@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’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
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.
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.
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.
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?
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.
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..
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 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.
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.
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.
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.
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'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.
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 😊
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.
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.
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.
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.
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
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.
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.
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.
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.
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
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
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.
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
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.
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.
What’s the best way to move funds - transfer or sell and withdraw on vanguard and then deposit in a new one? I don’t want to lose anything I’ve made over the past few years. I’m still very new to the details of investing, despite having passively been doing so with vanguard for 3 years!
Do an In-specie transfer, this means the legal ownership of your investments are transferred from one provider to another, allowing you to stay invested in the market during the transfer
@ thank you! I currently invest in the VG life strategy 100% acc fund but I see t212 doesn’t have this option to switch to directly and I’m pretty sure I need to select the same one? Is the best idea to switch my investments to an alternative fund that t212 offers, before transferring it to t212?
So got 2 young relatives...both on lifetime 100% vanguard isa's....one has 6.5k..other has 14k....so will be hit with fees hike....my question is, should they transfer isa to a vanguard product that ,say, trading 212 offers...and THEN transfer to an equivalent from vanguard to 212, so money goes straight over and they dont lose time waiting for the sell/transfer of the lifetime to cash, then buy a different vanguard product on 212..?...hope that makes sense.
@@d9dgahighly likely they will raise fees in 2-5 yrs on their DIY offerings to finally start turning a profit. However their goal is to be a disruptor to the market to companies like Vanguard so from that perspective it looks like they have succeeded.
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.
I currently have sipp , S&S isa and 2 junior isas with vangaurd with the kids be charged the fee separately? If so can i transfer then to invest engine ? Thanks for the video hopefully vanguard change there mind as i like there index all world but not willing to pay the fee so think going to have to change to all world etf.
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.
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).
That last comment about switching fees from active to passive rings true. I keep asking myself whether there's a future for fund managers in a world where passive investment becomes rhe norm.
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.
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 stuff Damo. I think a lot will be moving, including those who will not be affected by higher fees. Vanguard may yet regret this, if not already. Just 1 thing....transferring a Sipp from Vanguard....need to check "in specie" is available and possible....esp if retired and not yet drawing , or pot remains uncrystallised. Potential difficulty here.
Great video Damien, I was hoping you would share your take on TH-cam! 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!
One thing to note is when you transfer your funds, is that your current provider will sell your current fund then transfer the money to your new provider who will then purchase the funds you want. Between those transactions you could potentially lose hundreds of pounds depending on the market direction.
This depends on the provider, and if they offer in-specie transfer (re-registration) of shares/funds. I recently moved my SIPP from Quilter to Interactive Investor and the funds were re-registered so were never out of the market. They basically gave me the choice of cash transfer vs re-register during the process.
So is the answer whilst we wait for Invest Engine to start allowing transfers from other providers to transfer from our third party SIPP to Vanguard and back out to Invest Engine 😅 It'll just take 6 months 😅
I honestly don’t know what to do. I’m tempted to move my money to T212. But I like vanguard. I feel it’s safe. I currently pay £32 it’s going up to £48. Is £16 enough to make me move 🤷♂️
My isa is vanguard , I moved from IE to V 18 months ago. Happy to pay for safety and longevity. IE and T212 just don’t have the AUM or customer numbers for me.
It's is pretty poor from Vanguard giving only 6 weeks notice. I personally think is should have been 90 days to give people time to migrate to another service. When I received the email I was quite annoyed with the news even though it won't affect me. It felt like a let down considering how I spoke to family and friends about them in the past. Reflecting and thinking more I can see why. Look where inflation has gone and they are still charging the same 0.15%. But if you only have £1k invested that is only 12.5p (pre taxes) per month. If that person makes a call or messages asking a question (which new users do) then they made a loss. Obviously they run an agency model in the UK so they are paying a cut of that to FNZ too. So I suspect pre COVID they had lots of relatively well informed well off customers with good balances. The post COVID boom in finance content has attracted new people to start investing (good thing) but are starting out with low monthly sums which many app based products are aimed at. So I'm not sure Vanguard actually really wanted these customers and they need the £4 a month just to cover their business needs. That's my take on things anyway.
@Paul-zk2tn They have been charging the 0.15% since launch in 2017. So a person paying the maximum would still be paying £375 in fees but with inflation this should be around £490. Obviously higher end customers are profitable so they don't want to push over the 0.15% just to cover off the none profitable customers. So with a fixed fee of £4 it's easy to bump this up to £5 in a few years when many of the current people on it around the current £32k limit will have hit the £40k mark with new investments and the market rising. So I suspect it won't be eroded due to inflation but will be increased at some point in the future.
I’m just completely baffled by this decision. Vanguard were always about having a no frills platform (which I much prefer to some other complicated sites) and offering a cheap service for the masses. How times have changed.
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?
Don't fret about being late. I think many of your subscribers will already know the changes. Good to have your views though. I'm not impacted by the change (except the pro-rata fee withdrawal approach they are going to adopt, which is a pain), and I agree that this change is trying to move smaller, and perhaps less experienced investors to their managed ISA product. I'd be interested to see what market research they did for this. I'm still a fan of their ETF's/Funds, but I see this as a change for the worse for the Vanguard Platform.
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.
Hi, I have my personal pension with vanguard, I’m really not happy with the way they’re treating smaller investors. Please can we have an up to date vid on pension providers?
![แฉกลโกงงานวัด 2024 [ โกงมั้ยครับ ep.106 ] | DOM](http://i.ytimg.com/vi/taC5dpP3HXA/mqdefault.jpg)
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’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
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
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.
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.
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
Such a shame 😢. New entrants into Vanguard are the life blood of its future position in the investment world. Damo - excellent analysis as usual 👏
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?
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.
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..
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 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.
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.
Completely missed this email from vanguard so thank you
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
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
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.
Was intending to invest with Vanguard in the new year, won’t be now!
Thanks for the vid.
Thank buddy. Always good to hear your view on this, and I am definitely switching out just on principle alone
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.
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 👊🏾
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.
Can't wait for trading 212 SIPP to come out
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?
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?
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 😊
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.
I'm assuming that Vanguard are choosing not to compete in the UK because of Trading 212. Its the killer app
Great coverage!!!
Damien is the bro you never had and the son your dad wished he had. Subscribed for life bro
I’m gonna have to leave as well. Was thinking this as soon as I got the email. Big shame
Likewise.
Great video Damien. Really appreciate your content, balance of your opinion and overall values.
Keep up the great work 😍
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
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 !
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.
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.
No need to ever apologise for not posting your video sooner mate as you always deliver in quality and offer absolute sound device 🙏👍
Yeah that email blindsided me. Quite cheeky to come right in there at the end of the year 😮
I believe Vanguard, need the extra funds to fund the flood of compensation payments resulting from the abysmal complaints handling.
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'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.
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 applied to transfer out my SIPP away from Vanguard yesterday because of the fee changes
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!
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.
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.
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?
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
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.
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.
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
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
Thank you so much Damo, really appreciate your clear and honest advice. Future Martin Lewis, have a great christmas
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.
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
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
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.
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.
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.
What’s the best way to move funds - transfer or sell and withdraw on vanguard and then deposit in a new one? I don’t want to lose anything I’ve made over the past few years.
I’m still very new to the details of investing, despite having passively been doing so with vanguard for 3 years!
If your money is in an ISA you’ll want to transfer.
Do an In-specie transfer, this means the legal ownership of your investments are transferred from one provider to another, allowing you to stay invested in the market during the transfer
@ thank you! I currently invest in the VG life strategy 100% acc fund but I see t212 doesn’t have this option to switch to directly and I’m pretty sure I need to select the same one?
Is the best idea to switch my investments to an alternative fund that t212 offers, before transferring it to t212?
Me too
So got 2 young relatives...both on lifetime 100% vanguard isa's....one has 6.5k..other has 14k....so will be hit with fees hike....my question is, should they transfer isa to a vanguard product that ,say, trading 212 offers...and THEN transfer to an equivalent from vanguard to 212, so money goes straight over and they dont lose time waiting for the sell/transfer of the lifetime to cash, then buy a different vanguard product on 212..?...hope that makes sense.
yes i want to know this too...
Thanks for updating Bro…
I’ve opened an invest engine sipp and as soon as I’m able, I’ll be transferring out my pension from vanguard. Hope this happens quickly!
Is there actually a downside to Invest Engine? "0% fee" just seems too good to be true
Looks too much like a bait and switch. Remember if a product is free you are the product.
Edit - looks like they do transfers now - thanks Damo for the excellent video again!
@@d9dgahighly likely they will raise fees in 2-5 yrs on their DIY offerings to finally start turning a profit. However their goal is to be a disruptor to the market to companies like Vanguard so from that perspective it looks like they have succeeded.
They want to build a user base first you can just transfer once you feel they are not worth it due to changes.
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.
Valuable content❤
A heart from India😊
I currently have sipp , S&S isa and 2 junior isas with vangaurd with the kids be charged the fee separately?
If so can i transfer then to invest engine ?
Thanks for the video hopefully vanguard change there mind as i like there index all world but not willing to pay the fee so think going to have to change to all world etf.
amazing insight as always thank you! subbed to the other channel too!
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.
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).
Nuts!! I am not effected.. my son is and he pulled the pin on Vanguard and is off to T212
That last comment about switching fees from active to passive rings true. I keep asking myself whether there's a future for fund managers in a world where passive investment becomes rhe norm.
Thanks for letting us know and giving your thoughts on this.
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.
AWS32K and SHIB about to dominate headlines. Everyone will FOMO once they see what’s coming!
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.
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
Great stuff Damo. I think a lot will be moving, including those who will not be affected by higher fees. Vanguard may yet regret this, if not already.
Just 1 thing....transferring a Sipp from Vanguard....need to check "in specie" is available and possible....esp if retired and not yet drawing , or pot remains uncrystallised.
Potential difficulty here.
I have been investing every month with vanguard for 3 years now with good results but just withdrew everything after hearing about these changes.
Great video Damien, I was hoping you would share your take on TH-cam! 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!
Could we please get an updated best ISAs video? As I want to switch from Vanguard.
As soon as I saw the email, I kept checking to see if this video was out.
One thing to note is when you transfer your funds, is that your current provider will sell your current fund then transfer the money to your new provider who will then purchase the funds you want. Between those transactions you could potentially lose hundreds of pounds depending on the market direction.
This depends on the provider, and if they offer in-specie transfer (re-registration) of shares/funds. I recently moved my SIPP from Quilter to Interactive Investor and the funds were re-registered so were never out of the market. They basically gave me the choice of cash transfer vs re-register during the process.
So is the answer whilst we wait for Invest Engine to start allowing transfers from other providers to transfer from our third party SIPP to Vanguard and back out to Invest Engine 😅
It'll just take 6 months 😅
I honestly don’t know what to do.
I’m tempted to move my money to T212.
But I like vanguard. I feel it’s safe.
I currently pay £32 it’s going up to £48. Is £16 enough to make me move 🤷♂️
Same here mate. Got a SIPP and ISA with vanguard.
My isa is vanguard , I moved from IE to V 18 months ago. Happy to pay for safety and longevity. IE and T212 just don’t have the AUM or customer numbers for me.
It's is pretty poor from Vanguard giving only 6 weeks notice. I personally think is should have been 90 days to give people time to migrate to another service.
When I received the email I was quite annoyed with the news even though it won't affect me. It felt like a let down considering how I spoke to family and friends about them in the past.
Reflecting and thinking more I can see why. Look where inflation has gone and they are still charging the same 0.15%. But if you only have £1k invested that is only 12.5p (pre taxes) per month. If that person makes a call or messages asking a question (which new users do) then they made a loss. Obviously they run an agency model in the UK so they are paying a cut of that to FNZ too.
So I suspect pre COVID they had lots of relatively well informed well off customers with good balances.
The post COVID boom in finance content has attracted new people to start investing (good thing) but are starting out with low monthly sums which many app based products are aimed at.
So I'm not sure Vanguard actually really wanted these customers and they need the £4 a month just to cover their business needs.
That's my take on things anyway.
Why would inflation affect a company charging a percentage fee (as opposed to a flat fee which obviously would slowly be deteriorated by inflation)
why is it that UK always gets treated like 3rd class citzens. they wouldnt dare treat americans like this
@Paul-zk2tn They have been charging the 0.15% since launch in 2017. So a person paying the maximum would still be paying £375 in fees but with inflation this should be around £490. Obviously higher end customers are profitable so they don't want to push over the 0.15% just to cover off the none profitable customers. So with a fixed fee of £4 it's easy to bump this up to £5 in a few years when many of the current people on it around the current £32k limit will have hit the £40k mark with new investments and the market rising. So I suspect it won't be eroded due to inflation but will be increased at some point in the future.
I’m just completely baffled by this decision. Vanguard were always about having a no frills platform (which I much prefer to some other complicated sites) and offering a cheap service for the masses. How times have changed.
“We are only interested in the affluent customers - Thanks 🙏 “ - Vanguard
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?
AWS32K and SOL are my new faves! Already made $30k, and I’m all in for the long run 🔥
See it as a good thing all the little people can start to contribute and help keep me exempt from fees over their cap 👍
Don't fret about being late. I think many of your subscribers will already know the changes. Good to have your views though. I'm not impacted by the change (except the pro-rata fee withdrawal approach they are going to adopt, which is a pain), and I agree that this change is trying to move smaller, and perhaps less experienced investors to their managed ISA product. I'd be interested to see what market research they did for this. I'm still a fan of their ETF's/Funds, but I see this as a change for the worse for the Vanguard Platform.
Already started the move from Vanguard to IE.
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.
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.
Hi, I have my personal pension with vanguard, I’m really not happy with the way they’re treating smaller investors. Please can we have an up to date vid on pension providers?