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:
June 17, 2021

How does Moneyfarm work? 

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.


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


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 £1,500.

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 £1,500 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.

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


Is Moneyfarm good for beginners?

Moneyfarm is beginner-friendly. The 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's 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

Nutmeg

Nutmeg has four investment portfolios to choose from and allows you to invest in various funds based on your risk preference and values. Nutmeg’s products include Stocks and Shares ISA, Lifetime ISA, Junior ISA, and Personal Pension. Formal financial advice is also available.


See: Nutmeg Review

Also see: Nutmeg vs Moneyfarm

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.


See: Plum Review

Visit: Plum

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