DIY Investors Hit by Vanguard's New £4 Fee

Vanguard has changed its fees, so in this video, we’ll look at what has changed, why, who is affected and what you can do about it. And of course what I think about the change.

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[AKAMustang]

A few weeks ago I filled in their "sorry you're leaving" feedback survey. Gave the reason as uncompetitive broker fees. Now they raise them even further. Gave me a chuckle at least. 🤣

[raylarone]

This goes completely against their whole philosophy of low cost investing... plus aren't they supposed to be "owned by their investors"?

[Alex-iqs]

Vanguard is betraying Jack Bogles' memory and legacy.

[andrewpreston]

Thing is, Vanguard is not just another platform. It's roots are the direct creation of John Bogle. And this huge hike in fees for the small investor, and those just starting out is a direct betrayal of the trust in Vanguard whch many have, and also, really, of the values of John Bogle.

[mackinnon]

At £48 a year, someone with a small ISA £1, 000 will be charged almost 5%

That's totally insane

Poor Jack Bogle, an insult to his memory.

[darude]

With just £8k invested in their platform, that is disappointing. My annual cost will go up from £12 to £48.

[vScoobyDoox]

I’ve got a small pension pot from a previous employer of just over £2000 that I built up doing my apprenticeship. I moved it into a Vanguard SIPP about 6 months ago as I no longer pay into it.
For Vanguard to charge me £48 to keep this here is absolutely criminal.

[coopert]

I remember the old Vanguard. Lowering fund fee's, Factor funds, cheap platform fees.

Now they have higher platform fees, no Factor funds, fund fees have remained frozen with almost all not being the cheapest vs competition. Oh and an app nobody needed.
Great work management!!! /S

[broonzy]

Thanks Vanguard. Now looking for other platforms.

[mickeytheviewmoo]

I contacted Vanguard about their charges some time ago. Their response was quite alarming. It equated to, like it or lump it. This recent change is not surprising.

[Jordan_Warrington]

can you do a video with alternatives to vanguard. I manage my ISA, SIP and a child ISA using their ETFs and would like to leave as this would make them very uncompetative, but im unsure of the best options.

[presterjohn]

I have just under £100k with them so I'm staying but I won't be setting my son's up with Vanguard once they turn 18 now. They will only be drip feeding for the first few years so it's not viable anymore.

[stevenson]

Bad for a starter but 0.15% is still really good. I won't be moving.

[VoiceOfThe]

Vanguard should counter-balance this rise with a reduction in the TER of their funds.

After over five years since they last did, it is well overdue!

[paulmussett]

Targeting small investors. Vanguard will lose some market share to “newer” SIPP providers.

[frakfeem]

This is probably the last straw for me. I was just about comfortable with the higher fees than elsewhere because of trust and potential support but now they've increased the fees which will definitely affect me. So going from just about affordable to anything more is not enticing. Every time I try to manually add money to the account, it fails multiple times and ironically the only time I've ever needed to contact support is when I've been trying to get money into the account. Far more trouble than it's worth now with the added cost on top.

[JivanPal]

Was wondering when you'd do a video on this, their email landed in my inbox just yesterday. Quick to the punch as always, Ramin!

[MagicNash]

Having portfolio on multiple platforms is the right way to go, good to hear!

[armuk]

Vanguard is never going away/bankrupt, which can't be said the newer, small platforms - esp important if planning to hold investments for decades. That certainty is worth it for some.

Can be argued fee change is relatively insignificant given that peace of mind, and as portfolio grows over time the change becomes inconsequential anyway (in relation to the 4/month fee if <32k, and no difference once >32k)

[MARTINA-gctq]

They are having to increase their fees because of the amount of compensation they are paying out for their shocking complaint handling record. In four years I have made three complaints already. Two are referred to FSO. They also incorrectly deduct income tax from a small UFPLS payment then failed to issue a P60 or send the “tax” to HMRC. Be careful, and check closely all drawdowns.