Vanguard was founded in the US in 1975 by John Bogle and currently has over 50 million individual investors worldwide. It offers around 85 of its own low-cost index-tracking funds as well as 5 risk-rated ready-made portfolios. Its popular LifeStrategy fund range gives investors access to 5 blended funds with varying degrees of equity and bond exposure, allowing them to target a level of risk and return that is right for them.
While Vanguard is incredibly cheap - charging a platform fee of just 0.15% (capped at £375) - there are cheaper alternatives, depending on the amount you have to invest and the type of product you wish to invest in. Additionally, Vanguard has introduced a minimum monthly fee of £4 for DIY investors, making it relatively expensive for those with smaller investment portfolios. In this article, we highlight some of the best alternatives to Vanguard, giving our reasons, and highlighting any available cashback offers and deals.
We also provide a detailed comparison with easy-to-read heatmaps to help those looking at alternatives to Vanguard for their Stocks & Shares ISA and Personal Pension.
Best all-round alternative to Vanguard
- Interactive investor is a good all-round alternative to Vanguard as it offers a range of investment products and can work out cheaper than Vanguard when investing larger sums (see below)
Regular deals including cashback, fee-free investing and free trades. Check out our Interactive Investor review for more information
Cheaper than Vanguard if investing more than £48,000 in a Stocks and Shares ISA or SIPP
Subscription plans priced at £5.99, £14.99 or £39.99 per month (No annual management charge)
Access around 40,000 investments (Vanguard only allows you to access around 85 of its own funds)
Check out our Interactive Investor review
Best alternative to Vanguard Lifestrategy funds
- Freetrade recently introduced a range of mutual funds, including the popular Vanguard LifeStrategy 20%, 40%, 60%, 80%and 100% funds (via a 'Standard' or 'Plus' account). Freetrade is a good alternative to Vanguard and investors can access over 6,500 shares, ETFs and mutual funds.
Get a FREE SHARE worth up to £100* when you deposit at least £50 into a Freetrade ISA (capital at risk) or Freetrade basic account (capital at risk)
Access over 6,500 shares, ETFs and mutual funds (including all 5 of the popular LifeStrategy funds)
Simple user-friendly app
Check out our full independent Freetrade review
Best alternative to Vanguard if investing via an app
- Although Vanguard has finally released a mobile app for UK investors, its functionality is fairly limited. Those looking for an app-based investment platform should take a look at AJ Bell Dodl. You can invest from as little as £25 per month and access a good range of investments, including the popular Vanguard LifeStrategy funds. AJ Bell Dodl charges a minimum fee of £1 per month.
App-only platform meaning it is user-friendly and simple to use
Annual charge of just 0.15% (This is the same as Vanguard, however, it isn't capped at £375)
Access 7 risk-rated ready-made portfolios, 28 themed funds and 80 shares (choice includes the popular Vanguard LifeStrategy 40%, 60% and 80% funds)
Get 3.80% AER interest on uninvested cash held in an ISA or LISA
Check out our full independent AJ Bell Dodl review
Best alternative to Vanguard if investing in shares
Vanguard only allows you to invest in its own funds and so investors keen to invest in individual stocks need to look elsewhere. Freetrade is a good alternative to Vanguard and investors can access over 6,500 shares.
Get a FREE SHARE worth up to £100* when you deposit at least £50 into a Freetrade ISA (capital at risk) or Freetrade basic account (capital at risk)
Access over 6,500 shares (Vanguard does not allow you to buy and sell shares)
Simple user-friendly app
Check out our full independent Freetrade review
Best alternative to Vanguard for holding cash
Vanguard only pays 1.95% interest on uninvested cash which is relatively low when compared to many of the top UK investment platforms. Interactive Investor* currently pays up to 2.30% interest on uninvested cash, which is one the highest of all the platforms mentioned in this article. In our article 'Investment platforms paying the highest interest rate on cash', we provide a handy table where you can easily compare the interest paid.
Good for investors who want to get a good return on their cash
Pays up to 2.30% interest on uninvested cash (compared to 1.85% with Vanguard)
Invest from as little as £25 (compared to £500 with Vanguard)
Check out our Interactive Investor review
If you want to secure the best savings rates on the market, then check out our article, 'Best savings accounts in the UK'.
Best Vanguard ISA alternatives
The table below lists the best alternatives to a Vanguard Stocks & Shares ISA for investors who wish to invest in unit trusts, including the popular range of LifeStrategy funds. The costs in the table include the platform fees payable based on portfolios ranging from £500 to £1,000,000 and assume you wish to buy and hold your investments. Additional fund fees and trading costs may apply.
| LifeStrategy Funds | £500 | £1,000 | £5,000 | £25,000 | £50,000 | £100,000 | £250,000 | £1,000,000 | Trading Fees | |
|---|---|---|---|---|---|---|---|---|---|---|
| Vanguard | Yes | £48 | £48 | £48 | £48 | £75 | £150 | £375 | £375 | FREE |
| AJ Bell Dodl* | Yes | £12 | £12 | £12 | £38 | £75 | £150 | £375 | £1,500 | FREE |
| AJ Bell* | Yes | £1 | £3 | £13 | £63 | £125 | £250 | £625 | £875 | £1.50 for funds, £5 for Shares |
| Interactive Investor* | Yes | £72 | £72 | £72 | £72 | £72 | £180 | £180 | £180 | £3.99 per trade (Free regular investing) |
| Charles Stanley* | Yes | £60 | £60 | £60 | £75 | £150 | £300 | £600 | £600 | £4 for funds and £10 for shares and ETFs |
| Fidelity* | Yes | £2 | £4 | £18 | £88 | £175 | £350 | £875 | £2,000 | £7.50 |
| Bestinvest | Yes | £2 | £4 | £20 | £100 | £200 | £400 | £1,000 | £2,000 | US Shares free, UK Shares £4.95 |
| Hargreaves Lansdown* | Yes | £2 | £4 | £18 | £88 | £175 | £350 | £875 | £2,750 | £1.95 for funds, £3.95 - £6.95 for shares depending on number of trades per month |
Below we list the best alternatives to a Vanguard Stocks & Shares ISA for investors who are happy to invest in Shares and ETFs. The investment platforms in the table below do not offer Vanguard's lifeStrategy funds.
| LifeStrategy Funds | £500 | £1,000 | £5,000 | £25,000 | £50,000 | £100,000 | £250,000 | £1,000,000 | Trading Fees | |
|---|---|---|---|---|---|---|---|---|---|---|
| Trading 212 | No | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | 0.15% FX fees (0.50% for CFDs) |
| Prosper | No | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | FREE |
| Freetrade* | No | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | 0.99% FX fees |
Best Vanguard Pension alternatives
The table below lists the best alternatives to a Vanguard Personal Pension for investors who wish to invest in unit trusts, including the popular range of LifeStrategy funds. The costs in the table include the platform fees payable based on portfolios ranging from £500 to £1,000,000 and assume you wish to buy and hold your investments. Additional fund fees and trading costs may apply.
| LifeStrategy Funds | £500 | £1,000 | £5,000 | £25,000 | £50,000 | £100,000 | £250,000 | £1,000,000 | Trading Fees | |
|---|---|---|---|---|---|---|---|---|---|---|
| Vanguard | Yes | £48 | £48 | £48 | £48 | £75 | £150 | £375 | £375 | FREE |
| AJ Bell Dodl* | Yes | £12 | £12 | £12 | £38 | £75 | £150 | £375 | £1,500 | FREE |
| AJ Bell* | Yes | £1 | £3 | £13 | £63 | £125 | £250 | £625 | £875 | £1.50 for funds, £5 for Shares |
| Interactive Investor* | Yes | £72 | £72 | £72 | £72 | £72 | £180 | £180 | £180 | £3.99 per trade (Free regular investing) |
| Fidelity* | Yes | £2 | £4 | £18 | £88 | £175 | £350 | £875 | £2,000 | £7.50 |
| Hargreaves Lansdown* | Yes | £2 | £4 | £18 | £88 | £175 | £350 | £875 | £2,750 | £1.95 for funds, £3.95 - £6.95 for shares depending on number of trades per month |
| Bestinvest | Yes | £120 | £120 | £120 | £120 | £200 | £400 | £1,000 | £2,000 | US Shares free, UK Shares £4.95 |
| Charles Stanley* | Yes | £180 | £180 | £180 | £195 | £150 | £300 | £600 | £600 | £4 for funds and £10 for shares and ETFs |
Below we list the best alternatives to a Vanguard Personal Pension for investors who are happy to invest in Shares and ETFs. The investment platforms in the table below do not offer Vanguard's lifeStrategy funds.
| LifeStrategy Funds | £500 | £1,000 | £5,000 | £25,000 | £50,000 | £100,000 | £250,000 | £1,000,000 | Trading Fees | |
|---|---|---|---|---|---|---|---|---|---|---|
| Prosper | No | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | FREE |
| Freetrade* | No | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | 0.99% FX fees |
Summary
If you have less than £32,000 to invest, then the cheapest way to access Vanguard funds would be via the likes of Trading 212 or Prosper. There are some limitations that are worth keeping in mind, namely that you will not be able to access the full range of Vanguard funds. Additionally, some products may not be available; for example, Trading 212 does not currently offer a personal pension.
The cheapest way to access Vanguard's popular range of LifeStrategy funds is via AJ Bell Dodl*; however, those who either have or aim to have a Stocks and Shares ISA or SIPP portfolio worth more than £48,000 should consider Interactive Investor* because its fixed fee structure means it will be significantly cheaper as your portfolio grows. You can read more in our independent Interactive Investor review.
One of the limitations of investing with Vanguard had been a lack of a mobile app for UK investors, however, this changed with the launch of the Vanguard app. Initial feedback is that its functionality is fairly limited, especially when compared to the investment apps from the other platforms mentioned in this comparison. So those who prefer to invest and conduct additional investment research from their phone may want to take a look at AJ Bell Dodl* or Freetrade*. Those wishing to regularly invest small amounts each month may want to take a look at Interactive Investor*, a platform that has a fixed subscription model and pays up to 2.30% interest on uninvested cash. If you are still not sure which is the best platform for you, check out our article 'The best investment platform: Which is best for you?'.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Interactive Investor, AJ Bell Dodl, AJ Bell, Fidelity, Bestinvest, Freetrade, Hargreaves Lansdown, Fidelity, Charles Stanley
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