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Always remember that investments can go down as well as up in value, so you could get back less than you put in. A rule of thumb is to hang on to your investments for at least five years to give them the best chance of providing the returns you are hoping for.
Below, we compare two popular robo advisors - Moneybox and Moneyfarm.
Moneybox rounds up your everyday purchases to the nearest pound, then automatically invests the difference into an ISA or Pension, whereas Moneyfarm offers formal financial advice and allows you to invest via a Stocks and Shares ISA, General Investment Account, or Private Pension.
Use the tabs below to learn more about Moneybox and Moneyfarm.
When you pay for a Moneybox subscription, you can choose to invest your money in a variety of tracker funds.
Moneybox helps you invest your spare change by rounding up your card transactions to the nearest pound and investing the difference (e.g. if you spend £1.60 on a snack, MoneyBox automatically invests 40p for you).
The app allows you to make weekly or one-off deposits into one of three investment options based on your risk appetite - cautious, balanced or adventurous.
Money is invested in funds managed by established brands such as Legal & General, BlackRock and Fidelity.
Moneybox offers Stocks and Shares ISA, Lifetime ISA, Junior ISA, General Investment Account and Personal Pensions.
Moneybox allows a minimum ISA deposit of £1.
It’s free to download the app, and the savings products are completely free.
The investment and pension products come at a cost as detailed below:
ISA Charges
Subscription Fee: £1 per month (first 3 months free)
Platform Fee: £0.45% per month
Annual Investment Cost: 0.12% - 0.30%
Trading Fee: £0
Exit Fee: £0
Personal Pension Charges
Subscription Fee: £0 (you don't pay a subscription fee for this service).
Annual Platform Fee (Charged monthly):
Balances up to £100,000: 0.45%
Balances over £100,000: 0.15%
Fund Management Fee: 0.13% - 0.25%
To make sense of the charges, use our robo advisor charges comparison table.
Moneybox falls into the mid-price range category. Use our robo advisor charges comparison table to get a sense of how Moneybox compares to other robo advisors in the UK.
Moneybox is an app-based UK robo advisor. Its services are designed to appeal to beginner investors and the younger generation.
The round-up feature is great for people who want to invest regularly but don't know how much to invest or when to invest.
Yes. Moneybox invests your money in a variety of tracker funds. Tracker funds are passive investments.
When you invest with Moneybox, your money is protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000. This means you can get your money back if Moneybox were to go bust. Keep in mind that the FSCS does not cover losses arising from the performance of any of your investments.
Yes, to carry out payment services activities. Have a look at their regulatory permissions on the FCA Register.
No.
Visit Moneybox’s website here.
With the Moneyfarm app, you can invest through a Stocks and Shares ISA, General Investment Account or Private Pension. Users also benefit from free and personalised digital investment advice from Moneyfarm’s investment consultants.
Once you’ve completed a questionnaire specifying your investment goals, risk preferences and financial habits, Moneyfarm will recommend a selection of its seven risk-rated portfolios.
These range from 1 for the lowest risk, to 7 for the highest risk product. Portfolios on the lower end of the scale mostly comprise of lower-risk level fixed-income investments, including government, corporate and emerging market bonds.
For example, Portfolio 1 makes up 53% cash and short-term government bonds, whilst Portfolio 7 comprises 66% developed markets equities.
Moneyfarm has a minimum investment amount of £500.
It's completely free to download the app.
Then Moneyfarm charges a management fee depending on how you choose to invest. Management fees cover all of your Moneyfarm products and are calculated as follows:
Fees are calculated daily based on the total market value of your portfolio.
On average, you’ll be charged 0.2% per annum in exchange-traded funds (ETF) fees. This is built into the cost of the ETF on any given day, so you won’t see fund charges being deducted from your portfolio directly.
To make sense of the charges, use our robo advisor charges comparison table.
Moneyfarm falls into the mid-price range category. Use our robo advisor charges comparison table to understand how Moneyfarm compares to other robo advisors in the UK.
Moneyfarm is beginner-friendly. The services are designed to make personal investing more accessible to the average person by arranging and managing your investments for you.
It’s a great starting point for those who want to watch their money grow without dealing with the nitty-gritty details of investing.
You can use the Moneyfarm app, which is available on iOS and Android, to view your portfolio information and monitor your investment performance.
No. Although Moneyfarm uses exchange-traded funds (ETFs) and other passive trackers, the investment portfolios are actively managed by the team at Moneyfarm. Click here to learn more.
When you invest with Moneyfarm, your money is protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000. This means you can get your money back if Moneyfarm were to go bust. Keep in mind that the FSCS does not cover losses arising from the performance of any of your investments.
Yes, Moneyfarm is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at their regulatory permissions on the FCA Register.
No.
Visit Moneyfarm’s website here.
Every month, we’ll send you The Plug - a curation of the best personal finance content in the UK. We share real-life stories, how-to guides, top personal finance news, popular community questions, and tips to help you stay on top of your money.
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