See whether UK robo-advisor Moneyfarm is right for you.
Moneyfarm; Vicky Leta/Insider
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Bottom line: Moneyfarm is best for UK-based, hands-off investors who prefer automated portfolio management. The platform also offers ongoing access to dedicated investment consultants. However, the tiered fee structure for Moneyfarm may not be ideal for those who want the lowest fees.
Overall rating
FeatureInsider rating (out of 5)Fees3.50Investment selection4.50Access4.73Ethics5.00Customer service4.75Overall score4.50
Is Moneyfarm right for you?
Moneyfarm is a UK-based platform offering automated portfolio management for general investment accounts, pensions, and individual savings accounts (also known as ISAs, these accounts include tax-free allowances for UK investors) for those with at least £500.
The platform also offers expert guidance, but it may not be ideal for those in search of low advisory fees. The lowest you’ll pay if you’ve got under £10,000 is 0.75% per year. In addition, you’ll want to look elsewhere if you’d like to trade on your own.
Moneyfarm vs. Nutmeg
MoneyFarm
Nutmeg
Min. Investment
£500
Min. Investment
£100 to £500
Fees
0.35% to 0.75%
Fees
0.25% to 0.75% (fees start at 0.75% for those with lower balances)
Investment choices
ETFs
Investment choices
ETFs
MoneyfarmNutmeg
Moneyfarm and Nutmeg are both competitive robo-advisors for hands-off UK investors. Both offer managed ETF portfolios, with access to financial advisors.
However, Nutmeg offers a wider range of account types. Both have general investment accounts and pensions, but Nutmeg has three ISA options (e.g., lifetime ISAs, stocks and shares ISAs, and junior ISAs). Moneyfarm’s ISA selection only includes stocks and shares ISAs and junior ISAs.
In addition, users with higher balances pay less at Nutmeg. For instance, those with more than £100,000 will either pay 0.25% or 0.35%, depending on the portfolio type. You’ll need at least £500,000 to pay Moneyfarm’s 0.35% annual rate.
Moneyfarm vs. Vanguard Personal Advisor Services
MoneyFarm
Vanguard
Min. Investment
£500
Min. Investment
$50,000
Fees
0.35% to 0.75%
Fees
0.30%
Investment choices
ETFs
Investment choices
Vanguard ETFs and mutual funds
MoneyfarmVanguard Personal Advisor Services
Moneyfarm and Vanguard Personal Advisor Services also resemble each other in that both platforms offer automated portfolio management with advisor oversight and guidance.
Besides fees, the main difference between the advisors is that Vanguard mainly serves US customers, while Moneyfarm offers its products to UK investors. However, Vanguard Personal Advisor Services is cheaper overall. It has a constant 0.30% fee, but Moneyfarm’s fees range from 0.35% to 0.75%.
Ways to invest with Moneyfarm
Automated portfolio management
You can get started with a minimum of £500 at Moneyfarm, but the platform recommends newcomers start with at least £2,500. As for its investment types, it primarily uses ETFs. These funds typically contain a mix of developed markets government bonds, inflation linked bonds, investment grade corporate bonds, developed markets equity, and more.
Its ETF expense ratios average 0.20%. You’ll run into similar fund fees at other automated platforms like Nutmeg. As for its portfolio types, Moneyfarm offers two:
Classic: These portfolios invest in a standard mix of companies that align with your specified goals and risk tolerance. As with Moneyfarm’s socially responsible portfolios, advisory fees range from 0.35% to 0.75%.Socially responsible: You can also make a positive impact with your investing, thanks to its socially responsible portfolios. Moneyfarm additionally uses MSCI data to ensure the funds it selects have high environmental, social, and corporate governance (ESG) standards. See more here.
Additional services
The robo-advisor doesn’t stop at automated portfolio management either. In fact, its wealth planning services are in line with those provided by other popular robo-advisors. It offers free access to a team of consultants who provide investment advice, monitor your portfolio, and make changes to your allocation when necessary.
Plus, you can access these experts through phone, email, or live chat. You can also use its Advice Centre to keep your advisor informed about any life changes.
Fees
The amount you pay in fees depends solely on your investment account balance. Moneyfarm has the following tiered fee schedule:
Balances under £100,000:0.75% on investments up to £10,0000.70% on investments between £10,000 and £20,0000.65% on investments between £20,000 and £50,0000.60% on investments between £50,000 and £100,000Balances over £100,000:0.45% on investments between £100,000 and £250,0000.40% on investments between £250,000 and £500,0000.35% on investments over £500,000
You’ll only be able to pay the 0.35% rate if you invest over £500,000.
Additional services
The robo-advisor doesn’t stop at automated portfolio management either. In fact, its wealth planning services are in line with those provided by other popular robo-advisors. It offers free access to a team of consultants who provide investment advice, monitor your portfolio, and make changes to your allocation when necessary.
Plus, you can access these experts through phone, email, or live chat. You can also use its Advice Centre to keep your advisor informed about any life changes.
Moneyfarm: Is it trustworthy?
Moneyfarm doesn’t have a profile with the Better Business Bureau since it’s a London-based investment platform. However, the robo-advisor’s record is clear of any major lawsuits and scandals, and it’s authorized and regulated by the Financial Conduct Authority.
Moneyfarm — Frequently Asked Questions (FAQ)
Is MoneyFarm actively managed?
Yes. Moneyfarm builds and manages a personalized ETF portfolio for you. Its account selection includes general investment accounts, private pensions, and ISAs.
How do you invest in MoneyFarm?
You’ll need to first fill out information (e.g., initial investment amount, goals, risk tolerance, and time horizon) regarding your investment preferences. After selecting your account type(s), Moneyfarm creates a customized and self-managing ETF portfolio for you..
You can adjust your investing goals at any time, and the robo-advisor gives each user access to a dedicated investment consultant.
How many ISAs can you have?
Moneyfarm offers two ISAs: a stocks and shares ISA and a junior ISA. You can open one of both ISA types in the same tax year.
Related terms
Robo-advisor: Also known as automated investing portfolios, these accounts use computer algorithms and/or expert oversight to build personalized, self-managing portfolios for hands-off investors. ETFs: These funds usually contain a blend of stocks, bonds, and commodities. You can invest in two types of ETFs: index-based ETFs and actively managed ETFs. Mutual funds: Like ETFs, mutual funds consist of multiple investment types, but they’re usually overseen by professional money managers.Brokerage account: Offered by investment platforms and broker-dealers, brokerage accounts let you invest in stocks, ETFs, options, and other asset types.