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Moneyfarm Review


In this Moneyfarm review you’ll find answers to many important questions you may have about the company.

We’ll look at Moneyfarm’s fees, products, minimum investment amount and also examine the past performance of their funds. 

Finally we’ll look at some UK alternatives to Moneyfarm, to see how they measure up.

Who Are Moneyfarm?

Moneyfarm are a digital wealth manager who started off life in Italy. After fast growth and demand for their service, they launched in the UK in 2011.

Robo-advisors like Moneyfarm have become very popular in recent years, as they enable people to invest in the stock market in a truly hands-off way and with very low fees attached.

Once you have answered a few initial questions, Moneyfarm will invest your money into a variety of low-cost ETFs. By doing this, they can build a portfolio on your behalf which matches your own appetite for risk.

Moneyfarm’s service is great for those who have little experience investing. Many experienced investors are also now investing with Moneyfarm too due to the low fees charged and the hassle-free approach. 

Moneyfarm Fees

One of the biggest things which attracts investors to sign up with Moneyfarm are the low fees charged. So, what are the fees and how do the company keep them so low?

Moneyfarm’s management fees have recently changed and they now gradually reduce as you invest higher amounts of money.

  • Invest anything up to £20,000 and their management fee is 0.7%.
  • When you invest between £20,000 and £100,000 it’s 0.6%.
  • For £100,000 to £500,000 it’s 0.5%.
  • For anything over £500,000 it’s 0.4%.

You will also need to factor in the costs associated with the underlying ETFs, which average around 0.3% per annum. This is very low when compared to investing with a typical wealth manager.

Moneyfarm’s management fee includes all costs associated with the operation of your portfolio. This means that there are no extra trading fees and there are also no setup, withdrawal or exit fees.

Moneyfarm Fees Review

How Much Can You Invest With Moneyfarm?

Moneyfarm have no minimum investment amount, meaning you can invest from just £1. Moneyfarm do recommend that you invest more, however. This is so that they can build a truly balanced portfolio on your behalf.

If you choose to invest via their Stocks and Shares ISA then remember that your ISA allowance limits will apply.

Moneyfarm Stocks and Shares ISA Review

As we’ve just discussed, Moneyfarm also offer a Stocks and Shares ISA.

The Moneyfarm Stocks and Shares ISA operates in much the same way as their general investment account apart from the fact you can invest up to £20,000 in each tax year without paying income or capital gains tax. You can start an ISA with Moneyfarm in less than 10 minutes. You can also transfer an existing ISA to Moneyfarm fees free. The Moneyfarm ISA is also attractive as there are no minimum initial or monthly investment amounts.

For more on Moneyfarm’s Stocks and Shares ISA fees, scroll back up to the ‘fees’ section of this Moneyfarm Review.

Moneyfarm’s Past Performance

The good news for potential investors is that Moneyfarm are transparent when it comes to their performance. You can easily see how they’ve done on the ‘performance’ page of their website. They typically show data from the start of 2016 and none of these funds have lost money since that date.

While this is great, it should be noted that the FTSE 100 did suffer a drop prior to this date. With this in mind a longer term look at performance may be beneficial. As a whole, though, it is good to see that Moneyfarm has performed well during some particularly turbulent political events.

Moneyfarm Performance Review

Please note: Past performance is not a reliable indicator of future performance. Investments can rise as well as fall, meaning your initial capital investment could be at risk.

Do Moneyfarm Offer a Pension Plan?

Until recently, Moneyfarm did not offer a pension product. This has now changed, however, and you can now set up a Moneyfarm pension via their website.

Is Moneyfarm Safe?

The good news here is that Moneyfarm are regulated by the Financial Conduct Authority. This means that they are forced to keep client funds separate from their own. Investments are covered by the FSCS (Financial Services Compensation Scheme) for up to £50,000 for extra protection.

Moneyfarm make a point of highlighting that they go to special lengths to protect your personal data by encrypting it.

Moneyfarm Alternatives

Now that you know all you need to know about Moneyfarm, you might be wondering if there are any UK alternatives to Moneyfarm and also how they compare? The UK robo-advisor market is growing fast but there are two companies whom you might have heard of already.

Wealthsimple vs Moneyfarm

Like Moneyfarm, Wealthsimple don’t have a minimum investment amount. They have a simple fee structure, charging a management fee of just 0.7% annually on any investments up to £100,000. If you invest more than £100,000, then this drops to 0.5%.

Nutmeg vs Moneyfarm

The first point of note is that Nutmeg have a minimum investment amount of £500 to start investing with them. As we’ve already discussed, Moneyfarm have no minimum investment amount. Nutmeg’s fees are higher when investing between £20,000 and £100,000 at 0.75% for a fully managed portfolio. They are, however, lower than Moneyfarm when investing over this amount at 0.35%.

Nutmeg offer a Stocks and Shares ISA, a Lifetime ISA and they also offer a pension.

Is Moneyfarm Right For You?

Having read all of the above, you will hopefully have a good idea by now of whether Moneyfarm is going to be the right investment option for you.

If you’re looking to find a killer share or stock which is going to make you filthy rich in a matter of a few years, then Moneyfarm probably isn’t for you and you may want to check out the DIY Stocks and Shares ISA from Hargreaves Lansdown instead.

If, however, you are looking for a truly hands-off investment option with low-fees/charges and which should hopefully deliver steady and consistent growth for years to come, then Moneyfarm could well be a good option for you.

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