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Updated On: Feb 7, 2024
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Contents:
Best Robo Advisors in the UK
We’ve compiled a list of the best robo advisors in the UK. Robo advisors are technology companies that provide automated financial planning with little or no human supervision. Their products include ready-made investments, managed portfolios, financial advice, and micro-investing services.
Robo advisors are excellent for beginner investors or those who want to avoid the hassle of choosing individual stocks, bonds, ETFs, and other assets and would rather outsource this task to money managers and financial experts.
Robo advisors are not actual robots but investment apps, platforms, websites, brokerages, and fund supermarkets that set out to create an easy way for everyday investors to access the financial markets.
Please remember that when you invest, your capital is at risk. ISA, pension, and tax rules also apply. The robo advisors listed below are authorised and regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA).
Here are the best robo advisors in the UK:
Plum - Good for micro-investing (round-ups and spare change)
Account Type
DIY
Annual Fund Management Fee
0.39%
Annual Platform Fee
£36 - £120
(£2.99 - £9.99/month)
Minimum Deposit
£1
Plum is a UK money management and investment app that helps you manage your money and build an investment portfolio. With Plum, you can invest in up to 21 funds and over 3,000 UK and overseas stocks. Plum also offers ethical or ESG investment options for those who want to invest in line with their values.
The Plum app empowers you to invest your spare change by rounding up your card transactions to the nearest pound and investing the difference on your behalf. For example, if you spend £1.20 on a snack, Plum will invest 80p for you. The app also calculates how much you can afford to set aside and invests it automatically once a week.
You can start investing with Plum with as little as £1. Plum charges a monthly subscription fee ranging from £2.99 to £9.99 per month; you get the first month free. Stock trading on Plum is commission-free (other charges may apply). FX rates also apply to US stocks at the spot rate + 0.45%. The average annual fund management fee across all funds offered is 0.39%. Plum’s suite of products includes a Stocks and Shares ISA, General Investment Account and Personal Pension. The Plum Stocks and Shares ISA is not flexible.
Capital at risk.
go to site
Moneybox - Good for automatic spare-change investing
Account Type
DIY & Ready-made
Annual Fund Management Fee
0.12% - 0.61%
Annual Platform Fee
0.45%
(+ £1/month subscription fee
(first three months free))
Minimum Deposit
£1
Moneybox is a UK investment app that allows you to invest in a range of tracker funds, exchange-traded funds (ETFs), exchange-traded commodities (ETCs) and US stocks. Moneybox offers two forms of investing depending on your investing savviness, investing strategy and attitude to risk. Beginner investors or those who prefer a ready-made portfolio can choose from the three ready-made portfolios on offer - Cautious (lower risk), Balanced (medium risk) and Adventurous (higher risk). Advanced or more confident investors can pick from the range of tracker funds, ETFs, ETCs and US stocks available and build their portfolios themselves.
The Moneybox app also empowers you to invest your spare change by rounding up your card transactions to the nearest pound and investing the difference on your behalf. For example, if you spend £2.30 on a snack, Moneybox will invest 70p for you. You can also instruct the app to make weekly or one-off deposits into your investment portfolio as it rounds up your spare change.
You can start investing with Moneybox with as little as £1. Moneybox offers commission-free trading on US stocks. However, fund management fees apply to other types of investments, ranging from 0.12% to 0.61% per annum. A currency conversion fee of 0.45% also applies to US stocks. Moneybox’s suite of products includes a Stocks and Shares ISA, Lifetime ISA, Junior ISA, Personal Pension, and General Investment Account.
Capital at risk.
go to site
InvestEngine - Good for long-term passive ETF investing
Account Type
DIY& Ready-made
Annual Fund Management Fee
0.23%
Annual Platform Fee
0% - 0.25%
Minimum Deposit
£100
InvestEngine is a low-cost ETF investment platform that provides a choice of managed portfolios tailored to you and commission-free DIY investing to help you build long-term wealth. Users can invest in over 500 exchange-traded funds (ETFs) from leading global asset managers.
With InvestEngine, you can invest in two ways depending on your tolerance for risk and savviness as an investor: beginner investors or those who prefer a ready-made investment portfolio can select from one of the Managed Portfolios on offer, where the team of experts at InvestEngine will take care of the day-to-day investment decisions for you. These portfolios are a selection of ETFs based on your preferences and risk tolerance. Once you’ve selected one, you do not have to do anything else besides monitor the performance of your investments. Advanced or more confident investors can choose from 500+ commission-free ETFs and build their portfolios themselves. InvestEngine also offers fractional investing, which allows you to buy bits and pieces of an ETF with as little as £1. This enhances your ability to build a diversified portfolio even if you have a small amount of money to invest. With the DIY Portfolio, there are no platform fees. All InvestEngine portfolios are free of setup fees, dealing fees, ISA fees or withdrawal fees.
InvestEngine stands out amongst its competitors as one of the cheapest investment apps in the UK because it charges no platform or management fees on its DIY Portfolio and just 0.25% a year on its Managed Portfolio. You can also start investing with as little as £100. InvestEngine’s suite of products includes a Stocks and Shares ISA, Personal Account and Business Account.
Capital at risk.
go to site
Moneyfarm - Good for beginners who need lots of support and advice
Account Type
Ready-made
Annual Fund Management Fee
0.20%
Annual Platform Fee
0.75% - 0.35%
Minimum Deposit
£500
Moneyfarm is a UK 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) and other passive index trackers. Moneyfarm also offers ethical or ESG investment options for those who want to invest in line with their values.
Moneyfarm’s customers benefit from free and personalised digital financial advice from Moneyfarm’s investment consultants, and you can chat, phone, email, or meet your consultant in person. To get started, you will 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 and consultant.
You can start investing with Moneyfarm with as little as £500. Moneyfarm charges an annual management fee depending on how you choose to invest, ranging from 0.75% to 0.35% on the total value of your portfolio. An annual fund management fee of 0.20% (average) also applies to all portfolios. This is built into the cost of the ETF or tracker fund on any given day, so you will not see fund charges being deducted from your portfolio directly. Moneyfarm’s suite of products includes a Stocks and Shares ISA, Junior ISA, General Investment Account, and Personal Pension.
Capital at risk.
go to site
Wealthify - Good for ethical and sustainable investing
Account Type
Ready-made
Annual Fund Management Fee
0.16% - 0.70%
Annual Platform Fee
0.60%
Minimum Deposit
£1
Wealthify is a UK robo advisor that allows you to choose from five investment plans based on your attitude to risk. These investment plans are named Cautious, Tentative, Confident, Ambitious and Adventurous and allow you to choose a risk level that best suits your needs. If you are conscious about the environment or would simply like to invest in line with your values, Wealthify’s five portfolios are also available as ethical investment plans, so you can stay true to your values while potentially growing your money.
With Wealthify, the minimum investment is £1, and you can withdraw your money anytime. There is an annual platform fee of 0.60%, and fund management fees range from 0.16% to 0.70% per year, depending on your chosen investment theme. Once you complete the signup process, you can start investing with a lump sum of £1, which you can top up as frequently as you want.
Wealthify’s suite of products includes a General Investment Account, Stocks and Shares ISA, Junior ISA and SIPP in both Original and Ethical themes.
Capital at risk.
go to site
&me - Good for affordable passive ready-made portfolios
Account Type
Ready-made
Annual Fund Management Fee
0.19% - 0.42%
Annual Platform Fee
0.75% - 0.35%
Minimum Deposit
£500
&me is a UK investment app created by popular wealth management firm, M&G Wealth. With &me, you can invest in two kinds of ready-made portfolios based on your attitude to risk and personal values. They are Classic and Targeted Portfolios.
The Classic Portfolios are a low-cost passive way to invest, comprising equities, bonds and cash across different regions such as the US and the UK. The Targeted Portfolios are priced slightly higher and invest in a blend of active and passive funds. These Targeted Portfolios are Environmental, Social and Governance (ESG)-compliant and are designed for people who want to know their investments are creating a positive impact on society and the planet while also working to generate competitive returns. Investment experts from M&G Wealth decide which investments to use in both portfolios and how much to invest in each asset class on your behalf based on a range of factors, including the potential to generate long-term returns for investors. &me will also provide you with an investment consultant to help answer your questions and help you feel more confident when investing.
You can start investing with &me with as little as £500. &me charges an annual management fee ranging from 0.75% to 0.35%, depending on the total value of your portfolio. An average annual fund management fee of 0.19% and 0.42% apply to the Classic and Targeted Portfolios, respectively. Other fees apply. &me’s suite of products includes a Stocks and Shares ISA, Junior ISA, Personal Pension, and General Investment Account. Promo:
Capital at risk.
go to site
To make sense of the above charges, use our robo advisor price comparison table below.
Compare Robo Advisors and Managed Stocks and Shares ISAs
The table below compares the annual charges of the best robo advisors for Stocks and Shares ISAs in the UK. Our goal is to help you visualise your investment fees before committing to a robo advisor.
Robo advisors are best for individuals or households who would rather not spend valuable time researching the stock markets or picking individual stocks and other investments. When you choose to invest via a robo advisor, you essentially outsource the task of picking investments and building a portfolio to professional money managers or automated money management systems.
The first column in the table below shows the robo advisor being compared. The second shows the investment cost (fund management cost + transaction fees). The third through the sixth columns show the total cost of your investment, including platform fees, dealing fees, ongoing charges figure (OCF), and transaction costs (where we could find them). The seventh column includes a button which provides a breakdown of the fees each robo advisor charges.
While the comparison tiles above show the offerings of our best selection of UK robo advisors, we have gone a step further with the table below to include a few large investment platforms that also offer a managed investing service. Managed investments or ready-made portfolios are pretty much the same as robo-investing services. The main difference is that robo advisors tend to be mobile app-only services provided by new financial technology (or “fintech”) companies. In contrast, managed portfolios are usually offered as a sub-product category by the more established investment platforms.
If you would rather invest directly in individual stocks, bonds, funds, ETFs, commodities or other assets, you might get more value from using our dedicated investment fees comparison tool forfundsandshares.
To make the best use of the table below, click on the column headers to sort from the most expensive to the cheapest robo advisor in the UKand vice versa.
To make the best use of the table below, click on the column headers to sort from the most expensive to the cheapest robo advisor in the UK and vice versa.
For example, if you want to see the cheapest robo advisor for regular investments of £100 per month, click once on the “£100 per Month” header. To see the most expensive robo advisor for a lump sum investment of £20k, click twice on the “£20,000 Lump Sum” header.
Continue this exercise on all the headers until you find what you are looking for. Then scroll down to read our assumptions and to learn more about robo advisors.
Capital at risk. ISA rules apply. Other charges apply.
Assumptions
When you invest via a robo advisor, please note that the fund manager will add on various charges within the fund. A good representation of those charges is the average investment cost or ongoing charges figure (OCF).
The OCF estimates the portion of your investment’s total cost that goes to the fund manager and is separate from the platform and dealing fees.
The examples in the price comparison table above should give you an idea of the total cost of your investment, including platform fees, dealing fees, OCF, and transaction costs (where we could find them).
In each case, we’ve used a mid-risk ready-made portfolio or multi-asset fund.
You can find out more about investing in funds and the associated charges in ourInvesting in Fundsguide.
The calculations above are based on the following scenarios:
- £100 per month regular investment,
- £1,000 per month regular investment,
- £20,000 lump sum (a year’s ISA allowance), or
- £100,000 lump sum (if you have some ISAs from previous years and are transferring in).
For regular investments, we assume you will make 12 deals a year or one deal every month.
A deal is either one of buying or selling an investment. It is also called a trade.
We use the colours green, amber, and red to indicate how expensive or cheap a robo advisor is compared to the others. The cheapest robo advisors are coloured green, the more expensive red, and the others amber.
Keep in mind that a robo advisor showing up as green does not make it the best robo advisor for you, as cheap does not always equal good. Some of the more expensive robo advisors could have a wider variety of funds or ethical investments, depending on what you are looking for.
If you are investing small amounts and choose to go with the cheapest robo advisor for that amount, note that some of the more expensive robo advisors become cheaper as your pot increases.
Additionally, we show the costs which apply to the first year only. This is especially important because, with platforms like Santander, your costs reduce after the first year when you no longer have to pay the initial advice fee.
Finally, for each provider listed in our best robo advisor comparison table above, your money is protected by the Financial Services Compensation Scheme (FSCS).
What Is a Robo Advisor?
A robo advisor is a technology company that provides automated financial planning with little or no human supervision. Robo advisors use their algorithms to estimate your risk level and present you with a set of ready-made investments based on your risk profile.
Robo advisors are excellent for beginner investors or those who want to avoid the hassle of choosing individual stocks, bonds, ETFs, and other assets and would rather outsource this task to money managers and financial experts.
Robo advisors are not actual robots but investment apps, platforms, and fund supermarkets that set out to create an easy way for everyday investors to access the financial markets. Robo advisors in the UK are also called “do-it-for-me” investment platforms.
What is a ready-made investment?
A ready-made investment portfolio is a diverse mix of investments created by fund managers to help reduce the burden everyday investors face when choosing individual stocks, funds and other investments to build a diversified portfolio. With one ready-made portfolio, investors can access hundreds of assets such as stocks, bonds, ETFs, commodities and property.
What Is Robo-Investing?
Robo-investing, a rapidly evolving trend in the UK, is an innovative approach to financial planning that employs advanced algorithms and technology to automate the investment process. It is a simple way to invest in hundreds of stocks, bonds, funds, and other assets directly from your smartphone without the hassle of picking them individually.
Robo-investing platforms use sophisticated mathematical models to create and manage diversified portfolios tailored to an individual’s financial goals, risk tolerance, and investment horizon. The primary objective of robo-investing is to provide an accessible, cost-effective, and user-friendly platform for individuals to build their wealth over time.
In the UK, robo-investing has gained significant traction due to its numerous advantages. As an alternative to traditional financial advisers, robo-investing platforms offer lower fees, simplified investment options, and a more streamlined investment management process.
The robo-investing UK market has seen continuous growth, with a variety of platforms catering to the needs of different investors.
Platforms like Moneybox and Wealthify offer a range of investment portfolios tailored to various risk profiles, including socially responsible investing options. Both platforms are known for their user-friendly interfaces and low management fees, making them popular choices for beginners, first-time investors, and experienced traders alike.
Additionally, Moneybox and Wealthify both allow users to start investing with as little as £1, making them accessible options for those looking to venture into the world of investing. Moneybox also has a unique round-up feature that enables users to automatically invest their spare change from everyday purchases, further enhancing its appeal as an engaging investment platform.
Certain robo-investing platforms in the UK, such as Moneyfarm and , provide personalised, goal-based investment portfolios to help clients achieve their financial objectives. By using a combination of technology and expert insights, these platforms construct portfolios consisting of low-cost exchange-traded funds (ETFs) to minimise fees and maximise returns.
Some robo-investing platforms, like InvestEngine, have a particular focus on providing cost-effective investment solutions. InvestEngine offers customisable portfolios consisting of low-cost ETFs to help investors achieve their financial goals while keeping fees to a minimum. Additionally, they offer a range of risk levels to cater to different investor preferences, making it a flexible option for those looking to optimise returns and manage potential losses.
As a whole, robo-investing in the UK is a cutting-edge and efficient approach to financial planning, offering investors a straightforward way to diversify their assets and grow their wealth. With various investment options, low fees, and user-friendly experiences, these platforms make it easier than ever for individuals to invest in stocks, bonds, funds, and other assets without the need for extensive financial knowledge or the assistance of a traditional financial adviser.
Frequently Asked Questions
- Which robo investor is the best in the UK?
- What are the advantages of robo-investing?
- What are the disadvantages of robo-investing?
- Are robo advisors good for beginners?
- Is a robo advisor right for me?
- How do I choose a robo advisor?
- What are the alternatives to a robo advisor in the UK?
- Are robo advisors worth it in the UK?
- Are robo advisors safe?
- What is the difference between a robo advisor and a normal investment platform?
1. Which robo investor is the best in the UK?
Here are the best robo investors in the UK:
- Plum - Good for micro-investing (round-ups and spare change)
- Moneybox - Good for automatic spare-change investing
- InvestEngine - Good for long-term passive ETF investing
- Moneyfarm - Good for beginners who need lots of support and advice
- Wealthify - Good for ethical and sustainable investing
- - Good for affordable passive ready-made portfolios
2. What are the advantages of robo-investing?
Here are some advantages of robo-investing:
- Robo advisors let you invest directly from your smartphone.
- Robo advisors are typically mobile app-based, so they are easy to use.
- You may only have to invest in one portfolio, which could give you access to hundreds of investments.
- Some robo advisors offer proper financial advice.
- Robo advisors can be a cost-effective investing strategy if you only invest in a few ready-made portfolios compared to investing in multiple shares, ETFs or bonds.
3. What are the disadvantages of robo-investing?
Here are some disadvantages of robo-investing:
- Since robo advisors sell investment products created by large fund managers, they can be slightly more expensive than these fund managers. Several years ago, it was difficult to access the services of these large fund managers, but today, most of them are online, and you can buy investments directly on their website or phone them to place an order.
- You need a smartphone to use a robo advisor.
- Most robo advisors offer a very limited range of funds or portfolios.
- You have very little say in exactly what companies you invest in and very little ability to tweak your portfolio in turbulent times.
- Most robo advisors are new companies with a very short trading history and track record.
4. Are robo advisors good for beginners?
Robo advisors are excellent for beginners and inexperienced investors because they automate the financial planning and stock selection process, thereby reducing the hassle of picking stocks, researching companies or timing the markets. Robo advisors are also great for those who simply do not want to pick individual stocks, bonds, ETFs, and other investments.
5. Is a robo advisor right for me?
Whether or not a robo advisor is right for you depends on your circ*mstances. Robo advisors have certain advantages, including being easier to use than traditional investment platforms. They are also more attractive to investors with a small amount of money to invest, and they automate the entire financial planning process.
However, robo advisors in the UK can be more expensive than traditional investment advisors, and it might be worthwhile to have a look at some traditional investment platforms before committing to a robo advisor.
6. How do I choose a robo advisor?
To choose a robo advisor, you need to consider what the robo advisor offers and how these may align with your financial goals.
Here are some things to consider when choosing a robo advisor:
- Does the robo advisor offer ethical or ESG (environmental, social and governance) investments?
- Is the robo advisor based in the UK?
- Is the robo advisor registered with the FCA?
- Does the robo advisor offer a simple beginner-friendly app?
- Are the funds available index funds or other passive investments?
- Does the robo advisor offer exchange-traded funds (ETFs)?
- Does the robo advisor offer any active funds?
- How diversified are the portfolios?
- What are the fees?
- Does the robo advisor offer any tax wrappers, e.g. Stocks and Shares ISA, Lifetime ISA, Junior ISA or Self-Invested Personal Pension (SIPP)?
7. What are the alternatives to a robo advisor in the UK?
The alternatives to robo advisors in the UKare traditional investment platforms.
8. Are robo advisors worth it in the UK?
Robo advisors are probably worth it if you have a small amount of money to invest, desire a simple app-based interface and want to avoid selecting stocks or building your portfolio yourself. The best robo advisors in the UK automate the financial planning process for their customers with the goal of making the investment process hassle-free.
9. Are robo advisors safe?
All robo advisors listed on Koody are regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA). This means they must regularly report their activities and can be penalised for making mistakes.
Additionally, all deposits in a regulated UK robo advisor are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000 per person. This means you could get your money back up to £85,000 per person per financial institution if any of the robo advisors go bust. Note that the FSCS does not cover losses arising from the performance of any of your investments.
10. What is the difference between a robo advisor and a normal investment platform?
A robo advisor is a technology company that provides automated financial planning with little or no human supervision.
Robo advisors use their algorithms to estimate your risk level and present you with a set of ready-made investments based on your risk profile. In contrast, traditional investment platforms offer a variety of investments, including stocks, bonds, ETFs, ETCs, commodities, investment trusts, options, futures, CFDs, and more, and give you the opportunity to select the investments of your choice and build your portfolio yourself.
Today, many established investment platforms offer services similar to robo-investing. These services are called managed investments or ready-made portfolios.
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