Vanguard alternatives UK

Vanguard is one of the most popular index fund and exchange-traded fund (ETF) providers in the world. Its founder, Jack Bogle, was the person to come up with the concept of index funds in the first place. However, you don’t need to use Vanguard’s platform if you want to invest in its funds and ETFs.

You might even save money by investing in a Vanguard fund using an alternative broker. Because these days, it’s often cheaper to invest in these funds elsewhere, especially if you have a smaller size portfolio, or a smaller sum to invest.

At a glance: Platforms like Vanguard

Finder Score	Price per trade	Min. initial deposit	Platform fees
1. InvestEngine
9.3Excellent InvestEngine Finder AwardFree TradesFunds Only	9.3Excellent	£0	£100	0% - 0.25%	Welcome bonus: Get a welcome bonus of up to £100 when you invest at least £100. Use code 'FINDER'. Capital at risk. T&Cs apply.	Go to Site Capital at risk More info Compare product selection Compare	loading	Why we like it InvestEngine is the closest comparable to Vanguard as it’s also a fund-only platform. With InvestEngine, there are over 700 ETFs to choose from and 45 of those are Vanguard funds. InvestEngine also has pre-packaged “LifePlan” portfolios which are similar to Vanguard’s popular “LifeStrategy” options, where it's a fund made of funds and you simply pick your desired percentage allocation to equities (stocks). The key difference between InvestEngine and Vanguard is the fees. InvestEngine has no platform fee for a DIY portfolio, and this includes using a flexible stocks and shares ISA or a self-invested personal pension (SIPP). Vanguard on the other hand has a 0.15% fee (with a £4 monthly minimum from 31 January 2025). So if you want to invest in Vanguard funds, it’s actually cheaper with InvestEngine. Plus, you get the added benefit of choosing ETFs from various providers (whereas Vanguard only lets you invest in its own products, selfish we know). For years, Vanguard didn’t offer a mobile app, now it does - but it’s far less superior to InvestEngine’s app in terms of features and functionality. Pros & cons Pros Build your own portfolio Over 700 ETFs The platform interface and features are excellent No fee for a stocks and shares ISA or SIPP Low fees all around Cons Percentage fees can add up for managed portfolios You can only invest in ETFs Limited learning resources and tools Relatively small range of ready-made portfolios £100 initial minimum investment
2. Hargreaves Lansdown
8.5Great Hargreaves Lansdown Finder Award	8.5Great	£11.95	£1	£0 (0.45% for funds)	Go to Site Capital at risk More info Compare product selection Compare	loading	Why we like it Although Hargreaves Lansdown (HL) can be pricey for investing in individual shares, it’s actually a fantastic option if you’re sticking to fund investing. It’s a decent alternative to Vanguard because there’s no commission fee to buy or sell funds, the platform fee is 0.45% (with no monthly minimum fee) and it actually gets cheaper for larger portfolios. There’s a huge choice of over 3,000 funds from a range of providers. This is much more than Vanguard offers, which is about 85. You’re also able to hold your funds in a HL stocks and shares ISA wrapper for no added fee. HL is an expensive option if you want to buy and sell individual stocks, but this isn’t even an option with Vanguard so it’s a bit of a moot point for comparison. Fund investors will find lots to like with HL. Pros & cons Pros Wide range of accounts No platform fee for some accounts Free fund trading Great customer service reviews Excellent mobile app Discount for regular investors Cons Expensive to buy or sell shares Fee structure is slightly complex No demo account Some investors may not need all the features As a listed company, HL has to please shareholders
3. interactive investor
8.5Great interactive investor	8.5Great	£3.99 (free regular investing available)	£1	From £5.99 a month	Welcome bonus: £100 of free trades for new customers opening an ISA/GIA (or existing customers adding an ISA) before 28 February. No min. deposit required. Capital at risk. T&Cs apply.	Go to Site Capital at risk More info Compare product selection Compare	loading	Why we like it interactive investor (ii) is one of the most comprehensive platforms in the UK and its choice of over 3,000 funds and ETFs absolutely blows Vanguard’s selection of 85 own-brand funds out of the water. Along with over 40,000 investment options in total, ii charges a flat monthly fee of £4.99 for portfolios under £50,000 on its Investor Essentials plan (fairly comparable to Vanguard). Over this threshold, the monthly fee rises to £11.99 for its Investor plan, which isn’t great if you nudge into that bracket, but it’s good value if you have a large portfolio because the fee doesn’t get any bigger. One downside with ii is that there’s a commission fee of £3.99 each time you make a trade. But, long-term investors can avoid this by setting up a regular monthly fund investment, putting it on a par with Vanguard’s lack of commission. With ii, you also get access to loads of unique, in-house research from its experts and an excellent mobile app and desktop platform for investing. Pros & cons Pros Flat monthly fee is good value for large portfolios Massive choice of investments A platform designed for every type of investor Lots of account choices Invest online or with the ii app Cons Platform fee is expensive for small portfolios Share dealing charges are quite high Free monthly trade(s) with premium plans Cheapest plan has a maximum portfolio size Adding a SIPP costs more
4. AJ Bell
9.3Excellent AJ Bell Dealing Account	9.3Excellent	£5	£250 (or £25/month)	0.25% per month (max. £3.50)	More info Compare product selection Compare	loading	Why we like it Unlike some of its slicker counterparts, but similar to Vanguard, AJ Bell offers a robust (if somewhat clunky) platform for investing in funds and ETFs. AJ Bell is a solid alternative to Vanguard because it has a much larger choice of over 3,400 ETFs and over 2,000 funds. AJ Bell’s fees are slightly higher than some of Vanguard’s. The ongoing platform fee depends on the account you’re using, but to hold funds in a stocks and shares ISA or a SIPP, it’s 0.25% of the value of your funds (and this gets cheaper once you hit £250,000). However, whereas it’s free to buy or sell funds on Vanguard, AJ Bell charges £1.50 per fund trade. So if you’re investing smaller sums, these fees can add up and eat into your potential returns. Yet, for larger fund investors that want plenty of choice, AJ Bell can be superior to Vanguard. Pros & cons Pros Range of account types available Plenty of investment choice Interest paid on cash balances Commission discount for frequent investors Top-rated customer service Cons Complex fee structure £5 share dealing commission Clunky platform interface Difficult for beginners to navigate
5. Fidelity
7.9Great Fidelity Investment Account	7.9Great	£10	£1,000 (or £25/month)	0.35%	More info Compare product selection Compare	loading	Why we like it Fidelity is relatively similar to Vanguard in terms of its approach and target audience. It offers plenty more funds, with over 2,500 to choose from and more than 400 ETFs. You can get started investing with Fidelity from £25 a month, or a much steeper £1,000 lump sum. The initial monthly deposit amount is lower than Vanguard’s £100, but the lump sum is double Vanguard’s £500 minimum. Although Fidelity offers a whopping choice of funds and ETFs, the complex and sometimes expensive fees let the platform down when compared to Vanguard. The best value is to set up a regular savings plan, which means a fee of 0.35% (£7.50 a month without) for portfolios under £25,000. The good news is there’s no fee to buy or sell funds. Fidelity’s platform is pretty basic and comparable to Vanguard’s, but slightly clunkier and less intuitive. Pros & cons Pros Well-respected platform Plenty of investments to choose from Lots of fund-specific research and tools Option for financial advice Regular investing discount Cons High £7.50 commission for investments Confusing fee structure Platform isn’t doesn’t have the best user interface Higher fees if you don’t have a regular savings plan
6. CMC Invest
9Excellent CMC Invest Finder Award	9Excellent	£0	£0	£0	Free trial: Get your first 3 months free when you upgrade to Plus plan. T&Cs apply. Capital at risk.	More info Compare product selection Compare	loading	Why we like it A relatively new platform compared to some of the older players, CMC Invest could be a useful alternative to Vanguard for some investors. Like Vanguard, it offers a flexible stocks and shares ISA - but you do need to subscribe to its Plus or Premium plans which costs £10 and £25 a month respectively. The Premium plan also includes a SIPP, but at this price, it’s only economical for larger pension portfolios. CMC Invest does offer a free Core plan, but you don’t get an ISA. However, with all CMC Invest plans, you do get access to over 1,000 mutual funds, plus a selection of around 400 ETFs and investment trusts. There’s no commission to buy or sell investments on CMC Invest, but it doesn’t offer fractional shares. Pros & cons Pros No minimum deposit Free to open and hold a Core account No investing commissions Over 4,500 investments 2% uncapped interest paid on cash in all account plans ISA and SIPP available Cons Limited range of UK stocks No fractional shares Costs £10 per month to use an ISA with Plus plan Some account types and features reserved for paying subscribers Multi-currency wallets only for Plus and Premium

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Our expert says: What’s the cheapest way to invest in Vanguard funds?

"As it stands, the cheapest place overall to invest in Vanguard funds is by using InvestEngine. There’s no commission fee to buy or sell Vanguard ETFs on InvestEngine, and there’s also no platform fee with a DIY account. Whereas Vanguard charges 0.15% (with a £4 minimum for portfolios under £32,000 from 31 January 2025).

Therefore, you can buy Vanguard ETFs and hold them in a stocks and shares ISA or SIPP wrapper and pay nothing extra other than the ongoing ETF fees (that you have to pay anywhere you’d buy Vanguard ETFs, including on Vanguard’s platform). "

George Sweeney, DipFA

Deputy editor

How to transfer from Vanguard

If you’re a Vanguard customer and looking to transfer out to an alternative (perhaps because of the fee hike for smaller portfolios), here’s a simple step-by-step guide explaining how:

1. Choose a new provider. Before switching, you’ll need to pick a new trading app or share dealing account and set up an account.
2. Check the account types. Make sure your new account offers a stocks and shares ISA or SIPP (if that’s what you hold with Vanguard).
3. Look at transfer options. See if your new platform offers “in-specie transfer” of your investments or if they need to be sold and moved over as cash.
4. Start the transfer. If your new platform allows transfers in, they should offer a form to complete to start a transfer process from your Vanguard account.
5. Wait for the transfer. The transfer time can vary depending on the type of account you’re transferring. An ISA transfer is usually within 30 days but a SIPP might be longer.
6. Close Vanguard account. Once the transfer has taken place, if your balance is now zero with Vanguard, you can send them a secure message requesting your account(s) to be closed.

Remember to follow the official process using a transfer service if moving a stocks and shares ISA. Otherwise, if you simply withdraw the funds and deposit them somewhere else – this could eat into your yearly ISA allowance.

Bottom line

With Vanguard introducing a new minimum monthly fee of £4 for portfolios under £32,000 – it’s no longer one of the cheapest options for investors with smaller portfolios. Luckily, there are plenty of affordable UK alternatives to Vanguard that are cheaper and offer a greater selection of investment funds and ETFs.

Just remember to take care and follow the official process if you want to transfer out of Vanguard and move your portfolio somewhere else, especially if you’re using a tax-efficient account like an ISA or SIPP. If you want to know a bit more about the “godfather” of index funds, check out our full Vanguard review.

Written by

George Sweeney, DipFA

Deputy editor

George is a deputy editor at Finder. He has previously written for The Motley Fool UK, Nasdaq, Freetrade, Investing in the Web, MoneyMagpie, Online Mortgage Advisor, Wealth, and Compare Forex Brokers. He's focused on making personal finance and investing engaging for everyone. To do this he draws from previous work and his Level 4 Diploma for Financial Advisers (DipFA), sharing what he’s learnt. When he’s not geeking out about money, you’ll find him playing sports and staying active. See full bio

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