Hi, I'm Jen! I'm a personal finance expert and money coach aiming to help you take control of your money. I went from being broke to a six-figure net worth and am now on track to be financially independent at age 40. Discover Jen's story
Read this comparison to discover which platform is better for you: Trading 212 or Vanguard. Choosing the wrong of the two platforms could cost you in terms of fees and lower investment returns.
I’ve used Vanguard since 2019 and Trading 212 since 2021. They’re two of my favourite platforms. I use both, but for different purposes. Read below what I’ve learned about their differences and similarities.
🪧 Should you sign up through my affiliate links, I may receive a commission at no cost to you.
💡 Quick Answer: Trading 212 vs Vanguard
When comparing Trading 212 with Vanguard, there is no clear winner. Which platform is better depends on your investment goals. Vanguard is great for long-term investors looking to buy Vanguard funds. Trading 212 is great for active investing and buying other assets.
Comparison Overview
| Trading 212 | Vanguard | |
|---|---|---|
| ⭐ User ratings | 4.6 | 4.0 |
| 💷 Notable fees | 0.7% deposit fee* 0.15% for trades in different currencies 0.5% currency conversion fee | 0.15% account fees per year, capped at £375 |
| 💰 Accounts | GIA, ISA, CFD, Demo Account | GIA, ISA, SIPP |
| 📱 Platform | Web platform and app | Web platform and app |
| 📈 Assets | Over 12,000 stocks Other assets | Vanguard funds |
| 🪙 Minimum deposit | £1 (£10 for CFDs) | £500 lump sum or £100 regular investment |
| 🌱 Investment style | DIY Long-term investing Trading | DIY Long-term investing |
Company Backgrounds
Trading 212 was founded in 2004 in Bulgaria, and its headquarters is in London. The platform has 2 million clients and holds £3 billion in client assets. Read my Trading 212 review for more information.
Vanguard was founded in 1975 in the United States, and its UK office opened in 2009. Worldwide, the company has 50 million investors. Read more in my Vanguard review.
Vanguard is a larger and older investment platform compared to Trading 212. Because it is more established, you may feel more secure when investing with Vanguard. Yet having a long history does not necessarily mean Vanguard is the better broker.
User Ratings
Trading 212 has an average Trustpilot score of 4.6 out of 5.0. Overall, 86% of users rated the platform as great or excellent. Vanguard has an average Trustpilot score of 4.0 out of 5.0. Overall, 76% of users rated the platform as great or excellent.
Trading 212 is more popular on Trustpilot than Vanguard. This means users on Trading 212 are more satisfied with the service they receive.
What Is Trustpilot?
Overall, there are over 150 million reviews on Trustpilot. You can generally get a good understanding of the legitimacy and customer-friendliness of a company.
Ease of Use
1. Opening Accounts
Trading 212 and Vanguard are legit and reputable investment sites. Their sign-up processes are similar as they need to follow the legal requirements. Beyond this, both brokers also share key features:
- No fee for opening an account
- You can complete the entire process online
- No need to make a deposit when you sign up
2. User Interfaces
Trading 212 and Vanguard have user-friendly layouts and designs. The user interface also highlights that both platforms have different uses.
By default, Trading 212 lists popular stocks and their performances. You can customise this list to see your stocks of interest. If you’re a trader, being able to see the performance of your stocks quickly is essential.
Vanguard’s dashboard, on the other hand, shows you how much money you have in your accounts. This is helpful for investors who log in occasionally to check how much their fund has grown.
3. Depositing and Withdrawing Money
With Trading 212, you can deposit through:
- Bank transfer
- Debit or credit card
- eWallet
With Vanguard, you have to link a bank account and can only deposit and withdraw from this account. This limits your options but also provides more security.
Trading 212 allows for quick and easy deposits, so you can dive in quickly when stock prices are good. Long-term investors who don’t withdraw often may prefer slow but safe deposits with Vanguard.
Withdrawing takes up to three business days with Trading 212. Vanguard takes up to five business days.
Account Types
Vanguard and Trading 212 offer a General Investment Account and an Individual Savings Account (ISA). Trading 212 also offers a Demo Account and a Contracts for Difference (CFDs) account. On the other hand, Vanguard provides a Self-invested Personal Pension.
CFDs are a niche area of investing for advanced investors. They are active investments, and most investors lose money investing in them. Having a Demo Account is great because new investors can practice without risk.
Investment Products
Trading 212 offers over 12,00 global stocks and funds. Vanguard has 83 Vanguard funds. These include:
- Blended funds
- Equity funds
- Fixed-income funds
Trading 212 offers much more options for investors. You can sign up to the platform and then decide what you want to buy. Meanwhile, investors sign up to Vanguard specifically to buy Vanguard funds.
Fees
| Trading 212 | Vanguard | |
|---|---|---|
| Sign-up free | None | None |
| Deposit fee | 0.7% after depositing £2000 via debit or credit card | None |
| Withdrawal fee | None | None |
| Inactivity fee | None | None |
| Commission | None | None |
| Account fee | None | 0.15% per year, capped at £375 |
| Fund management fee | Depends on fund | 0.2% per year on average |
| Trading fee | 0.15% for trades in different currencies | 0.0%-0.1% |
| Other | 0.5% charge for currency conversion | 0.02%-0.15% one-off ETF fee £7.50 to buy at live price (optional) |
Trading 212 and Vanguard offer competitive prices. On Trading 212, you pay a fee for depositing by card and currency conversions. On Vanguard, depositing is free, but you pay a yearly account fee.
Trading 212 has no account fee. The broker makes money from CFDs, card deposits, currency conversions, and spreads. Overall, Trading 212 is cheaper than Vanguard.
Read how Vanguard’s fees compare to Freetrade’s in my Vanguard vs Freetrade comparison.
Buying Vanguard Funds on Trading 212
You can buy several Vanguard funds on Trading 212. However, you can’t find Vanguard’s most popular funds (LifeStrategy 100 and FTSE Global All Cap) on Trading 212.
Buying Vanguard funds on Trading 212 is cheaper than buying them on Vanguard. The only reason to use Vanguard is if you want a pension account or the fund you want isn’t on Trading 212.
You Can Open Accounts on Vanguard and Trading 212
You aren’t limited to one broker. Personally, I have accounts with every major broker in the UK. (Because I review them.) Trading 212 and Vanguard have different purposes, so you can use both.
However, you can only have one Vanguard account and one Trading 212 account. Opening multiple accounts with the same platform is against their terms.
Trading 212 vs Vanguard Comparison Summary
Trading 212 and Vanguard are some of the best investment apps in the UK. This comparison shows that Trading 212 is great for active investors who want to buy and sell stocks quickly. Vanguard, on the other hand, favours long-term investors who want passive investments.
Trading 212 is cheaper but has some limitations. Unlike Vanguard, it doesn’t offer a pension, and you can’t buy all Vanguard funds.
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