Trading 212 vs Vanguard
Discussion
I’m a little naïve in the world of investing, but I’m looking to start two S+S ISAs for my wife and me. I’ve done a fair bit of research, some of it on here, but I’d be grateful if someone could sense-check my thinking on this.
I’m planning on putting 2x £20k into either a Trading 212 ISA (invested in VWRP) or to start a Vanguard ISA and invest in VAFTGAG. My goal is long-term growth — this constitutes a little under half my ‘liquid’ wealth atm, so I’d have roughly £50k left over in PBs for emergencies.
From what I can tell, the benefit of Trading 212 is lower fees, while the funds themselves perform similarly.
Is there anything else I should be aware of here, or are both of these good choices?
Are there any other choices I should be aware of?
I’m planning on putting 2x £20k into either a Trading 212 ISA (invested in VWRP) or to start a Vanguard ISA and invest in VAFTGAG. My goal is long-term growth — this constitutes a little under half my ‘liquid’ wealth atm, so I’d have roughly £50k left over in PBs for emergencies.
From what I can tell, the benefit of Trading 212 is lower fees, while the funds themselves perform similarly.
Is there anything else I should be aware of here, or are both of these good choices?
Are there any other choices I should be aware of?
I recently started a vanguard s&s isa at the age of 53 having never invested before. I put £10k in LS80 and £10k in Global LS80. All easy enough to do and doesn't require faffing.
As far as I can tell the fee is £4 a month which in the scheme of things is nothing. I read the benefits of T212 are that you can choose from a wider range of investments including individual companies. But I don't really want that.
Vanguard was easy to set up.
As far as I can tell the fee is £4 a month which in the scheme of things is nothing. I read the benefits of T212 are that you can choose from a wider range of investments including individual companies. But I don't really want that.
Vanguard was easy to set up.
As a platform, Vanguard is fine if you think that you'll only ever want to hold Vanguard ETFs or funds.
I guess you realise that you could hold either FTSE All-World UCITS ETF (VWRP) or FTSE Global All Cap Index Fund (VAFTGAG) on the Vanguard platform? The benefit of the former is a slightly lower ongoing charge of 0.19% (versus 0.23% for the fund). There is an ETF dealing charge to be aware of, but it can be optional.
If you're looking for a low-cost (or zero cost) platform, I'd suggest having a look at InvestEngine, IG, and Scottish Widows too (but always check the terms for things like dealing fees).
PS: This is not a recommendation, but I see that IG is currently offering £250 cashback (or £300 cashback via a MoneySavingExpert link).
I guess you realise that you could hold either FTSE All-World UCITS ETF (VWRP) or FTSE Global All Cap Index Fund (VAFTGAG) on the Vanguard platform? The benefit of the former is a slightly lower ongoing charge of 0.19% (versus 0.23% for the fund). There is an ETF dealing charge to be aware of, but it can be optional.
If you're looking for a low-cost (or zero cost) platform, I'd suggest having a look at InvestEngine, IG, and Scottish Widows too (but always check the terms for things like dealing fees).
PS: This is not a recommendation, but I see that IG is currently offering £250 cashback (or £300 cashback via a MoneySavingExpert link).
slievenashaska said:
The Monevator blog has one.
This one? https://monevator.com/compare-uk-cheapest-online-b...After some more research, I'm thinking I might plump for Invest Engine, which is totally free to use by the looks of it? No platform fees, FX fees etc.
So it'll just be the 0.19% VWRP fee I need to pay.
I was tempted by going for a big name, but I think I'm right in saying that even if Invest Engine went belly up, I'd still own my funds and get my money back?
Mr Creosote said:
This one? https://monevator.com/compare-uk-cheapest-online-b...
After some more research, I'm thinking I might plump for Invest Engine, which is totally free to use by the looks of it? No platform fees, FX fees etc.
So it'll just be the 0.19% VWRP fee I need to pay.
I was tempted by going for a big name, but I think I'm right in saying that even if Invest Engine went belly up, I'd still own my funds and get my money back?
Ask yourself a question: if they don't charge any fees how are they going to cover their costs, let alone make a profit? They are getting you to concentrate on the "no fees" part & avoiding telling you how they actually make money out of you. Sometimes it's because the spread is wider - they charge you a higher price than others when you buy & give a lower price when you sell. Just stick to AJ Bell/Vanguard/Inetractive Investor & at least you'l know what you are paying.After some more research, I'm thinking I might plump for Invest Engine, which is totally free to use by the looks of it? No platform fees, FX fees etc.
So it'll just be the 0.19% VWRP fee I need to pay.
I was tempted by going for a big name, but I think I'm right in saying that even if Invest Engine went belly up, I'd still own my funds and get my money back?
Mr Creosote said:
slievenashaska said:
The Monevator blog has one.
This one? https://monevator.com/compare-uk-cheapest-online-b...Mr Pointy said:
Ask yourself a question: if they don't charge any fees how are they going to cover their costs, let alone make a profit? They are getting you to concentrate on the "no fees" part & avoiding telling you how they actually make money out of you. Sometimes it's because the spread is wider - they charge you a higher price than others when you buy & give a lower price when you sell. Just stick to AJ Bell/Vanguard/Inetractive Investor & at least you'l know what you are paying.
I assumed they made their money elsewhere. Trading 212 levies FX fees, for example.So if I put £20k in Trading 212 or InvestEngine and bought VWRP, I’d get less for my money than with AJ Bell/Vanguard? Is this correct? I’d just assumed the price was the price?
Mr Creosote said:
Mr Pointy said:
Ask yourself a question: if they don't charge any fees how are they going to cover their costs, let alone make a profit? They are getting you to concentrate on the "no fees" part & avoiding telling you how they actually make money out of you. Sometimes it's because the spread is wider - they charge you a higher price than others when you buy & give a lower price when you sell. Just stick to AJ Bell/Vanguard/Inetractive Investor & at least you'l know what you are paying.
I assumed they made their money elsewhere. Trading 212 levies FX fees, for example.So if I put £20k in Trading 212 or InvestEngine and bought VWRP, I d get less for my money than with AJ Bell/Vanguard? Is this correct? I d just assumed the price was the price?
I was a big fanboy of T212, until the begining of this year when they required a 'selfie' for me to logon via my desktop or my laptop. Niether had camaras and they refused to use the camara on my clever phone.
So in short, they were forcing me to trade via their slappy thingy on my clever phone, I was not comfortable trading holding a chocolate bar whilst peering through a letterbox so I closed my T212 'Invest' account and transfered my T212 S&S ISA to Interactive Investor.
T212 lost my roughly £35k's worth of investments to ii.
So in short, they were forcing me to trade via their slappy thingy on my clever phone, I was not comfortable trading holding a chocolate bar whilst peering through a letterbox so I closed my T212 'Invest' account and transfered my T212 S&S ISA to Interactive Investor.
T212 lost my roughly £35k's worth of investments to ii.
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