@woooooooo9061 I trust that they are regulated and authorised by the FCA and have a UK entity. They are growing so fast the regulator is all over them.
Hi Damien, I have a question. When investing with Vanguard (Regular payments of £1K a month), I have only noticed now that I have been accumulating uninvested amount in cash (eg, my £500 buys me 4 shared of VWRP and the rest stays in the account as cash). I thought Vanguard would use that money in the next monthly cycle but they don't and now I have 5K of uninvested cash and lost opportunity. Do you think I have done something wrong or that's actually how it works on Vanguard?
I don't like what the companies are doing, but virtually everywhere else in life poor ppl get screwed with higher prices. What made you think the stock markets were any different? (Think loans, mortgages, savings on goods when buying things in bulk)
I’m a customer but not affected, however I think it’s pretty shitty of Vanguard to do this. It will definitely make me less sticky as a customer as it’s killed any loyalty to the brand that I had
Vanguard was literally the company that got me started 10 years ago in large part due to John C. Bogle core mission to provide small investors with a low fee platform. This is very sad to see that this change completely goes against what he stood for..
They are loosing all of their small investors who will become big investors over time. They did the business exercise called ‘how to kill the business’ then selected the best option. I have over £32k with them but I am kicking them into touch on a principal basis. Jack will be turning in his grave.
I agree. Send a message…I’m moving my SIPP and ISA to IE or Trading 212, and will do the same for my family (who only opened Vanguard on my advice). Got to do it, my fees are not changing, but who knows who is next.
Thanks so much for posting, Damien; I totally missed Vanguard's email. I've been with Vanguard for a year now after thoroughly researching where to put my ISA. I now have to go through this process again, but rather this than being shafted in a months' time. Thank you so much for the warning.
I was waiting to hear your insight on this and totally agree with what you’ve said. I was so disappointed as sadly, I am one of those who are punished with a “poor fee”. I don’t have bank of mum and dad to rely on and I’m proud of the small amount of money I’ve managed to squirrel together over the years. Most of us working folk are short on time to research the next best place to invest; your videos are incredibly helpful in that respect - thanks for your honesty as always Damien.
I left vanguard UK recently once I found out. Its essentially a poor person tax. You could essentially move from vanguard to another low fee/ no fee platform and buy into vanguards funds.
No, it's the poor people who are up in arms about this and moving their tiny portfolios to try and save a few pounds a year. The rich think differently and don't seem to care about fees. How else do you explain the success of St James's Place, which charges exorbitant fees and generates below average performance?
This feels like a business shift to move people out who have lower fund values. Similar to insurers giving large quotes to people who they dont want to insure
Exactly, they don’t want those accounts, maybe they don’t want to hire more staff to support the accounts, so they are trying to get rid of 25% of investors that give them headaches.
I think the same, as my brokerage added fees for sub-$10k accounts last year to similar outcry. Based on what I see on their Reddit forum, it is the smallest accounts that demand the most support, and the brokerage was started as a “robo-advisor” model with minimal staff and support. Instead you’ve got a lot of young newbies wanting the Robinhood experience and a lot of what they want support with is nonsense. I’ve got a 7-figure portfolio, have never called support and make a couple of trades a year, which has to be ideal for the brokerage and typical for that account size. A quick read of “The Pareto Principle” would have any firm looking to trim smaller accounts.
You're right but as I heard somebody comment when it first dropped- the small accounts of today are the large accounts of tomorrow. Definitely feels like they've dropped the ball with this one.
They appear to be deciding to use the UK investment company model, ie high fees, managed services/funds and poor customer service. They should have been a disruptor and honoured the US model wherever they could within UK regulatory boundaries. After all those ads in MSM to get people to invest with then they put this fee in place. Jack will be turning in his grave as his principles are being broken.
Let's Hope They Don't Have A Insane Moment Like Vanguard... I Started And Have Stayed With T212 I Have No Idea Where I Would Go If T212 Did Something Stupid Like This. So I Am Also Grateful For T212
I can't tell you you how much I value your thoughtful and proportionate take on all this - I realised after listening to a few videos on this, you are my most trusted voice in this quickly changing finance landscape. As a newbie investor, having been with Vanguard only 3 years, yesterday I moved to AJ Bell. I'm gutted I didn't wait until today, as I could have used your link. Thanks again, much appreciated!
I appreciate that you presented all the alternatives to Vanguard, unlike some other British creator who only advertised T212 with of course a convenient reference link for new accounts.
@ not at all, when I pointed it out, they replied “why not make people aware of the better platform”. To which I replied they should let the viewer decide what’s best for them, especially if they need a SIPP. That comment was deleted so I unsubscribed.
Thank you for recognising this. It’s at the centre of everything we do across the channel, the podcast and the newsletter. Sorry, this will be a long reply, but it’s so important to me 😂 I think everyone needs to have their own set of principles to guide how they create content in an honest and valuable way for me that is: 1. I will never be sponsored by a broker, as I believe it creates a conflict of interest. 2.I will never let the presence or absence of an affiliate scheme sway how i view discuss or rate a service. I will talk about what I consider to be the best platforms on the market for a particular job. It’s often the case that there is some form of compromise with each platform, and in the case of IE, the lack of employer contributions and drawdown options means that, for someone wanting those features, there are simply better options.
In a world where the cost of living is rising and people are financially feeling the pressure more than ever, being able to save/invest, even if only in small amounts, is a great achievement. Vanguards change in fees, in my opinion, seems to give the impression that they don't see it that way and you're not a valued customer unless you have a large sum to offer, which is confusing, seeing as the core of investing is that it's the long game. The small investments of today become the large investments of the tomorrow.
Thanks Damo. Opened up an account on Invest Engine, using your affiliate link, over the weekend and currently transffering my S&S ISA and SIPP. I think it's pretty short sighted by Vanguard.
@@DamienTalksMoneyI believe other platforms will introduce fees pretty soon as well. I won’t be comfortable investing over 100k with T212 or IE I will prefer Vanguard and I take you know why 😊
I'm actually so glad you uploaded this, I had no idea about the changes as I only have less than £10 in my account and transferred the bulk of my funds a year ago.
Seeing it spelled out for small investors that its a 4 digit percentage raise in fees makes the whole thing look totally insane. Also the short deadline left a very sour taste in my mouth. I have been using them for a few years now, but will look to take my business elsewhere soon (lets get Christmas out the way first 🎄). Thanks for covering this. Will look into the provided material and decide where is best for me to go.
I wouldn't have even noticed if noticed if not for this video, did not see the email and not in junk mail. So BIG thanks, I'll be moving my ISA's affected by this change at Vanguard asap. merry xmas Damien. Thanks for thinking of us!
I've got £40k across a SIPP and a stocks and shares ISA with vanguard so I am one of the lucky ones who isn't affected. I will still be leaving the platform because of this nonsense.
@Neddie2k no there isn't. But I'm highlighting the poor business choice made by vanguard to specifically target smaller savers. Not only does it mean that those targeted will leave (which I can only imagine is what vanguard wants), but it also means that some who are not being targeted (i.e. people like me) also will want to leave.
I’m not planning on moving at the moment but I currently have around 25k in a stock and shares ISA, If i moved in the future could I only move 20k of it in 1 go because thats the limit you are able to invest each year?
@aaronhyland800 a transfer doesn't count towards your 20k investment limit. You would be able to move all your ISA to a new provider and still invest £20k in the same tax year.
Wow I'm so glad I saw this video. I've only started investing this year, built up a small ~£1000 over the year, nothing major. The markets have done extremely well this year, and so my return is around ~£90. This will take £48 from that, it just becomes completely pointless. What then happens in a bad year..
Another great video, Thanks Damien. Sometimes we need to absorb what’s happened before taking action. I was really annoyed at Vanguard as I was also a big fan. But feel like they have U turned on us beginner investors. I’m 48 never been great with money and always been in debt and lived pay check to pay check. Did the rebel finance school in 2023. Spent this year paying off all my debt and have been slowly £50 a month paying into my SIPP and ISA. This decision now has such an impact on my small investments while I clear my debt…. Looking forward to the next chapter….. love the investing community and investment rollercoaster journey.
@ transferred to invest engine yesterday… I think you are very right, what’s good today won’t be good in the future. As IE are ready open arms for us Vanguard rejects, at a really good fee rate. Just really worried about being out the market on the transfer…
@@cookieinthewoods cheers mate! I’ve gone from the worst person with money to aiming to retire in 10 years. Budgets written for every month until April… RFS has absolutely changed my financial outlook. Now love content that keeps me up to date. Love this community!! ❤️
@@AndyC-nm5tf I still think Egg was the best for all finance products. How many of you remember it ? The stocks and shares part of the business was taken over by Fidelity.
Glad you made this video, I was on the fence about switching however after I saw the percentage change I was shocked. I am a 22 year old investor and i am glad you laid out some alternatives luckily I had a stocks and share ISA with trading 212 so I’m going through the process of transferring the cash and funds and I think I’ll go with invest engine for my SIPP as currently the drawbacks don’t effect me mostly. I did plan on keeping all my investing within vanguard for probably my whole life which is a a crazy to think they must be loosing so many customers like me. I guess the idea of looking after the richer people is more lucrative which I think is a shame.
It’s a nice way of them saying that they don’t really want your custom. As someone with a vanguard transfer complaint with the ombudsman- be aware that they don’t do transfers well.
I feel your pain. 12 months ago, it took them 48 hours to begin liquidating my investments as part of a transfer out, and then a further 12 weeks to transfer the cash out. Yep, my pension was sat in cash for the entire 12 weeks and no amount of calls and emails helped. At one point, they agreed on writing to make the transfer immediately, only to later admit that they ultimately decided to ignore that agreement 'for operative and business reasons'. They are incompetent. I hope you are successful in your complaint.
Regressive fees born of greed - vote with your wallet (and portfolio) and transfer out of Vanguard. The more successful this move is for Vanguard, the more likely other low-fee brokers will do the same.
I am in my 20s and so don't yet have enough in my Vanguard SIPP and stocks and shares ISA combined to meet the £32k minimum. I am going to move to investengine and/or trading 212 and I will encourage at least 2 other people that I previously encouraged to open Vanguard accounts to do the same. Without this fee I definitely would have stuck with vanguard for a long time. This seems like a very strange move.
Thanks Damien! Really useful video as always. The comparison table shown is really useful. Should we also be looking at transaction fees for buying and selling? As this could have a big impact for people
I'm lucky enough to have gotten started with vanguard years ago after watching one of your videos and my portfolio is now over the affected range. It's a shame but it is what it is
Great take on this Damien. As someone who is quite new in my investing career I’m in the process of leaving vanguard (they are slow) and I’ve opened a trading 212 account.
This is such a crazy move, I'm not massively affected by the change but they're making starting investing on their platform so much more risky for people just starting out. I would never have opened an account with them with these charges and you probably wouldn't have used their platform in your 'how to start investing' video. I need to go and watch your videos on the best S&S ISAs again. Didn't expect to have to do that anytime soon
I've been spending all weekend looking at what to do, I'm considering selling my position as being a new investor and changing platform and fund altogether. Also shi* time of year to announce this, thanks Vanguard..
You don't necessarily need to sell to transfer. T212 allow some in specie transfers of certain funds, not sure about Invest Engine etc. Even if the fund can't be transferred, you can switch to a fund that can be in Vanguard and then transfer that without ever being out of the market.
Decent video - that's for the info as always. Important to remember to not let loyalty get in the way of getting the best deal / rates of return. Move with the times and shop around.
Firstly let me say Damien , i like these videos they very informative. I have literally just switched my SIPP and ISA and the same for my 3 kids from HL to Vanguard, so naturally when i saw this news i was a bit miffed. As it pans out , none of us are really impacted and i'm more irritated by the timing and the change in philosophy of vanguard to investors. So I'm now on alert and I'll readily switch if Vanguard to go further off piste. All that said it does feel the media around this are over cooking it, sure the % increases for investors with lower value portoflios is high but in real monetary terms it's not huge. I've calculated that once my kids portfolios get to $£11k they are better off with Vanguard than HL. One other thing the fee comparison you showed in a linked spreadsheet is quite misleading, it shows that HL cap fees at £200 but that only applies to shares, ETFs, bonds, investment trusts, it doesn't apply to "normal" funds (which HL still charge 0.45%)
I have less then 32 so Vanguard will bite. For me it is not just additional fee: it is an alarm. I will exit for Invest Engine becouse I believe that Vanguard will not stop there for a long time. That attitude was just a small warning of something fundamentaly wrong with Vanguard itself.
You can thank the FCA and the countless amount of regulation and legislation introduced. It's almost not commercially viable to have provide a service to clients with less than £100k these days. The FCA have just widened the advice gap even more with the amount of silly rules and regs brought in to try and add value and get advice to more people. The industry has not reacted positively at all to all these changes. The fact even vanguard have introduced higher fees says it all.
Thanks for this. I’m really frustrated as I chose Vanguard because of the low fees and I only invest in a couple of funds including the Vanguard life strategy fund (think that’s what it’s called). Was planning to just set it and forget it for a few years but now feel like I need to start again and find alternative funds to invest in
Thanks Damien! It was your original Vanguard video that got me to open a vanguard account. I'm still deciding what I'm going to do as my portfolio is just over £10k. This was such a shitty move from them. Investing should be for everyone, not just the rich.
In the long run the charge isn't that big a deal but the short notice is what has made me transfer. Can only take this that they want shot of smaller investors.
Vanguard US has a VIP service for investors with larger holdings, I'm surprised that they haven't launched that. Other providers do, for instance Standard Life give a dedicated number for holding £100k or more. Even if it just meant getting better service for transfers, purchases and sales thatbwould be something.
Started my SIPP transfer to invest engine, doubt it’ll complete on time especially with Christmas. Never thought I’d see the day I’d be forced away from vanguard due to fees but here we are.
So like many I had no idea you have another channel. Even before listening to this video; I assume you're going to talk talk about the 4 quid charge. (writing this before listening). Either way thank you for covering this, because I had the feeling this was going to be terrible news. I am yet to contact them about this and actually trying to wrap my head around exactly what would the point of my money being in Vanguard is now going forward. If I've calculated correctly my returns would be wiped out now due to this disproportionate fee increase on smaller pots. If I stay with VG the little returns I have made this year would mean I'd end up owing them money. So I am very very much looking forward to this so thanks. After watching your best options and this video and another I think I may give 212 a go this coming year. Cheers.
Absolutely disgusting. They are penalising those who are new and have a very small portfolio. Thus missing out on those same people who will have big portfolios in time. Make it make sense!
Fascinating. Only one week ago I opened a Vanguard account (after watching your videos) and invested £150 to start with, with the intention of matching that month by month. So now, unless I'm mistaken, my £150 will cost me £4 a month, no? How absurd.
It’s not just fees that are causing concern. Financial advisers are telling investors to have a mixed financial portfolio, so perhaps some in annuity pensions, some in drawdown SIPPs (so you can draw down as required), some in ISAs and some in easy access funds in a bank account. Then when dealing with the likes of Barclaycard (their systems are very poor) they say your direct regular monthly income is not sufficient to increase your card credit limit even though you have no mortgage or borrowing and have a serious amount of money elsewhere and even a significant amount in one of their easy access savings accounts, which they can see when dealing with the card credit limit. This failure to understand or simply not care about their customers, as shown by the branch closures, where computer systems have totally taken over decision making, is very frustrating but typical of the banking sector, especially Barclays.
They could consider making it a more progressive fee by making it a percentage of the returns you get through their services, like a tax. They could also make it so that there’s an allowance like there is for income tax, so that it is more equitable and doesn’t push out the smaller investors
Vanguard seem to have been going down hill for a while now. I raised a complaint a few months ago and they didn't even respond. I suspect they're either inundated with complaints or they simply don't give a toss. Probably both!. These charges don't affect me but they will affect young offspring who are starting their investment journey. I will vote with my feet. Thanks Damien for your insightful videos.
Great video Damien, I was hoping you would share your take on RUclips! I do subscribe to your FI email and read your update but for some reason I prefer the video / voice over! Easier to connect with I guess! Thanks again!
I personally think if you have less than £15,000 then you should switch, but £15,000+ you need to work out the percentage increase and see if it’s worth it for you and compare it to other platforms.
This is a very bold move. If the fees were like this when I started investing I wouldn't even be on their platform to begin with. Seems like this is going to hit them in the future and they are only looking at short term gains by cutting the small investors that don't make them money right now.
I'm actually moving in the opposite direction. I'm in the process of transferring an AJ Bell and an investengine pension to Vanguard. AJ bell done and dusted in two weeks. Investengine is six weeks in and completely stalled! Plus their primitive processes mean a lot of the transfer requires form filling and using snail mail to physically send documents by post. Currently Investengine are way too primitive for me so I'll be staying with The big boy for now.
@@clarenceishmael9615 I only know because I'm in the process of moving from Vanguard to Fidelity. Vanguard are not worth it when only holding ETFs (fees are higher).
I'm in the process of transferring to Invest Engine. I wonder if all these free trading platforms will move to fee paying once they have enough investors🤔. Thanks again for the content Damo and Merry Christmas to you all.
Thanks Damien. I'm currently deciding between transferring my ISA out, or transferring my SIPP in. On principle I want to transfer my ISA out, but I'll have to do the maths properly to make the best decision for my money and my future.
Thanks for the informative video as always!! I’ve decided to switch to T212, where can I get advice on whether I should do a cash or in specie transfer?
Financial interest articles:
Best stock and shares ISA financialinterest.com/best-st...
Best Sipp: financialinterest.com/best-sipp/
Do you trust Trading 212?
@woooooooo9061 I trust that they are regulated and authorised by the FCA and have a UK entity. They are growing so fast the regulator is all over them.
Hi Damien, I have a question. When investing with Vanguard (Regular payments of £1K a month), I have only noticed now that I have been accumulating uninvested amount in cash (eg, my £500 buys me 4 shared of VWRP and the rest stays in the account as cash).
I thought Vanguard would use that money in the next monthly cycle but they don't and now I have 5K of uninvested cash and lost opportunity. Do you think I have done something wrong or that's actually how it works on Vanguard?
I just transfered my SIPP to IE. forget scamguard
@@DamienTalksMoney we really gotta start standing up for ourselves and stop accepting all this. cost of living, inflation etc etc.
Been waiting on this video since I got that stupid email from vanguard
Same, Already switched to invest engine
@@benmckenziefilmsDone exactly the same for my SIPP and ISA…
Sorry I didn’t do it sooner for you! Thanks for tuning in 😊
"If you're poor, you'll get a being poor fee"
Smh, the very little money they even raise from that, screw these institutions.
Sounds like a Jewish poem.
I don't like what the companies are doing, but virtually everywhere else in life poor ppl get screwed with higher prices. What made you think the stock markets were any different? (Think loans, mortgages, savings on goods when buying things in bulk)
@chrispiasecki8389 Vanguards whole Ethos is supposed to be low fees, pro-small investor.
This is a complete change in business practice
I’m a customer but not affected, however I think it’s pretty shitty of Vanguard to do this. It will definitely make me less sticky as a customer as it’s killed any loyalty to the brand that I had
Spot on.
Very interesting and in£formative.
you owe vanguard nothing mate. move your money to somewhere better. vote with your wallet
Why? It’s a business?
@@Black-Circlehi mate could you recommend anywhere else I own their LS 100 and US equity index funds. Was thinking T212
Vanguard was literally the company that got me started 10 years ago in large part due to John C. Bogle core mission to provide small investors with a low fee platform. This is very sad to see that this change completely goes against what he stood for..
After Bogle retired, he publicly talks about he sort of lost control on the direction of the company regarding fees
They are loosing all of their small investors who will become big investors over time.
They did the business exercise called ‘how to kill the business’ then selected the best option.
I have over £32k with them but I am kicking them into touch on a principal basis.
Jack will be turning in his grave.
Losing
😂😂😂😂@@tf2368
Hmm, not sure. I feel this is very calculated, most people can't be bothered to switch to a different provider and will just pay the extra fee.
I agree. Send a message…I’m moving my SIPP and ISA to IE or Trading 212, and will do the same for my family (who only opened Vanguard on my advice). Got to do it, my fees are not changing, but who knows who is next.
Well said.
Thanks so much for posting, Damien; I totally missed Vanguard's email. I've been with Vanguard for a year now after thoroughly researching where to put my ISA. I now have to go through this process again, but rather this than being shafted in a months' time. Thank you so much for the warning.
I wouldn't call a £4 fee "being shafted". The hysteria on this thread is quite astonishing
Completely missed this email from vanguard so thank you
I was waiting to hear your insight on this and totally agree with what you’ve said. I was so disappointed as sadly, I am one of those who are punished with a “poor fee”.
I don’t have bank of mum and dad to rely on and I’m proud of the small amount of money I’ve managed to squirrel together over the years. Most of us working folk are short on time to research the next best place to invest; your videos are incredibly helpful in that respect - thanks for your honesty as always Damien.
I left vanguard UK recently once I found out. Its essentially a poor person tax.
You could essentially move from vanguard to another low fee/ no fee platform and buy into vanguards funds.
No, it's the poor people who are up in arms about this and moving their tiny portfolios to try and save a few pounds a year. The rich think differently and don't seem to care about fees. How else do you explain the success of St James's Place, which charges exorbitant fees and generates below average performance?
Are vanguard fund fees rising aswell? Have shares in a few on another platform and don't want them to become more expensive.
Thank you, thank you thank you. I've only just started my sipp and was absolutely shocked and angry . Invest engine is for me
You are welcome
This feels like a business shift to move people out who have lower fund values. Similar to insurers giving large quotes to people who they dont want to insure
Critical thinker
based
Exactly, they don’t want those accounts, maybe they don’t want to hire more staff to support the accounts, so they are trying to get rid of 25% of investors that give them headaches.
I think the same, as my brokerage added fees for sub-$10k accounts last year to similar outcry. Based on what I see on their Reddit forum, it is the smallest accounts that demand the most support, and the brokerage was started as a “robo-advisor” model with minimal staff and support. Instead you’ve got a lot of young newbies wanting the Robinhood experience and a lot of what they want support with is nonsense. I’ve got a 7-figure portfolio, have never called support and make a couple of trades a year, which has to be ideal for the brokerage and typical for that account size. A quick read of “The Pareto Principle” would have any firm looking to trim smaller accounts.
You're right but as I heard somebody comment when it first dropped- the small accounts of today are the large accounts of tomorrow. Definitely feels like they've dropped the ball with this one.
They appear to be deciding to use the UK investment company model, ie high fees, managed services/funds and poor customer service. They should have been a disruptor and honoured the US model wherever they could within UK regulatory boundaries. After all those ads in MSM to get people to invest with then they put this fee in place. Jack will be turning in his grave as his principles are being broken.
The regulations in the U.K. are too burdensome. Which is why costs are high.
Such a shame 😢. New entrants into Vanguard are the life blood of its future position in the investment world. Damo - excellent analysis as usual 👏
Was intending to invest with Vanguard in the new year, won’t be now!
Thanks for the vid.
I'm so grateful for Trading 212.
Trading 212 is pretty good aswell
@@Shreddahtrades lol
That’s not fair you’ve changed the spelling now 😂😂
@@Shreddahtradesit blows the uk competition out of the water mate
Let's Hope They Don't Have A Insane Moment Like Vanguard...
I Started And Have Stayed With T212
I Have No Idea Where I Would Go If T212 Did Something Stupid Like This.
So I Am Also Grateful For T212
I can't tell you you how much I value your thoughtful and proportionate take on all this - I realised after listening to a few videos on this, you are my most trusted voice in this quickly changing finance landscape. As a newbie investor, having been with Vanguard only 3 years, yesterday I moved to AJ Bell. I'm gutted I didn't wait until today, as I could have used your link. Thanks again, much appreciated!
I appreciate that you presented all the alternatives to Vanguard, unlike some other British creator who only advertised T212 with of course a convenient reference link for new accounts.
Not sure who you are talking about, but maybe they were getting all that information together for another video?
@ not at all, when I pointed it out, they replied “why not make people aware of the better platform”. To which I replied they should let the viewer decide what’s best for them, especially if they need a SIPP. That comment was deleted so I unsubscribed.
Thank you for recognising this. It’s at the centre of everything we do across the channel, the podcast and the newsletter. Sorry, this will be a long reply, but it’s so important to me 😂
I think everyone needs to have their own set of principles to guide how they create content in an honest and valuable way for me that is:
1. I will never be sponsored by a broker, as I believe it creates a conflict of interest.
2.I will never let the presence or absence of an affiliate scheme sway how i view discuss or rate a service. I will talk about what I consider to be the best platforms on the market for a particular job.
It’s often the case that there is some form of compromise with each platform, and in the case of IE, the lack of employer contributions and drawdown options means that, for someone wanting those features, there are simply better options.
@ keep up the great work! Your content is very much appreciated 😌
@@DamienTalksMoney Long term viewers/listeners know that you are trustworthy. Keep up the good work Damo.
Already in the process of switching to trading 212 from Vanguard. Very informative video mate
Me too. Just been doing that this evening.
me too. is it just doing a portfolio transfer?
In a world where the cost of living is rising and people are financially feeling the pressure more than ever, being able to save/invest, even if only in small amounts, is a great achievement. Vanguards change in fees, in my opinion, seems to give the impression that they don't see it that way and you're not a valued customer unless you have a large sum to offer, which is confusing, seeing as the core of investing is that it's the long game. The small investments of today become the large investments of the tomorrow.
Thanks Damien. I moved my pension pot right before Vanguard fee announcement. Ridiculous! Now have to move it instantly.
Sorry to hear this that you have had to mess around so much!
Wow, you've got to be really quick or you'll loose the price of a few coffees per year and compromise your financial future!
@ I appreciate sarcasm, but I do not drink coffee from Costa and Starbucks. Saved money for a new MacBook
@@What-if-I-am-wrong£48 a year is not a new macbook mate
Can't wait for trading 212 SIPP to come out
FFS, I just cleaned out my S&S ISA down to 5 grand to pay off the mortgage. It's going to take me a while to get back to the 32k cap at 1k a month in.
you can sleep soundly knowing you own the gaff though
@@95lalWord 👊🏾
Thank buddy. Always good to hear your view on this, and I am definitely switching out just on principle alone
Thanks Damo. Opened up an account on Invest Engine, using your affiliate link, over the weekend and currently transffering my S&S ISA and SIPP. I think it's pretty short sighted by Vanguard.
Thank you Darren for using the links i really appreciate it. But i am sad Vanguard have targeted so many investors
@@DamienTalksMoneyI believe other platforms will introduce fees pretty soon as well. I won’t be comfortable investing over 100k with T212 or IE I will prefer Vanguard and I take you know why 😊
Great coverage!!!
I'm actually so glad you uploaded this, I had no idea about the changes as I only have less than £10 in my account and transferred the bulk of my funds a year ago.
Will they charge the fee for people with an empty account, eg do i have to close my account so i don't go into debt with them?
I'm assuming that Vanguard are choosing not to compete in the UK because of Trading 212. Its the killer app
Damien is the bro you never had and the son your dad wished he had. Subscribed for life bro
Had no idea about your other channel, I just subscribed
look forward to both content
Thank you! Hope you enjoy it
Thank god someone is talking about this. I was so disappointed that I am now shopping around. A subscription based model for money now? What next?
I feel really fortunate to be using the Vanguard USA app. Its a shame they are treating the uk customers so poorly
Oh so this applies to UK only?
@@stuartburns8657 Yep
The American service is amazing!
Vanguard are crap in Australia too.
Seeing it spelled out for small investors that its a 4 digit percentage raise in fees makes the whole thing look totally insane. Also the short deadline left a very sour taste in my mouth.
I have been using them for a few years now, but will look to take my business elsewhere soon (lets get Christmas out the way first 🎄).
Thanks for covering this. Will look into the provided material and decide where is best for me to go.
I wouldn't have even noticed if noticed if not for this video, did not see the email and not in junk mail. So BIG thanks, I'll be moving my ISA's affected by this change at Vanguard asap. merry xmas Damien. Thanks for thinking of us!
I've got £40k across a SIPP and a stocks and shares ISA with vanguard so I am one of the lucky ones who isn't affected. I will still be leaving the platform because of this nonsense.
There is no guarantee that the platform you are moving to will not increase their fees in the future
@Neddie2k no there isn't. But I'm highlighting the poor business choice made by vanguard to specifically target smaller savers. Not only does it mean that those targeted will leave (which I can only imagine is what vanguard wants), but it also means that some who are not being targeted (i.e. people like me) also will want to leave.
Not moving to another platform because the MIGHT charge more in the future doesn't make any sense. @Neddie2k
I’m not planning on moving at the moment but I currently have around 25k in a stock and shares ISA, If i moved in the future could I only move 20k of it in 1 go because thats the limit you are able to invest each year?
@aaronhyland800 a transfer doesn't count towards your 20k investment limit. You would be able to move all your ISA to a new provider and still invest £20k in the same tax year.
Wow I'm so glad I saw this video. I've only started investing this year, built up a small ~£1000 over the year, nothing major. The markets have done extremely well this year, and so my return is around ~£90. This will take £48 from that, it just becomes completely pointless. What then happens in a bad year..
I believe Vanguard, need the extra funds to fund the flood of compensation payments resulting from the abysmal complaints handling.
Another great video, Thanks Damien. Sometimes we need to absorb what’s happened before taking action.
I was really annoyed at Vanguard as I was also a big fan. But feel like they have U turned on us beginner investors.
I’m 48 never been great with money and always been in debt and lived pay check to pay check.
Did the rebel finance school in 2023. Spent this year paying off all my debt and have been slowly £50 a month paying into my SIPP and ISA. This decision now has such an impact on my small investments while I clear my debt….
Looking forward to the next chapter….. love the investing community and investment rollercoaster journey.
You are doing so well. making real strides when it comes to your finances. Keep at it and take your money to a platform that values you properly
@ transferred to invest engine yesterday… I think you are very right, what’s good today won’t be good in the future. As IE are ready open arms for us Vanguard rejects, at a really good fee rate.
Just really worried about being out the market on the transfer…
I love reading comments like this Andy, well done. I've been with IE for nearly a year and really like the platform. All the best for 2025.
@@cookieinthewoods cheers mate!
I’ve gone from the worst person with money to aiming to retire in 10 years. Budgets written for every month until April… RFS has absolutely changed my financial outlook. Now love content that keeps me up to date. Love this community!! ❤️
@@AndyC-nm5tf I still think Egg was the best for all finance products. How many of you remember it ?
The stocks and shares part of the business was taken over by Fidelity.
Glad you made this video, I was on the fence about switching however after I saw the percentage change I was shocked. I am a 22 year old investor and i am glad you laid out some alternatives luckily I had a stocks and share ISA with trading 212 so I’m going through the process of transferring the cash and funds and I think I’ll go with invest engine for my SIPP as currently the drawbacks don’t effect me mostly. I did plan on keeping all my investing within vanguard for probably my whole life which is a a crazy to think they must be loosing so many customers like me. I guess the idea of looking after the richer people is more lucrative which I think is a shame.
It’s a nice way of them saying that they don’t really want your custom. As someone with a vanguard transfer complaint with the ombudsman- be aware that they don’t do transfers well.
its going to take forever for them to transfer mine to IE
I feel your pain. 12 months ago, it took them 48 hours to begin liquidating my investments as part of a transfer out, and then a further 12 weeks to transfer the cash out. Yep, my pension was sat in cash for the entire 12 weeks and no amount of calls and emails helped. At one point, they agreed on writing to make the transfer immediately, only to later admit that they ultimately decided to ignore that agreement 'for operative and business reasons'. They are incompetent. I hope you are successful in your complaint.
@@paulwoolgar5384wow that is outrageous!
Vanguard transfers are known to be a joke of the industry, from someone who works in it.
@@paulwoolgar5384 those dirt bags are collecting the interest on peoples money
Regressive fees born of greed - vote with your wallet (and portfolio) and transfer out of Vanguard.
The more successful this move is for Vanguard, the more likely other low-fee brokers will do the same.
I was waiting for this video... Told the other half about this monthly fee and said I need to see what Damien says to get the full picture.
I am in my 20s and so don't yet have enough in my Vanguard SIPP and stocks and shares ISA combined to meet the £32k minimum.
I am going to move to investengine and/or trading 212 and I will encourage at least 2 other people that I previously encouraged to open Vanguard accounts to do the same.
Without this fee I definitely would have stuck with vanguard for a long time. This seems like a very strange move.
Yeah that email blindsided me. Quite cheeky to come right in there at the end of the year 😮
I’m gonna have to leave as well. Was thinking this as soon as I got the email. Big shame
Likewise.
Thanks Damien! Really useful video as always. The comparison table shown is really useful. Should we also be looking at transaction fees for buying and selling? As this could have a big impact for people
No need to ever apologise for not posting your video sooner mate as you always deliver in quality and offer absolute sound device 🙏👍
Have small SIPP less than 2500, new fees would have been too much, just started the transfer to Invest Engine, pity as I liked Vanguard
I'm lucky enough to have gotten started with vanguard years ago after watching one of your videos and my portfolio is now over the affected range. It's a shame but it is what it is
Great video Damien. Really appreciate your content, balance of your opinion and overall values.
Keep up the great work 😍
I missed this email so glad I caught this video. Moving it all over to a cash ISA with another company for now while the our economy takes a dive
Great take on this Damien. As someone who is quite new in my investing career I’m in the process of leaving vanguard (they are slow) and I’ve opened a trading 212 account.
Good luck with 212!
This is such a crazy move, I'm not massively affected by the change but they're making starting investing on their platform so much more risky for people just starting out. I would never have opened an account with them with these charges and you probably wouldn't have used their platform in your 'how to start investing' video. I need to go and watch your videos on the best S&S ISAs again. Didn't expect to have to do that anytime soon
I've been spending all weekend looking at what to do, I'm considering selling my position as being a new investor and changing platform and fund altogether. Also shi* time of year to announce this, thanks Vanguard..
You don't necessarily need to sell to transfer. T212 allow some in specie transfers of certain funds, not sure about Invest Engine etc. Even if the fund can't be transferred, you can switch to a fund that can be in Vanguard and then transfer that without ever being out of the market.
Thanks for updating Bro…
A a new investor I was considering Vanguard but I doubt that's going to happen now. Thanks for all the content, it's been a great help !
Yep same . I am glad I seen this video beforehand
Thank you so much Damo, really appreciate your clear and honest advice. Future Martin Lewis, have a great christmas
I applied to transfer out my SIPP away from Vanguard yesterday because of the fee changes
Decent video - that's for the info as always. Important to remember to not let loyalty get in the way of getting the best deal / rates of return. Move with the times and shop around.
Firstly let me say Damien , i like these videos they very informative. I have literally just switched my SIPP and ISA and the same for my 3 kids from HL to Vanguard, so naturally when i saw this news i was a bit miffed. As it pans out , none of us are really impacted and i'm more irritated by the timing and the change in philosophy of vanguard to investors. So I'm now on alert and I'll readily switch if Vanguard to go further off piste. All that said it does feel the media around this are over cooking it, sure the % increases for investors with lower value portoflios is high but in real monetary terms it's not huge. I've calculated that once my kids portfolios get to $£11k they are better off with Vanguard than HL. One other thing the fee comparison you showed in a linked spreadsheet is quite misleading, it shows that HL cap fees at £200 but that only applies to shares, ETFs, bonds, investment trusts, it doesn't apply to "normal" funds (which HL still charge 0.45%)
I have less then 32 so Vanguard will bite. For me it is not just additional fee: it is an alarm. I will exit for Invest Engine becouse I believe that Vanguard will not stop there for a long time. That attitude was just a small warning of something fundamentaly wrong with Vanguard itself.
You can thank the FCA and the countless amount of regulation and legislation introduced. It's almost not commercially viable to have provide a service to clients with less than £100k these days. The FCA have just widened the advice gap even more with the amount of silly rules and regs brought in to try and add value and get advice to more people. The industry has not reacted positively at all to all these changes. The fact even vanguard have introduced higher fees says it all.
Grrrr bloody rules and regulations protecting my money
OMG, your calls are insane! 10% gains last week. Thinking about AWS32K, SOL, and MATIC now. Thoughts?
I think...you are a scammer...
Thanks for this. I’m really frustrated as I chose Vanguard because of the low fees and I only invest in a couple of funds including the Vanguard life strategy fund (think that’s what it’s called). Was planning to just set it and forget it for a few years but now feel like I need to start again and find alternative funds to invest in
Those funds still exist on other platforms. Try trading 212
AWS32K and SOL are my new faves! Already made $30k, and I’m all in for the long run 🔥
Thanks Damien! It was your original Vanguard video that got me to open a vanguard account. I'm still deciding what I'm going to do as my portfolio is just over £10k. This was such a shitty move from them. Investing should be for everyone, not just the rich.
Within 10 minutes of receiving the email, I closed my account.
So you were holding no investments in it clearly
Tooks couple days to clear funds, such a liar haha
In the long run the charge isn't that big a deal but the short notice is what has made me transfer. Can only take this that they want shot of smaller investors.
Vanguard US has a VIP service for investors with larger holdings, I'm surprised that they haven't launched that.
Other providers do, for instance Standard Life give a dedicated number for holding £100k or more.
Even if it just meant getting better service for transfers, purchases and sales thatbwould be something.
Started my SIPP transfer to invest engine, doubt it’ll complete on time especially with Christmas. Never thought I’d see the day I’d be forced away from vanguard due to fees but here we are.
So like many I had no idea you have another channel.
Even before listening to this video; I assume you're going to talk talk about the 4 quid charge. (writing this before listening).
Either way thank you for covering this, because I had the feeling this was going to be terrible news.
I am yet to contact them about this and actually trying to wrap my head around exactly what would the point of my money being in Vanguard is now going forward. If I've calculated correctly my returns would be wiped out now due to this disproportionate fee increase on smaller pots. If I stay with VG the little returns I have made this year would mean I'd end up owing them money.
So I am very very much looking forward to this so thanks.
After watching your best options and this video and another I think I may give 212 a go this coming year. Cheers.
I was considering Vanguard for a SIPP. Guess I won't bother now.
Super happy that my ISA is already with Trading 212.
Absolutely disgusting. They are penalising those who are new and have a very small portfolio. Thus missing out on those same people who will have big portfolios in time. Make it make sense!
Wage bills going up, due to the last budget.
Cutting staff and letting go of "high mantainance" customers
Other brokers surely would have the same issues?
AWS32K and SHIB about to dominate headlines. Everyone will FOMO once they see what’s coming!
Mate I believe I started investing in vanguard seeing your video love time ago 😂 and realised to quit now after this again
Fascinating. Only one week ago I opened a Vanguard account (after watching your videos) and invested £150 to start with, with the intention of matching that month by month. So now, unless I'm mistaken, my £150 will cost me £4 a month, no? How absurd.
I packed in Vanguard a while ago. They have nothing I need, so no need to pay any platform fees these days for me. Great video, pal.
Where did you move to?
@@screambluemurder101 InvestEngine and Trading 212. I had accounts with both already so shut down vanguard and moved my funds.
Withdrew everything, hello Invest Engine!
Thanks for letting us know and giving your thoughts on this.
As soon as I saw the email, I kept checking to see if this video was out.
Nuts!! I am not effected.. my son is and he pulled the pin on Vanguard and is off to T212
does this affect ETFs such as VOO and VTI?
It’s not just fees that are causing concern. Financial advisers are telling investors to have a mixed financial portfolio, so perhaps some in annuity pensions, some in drawdown SIPPs (so you can draw down as required), some in ISAs and some in easy access funds in a bank account. Then when dealing with the likes of Barclaycard (their systems are very poor) they say your direct regular monthly income is not sufficient to increase your card credit limit even though you have no mortgage or borrowing and have a serious amount of money elsewhere and even a significant amount in one of their easy access savings accounts, which they can see when dealing with the card credit limit. This failure to understand or simply not care about their customers, as shown by the branch closures, where computer systems have totally taken over decision making, is very frustrating but typical of the banking sector, especially Barclays.
They could consider making it a more progressive fee by making it a percentage of the returns you get through their services, like a tax. They could also make it so that there’s an allowance like there is for income tax, so that it is more equitable and doesn’t push out the smaller investors
Vanguard seem to have been going down hill for a while now. I raised a complaint a few months ago and they didn't even respond. I suspect they're either inundated with complaints or they simply don't give a toss. Probably both!. These charges don't affect me but they will affect young offspring who are starting their investment journey. I will vote with my feet. Thanks Damien for your insightful videos.
Great video Damien, I was hoping you would share your take on RUclips! I do subscribe to your FI email and read your update but for some reason I prefer the video / voice over! Easier to connect with I guess! Thanks again!
I personally think if you have less than £15,000 then you should switch, but £15,000+ you need to work out the percentage increase and see if it’s worth it for you and compare it to other platforms.
£15K portfolio would incur a fee increase of 72%
They're laughing at you if you think that is acceptable
I have 13k in there and I'm moving to T212 and closing my Vanguard account. Doubling my fees when there are already cheaper alternatives is insane.
I have 12.5k in my vanguard sipp, it's already in transfer to invest engine. It is a shame but I still have the vanguard funds!
This is a very bold move. If the fees were like this when I started investing I wouldn't even be on their platform to begin with. Seems like this is going to hit them in the future and they are only looking at short term gains by cutting the small investors that don't make them money right now.
I'm actually moving in the opposite direction. I'm in the process of transferring an AJ Bell and an investengine pension to Vanguard.
AJ bell done and dusted in two weeks. Investengine is six weeks in and completely stalled! Plus their primitive processes mean a lot of the transfer requires form filling and using snail mail to physically send documents by post. Currently Investengine are way too primitive for me so I'll be staying with The big boy for now.
Vanguard requires snail mail to transfer out.
@@Magpie314 I didn't know that, but no intention of leaving for now.
@@clarenceishmael9615 I only know because I'm in the process of moving from Vanguard to Fidelity. Vanguard are not worth it when only holding ETFs (fees are higher).
amazing insight as always thank you! subbed to the other channel too!
I have been investing every month with vanguard for 3 years now with good results but just withdrew everything after hearing about these changes.
I'm in the process of transferring to Invest Engine. I wonder if all these free trading platforms will move to fee paying once they have enough investors🤔. Thanks again for the content Damo and Merry Christmas to you all.
Great to hear your views as always Damien! Possible to follow up with an updated best Junior ISA video?
At 5:50 you show a breakdown of fees. It's also be useful to see a breakdown of their returns had you invested X amount with them.
Moved ISA and am in the process of moving SIPP. Invest Enging and AJ Bell. If Vangaurd don't want me then I don't want them.
Thanks Damien. I'm currently deciding between transferring my ISA out, or transferring my SIPP in. On principle I want to transfer my ISA out, but I'll have to do the maths properly to make the best decision for my money and my future.
Thanks for the informative video as always!! I’ve decided to switch to T212, where can I get advice on whether I should do a cash or in specie transfer?
I will be leaving vanguard due to these changes, its makes them to costly for a small portfolio. Thanks for making me aware of these changes