Vanguard is one of the UK's most respected low-cost providers, known for passive index investing. But that focus comes with trade-offs: you're limited to Vanguard's own funds and if you want a managed option, it costs extra on top of the account fee.
Below, we compare the leading Vanguard alternatives, show how Prosper stacks up head-to-head against Vanguard and cover other popular options investors search for.
Investing involves risk. Uninvested cash doesn't earn interest. Fees and features shown are correct as of June 2026. Always check current provider terms before switching.
Vanguard is a well-respected provider with some of the lowest fund fees in the UK investment market. However, many investors are now seeking alternatives to Vanguard due to a few limitations.
Vanguard only offers its own funds – around 85 in total. You can't invest in third-party ETFs or funds from other providers, which is a real limitation if you want to diversify beyond Vanguard's range or access specific sectors. Competitors such as AJ Bell, Fidelity and Prosper offer access to hundreds or thousands of funds from multiple providers.
Vanguard does offer a managed option (the Managed ISA and Managed Personal Pension), matching you to one of five risk-based portfolios. However, it comes at a cost: a management fee on top of Vanguard's 0.15% account fee brings the total closer to 0.45–0.52% a year, before fund charges.
Vanguard's platform is deliberately simple. It's light on the kind of tools that some newer platforms offer, and the interface feels dated next to modern fintech apps like Prosper.
vs Vanguard's 0.15% account fee
A £100,000 SIPP on Vanguard costs £150 a year in platform fees alone. On Prosper, it costs £0 in platform fees. Compounded over 20 years, that difference can add up to a meaningful chunk of your long-term returns.
The value of investments may rise or fall.
Below is a comparison of the leading Vanguard alternatives in the UK.
Here's how Prosper compares directly to Vanguard, feature by feature.
Prosper wins on headline cost and a wider multi-provider fund range. It also remains one of the most cost-efficient ways to hold Vanguard – or any – funds, with no platform, transaction, transfer or exit fees.
Uninvested cash doesn’t earn interest.
Switching from Vanguard tends to make the most sense if you:
Transferring your ISA or SIPP from Vanguard to Prosper is straightforward.
Prosper supports both cash and in-specie transfers.
Before requesting an in-specie transfer, ensure that all the funds you currently hold with Vanguard are on Prosper and confirm with Vanguard that they support in-specie transfers.
Start your transfer with Prosper and provide your Vanguard details. We'll deal with the rest.
Transfer durations can vary depending on Vanguard's processing backlog, which may cause delays beyond the typical timeframes.
Before transferring your Vanguard account, make sure to check for exit fees, lost benefits, employer contributions and compare charges.
Investing involves risk and reward.
Already have an account with Vanguard? Transfer it to Prosper. Or start fresh.
Consolidate your pensions into one low-cost, transparent Self-Invested Personal Pension (SIPP).
Invest in 200+ funds and ETFs with no platform fees. We’ll help you transfer your ISA, hassle-free.
Save up to £20,000 tax-free per year with unlimited withdrawals and FSCS protection.
Maxed your tax-free allowances? Enjoy flexible, unlimited investing with a GIA. Capital gains tax and dividend tax is payable.
ISA and SIPP eligibility and tax rules apply. Tax relief depends on personal circumstances and current rules can change.
We currently don’t offer annuity or support drawdowns at Prosper, or for individuals who have already made withdrawals from a pension, but we’re working on it.
Investing involves risk and reward.
