What are the best alternatives to Vanguard?

What is Vanguard?

Vanguard is a popular investment platform known for its low-cost index funds and straightforward approach to investing. Its focus on low fees and simplicity makes it a favourite for those seeking easy-to-manage portfolios without high expense ratios. 

That said, some investors look for Vanguard alternatives as its offerings are fairly limited. 

The platform provides a narrower selection of funds than other providers, does not offer trading options for individual stocks, and has fewer advanced trading features, with a user interface that some find basic. 

Vanguard’s no-fuss approach and reputation for reliability are major draws, but it can feel limited for investors who want more active portfolio management options and investment choices. So, if you’re searching for a Vanguard alternative, you’re in the right place.

What are the alternatives to Vanguard?

When searching for alternatives to Vanguard, UK investors will find many platforms that cater to different needs.

To identify the best options, we’ve considered factors like fee structure, investment selection, account types, user experience, and additional features.

Here’s a breakdown of the alternatives:

Hargreaves Lansdown

Overview: Known for its wide variety of investments and extensive research tools, Hargreaves Lansdown is popular among investors who want more control over their portfolios.

Fees: Vanguard’s platform fee is 0.15%, capped at £375 per year for accounts over £250,000. Hargreaves Lansdown’s charges are tiered: 0.45% annually on the first £250,000, 0.25% on £250,000–£1 million, 0.1% on £1 million–£2 million, and no charge above £2 million. Trading fees range from £5.95 to £11.95 per trade for shares.

Key features: Hargreaves Lansdown offers individual savings accounts (ISAs), self-invested personal pensions (SIPPs), and general investment accounts (GIAs), with access to stocks, exchange-traded funds (ETFs), and a vast range of funds. The mobile app is intuitive and ideal for independent research.

Pros:

• Extensive investment options.
• Advanced research tools.

Cons:

• Overwhelming for beginners due to its extensive features.
• Higher fees than other investment platforms.

Who it’s best for: Hargreaves Lansdown is suitable for investors who need in-depth research tools and a wide range of investment choices.

InvestEngine

Overview: InvestEngine is a cost-effective platform known for its focus on ETF portfolios, offering both managed and DIY options.

Fees: InvestEngine offers no platform fees for DIY portfolios, a 0.25% fee for managed portfolios, and no trading fees, while Vanguard charges a 0.15% platform fee for all accounts and may charge ongoing costs or fund transaction fees.

Key features: InvestEngine offers ISAs and GIAs with a focus on ETF portfolios. The platform is highly accessible, with an easy-to-navigate app.

Pros:

• No trading fees.
• Low-cost structure for both DIY and managed options.

Cons:

• Limited investment options outside ETFs.

Who it’s best for: Ideal for budget-conscious investors focusing on ETFs with a mix of managed and DIY options.

Wealthify

Overview: Wealthify provides a user-friendly experience with low-cost robo-advisory services designed for beginner investors who prefer ready-made portfolios.

Fees: Vanguard’s all-in-one fee of 0.15% for funds is less than Wealthify’s 0.6%, plus underlying fund costs, which vary between 0.16% and 0.7%.

Key features: Wealthify offers ISA, SIPP, and GIA accounts with access to pre-made, diversified portfolios and an easy-to-use app for tracking investments.

Pros:

• User-friendly app.
• Ethical investment options.

Cons:

• Minimal customisation for hands-on investors.

Who it’s best for: This alternative is ideal for new investors seeking a hands-off approach and preferring ethical investment options.

Charles Stanley Direct

Overview: Charles Stanley Direct caters to hands-on investors with a range of fund and stock choices.

Fees: Charles Stanley Direct has a 0.3% management fee for funds, higher than Vanguard’s 0.15%. Trading charges are set at £4 for online funds and £10 for online shares.

Key features: Charles Stanley Direct’s platform supports ISA, SIPP, and GIA accounts, with a wide selection of funds, ETFs, and stocks, plus extensive resources for investors managing their own portfolios.

Pros:

• Wide investment range.
• Strong customer service.

Cons:

• More expensive fees than its competitors.

Who it’s best for: Suited to investors who value customer service and want professional support while managing their portfolios.

Dodl by AJ Bell

Overview: Dodl by AJ Bell is an app-based investment platform designed for beginners, emphasising simplicity and low fees.

Fees: Dodl charges a 0.15% platform fee, which is aligned with Vanguard’s, although this fee is not capped. Dodl does have ongoing charges for all funds. 

Key features: Dodl provides access to ISAs and GIAs, featuring ready-made portfolios and single-fund options within an easy-to-navigate app.

Pros:

• Ready-made portfolios.
• Easy-to-use app.

Cons:

• Limited investment options compared to larger platforms.

Who it’s best for: Beginner investors seeking low-cost, app-based investments without complex features may prefer this alternative to Vanguard.

Moneybox

Overview: Moneybox is known for its innovative approach to saving and investing, especially through round-up features that make investing accessible to beginners.

Fees: Moneybox charges a 0.45% annual platform fee and a £1 monthly subscription, which is higher than Vanguard. As Moneybox is a savings and investment platform rather than a trading platform, there are no trading fees.

Key features: Moneybox offers ISAs, lifetime ISAs, and GIAs, with an innovative round-up feature that helps users invest spare change, targeting new investors with low entry barriers.

Pros:

• Accessible for beginners.
• Round-up investing.

Cons:

• The round-up feature may lack depth for advanced investors.

Who it’s best for: It is ideal for young investors or those new to investing who want to start small with a straightforward app.

Get expert financial advice

UK investors have a range of investment platforms to choose from, each offering distinct advantages. Whether you’re after lower fees, more diverse investment options, or advanced tools, there’s a platform suited to your needs.

Take the time to weigh each alternative’s unique features and costs to find the right fit for your financial goals.

Let Unbiased match you with a professional financial adviser to guide you in making informed investment decisions.