These two investment platforms see an increase in transfers after Vanguard announces the rate increase

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Investment provider InvestEngine has seen £13 million worth 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 average daily Isa transfers have increased by 4,000 per cent since Vanguard’s announcement, with typical daily logins up 366 per cent over the same period.

Meanwhile competitor Trading 212* told This is Money that transfer requests have increased by more than 2,000 percent.

The increase in transfers to these platforms comes as Vanguard changes its fee structure and introduces 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 each balance, capped at £375 per year, told investors last week that it will start charging monthly from January.

Those who have invested more than £32,000 will continue to pay the 0.15 per cent surcharge on their balances, meaning retail investors are likely to be hardest hit by the change.

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

Vanguard customers now pay £48 for the service, meaning it is no longer one of the cheapest options for investors.

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

According to InvestEngine, around 1,200 transfers were made in the past week, undoubtedly as a result of the free DIY portfolio offer*which they say is the biggest draw as research shows that more than half of investors’ top priority is a low-fee platform.

Andrey Dobrynin, co-founder and director of InvestEngine, said: “The influx of new customers in recent days is a testament to the importance of low fees for investors.

‘We have known this for a long time and want investors to keep as much of their return as possible. That’s why free options have been part of our ethos since our inception.”

Meanwhile, a spokesperson for Trading 212 said: ‘We have been in contact with Vanguard to ensure these requests are met in the quickest way possible for investors.

It said a very small percentage of transfers have currently been completed – and it could not provide a figure for the amount transferred.