eToro vs Vanguard UK Investor 2024

eToro offers a wide range of assets and instruments and is well-known for its ‘social trading’ approach. It has among the lowest fees and best mobile app experiences of brokers we tested in the U.K., and offers a great starting point for those new to stock trading. Our analysis finds it better suited to short-term traders than long-term investors.

Vanguard U.K. Investor, part of one of the world's largest fund managers, is cheap and easy to use and will appeal to investors looking for inexpensive index funds for long-term investing. Its platform, however, reveals many shortcomings compared to leading brokers, particularly relating to the narrow investment selection and lack of mobile app.

Alongside the cost per trade, most UK online brokers also charge a monthly, quarterly, or annual management fee, which varies based on the account type and balance. Based on our thorough review, eToro offers better pricing than Vanguard UK Investor for share dealing.

Assuming a £30,000 portfolio size, here are the total annual costs for share dealing with both brokers, given different monthly activity scenarios.

5 trades per year - eToro would cost £0 per year, while Vanguard UK Investor would cost N/A per year.

12 trades per year - eToro would cost £0 per year, while Vanguard UK Investor would cost N/A per year.

36 trades per year - eToro would cost £0 per year, while Vanguard UK Investor would cost N/A per year.

120 trades per year - eToro would cost £0 per year, while Vanguard UK Investor would cost N/A per year.

3 fund trades per year - eToro would cost $50 per year, while Vanguard UK Investor would cost £500 per year.

eToro requires a minimum deposit of $50, while Vanguard UK Investor requires a minimum deposit of £500. From our testing we found for accounts between £0 - £250,000 eToro charges annual custody fees of £0, while Vanguard UK Investor charges annual custody fees of Under £32,000: £48 / Over £32,000: 0.15%.

eToro offers investors access to ISA, Share Trading, CFD Trading, ETFs and Crypto Trading, while Vanguard UK Investor offers investors access to ISA, SIPP, Funds and ETFs. Neither have Bonds - Corporate, Bonds - Government (Gilts), Investment Trusts, Spread Betting and Advisor Services. Investing encompasses a wide variety of asset classes, so finding a broker that offers every investment type you are interested in is important.

Self-invested personal pensions (SIPPs) and individual savings accounts (ISAs) are tax-advantaged savings accounts that are an important tool for many individual investors. You can read more about how these accounts operate at Gov.UK: Click here for SIPP information and here for ISA information. Our analysis finds that eToro offers traders access to ISA accounts, while Vanguard UK Investor offers traders access to SIPP and ISA accounts.

In our analysis of top brokers for share dealing in the U.K., we research whether each broker offers the ability to trade cash cryptocurrency, such as bitcoin and ethereum, which is still a somewhat rare offering amongst major U.K. brokers. Our review finds that eToro offers crypto investing, while Vanguard UK Investor does not.

Our testing concluded that the website of eToro is better than the website of Vanguard UK Investor. eToro offers more functionality, is cleanly designed, and is, overall, easier to use for beginners and casual investors.

To compare the trading platforms of both eToro and Vanguard UK Investor, we tested each broker's stock trading app. All features compared, our analysis finds that eToro offers a better mobile app. Dive deeper: Best Stock Trading Apps UK.

Educational offerings are of particular importance to those who are newer to investing, and we examine the availability of several different types of educational materials in our analysis. Our research finds that eToro offers traders access to Education (Share Trading), while Vanguard UK Investor offers access to Client Webinars (Archived), Education (Funds) and Education (Retirement). Neither have Client Webinars.