Moneyfarm Review

Moneyfarm Review

Moneyfarm allows you to invest in a range of funds via a Stocks and Shares ISA, General Investment Account, or Private Pension. It also offers personalised digital investment advice.

Visit Moneyfarm
Double-chevron pointing right
Updated On:
September 2, 2021

Is Moneyfarm any good?

Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences. It has seven risk-rated portfolios that are recommended to you based on your online investor profile.


To get started, you’ll be asked to complete a short survey so that Moneyfarm can better understand how you approach finance before matching you to your investment portfolio.


With Moneyfarm, you can invest in a Stocks & Shares ISA, Private Pension or General Investment Account. Once you’ve funded your account, Moneyfarm’s team of investment experts will manage your portfolio for you.


Click here to learn more about Moneyfarm.


How does Moneyfarm work? 

When you invest, please keep in mind that your capital is at risk.


With Moneyfarm, you can invest as follows:


Moneyfarm Stocks and Shares ISA

  • Moneyfarm’s Stocks and Shares ISA offers a fully managed, easy and tax-efficient way to grow your money for the future, with a current maximum investment of £20,000 per tax year. 
  • Moneyfarm will manage your Stocks & Shares ISA for you through a globally diversified portfolio that best suits your needs. Their expert team will work to monitor, adjust and rebalance your ISA to make sure that you’re getting the best returns.
  • Transferring an ISA to Moneyfarm is free and handled by the Moneyfarm team. 
  • Please note that Moneyfarm has a minimum investment amount of £500.

Click here to learn more about Moneyfarm’s Stocks and Shares ISA.


Moneyfarm Private Pension (SIPP)

  • Moneyfarm’s SIPP offers a globally diversified, tax-efficient private pension targeted to your retirement goals.
  • You’ll usually receive a 25% boost to your pension in the form of tax relief without the need to claim from HMRC. For higher or additional rate taxpayers, up to 45% can be claimed back through your annual tax return.
  • Moneyfarm offers free pension drawdown from the age of 55, where you can withdraw up to 25% of your pension as a tax-free lump sum or in installments.
  • You can also pass on funds from your pension to your beneficiaries, free from inheritance tax.

Click here to learn more about Moneyfarm’s SIPP.


Moneyfarm General Investment Account (GIA)

  • Moneyfarm’s General Investment Account allows you to make unlimited contributions, so you can invest beyond your ISA allowance. Funds can be invested and withdrawn at any time with no additional fees.
  • With a Moneyfarm GIA, you can open multiple portfolios with different risk levels to match each of your goals.
  • Moneyfarm will provide active, hands-on management of your GIA by building, and rebalancing your portfolio(s) for you.

Click here to learn more about Moneyfarm’s GIA.


Other Tools and Features

Actively Managed Portfolios 

Moneyfarm’s actively managed portfolio’s work to deliver long term growth for each investor by building, managing and rebalancing your portfolio(s) on your behalf. 


Once Moneyfarm determines your knowledge, experience, risk appetite and objectives, you’ll be matched to one of seven ready-to-go portfolios that best suit your goals and investment style. Your portfolio will be made up of high-quality Exchange-traded Funds (ETFs) handpicked from around the world. 


Moneyfarm recently introduced the Environmental, Social and Governance (ESG) investment style to its portfolios. Click here to learn more.


Investment Advice

Moneyfarm offers free access to their investment consultants who provide guidance to help you feel more confident about your investment decisions. You’ll also receive digital investment advice to keep you on track and make sure your portfolio is suited to you, even if your circumstances change. 


Moneyfarm provides expert opinions on your existing investments, taking into account performance, cost and quality, as well as retirement planning and your drawdown options.

How do I invest with Moneyfarm?

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.

What are Moneyfarm’s fees?

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:

  • 0.75% on investments between £0 to £10,000
  • 0.6% on any investments from £10,001 to £50,000
  • 0.5% on any investments from £50,001 to £100,000
  • 0.35% on any investments over £100,000 +

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.


Is Moneyfarm good for beginners?

Moneyfarm is beginner-friendly. Its service 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 information and monitor your investment performance.


Is Moneyfarm a passive investment?

No. Although Moneyfarm uses exchange-traded funds (ETFs) and other passive trackers, the investment portfolios are actively managed by the team at Moneyfarm.


Is Moneyfarm 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.


Is my money safe with Moneyfarm?

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.


Is Moneyfarm regulated by the FCA?

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


Does Moneyfarm have a referral scheme?

No.


How do I open an account with Moneyfarm?

Visit Moneyfarm’s website here.


Reviews

Leave a review for Moneyfarm! When you write a review, we use the data to tell you and many others about the best financial products.

Alternatives to Moneyfarm

InvestEngine

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

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


Visit: Plum

See: Plum Review

Koody Man with Laptop

Subscribe to The Plug

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.

Thank you! Your submission has been received!
Error: This email cannot be added because it may already be on our list. Please enter a different email address.

Read The Plug