Vanguard and Moneyfarm are two popular ways for UK investors to put money into low-cost, diversified portfolios. They work differently. With Vanguard you mainly choose your own Vanguard funds, while Moneyfarm builds and manages an ETF portfolio for you.
Below we compare their fees, products and features using the information on their UK websites in October 2026, with a cost example to show which is cheaper for you.
Vanguard vs Moneyfarm in a nutshell
| Broker | Best for |
| Vanguard | DIY investors who want low-cost Vanguard funds and ETFs |
| Moneyfarm | Investors who want a managed portfolio and a dedicated consultant |
The main difference is who makes the decisions. At Vanguard, you pick from Vanguard’s own funds and ETFs, such as the LifeStrategy range, or pay extra for its Managed ISA. At Moneyfarm, you answer questions about your goals and risk, and its team builds, manages and rebalances a portfolio of ETFs for you.
Vanguard is cheaper, especially if you invest yourself. Moneyfarm costs more, but includes active management and access to an investment consultant.
Vanguard vs Moneyfarm: side-by-side comparison
| Feature | Vanguard | Moneyfarm |
| Account fee | £4 a month under £32,000, then 0.15% a year (max. £375) | 0.70% a year at £20,000 (managed) |
| Managed option | Managed ISA: extra 0.20% | Included |
| Fund costs | Set by each fund, plus 0.01% to 0.26% spread on ETFs | Up to 0.21% (funds and spread) |
| Minimum | £500, or £100 a month | £500 |
| Investments | Vanguard funds and ETFs | Managed ETF portfolios, plus UK shares and ETFs (£3.95 per trade) |
| Accounts | ISA, Junior ISA, General Account, Personal Pension | ISA, Junior ISA, Cash ISA, General Investment Account, SIPP |
| Interest on cash | 1.85% | Cash ISA from 3.57% AER |
| Mobile app | Yes (fund trading only) | Yes |
| Founded | 1975 (US) | 2011 |
Sources: Vanguard fees, Vanguard interest on cash, Moneyfarm pricing and Moneyfarm Cash ISA, October 2026. Rates are variable.
How much would you pay?
These are the yearly account and management fees for a £20,000 portfolio, before fund costs:
| Service | Yearly fee on £20,000 |
| Vanguard self-managed | £48 |
| Vanguard Managed ISA | £70 |
| Moneyfarm managed portfolio | £140 |
Vanguard self-managed: £4 a month minimum fee, since 0.15% of £20,000 is only £30. Vanguard Managed ISA: 0.15% account fee plus 0.20% management fee. Moneyfarm: 0.45% management fee plus 0.25% platform fee.
If you are happy to choose your own fund, Vanguard costs about a third of Moneyfarm on £20,000. Even its Managed ISA costs half as much. Moneyfarm’s higher fee pays for active management and access to a consultant by phone, app or web chat.
Vanguard: in a nutshell
Vanguard in a nutshell
Vanguard is one of the world’s largest fund managers and is known for its low-cost index funds. Its UK platform only offers Vanguard’s own funds and ETFs, including index trackers for markets such as the S&P 500 and the FTSE 100, the LifeStrategy ready-made funds and Target Retirement Funds.
The account fee is 0.15% a year, capped at £375, but accounts under £32,000 pay a minimum of £4 a month. There is no charge to buy, sell or switch funds. If you prefer someone else to choose, the Managed ISA adds a 0.20% management fee.
Vanguard now has a mobile app, where you can check your account, buy and sell funds, set up monthly payments and withdraw cash. Live ETF trading isn’t available in the app yet, and you open the account on the website.
Vanguard: pros and cons
| Pros | Cons |
| ✓ Low fees, capped at £375 a year | ✗ Only Vanguard funds and ETFs |
| ✓ Ready-made LifeStrategy and Target Retirement funds | ✗ £4 monthly minimum fee under £32,000 |
| ✓ No dealing fees on funds | ✗ No individual shares or bonds |
Moneyfarm: in a nutshell
Moneyfarm in a nutshell
Moneyfarm is a digital wealth manager founded in 2011. It offers seven diversified portfolios made of low-cost ETFs, recommends one after a short assessment of your goals and risk, and rebalances it for you. Each portfolio comes with a dedicated investment consultant you can reach by phone, in the app or by web chat.
On a £20,000 portfolio, Moneyfarm charges 0.70% a year, made up of a 0.45% management fee and a 0.25% platform fee. Fund costs and spreads add up to 0.21%. There are no entry, exit or withdrawal fees, and the minimum investment is £500.
Moneyfarm has also added a DIY side. You can buy UK shares and ETFs for £3.95 per trade, with a 0.35% custody fee in the ISA capped at £45 a year. US and European shares are listed as coming soon. Its Cash ISA paid 3.87% AER to new customers in the first year, then 3.57%. Moneyfarm also runs the Stocks and Shares ISA that eToro offers its UK clients.
Moneyfarm: pros and cons
| Pros | Cons |
| ✓ Portfolio built and rebalanced for you | ✗ 0.70% a year at £20,000, higher than Vanguard |
| ✓ Dedicated investment consultant | ✗ £500 minimum investment |
| ✓ Cash ISA, SIPP and share dealing in the same app | ✗ Share dealing limited to UK markets for now |
Conclusion: which one should you choose?
If you are comfortable choosing a fund yourself, Vanguard is the cheaper option: £48 a year on £20,000, falling to 0.15% above £32,000. Its LifeStrategy and Target Retirement funds already give you a ready-made, diversified portfolio in one fund.
If you would rather have a team build and rebalance your portfolio, and want someone to talk to, Moneyfarm is worth the higher fee of 0.70% a year at £20,000. Vanguard’s Managed ISA sits in between, at 0.35% a year.
Neither is built for trading individual shares. For that, see our guide to the cheapest stock trading platforms.
When investing, your capital is at risk and you may get back less than you invest.
FAQ
Is Vanguard cheaper than Moneyfarm?
Yes. On a £20,000 portfolio, Vanguard’s self-managed account costs £48 a year and its Managed ISA £70, against £140 for a Moneyfarm managed portfolio. Fund costs come on top for both.
Does Vanguard have an app in the UK?
Yes. The Vanguard app lets you view your account, buy and sell funds, set up monthly payments and withdraw cash. Live ETF trading isn’t available in the app yet.
Is my money protected with Vanguard and Moneyfarm?
Both are regulated by the Financial Conduct Authority (FCA) and must keep client investments separate from their own money. If a firm fails and assets are missing, the Financial Services Compensation Scheme (FSCS) may cover eligible investors up to £85,000. The FSCS does not cover falls in the value of your investments.
Charlie formerly worked at the Bank of England and is a qualified lawyer with expertise in intellectual property and technology disputes. He currently writes on about financial markets and investing.
