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.
Robo advisors are technology companies that provide automated financial planning with little or no human supervision. Their products include ready-made investments, managed investments and financial advice.
Compare some of the best robo advisors in the UK below.
Capital at risk. ISA rules apply. Other charges apply.
Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences. It has seven globally diversified risk-rated portfolios, including ethical investments. The team at Moneyfarm actively manages your investments, so you can be sure you've got a good mix of hard-working assets handpicked from around the world. You also benefit from free and personalised digital financial advice from Moneyfarm's investment consultants, and you can chat, phone, email, or meet your consultant in person. Moneyfarm's products include Stocks and Shares ISA, General Investment Account, and Personal Pension. Moneyfarm recently introduced the Environmental, Social and Governance (ESG) investment style to its portfolios.
eToro is a commission-free multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs. eToro has over 40 fully allocated, balanced investment portfolios, focusing on market segments you can understand and to which you can relate. Some of the portfolios include BigTech, DividendGrowth, GoldWorldWide, Vaccine-Med, FoodDrink, BitcoinWorldWide, CyberSecurity, Diabetes-Med, Driverless, GigEconomy, Utilities and many more. These portfolios are a grouping of several assets, such as stocks, cryptocurrencies, ETFs, and even people, bundled together based on a predetermined theme or strategy. If you prefer to pick individual stocks or cryptocurrencies, eToro has a wide range of investments for you to choose from. It is entirely free to open an account with eToro, and all registered users receive a US$100,000 demo account for free. You also do not pay trading or platform fees with eToro. Withdrawals incur a fee of US$5, and FX rates apply to non-USD deposits and withdrawals. eToro does not offer ISA or SIPP.
InvestEngine is a UK investment platform providing ready-made and commission-free DIY investments. Users can invest in ETFs through a Stocks and Shares ISA, personal account or business account. With InvestEngine, there are no setup fees, dealing fees, ISA fees or withdrawal fees. If you choose the DIY Portfolio, you can invest in ETFs commission-free. InvestEngine offers Stocks and Shares ISA, Personal Investment Account and Business Account (for companies).
Promo: £50 welcome bonus. Terms and conditions apply.
When you subscribe to Plum Plus or Plum Pro (from £1 a month), you can choose to invest your money in a variety of funds. Plum calculates how much you can afford to set aside and automatically invests that amount for you. You choose your investments based on what matters to you. For example, you could choose to invest in emerging markets, technology, ethical companies, etc. Plum offers Stocks and Shares ISA, SIPP, and other money management tools.
Wealthsimple is a low-cost robo advisor offering a quick and easy way to invest in diversified portfolios. The investments are passive, which means that your money is invested across the entire stock market using funds that track the global economy. To begin investing, you need to answer a few questions, and the team will help you choose a risk level that is suitable for you, then build a custom portfolio based on your financial goals. You can manage your accounts from anywhere via the website and mobile app. Wealthsimple offers automatic investing and rebalancing, dividend reinvesting, tax-loss harvesting and socially responsible investment styles. Its investment products include Stocks and Shares ISA, Junior ISA, SIPP and Personal Investment Account.
To make sense of the charges, use our robo advisor price comparison table below.
Robo advisors are excellent for beginner investors or those who do not want to deal with the hassle of choosing individual stocks, shares, and other investments.
The table below compares the annual stocks and shares ISA charges of some of the best robo advisors and investment platforms in the UK.
To make the best use of the table below, click on the column headers to sort from the most expensive to the cheapest robo advisor and vice versa.
For example, if you want to see the cheapest robo advisor for regular investments of £100 per month, click once on the "£100 per Month" header. To see the most expensive robo advisor for a lump sum investment of £20k, click twice on the "£20,000 Lump Sum" header.
Continue this exercise on all the headers until you find what you are looking for. Then scroll down to read our assumptions and to learn more about robo advisors.
Capital at risk. ISA rules apply. Other charges apply.
When you invest using a robo advisor, please note the fund manager will add on various charges within the fund. A good representation of those charges is the average investment cost or Ongoing Charges Figure (OCF).
OCF estimates the portion of your investment's total cost that goes to the fund manager and is separate from the platform fee and dealing fee.
The examples in the price comparison table above should give you an idea of the total cost of your investment, including platform fees, dealing fees, OCF, and transaction costs (where we could find them).
In each case, we've used a mid-risk ready-made portfolio or multi-asset fund.
You can find out more about investing in funds and the various charges in our Investing in Funds guide.
The calculations above are based on the following scenarios:
For regular investments, we assume you'll make 12 deals a year or one deal every month.
A deal is either one of buying or selling an investment. It is also called a trade.
We use the colours green, amber, and red to indicate how expensive or cheap a robo advisor is compared to the others. The cheapest robo advisors are coloured green, the more expensive ones red, and the others amber.
Keep in mind that a robo advisor showing up as green doesn't make it the best robo advisor for you as cheap doesn't always equal good. Some of the more expensive robo advisors could have a wider variety of funds or ethical investments, depending on what you are looking for.
If you are investing small amounts and choose to go with the cheapest robo advisor for that amount, note that some of the more expensive robo advisors become cheaper as your pot increases. Consider Moneybox and Santander.
Additionally, we show the costs which apply to the first year only. This is especially important because, with platforms like Santander, Wealth Horizon and Munnypot, your costs reduce after the first year when you no longer have to pay the initial advice fee.
Finally, for each provider listed on our best robo advisor comparison table above, your money is protected by the Financial Services Compensation Scheme (FSCS).
Robo advisors are technology companies that provide automated financial planning with little or no human supervision. They use their algorithms to calculate your risk level and present you with a set of ready-made investments based on your risk profile. Many established investment platforms and fintech startups offer robo-advisor services.
In the UK, robo advisors are also called do-it-for-me investment platforms.
Robo investing is automated financial planning. It is a simple way to invest in hundreds of stocks, bonds and funds directly from your smartphone without dealing with the hassle of picking individual stocks, shares or other types of investments.
A ready-made investment portfolio is a diverse mix of investments created by fund managers to help reduce the burden of choosing individual stocks and shares or funds. With one ready-made portfolio, you could have access to hundreds of investments.
Here are some of the best robo advisors in the UK:
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