Vanguard UK have today announced the launch of their own platform for UK investors to compete with the likes of Hargreaves Lansdown and AJ Bell.
They are offering a stocks & shares ISA, a basic general account (non ISA) and a junior ISA. Investors will be able to choose from Vanguard's full range of index funds - including the popular Lifestrategy range as well as Target Retirement funds - also actively managed funds and full range of exchange traded funds.
I understand a SIPP will be offered later this year.
Obviously the drawback will be that investors are restricted to holding just Vanguard investments so will not be able to hold individual shares or investment trusts and funds from other providers.
As you would expect the charges are low - just 0.15% which means £30 p.a. for this year's £20,000 ISA allowance for example. With HL the charges would be £90 and with AJ Bell Youinvest £50. Also there are no dealing charges for the purchase/sale of funds and £7.50 for dealing ETFs.
This move was flagged up last year so it is good to see the launch.
It will be interesting to see the response from the established platforms as I am sure Vanguard's offering will be very attractive to those who are happy just holding their range.
In 2015 I opened an additional ISA with Halifax to hold my Vanguard Lifestrategy 60 fund and for a one-off buy and hold this is still cheaper than Vanguard so I will keep it going. I also have my Youinvest ISA with my mix of investment trusts which I will also retain.
However I will look at a new ISA for this coming year with Vanguard when the time comes around to add to my Lifestrategy holding.
Leave a comment below...what do you think about the new platform?