Investlytic

Vanguard UK vs Freetrade: which is better in 2026?

Vanguard UK
Vanguard UK
Review →
vs
Freetrade
Freetrade
Review →

Point-by-point comparison

CategoryVanguard UKFreetradeWinner
Tax wrapperISA / SIPP tax wrapperISA / SIPP tax wrapperDraw
Fees0.15% (capped £375/yr)£0 commissionFreetrade
Regular investingFree (no dealing fees)Free (ISA & SIPP since Jan 2026)Freetrade
Platform6/107/10Freetrade
Market coverage3/107/10Freetrade
Customer support6/106/10Draw

The verdict

Overall, Freetrade comes out slightly ahead in this comparison, but the difference depends heavily on what you're looking for: check the table above to see which criterion matters most for you.

Why choose Vanguard UK

  • One of the lowest percentage platform fees in the UK, at 0.15% capped at £375/year
  • No dealing fees at all on Vanguard funds or ETFs, no transfer or exit fees
  • LifeStrategy and Target Retirement funds are exclusive to Vanguard, genuinely "set and forget"
  • One combined account fee across ISA, SIPP and other Vanguard accounts

Why choose Freetrade

  • ISA and SIPP both genuinely free on the Basic plan since January 2026
  • Unlimited commission-free trades, no per-trade dealing charge
  • Flexible ISA — withdraw and replace funds without losing your annual allowance
  • Now part of IG Group, adding institutional backing since April 2025

Frequently asked questions

Vanguard UK or Freetrade: which is cheaper?
Freetrade is generally cheaper: £0 commission, versus 0.15% (capped £375/yr) for Vanguard UK.
Vanguard UK or Freetrade: which has the simpler tax treatment?
Tax treatment is comparable between the two: Vanguard UK — ISA / SIPP tax wrapper; Freetrade — ISA / SIPP tax wrapper.
Vanguard UK or Freetrade: which is better for beginners?
Freetrade tends to be more beginner-friendly, thanks to a stronger platform and customer support. Vanguard UK remains a solid choice if you're already familiar with the markets.
Can I set up regular investing on Vanguard UK and Freetrade?
On Vanguard UK: Free (no dealing fees). On Freetrade: Free (ISA & SIPP since Jan 2026).
Vanguard UK or Freetrade: which is safer?
Vanguard UK: Vanguard Investor is regulated by the Financial Conduct Authority (FCA). Eligible money and investments held with Vanguard UK are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 if the firm were to fail — the standard level of protection for any FCA-regulated UK investment platform. Freetrade: Freetrade is authorised and regulated by the Financial Conduct Authority (FCA), and became part of IG Group — a much larger, established UK financial services group — in April 2025. Investments are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000, while eligible cash deposits may be protected up to £120,000 through Freetrade's banking partner arrangements.
Read the full Vanguard UK review → Read the full Freetrade review → Compare all brokers →
Information on fees and features is accurate at the time of publication but may change: always check current terms on the broker's official website before opening an account. This is not financial advice.