Vanguard: New Minimum Monthly Account charge

Alexland

Albermarle said:
To put an £18 rise in platform fees in context, a £30K investment in a global index fund, could drop £10,000 in a week.

The nice thing about spending time obsessing about platform fees is that it's something you can control and it stops you worrying about the investment performance or doing any classic behavioural errors to damage it.

Once you have made suitable investment choices it's a useful distraction.

trickydicky14

eskbanker said:

trickydicky14 said:

Yes it's not the end of the world as I know it. I'm paying something like £10:50 every 3 months on I think 30k so yes a rise but too much of one and hopefully I'll go over the 32k mark soon.
And as you point out, folks need to also focus on other arears of increase that are a lot more than this.

Hopefully that's missing a 'not', or otherwise your view of an extra £6pa is likely to differ from others!

Yes I need stronger glasses.

mark_cycling00

If vanguard encourage their loss making customers to move to a "free" platform then it probably brings forward the date when that "free" platform has to start charging.

Alexland

mark_cycling00 said:

If vanguard encourage their loss making customers to move to a "free" platform then it probably brings forward the date when that "free" platform has to start charging.

Yup and expensive platforms will continue to decline and new free platforms may emerge to undercut the previous free platforms provided the business model of offering a really good deal to attract customers and build a valuable business doesn't stop working.

dunstonh

Vanguard has been my least well performing investment (was experiencing a loss for ages), so I guess that money is about to shift to my best performing. 🤷‍♂️

The fact it is vanguard has nothing to do with the performance.   The performance will be down to the assets it invests in.   As Vanguard have one of the largest range of index trackers in the UK, there will be areas which have had a poor time and areas that have done well.    Of course, past performance is no guide to the future and of then the areas that have not done well in this cycle will do much better in the next and the areas that have been best in this cycle will be poor in the next.

Hoenir

Alexland said:

mark_cycling00 said:

If vanguard encourage their loss making customers to move to a "free" platform then it probably brings forward the date when that "free" platform has to start charging.

Yup and expensive platforms will continue to decline and new free platforms may emerge to undercut the previous free platforms provided the business model of offering a really good deal to attract customers and build a valuable business doesn't stop working.

No one is going to launch a loss making platform unless there's a decent return to be had at the end of the day. Same principle applies to any business model. There's no money to be made in offering share trading to small value retail investors.  

jimjames

dgpur said:

Vanguard has been my least well performing investment (was experiencing a loss for ages), so I guess that money is about to shift to my best performing. 🤷‍♂️

How did you manage to invest in Vanguard? My understanding is that Vanguard is a mutual so you can't buy shares in it?

equitydealer

For anyone that is interested, I've got written confirmation from Vanguard (feel free to send your own secure message to them) that any transfers out that complete by March will not be subject to the new fee structure. If anyone wants out, get those transfer requests in with your new provider.

jbrassy

orange-juice said:

jbrassy said:

So these fee changes are a bit of a blow to me personally. I only have a circa £10,000 SIPP (transferred in from an old company pension) with Vanguard, so the £4 a month fee is a significant increase from 0.15% per annum.

I've been doing a bit of research, and I notice Invest Engine offer a SIPP with zero fees. However, I believe they currently do not offer SIPP transfers.

The cheapest option I've found thus far is AJ Bell which charge a 0.25% platform fee. While this is a 0.1 percentage point increase compared to before, I could potentially offset this by investing in non-Vanguard funds with lower fees, but nevertheless track the same benchmark. 

Would be good to know if there are any SIPP providers I have missed which are cheaper than AJ Bell which allow you to transfer-in SIPPs? Help is much appreciated.

There’s a new kid on the block called Prosper, offering different accounts at zero/low fees.

I’m not 100% certain that they accept transfers but could be another one to consider.

Thanks. I've just briefly looked into this. The chat bot said they do accept SIPP transfers. They also offer the same HSBC and Vanguard funds as AJ Bell, so I will certainly look into this further.

Aidanmc

jbrassy said:

orange-juice said:

jbrassy said:

So these fee changes are a bit of a blow to me personally. I only have a circa £10,000 SIPP (transferred in from an old company pension) with Vanguard, so the £4 a month fee is a significant increase from 0.15% per annum.

I've been doing a bit of research, and I notice Invest Engine offer a SIPP with zero fees. However, I believe they currently do not offer SIPP transfers.

The cheapest option I've found thus far is AJ Bell which charge a 0.25% platform fee. While this is a 0.1 percentage point increase compared to before, I could potentially offset this by investing in non-Vanguard funds with lower fees, but nevertheless track the same benchmark. 

Would be good to know if there are any SIPP providers I have missed which are cheaper than AJ Bell which allow you to transfer-in SIPPs? Help is much appreciated.

There’s a new kid on the block called Prosper, offering different accounts at zero/low fees.

I’m not 100% certain that they accept transfers but could be another one to consider.

Thanks. I've just briefly looked into this. The chat bot said they do accept SIPP transfers. They also offer the same HSBC and Vanguard funds as AJ Bell, so I will certainly look into this further.

Is Prosper app only?