Trading 212 SIPP

swindiff

I have a Trading 212 S&S ISA and cash ISA and  and have just been reading they are supposed to be introducing a SIPP in the 1st quarter of 2025. It almost seems too good to be true that there will be no management fees just a 0.15% currency conversion fee (FX fee) for stocks and ETFs. If this is true then transferring to them would seem a no brainer?

TheBanker

I think they've been talking about launching a SIPP for a while and the date keeps getting pushed back.

I have an ISA with T212, but if the SIPP does launch I won't transfer immediatly. I would expect they'll be overwhelmed with transfer requests initially, so I'll let things settle down before I look at whether I want to transfer any of my money. 

Pat38493

This would probably be good news for competition in this area I think?

If this is successful for Trading 212, it will potentially force other providers to reduce their platform charges.

The only potential issue is that we see claims here from time to time, that many of these platforms, even the ones charging a platform fee, are not making profits and are running at a loss in order to grab market share - not sure if that's really true or not, but if so I would potentially mean consolidations or failures down the line.

cloud_dog

I have an account with T212 with a relatively small amount, but I won't be placing any significant amounts with them as I find their customer service doesn't fit with my requirements; it is chatbot or or email.

I don't find shelling out c. £120pa and/or £159pa to be a significant overhead TBH.

AlanP_2

Will they support all of the drawdown methods that can be used, and if so will they charge and how onerous will their processes be?

Focusing on low cost might be the only thing relevant for some people as they accumulate but how it works at the other end is also important.

DavidT67

AlanP_2 said:

Will they support all of the drawdown methods that can be used, and if so will they charge and how onerous will their processes be?

Focusing on low cost might be the only thing relevant for some people as they accumulate but how it works at the other end is also important.

Agreed.

Hasn't the Pensions Regulator recently announced that they would deregister any provider which doesn't support FAD as well as UFPLS?

That's put some of the new entrants, i.e. FreeTrade, in the crosshairs as they only offer UFPLS.

Also moving pensions which have been accessed to the new entrants tends to be impossible, due to lack of suitably mature processes and systems for split pots.

adindaspantai

Now that Trading 212 has launched its SIPP and is gradually rolling it out, particularly to existing customers, does anyone see any drawbacks to transferring part of a SIPP from Vanguard to Trading 212?

The biggest advantage I can see is the low fee of just 0.15% for forex. As I understand it, there are no FX fees when buying ETFs priced in GBP. Trading 212 also offers a much wider selection of funds, ETFs, and individual stocks than Vanguard, giving investors more flexibility.

No cost for moving your fund ETF to Trading 212 from another provider and they support In-specie transfer,.

Another benefit is that there are no dealing / trading fees, account maintenance fee and you can place limit orders, which Vanguard for instance doesn't currently support as it only processes trades once or twice a day. The no trading fees and ability to set a limit order are major advantages for those who want to self pick a high quality individual stock.

Also, AFAIK they pay interest on cash better than Vanguard.

The main downside I can see is that Trading 212 doesn't yet offer drawdown facilities, so it may still be necessary to keep a Vanguard SIPP (or another provider) for retirement withdrawals.

For those who have looked into it, what do you see as the main advantages and disadvantages of moving part of your SIPP from Vanguard to Trading 212? I'd really appreciate any thoughts, experiences, or assessments.

PropertyGuru_Wannabe

Trading 212 is one of the best online platforms available at the moment for trading and having so many funds available for the investor. However you need to look at each SIPP platform provider separately depending on immediate needs. Problems in transfers, drawdown, issues, and being unable to facilitate payments from companies, employers, or other third parties will severely restrict your service satisfaction with Trading 212.

Although I have my S+S ISA with Trading 212 which I absolutely love, I won't be transferring my SIPP to them in the foreseeable future as it just doesn't suit my needs.

adindaspantai

https://forums.moneysavingexpert.com/discussion/comment/82040044#Comment_82040044

IMHO It is not either or situation as we could still have both. Remember that many platforms charge the account fee based on percentage basis. For example vanguard charges account fee of 0.15% fee capped at £375 a year, so people will pay less if there are less money in that account. Some people do not really need payments from companies, employers, or other third parties as they could do it by themselves and receive top up from HMRC. But I totally agree that it will depend on people circumstances. But people could still have both.

For some people the no trading fees, ability to set a limit order, a much wider selection of funds, ETFs, and individual stocks, ETFs are major advantages for those who want to self pick a high quality individual stock, ETFs. AFAIK, there is no such SIPP platform in the UK that could match that T212 features. Also they pay a decent interest for cash sitting in SIPP.

cloud_dog

I don't know if I'm getting old (!), but ignoring the gamified UI/UX I just find the simple task of setting up a regular investment in T212 to be more of a PIA than I would like it to be, and there are cost limits if you do it by card etc (£2k before charges), etc.

adindaspantai

https://forums.moneysavingexpert.com/discussion/comment/82040410#Comment_82040410

IMO, this could be overcome in this way. They are using an open banking 'true layer', so the money will be transferred instantly from your bank AC to your investment account 24/7. There is no limit on how many times you could do that at no fees. Once the money is in the account you could than invest that money instantly or at your own convenience.They pay a decent interest on cash, so money sitting a few days in the investment account will not be a big problem. It is not automatic but this could also be an advantage for some people, as it will also give people a more flexibility on when to invest at their own convenience.