Which SIPP are you using?

[helloyou]

Hello

I've opened recently my SIPP with vanguard and although its all good, with my £190k in it, it'll cost me £285/year.

I also plan to add £40k in 3 months time which would make it pop to £345/year.

I've taken the opportunity of the new SIPP with freetrade to transfer it there. It cost £120/year which is way cheaper.

I plan to keep it for a year because I benefit from a free share:
https://freetrade.io/sipp

But I'll certainly rethink about keeping it longer due to the fact it is billing separately from the SIPP account. So the £120/year fee can't benefit from the tax break.

I'll keep you informed on how it goes. I'm also looking forward for trading212 SIPP coming up soon!

[bownyboy]

I use Interactive Investor as its a fixed fee of £9.99 per month regardless of pot size.

It makes sense to use a % fee broker when you have a smaller pot and then fixed fee over a certain size.

I think Monevator website goes into great detail on this (I don't have the link to hand).

[vand]

I'm in the process of consolidating almost everything into my Fidelity account, where it'll be a 0.2% platform fee. I hold quite a few active funds so it's important to me to find a balance between costs and access to what I want to invest in.

I also have a SIPP with AJB @ 0.35% for some funds that Fidelity don't provide.

I think that between the platform charges and ongoing fund fees, my overall costs will be around 0.6%pa.

I'm wary of putting my retirement account with any platform that brands itself "TradingXXX" no matter what hooks they are trying to grab you with. These platforms make their money by enticing turnover in any way they can. It's like 0% credit cards. Some people may be able to make it work, but most are going to be lured into the freebie and then succumb to less optimal bahaviour, and the subtle change over many years can be quite detrimental. 

It's one of those counter-arguments where more friction can be argued to be a GOOD thing behaviourally, as it keeps you from turning over your portfolio depending on which side of the bed you wake up on.

[helloyou]

I use Interactive Investor as its a fixed fee of £9.99 per month regardless of pot size.

It makes sense to use a % fee broker when you have a smaller pot and then fixed fee over a certain size.

I think Monevator website goes into great detail on this (I don't have the link to hand).

I started with ii a couple of year ago. Their FX rate is completely bonker (1.5% under £25k) and it's not possible to convert currency outside their platform.

So buying anything else than UK stock becomes VERY costly. I ended up quitting this platform and taking thousand of loss on it. Happy to have left it and would never go back there.

[helloyou]

I'm in the process of consolidating almost everything into my Fidelity account, where it'll be a 0.2% platform fee. I hold quite a few active funds so it's important to me to find a balance between costs and access to what I want to invest in.

I also have a SIPP with AJB @ 0.35% for some funds that Fidelity don't provide.

I think that between the platform charges and ongoing fund fees, my overall costs will be around 0.6%pa.

I'm wary of putting my retirement account with any platform that brands itself "TradingXXX" no matter what hooks they are trying to grab you with. These platforms make their money by enticing turnover in any way they can. It's like 0% credit cards. Some people may be able to make it work, but most are going to be lured into the freebie and then succumb to less optimal bahaviour, and the subtle change over many years can be quite detrimental. 

It's one of those counter-arguments where more friction can be argued to be a GOOD thing behaviourally, as it keeps you from turning over your portfolio depending on which side of the bed you wake up on.

0.6% pa isn't it quite high? So you would pay £1200/year on a £200k portfolio? Vanguard is "only" 0.15% fee... and I find them too expensive lol

I've been using Trading212 for 7 months now on my ISA. I have £100k of ISA there and I've been happy so far. If I don't want to overpay I just put a limit order. They have load of stock as well. FX fee looks decent.

I reckon it would be a poor platform if I was trading or doing some CFD, where speed of execution would be super important. But I do long term investing. I just buy and hold position and it doesn't matter even if it takes 15 min to execute my order as long as I buy at the right price.

No complains so far and I am considering to move my SIPP to trading212 once they open it.

[vand]

I'm in the process of consolidating almost everything into my Fidelity account, where it'll be a 0.2% platform fee. I hold quite a few active funds so it's important to me to find a balance between costs and access to what I want to invest in.

I also have a SIPP with AJB @ 0.35% for some funds that Fidelity don't provide.

I think that between the platform charges and ongoing fund fees, my overall costs will be around 0.6%pa.

I'm wary of putting my retirement account with any platform that brands itself "TradingXXX" no matter what hooks they are trying to grab you with. These platforms make their money by enticing turnover in any way they can. It's like 0% credit cards. Some people may be able to make it work, but most are going to be lured into the freebie and then succumb to less optimal bahaviour, and the subtle change over many years can be quite detrimental. 

It's one of those counter-arguments where more friction can be argued to be a GOOD thing behaviourally, as it keeps you from turning over your portfolio depending on which side of the bed you wake up on.

0.6% pa isn't it quite high? So you would pay £1200/year on a £200k portfolio? Vanguard is "only" 0.15% fee... and I find them too expensive lol

I've been using Trading212 for 7 months now on my ISA. I have £100k of ISA there and I've been happy so far. If I don't want to overpay I just put a limit order. They have load of stock as well. FX fee looks decent.

I reckon it would be a poor platform if I was trading or doing some CFD, where speed of execution would be super important. But I do long term investing. I just buy and hold position and it doesn't matter even if it takes 15 min to execute my order as long as I buy at the right price.

No complains so far and I am considering to move my SIPP to trading212 once they open it.

It depends what you're invested in. It's expensive if you just want to buy index trackers.
 I hold quite a few active funds and investment trusts, where the OCF is typically between 0.6% - 1%

[helloyou]

It depends what you're invested in. It's expensive if you just want to buy index trackers.
 I hold quite a few active funds and investment trusts, where the OCF is typically between 0.6% - 1%

I never believed in these active funds. Have they beaten the S&P consistently over the last 5-10 years? Which ticker is it?

[vand]

It depends what you're invested in. It's expensive if you just want to buy index trackers.
 I hold quite a few active funds and investment trusts, where the OCF is typically between 0.6% - 1%

I never believed in these active funds. Have they beaten the S&P consistently over the last 5-10 years? Which ticker is it?

Firstly, I don't necessarily invest in these funds because I am trying to beat the market. That is the first fallacy that everyone who says "active funds underperform" assumes.  I invest in them because I more strongly subscribe in their investment philosophy than I do in a bucket "buy everything" pasive index strategy.

Secondly, just because they may underperform the market that doesn't mean they aren't doing their job as money managers. Return must always be judged against the risk taken to achieve that return.  If the manager delivers acceptable returns for less risk then they are a good money manager.

My investments have done ok in the last 3 years. 16% time-weighted annualised return with 0.9 sharpe ratio over the last 3 years (VTI has about 0.6 sharpe ratio).

some of my funds:
Blackrock gold & general
Veritas Asian ex Japan
JPM Emerging Markets
RIT Capital
Capital Gearing Trust

I also hold index trackers.. nothing wrong with doing a bit of both. I even hold individual shares. :)

[highlandterrier]

Link to Monevator comparison of brokers:
https://monevator.com/compare-uk-cheapest-online-brokers/

II is £19.99 month if you hold a SIPP, but that also covers any ISA's or GIA's and some light trading.

[helloyou]

Firstly, I don't necessarily invest in these funds because I am trying to beat the market. That is the first fallacy that everyone who says "active funds underperform" assumes.  I invest in them because I more strongly subscribe in their investment philosophy than I do in a bucket "buy everything" pasive index strategy.

Secondly, just because they may underperform the market that doesn't mean they aren't doing their job as money managers. Return must always be judged against the risk taken to achieve that return.  If the manager delivers acceptable returns for less risk then they are a good money manager.

My investments have done ok in the last 3 years. 16% time-weighted annualised return with 0.9 sharpe ratio over the last 3 years (VTI has about 0.6 sharpe ratio).

some of my funds:
Blackrock gold & general
Veritas Asian ex Japan
JPM Emerging Markets
RIT Capital
Capital Gearing Trust

I also hold index trackers.. nothing wrong with doing a bit of both. I even hold individual shares. :)

Wow that's quite nice. So you got 50% gain in 3 years? I have to look into these.

[daverobev]

I believe AJBell YouInvest is cheapest once you hit their cap for ETFs, which is at £40k. Fee is 0.25% up to that 40k. So max £100. But then you can only hold ETFs (and shares?), not mutual funds, as there isn't a cap on them.

Not much in it though.