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When comparing Vanguard vs Moneybox, which investment platform is better? At first glance, Vanguard and Moneybox are very different brokers. Yet, your choice impacts your investment success and your future.
Vanguard and Moneybox are solid options for investors. Moneybox is more expensive but offers automated savings and savings accounts. Vanguard is better to invest in Vanguard funds.
Comparison Overview
| Broker | Vanguard | Moneybox |
|---|---|---|
| User ratings | 4.0/5.0 | 4.6/5.0 |
| Notable fees | 0.15% account fee 0.2% fund management fee | £1 per month + 0.45% daily account fee Up to 0.58% fund management fee |
| Account types | GIA, ISA, SIPP, Junior ISA | GIA, ISA, SIPP, Junior ISA, Lifetime ISA |
| Platform | Website and app | App |
| Markets | Funds | US stocks Funds |
| Minimum deposit | £500 lump sum or £100 monthly | None |
| Investment style | DIY Long-term investing | Premade plans DIY Long-term investing |
| Sign-up bonus | None | None |
Company Backgrounds
Moneybox is a savings and investment app. It enables you to save money from your bank account automatically. You can then invest this money into funds. Moneybox was established in 2016 and currently boasts over 900,000 users. Read more in my Moneybox review.
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.
Moneybox is the newer and less established investment platform. But does this mean it performs worse?
User Ratings
Trustpilot
Moneybox has an average Trustpilot score of 4.6 out of 5.0. Overall, 85% of users scored it as great or excellent. Meanwhile, Vanguard has an average score of 4.0 out of 5.0 on Trustpilot. Of the reviews, 76% are great or excellent.
When comparing Vanguard vs Moneybox, both platforms are popular on Trustpilot. Moneybox is rated better, with a gap of 0.6 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 Moneybox on Reddit
On Reddit, users highlight the convenience of Moneybox coupled with the higher fees. Vanguard is mentioned as the better platform because it is cheaper. However, if you are looking for a platform that rounds up your change, Moneybox is your choice.
Vanguard vs Moneybox Fees
| Broker | Vanguard | Moneybox |
|---|---|---|
| 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 | £1 per month for investing account + 0.45% daily platform fee |
| Fund management fee | 0.2% on average | 0.12%-0.58% |
| Trading fee | 0.0%-0.1% | None |
| Other | 0.02%-0.15% one-off ETF fee £7.50 to buy at live price (optional) | 0.45% currency conversion |
Vanguard and Moneybox charge account and fund management fees. Vanguard is cheaper than Moneybox. However, with Moneybox, you only pay fees for investing money. The automated saving (which Vanguard does not offer) is free.
This comparison is similar to my Nutmeg vs Vanguard comparison.
Account Types
Both Vanguard and Moneybox have a good range of account types:
- General investment account (GIA)
- Individual Savings Account (ISA)
- Self-invested Personal Pension (SIPP)
- Junior ISA
Moneybox also offers a lifetime ISA. Most investment platforms do not offer Lifetime ISAs, and most are cash based.
Markets
On Vanguard, you can choose between 83 funds, including ethical funds. You cannot buy stocks on Vanguard. You also don’t get help with choosing funds. On Moneybox, you can choose between three beginner plans if you need help:
- Cautious
- Balanced
- Adventurous
You can also choose between 24 funds on Moneybox. Moneybox offers 20 of the biggest US companies in terms of stocks. You cannot buy stocks from outside of the US.
Vanguard has more fund options. Moneybox is the better platform to buy stocks or use a premade plan.
User Interface
Vanguard has a web platform and an app. Moneybox is only available as an app. Both are quite simple and easy to use.
Moneybox is more beginner friendly because you can choose a plan. You can also opt not to invest your money and use savings accounts.
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. Deposits are instant if you pay by card, and withdrawals take up to five business days.
Moneybox is designed to round up your purchases and save the difference. There is no minimum investment amount. You cannot withdraw your money when using a savings account until the savings term ends. However, you can sell your investments at any time and withdraw that money.
Moneybox has a lower minimum investment amount, making it more accessible to beginners.
Customer Support
Moneybox has quick customer service and also offers free mortgage advice. Vanguard’s customer support takes a day to respond and is not always helpful.
If customer support is important to you, I recommend Moneybox over Vanguard.
Sign-up Bonuses and Friend Referral Schemes
Vanguard and Moneybox do not have sign-up bonuses. There are many sites online with Moneybox referral codes. However, none of these is currently working.
Is Moneybox Better Than Vanguard?
Moneybox is not necessarily better than Vanguard. Both are different platforms targeting different investors. With Moneybox, you can save money automatically and invest in single stocks. On the downside, you have to pay higher fees. Vanguard is a DIY platform, but you get cheaper fees and access to Vanguard funds.
Vanguard vs Moneybox Comparison Summary
Vanguard and Moneybox are solid investment platforms. Vanguard is a great platform to buy Vanguard funds, and Moneybox offers automated savings. Vanguard also belongs to the best investment apps available in the UK.
The outcome of this comparison is as follows:
- User ratings: Moneybox
- Fees: Vanguard
- Account types: Moneybox
- Investment markets: Tie
- User interface: Tie
- Depositing and withdrawing: Tie
- Customer support: Moneybox
- Sign-up bonus and friend referral scheme: Tie
Moneybox wins more categories than Vanguard. This does not mean that Moneybox is universally better. Moneybox does charge higher fees than Vanguard. Thus, Vanguard is better for cost-effective investing.
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