus, I don't like Fidelity's software.    Software is a subjective opinion though as some will be happy with it and others won't know the differences as they lack the experiences of others.

So is it expensive to buy via Fidelity, I mean in general, rather than to buy Vanguard products? 

Its probably best to stop referring to Vanguard funds as Vanguard products.   A product typically refers to the tax wrapper.  e.g. ISA or pension.     When you refer to funds, its best to stick to funds or if you are using ETFs instead of OEICs then refer to them as ETFs.

SunnyBunny

This does bring it home to me to review my decisions - I went with Fidelity as they had a cashback offer at the time.  Will have to look into fees and watch my language    funds, ETFs not products!

Thanks so much.