InvestEngine is a UK-based investment platform designed to make ETF (Exchange-Traded Fund) investing simple, affordable, and accessible. Whether you’re a novice investor or a seasoned pro, InvestEngine offers a mix of low costs, automation, and flexibility that makes it a standout option in the UK market.
In this InvestEngine review, we’ll take an in-depth look at InvestEngine, compare it with Vanguard, and explore why it’s an attractive choice for UK investors.
Table of Contents
What is InvestEngine?
InvestEngine is an investment platform specialising in ETF investing, offering two main approaches:
- Managed Portfolios: Perfect for hands-off investors, these are professionally built and maintained portfolios tailored to your financial goals and risk tolerance.
- DIY Portfolios: Ideal for those who want control, this option allows you to choose from a wide range of ETFs, building and managing your own investment strategy.
Founded with the aim of making investing affordable and accessible, InvestEngine is FCA-regulated, prioritising transparency and simplicity. Its focus on ETFs ensures cost-effective diversification across global markets.
Key Features of InvestEngine
Managed Portfolios
InvestEngine’s Managed Portfolios are a great choice for investors who prefer to leave decision-making to the experts. After answering a few questions about your goals, time horizon, and risk tolerance, InvestEngine’s algorithm builds a diversified ETF portfolio for you.
Features include:
- Personalised Portfolios: Tailored to your specific financial objectives.
- Ongoing Management: Portfolios are rebalanced automatically to maintain optimal asset allocation.
- Low Costs: Managed portfolios come without additional management fees—you only pay the ETF’s fund fees.
DIY Portfolios
DIY Portfolios give you full control. You can:
- Choose from 500+ ETFs spanning global equities, bonds, and thematic investments.
- Adjust allocations as often as you want, without incurring trading fees.
- Automate regular contributions for consistent investing.
This approach is perfect for investors with specific preferences or strategies.
Automated Investing Tools
Regardless of the portfolio type, InvestEngine provides tools to simplify investing:
- Automated Rebalancing: Keeps your portfolio aligned with your goals.
- Dividend Reinvestment: Automatically reinvests ETF dividends, boosting long-term returns.
- Regular Contributions: Set up automated payments to build your portfolio gradually.
Account Types
InvestEngine offers the following account types:
- Individual Savings Accounts (ISAs): Tax-efficient accounts for UK residents, ideal for long-term investing.
- General Investment Accounts (GIAs): Flexible accounts with no contribution limits.
- Business Accounts: Designed for companies looking to invest surplus cash.
InvestEngine Fees
One of InvestEngine’s biggest selling points is its low-cost structure. There are no account fees for either Managed or DIY Portfolios. Additionally:
- ETF Fund Fees: These typically range from 0.15% to 0.25% annually, depending on the ETFs selected.
- No Trading Fees: Unlike traditional platforms, you won’t pay to buy or sell ETFs.
Here’s a summary:
| Fee Type | Cost at InvestEngine |
|---|---|
| Account Fee | £0 |
| ETF Fund Fees | 0.15% – 0.25% |
| Trading Fees | £0 |
| Minimum Investment | £1 |
InvestEngine vs Vanguard: A Detailed Comparison
While both InvestEngine and Vanguard are popular ETF investment platforms in the UK, they cater to different investor needs. Let’s break down how they compare:
1. Fees
| Feature | InvestEngine | Vanguard |
|---|---|---|
| Platform Fees | £0 | £7.50 quarterly (£30/year) |
| Trading Fees | £0 | £0 |
| ETF Fund Fees | 0.15% – 0.25% | 0.15% |
InvestEngine’s zero platform fees make it significantly cheaper than Vanguard, especially for small-to-medium-sized portfolios. For more information on the fees charged now that Vanguard has update it’s fees in 2025.
2. Portfolio Options
| Feature | InvestEngine | Vanguard |
|---|---|---|
| Managed Portfolios | Yes (no extra cost) | Yes (£7.50 quarterly fee) |
| DIY Portfolios | Yes | Limited (mostly Vanguard ETFs) |
While Vanguard only offers its own ETFs, InvestEngine provides access to ETFs from multiple providers like iShares and Invesco, offering greater flexibility.
3. Automation and Tools
| Feature | InvestEngine | Vanguard |
|---|---|---|
| Automated Rebalancing | Yes | Yes |
| Dividend Reinvestment | Yes | Yes |
| Customisation | High (500+ ETFs) | Low (Vanguard-only ETFs) |
InvestEngine’s wider ETF selection and automation tools give it a significant edge for DIY investors.
4. Ease of Use
Both platforms are user-friendly, but InvestEngine’s sleek interface and automation features make it slightly more modern and intuitive for beginners.
INVESTENGINE VS VANGUARD Verdict:
If you’re looking for a low-cost platform with more ETF options and flexibility, InvestEngine is the clear winner. Vanguard may still appeal to investors loyal to its brand and product simplicity.
How to Get Started with InvestEngine
- Sign Up: Visit the InvestEngine website or download the app to create an account. Registration is quick and straightforward.
- Choose Your Portfolio Type: Decide between a Managed Portfolio (for a hands-off approach) or a DIY Portfolio (for control and customisation).
- Complete Risk Assessment: For Managed Portfolios, complete a brief questionnaire to determine your risk tolerance.
- Fund Your Account: Start investing with as little as £1 by linking your bank account.
- Monitor and Adjust: Use the platform’s intuitive dashboard to track performance and make changes as needed.
Safety and Security
InvestEngine prioritises the safety of your investments. Key features include:
- FCA Regulation: Fully authorised and regulated by the Financial Conduct Authority.
- FSCS Protection: Your investments are covered up to £85,000 under the Financial Services Compensation Scheme.
- Segregated Accounts: Client funds are held separately from InvestEngine’s operational accounts, ensuring they remain safe.
Pros and Cons
Pros
- No Platform Fees: InvestEngine is one of the most affordable ETF platforms in the UK.
- Wide ETF Selection: Access to 500+ ETFs from leading providers.
- Automation Tools: Features like rebalancing and dividend reinvestment simplify portfolio management.
- User-Friendly Interface: Ideal for beginners and experienced investors alike.
- Flexible Portfolios: Offers both Managed and DIY options.
Cons
- Limited Product Range: Focuses solely on ETFs, with no access to individual stocks or mutual funds.
- No Pension Accounts: SIPPs (Self-Invested Personal Pensions) are currently unavailable.
FAQs
Is InvestEngine suitable for beginners?
Absolutely. Its Managed Portfolios and automation tools make it perfect for those new to investing.
Can I open an ISA with InvestEngine?
Yes, InvestEngine offers tax-efficient ISAs for UK investors.
How does InvestEngine make money?
InvestEngine earns revenue from the spread on ETF trades and interest on uninvested cash.
s my money safe with InvestEngine?
Yes, InvestEngine is FCA-regulated and provides FSCS protection up to £85,000.
Conclusion
InvestEngine’s combination of zero platform fees, automation tools, and extensive ETF options make it one of the best investment platforms for UK investors. Whether you’re looking for a hands-off solution or the flexibility to build your own portfolio, InvestEngine delivers excellent value compared to competitors like Vanguard.
With its beginner-friendly design and cost-saving features, InvestEngine is a standout choice for those seeking affordable, diversified, and efficient investing.
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