Moneysupermarket launches 'low-cost' investment platform offering access to Vanguard funds

Products featured in this article are independently selected by This is Money's specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.Moneysupermarket* has launched its own do-it-yourself investment platform for novice investors offering access to 40 funds and exchange-traded funds (ETFs).Customers will be able to choose from ready-made investments – including Vanguard LifeStrategy funds – as well as individual funds and ETFs.The price comparison website has said its new investment platform – called Investing by Moneysupermarket – is 'low-cost'. It's true that there are no trading fees, but the annual 0.34 per cent account fee looks expensive when compared with other providers.The 0.34 per cent charge is low when you're just getting started – it makes the yearly fee just £3.40 on a £1,000 pot – but as your pot grows, your costs do too.It's possible to find investment platforms suited to beginners that don't charge platform fees at all, including Freetrade*, InvestEngine* and Prosper*.Vanguard LifeStrategy funds are available on Freetrade and Prosper, so novice investors can keep costs low by checking all their options before getting started.> Find out more at Moneysupermarket* Doctor no more: David Tennant is Moneysupermarket's 'Head of Training' in its latest adJoin the discussionAre high fees on beginner investment platforms unfair or just the price of convenience?What's your view?What do investors get with Moneysupermarket?The new investing platform is targeted at beginners, with a limited choice of investments initially and no ability to own individual stocks and shares.You can choose from 40 funds and exchange-traded funds (ETFs). This includes ready-made investments and self-directed ones, such as funds that track major sectors, including the US S&P 500 index.In terms of accounts, Moneysupermarket is offering a tax-free stocks and shares Isa and a general investment account, within which gains and dividends are taxable.Investing is available through the Moneysupermarket app. You'll also qualify for Supersaveclub membership, which is a loyalty scheme that pays you cashback and other rewards.Your first three months of investing will effectively be free, with your monthly platform fee credited to your Supersaveclub wallet.Lis Barton, chief customer officer at Moneysupermarket, said the new investment platform is a 'major step in our journey to becoming a financial companion for our customers, helping people manage their finances today and take action to grow their money for the future.'Earlier this year the comparison website launched Savings by Moneysupermarket, a savings platform that allows you to compare accounts from multiple banks and spread your money between them using one log in.It works in a similar way to Hargreaves Lansdown Active Savings*, which is currently paying between £20 and £750 cashback when you sign up for a new account by 30 July.Is Investing by Moneysupermarket right for you?It's positive that Moneysupermarket looks set to help its customers take a first step into investing.But as the value of their investments grows, they might want to keep on top of which other platforms are available – they could save money with other options targeted at novice investors.AJ Bell Dodl* is another app for beginners, offering a range of ETFs as well as Vanguard LifeStrategy funds. It also offers a selection of US and UK shares.It charges 0.15 per cent of the value of your investments, but the minimum £1 monthly charge means that those with very small portfolios are likely to be better off with Moneysupermarket.However the value of investments would only need to reach around £3,530 for AJ Bell Dodl to start becoming cheaper than Moneysupermarket. Find out more and open an account at AJ Bell Dodl*.Some investment platforms don't charge account fees at allI regularly test investment platforms, and I've found some options with no account fees that are particularly suited to beginners who are prepared to put in a little research beforehand.When I reviewed Freetrade, I liked how straightforward it was to discover and buy investments. There are no platform fees, unless you want to pay for cheaper foreign exchange fees and interest rates on uninvested cash.It offers more accounts too, with a self-invested personal pension (Sipp) and junior stocks and shares Isa available, as well as a general investment account and stocks and shares Isa. Find out more and open an account at Freetrade*.Other good investment platforms for beginners include InvestEngine and Prosper.InvestEngine only offers access to exchange-traded funds (ETFs), which gives investors a simple way to access a large set of investments within one product.You can choose ETFs that follow the performance of major markets such as the UK FTSE 100 – which includes stocks such as BP and Tesco – and the US S&P 500, made up of companies such as Apple and Tesla. Find out more and open an account at InvestEngine*.Meanwhile Prosper goes one further in terms of cutting costs. Investments like funds and ETFs have underlying management fees which are difficult to slash. They're not charged by investment platforms, rather they're levied by the actual company managing the investment – such as Vanguard.This means that you'll still be paying fees in some form even when a platform doesn't charge account fees.However Prosper refunds these underlying fees on over 30 funds, so it's possible to invest at zero cost. Find out more and open an account at Prosper*.For more, you can read our roundups of the best stocks and shares Isas and the best Sipps, which explain why you would want to use each type of account – and which platforms are suited for beginners.SAVE MONEY, MAKE MONEYUp to £200 cashbackUp to £200 cashback5% cashback when investing at least £1004.56% cash Isa4.56% cash IsaTrading 212: 0.96% fixed 12-month bonus£200 Sipp cashback£200 Sipp cashbackFund a pension with at least £20,000Up to £750 cashbackUp to £750 cashbackOpen a savings account with at least £10,000Welcome bonusWelcome bonusGet up to £200 when you invest £100Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.