What is Vanguard?
Vanguard is one of the world’s largest fund managers, pioneering index investing in the 1970s and launching its UK DIY platform in 2017. It offers general investing accounts, stocks and shares Isas, junior Isas, and Sipps.
Vanguard’s platform only allows you to buy Vanguard funds, of which there are around 78, covering a range of regions, assets and investment styles. You can’t buy funds from other companies, shares, or investment trusts.
- Find out more: read our guide to the best and worst investment platforms
Is Vanguard good or bad?
Which?'s rating for customer satisfaction is based on feedback from real customers. We ask investors to rate their current platform for the quality of its online tools, customer service, and investment opportunities. We also ask if it meets their needs, is value for money and whether they'd recommend it to someone else.
However, to be named a Which? Recommended Provider (WRP), customer satisfaction alone won't suffice; we also consider platform fees.
Which? members can exclusively read the results of our unique customer satisfaction survey.
What do customers say about Vanguard?
- 'Vanguard's range of tracker funds is the best (and best value) in the UK currently. I trust the company and believe they are working in the best interests of their investors.'
- 'Haven't been with them long, so don't have much experience, but I am aware of their reputation in the USA. Their communications are easy to understand and user-friendly and the limited range of packaged investment options I consider a positive advantage.'
- ‘Low costs; no hype; no ludicrous cross selling or dubious recommendations.’
What are Vanguard's charges?
- 0.15% annual account fee (no fee for amounts above £250,000)
- £7.50 to buy or sell a fund through Quote and Deal service (free with bulk dealing service)
- No charge for switching or selling funds
- No charge for transferring in or out
- You can’t buy shares with Vanguard, so share trading costs aren’t applicable
We’ve estimated the cost of investing various sums in investment platforms over the course of a year in the table below. The costs assume you only buy funds (shares work out slightly cheaper with some companies), and make four purchases and four sales each year.
Read our comparison of investment platform charges to see how much investing with Vanguard costs for a range of portfolios.
Who is Vanguard good for?
For those with small and medium portfolios, Vanguard’s simple, percentage-based fees are a fraction of those charged by even its closest major rivals.
It's also one of the cheapest platforms for large portfolios but lags behind some fixed-fee brokers (see below).
Who is Vanguard expensive for?
As Vanguard only offers its own exchange traded funds, investors looking to buy other funds, investment trusts or company shares will have to look elsewhere.
What accounts and services does Vanguard offer?
The information below gives an at-glance view of the key things that the accounts and services Vanguard offers.
Elements marked with a ✓ are offered by Vanguard and those marked with a ✘ are not.
✓ General investment account
A general investment account that can hold different types of investments but doesn’t give tax-free benefits like pensions and Isas.
✓ Junior Isa
A junior Isa is a tax-free savings account for under 18s.
A Sipp is a pension where you have complete control over the investments you put your savings into.
✓ Stocks and shares Isa
A stocks and shares Isa is a tax-free account that allows you to put your money in a range of investments.
✘ Advisory services
Advisory services allow you to access professional investment advice.
✘ Lifetime Isa
A lifetime Isa is a tax-free savings or investment account designed to help people aged 18-39 buy their first home or save for retirement.
✘ Savings account
A savings account is somewhere you can put your money so it can grow in value.
An annuity is an insurance product which allows you to swap your pension savings for a guaranteed regular income that will last for the rest of your life.
✘ Banking services
Banking services allow you to operate bank accounts, make transfers and make payments.
✓ Income drawdown
Income drawdown allows you to take money out of your pension to live on in retirement.
- Find out more: how investment platforms work
Is your money safe with Vanguard?
If Vanguard went out of business, you would be compensated by the Financial Services Compensation Scheme (FSCS).
The FSCS will cover up to £85,000 of investments per person, per platform. You can claim for free online: there’s no reason to use a claims management company.
You won’t be compensated for investments falling in value, or a company in which you hold shares goes bust, unless this poor performance resulted from bad advice given by a regulated Independent Financial Advisor that has since gone bust.
- Find out more: how the FSCS works
Get top money-saving tips from Which?
Sign up to the Which? Money Weekly newsletter to get our latest news, tips and deals straight to your inbox.