Pardon if a similar question has been previously answered elsewhere. I have found some relevant information in other topics but not quite what I am aiming for.
I would like to invest some of my UK savings in Vanguard ETF’s or something similar. However, I do not live in the UK anymore and I am reluctant to use offshore bank accounts or move money to others countries until I have a good understanding of the fees and transparency on tax/legal implications. The latter would clearly depend on the investment decision I am yet to take.
I have researched some of the available options and found Novia Global with a total annual fee of 5–7% for one of the LifeStrategy funds. I presume Charles Stanley and Interactive Brokers would charge something similar but I have not contacted them yet. I am a novice investor and I prefer something passive with low fees and to avoid £ conversion (at least directly).
My question boils down to what would be the cheapest option to access Vanguard UK with a bank account in England while living outside of the UK and not being a tax resident there? Thank you for your attention.
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Invest in Vanguard UK ETF as a non-UK Resident
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- Lemon Half
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Re: Invest in Vanguard UK ETF as a non-UK Resident
CanadaMoose wrote:I have researched some of the available options and found Novia Global with a total annual fee of 5–7% for one of the LifeStrategy funds.
<Cough, splutter, gasp>
I hope you have accidentally dropped a decimal point from that! Although even a 0.5-0.7% platform fee would be expensive! Vanguard UK themselves charge only 0.15%pa, capped at £375, and you can get even cheaper.
That's all just for UK residents of course, and I don't know the answer to your question, but if the cheapest is anywhere near 5–7%pa I'd have a serious rethink about the very idea if I were you!
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- Lemon Half
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Re: Invest in Vanguard UK ETF as a non-UK Resident
If you are going to mention fees of 5% you better issue a public health warning otherwise the Fools here will be having coronaries! That's way way too much!
If you have an Interactive Broker account you can load it with dollars or sterling from your UK bank and buy VG's products. No doubt IB will charge a little bit but not anything like that.
Looks like you can't open up a VG (UK) account if you don't live in the UK.
https://www.vanguardinvestor.co.uk/need ... an-account
If you have an Interactive Broker account you can load it with dollars or sterling from your UK bank and buy VG's products. No doubt IB will charge a little bit but not anything like that.
Looks like you can't open up a VG (UK) account if you don't live in the UK.
https://www.vanguardinvestor.co.uk/need ... an-account
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Re: Invest in Vanguard UK ETF as a non-UK Resident
Thank you for the answers. It seems like I indeed need to rethink the strategy. However, checking the exact fees with Interactive Brokers is a good idea.
Maybe you could suggest some offshore investing with GBP?
Maybe you could suggest some offshore investing with GBP?
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- Lemon Slice
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Re: Invest in Vanguard UK ETF as a non-UK Resident
I wonder if you need to know about currency exchange and transfer by services such as XE, OFX and Transferwise. The latter charges 0.42% on the mid-market rate for the direction you want. Let us know if your UK bank comes close to that.
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Re: Invest in Vanguard UK ETF as a non-UK Resident
I am actually using TransferWise but for different purposes. My UK bank offers inferior exchange rates. Thank you for suggestions.
I have actually found a list of investment platforms on the investmentsforexpats website and going through them to get the optimal fees.
Novia has confirmed 4-5% annual charge so it is indeed a rip-off.
I have actually found a list of investment platforms on the investmentsforexpats website and going through them to get the optimal fees.
Novia has confirmed 4-5% annual charge so it is indeed a rip-off.
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