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Vanguard UK Review

Item: Vanguard UK Investor
Rating: 4

Written by Elizabeth Anderson
Fact-checked by Steven Hatzakis
Edited by Carolyn Kimball

December 12, 2024

Your capital is at risk.

Vanguard U.K. Investor is part of the Vanguard group, one of the world’s largest fund managers. A big benefit to Vanguard is that it’s cheap and easy to use. As such, Vanguard has built up a loyal following among investors looking for inexpensive index funds for long-term investing, and it appeals to beginner investors due to its simplicity. Vanguard continues to roll out improvements like the recent launch of a mobile app, making it easier to monitor your account.

Overall

Minimum Deposit: £500
ISA: Yes
SIPP: Yes

Vanguard pros & cons

thumb_up_off_alt Pros

Offers great value for the money on amounts above £32,000.
Excellent low-cost diversification.
Good for beginner investors and those looking for simple, long-term investments.

thumb_down_off_alt Cons

Investment options are very limited: Only Vanguard funds and ETFs are available.
Website could be improved.
If you have a large investment pot, another platform may work out cheaper.
New £4 monthly minimum fee works out to be expensive for those with small portfolios.

Overall summary

Feature	Vanguard UK Investor
Overall Rating
Charges & Fees
Investment Choices
Mobile App
Website
Ease of Use
Education

Charges and fees

Vanguard is well known for its low fees and charges. For clients with more than £32,000 invested, it charges an annual management fee of 0.15% a year of the value of your investments. The total is capped at £375 across all accounts you fund on the platform, meaning once the value of your investments goes above £250,000, you’ll have no management fees beyond that fee.

However, Vanguard has launched a new £4 monthly fee for investors with less than £32,000 across all its accounts (including ISAs, SIPPs, and general investment accounts). If you have less than this held on the Vanguard platform, this fee will make the platform more expensive than many competitors. On a total investment of £1,000, for example, you’d pay fees of £48 — equivalent to a 4.8% annual percentage platform charge. In comparison, AJ Bell charges platform fees of 0.25%, equal to £2.50 in this example, and Hargreaves Lansdown charges up to 0.45% (£4.50).

Vanguard’s new £4 monthly fee will start to apply at the end of January 2025. It will not apply to junior ISAs.

Like all investment platforms, there are separate annual management fees for each fund you invest in. These average at 0.2% across Vanguard’s funds but the cheapest fund is just 0.07%.

There are no fees for buying, selling, or switching funds. Vanguard places bulk deals twice a day, and your purchase will be included in that for free. However, if you want to buy or sell an ETF in real-time, you’ll pay a £7.50 fee.

There are no exit or transfer fees.

Vanguard still offers great value for money for investors with larger portfolios. However, if you have a portfolio worth more than £100,000 then a platform that charges a flat fee — such as Halifax, Interactive Investor (ii), or even Hargreaves Lansdown — may be more economical. Halifax, for example, charges £36 a year for its ISA or share dealing account although you do pay trading charges, unlike with Vanguard. You should weigh up how often you’ll be trading and your investment choices when working out which is the better value.

Scenario pricing: When calculating annual share dealing costs, trading frequency and account balance are the two most important factors to consider. Assuming a £30,000 portfolio in a traditional, taxable share dealing account invested in a fund with 0.2% ongoing management fees — on top of the 0.15% account fee — here are five scenarios of how much Vanguard U.K. would cost based on trade frequency:

5 trades per year = N/A
12 trades per year = N/A
36 trades per year = N/A
120 trades per year = N/A
3 fund trades per year = £108

Feature	Vanguard UK Investor
Minimum Deposit info	£500
Share Trading: 0-9 Deals/ Month info	N/A
Share Trading: 10-19 Deals/ Month info	N/A
Share Trading: 20+ Deals/ Month info	N/A
Annual Custody Fee: £0 - £250,000 info	Under £32,000: £48 / Over £32,000: 0.15%
Annual Custody Fee: £250K-£500K info	£375
Annual Custody Fee: £500,000 - £1m info	£375
Annual Custody Fee: £1m and over info	£375
Bonds - Corporate - Fee info	N/A
Bonds - Government (Gilts) - Fee info	N/A
ETFs - Fee info	0.02% to 0.14%
Investment Trusts - Fee info	N/A
Telephone Dealing Fee info	N/A

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Mobile trading apps

Vanguard launched its long-awaited mobile app in September 2024 after a successful testing stage with selected customers. The app is still in development and doesn’t yet offer all the features offered through the website, such as educational articles and live ETF trading (keep in mind that live trading comes with a £7.50 fee anyway).

In my testing, I found the app quite comprehensive. It’s great to see all my accounts on the go, without having to log into the platform on a web browser. It means I can check my accounts more frequently. You can see in bullet points where the bulk of your investments are held, such as in equity funds, cash, or ready-made portfolios.

Different account types in the Vanguard mobile app.

Purchasing an investment on the Vanguard mobile app.

Blended funds on the Vanguard mobile app.

Description of the stocks and shares ISA offering on the Vanguard mobile app.

Description of a SIPP offering on the Vanguard mobile app.

Website

The Vanguard U.K. website is very basic in its design. However, I found it easy to open an account in just a matter of minutes. You can link to another account, which means you can view another person’s account (with permission) and they can see yours. This is handy for couples when managing their household finances. Other investment platforms, such as Hargreaves Lansdown and AJ Bell, also offer this feature. You can also see Junior ISA accounts you may hold for any children. Vanguard does not offer Junior SIPPs.

Research, help, and support is more limited than at other brokers. But Vanguard’s lack of extensive investor options means it is easy enough for even a novice investor to figure out. Just pick a fund and start investing. There are no charges for switching investments if you feel you have made an error. It’s worth doing some reading elsewhere on the difference between accumulation and income choices and how to decide whether you want to lean towards equities or bonds. Interactive Investor, Hargreaves Lansdown, Fidelity or AJ Bell are helpful for this type of guidance.

Vanguard research global small cap index fund performance.

Feature	Vanguard UK Investor
Web Platform info	Yes
iPhone App info	Yes
Android App info	Yes
Stock Alerts info	No
Charting - Indicators / Studies info	0
Charting - Drawing Tools info	0
Charting - Notes info	No
Charting - Display Corporate Events info	No
Charting - Stock Overlays info	No
Charting - Index Overlays info	No

Investment choices

There are very few investment options through Vanguard U.K. There is no ability to buy shares, investment trusts, or to invest in alternative assets such as commodities or crypto.

However, you can invest in mutual funds or ETFs that invest in these assets. The benefit is that investors will benefit from wide diversification. Vanguard funds cover markets worldwide, including emerging markets, the U.S. and Europe.

There are 85 funds to choose from, including ones that track an index such as the FTSE 100 or S&P 500, and others such as the Lifestrategy range that invest in a range of indices and bonds on your behalf. Many new investors opt for a Lifestrategy fund as a starting point as the funds are essentially a ready-made portfolio.

You can invest through a Vanguard ISA, SIPP, general investment account, or even a Junior ISA if you’re saving for a child.

Vanguard also offers a “Managed ISA” option, matching investors with one of five portfolios to reflect their saving goals and attitude to risk for an average cost of 0.62%. These investments are regularly monitored and adjusted by Vanguard to suit your risk level and investment preferences.

Feature	Vanguard UK Investor
Share Trading info	No
CFD Trading info	No
ETFs info	Yes
Funds info	Yes
Bonds - Corporate info	No
Bonds - Government (Gilts) info	No
Investment Trusts info	No
Spread Betting info	No
Crypto Trading info	No
Advisor Services info	No

Education

Vanguard has increased the educational material on its website in the past few years, featuring around 100 articles on a range of topics such as how ETFs work and how to choose between income and accumulation.

There are no podcasts or webinars. I think it would be great if Vanguard could offer more variety of educational content on its website and app.

You can create a Portfolio Valuation Report from your account. This includes a pie chart showing your asset allocation — such as how much you have in U.K. equities and other global equities — along with gains and losses since your initial investment. This is created in a matter of seconds and is helpful for seeing all your funds and total gains or losses in an understandable list format.

The Learning Page on the Vanguard website.

Feature	Vanguard UK Investor
Education (Share Trading) info	No
Education (Funds) info	Yes
Education (Retirement) info	Yes
Client Webinars info	No
Client Webinars (Archived) info	Yes

Final thoughts

Vanguard is basic in functionality and choice but offers a very good service for less experienced investors and those looking for simple long-term investments — perhaps those looking ahead to retirement. Fees in general are low. Vanguard is worthy of consideration by savers looking to take a hands-off approach to investing. The new addition of the mobile app is also great for being able to view your account easily through your smartphone.

About Vanguard

Vanguard pioneered index investing when it launched in the U.S. in 1975, founded by legendary investor John Bogle, who is credited with inventing the index fund. Vanguard launched its U.K. retail platform in 2017 and says it has gained more than 30 million customers since then.

Is Vanguard good for beginners?

Vanguard is a great option for beginner investors. You can be confident you are putting your money with a reputable brand that has been in business for many years. It offers the chance to build or access diversified investment portfolios at a very low cost. The limited investment range also means you can easily select a fund without having to trawl through thousands of options. However, if your interests lie in learning how to actively trade shares, you will find better options elsewhere.

Watch out for the new £4 monthly fee, which can work out to be quite expensive with only a small amount invested. If you only have a small amount to invest, you may be better with another platform charging lower fees.

Does Vanguard have an app?

Vanguard launched its U.K. mobile app in September 2024. On the app you can view your accounts, see all your investments, buy and sell funds, and set up a monthly payment.

Is a Vanguard stocks and shares ISA good?

A Vanguard stocks and shares ISA is worth considering as it’s easy to open one, the fees are low, and the investment options are not too overwhelming. You can either self-direct your own funds to invest in, or pick Vanguard’s Managed ISA, where investing decisions are taken for you. You can pay into multiple investment ISAs each year, so you could hold a Vanguard ISA alongside an ISA offered by another provider if you are looking for a wider range of investments. Other options for ISAs in the U.K. include Trading 212, Freetrade, AJ Bell, or Hargreaves Lansdown.

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Methodology

For the UK.StockBrokers.com Annual Review, we assessed, rated, and ranked 17 U.K. share dealing platforms over a 10-week time period. Each broker’s platforms and features were exhaustively tested by hand and graded on 53 different variables. In total, over 25,000 words of research were produced.

We thoroughly tested and compared features of prime interest to everyday investors, including but not limited to:

Investment choices, such as whether the broker offers trading of shares, ETFs, funds, bonds, and CFDs; and offers SIPP and ISA accounts.
The broker’s charges and fees for investing.
Functionality and design of mobile apps and website platform, and a fluid experience moving between app and web.
Usability of tools such as charting and watch lists.
Market research, such as screening, news and analysis.
Educational resources including tutorials, online courses, videos, webinars and articles.

Our rigorous data validation process yields an error rate of less than .001% each year, providing site visitors with quality data they can trust. Our lead researcher and writer, Elizabeth Anderson, has more than a decade’s experience as a financial journalist and market researcher. Elizabeth’s expertise is backed by a team of veteran fellow traders, data auditors, editors and project managers who work to ensure that UK.StockBrokers.com reviews and guides are the most unbiased and complete in the industry. Read more about our team.

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About the Editorial Team

Elizabeth Anderson, lead writer and researcher, has been a financial journalist for more than a decade. In addition to her work with UK.StockBrokers.com, she has written extensively for major publications including BBC, The Times and Bloomberg. A keen investor herself, she is passionate about helping people understand finance and investing.

Steven Hatzakis is the Global Director of Online Broker Research for UK.StockBrokers.com and ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.

Carolyn Kimball is a former managing editor for Reink Media and former lead editor for the StockBrokers.com Annual Review. Carolyn has more than 20 years of writing and editing experience at major media outlets including NerdWallet, the Los Angeles Times and the San Jose Mercury News. She specializes in coverage of personal financial products and services, wielding her editing skills to clarify complex (some might say befuddling) topics to help consumers make informed decisions about their money.