Low-cost platform for investing in funds

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N8tey
N8tey Posts: 3 Newbie
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in Savings & investments
Hello from a MSE forum newbie!

Hoping to benefit from the impressive collective wisdom here... basically I am looking for the cheapest possible platform to start investing in index funds (e.g. Vanguard, etc). Small monthly amounts, so a drip feed approach.

I currently have accounts with both HL and Nutmeg but am looking for something more basic and cheaper in the long run. Nutmeg currently charges .75% annually, whereas HL is more like .95% plus trading charges, I think. Is it possible to beat those rates here in the UK? I know the US has platforms like Betterment which charge as little as .25%, but I have not heard of anything so cheap over here.

Any advice greatly appreciated, thanks.

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  • System
    System Posts: 178,094 Community Admin
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    Why not Vanguard?:
    https://www.vanguardinvestor.co.uk/
  • eskbanker
    eskbanker Posts: 31,050 Forumite
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    Plenty of cheaper options than HL and Nutmeg shown at:
    http://monevator.com/two-ways-to-help-you-find-the-best-online-broker-or-investment-platform/
    http://www.comparefundplatforms.com/
    https://forums.moneysavingexpert.com/showthread.php?t=5583030
  • GooeyBlob
    GooeyBlob Posts: 190 Forumite
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    I use Barclays Smart Investor, fees are 0.2% for funds, 0.1% for shares and bonds and £6 to buy. Can't remember what the fee is for selling, think it's also £6
    Saved over £20K in 20 years by brewing my own booze.
    Qmee surveys total £250 since November 2018
  • A_T
    A_T Posts: 959 Forumite
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    As it's index tracker funds and ETFs you're looking for it's hard to beat Vanguard Investor for 5-figure amounts. £15 per annum for holding £10,000 with all the buying and selling you want included.
  • dunstonh
    dunstonh Posts: 116,376 Forumite
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    Nutmeg currently charges .75% annually, whereas HL is more like .95% plus trading charges,

    That is not comparing like for like.

    Plus, Nutmeg is not 0.75%. It is 0.75% plus 0.21% investment cost plus 0.09% transaction costs. They charge 1.05% Which is very high for flow chart option. Although for very small investors, it would be attractive. For larger investors, that is not far off a full advised IFA portfolio including managed funds and more expensive than an IFA option using passives only. DIY is meant to be cheaper. Not more expensive.

    HL is 0.45% plus fund charge of 0.22% (for VLS) plus 0.11% for transaction costs.
    Is it possible to beat those rates here in the UK?

    Yes. Seeing as HL is one of the most expesnive platforms in the UK and Nutmeg is one of the most expensive robo providers, it is pretty easy to get cheaper.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dont_use_vistaprint
    dont_use_vistaprint Posts: 601 Forumite
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    I really like Vanguard, the fees seem low to me for the amounts bought and sold, I'm sure there are cheaper, but as a newbie they have good telephone support. My only complaint is they're not chosen intermediaries for some companies so I need to use HL too.
    "It is not the critic who counts..." - Theodore Roosevelt
  • overlyconcerend
    overlyconcerend Posts: 189 Forumite
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    Sorry to hijack but cab someone explain the difference between something like the life strategy fund and the L&G International Index Trust?

    I'm looking for something without the UK weighting the vanguard funds seem to have
  • dunstonh
    dunstonh Posts: 116,376 Forumite
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    Sorry to hijack but cab someone explain the difference between something like the life strategy fund and the L&G International Index Trust?

    VLS is a fettered fund of funds using underlying passive funds.
    L&G International Index is passive fund.

    In other words, VLS is a collection of different own-brand funds whereas L&G is a fund in itself.

    L&GMI is a closer comparison to VLS.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ColdIron
    ColdIron Posts: 9,051 Forumite
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    At a high level Lifestrategy is a fund composed of separate index trackers and may include bonds, the allocations are decided by Vanguard. The L&G fund tracks a single index, the FTSE World (ex UK) Index, that specifically excludes the UK and is 100% equities
  • Terry_Towelling
    Terry_Towelling Posts: 2,279 Forumite
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    GooeyBlob wrote: »
    I use Barclays Smart Investor, fees are 0.2% for funds, 0.1% for shares and bonds and £6 to buy. Can't remember what the fee is for selling, think it's also £6


    Just one additional factor with Barclays is the minimum monthly charge of £4 (£48 pa)
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