UK SIPP Provider Recommendations?

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bilbomacuser
Posts: 1
Joined: Wed Nov 16, 2016 11:17 am

UK SIPP Provider Recommendations?

Post by bilbomacuser »

I've had a SIPP for just over 1 year, and my Index funds are growing nicely. My account is with Hargreaves Lansdown. Although it will probably be another couple of years before the 0.45% fee becomes greater than rival companies - I know that because 'cost matters' I'll need to move at some stage.

My problem is that whilst HL provides what I need, the rival companies seem to have very little information about their online platforms, and seem to have more limited ranges of investments compared to HL, or fees that HL don't have (like regular payment fees of £1.50).

Also, whereas I had been considering Interactive Investor - I found online comments of people severely regretting moving to them, claiming they completely messed up the transfer process, some taking several months to resolve.

The things I do with HL that I want to be able to do with a new provider are: have regular monthly payments, going into several index funds, which I adjust the values every 3 months according to my spreadsheet using Value Averaging. I want to be able to re-invest dividends/gilt interest (with HL minimum investment is £100 so I wait until I have that in my account), I want to be able to buy UK treasuries/gilts online without paying telephone trade fees (admittedly I've had to avoid index linked gilts with HL as they only sell these by telephone trade at a much higher fee). I don't have automatic dividend reinvestment as the fees appear relatively high.

What seems strange is that with HL you can view fund information readily even without logging in, and the range is good (including overseas stocks). With most other SIPP providers there is hardly anything accessible - so it's impossible to know what you're going to get until you've signed up. Before I started with HL I signed up with Bestinvest only to discover a very basic/primitive web site with limited selection of investments.

Could people give me recommendations? I want the 'Vanguard' of SIPP providers!
TedSwippet
Posts: 3167
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: UK SIPP Provider Recommendations?

Post by TedSwippet »

I'd suggest reposting this on a UK based site. This board is highly US centric, and most folk here won't know (or care) what a SIPP is.

Perhaps here, here, or here for a repost, then.
minimalistmarc
Posts: 1057
Joined: Fri Jul 24, 2015 4:38 pm

Re: UK SIPP Provider Recommendations?

Post by minimalistmarc »

I use HL and have no complaints. If you don't use funds and prefer ETFs the charge is capped at 250 pounds per year approximately.

If you prefer to buy funds HL is too expensive as they charge an uncapped 0.45% custodian fee.
jaberwok
Posts: 22
Joined: Fri Jun 17, 2011 12:55 pm

Re: UK SIPP Provider Recommendations?

Post by jaberwok »

There are some comparison reviews available in UK money magazines such as Which . What they make clear though is that the overall costs also depend on (1) whether you put shares or index funds in them in what proportion (2) whether and how you are going to take the money out (3) how much your assets are. Unfortunately there are complex interactions such that the best provider for assets less than £250,000 are different for assets between 250,000 and 500,000 etc. No perfect solution. I use HL but Interactive Investor seems a potential alternative.
tristessa79
Posts: 11
Joined: Thu Mar 17, 2016 4:45 pm

Re: UK SIPP Provider Recommendations?

Post by tristessa79 »

Worth noting that Vanguard UK says it's launching a SIPP in 2019, with the option to sign up for email notification when it launches at https://www.vanguardinvestor.co.uk/inve ... ount-types
We're launching a Pension (SIPP). Thinking about saving for your retirement? It's taken us a little longer than we'd hoped but we are now in the final stages of building the new Vanguard Personal Pension. Sign up to be the first to hear when we add this new account in 2019.
QuantOfAsia
Posts: 78
Joined: Sun Apr 14, 2019 7:57 pm
Location: Hong Kong

Re: UK SIPP Provider Recommendations?

Post by QuantOfAsia »

Watching this with interest - I've long wondered why UK SIPPs have remained so much more expensive than their IRA equivalents in the US, and would be keen to see whether the Vanguard SIPP bridges this.
TedSwippet
Posts: 3167
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: UK SIPP Provider Recommendations?

Post by TedSwippet »

QuantOfAsia wrote: Sun May 05, 2019 6:54 pmWatching this with interest - I've long wondered why UK SIPPs have remained so much more expensive than their IRA equivalents in the US, and would be keen to see whether the Vanguard SIPP bridges this.
Although more than the $0 I pay to Vanguard for my IRA, the £240/year I pay to my UK SIPP provider seems tolerable, at 0.03%. And in their defence, UK pension providers have a lot of government red-tape with which to comply, which raises their costs considerably. You can see this when comparing the SIPP annual platform cost with that of simpler ISAs and trading accounts.

As for the upcoming Vanguard SIPP, Vanguard UK have been trailing this for a long time now, probably well over a year, but it keeps getting delayed. That again suggests complexity from government red-tape. Like you, I'll be interested to see its pricing, but I don't expect it to be a major game-changer, because Vanguard's current direct-to-customer offerings are not game-changers either. Their current 0.15% annual platform fee, capped at £375, is actually pretty pricey for lower balances.

Even for my sizeable retirement-level pension Vanguard would be more than 1.5x what I already pay elsewhere. And while I can (and do) hold Vanguard funds in my current pension, unlike Vanguard's own platform I am not restricted to only Vanguard. There are several other good index fund providers. HSBC, Legal & General, Fidelity, and Blackrock, for example. I hold these alongside my Vanguard ones, something not currently possible on Vanguard's UK direct-to-customer platform.
Last edited by TedSwippet on Mon May 06, 2019 3:19 am, edited 1 time in total.
cjking
Posts: 1933
Joined: Mon Jun 30, 2008 4:30 am

Re: UK SIPP Provider Recommendations?

Post by cjking »

I know this is a 2016 thread, but for future reference for anyone coming across it:-

The following blogger does a comparision:-
https://monevator.com/compare-uk-cheape ... e-brokers/

If like me you have a large balance and are happy to use only exchange-traded securities, I would recommend Youinvest. If you look at the charges calculator on their web-site, £1,000,000 held in ETFs in a SIPP would attract an annual charge of £100, the same held in equivalent non-ETF index funds would cost £1,375. They are not the only broker where exchange-traded products (ETFs, REITS, other investment trusts and ordinary shares) are cheaper to hold. (They claim Hargreaves Lansdown would charge £200/£3,000 compared to their £100/£1,375.)
cjking
Posts: 1933
Joined: Mon Jun 30, 2008 4:30 am

Re: UK SIPP Provider Recommendations?

Post by cjking »

To answer another question, the Youinvest web site is nice enough, certainly better than Interactive Investor, which is the only other broker I have recent experience of.

As I use only exchange-traded securities listed in the UK I'm fairly confident that my choice of broker has no effect on what I can hold.
Valuethinker
Posts: 41155
Joined: Fri May 11, 2007 11:07 am

Re: UK SIPP Provider Recommendations?

Post by Valuethinker »

TedSwippet wrote: Mon May 06, 2019 3:14 am
QuantOfAsia wrote: Sun May 05, 2019 6:54 pmWatching this with interest - I've long wondered why UK SIPPs have remained so much more expensive than their IRA equivalents in the US, and would be keen to see whether the Vanguard SIPP bridges this.
Although more than the $0 I pay to Vanguard for my IRA, the £240/year I pay to my UK SIPP provider seems tolerable, at 0.03%. And in their defence, UK pension providers have a lot of government red-tape with which to comply, which raises their costs considerably. You can see this when comparing the SIPP annual platform cost with that of simpler ISAs and trading accounts.

As for the upcoming Vanguard SIPP, Vanguard UK have been trailing this for a long time now, probably well over a year, but it keeps getting delayed. That again suggests complexity from government red-tape. Like you, I'll be interested to see its pricing, but I don't expect it to be a major game-changer, because Vanguard's current direct-to-customer offerings are not game-changers either. Their current 0.15% annual platform fee, capped at £375, is actually pretty pricey for lower balances.

Even for my sizeable retirement-level pension Vanguard would be more than 1.5x what I already pay elsewhere. And while I can (and do) hold Vanguard funds in my current pension, unlike Vanguard's own platform I am not restricted to only Vanguard. There are several other good index fund providers. HSBC, Legal & General, Fidelity, and Blackrock, for example. I hold these alongside my Vanguard ones, something not currently possible on Vanguard's UK direct-to-customer platform.
Could you share who your current provider is?
Stider1
Posts: 4
Joined: Mon Oct 16, 2017 5:21 am

Re: UK SIPP Provider Recommendations?

Post by Stider1 »

The platform choice depends a lot on your investment habits. This website is quite good for UK based investors:

http://www.comparefundplatforms.com/compare.aspx
TedSwippet
Posts: 3167
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: UK SIPP Provider Recommendations?

Post by TedSwippet »

Valuethinker wrote: Mon May 06, 2019 7:42 amCould you share who your current provider is?
Interactive Investor. I hold only OEICs, from Vanguard, HSBC and L&G, all accumulation units because I no longer contribute to it. Interactive Investor's flat fee model suits me perfectly. If I held this same stuff in Hargreaves Lansdown, I would be down thousands of pounds per year in comparison.

Interactive Investor is not the only game in town, though the number of flat fee providers will shrink by one once they consume Alliance Trust. If pushed onto a platform that charges a percentage for OEICs, I could fairly easily replicate my asset allocation with ETFs instead. As Stider1 already noted, which platform is most effective depends heavily on your usage pattern -- trading, drawdown, ETFs or OEICs, and so on.
jaberwok
Posts: 22
Joined: Fri Jun 17, 2011 12:55 pm

Re: UK SIPP Provider Recommendations?

Post by jaberwok »

Thanks to Stider for the recommendation of a comparison site. Very helpful.
danielbird193
Posts: 36
Joined: Thu Mar 21, 2019 2:15 pm

Re: UK SIPP Provider Recommendations?

Post by danielbird193 »

You talk about wanting a functional website and good customer service as well as low cost. I use AJ Bell Youinvest and think the site compares favourably with HL, but at much lower cost. I haven't used Interactive Investor so can't make any comment on how functional that site is.
Valuethinker
Posts: 41155
Joined: Fri May 11, 2007 11:07 am

Re: UK SIPP Provider Recommendations?

Post by Valuethinker »

Thank you to all for a very helpful thread.
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