Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • The Reaper
    • By The Reaper 6th Feb 18, 5:35 PM
    • 344Posts
    • 105Thanks
    The Reaper
    Move ISA to Vanguardinvestor
    • #1
    • 6th Feb 18, 5:35 PM
    Move ISA to Vanguardinvestor 6th Feb 18 at 5:35 PM
    Hi

    I have about 5000 in a stocks and shared ISA held with Charles Stanley Direct.

    The ISA contains only Vanguard Life Stategy 100

    I invested about 5 years ago as a long term investment and dont intend to use it for another 12-15 years. I intend to buy more Vanguard LS funds as and when I feel like it.

    I recently read about vanguardinvestor.co.uk and that I could move my ISA to them. The idea would be this would save me some platform fees over the years.

    Is there any downside to moving my ISA from Charles Stanley Direct to Vanguardinvestor?

Page 1
    • chockydavid1983
    • By chockydavid1983 6th Feb 18, 5:46 PM
    • 586 Posts
    • 355 Thanks
    chockydavid1983
    • #2
    • 6th Feb 18, 5:46 PM
    • #2
    • 6th Feb 18, 5:46 PM
    Not that I can see, given your strategy
    • TARDIS
    • By TARDIS 6th Feb 18, 8:04 PM
    • 111 Posts
    • 80 Thanks
    TARDIS
    • #3
    • 6th Feb 18, 8:04 PM
    • #3
    • 6th Feb 18, 8:04 PM
    I think you'll have a 10 transfer out fee to pay Charles Stanley so you'll need to weigh that against the savings in platform fees with vanguard which will depend on how much you plan to add and when.
    With 5k you're not talking large charges on either platform.
    • ValiantSon
    • By ValiantSon 6th Feb 18, 8:59 PM
    • 2,034 Posts
    • 1,885 Thanks
    ValiantSon
    • #4
    • 6th Feb 18, 8:59 PM
    • #4
    • 6th Feb 18, 8:59 PM
    Vanguard will cost 5 less on a 5000 investment, but Charles Stanley will charge you a 10 exit fee, so the first year with Vanguard will actually cost you 5 more, but moving forward you will be saving every year.
    • dunstonh
    • By dunstonh 6th Feb 18, 9:08 PM
    • 93,038 Posts
    • 60,430 Thanks
    dunstonh
    • #5
    • 6th Feb 18, 9:08 PM
    • #5
    • 6th Feb 18, 9:08 PM
    For the tiny amounts of money involved, it would be better to stick with a whole of market platform to avoid getting tied to Vanguard.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • ValiantSon
    • By ValiantSon 6th Feb 18, 9:14 PM
    • 2,034 Posts
    • 1,885 Thanks
    ValiantSon
    • #6
    • 6th Feb 18, 9:14 PM
    • #6
    • 6th Feb 18, 9:14 PM
    For the tiny amounts of money involved, it would be better to stick with a whole of market platform to avoid getting tied to Vanguard.
    Originally posted by dunstonh
    That would be true if the OP was considering non-Vanguard products, but they clearly state that they aren't. If at some point in the future they decide to, then they can always open an account with a different platform and, as Vanguard Investor don't charge any exit fees, it would be straightforward and cost free.
    • Cactus_Jack
    • By Cactus_Jack 6th Feb 18, 10:46 PM
    • 564 Posts
    • 79 Thanks
    Cactus_Jack
    • #7
    • 6th Feb 18, 10:46 PM
    • #7
    • 6th Feb 18, 10:46 PM
    I've been considering cashing out and rebuying at Vanguard to avoid the charges (30 for me as I have 3 Vanguard funds). However I don't understand if this would destroy the tax-free status I've already built up. With with only around 7k in it I'm not sure it matters all that much
    Last edited by Cactus_Jack; 06-02-2018 at 10:55 PM.
    • dunstonh
    • By dunstonh 7th Feb 18, 9:25 AM
    • 93,038 Posts
    • 60,430 Thanks
    dunstonh
    • #8
    • 7th Feb 18, 9:25 AM
    • #8
    • 7th Feb 18, 9:25 AM
    I've been considering cashing out and rebuying at Vanguard to avoid the charges (30 for me as I have 3 Vanguard funds). However I don't understand if this would destroy the tax-free status I've already built up. With with only around 7k in it I'm not sure it matters all that much
    Originally posted by Cactus_Jack
    ISA transfers mean you do not lose ISA status.

    You need to remember that if you do a cash transfer, you will be out of the market for about a week. The movement in unit prices could be far higher than any cost savings and it could take years or even decades to recover that cost difference.

    And the loss of whole of market status to go to a tied provider could mean you need to do it all over again in the future. For example, HSBC is cheaper and outperforming VLS60. You cant get HSBC on the Vanguard platform. What if another company comes along cheaper again.

    Do not underestimate the importance of whole of market choice. There will be something better come along sooner or later.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • ValiantSon
    • By ValiantSon 7th Feb 18, 10:04 AM
    • 2,034 Posts
    • 1,885 Thanks
    ValiantSon
    • #9
    • 7th Feb 18, 10:04 AM
    • #9
    • 7th Feb 18, 10:04 AM
    ISA transfers mean you do not lose ISA status.

    You need to remember that if you do a cash transfer, you will be out of the market for about a week. The movement in unit prices could be far higher than any cost savings and it could take years or even decades to recover that cost difference.

    And the loss of whole of market status to go to a tied provider could mean you need to do it all over again in the future. For example, HSBC is cheaper and outperforming VLS60. You cant get HSBC on the Vanguard platform. What if another company comes along cheaper again.

    Do not underestimate the importance of whole of market choice. There will be something better come along sooner or later.
    Originally posted by dunstonh
    Lots of platforms are not truly whole of the market, as they don't offer every fund. While this is not generally an issue with Vanguard and HSBC funds, it could be with some others, so it isn't necessarily the case that someone wouldn't have to do a transfer later with them anyway.

    If in the medium term the OP intends to only invest in Vanguard then Vanguard Investor would be a sensible choice. As I said, Vanguard don't charge exit fees. However, the exit fees they are facing from Charles Stanley do call the option into question.

    Global Strategy may be (slightly) outperforming VLS at present, but an investor might still reasonably choose VLS because they prefer the UK weighting, for example, or would rather be in government bonds compared to corporate.
    • dunstonh
    • By dunstonh 7th Feb 18, 10:25 AM
    • 93,038 Posts
    • 60,430 Thanks
    dunstonh
    Lots of platforms are not truly whole of the market, as they don't offer every fund. While this is not generally an issue with Vanguard and HSBC funds, it could be with some others, so it isn't necessarily the case that someone wouldn't have to do a transfer later with them anyway.
    Most of the few remaining fund supermarkets are moving to wrap platforms. There wont be many fund supermarkets left soon.

    Global Strategy may be (slightly) outperforming VLS at present, but an investor might still reasonably choose VLS because they prefer the UK weighting, for example, or would rather be in government bonds compared to corporate.
    You and I know the mechanics of these things but when you have someone looking at saving pennies and not looking at the investments themselves, they are more likely to move around to chase those pennies.

    I have seen it time and again. The provider/investment that is the cheapest or best at a given point in time will not be the best one in the future. Something else will come along. Restricting yourself to one fund house is a heavy limitation.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • The Reaper
    • By The Reaper 7th Feb 18, 4:19 PM
    • 344 Posts
    • 105 Thanks
    The Reaper
    I have seen it time and again. The provider/investment that is the cheapest or best at a given point in time will not be the best one in the future. Something else will come along. Restricting yourself to one fund house is a heavy limitation.
    Originally posted by dunstonh

    Really appreciate the advice.

    Things may well change in the future and I may look to buy other funds. Therefore I think staying put makes sense, especially given the small amount I would actually save.

Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

250Posts Today

4,842Users online

Martin's Twitter