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Please note: As with all investments, your capital is at risk.
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Moneyfarm, established in 2011, is a robo advisor that provides you with a personalised investment plan based on your risk preferences and goals.
With Moneyfarm, you can invest in one of seven risk-rated portfolios recommended to you based on the result of an online assessment. Each portfolio comprises a mix of cost-efficient exchange-traded funds (ETFs).
To get started, you’ll be asked to complete a short survey so that Moneyfarm can better understand how you approach your finances before matching you to your investment portfolio.
With Moneyfarm, you can invest in a stocks and shares ISA, general investment account, private pension and junior ISA. Once you’ve funded your account, Moneyfarm’s team of investment experts will manage your portfolio for you. You will also have access to personalised financial advice.
Click here to learn more about Moneyfarm.
Here are the pros and cons of using Moneyfarm in the UK:
Moneyfarm is one of the best robo advisors in the UK at the moment because of its wide range of accounts, easy-to-use mobile app and web platform and socially responsible portfolios.
Moneyfarm is also rated Excellent on Trustpilot with 4.5 stars out of 5 from 748 reviews (at the time of writing).
With Moneyfarm, you can invest via a stocks and shares ISA, general investment account, self-invested personal pension (SIPP) and junior ISA. You can also take advantage of some specialist features such as socially responsible portfolios and investment advice.
Here is a detailed breakdown of how Moneyfarm works:
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 invest with Moneyfarm, you need to sign up through the Moneyfarm app, which allows you to invest via a stocks and shares ISA, general investment account, private pension and junior ISA. You will also benefit from free, 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 investment product. Portfolios on the lower end of the scale mainly comprise lower-risk fixed-income investments, including government, corporate and emerging market bonds, whereas portfolios on the higher end mainly comprise stocks and shares.
For example, Portfolio 1 comprises 53% cash and short-term government bonds, while Portfolio 7 consists of 70% developed markets equities.
You will need a minimum of £500 to begin investing with Moneyfarm.
Yes, Moneyfarm is good for beginners. Moneyfarm is 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 and monitor your investment performance.
No, Moneyfarm’s portfolios are not passive investments. Although Moneyfarm uses some passive index funds and exchange-traded funds (ETFs) to build their portfolios, the final investment portfolio you purchase is actively managed by the team at Moneyfarm.
No, Moneyfarm is not expensive. 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.
Yes, Moneyfarm is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at its regulatory permissions on the FCA Register.
Yes, Moneyfarm is safe. 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 up to £85,000 if Moneyfarm goes bust. Keep in mind that the FSCS does not cover losses arising from the performance of any of your investments.
To open an account with Moneyfarm, click here.
Alternatives to Moneyfarm in the UK include InvestEngine and Plum.
InvestEngine is a UK 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 ETFs through a Stocks and Shares ISA, Personal Account or Business Account.
Visit: InvestEngine
See: InvestEngine Review
Plum has various funds to choose from based on your risk preference and values. The Plum app calculates how much you can afford to set aside and automatically invests that amount for you. Plum offers a Stocks and Shares ISA, SIPP, and other money management tools.
Visit: Plum
See: Plum Review
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