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.

Compare the Best Robo Advisors in the UK

Updated On: Aug 1, 2022
Robo Investing UK - Compare the Best Robo Advisors UK

Contents:

Best Robo Advisors in the UK

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.

Use the comparison tiles below to discover some of the best robo advisors in the UK.

Capital at risk. ISA rules apply. Other charges apply.


InvestEngine - Low cost; 500+ Commission-free ETFs

InvestEngine Logo
Account Type
DIY & Ready-made
ETF Cost
0.15% - 0.25%
Annual Platform Fee
0% - 0.25%
Minimum ISA Deposit
£100

InvestEngine is a UK low-cost investment platform providing a choice of managed portfolios tailored to you and commission-free DIY investing to help you build long-term wealth. Users can invest in over 500 exchange-traded funds (ETFs) from iShares, Vanguard and other leading brands. With InvestEngine, you can invest in two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can select from one of the Managed Portfolios on offer where the team of experts at InvestEngine will take care of the day-to-day investment decisions for you. These portfolios attract a platform fee of 0.25% per year. Advanced or more confident investors can choose from 500+ commission-free ETFs and build their portfolios themselves. With the DIY Portfolio, there are no platform fees. All InvestEngine portfolios are free of setup fees, dealing fees, ISA fees or withdrawal fees. InvestEngine allows you to invest via a Stocks and Shares ISA, Personal Account or Business Account.

Promo: £25 welcome bonus for new customers who invest at least £100. Terms apply.

Capital at risk.

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Moneyfarm - Mid-price range; Offers advice and ESG investments

Moneyfarm Logo
Account Type
Ready-made
Annual Fund Management Fee 0.20%
Annual Platform Fee
0.75% - 0.35%
Minimum ISA Deposit
£500

Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences. Investors can choose from seven globally diversified risk-rated portfolios, including ethical investments, if you prefer to invest in line with your values. The team at Moneyfarm actively manages your investments, but each investment portfolio is made up of exchange-traded funds (ETFs) and other passive trackers. 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 a Stocks and Shares ISA, General Investment Account, and Personal Pension.

Capital at risk.

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Chip - Low cost; Auto-investing; Ethical portfolios; Beginner-friendly

Chip Logo
Account Type
Ready-made
Annual Fund Management Fee
0.50% - 0.25%
Annual Platform Fee
0.25% + (£3/month subscription)
Minimum ISA Deposit
£1

Chip recently launched its investment product which allows users to choose from three funds, namely Cautious, Adventurous and Balanced, depending on your risk appetite. The funds are passive and are managed by BlackRock - the world’s largest investment manager. Although the funds are ‘passive’, the Index Allocation team at BlackRock still monitors the funds on a daily basis. With Chip, you can enjoy automatic investments and savings via the Round Up feature and competitive interest rates on your savings. Chip offers a Stocks and Shares ISA, General Investment Account (GIA) and Automatic Savings Account.

Capital at risk.

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Plum - Low cost; Automatic investing; Best for beginners

Plum Logo
Account Type
Ready-made
Annual Fund Management Fee
0.48%
Annual Platform Fee
£12
(first month free)
Minimum ISA Deposit
£1

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 a Stocks and Shares ISA, SIPP, and other money management tools.

Capital at risk.

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Wealthify - Mid-price range; Offers ethical themes; Beginner-friendly

Wealthify Logo
Account Type
Ready-made
Annual Fund Management Fee
0.16% - 0.70%
Annual Platform Fee
0.60%
Minimum ISA Deposit
£1

Wealthify is a UK robo advisor that allows you to choose from five investment Plans based on your attitude to risk. These investment Plans are named Cautious, Tentative, Confident, Ambitious and Adventurous and allow you to choose a risk level that best suits your needs. If you are conscious about the environment or would simply like to invest in line with your values, Wealthify’s five portfolios are also available as ethical investment plans, so you can stay true to your values while potentially growing your money. With Wealthify, the minimum investment is £1, and you can withdraw your money anytime. There is an annual platform fee of 0.60%, and fund management fees range from 0.16% to 0.70% per year, depending on your chosen investment theme. Once you complete the signup process, you can start investing with a lump sum from £1 which you can top up as frequently as you want.

Wealthify’s suite of products includes a General Investment Account, Stocks and Shares ISA, Junior ISA and SIPP in both Original and Ethical themes.

Capital at risk.

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Circa5000 - Ethical investments, Auto-investing; Beginner-friendly

Circa5000 previously Tickr Logo
Account Type
Ready-made
Annual Fund Management Fee
0.65% - 0.45%
Annual Platform Fee
0.50% + (£1/month subscription fee)
Minimum ISA Deposit
£5

Circa5000 is a UK robo advisor that gives you access to a variety of ethical investments. Their portfolios consist of ETFs of companies that intentionally generate social and environmental solutions - alongside a financial return. There are three portfolios to choose from - People, Planet and Planet & People. Each portfolio gives you the choice of three risk levels - Cautious, Adventurous and Balanced - depending on your risk preference. With Circa, you can enjoy automatic investments via the Round Up feature and access exclusive deals from many retailers, including Oddbox, Honest Mobile and Coral Eyewear. Circa5000 offers tax-free individual savings accounts (Stocks and Shares ISA & Junior ISA) and taxable general investment accounts (GIAs).

Promo: £5 welcome bonus for new customers. Terms apply.

Capital at risk.

go to site

To make sense of the charges, use our robo advisor price comparison table below.

Compare Robo Advisors and Managed Stocks and Shares ISAs

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.

If you prefer to invest in individual stocks, shares, or funds, use our dedicated investment fees comparison tool for funds or shares.


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.


     Platform      Investment
Cost
£100
per Month
£1,000
per Month
£20,000
Lump Sum
£100,000
Lump Sum
Learn More
ETFmatic 0.12 4 39 120 600 DETAILS
EQ Investors 0.25 8 80 248 1040 DETAILS
IG Smart Portfolios 0.14 4 41 128 390 DETAILS
InvestEngine 0.15 3 31 94 470 DETAILS
Moneybox 0.21 12 38 141 669 DETAILS
Moneyfarm 0.20 6 60 176 760 DETAILS
Munnypot 0.22 10 88 166 1230 DETAILS
Nutmeg 0.19 4 45 138 690 DETAILS
OpenMoney 0.14 3 32 98 490 DETAILS
Plum 0.48 14 42 107 491 DETAILS
Santander: Digital Investment Adviser 0.39 16 59 168 690 DETAILS
True Potential Investor 0.80 8 79 244 1220 DETAILS
Wealth Horizon 0.14 7 74 228 1140 DETAILS
Wealthify 0.16 5 49 152 760 DETAILS
Wealthsimple 0.20 5 45 140 700 DETAILS
Primary Data Source: The Lang Cat

Assumptions

When you invest using a robo advisor, please note that 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). 


The OCF estimates the portion of your investment's total cost that goes to the fund manager and is separate from the platform and dealing fees.


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:

  1. £100 per month regular investment,
  2. £1,000 per month regular investment,
  3. £20,000 lump sum (a year's ISA allowance), or
  4. £100,000 lump sum (if you have some ISAs from previous years and are transferring in).


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.


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).


Frequently Asked Questions


1. What is a robo advisor?

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.


Robo advisors in the UK are also called "do-it-for-me" investment platforms.

2. What is robo investing?

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. 

3. What is a ready-made portfolio?

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.

4. Which robo investor is the best in the UK?

Here are some of the best robo advisors in the UK:

  • InvestEngine - Low cost; 500+ commission-free ETFs; best for beginners
  • Wealthify - Mid-price range; offers ethical themes; beginner-friendly
  • Moneyfarm - Mid-price range; offers advice and ESG investments
  • Chip - Low cost; auto-investing; ethical portfolios; beginner-friendly
  • Plum - Low cost; automatic investing; beginner-friendly
  • Circa5000 - Ethical investments only, auto-investing; beginner-friendly

5. What are the advantages of robo-investing?

  1. Most of them are very easy to use.
  2. They let you invest directly from your smartphone.
  3. One portfolio could give you access to hundreds of investments.
  4. Some of them offer proper financial advice.

6. What are the disadvantages of robo-investing?

  1. Some robo-advisors are quite expensive, and more often than not, you could get a much cheaper deal if you went directly to the investment providers they use.
  2. You need to have a smartphone to use them.

7. Are robo advisors good for beginners?

Robo advisors automate the financial planning and stock selection process, so they are good for beginners or those who do not want to deal with the hassle of choosing individual stocks, shares, and other investments themselves.

Whether or not a robo advisor is right for you depends on your circumstances. Robo advisors have certain advantages, including being easier to use than traditional investment platforms. They are also more attractive to investors with a small amount of capital to invest, and they automate the entire financial planning process. However, robo advisors in the UK can be more expensive than traditional investment advisors, and it might be worthwhile to have a look at some traditional investment platforms before committing to a robo advisor.

9. How do I choose a robo advisor?

To choose a robo advisor, you need to consider what the robo advisor offers and how these may align with your financial goals.

Here are some things to consider:

  1. Does the robo advisor offer ethical or ESG (environmental, social and governance) investments?
  2. Is the robo advisor UK based?
  3. Does the robo advisor offer a simple beginner-friendly app?
  4. Does the robo advisor offer exchange-traded funds (ETFs)?
  5. Are the funds on offer index funds or other passive investments?
  6. Does the robo advisor offer any active funds?
  7. How diversified are the portfolios?
  8. What are the fees?
  9. Does the robo advisor offer any tax wrappers, e.g. investment ISA, lifetime ISA, junior ISA or self-invested personal pension?

Read: How to Invest in Funds and ETFs in the UK

Also Read: Investing in the UK (in your 20s and 30s)

10. What are the alternatives to a robo advisor in the UK?

The alternatives to a robo advisor in the UK are the traditional investment platforms and online trading platforms.

11. Are robo advisors worth it in the UK?

Robo advisors are probably worth it if you have a small amount of money to invest, desire a simple app-based interface and do not want to select stocks or build your portfolio yourself.

12. Are robo advisors safe?

All robo advisors listed on Koody are regulated by the Financial Conduct Authority (FCA). This means that they have to regularly report their activities to the financial regulator, and they can be penalised for making mistakes. Additionally, all deposits in a regulated UK robo advisor are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000 per person. Note that the FSCS does not cover losses arising from the performance of any of your investments.

13. What is the difference between a robo-advisor and a normal investment platform?

A robo advisor is a technology company that provides automated financial planning with little or no human supervision. Robo advisors use their algorithms to calculate your risk level and present you with a set of ready-made investments based on your risk profile. In contrast, traditional investment platforms offer a variety of investments, including stocks, bonds, ETFs, commodities, investment trusts, CFDs, and more, and give you the opportunity to select investments of your choice and build your portfolio yourself. Today, however, many established investment platforms offer services similar to robo investing. These services are called managed investments or ready-made portfolios.

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Credits

  1. The Lang Cat
  2. Gov.uk

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