Skip to content Skip to footer

Moneyfarm review – is this the best robo-advisor?

12–15 minutes to read

In this Moneyfarm review, we fill you in on one of the most mature robo-advisors on the market. Plus, you’ll learn why we think Moneyfarm has an edge over its robotic competitors by bringing that human touch.

Robo-advisors can help your investing journey by using smart technology to automatically match a portfolio to your investment goals. This sounds great, but with a vast array of robo-advisors out there, how do you know which one is best?

Who is Moneyfarm?

Moneyfarm was founded in 2012 with the aim to make personal investing simple and accessible through technology.

In 2016, Moneyfarm brought its straightforward investment strategy to clients in the UK. Since then, it has gained over £1 billion in assets under management and won a plethora of industry awards.

In essence, Moneyfarm works by automatically investing your money in a portfolio that matches your investment and financial goals.

What makes it different to most robo-advisors, is that it provides a financial recommendation.

Heads up – We aim to produce honest and accurate content, however, we are not financial advisors. If you need financial advice, Unbiased can connect you with a suitable professional for free. Some of our links may earn us a small commission to help us run the site.

Investing for Beginners

If you are new to investing then check out our free Investing for Beginners guide. It has everything you need to help you learn about getting started in investing. Crucially, we cover the steps you should do before you even start.

Investing for Beginners – How to bankroll your financial future.

Moneyfarm key details

  • Easy portfolio selection.
  • Your portfolio is actively managed.
  • Minimum £500 investment.
  • Provides regulated financial advice on the suitability of your portfolio.
  • Access to your own Investment Consultant.

What is a robo-advisor platform?

Robo-advisors are investing services that provide automated financial planning with little to no human supervision.

A typical robo-advisor will collect information about your financial situation and goals, and then use this data to automatically invest your money.

Essentially, it will automatically balance your portfolio according to your appetite for risk. So you get to focus your time on what enjoy.

Why are robo-advisors good?

Because they make potentially daunting decisions for you, they are well-suited to new investors. Essentially, you can kick back and let the robo-advisor decide on your investment strategy and portfolio allocation.

Plus, they also work well for those who are time-poor and looking to offload their investing tasks and decisions.

And then there’s the cost. Before robo-advisor platforms, investors may have chosen an Independent Financial Advisor to manage their investments. These often carry hefty ‘management’ fees and would typically be more expensive, depending on lots of personal factors.

Is Moneyfarm different?

Moneyfarm‘s smart technology helps you choose a suitable investment based on collecting some key information. The questions you’ll be asked when you sign up will determine your goals and attitude to investing. Most importantly, Moneyfarm will help you gauge your attitude to risk.

What’s unique about Moneyfarm is that the portfolio selected is a financial recommendation. Crucially, this recommendation is regulated and must comply with strict FCA guidelines. As part of the FCA compliance, you will also receive an annual review of your portfolio to ensure it is still suitable for your needs.

Further to this, you’ll get access to your own investment consultant who can help you with financial guidance. However, this is NOT financial advice.

If anything changes your profile can be adjusted online, in-app or by talking to your own dedicated investment consultant.

Most robo-advisors don’t offer this financial security blanket when selecting your portfolio.

SIGN UP - IT'S FREE!

Get your FREE financial guides, plus useful updates and exclusives to grow your personal wealth.

What accounts does Moneyfarm offer?

Moneyfarm offers the following accounts:

Most investors looking to shelter any gains will choose a Stocks and Shares ISA account. Remember, you can only contribute to one Stocks and Shares ISA per year. So, if you already have one then you’ll need to transfer your account to Moneyfarm.

You can open as many General Investment Accounts as you like. However, to keep managing your money easy in terms of tax, you may want to limit these to only a few.

Need some help? Check out our Beginners Guide to Investing – How to bankroll your financial freedom.

What investment options does Moneyfarm offer?

Moneyfarm offers seven pre-packaged portfolios that are graded on risk. Portfolio one is the lowest risk, with portfolio seven being the highest.

The portfolios Moneyfarm offers are built from a mixture of Exchange Traded Funds (ETFs). The ETFs used are listed on the stock exchange and typically track the performance of a pool of investments or an index, such as the FTSE 100.

Moneyfarm claims that everyday trading and high liquidity in most conditions means they can adjust your portfolio to react to market changes quickly.

Each portfolio is diversified, giving you exposure to a variety of assets, sectors and geographies.

While your portfolio is actively managed, your portfolio is in fact built from low-cost passive funds. Essentially, this helps keep Moneyfarm‘s overall costs and therefore fees, low.

Moneyfarm fees

1. Management fees

Moneyfarm has a tiered pricing structure. As usual, the more you invest, the lower your fees.

To work out how much you will pay, you need to account for three different fees.

First is Moneyfarm‘s Management fee. This is a tiered fee that covers the platform, management, digital investment advice and human guidance and support. The management fees are detailed below:

  • 0.75% on the first £10,000
  • 0.60% on the next £10,000 – £50,000
  • 0.50% on the next £50,000 – £100,000
  • 0.35% on anything over £100,000

2. Fund fees

Next, is the cost of holding the ETFs in your managed portfolio. These fees are called the underlying fund fee and can differ. However, Moneyfarm states on average they work out to 0.20% on average.

3. Market Spread

Finally, you will need to account for the market spread. This is the difference between what somebody would like to sell an asset for and what somebody is prepared to pay for it. This can act as a cost on your investment when you trade. The market spread cost is up to 0.09%.

Calculating your fees

Fees are calculated daily, based on the total market value of your portfolio. As the value of your portfolio goes up and down, so do the fees you pay.

If you have multiple portfolios, Moneyfarm works out your fees across your entire account rather than individual portfolios. This means you benefit from lower fees as you increase the total value of your Moneyfarm account.

Each month you’ll pay a fee based on the total daily market value for each day invested. Your fees will be illustrated in the monthly account statement you receive in the ‘Documents’ section of your account.

There is a nifty calculator on the Moneyfarm website to help you calculate your fees. Moneyfarm fee calculator.

Moneyfarm review - example fees for £10,000 portfolio

Financial Fitness Guide - get part one FREE!

Subscribe now and get your FREE part one of the Financial Fitness Programme, designed to grow your personal wealth, reduce your money worries and give you more time.

Moneyfarm fees vs Wealthify vs Nutmeg

The table below shows the fees charged on a £10,000 portfolio for three of the most popular robo-advisors.

We can see that whilst Moneyfarm‘s fees are the highest, they do drop as you invest more than £10,000. This puts the platform fee more in line with Wealthify for those with investments above £10,000.

Nutmeg, by comparison, only starts to lower its fees once your portfolio hits £100,000.

Furthermore, with Moneyfarm you also get that access to your own investment consultant, unlike the other providers.

Moneyfarm Nutmeg Wealthify
Platform fee 0.75% 0.75% 0.60%
Avg. investment cost 0.20% 0.14% 0.16%
Market spread 0.09% 0.08% 0.00%
Total 1.04% 0.97% 0.76%

For this comparison, we have used the Nutmeg Smart Alpha portfolio. This is the cheapest actively managed portfolio available from Nutmeg.

Read our full Weathify review here.

Read our full Nutmeg review here.

Moneyfarm investment performance

Moneyfarm publicises its investment performance since 2016 on the website. All but one of its portfolios have outperformed what Moneyfarm deem the ‘competitors equivalent’.

We like this transparency. And this is pretty impressive considering that Moneyfarm also offers a managed personal service unlike many of its competitors.

Interestingly and perhaps not surprisingly, the returns published show that the lower risk portfolios underperformed the higher risk ones. In fact, the highest risk portfolio has averaged an impressive 10.6% average annual return.

Remember, Moneyfarm will help you choose a suitable performance for you based on your personal circumstances.

Moneyfarm reviews

Moneyfarm review - Trustpilot

Moneyfarm has received great reviews from the independent review site Trustpilot. Its customers have awarded it 4.6 out of 5, which ranks it highly against its competition.

Moneyfarm has also received great reviews for its app both from Apple and Android users.

As you would expect, the app is clean and easy to use. You can see the performance of your investments and a clear breakdown showing how your money has been invested. However, as your funds are actively managed, you shouldn’t need to be in the app too often.

Moneyfarm Nutmeg Wealthify
Trustpilot 4.6 4.3 4.6
Apple App Store 4.7 4.8 4.5
Google Play Store 4.7 4.7 4.0

FREE Financial Independence Guide!

Subscribe now and get your FREE Financial Independence Guide. Includes everything you needed to know about building your financial freedom.

Is my money safe with Moneyfarm?

Moneyfarm is regulated by the Financial Conduct Authority (FCA). This means Moneyfarm follows a number of regulations aimed principally to protect investors and to ensure fair competition in the finance industry.

Clients’ assets are ring-fenced with a separate institution. This means that, even in the worst scenario of Moneyfarm becoming insolvent, your money and assets would still be safe.

In addition, investments held by Moneyfarm are protected by the Financial Services Compensation Scheme (FSCS). As such, you are covered for investments up to £85,000. Critically, you are NOT covered for investment losses, only if Moneyfarm runs into financial difficulties.

What we like about Moneyfarm

  • Personal touch – having someone you can speak to is great.
  • Hands-offMoneyfarm will take care of everything for you, so you can set and forget your investments.
  • No exit fees – you can try Moneyfarm out and if you don’t like it, you can leave for free (some providers charge a fee).
  • Help to choose investments – for many new investors getting started, crucial decisions can be tricky. Moneyfarm guides you through a series of questions to help you get started easily.
  • Fees – while I’m usually a stickler for fees, Moneyfarm offers personal help that can provide huge support for nervous investors. For this cost, I feel this represents good value.

What we don't like about Moneyfarm

  • Minimum investment – the £5,000 (or £1,500 and £100 per month) minimum investment may put off those new to investing. If you want to start with less, check out Wealthify which has no minimum investment. UPDATE: Moneyfarm has now dropped the minimum investment to just £500! Sign up here.

Moneyfarm vs Nutmeg vs Wealthify

There are a few main differences that may help investors choose between these very closely matched providers.

First is how much you plan to invest. Each platform has a minimum investment as you can see from the table below. Wealthify customers can open an account with just £1, whereas Nutmeg and Moneyfarm require a minimum of £500. Moneyfarm dropped the minimum investment from £5,000 to just £500 in September 2021.

Moneyfarm Nutmeg Wealthify
Minimum Investment

£500

£500

(£100 for LISA)

£1

If you are just starting out, then dropping £500 into an investment account might feel scary. If you feel this way, then Moneyfarm may not be for you. It’s best to start with smaller amounts and maybe consider trying Wealthify for the first 12 months of your investing journey.

You can read our full Wealthify Review here (plus there is a £25 bonus for opening an account).

However, if you are more experienced, then choosing between providers is going to be tough. All offer help choosing and managing a portfolio based on your personal profile and attitude to risk.

Moneyfarm can offer you a real person to speak to. For some, this is what they really need to gain confidence; a little personal assistance.

How to open a Moneyfarm account

Opening a Moneyfarm can be done in under 15 minutes.

When you sign up you’ll be asked to fill in a short questionnaire. This will determine your investor profile. From this, you will get your recommended portfolio.

When you are ready, you can add your funds to your account and get started.

Once your account is open, you will get periodic reviews of your portfolio and an annual assessment to ensure your risk profile still matches your original answers.

The rest should be easy. Simply choose how much you want to invest each month, then sit back and relax.

Open your Moneyfarm account and check out your recommended portfolio for free.

Moneyfarm review - final thoughts

Moneyfarm offers something its competitors typically charge a high premium for; a real person to speak to. Both seasoned and new investors alike can often benefit from that personal touch. It could be simple to check you are doing everything right or simply to alleviate any concerns.

Critically, Moneyfarm does not provide financial advice. This is an important distinction. If you want a financial advisor, you’ll have to look elsewhere such as Unbiased.

Like other robo-advisors, Moneyfarm gives you a hands-free investing strategy. If you have a busy life or if you have no interest in learning about investing, then a robo-advisor can help. Moneyfarm’s reviews, fees and performance make it very competitive against its competition. Personally, I feel the Investment Consultant is worth the slightly higher fee for smaller portfolios.

Of course, if you don’t like Moneyfarm or if you don’t feel you need that personal comfort blanket any longer, you can always move away for free.

Open your Moneyfarm account here.

If you want to improve your personal finances or learn more about investing, come join our Free UK Personal Finance Club over on Facebook. It’s a safe community of like-minded people all trying to improve their finances. I’d love to see you there.

Here’s to Financial Fitness

EatSleepMoney.co.uk does not offer financial advice and is intended for reference/information only. Remember, you should always carry out your own research and/or take specific professional advice before choosing any financial products or services or undertaking any business or financial venture. If you need financial advice Unbiased can connect you with a suitable professional for free. Investments may go up as well as down and you may get back less than you put in.