Vanguard: New Minimum Monthly Account charge

Alistair31

incus432 said:

I've used several over the years and AJ Bell is my favourite (42 pa cap on ETFs) .

I’m with AJBell taking advantage of this capped fee for my LISA. 

Now I’m thinking if I moved my ISA to them too would it fall under the same capped fee or would I pay two lots of £42? 

incus432

I think you have to pay separate fees on both - you do on ISA and SIPP - but you'd have to check.

Hoenir

Albermarle said:

People thinking of moving to cheaper platforms ( even free in some cases) should be aware that there will be nothing to stop some of them imposing new charges in future, when they have built up their customer base to an acceptable level. 

An influx of new accounts comes at a cost. Business decision would be up your own fee charges whilst remaining market competitive. 

MeteredOut

Albermarle said:

People thinking of moving to cheaper platforms ( even free in some cases) should be aware that there will be nothing to stop some of them imposing new charges in future, when they have built up their customer base to an acceptable level. 

...and there would be nothing to stop those people then moving to yet another platform.

I've already been asked by a family member to help them find a better home for their £10K SIPP (which won't grow signficantly over the next few years). They're invested in a VLS fund - is that available on other platforms or would we have to find a similar alternative?

eskbanker

MeteredOut said:

Albermarle said:

People thinking of moving to cheaper platforms ( even free in some cases) should be aware that there will be nothing to stop some of them imposing new charges in future, when they have built up their customer base to an acceptable level. 

...and there would be nothing to stop those people then moving to yet another platform.

I've already been asked by a family member to help them find a better home for their £10K SIPP (which won't grow signficantly over the next few years). They're invested in a VLS fund - is that available on other platforms or would we have to find a similar alternative?

The VLS funds are very mainstream and so are commonly available on most platforms, but always worth checking!

trickydicky14

jimjames said:

Royng54 said:

My portfolio is currently under £32,000, so the £4 per month fee doesn’t seem like much, but I’m concerned about whether I’ll be able to make back the £48 per year in returns.

You've not said how much your portfolio is at the moment but the £4 a month isn't additional, it replaces the current fees. If you have say £20k then you'll already be paying £30 per year so it's not an increase of £48 but only £18.

I hope that everyone who is focused on these costs is also switching bank accounts and insurance products as those are likely to be far more productive for saving money than this,

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.

Alexland

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.

Without knowing the types of investment you hold (or would be open minded to hold) and the trade pattern you expect to occur then it's very hard to comment. For example AJ Bell have charges in addition to the 0.25% for fund trades, regular investing and adhoc exchange trading which can soon add up.

eskbanker

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!

Alexland

Albermarle said:

People thinking of moving to cheaper platforms ( even free in some cases) should be aware that there will be nothing to stop some of them imposing new charges in future, when they have built up their customer base to an acceptable level. 

Yes I expect Dodl will see an uptake in business given they price matched Vanguard (although £1pm min).
I doubt their business would be viable without support from the AJB mothership.

dgpur

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. 🤷‍♂️