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Invesment Question

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MoneyMan01
MoneyMan01 Posts: 228 Forumite
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edited 23 August 2024 at 2:06PM in Savings & investments
EDIT:
I had originally asked about a specific platform transfer, but as the thread progressed, the subject and opening description quickly changed.

This thread is now discussing the best strategy regarding platforms for a particular fund, and looking for clarity on how and when platforms charge their fees, and thus, when is the best time to transfer off of their platform for one that doesn't charge an on-going fee.
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  • badger09
    badger09 Posts: 11,584 Forumite
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    You can request IWEB to transfer your Vanguard holding whenever you want. But if you haven’t already invested on Vanguard platform, why the extra step? Why not just invest via IWEB? 
  • masonic
    masonic Posts: 27,266 Forumite
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    badger09 said:
    You can request IWEB to transfer your Vanguard holding whenever you want. But if you haven’t already invested on Vanguard platform, why the extra step? Why not just invest via IWEB? 
    I'd wager the OP is trying to avoid the £5 iWeb dealing charge.
  • badger09
    badger09 Posts: 11,584 Forumite
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    masonic said:
    badger09 said:
    You can request IWEB to transfer your Vanguard holding whenever you want. But if you haven’t already invested on Vanguard platform, why the extra step? Why not just invest via IWEB? 
    I'd wager the OP is trying to avoid the £5 iWeb dealing charge.
    I realise this is MSE but…..
  • ColdIron
    ColdIron Posts: 9,844 Forumite
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    edited 22 August 2024 at 4:58PM
    Potentially monthly
    True. I guess it all depends on how much and how frequent. For example, I'd be looking to make monthly purchases, so that £5 would become £60 over the year.

    If it's in a GIA, can they be transferred from Vanguard to iWeb straight away, does anyone know?
    Transfers can take anywhere between a few weeks and a few months during which time you can't sell or do much else. I suspect if this was done frequently enough it would be picked up by one end or the other as abuse of the system if it could be done at all. E.g concurrent transfers of the same fund. It's possible that the vanguard account would be closed once the first transfer was completed
  • MoneyMan01
    MoneyMan01 Posts: 228 Forumite
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    Whilst a £5 fee is insignificant when making a large purchase, if it was a monthly purchase of say £1000 each time, that costs you £60 over the year, or 0.5% eating into your return.

    Whereas, if you purchase on Vanguard, there are no trading fees as I understand it, but a 0.15% platform fee.

    So, my plan was to purchase on Vaguard each month, and as soon as I've purchased, move across to iWeb for the zero platform fees.

    Is it just Vanguard that mean this transfer could take weeks/months? Could I go with AJ Bell for example?

    I want to know if I can make a purchase each month, then transfer straight to iWeb - If so, can that be done at any time, and take no longer than a couple of days?
  • masonic
    masonic Posts: 27,266 Forumite
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    edited 22 August 2024 at 5:08PM
    Standard timescales for such transfers are 6-8 weeks, although many are done in less time than that (my last in specie transfer was completed in less than 3 weeks - it didn't involve either iWeb or Vanguard however).
    While it may theoretically be possible to do a monthly transfer into iWeb, I rather suspect at some point they would put a stop to this, either by refusing to action any further transfer requests from the same provider or ending their relationship with you. I've heard of others doing an annual transfer and this would be much less likely to attract attention.
  • ColdIron
    ColdIron Posts: 9,844 Forumite
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    edited 22 August 2024 at 5:50PM
    Is it just Vanguard that mean this transfer could take weeks/months? Could I go with AJ Bell for example?

    I want to know if I can make a purchase each month, then transfer straight to iWeb - If so, can that be done at any time, and take no longer than a couple of days?
    AJ Bell will take a similar amount of time and none of them will complete in a couple of days
    If you used Vanguard at £1,000 per month the platform fee would be about £9 in the first year. You could then transfer without invoking the ire of the providers but you would still need to ensure that the Vanguard account was not closed upon completion (I've never used Vanguard)
    IWeb are great for large buy and hold accounts with infrequent trading. For smaller amounts and monthly trading percentage fee providers are your best bet and economic for several years
    Edit: Something else you may want to consider is the extra complication of running two accounts. Two logins, two customer service teams, two annual tax certificates and all the extra work involved in detailed record keeping and working out any potential tax liability. It's just not worth the aggro to save a few quid especially for a novice investor. It could put you off for life
  • boingy
    boingy Posts: 1,914 Forumite
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    It would make more sense to accumulate the units at Vanguard and then transfer them out every year or two.
    It would make even more sense to make the monthly payment into a savings account then make one purchase every 6 or 12 months via iWeb at a fiver a time.
  • MoneyMan01
    MoneyMan01 Posts: 228 Forumite
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    Thanks for all of the responses so far. 

    Given the information, I’ve looked at the FTSE HSBC Global All World Inc, via the HSBC GIC platform. 

    Has a 0.25% platform fee, at which point I could look at annually transferring it over to iWeb.

    Does it matter what part of the year I transfer it? Before or after the tax year? Before December? Is there a set time they take the fee? Or does it not matter? Just doing it once a year?
    roughly, to avoid them getting the hump? 
  • Alistair31
    Alistair31 Posts: 978 Forumite
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    edited 23 August 2024 at 7:35AM
    Thanks for all of the responses so far. 

    Given the information, I’ve looked at the FTSE HSBC Global All World Inc, via the HSBC GIC platform. 

    Has a 0.25% platform fee, at which point I could look at annually transferring it over to iWeb.

    Does it matter what part of the year I transfer it? Before or after the tax year? Before December? Is there a set time they take the fee? Or does it not matter? Just doing it once a year?
    roughly, to avoid them getting the hump? 
    I think you could find cheaper platform fees than HSBCs own.
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