Moneyfarm is an online investment platform that allows you to invest in Stock & Shares ISAs and General Investment accounts. Most platforms will charge you a set percentage for managing your money, ranging from 0.15% (Vanguard) up to a couple of percentage points.
Up until a recently Moneyfarm offered the first £12k of your portfolio fee free! However, I received an email the other week outlining fee changes to my Moneyfarm S&S ISA. I do not have the majority of my portfolio in Moneyfarm, however I do "play the game" and have just under £12k in there (all fee free!)
Given this news, if you have smaller amounts within Moneyfarm and have previously qualified for this "fee free amount", then you may want assess alternatives and switch to another provider. Admittedly, they have lowered the cost of a lot of the higher brackets, but definitely for the lower amounts it may be worth considering, especially if you are on the "fee free" offer.
For me, this means a transfer to Vanguard is already underway!
Up until a recently Moneyfarm offered the first £12k of your portfolio fee free! However, I received an email the other week outlining fee changes to my Moneyfarm S&S ISA. I do not have the majority of my portfolio in Moneyfarm, however I do "play the game" and have just under £12k in there (all fee free!)
Given this news, if you have smaller amounts within Moneyfarm and have previously qualified for this "fee free amount", then you may want assess alternatives and switch to another provider. Admittedly, they have lowered the cost of a lot of the higher brackets, but definitely for the lower amounts it may be worth considering, especially if you are on the "fee free" offer.
For me, this means a transfer to Vanguard is already underway!
Update 26/02/2020:
As I mentioned above, the whole reason I was moving my Moneyfarm funds over to Vanguard via an ISA transfer was because of the fee increase.
Little did I know, I also inadvertently swerved the biggest loss on a number of major stock markets for the past 5 years due to the Coronavirus worries!
My funds were sold on 19th February and turned into cash so they can be transferred over. As of today (26/02/2020), they have yet to reach Vanguard so are currently still sat as cash in my Moneyfarm account, see below.
The amount I had in there wasn't huge, but I think 16.43% return was the best that I had achieved in the past couple of years! I consider myself very lucky indeed!
I still intend on allocating these funds to my faved LS100 Vanguard fund when they do clear, however I may wait a few weeks to see how this whole Coronavirus plays out. Timing the market goes against all the good advice that I have read over the past few years (mainly from Tim Hale in "Smarter Investing"), however in this instance I have nothing to lose all things considering!
My remaining funds in Vanguard have stayed right where they are, and I intend on buying more when the direct debit comes out next month as always, it would be rude not to now they are effectively on sale!
Comments
Post a Comment