Hi! I just want to clarify a point regarding the fees. They will be taken proportionally, meaning the account with the largest balance will pay the largest portion of the fees.
@@andrewp7497 It means the less fees you pay the greater your returns, if you don't pay the fees you get to keep the returns, i.e. you get what you don't pay for.
I’ll be leaving. Like Damien said it’s a dick move, and I believe they should feel the repercussions of it by having customers leave their platform. Prior to this I would never have considered leaving to be honest as I felt like they provided the best of both worlds with an established, secure brand that you pay a small fee for. That has now changed
I'll be leaving. They could have had a sliding scale with the fees e.g. £0-£10k £1/month, £10k-£20k £2/month and so on. I spoke to them earlier today about it and the guy from Vanguard pretty much said yeah i can see why you would leave us.
It's a strange one. I get they're probably losing money on these low value accounts but those low value accounts will potentially become the next generation of high value accounts. So it seems like they're giving up future income for lower admin costs today. Maybe they could've waived the minimum charge for anyone making a regular direct debit payment or something. I don't know.
I've invested with Vanguard for the last 5 years. I was quite stunned to receive their email about the charge increases. It was short, blunt and gave no real explanation as to why. My income is low, but I do invest regularly and have slowly built up my holdings with Vanguard. I am though way, way, below the £32000 figure, and that £4 a month just looks like price gouging, and a PR disaster..., if that is, they are bothered about PR. I'll be looking at alternatives in very short order.
I'm selling up. I've had my initial £500 trial in there. Over about 6 years, I have made £160 (I haven't really paid attention to it compared to my other accounts). It was costing me about £0.21 a month to hold this. With this £4 fee change, within 3.6 years, I would lose all my profits made over that time (possibly more due to not having as much invested over time). Seems like they just don't want customers or hope people aren't aware of the changes. Thanks to you and Damien for pointing it out. I would never have known as I barely read those sorts of emails.
Just got the email and rushed on RUclips and was glad to see a video from you guys. Since I only started last month and have very little in there I think I'll be looking to move to another service and would love to see a video from you about what are the better alternatives. Thanks for making this video and posting it so quickly!!!
If you're starting a SIPP now, that's fine. If you already have a SIP with Vanguard, InvestEngine is currently no use as they don't (yet) accept SIPP transfers in.
I've decided to close my account with Vanguard, including my SIPP which I was going to transfer to again in a couple of days. Now I am transferring it away. A company that makes moves like this doesn't deserve (however small) business I bring them. A real shame they've done this.
I’m going to stay put for the moment with vanguard and see if any rival platforms respond. Have been waiting for the rumoured trading 212 sipp to appear, which may entice me to move everything to trading 212 should this become available soon.
I just don't understand why they have done this - especially splitting the fees between your accounts, which seems only to harm the investor's tax efficiency without adding anything to Vanguard's profits, surely? Why not allow customers to choose which accounts their fees are taken from? I switched my SIPP from Aviva to Vanguard this year primarily because their fees were so competitive. As a company that have made low fees and accessibility for small investors their big selling points I think they've shot themselves in the foot with this. At the moment this will have quite a small financial impact on me but hmm.... will I stay with them on principle? Not sure.
We will try to work on this as soon as we can but we have just overhauled our website page for this: financialinterest.com/best-stocks-and-shares-isa/ Hope it helps!
@FinancialInterestcom I would also enjoy a video on this. I've only just started investing in Vanguard stocks and shares this year and I'm not sure where or how to move!
The small time investors of today are the large holding investors of tomorrow. Seems incredibly short sighted, people who are at the start of their invest journey (like me) are very likely to jump ship or just not join the platform in the first place.
I thought better of Vanguard. I only started investing this year. I like there simple layout on both the website and the app. If I had more than £32k invested I probably would have stayed. T212 here we come
Odd timing as well given InvestEngine have just removed the charges for their SIPP. Although, IE has no drawdown apparatus in place and isn't currently accepting transfers. But if you were new to SIPPs and had plenty of time before drawdown, IE would be the place to go.
If they were taking £4 from my cash account, I may have swallowed a bitter pill, but taking it away from my generated growth? Absolutely not. I'm looking to put my investments elsewhere.
Just started investing with vanguard. I intended on putting £200 a month into VWRP and it’s my third month. I’m now thinking of switching to invest engine for the fractional shares and avoiding this fee. Hopefully that’s not a bad move. 🤷♂️
Transfers these days should take days and not weeks like it used to. The only exception should be if you have funds that are priced monthly and you missed the cut off but I don’t think there are many of those about these days - can’t remember the last time I saw one
Have been loyal for years - although unimpressed with a few things e.g. UK vs US fees, lack of app (although they have released their crappy one now). I pulled out all my ISA investments last year… was happy keeping my SIPP there - not anymore! Bye Vanguard!
I’m leaving Vanguard because of these new fees. I have a question though if you don’t mind, Trading 212 doesn’t allow me to switch my FTSE Global All Cap fund across, so what’s the most efficient way to pull money out of the Vanguard account and is there any pitfalls I should be aware of? From what I can see the Vanguard FTSE All-World UCITS ETF is the closest I can get to the All Cap fund?
Well... that's a tough one, methinks. From their beginnings in the UK Vanguard was not planning on catering to people who could only afford to invest little sums of money each month, as evidenced by the fact that the minimum payment by debit card was £500 and the Direct Debit was needed to be for £100/month. My SIPP fee is currently £21/year - with the new fee this will more than double to £48/year - for a fee of over 0.30%. But I am also in the position that I could move money into Vanguard which would immediately increase the invested balance to the point that the fee stays the same. As T212 doesn't offer a SIPP yet (pushed into at least Q1/2025) and IE doesn't allow transfer-Ins yet.... Decisions, decisions
I'm glad I ditched my life strategy in the summer now. Didn't like the way things were going through customer service and interviews with their fund managers.
I would have thought most people in the UK at least have bought their Vanguard funds via a separate platform anyway. I have a SIPP and ISA in ii but after looking at your fees table there, will think about transferring them in Jan after I have received my introductory cashback.
Like a few others in the comments I’m now considering moving my S&S ISA to T212. Once having a £0 balance on Vanguard would I then need to close the account entirely to avoid a pointless £4 a month fee? Apologies if I’ve missed something or if this is a stupid question.
It's still a percentage it's just the minimum charge is £4 a month (I suspect it will actually be £12 a quarter) So once you have sold your investments and it's sat in cash there will be no fees. You can then set up a transfer. Or alternatively just start the transfer now. You could leave a few pence in cash in your account if you plan on using Vanguard again in the future to save setting it all up again.
Can definitely look at doing this, e.g. 'How to transfer to another broker' ? Side note it's quite easy you can just join the other broker and request a transfer in with them, providing they support transfers from the broker you're currently with.
They're trying to push away the plebs. Really sad that this is the approach they're going for. As a small investor, I'll be looking elsewhere from now on.
I was contemplating moving my SIPP to InvestEngine, but I think IE is limited if I want to draw down any cash (I'm in my early 50s, so am contemplating options in the near-ish future)... that and the fact that Vanguard are a massive company (and safe!)...
Started in Jan 24'. Happy with it as it was fully automated. As you mentioned from 100£, 4£ is a 4% which is a lot. I will be selling and going to investengine.
I am leaving, this will cost them in the long run when people with small investment pots start elsewhere and never move to Vanguard when they have bigger pots later in life.
That's me gone then. I wish it was possible to transfer my SIPP to InvestEngine, but it's been a year since last update about this :( Do you guys have any 'non-financial advice' on this? :D
I stick with Vanguard 100% - investing is long term and I prefer investing with a very reputable platform which makes profits therefore sustainable business model.
Unfortunately, that £4 a month compounded over a long period will make a huge difference the the fund final value. Especially if you are at the start of the investing journey.
@ 48 a year it would give someone with an excellent average market return of 10% over 10 years , 826£ and of course there is a fee even now so this amount is much less in reality. We can argue that is a lot but is not a lot really and having our future and really hard earned money with an excellent company like Vanguard is worth much more than that. I don’t work for Vanguard btw:-)
Started looking at the alternatives, some of them have other costs e.g. charges per transaction, which means people using their SIPPs and ISAs in a typical way (paying in each month) will have additional costs.
I think they have had to put their fees up because they keep having to pay out compensation for their crap complaints handling. I,m on my third complaint in four years.
I used it and it was a nightmare to connect to my bank let alone get regular payments. I jumped right off as quickly as I joined. The platform (and new app) need a complete re architecture
A step-by-step guide to help transfer from Vanguard Life Strategy to Trading 212 would be super helpful. It gets complicated from the No. of Shares and Average Purchase price screens. I’m sure this is a really common scenario and would therefore make a popular video!
I have just this month opened a SIPP with £500 with Vanguard. Is there a better recommendation? I need to be able to pay into it from my Ltd Company. Thanks
We have a SIPP comparison here which also lists those that accept Employer contributions (e.g. businesses can pay in): financialinterest.com/best-sipp/
If I have a junior isa for my little one that is way under this threshold under my dashboard and my own VG s&s ISA that’s over this threshold does that count as one account for the fee purposes or will my daughter be getting stung?
Like a lot of others it seems, I'll also be leaving the platform. As a small investor who only started out a couple of years ago, I'm really disappointed to see this change, which is seemingly aiming to at sort the wheat from the chaff (it's me, I'm the chaff) and putting all their energy into their big time investors. Kind of bummed out about this - was starting to feel confident in my investments and now it's back to the drawing board...
At this stage, what platform is best suited for a JISA? I’ve got 2 with Vanguard and it would be useful to know if there are more cost effective options out there. Cheers!
Had my pension with St James place for 10 years. Vanguard can treble their fees and halve their funds performance and I'd still be better off. Fees are proportionate and I'd pay a little extra for trust and I certainly wouldn't trust some providers with my pension. My isa and gia are with T212 and have vanguard funds in them as it's cheaper. Be careful people don't go watching this and moving pensions to another provider that charges less and performs way less. It's a balancing act fees vs performance
100% costs aren’t everything. It’s just that Vanguard has many very well established long-term competitors (e.g. the likes of HL, Fidelity, AJ Bell etc) that offer similar perceived trustworthiness at a much lower price
I've sold my whole portfolio today. It's only 8k, but that's all I have. As soon as it clears, it will going into Trading 212. Didn't want to wait to switch as this can take over a month
I’ll be leaving which is a massive shame. I was always a big advocate of vanguard but I’d like to think that if they start to see a big shift of customers leaving then they’ll change. Or maybe this is their way of getting rid of lower earning customers and keeping the higher earner (and more profitable) customers? Thanks for making this video guys as I saw the email today but didn’t fully register what it meant until just now
Me too, a ton of us at work are thoroughly unimpressed with that email, to be honest. I'll direct them to this video (and more importantly, the comments of the people).
Everyone has to start some place. Low income accounts become the high ones in the future. My wife's account is affected, she took some convincing to set a SIPP up and this in a way confirms what she already believed that these companies cant be trusted. I won't be affected as much as I'll be over the £32000 in my pension soon but I'm going to move my SIPP just on principle.
Vanguard clients were staying for its reputability and expecting lower fees at least starting with their own products. I am out. Let me know if anyone knows any limitation of re opening an account after closing it with them.
I have over 32k in a account with vanguard, and wanted to start a junior isa with them in the same account for my daughter. Does my 32k count towards to the total in that case. So I just pay one lot of fees? Or does her jisa also pay £4 a month fee.
Yep trading 212 are gonna take over pretty much any trading platform in the uk, cashback on their debit cards, flexible/daily interest on cash isa and now cheaper s&s isa fees
Vanguard in the US is effectively a 'non-profit' owned by the US investors, whereas Vanguard subsidiaries in the UK, Australia etc. are 'for profit' branches that are also operating in a smaller market, so localization costs are relatively higher per investor in those markets vs the US. Hardly a surprise. ps. there is no reason why the fixed cost per account should not be paid by all investors -- the fact that it is relatively higher for a 'small investor' just means those people should use one of the many other low/no cost investment platforms while they start saving and investing. If the Vanguard base fees are too high, use a different platform. ps. Those saying "well, I'll leave because of the small monthly fixed admin fee" are doing exactly as intended -- the whole point of putting in a modest fixed monthly fee is to cull all those myriad tiny accounts that actually cost more to maintain than the % fees generate. Vanguard is not a charity, and larger Vanguard accounts have no moral obligation to accept rent-seeking behaviour by smaller investors.
@@AuxHex Well paying FNZ is probably quite a fee. I guess they agreed a fee per user with Vanguard but for the people with low balances it's not worth it for Vanguard (maybe they weren't expecting lower end users when they originally set up the UK agency model. Which is why there is essentially a minimum fee. They clearly don't want to get caught up in the race to the bottom on fees.
@@AuxHexSimply not true. There are both fixed costs (eg website, app development and maintenance, regulatory compliance, reporting etc) and per acct costs (eg. running a batch autoinvestment job) that cost money per account. So there is a base level of fixed 'admin' costs per account that should be covered by a fixed monthly fee. I have no idea if the admin fee is 'cost recovery' or a source of profit (most profit would come from the % AUM fees), but it is simply a fantasy to say that 'there are no admin expenses on Vanguard side'...
@wealthelife IT running costs do not depend on an amount of users, because Vanguard is mostly a static system (as in it's not a high frequency trading system with many users). Their fees just go straight into their pockets. The whole point of Vanguard is that there are no running fees compared to a human managed broker service.
@@wealthelife I already replied to this yesterday but it seems to have disappeared. Obviously Vanguard in the UK is an agency model and is run by FNZ. So one presumes Vanguard is paying FNZ a fee per user. So the ones with low balances don't make enough revenue to be worth it. It's also likely many new users are unsure of many things so use customer services proportionately more.
Need to transfer my life strategy 100 now but trading 212 do not seem to facilitate it. Ive now requested my fund transfer to life strategy 80 so that I can transfer it. Its the only logical thing for me to do.
Ill for sure be leaving, i have about £10000 invested started last year but this seems like a no brainer to move to somewhere else. Any good recs? T212 is good? at least from what i gathered on Damians videos for a UK user. Edit: Is it simple to transfer from one platform to another as well? Given its just an Isa i assume there are no fees just to transfer from one to another, but i am a newbie invester here, i mostly have just been doing £100 a month after intially openin my account with vanguard lst year.
It depends on the type of account you're looking for, we've linked some guides in the description that compare fees across brokers of various account types
Not great, I really like the VAFTGAG fund with over 7,000 stocks for my pension. However, I’m definitely considering invest engine when they finally allow transfers.
Bear in mind that, if any of your Vanguard holdings are in funds rather than ETFs, you won't be able to transfer them in specie, as Trading 212 doesn't offer funds.
How does the changes affect an investment in trading 212? If your holding let's say VWRL in trading 212 (Damien's and T's video on how to invest). Are Trading 212 the vanguard customer and we the app users are the customer of trading 212?
Hi! I just want to clarify a point regarding the fees. They will be taken proportionally, meaning the account with the largest balance will pay the largest portion of the fees.
"In investing, you get what you don't pay for. Costs matter." John C. Bogle founder of The Vanguard Group
The little book of investing is what got me into Vanguard.
Now using those principals I'm out...
They take 70BPS spreads on money market and 300BPS spreads on cash. There are fees everywhere, you just don't see it
You were the chosen one Vanguard. It was said you would destroy the Sith, not join them!
Don't understand that quote!
@@andrewp7497 It means the less fees you pay the greater your returns, if you don't pay the fees you get to keep the returns, i.e. you get what you don't pay for.
One step forward with the app, then 10 steps back with the fees. I’m out.
I’ll be leaving. Like Damien said it’s a dick move, and I believe they should feel the repercussions of it by having customers leave their platform. Prior to this I would never have considered leaving to be honest as I felt like they provided the best of both worlds with an established, secure brand that you pay a small fee for. That has now changed
Yep same with me I would have stayed no matter how large my account value got. I don’t mind paying some fees but this is too much.
I’m leaving, very disappointing and goes against what John Bogle stood for
Yeah but who doesn't like more cash than you need?
CEOs probably
Same here, where would be a better platform?
I'll be leaving. They could have had a sliding scale with the fees e.g. £0-£10k £1/month, £10k-£20k £2/month and so on. I spoke to them earlier today about it and the guy from Vanguard pretty much said yeah i can see why you would leave us.
Where are you thinking of going ?
It's a strange one. I get they're probably losing money on these low value accounts but those low value accounts will potentially become the next generation of high value accounts. So it seems like they're giving up future income for lower admin costs today. Maybe they could've waived the minimum charge for anyone making a regular direct debit payment or something. I don't know.
Totally agree like fidelity do
I've invested with Vanguard for the last 5 years. I was quite stunned to receive their email about the charge increases. It was short, blunt and gave no real explanation as to why. My income is low, but I do invest regularly and have slowly built up my holdings with Vanguard. I am though way, way, below the £32000 figure, and that £4 a month just looks like price gouging, and a PR disaster..., if that is, they are bothered about PR. I'll be looking at alternatives in very short order.
Disgraceful, for a small investor is a punch in the stomach
Goodbye Vanguard!!!…Hello Trading 212…
I'm selling up. I've had my initial £500 trial in there. Over about 6 years, I have made £160 (I haven't really paid attention to it compared to my other accounts). It was costing me about £0.21 a month to hold this.
With this £4 fee change, within 3.6 years, I would lose all my profits made over that time (possibly more due to not having as much invested over time).
Seems like they just don't want customers or hope people aren't aware of the changes. Thanks to you and Damien for pointing it out. I would never have known as I barely read those sorts of emails.
Just got the email and rushed on RUclips and was glad to see a video from you guys.
Since I only started last month and have very little in there I think I'll be looking to move to another service and would love to see a video from you about what are the better alternatives.
Thanks for making this video and posting it so quickly!!!
Invest Engine has a free Sipp. I will start there and may e move back to Vanguard after 32k
Just in time when Invest Engine removed their SIPP fee entirely
I have an isa account with InvestEngine, seriously considering transferring my SIPP over to them too
Just waiting for the transfer
If you're starting a SIPP now, that's fine. If you already have a SIP with Vanguard, InvestEngine is currently no use as they don't (yet) accept SIPP transfers in.
Was going to open a SIPP with Vanguard.
Given this news, I think I'll have a re-think
John Bogle would be turning right now.
I’m glad he is not here to see it his principals are not being followed 😢
Leaving Vanguard and also advised all the people I recommend Vanguard to, to do the same.
Opened an account at the weekend. Set up my £100 a month payment. Read the email today and cancelled my payment. Moving my business to T212.
Crazy move by Vanguard! That's me out 😂
Thanks for uploading so quickly!
I've decided to close my account with Vanguard, including my SIPP which I was going to transfer to again in a couple of days. Now I am transferring it away. A company that makes moves like this doesn't deserve (however small) business I bring them. A real shame they've done this.
I can't believe they've done this.
I’m going to stay put for the moment with vanguard and see if any rival platforms respond. Have been waiting for the rumoured trading 212 sipp to appear, which may entice me to move everything to trading 212 should this become available soon.
I just don't understand why they have done this - especially splitting the fees between your accounts, which seems only to harm the investor's tax efficiency without adding anything to Vanguard's profits, surely? Why not allow customers to choose which accounts their fees are taken from?
I switched my SIPP from Aviva to Vanguard this year primarily because their fees were so competitive. As a company that have made low fees and accessibility for small investors their big selling points I think they've shot themselves in the foot with this. At the moment this will have quite a small financial impact on me but hmm.... will I stay with them on principle? Not sure.
Have been with Vanguard for 4 years, it’s where I first started investing. I will definitely be looking to move my S&S ISA elsewhere. Huge shame
Could you do s video on the alternative places for a stocks and shares ISA?
We will try to work on this as soon as we can but we have just overhauled our website page for this: financialinterest.com/best-stocks-and-shares-isa/
Hope it helps!
@FinancialInterestcom I would also enjoy a video on this. I've only just started investing in Vanguard stocks and shares this year and I'm not sure where or how to move!
The small time investors of today are the large holding investors of tomorrow. Seems incredibly short sighted, people who are at the start of their invest journey (like me) are very likely to jump ship or just not join the platform in the first place.
I thought better of Vanguard. I only started investing this year. I like there simple layout on both the website and the app. If I had more than £32k invested I probably would have stayed. T212 here we come
Odd timing as well given InvestEngine have just removed the charges for their SIPP. Although, IE has no drawdown apparatus in place and isn't currently accepting transfers. But if you were new to SIPPs and had plenty of time before drawdown, IE would be the place to go.
Please give alternatives and how we move our isa to another platform / provider. Love your videos
Hope this helps financialinterest.com/best-stocks-and-shares-isa/
If they were taking £4 from my cash account, I may have swallowed a bitter pill, but taking it away from my generated growth? Absolutely not. I'm looking to put my investments elsewhere.
You can set it up to come from your current account
Just started investing with vanguard. I intended on putting £200 a month into VWRP and it’s my third month. I’m now thinking of switching to invest engine for the fractional shares and avoiding this fee. Hopefully that’s not a bad move. 🤷♂️
What about those who start a transfer out but it’s not processed in time for when the new fees kick in :(
Yes i also dont know the answer to this. It shouldnt legally be possible to do tbis
Transfers these days should take days and not weeks like it used to. The only exception should be if you have funds that are priced monthly and you missed the cut off but I don’t think there are many of those about these days - can’t remember the last time I saw one
@@jonathanburson4994 unfortunately there are several horror stories about transfers out from Vanguard if you search online
Have been loyal for years - although unimpressed with a few things e.g. UK vs US fees, lack of app (although they have released their crappy one now).
I pulled out all my ISA investments last year… was happy keeping my SIPP there - not anymore!
Bye Vanguard!
I’m leaving Vanguard because of these new fees. I have a question though if you don’t mind, Trading 212 doesn’t allow me to switch my FTSE Global All Cap fund across, so what’s the most efficient way to pull money out of the Vanguard account and is there any pitfalls I should be aware of? From what I can see the Vanguard FTSE All-World UCITS ETF is the closest I can get to the All Cap fund?
A video about how to leave vanguard (or any platform) would be really helpful! 👍🏼
Well... that's a tough one, methinks. From their beginnings in the UK Vanguard was not planning on catering to people who could only afford to invest little sums of money each month, as evidenced by the fact that the minimum payment by debit card was £500 and the Direct Debit was needed to be for £100/month. My SIPP fee is currently £21/year - with the new fee this will more than double to £48/year - for a fee of over 0.30%. But I am also in the position that I could move money into Vanguard which would immediately increase the invested balance to the point that the fee stays the same. As T212 doesn't offer a SIPP yet (pushed into at least Q1/2025) and IE doesn't allow transfer-Ins yet.... Decisions, decisions
I'm glad I ditched my life strategy in the summer now. Didn't like the way things were going through customer service and interviews with their fund managers.
I would have thought most people in the UK at least have bought their Vanguard funds via a separate platform anyway. I have a SIPP and ISA in ii but after looking at your fees table there, will think about transferring them in Jan after I have received my introductory cashback.
This makes no sense at all. Low fees for small amounts and a simple reliable platform was what attracted me to vanguard.
Yeah it does seem very odd to pile such a big fee increase on smaller portfolios
Looks like plebs aren't profitable
Like a few others in the comments I’m now considering moving my S&S ISA to T212. Once having a £0 balance on Vanguard would I then need to close the account entirely to avoid a pointless £4 a month fee? Apologies if I’ve missed something or if this is a stupid question.
It's still a percentage it's just the minimum charge is £4 a month (I suspect it will actually be £12 a quarter) So once you have sold your investments and it's sat in cash there will be no fees. You can then set up a transfer. Or alternatively just start the transfer now.
You could leave a few pence in cash in your account if you plan on using Vanguard again in the future to save setting it all up again.
@ thank you, this helps !
Was about to set up a SIPP with them in Jan but now re looking at who is best for just a small SIPP of £100 a month. Thank you for the video.
I’ll be leaving but as someone who is new to online platforms like this it would be helpful for you to do a video on exactly how best to leave them.
Can definitely look at doing this, e.g. 'How to transfer to another broker' ?
Side note it's quite easy you can just join the other broker and request a transfer in with them, providing they support transfers from the broker you're currently with.
They're trying to push away the plebs. Really sad that this is the approach they're going for. As a small investor, I'll be looking elsewhere from now on.
Trading212 is okay imo. I just wish they had a wider selection of etfs
I was contemplating moving my SIPP to InvestEngine, but I think IE is limited if I want to draw down any cash (I'm in my early 50s, so am contemplating options in the near-ish future)... that and the fact that Vanguard are a massive company (and safe!)...
Could move my ISA to T212, but I'm not sure of the best place for my SIPP now... Vanguard fees should be going down, not up!
Started in Jan 24'. Happy with it as it was fully automated. As you mentioned from 100£, 4£ is a 4% which is a lot. I will be selling and going to investengine.
Great job Vanguard, glad I left years ago!
I am leaving, this will cost them in the long run when people with small investment pots start elsewhere and never move to Vanguard when they have bigger pots later in life.
I’ll be off. Where is the best place to buy the FTSE Global All Cap Index Accumulation (VAFTGAG)?
Leaving vanguard as soon as I can. Ridiculous change. Thanks for the video.
Pissed off. Will be selling
That's me gone then. I wish it was possible to transfer my SIPP to InvestEngine, but it's been a year since last update about this :( Do you guys have any 'non-financial advice' on this? :D
I stick with Vanguard 100% - investing is long term and I prefer investing with a very reputable platform which makes profits therefore sustainable business model.
Unfortunately, that £4 a month compounded over a long period will make a huge difference the the fund final value. Especially if you are at the start of the investing journey.
@ 48 a year it would give someone with an excellent average market return of 10% over 10 years , 826£ and of course there is a fee even now so this amount is much less in reality. We can argue that is a lot but is not a lot really and having our future and really hard earned money with an excellent company like Vanguard is worth much more than that. I don’t work for Vanguard btw:-)
Started looking at the alternatives, some of them have other costs e.g. charges per transaction, which means people using their SIPPs and ISAs in a typical way (paying in each month) will have additional costs.
Our SIPP comparison guide factors this in and uses the cheapest ongoing investment method with each
I’m a novice and invest through Vanguard in to the FTSE All Cap Global Index Fund - is there a good alternative competitor to move to?
can't get to their site today. Vanguard app doesn't work either. Probably a lot of orders to sell everything. 😮
I think they have had to put their fees up because they keep having to pay out compensation for their crap complaints handling. I,m on my third complaint in four years.
I got £100 for poor service just last Friday!
@ Make a complaint to the FSO …their minimum award is £500.
I used it and it was a nightmare to connect to my bank let alone get regular payments. I jumped right off as quickly as I joined. The platform (and new app) need a complete re architecture
A step-by-step guide to help transfer from Vanguard Life Strategy to Trading 212 would be super helpful. It gets complicated from the No. of Shares and Average Purchase price screens. I’m sure this is a really common scenario and would therefore make a popular video!
I’m out. I liked the company and what they stood for. This betrays it. Voting with my feet
Bye Vanguard. Shame because it was good!
I have just this month opened a SIPP with £500 with Vanguard. Is there a better recommendation? I need to be able to pay into it from my Ltd Company. Thanks
We have a SIPP comparison here which also lists those that accept Employer contributions (e.g. businesses can pay in): financialinterest.com/best-sipp/
@FinancialInterestcom Thank you!
If I have a junior isa for my little one that is way under this threshold under my dashboard and my own VG s&s ISA that’s over this threshold does that count as one account for the fee purposes or will my daughter be getting stung?
@@lockelamora7788 New fee doesn't apply to Jnr. ISA or SIPP.
Fee won't apply to JISA according to email they sent out.
I'm literally exactly the same as you. But if jias aren't being affected then I will remain with vanguard for now.
Like a lot of others it seems, I'll also be leaving the platform.
As a small investor who only started out a couple of years ago, I'm really disappointed to see this change, which is seemingly aiming to at sort the wheat from the chaff (it's me, I'm the chaff) and putting all their energy into their big time investors.
Kind of bummed out about this - was starting to feel confident in my investments and now it's back to the drawing board...
At this stage, what platform is best suited for a JISA? I’ve got 2 with Vanguard and it would be useful to know if there are more cost effective options out there. Cheers!
Hope this helps financialinterest.com/best-junior-stocks-shares-isa/
Had my pension with St James place for 10 years. Vanguard can treble their fees and halve their funds performance and I'd still be better off. Fees are proportionate and I'd pay a little extra for trust and I certainly wouldn't trust some providers with my pension. My isa and gia are with T212 and have vanguard funds in them as it's cheaper. Be careful people don't go watching this and moving pensions to another provider that charges less and performs way less. It's a balancing act fees vs performance
100% costs aren’t everything. It’s just that Vanguard has many very well established long-term competitors (e.g. the likes of HL, Fidelity, AJ Bell etc) that offer similar perceived trustworthiness at a much lower price
Been with Vanguard just over a year but will be leaving as I'm under the threshold and currently don't pay much more than that on a quarterly basis.
I've sold my whole portfolio today. It's only 8k, but that's all I have. As soon as it clears, it will going into Trading 212.
Didn't want to wait to switch as this can take over a month
I’ll be leaving which is a massive shame. I was always a big advocate of vanguard but I’d like to think that if they start to see a big shift of customers leaving then they’ll change. Or maybe this is their way of getting rid of lower earning customers and keeping the higher earner (and more profitable) customers? Thanks for making this video guys as I saw the email today but didn’t fully register what it meant until just now
Me too, a ton of us at work are thoroughly unimpressed with that email, to be honest. I'll direct them to this video (and more importantly, the comments of the people).
They don’t have an advantage for high income accounts or low really strange.
Everyone has to start some place. Low income accounts become the high ones in the future. My wife's account is affected, she took some convincing to set a SIPP up and this in a way confirms what she already believed that these companies cant be trusted. I won't be affected as much as I'll be over the £32000 in my pension soon but I'm going to move my SIPP just on principle.
Vanguard clients were staying for its reputability and expecting lower fees at least starting with their own products. I am out. Let me know if anyone knows any limitation of re opening an account after closing it with them.
I have over 32k in a account with vanguard, and wanted to start a junior isa with them in the same account for my daughter. Does my 32k count towards to the total in that case. So I just pay one lot of fees? Or does her jisa also pay £4 a month fee.
T212 >
They don't have SIPP
@@Thaitanium73 Q1 next year
Very disappointed. Will be transferring to 212 now
Yep trading 212 are gonna take over pretty much any trading platform in the uk, cashback on their debit cards, flexible/daily interest on cash isa and now cheaper s&s isa fees
Shame they don't have a SIPP yet.
Vanguard in the US is effectively a 'non-profit' owned by the US investors, whereas Vanguard subsidiaries in the UK, Australia etc. are 'for profit' branches that are also operating in a smaller market, so localization costs are relatively higher per investor in those markets vs the US. Hardly a surprise.
ps. there is no reason why the fixed cost per account should not be paid by all investors -- the fact that it is relatively higher for a 'small investor' just means those people should use one of the many other low/no cost investment platforms while they start saving and investing. If the Vanguard base fees are too high, use a different platform.
ps. Those saying "well, I'll leave because of the small monthly fixed admin fee" are doing exactly as intended -- the whole point of putting in a modest fixed monthly fee is to cull all those myriad tiny accounts that actually cost more to maintain than the % fees generate. Vanguard is not a charity, and larger Vanguard accounts have no moral obligation to accept rent-seeking behaviour by smaller investors.
There are no admin expenses on Vanguard side.
@@AuxHex Well paying FNZ is probably quite a fee. I guess they agreed a fee per user with Vanguard but for the people with low balances it's not worth it for Vanguard (maybe they weren't expecting lower end users when they originally set up the UK agency model. Which is why there is essentially a minimum fee.
They clearly don't want to get caught up in the race to the bottom on fees.
@@AuxHexSimply not true. There are both fixed costs (eg website, app development and maintenance, regulatory compliance, reporting etc) and per acct costs (eg. running a batch autoinvestment job) that cost money per account. So there is a base level of fixed 'admin' costs per account that should be covered by a fixed monthly fee. I have no idea if the admin fee is 'cost recovery' or a source of profit (most profit would come from the % AUM fees), but it is simply a fantasy to say that 'there are no admin expenses on Vanguard side'...
@wealthelife IT running costs do not depend on an amount of users, because Vanguard is mostly a static system (as in it's not a high frequency trading system with many users). Their fees just go straight into their pockets.
The whole point of Vanguard is that there are no running fees compared to a human managed broker service.
@@wealthelife I already replied to this yesterday but it seems to have disappeared.
Obviously Vanguard in the UK is an agency model and is run by FNZ. So one presumes Vanguard is paying FNZ a fee per user. So the ones with low balances don't make enough revenue to be worth it. It's also likely many new users are unsure of many things so use customer services proportionately more.
Need to transfer my life strategy 100 now but trading 212 do not seem to facilitate it. Ive now requested my fund transfer to life strategy 80 so that I can transfer it. Its the only logical thing for me to do.
I'll be transferring to Invest Engine
Poor interest rate for deposits and now more fee's. This platform is getting out of control ever since John Bogle died.
I'm leaving. Where should I go?
So in other words if you haven’t quite got 32,000 in your portfolio just top it up to that or just wait until it reaches that then your all good .
Yes if you have 32k you’d be no worse off than before, though their costs are still on the higher side
Shocking from Vanguard.
Im definitely moving to trading 212. This is really shitty of them.
I setup an invest-engine SIPP today. Unfortunately didn't realise that you cannot transfer-in yet. So IE is also a no-go for now.
Is this a conscious effort to get rid of smaller investors? I’m out…
I will stop recommending I will move to 212 and tell my sons to move to 212 also
Definitely not a nice move and they might suffer from many small investors leaving the platform.
Clearly vanguard just want to get rid of small retail investors. I'm not with vanguard. I prefer holding socks. Vanguard is too expensive for me.
I was about to open a JSIPP but not now
Ill for sure be leaving, i have about £10000 invested started last year but this seems like a no brainer to move to somewhere else. Any good recs? T212 is good? at least from what i gathered on Damians videos for a UK user.
Edit: Is it simple to transfer from one platform to another as well? Given its just an Isa i assume there are no fees just to transfer from one to another, but i am a newbie invester here, i mostly have just been doing £100 a month after intially openin my account with vanguard lst year.
It depends on the type of account you're looking for, we've linked some guides in the description that compare fees across brokers of various account types
Not great, I really like the VAFTGAG fund with over 7,000 stocks for my pension. However, I’m definitely considering invest engine when they finally allow transfers.
For someone with 25k GBP is it worth moving to 212?
at 25k balance your annual fee would increase from £37.50 to £48
That just seems greedy
Time to switch the bulk of my isa over too trading 212 I was using both but this is the final straw
I guess I will move all my ISA investments from Vanguard to Trading 212
Bear in mind that, if any of your Vanguard holdings are in funds rather than ETFs, you won't be able to transfer them in specie, as Trading 212 doesn't offer funds.
I’m out out
I’ll be looking at alternatives.
How does the changes affect an investment in trading 212?
If your holding let's say VWRL in trading 212 (Damien's and T's video on how to invest). Are Trading 212 the vanguard customer and we the app users are the customer of trading 212?
It doesn’t affect them at all the fund fees remain the same. This fee is for users of the Vanguard platform itself.
Damo
yep great video, surprised to see them penalize world/european investors, interesting move.Will be moving to Fidelity or Trading 212
Out.
Think Dodl by a j bell is cheaper for me now.
Out for me
It’s time to shop around for a better deal with another platform