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This Vanguard vs AJ Bell comparison compares the two brokers’ features, including the fees. After reading this post, you can choose between the two brokers. This ensures you put your money in the right place.
I’ve been reviewing and comparing investment platforms since 2019. Now, I’m comparing two of the UK’s most popular brokers.
💡 Quick Answer: Vanguard vs AJ Bell Comparison
anguard and AJ Bell are both solid options for investors. AJ Bell has more variety and resources than Vanguard. However, Vanguard is the better choice if you want to invest in Vanguard funds.
- 💡 Quick Answer: Vanguard vs AJ Bell Comparison
- Overview
- Company Backgrounds
- User Ratings
- Vanguard vs AJ Bell Fees
- Account Types
- Available Markets
- User Interface
- Depositing and Withdrawing
- Customer Support
- Sign-up Bonuses and Friend Referral Schemes
- Is AJ Bell Better Than Vanguard?
- Vanguard vs AJ Bell Comparison Summary
Overview
| Vanguard | AJ Bell |
|---|---|
| 4.1/5.0 | 4.7/5.0 |
| 0.15% account fee 0.2% fund management fee | Custody charges depending on investments |
| GIA, ISA, SIPP, Junior ISA | GIA, ISA, SIPP, Junior ISA, LISA |
| Website and app | Website and app |
| Funds | Shares, funds, trusts, ETFs |
| £500 lump sum or £100 monthly | £1 |
| DIY Long-term investing | DIY, pre-made portfolios Long-term investing |
| 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. AJ Bell is another online investment platform. It was founded in 1995 in the UK. The broker has over 400,000 customers and holds £71.5 billion in assets under administration.
AJ Bell is the newer investment platform, but both companies are well-established.
User Ratings
Trustpilot
Vanguard has an average score of 4.0 out of 5.0 on Trustpilot. Of the reviews, 76% are great or excellent. Meanwhile, AJ Bell has an average score of 4.7 out of 5.0. Of all reviews, 86% are great or excellent.
Both platforms are popular on Trustpilot. AJ Bell is rated slightly better, with a gap of 0.5 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 AJ Bell on Reddit
On Reddit, users highlight that Vanguard is cheaper than AJ Bell for most customers. However, this advantage depends on the investment assets held. On the other hand, Reddit users state that AJ Bell has a wider selection of funds. This makes sense, as Vanguard only offers its own funds.
Vanguard vs AJ Bell Fees
| Vanguard | AJ Bell | |
|---|---|---|
| Sign-up free | None | £120 for offline application |
| Deposit fee | None | None |
| Withdrawal fee | None | None |
| Inactivity fee | None | None |
| Commission | None | None |
| Account fee | 0.15% per year, capped at £375 | Custody charge for funds 0.25% on the first £250,000 0.1% for up to £1 million 0.025% up to £2 million Custody charge for shares, including ETFs 0.25%, capped at £3.50/month |
| Fund management fee | 0.2% on average | Depends on fund |
| Trading fee | 0.0%-0.1% | £1.50 for funds £9.95 for shares |
| Other | 0.02%-0.15% one-off ETF fee £7.50 to buy at live price (optional) | 0.5% currency conversion |
People often assume Vanguard is cheaper, but there has been much discussion about this. Vanguard charges an account fee of 0.15% with a cap of £375 per year. AJ Bell has a more complex fee structure, which depends on your holdings.
New investors often get confused because AJ Bell exchange-traded funds (ETFs) under the shares pricing structure. This is because ETFs are more similar to shares, which can be traded throughout the day.
Vanguard is cheaper than AJ Bell when comparing fund prices. AJ Bell is cheap for shares, but Vanguard does not offer single shares.
Account Types
Both Vanguard and AJ Bell have the following account types:
- General Investment Account (GIA)
- Individual Savings Account (ISA)
- Self-invested Personal Pension (SIPP)
- Junior ISA
In addition, AJ Bell also offers a Lifetime ISA. Many brokers do not offer Lifetime ISAs, making AJ Bell an attractive option.
Available Markets
On Vanguard, you can choose one or more of 83 funds, including ethical funds. You cannot buy single stocks on Vanguard. You also don’t get help with choosing funds. On AJ Bell, you can invest in shares, trusts, funds, and ETFs. The broker has over 2000 funds and over 3000 ETFs.
While Vanguard is DIY, AJ Bell also offers pre-made portfolios. There are four portfolios available:
- Cautious
- Balanced
- Adventurous
- Income
AJ Bell has more fund options. However, Vanguard is the obvious choice if you want to buy Vanguard funds.
If you want to buy cryptocurrencies, read my Vanguard vs eToro comparison.
User Interface
Vanguard and AJ Bell have a web platform and an app. Both are also user friendly and easy to use. AJ Bell has more resources to help you navigate the platform and learn about investing. You can also choose pre-made portfolios. With Vanguard, you are on your own.
While both platforms are user friendly, AJ Bell is better for beginners due to having guides and pre-made plans.
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.
AJ Bell has a minimum deposit of £1. There are no fees for depositing and withdrawing. Withdrawals usually take two business days.
AJ Bell has a lower minimum investment amount, making it more accessible to beginners. They are also faster for withdrawals.
Customer Support
AJ Bell has quick customer service. If you need help, you can read the FAQ or contact the live chat. As 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 been unhelpful and even misleading.
If customer support is important to you, I recommend AJ Bell over Vanguard.
Sign-up Bonuses and Friend Referral Schemes
Vanguard and AJ Bell do not have any sign-up bonuses.
Is AJ Bell Better Than Vanguard?
AJ Bell is not necessarily better than Vanguard. Both are two different platforms targeting different investors. With Vanguard, you get no-frills and cheap access to Vanguard funds. AJ Bell has more investment choices and other resources but may come at a higher price.
Vanguard vs AJ Bell Comparison Summary
Vanguard and AJ Bell are two solid investment platforms. Vanguard is a great platform to buy Vanguard funds, and AJ Bell offers more variety. Both also belong to the best investment apps available in the UK. The outcome of this Vanguard vs AJ Bell comparison is as follows:
- User ratings: AJ Bell
- Fees: Vanguard
- Account types: AJ Bell
- Investment markets: AJ Bell
- User interface: AJ Bell
- Depositing and withdrawing: AJ Bell
- Customer support: AJ Bell
- Sign-up bonus and friend referral scheme: Tie
Overall, AJ Bell wins more categories than Vanguard. This result does not mean that AJ Bell is universally better. If you want to invest in Vanguard funds, Vanguard is your better choice.
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