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InvestEngine Review

Updated On:
June 7, 2022
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InvestEngine Review - Is it any Good?

Please note: As with all investments, your capital is at risk.

Contents:

1. What Is InvestEngine?

InvestEngine is a low-cost investment platform providing a choice of managed portfolios and commission-free DIY ETFs to help you build long-term wealth.

You can invest in over 500 exchange-traded funds (ETFs) from iShares, Vanguard and other leading brands.

Here’s a video explaining how to invest in ETFs with InvestEngine.


InvestEngine stands out amongst its competitors as one of the cheapest investment platforms in the UK because it charges no platform or management fees on its DIY Portfolio and just 0.25% a year for the Managed Portfolio.

To see how InvestEngine’s fees stack up against other investment platforms and robo advisors, click here to access our investment platform comparison tool and here to access our robo advisor comparison tool.

With InvestEngine, you can invest through a Stocks and Shares ISA, Personal Account or Business Account.

2. How Does InvestEngine Work?

With InvestEngine, you can invest in one of 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, where the investment team 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.


Choose an investment service with InvestEngine

Here’s a detailed breakdown of how the two portfolios work:

DIY Portfolios

  1. With InvestEngine’s DIY portfolio, you’re in control of choosing your investments and fine-tuning your investment strategy.
  2. You can choose from a range of over 500 ETFs, refine your allocations and invest commission-free.
  3. InvestEngine allows you to personalise your investment strategy by setting the target weights for each ETF in your portfolio. You can also set new weights as your investment strategy and market view change.
  4. InvestEngine’s automation tool saves you the hassle of rebalancing and topping up your portfolio by automatically calculating and conducting trades on your behalf, based on your target weights.
  5. The InvestEngine DIY portfolio is particularly appealing to both experienced and beginner investors due to the absence of dealing fees, account fees or set up fees. This makes it a cheaper alternative to other UK-based investment platforms and a good option for those just starting out in their investing journeys.


Managed Portfolios

  1. InvestEngine’s Managed Portfolios are globally diversified investment portfolios that seek to maximise returns based on your risk preferences. To get started, you’ll be asked to complete a short questionnaire specifying your investment goals, how much you’re looking to invest, and the amount of risk you’re comfortable with. InvestEngine will then suggest the right portfolio for you based on your preferred level of risk.
  2. You can choose from either a Growth Portfolio that aims to help reinvest your dividends or an Income Portfolio that seeks to provide a regular income depending on the dividends received from the ETFs in those portfolios.
  3. Visit InvestEngine to learn more.

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

3. How Do I Invest With InvestEngine?

With InvestEngine, you can invest through a Stocks and Shares ISA, Personal Account or Business Account. 

Select an account with InvestEngine


You’ll have the option to invest using a DIY Portfolio, Managed Income Portfolio, or Managed Growth Portfolio. InvestEngine will ask you questions as part of the sign-up process to gauge your investment goals and risk preferences and will then match one of these portfolios to you.


Select an investment portfolio with InvestEngine


Once you have funded your account, you can choose from over 500 ETFs. Please note that InvestEngine has a minimum investment amount of £100.

Choose ETFs with InvestEngine

Visit InvestEngine to learn more.

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


4. What Are InvestEngine’s Key Features?

The following are InvestEngine’s key features:

  1. ISA and General Investment Account: InvestEngine users can open a Stocks and Shares ISA (tax-free) and General Investment Account. At present, InvestEngine has no pension option available.
  2. Business Account: Business owners can open an InvestEngine Business Account to get the most out of cash held within their companies.
  3. Free DIY Investing: InvestEngine’s DIY Portfolio doesn’t attract any dealing fees, account fees or set up fees, whilst its managed portfolio attracts a platform fee of just 0.25%.
  4. Managed Growth and Income Portfolios: InvestEngine offers 10 Growth Portfolios and 3 Income Portfolios. If you select an Income Portfolio option, you’ll be paid income directly into your bank account at no extra cost. If you choose a Growth Portfolio, income from your investments will be automatically reinvested into your portfolio.
  5. Over 500 ETFs: You can choose from over 500 ETFs, including exchange-traded commodities (ETCs) that cover a wide variety of stock markets. InvestEngine ETFs also include ESG (Environmental, Social and Governance) and thematic ETFs.
  6. Mobile App: You can access the InvestEngine platform via its mobile app. Click here to download it.
  7. InvestEngine's Minimum Investment Amount: £100

5. What Are InvestEngine’s Fees?

It’s completely free to download the InvestEngine app. There are no setup fees, dealing fees, ISA fees or withdrawal fees, but do keep in mind that InvestEngine requires a minimum investment amount of £100 to get started.

Here is a breakdown of InvestEngine’s fees:

  1. ‍InvestEngine DIY Portfolio Fee: Free
  2. InvestEngine Managed Portfolio (Platform Fee): 0.25% per year
  3. ‍InvestEngine ETF Charge (Fund Management Fee): 0.25% per year (for income portfolios) and 0.15% per year (for growth portfolios)
  4. InvestEngine ‍‍Market Spread: 0.07% per year (for both income and growth portfolios)


6. How Does InvestEngine Make Money?

InvestEngine makes money through the 0.25% per annum fee charged on its Managed Portfolios. It also makes money from the market spread that comes about when you trade ETFs. There are no dealing fees or platform fees on DIY portfolios, which firmly places InvestEngine's DIY service amongst the cheapest investment platforms in the UK.

7. Is InvestEngine Good for Beginners?

Yes, InvestEngine is good for beginners. If you are a new investor and want a simple, hands-off approach to investing, an InvestEngine Managed Portfolio builds and manages a portfolio on your behalf: selecting the ETFs, position sizing and allocation for you. InvestEngine’s DIY Portfolios also encourage investors to take a considered, diversified, and long-term approach to investing, which should suit beginners. 

InvestEngine’s affordable fees also make it a great option for beginners. DIY portfolios are free to use, and from just £100, you can open up an account and begin investing in your preferred style. You can also top up your account with small one-off amounts, with the minimum using instant bank transfer at just £1. 

Offering both DIY investing and robo-advice services with low fees, InvestEngine is one of the cheapest robo advisors in the UK and one of the best investment platforms for beginners.

To get started, download the InvestEngine app. The app is available on both iOS and Android. You can also invest via the web portal if you are more comfortable monitoring your investments on a bigger screen.

8. Is InvestEngine a Passive Investment?

Yes, InvestEngine’s Managed Portfolios are passive investments. However, some of the DIY ETFs are not.


9. Is InvestEngine Expensive?

No, InvestEngine is not expensive. InvestEngine actually falls into the low-price-range category and is considered one of the cheapest investment platforms in the UK.

With InvestEngine’s Managed Portfolio service, there is a management fee of just 0.25% per year. You also pay an ETF charge of between 0.15% and 0.25% per year. 

If you go for the commission-free DIY Portfolio service, you won’t be charged any platform or dealing fees, which makes InvestEngine stand out as a cheaper option against other UK competitors.


Use our Robo Advisor and Investment Platform comparison tool to understand how InvestEngine compares to other platforms in the UK.

10. Is InvestEngine Safe?

Yes, InvestEngine is safe. InvestEngine is as safe as any other regulated investment platform in the UK. InvestEngine is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at its regulatory permissions on the FCA Register.

Additionally, when you invest with InvestEngine, your money is protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000. This means you might be able to get your money back if InvestEngine were to go bust. Please keep in mind that the FSCS does not cover losses arising from the performance of any of your investments.

11. Is InvestEngine Regulated by the FCA?

Yes, InvestEngine is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at its regulatory permissions on the FCA Register.

12. Does InvestEngine Have a Referral Scheme?

Yes, InvestEngine has a referral scheme. InvestEngine will provide a referral reward of £25 for you and your referee if you’ve already invested £100 of your own money in an InvestEngine portfolio. Visit InvestEngine to learn more. Terms and conditions apply.

13. Does InvestEngine Have a Welcome Bonus?

Yes, InvestEngine has a welcome bonus. InvestEngine offers a £25 welcome bonus to new customers who invest at least £100. Terms apply.

14. How Do I Open an Account With InvestEngine?

To open an account with InvestEngine, visit its website.

15. Alternatives to InvestEngine

Alternatives to InvestEngine in the UK include Interactive Investor, Freetrade and Moneyfarm.

Interactive Investor

Interactive Investor has over 40,000 investments to choose from, including UK and overseas shares, funds, investment trusts, and ETFs. You get a free trade every month, which you can use to buy or sell any investment. Interactive Investor’s services include a Trading Account, Stocks and Shares ISA and SIPP.

‍Visit: Interactive Investor

See: Interactive Investor Review

Moneyfarm

Moneyfarm offers seven risk-rated investment portfolios. You also benefit from free and personalised digital investment advice from Moneyfarm’s investment consultants. Moneyfarm offers a Stocks and Shares ISA, General Investment Account, and Personal Pension.

Visit: Moneyfarm

See: Moneyfarm Review


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