These two investment platforms see increase in transfers after Vanguard reveals fee increase

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Investment provider Investment engine has seen £13m of assets transferred to its platform in a week after rival Vanguard announced it would start charging a monthly fee for small-scale investments.

The platform said its average daily Isa transfers have increased by 4,000 per cent since Vanguard’s announcement, and typical daily subscriptions have increased by 366 per cent over the same period.

Meanwhile, the competitor Commerce 212* This is Money has been told it has seen an increase in transfer requests of more than 2,000 per cent.

The increase in transfers to these platforms comes as Vanguard changes its fee structure to introduce a £4 monthly fee for Sipp, Isa and general account holders with a balance of less than £32,000.

The world’s second-largest fund manager, which currently charges 0.15 per cent on any balance, capped at £375 a year, told investors last week it will start charging monthly from January.

Those who have invested more than £32,000 will continue to pay the 0.15 per cent charge on their balance, meaning small-scale investors are likely to be hardest hit by the change.

Vanguard said the new rates are “necessary to help Vanguard cover the increasing cost of serving our customers.”

Vanguard clients will now pay £48 for its service, meaning it is no longer one of the lowest cost options for investors.

Both InvestEngine and Trading 212 are now two of the cheapest investment options available.

According to InvestEngine, it made about 1,200 transfers last week, no doubt due to its DIY Wallet Offer*which he said is his biggest pull factor, as his research shows that more than half of investors’ top priority is a low-fee platform.

Andrey Dobrynin, co-founder and CEO of InvestEngine, said: ‘The influx of new clients in recent days is testament to the importance of low fees for investors.

“We’ve known this for a long time and want investors to keep as much of their returns as possible, which is why commission-free options have been part of our ethos since our inception.”

Meanwhile, a Trading 212 spokesperson said: “We have been in contact with Vanguard to ensure these requests are fulfilled as quickly as possible for investors.”

He said a very small percentage of transfers have currently been completed and he cannot give a figure on how much has been transferred.