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In my Wealthify vs Vanguard comparison, you’ll find out which of the two brokers is better for you.
Vanguard and Wealthify are both solid options for investors. Wealthify may be the better platform for beginners as it provides fund recommendations. Vanguard offers cheaper fees and a wider selection of funds.
Wealthify vs Vanguard Comparison Overview
| Wealthify | Vanguard | |
|---|---|---|
| User ratings | 4.0/5.0 | 4.0/5.0 |
| Notable fees | 0.6%-0.7% fund management fee | 0.15% account fee 0.2% fund management fee |
| Account types | GIA ISA SIPP Junior ISA | GIA ISA SIPP Junior ISA |
| Platform | Website and app | Website and app |
| Markets | Funds | Funds |
| Minimum deposit | £1 | £500 lump sum or £100 monthly |
| Investment style | Robo-advisor Long-term investing | DIY Long-term investing |
| 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.
Wealthify is a robo-advisor platform founded in 2014. It is a UK-based company with over 30,000 customers. Read more in my Wealthify review.
Wealthify is the newer and less established investment platform. But does this mean it performs worse?
User Ratings
Trustpilot
Wealthify has an average Trustpilot score of 4.0 out of 5.0. Overall, 88% of users rated the platform 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. Both sites have the same average rating.
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.
Wealthify vs Vanguard on Reddit
On Reddit, few threads compare the brokers. The general opinion appears to be that Vanguard is better than Wealthify. Users cite better portfolio returns as the reason. One person called Wealthify “Poorify”.
Wealthify vs Vanguard Fees
| Wealthify | Vanguard | |
|---|---|---|
| Sign-up free | None | None |
| Deposit fee | None | 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 | 0.6% (standard) 0.7% (ethical) | 0.2% on average |
| Trading fee | None | 0.0%-0.1% |
| Other | None | 0.02%-0.15% one-off ETF fee £7.50 to buy at live price (optional) |
Wealthify charges a fund management fee of 0.6%-0.7%. Vanguard’s account fee is 0.15%, and the fund management fee is 0.2%.
Vanguard is the cheaper platform. Yet, remember that you have to do all the work on Vanguard. Wealthify recommends a portfolio and takes care of the hassle. If you like DIY investing, read my Vanguard vs AJ Bell comparison.
Account Types
Both Vanguard and Wealthify off a(n):
- General investment account (GIA)
- Individual Savings Account (ISA)
- Self-invested Personal Pension (SIPP)
- Junior ISA
Wealthify and Vanguard have a great range of account types.
Assets
Vanguard and Wealthify only offer funds. On Vanguard, you can choose from 83 funds, including ethical funds. Vanguard does not help you choose a fund. You have to do your research.
Wealthify is a robo-advisor. It recommends a fund based on your preference. You do not need to have investment knowledge. Wealthify only has five funds for the standard and ethical plans.
If you are confident about choosing funds, you have greater variety on Vanguard. If you would rather have a recommendation, Wealthify can help you.
User Interface
Wealthify and Vanguard have a web platform and an app. Both are simple and easy to use. On Wealthify, you don’t have to search much since you get a recommendation. Wealthify also buys and sells your funds for you.
Since you must select your funds on Vanguard, you will spend more time on the site. Vanguard is easy to use. As a beginner, I found my way around easily.
Wealthify is easier to use than Vanguard because it recommends a fund. Wealthify also buys and sells funds for you.
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.
With Wealthify, there is no minimum deposit, and you can start with £1. Depositing and withdrawing money is free. Withdrawals typically take up to ten business days. This is because Wealthify also sells your fund.
Wealthify is better than Vanguard for depositing and withdrawing. You do not have the hurdle of a minimum deposit.
Customer Support
Because Wealthify is a robo-advisor, it is popular with beginner investors. Beginners often have questions, and thus, having strong support is a must. Indeed, Wealthify’s support is quick and helpful.
However, I am not a fan of Vanguard’s customer service. When I transferred my old workplace pension into my Vanguard SIPP, customer support was unhelpful and told me things that were not true. So if you are looking for competent customer support, Vanguard is not for you.
If customer support is important to you, I recommend Wealthify over Vanguard.
Is Wealthify Better Than Vanguard?
Wealthify is not necessarily better than Vanguard. Both are different platforms targeting different investors. With Wealthify, you get help investing in return for higher fees. Vanguard is a DIY platform, but you get cheaper fees and access to Vanguard funds.
Wealthify vs Vanguard Comparison Summary
Vanguard and Wealthify are solid investment platforms. Vanguard is a great platform to buy Vanguard funds, and Wealthify provides recommendations. Both belong to the best investment apps available in the UK.
The outcome of this comparison is as follows:
- User ratings: Tie
- Fees: Vanguard
- Account types: Tie
- Investment markets: Vanguard
- User interface: Wealthify
- Depositing and withdrawing: Wealthify
- Customer support: Wealthify
- Sign-up bonus and friend referral scheme: None
Wealthify wins in more categories than Vanguard. This does not mean that Wealthify is universally better. Which platform is better for you depends on your preferences and experience.
For beginner investors, Wealthify is likely the better choice. Advanced investors may prefer Vanguard for greater choice and lower fees.
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