Multiple SIPPs

[gisp]

Hi all,
if this has been answered please merge.

Can I have multiple SIPP accounts. Of course the £40k limit is shared between them.
Reason for asking is I have HL SIPP which has been empty until now. HL are expensive, so maybe vanguard is a better value for money.
Do I move HL SIPP to VG or open VG and just start putting money in VG?
I know HL exit process can be PITA.

[Lance]

yes

[sludgesurfer]

Just open a Vanguard SIPP as well and start contributions. If you don't plan on using the HL SIPP and the balance is zero, you can probably close it pretty easily. HL are a perfectly reasonable and broadly competitive option for certain investors although if you are just starting out, that won't be you.

[northernladuk]

Link for the OP here https://bfy.tw/QwgT

[Smartie]

1. Yes you can have multiple SIPPs.
2. The £40k limit doesn't have to be split between them, but it's the maximum in a year across all SIPPs unless you can carry back unused contributions from previous years.
3. If you are very risk averse then splitting your money across SIPPs may be a good idea once you have >£85k in one since that's the limit for compensation if there's a problem. Your costs will be higher however.
4. Vanguard is pretty good if you only want Vanguard products.
5. HL has great customer service generally and has a cap on maximum fees if you're investing in ETFs for instance (rather than funds).
6. Interactive Investor is probably the cheapest SIPP option, particularly when you have a lot invested.

[Lance]

3. If you are very risk averse then splitting your money across SIPPs may be a good idea once you have >£85k in one since that's the limit for compensation if there's a problem.

It's way more complex for a SIPP. The SIPP itself is not protected.
If you think about what a SIPP is, just for a second, it cannot be protected like a savings account.
If you can prove mis-selling then maybe you can get some compensation, but in general a SIPP is what it says on the tin. The funds within the SIPP may be protected, but check each fund separately.


Claims regarding IFAs and SIPP operators | FSCS

[sludgesurfer]

Compensation in this area is complex. The domicile of the underlying holdings is key. Many funds/ETFs are domicile in Ireland where there is a less generous scheme in place than those domicile in the UK.

https://monevator.com/investor-compensation-scheme/

[gisp]

Hi all,

Fast forward and I started using my HL to buy shares. All good so far. It has £11 purchase/sell fee for shares in £.
However it has very steep fee for any other currency something like £60-70 purchase/sell fee.

Can you recommend any SIPP provider with better fees non UK(£) shares?

[Lance]

Hi all,

Fast forward and I started using my HL to buy shares. All good so far. It has £11 purchase/sell fee for shares in £.
However it has very steep fee for any other currency something like £60-70 purchase/sell fee.

Can you recommend any SIPP provider with better fees non UK(£) shares?

HL is very well priced if you have a small pot.
Once £25k is exceeded there are cheaper options.
Many on here recommend Interactive Investor. I use them now.

[Fred Bloggs]

Hi all,

Fast forward and I started using my HL to buy shares. All good so far. It has £11 purchase/sell fee for shares in £.
However it has very steep fee for any other currency something like £60-70 purchase/sell fee.

Can you recommend any SIPP provider with better fees non UK(£) shares?

Interactive Investor are £5.99 per trade and you get one free trade per month for the monthly fee. Regular monthly investment is free of charge. No main stream low cost retail platform is going to be dirt cheap for foreign shares. I dare say they're all different how they charge for Fx, it's not something I have really been interested in. A bit of research required.

If you want to open an account with II, ask for a referral here. Myself or another CUKer of your choice can refer you and you get 1 year with no platform fees. The referrer also benefits too but not with free fees.