Freetrade vs Vanguard UK (2026):
Fees, Fund Range and a Clear Verdict
The decision comes down to two things: fund range and where the platform fee breaks even. Vanguard is own-funds only — roughly 85 ETFs and funds, all Vanguard. Freetrade opens the full UCITS market — iShares, Invesco, HSBC and everything else. On cost, Vanguard’s 0.15% p.a. fee is cheaper for ISA investors below approximately £47,920 compared to Freetrade Standard. Above that, Freetrade costs less — and gives you more.
Overview comparison
The key structural differences at a glance. Full fee detail and break-even maths are in the section below.
| Category | Freetrade | Vanguard UK |
|---|---|---|
| Best fit | Open-architecture ETF and stock investing; larger ISA portfolios above ~£48k | Vanguard-only passive portfolios; smaller ISA portfolios below ~£48k |
| Fund range | 6,500+ stocks and ETFs — all providers | ~85 Vanguard funds and ETFs only |
| Commission per trade | £0 (all plans) | £0 (batch dealing, twice daily); £7.50 (live Quote and Deal) |
| Platform fee | £0 Basic / £5.99/month Standard / £11.99/month Plus | 0.15% p.a. (min £4/month under £32,000; capped £375/year above £250,000) |
| FX markup | 0.99% Basic / 0.59% Standard / 0.39% Plus | 0% (GBP-only platform) |
| ISA available | Yes (Stocks and Shares ISA) | Yes (Stocks and Shares ISA, Junior ISA) |
| SIPP available | Yes (Plus plan) | Yes |
| Junior ISA | Yes | Yes |
| Fractional shares | Yes (US stocks, from £1) | No (ETFs: whole units only) |
| Recurring investing | Yes — weekly, fortnightly, monthly | Yes — monthly Direct Debit (from £25/month) |
| Regulator | FCA (FRN 783189) — owned by IG Group | FCA (FRN 527839) — Vanguard Asset Management Ltd |
| FSCS protection | Investments up to £85,000; cash up to £120,000 | Investments up to £85,000 |
| Minimum deposit | £0 | £500 lump sum / £100/month (regular) |
What each broker does well — and where it falls short
- Full open-architecture fund range — iShares, Invesco, HSBC, Vanguard and more
- Flat monthly fee model becomes cheaper above approximately £48,000 ISA value
- £0 commission on all trades across all plans
- Fractional shares on US stocks from £1 — every pound gets invested
- No minimum deposit; accessible from day one
- Flexible recurring orders — weekly, fortnightly, or monthly
- Owned by IG Group — established, publicly listed financial services group
- ISA access requires a paid plan (Standard at £5.99/month)
- SIPP access requires the Plus plan (£11.99/month)
- FX markup of 0.99% on Basic plan for non-GBP assets
- No telephone support — in-app chat only
- Historical user backlash over pricing changes after IG acquisition
- No FX conversion charges — GBP-only, single-currency simplicity
- 0.15% p.a. platform fee is cheaper for ISA investors below ~£48,000
- Highly trusted institutional brand — one of the world’s largest asset managers
- Low-friction environment that discourages over-trading
- Free batch ETF dealing — no commission on Vanguard ETF trades
- Phone support available — useful for SIPP and estate matters
- Junior ISA available alongside adult ISA and SIPP
- Closed platform — Vanguard funds and ETFs only, no third-party products
- Minimum £500 lump sum to open; £100/month for regular investing
- £7.50 per trade for live ETF dealing (batch dealing is free but runs only twice daily)
- No fractional ETF shares — must buy whole units
- Fee cap at £375/year only kicks in above £250,000
- Outdated interface; mobile app described as a work in progress
Full fee breakdown and the break-even calculation
The platform fee model is the deciding cost factor for most passive UK investors. Here is the exact maths.
| Fee | Freetrade Basic | Freetrade Standard | Freetrade Plus | Vanguard UK |
|---|---|---|---|---|
| Monthly platform fee | £0 | £5.99 | £11.99 | Min £4/month (under £32k); 0.15% p.a. above; capped £375/year above £250k |
| Annual platform cost | £0 | £71.88 | £143.88 | £48 min — scales with portfolio |
| Commission per trade | £0 | £0 | £0 | £0 batch / £7.50 live |
| FX markup | 0.99% | 0.59% | 0.39% | 0% |
| Custody fee | 0% | 0% | 0% | 0.15% p.a. |
Freetrade’s ISA requires the Standard plan at £5.99/month = £71.88/year. Vanguard’s 0.15% p.a. fee reaches £71.88 when a portfolio is worth exactly £47,920.
| Portfolio Value | Vanguard Annual Fee | Freetrade Standard | Cheaper option |
|---|---|---|---|
| £10,000 | £48 (minimum applies) | £71.88 | Vanguard |
| £20,000 | £48 (minimum applies) | £71.88 | Vanguard |
| £32,000 | £48 (0.15% kicks in exactly here) | £71.88 | Vanguard |
| £47,920 | £71.88 | £71.88 | Break-even |
| £60,000 | £90.00 | £71.88 | Freetrade Standard |
| £100,000 | £150.00 | £71.88 | Freetrade Standard |
| £250,000+ | £375 (capped) | £71.88 | Freetrade Standard |
For a £30,000 ISA: Vanguard costs £48/year. Freetrade Standard costs £71.88/year. Vanguard saves you £23.88 a year at this size — but limits you to its own 85 funds. If you only want Vanguard funds anyway, that limitation costs you nothing and the saving is real.
For a £100,000 ISA: Vanguard costs £150/year. Freetrade Standard costs £71.88/year. Freetrade saves £78.12/year and gives you access to the full ETF universe. At this portfolio size, the fund range restriction at Vanguard becomes the more significant constraint.
Open architecture vs closed platform — the biggest structural difference
This is where the two platforms diverge most sharply. It is not a marginal difference.
- 6,500+ stocks and ETFs — UK, US, and European markets
- Full UCITS ETF range: Vanguard, iShares, Invesco, HSBC, Xtrackers, Amundi and more
- Access to investment trusts, including popular UK investment trust names
- Crypto ETNs available on the platform
- You are not locked to any single provider’s product range
- Approximately 85 Vanguard funds and ETFs only
- No iShares, Invesco, HSBC, Amundi, or any third-party products
- No individual stocks — equity exposure only through funds
- No investment trusts
- Vanguard’s own range is comprehensive for a passive investor — but the constraint is real if you want anything outside it
If your strategy is straightforward — a global equity ETF like VWRL or FTSE All-World, possibly a bond fund, and nothing else — Vanguard’s closed architecture is not a practical constraint. Vanguard’s own funds cover the core passive building blocks well.
If you want to use non-Vanguard ETFs (for example, iShares MSCI World SRI, Invesco S&P 500, or a HSBC FTSE All-World with a lower OCF), or if you want to hold individual stocks alongside your ETF core, Vanguard cannot accommodate that. Freetrade can.
Account types, recurring investing, and platform features
| Feature | Freetrade | Vanguard UK |
|---|---|---|
| GIA (General Account) | Yes — all plans | Yes |
| Stocks and Shares ISA | Yes — Standard plan (£5.99/month) | Yes |
| Junior ISA | Yes | Yes |
| SIPP | Yes — Plus plan only (£11.99/month) | Yes — available on standard account |
| Lifetime ISA (LISA) | No | No |
| Joint accounts | No | No |
| Non-UK residents | UK residents only; not for US citizens | UK residents only; not for US citizens |
| Recurring investing | Weekly, fortnightly, monthly; up to 50 holdings per order | Monthly Direct Debit from £25/month per fund |
| Minimum for recurring | From £2 (whole shares / ETF units from the share price) | £25/month per fund |
| ETF dealing | Real-time market orders, £0 commission | Batch dealing free (twice daily); live Quote and Deal £7.50 |
| Web platform | Paid plans (Standard and Plus) only | Full web portal for all users |
| Mobile app | iOS and Android; primary interface | iOS and Android; described as a work in progress |
| Customer support | In-app chat; no phone support; Plus users get priority routing | Phone (9am–5pm Mon–Fri), secure message, chatbot |
Both platforms pay interest on uninvested cash, with important differences in rates and caps:
| Plan | Rate (AER) | Balance cap |
|---|---|---|
| Freetrade Basic | 1% | Up to £1,000 |
| Freetrade Standard | 2.5% | Up to £2,000 |
| Freetrade Plus | 3.5% | Up to £3,000 |
| Vanguard UK | 1.85% (variable, managed rate) | No fixed cap |
For investors who hold larger cash positions between investments, Vanguard’s uncapped 1.85% rate is more valuable. Freetrade’s higher rates (on Standard and Plus) only apply to the first £2,000–3,000 — beyond that, the excess earns nothing.
Is your money safe? Regulation, FSCS, and how assets are held
Both are FCA-regulated and FSCS-covered. There are some differences worth knowing.
- Freetrade Limited — FCA-regulated (FRN 783189)
- Owned by IG Group, a publicly listed and long-established UK financial services company
- FSCS: investments up to £85,000; cash deposits up to £120,000 (held with tier-1 banks such as Barclays and Lloyds)
- Securities held via Freetrade Nominees Limited — segregated from company assets
- Vanguard Asset Management, Limited — FCA-regulated (FRN 527839)
- Mutual ownership structure: Vanguard is owned by its own funds and fund shareholders, not outside shareholders
- FSCS: investments up to £85,000
- Client assets held by independent custodian State Street Bank and Trust Company — fully ring-fenced from Vanguard’s corporate assets
Who each broker actually fits
- Your ISA or GIA is worth more than approximately £48,000 and you want to stop paying a percentage fee that scales with your wealth
- You want access to non-Vanguard ETFs — iShares, Invesco, HSBC, or a specific SRI/thematic fund
- You want to hold individual stocks alongside an ETF core
- You invest small amounts in US stocks and benefit from fractional shares — every pound gets allocated
- You prefer a mobile-first interface and want flexible weekly or fortnightly recurring orders
- Your portfolio is below approximately £48,000 and you want the lowest possible platform cost for an ISA
- Your strategy is a straightforward Vanguard passive portfolio — VWRL, LifeStrategy, or a similar fund — and you have no need for other providers
- You value the institutional trust, the brand reputation, and the option of phone support for complex matters
- You want a platform with intentional low-friction design that does not push you toward activity
- You hold a larger uninvested cash balance and want an uncapped interest rate
If you are building a Vanguard-only passive portfolio and your ISA is below £48,000, choose Vanguard. The cost saving is real and the fund range restriction is not a constraint if you were going to buy Vanguard products anyway.
If you want access to the full ETF market, or your portfolio has grown past the break-even point, Freetrade Standard offers both lower cost and greater flexibility. The flat-fee model becomes increasingly valuable as the portfolio scales — at £250,000, Vanguard’s capped £375/year is still more than Freetrade Standard’s £71.88/year.
Both platforms offer straightforward account opening. Freetrade: no minimum deposit, live from the same day. Vanguard UK: £500 minimum lump sum or £100/month regular investing to open.
Capital at risk. Affiliate links — see disclosure below.
More UK broker comparisons and reviews
Frequently asked questions
Which broker is better for a small portfolio under £20,000?
For portfolios under £20,000, Vanguard UK costs £4/month (£48/year) on its flat minimum fee structure. Freetrade Basic costs £0 for a GIA. If you need an ISA, Freetrade Standard costs £5.99/month (£71.88/year), which is more expensive than Vanguard below approximately £48,000. For small ISA portfolios, Vanguard’s 0.15% p.a. fee works out cheaper than Freetrade’s flat Standard plan until you cross that break-even point.
Can I buy non-Vanguard ETFs like iShares or Invesco on Vanguard UK?
No. Vanguard UK is a closed platform — you can only invest in Vanguard’s own range of approximately 85 funds and ETFs. If you want access to iShares, Invesco, HSBC, or any other ETF provider, you need a different platform such as Freetrade, Hargreaves Lansdown, or AJ Bell.
Can I transfer my ISA from Freetrade to Vanguard UK — or the other way?
Yes, ISA transfers between UK providers are straightforward. You initiate the transfer at the receiving platform — do not withdraw and re-deposit, as that uses your annual ISA allowance. Timelines vary but most in-specie or cash ISA transfers complete within 15 to 30 working days. If you hold assets at Freetrade that Vanguard does not offer (such as non-Vanguard ETFs or individual stocks), those would need to be sold before transferring to Vanguard, as Vanguard only accepts cash transfers or its own funds.
Does Vanguard UK offer fractional shares?
Vanguard UK does not offer fractional ETF shares — you must buy whole units. Its mutual fund and OEIC range can be purchased in monetary amounts from £25/month, which effectively means fractional ownership of those funds. Freetrade supports fractional shares for US stocks from £1, but not for ETFs or UK or European stocks.
Is my money safer with Vanguard than with Freetrade?
Both platforms are FCA-regulated and covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 per investor for investments. Vanguard is part of the mutual-owned Vanguard Group, one of the world’s largest asset managers. Freetrade is owned by IG Group, a publicly listed and established financial services company. Neither platform holds client assets on its own balance sheet — assets are segregated with independent custodians. Both are credible and well-regulated for UK retail investors.
At what portfolio size does Freetrade become cheaper than Vanguard UK?
The break-even depends on which Freetrade plan you need. For an ISA, Freetrade Standard costs £71.88/year. Vanguard’s 0.15% annual fee reaches £71.88 at a portfolio value of approximately £47,920. Below that figure, Vanguard is cheaper. Above it, Freetrade Standard costs less. At the Plus plan (£143.88/year), the break-even moves to approximately £95,920. Above £250,000, Vanguard’s fee is capped at £375/year, which is still more than Freetrade Standard’s £71.88/year — but at that portfolio size, other platforms like Hargreaves Lansdown and AJ Bell also deserve evaluation.
Some of the links on this site are affiliate links, meaning we may earn a commission at no extra cost to you if you sign up through them. This does not affect our reviews or recommendations — we only feature products we genuinely believe are useful for investors. This site provides educational content only, not personalized investment advice. Investments can lose value and past performance does not guarantee future results. You are responsible for your own financial decisions and for confirming the tax and legal rules that apply in your country.