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When comparing Vanguard vs interactive investor, which broker performs better? Both platforms are well-known and popular, making choosing between them difficult. Ultimately, you can only use one investment platform. Choosing the wrong broker could mean losing money and wasting time.
Vanguard and interactive investor are both solid options for investors. Vanguard is generally better for investors with small portfolios. interactive investor is better for big investors and those seeking options beyond Vanguard funds.
Vanguard vs interactive investor Comparison Overview
| Broker | Vanguard | interactive investor |
|---|---|---|
| User ratings | 4.0/5.0 | 4.7/5.0 |
| Notable fees | 0.15% account fee 0.2% fund management fee | £4.99-£19.99 account fee £3.99-£5.99 trading fee |
| Account types | GIA, ISA, SIPP, Junior ISA | GIA, ISA, SIPP, Junior ISA |
| Platform | Website and app | Website and app |
| Markets | Funds | Shares, funds, trusts, bonds, gilts, ETFs |
| Minimum deposit | £500 lump sum or £100 monthly | £25 monthly |
| Investment style | DIY Long-term investing | DIY Long-term investing Trading |
| Sign-up bonus | None | None |
Company Backgrounds
Vanguard is an online investment platform founded in 1975. Vanguard came to the UK in 2009 and has over 50 million users worldwide. Read more in my Vanguard review.
interactive investor is a UK-based investment platform founded in 1995. It is an award-winning broker with over 400,000 customers. Read more in my interactive investor review.
interactive investor is the newer platform, but both companies have a long history.
User Ratings
Vanguard has an average score of 4.0 out of 5.0 on Trustpilot. Of the reviews, 76% are great or excellent. Meanwhile, interactive investor has an average score of 4.7 out of 5.0 on Trustpilot. Of these, 89% are great or excellent.
Both platforms are popular on Trustpilot. interactive investor is rated better, with a gap of 0.7 points between the two.
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.
Vanguard vs interactive investor Fees
| Vanguard | interactive investor | |
|---|---|---|
| Sign-up free | None | None |
| Deposit fee | None | None |
| Withdrawal fee | None | None |
| Inactivity fee | None | None |
| Commission | None | None |
| Account fee | 0.15% per year, capped at £375 | £4.99-£19.99 |
| Fund management fee | 0.2% on average | None |
| Trading fee | 0.0%-0.1% | £3.99-£5.99 |
| Other | 0.02%-0.15% one-off ETF fee £7.50 to buy at live price (optional) | £0.99 dividend reinvestment £10.00-£12.99 SIPP |
Vanguard charges a simple account fee of 0.15% with a cap of £375 per year. interactive investor charges a fixed fee. Fixed fees are typically better for investors with larger portfolios. interactive investor is generally cheaper if your portfolio value exceeds £100,000. For investors above the Vanguard price cap, Vanguard may be better.
Both Vanguard and interactive investor can be your cheapest option. This is dependent on how much you have in your portfolio.
It is worth doing the maths to decide which is better for you. You can also contact Vanguard or interactive investors’ customer support to help you figure out the costs.
Account Types
Both Vanguard and interactive investor have a good range of account types:
- General investment account (GIA)
- Individual savings account (ISA)
- Self-invested personal pension (SIPP)
- Junior ISA
Regarding accounts available, there is not much difference between the two platforms. Neither of them offers a Lifetime ISA.
Markets
On Vanguard, you can choose one or more of 83 funds, including ethical funds. You cannot buy single stocks. You also will not receive any help with selecting funds.
interactive investor has over 40,000 shares, funds, bonds, gilts, and trusts from the UK, the US, and the rest of the world. interactive investor is a DIY platform, but there are model portfolios that you can copy:
- Active Growth
- Active Income
- Low-cost Growth
- Low-cost Income
- Sustainable Growth
interactive investor also offers the most popular Vanguard funds. This includes the Vanguard LifeStrategy funds and the Vanguard FTSE Global All Cap Index Accumulator.
interactive investor has more fund options, including Vanguard funds.
User Interface
Both Vanguard and interactive investor have a web platform and an app. Both are user friendly and easy to use. interactive investor has more resources to help you navigate the platform and learn about investing. With Vanguard, you are on your own.
While both platforms are user friendly, interactive investor has more tools and resources.
Depositing and Withdrawing
Vanguard has a minimum deposit of a £500 lump sum or a £100 monthly direct debit. There are no fees for depositing and withdrawing money. Deposits are instant if you pay by card, and withdrawals take up to five business days.
interactive investor has no minimum deposit, but you must invest at least £25 monthly to access the free investment service. There are no fees for depositing and withdrawing. Withdrawals usually take less than two days.
interactive investor has a lower minimum investment amount, making it more accessible to beginners. They are also faster for withdrawals.
Customer Support
interactive investor offers fast and helpful customer support, given that they do not have a live chat. As I have stated in all my Vanguard-related posts, I do not like Vanguard’s customer support. I have been with Vanguard for a long time, and the customer service has sometimes been unhelpful and even misleading.
If customer support is important, I recommend interactive investor over Vanguard.
Is interactive investor Better Than Vanguard?
interactive investor is not necessarily better than Vanguard. With Vanguard, you get no-frills and cheap access to Vanguard funds.
interactive investor has more investment choices and other resources. Regarding fees, interactive investor could be cheaper, but this depends on your investment amount.
Vanguard vs interactive investor Comparison Summary
Vanguard and interactive investor are two solid investment platforms. Vanguard is a great platform to buy Vanguard funds, and interactive investor offers more variety. Both also belong to the best investment apps available in the UK.
The outcome of this comparison is as follows:
- User ratings: interactive investor
- Fees: Tie
- Account types: Tie
- Investment markets: interactive investor
- User interface: interactive investor
- Depositing and withdrawing: interactive investor
- Customer support: interactive investor
- Sign-up bonus and friend referral scheme: Tie
Overall, interactive investor wins more categories than Vanguard. This does not mean that interactive investor is universally better. Vanguard may be cheaper if you have a small portfolio or investments exceeding the price cap.
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