Transfer S&S ISA from Vanguard to Trading 212

MaterialGirl*

I’m trying to transfer my S&S ISA to Trading 212, but T212 will only let me proceed with a cash transfer, meaning my funds will be out of the market for up to 30 days. 

I’ve never transferred a S&S ISA before, is this a regular practice?

Also, I’m currently on the 80% Lifestrategy, would anyone know what T212 equivalent is or as close to that as possible?

Many Thanks 

eskbanker

When transferring from one S&S ISA to another, you sometimes have the option of doing so in specie (i.e. transferring asset registration without selling and rebuying) but only if both providers offer exactly the same investment(s), so if you're in VLS80 and want to transfer to a provider who doesn't offer that then yes, you need to sell and buy something else.

I suspect I may know the answer to this, but why move to a platform that doesn't offer your preferred investment, as it would be more normal to choose the investment first and then find a suitable platform?

MaterialGirl*

Thank you,  that is really helpful,.

I just had a look at T212 and the in specie transfer is not yet functional,  although it should be rolled out very soon, by end Q4 2024. 

I admit I’m not super knowledgeable with S&S ISAs and have only had the Vanguard ISA due to the low fees and I’ve been seeing it recommended a lot previously.

I don’t have very much in it at the moment, but I’m making regular payments in and want to avoid the new £4 monthly charge. 

WastedWords

T212 does not support OEIC / Unit Trusts, only shares incl. ETFs. 

Vanguard do not offer Lifestrategy funds as an ETF in th UK. 

Aidanmc

MaterialGirl* said:

I’m trying to transfer my S&S ISA to Trading 212, but T212 will only let me proceed with a cash transfer, meaning my funds will be out of the market for up to 30 days. 

I’ve never transferred a S&S ISA before, is this a regular practice?

Also, I’m currently on the 80% Lifestrategy, would anyone know what T212 equivalent is or as close to that as possible?

Many Thanks 

In order to re-create something similar to VLS80 on T212 i think you will have to use at least 2 ETF's, an All world index tracking ETF and a Global Bonds ETF.

wmb194

Aidanmc said:

MaterialGirl* said:

I’m trying to transfer my S&S ISA to Trading 212, but T212 will only let me proceed with a cash transfer, meaning my funds will be out of the market for up to 30 days. 

I’ve never transferred a S&S ISA before, is this a regular practice?

Also, I’m currently on the 80% Lifestrategy, would anyone know what T212 equivalent is or as close to that as possible?

Many Thanks 

In order to re-create something similar to VLS80 on T212 i think you will have to use at least 2 ETF's, an All world index tracking ETF and a Global Bonds ETF.

Trading212 offers the ETF accumulating and distributing versions of it but note that it's denominated in euros and listed in Italy. You'd need to compare their portfolios to see if there's any differences between the UK OEIC and the euro ETF. T212's fx fee is only 0.15% though so it's not too bad.

https://www.vanguard.co.uk/uk-fund-directory/product/etf/lifestrategy/9496/lifestrategy-80-equity-ucits-etf-eur-accumulating

masonic

One thing perhaps not to like is that the bonds are EUR-hedged. On the other hand there is no UK-equities overweight, which might be viewed as a good thing unless you want that. Couldn't see any obvious Eurozone overweight.

jimjames

MaterialGirl* said:

I don’t have very much in it at the moment, but I’m making regular payments in and want to avoid the new £4 monthly charge. 

How much are your fees at the moment? The increase in fees isn't £4 so might not impact you. Alternatively you could move to a platform that does offer the fund you want like HL

MaterialGirl*

I’ve only been paying £2.25 for the last quarter in fees. I’ve been adding monthly, but I think £48 will still be a  high fee compared to what I have in it.

I will look into HL, thank you.

Alexland

MaterialGirl* said:

I’ve only been paying £2.25 for the last quarter in fees. I’ve been adding monthly, but I think £48 will still be a  high fee compared to what I have in it.

I will look into HL, thank you.

HL charge 0.45% so would cost you £6.75 pm so it would be cheaper to say with Vanguard especially if you are still contributing as the gap between what you would have paid at 0.15% and what you will pay at the new £4 minimum (which is the equivalent of 0.27% of your account value) will reduce back down to 0.15% once the assets have nearly doubled to £32k. For the £1.75 pm difference which will reduce over time maybe just leave it alone if you are happy with the fund and service.

Now if you were happy to go up the risk scale to 100% equities then there would be loads more choices with world ETFs on T212 and InvestEngine at almost half the price of VLS and no platform fee but then you must have chosen 80% risk level for a reason and after several years of equities doing so well and now bonds are more attractive then it might not be a good time in the cycle to take higher risk.

Another option would be to transfer the ISA containing VLS to iWeb who have no ongoing charge but then they charge £5/trade so if you are still regularly contributing each month this would cost more. If you were really tight you could move the current ISA holding to iWeb then make your new contributions somewhere else.

WastedWords

No need to go 100% equities with T212 or InvestEngine. There are plenty of bond ETFs to choose from to create whatever balance you like.