Should I find another provider now that Vanguard are raising their fees?

Hi Boring Money Team,

I absolutely love your website and weekly newsletters. I used your website to choose my DIY investor platform and started investing monthly in 2021 in a Stocks & Shares ISA with Vanguard. I received this email stating the monthly and yearly fees will be increased quite significantly. I currently only have less than 10k in my account. Would you recommend reviewing the latest DIY investment report and for investors like myself changing platforms to reduce the fees?

Kind regards,

Abi

Hi Abi,

With less than £10,000 in your account, you will end up paying more in charges yes, so there will be cheaper options. At £4 a month, you will still only be paying £48 a year with Vanguard for the administration plus the investment fees of whatever you selected. So it’s not a massive sum. But you could pay less.

You could either move to the all-in managed option on Vanguard, which at a total of 0.51% a year for investments and admin is a pretty good option still. Or if you feel cheesed off and want to move, you could look at AJ Bell with their ready-made portfolios if you’re keen to learn and potentially add more complexity as you find your feet. Or look at our ISA comparison table for other options.

If you are happy where you are and it’s working well for you, I don’t think you need to race into action! Have a read of the fuller article I wrote on this but Vanguard is still a decent option – just no longer the cheapest.

Hope this helps!