Freetrade vs Vanguard UK (2026):
Fees, Fund Range and a Clear Verdict
The break-even calculation that defined this comparison no longer exists. Freetrade moved the ISA — and the SIPP — to its free Basic plan. That means £0 in platform fees at every portfolio size. Vanguard charges a minimum of £48/year, scaling to £375/year at £250,000. The comparison now comes down to one question: do you need access to the full UCITS ETF market — iShares, Invesco, HSBC, Amundi — or is Vanguard’s own range of ~90 funds and ETFs enough?
Overview comparison
The key structural differences at a glance. Full fee detail is in the section below.
| Category | Freetrade | Vanguard UK |
|---|---|---|
| Best fit | Open-architecture ETF and stock investing; ISA and SIPP free on Basic — cheaper at every portfolio size | Vanguard-only passive portfolios; investors who value phone support and institutional brand trust over cost |
| Fund range | 6,500+ stocks and ETFs — all providers | ~90 Vanguard funds and ETFs only (61 funds, 29 ETFs) |
| 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 (applies to non-GBP assets only) | 0% (GBP-only platform) |
| ISA available | Yes — Basic plan (all plans, free) | Yes (Stocks and Shares ISA, Junior ISA) |
| SIPP available | Yes — Basic plan (all plans, since January 2026) | 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
- ISA included on free Basic plan — no monthly platform fee for ISA investors
- SIPP also on Basic plan since January 2026 — retirement account at no extra cost
- Full open-architecture fund range — iShares, Invesco, HSBC, Vanguard and more
- £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
- FX markup of 0.99% on Basic for non-GBP assets (reduced to 0.59% on Standard, 0.39% on Plus)
- Web platform only available on paid plans (Standard and Plus)
- 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
- 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 — valuable for SIPP and estate matters
- Uncapped cash interest at 1.85% (variable) on uninvested balances
- Junior ISA available alongside adult ISA and SIPP
- Platform fee (0.15% p.a., min £48/year) — more expensive than Freetrade Basic at every portfolio size
- Closed platform — Vanguard funds and ETFs only (~90 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 platform cost comparison
Freetrade moved its ISA to the free Basic plan in 2025 and the SIPP to Basic in January 2026. That changes the cost comparison completely.
| 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 |
| ISA access | Included | Included | Included | Included |
| SIPP access | Included (since Jan 2026) | Included | Included | Included |
| Commission per trade | £0 | £0 | £0 | £0 batch / £7.50 live |
| FX markup | 0.99% | 0.59% | 0.39% | 0% |
| Cash interest | 1% (up to £1,000) | 2.5% (up to £2,000) | 3.5% (up to £3,000) | 1.85% variable (uncapped) |
With the ISA on Basic (£0/year), there is no crossover point. Freetrade Basic is cheaper at every portfolio size.
| Portfolio Value | Vanguard Annual Fee | Freetrade Basic | Annual saving |
|---|---|---|---|
| £10,000 | £48 (minimum applies) | £0 | £48 |
| £32,000 | £48 (0.15% activates exactly here) | £0 | £48 |
| £50,000 | £75 | £0 | £75 |
| £100,000 | £150 | £0 | £150 |
| £250,000+ | £375 (capped) | £0 | £375 |
For a £30,000 ISA: Vanguard costs £48/year. Freetrade Basic costs £0. Freetrade saves £48/year — and gives access to the full ETF universe. If you only want Vanguard funds, Vanguard is still a reasonable choice on brand grounds, but the cost case for it has gone.
For a £100,000 ISA: Vanguard costs £150/year. Freetrade Basic costs £0. Freetrade saves £150/year. At that scale, the fund range restriction at Vanguard also becomes harder to justify — you are paying more for less choice.
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 90 Vanguard funds and ETFs only (61 funds, 29 ETFs)
- 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 covers the core passive building blocks well — 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 non-Vanguard ETFs (for example, iShares MSCI World SRI, Invesco S&P 500, or an 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 — at no additional platform cost.
Account types, recurring investing, and platform features
| Feature | Freetrade | Vanguard UK |
|---|---|---|
| GIA (General Account) | Yes — all plans | Yes |
| Stocks and Shares ISA | Yes — all plans (free on Basic) | Yes |
| Junior ISA | Yes | Yes |
| SIPP | Yes — all plans (free on Basic, since January 2026) | 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 |
Vanguard’s uncapped 1.85% is the better deal for investors who regularly hold larger cash balances between investments. Freetrade’s higher rates on Standard and Plus only apply to the first £2,000–3,000 — any cash beyond that earns nothing. This is one area where Vanguard holds a genuine advantage.
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
- You want an ISA or SIPP with no monthly platform fee — Freetrade Basic includes both at £0
- You want access to non-Vanguard ETFs — iShares, Invesco, HSBC, or a specific SRI or thematic fund
- You want to hold individual stocks alongside an ETF core
- You invest in US stocks and benefit from fractional shares — every pound gets allocated from £1
- You prefer a mobile-first interface and want flexible weekly or fortnightly recurring orders
- You want to avoid platform fees scaling with your portfolio as it grows
- Your strategy is a purely Vanguard passive portfolio — VWRL, LifeStrategy, or similar — and you have no use for other providers
- You value the institutional trust and brand reputation of one of the world’s largest asset managers
- You need phone support — particularly for SIPP drawdown, transfers, or estate matters
- You prefer a deliberately limited platform that removes the temptation to over-trade or over-tinker
- You hold a consistently larger uninvested cash balance and want an uncapped interest rate
Freetrade wins on cost at every portfolio size. There is no scenario where Vanguard UK is cheaper than Freetrade Basic for an ISA investor — the minimum £48/year always exceeds £0. The case for Vanguard is now entirely about brand, support, and deliberate simplicity — not fees.
If you are committed to a Vanguard-only strategy and value the institutional reassurance and phone access, Vanguard remains a reasonable choice. You are paying a premium for the experience and brand. If you want the lowest possible platform cost and the full fund market, Freetrade Basic is the answer.
Both platforms offer straightforward account opening. Freetrade: no minimum deposit, ISA and SIPP included free on Basic. 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?
Freetrade now includes the Stocks and Shares ISA on its free Basic plan — there is no monthly platform fee for ISA investors. Vanguard UK charges 0.15% p.a. with a minimum of £4/month (£48/year). For a £20,000 ISA, Vanguard costs £48/year while Freetrade Basic costs £0. Freetrade is cheaper at every portfolio size. The decision comes down to fund range: Vanguard if you specifically want its own products; Freetrade if you want open-architecture access to all UCITS ETF providers and individual stocks.
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 90 funds and ETFs (61 funds and 29 ETFs as of 2026). 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?
There is no break-even crossover. Freetrade moved the Stocks and Shares ISA to its free Basic plan in 2025, and the SIPP to Basic in January 2026. On Basic, the platform fee is £0/year. Vanguard charges 0.15% p.a. with a minimum of £48/year. Freetrade Basic is cheaper at every portfolio size — from a small starter ISA to a large retirement portfolio. The old £47,920 crossover figure no longer applies. The comparison now turns on fund range and brand preference, not platform cost.
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.