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Wealthsimple UK Review: Get Your First Year for Free!

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In this Wealthsimple review, we take a closer look at the UK robo-advisor to help you decide if they are the right digital wealth manager for you.

We look at who Wealthsimple* are, how big the company is and what they offer for investors like you. We’ll also be taking a look at their fees, account types and see how they compare to some of the other big UK robo-advisors.

You might also be interested to know that we’ve secured a special deal for new investors who sign up using any of the links in this post, a deal enabling you to get your first £5000 worth of investments managed for free* for the first year!

Who Are Wealthsimple?

Wealthsimple started life back in 2014 with the mission of providing world-class low cost investment advice. At the time of writing, Wealthsimple* have over 75,000 customers globally and they manage over £1.4 billion worth of assets.

After seeing massive growth in their Canadian and US business, Wealthsimple then expanded into the UK.

Wealthsimple pride themselves not only on the advice that they offer but also on the design, ease of use and security of their platform, helping them to win the prestigious Webby Award for Best Financial Services/Banking website two years running!

How Does Wealthsimple Work?

Wealthsimple use digital tools and a Nobel Prize winning investment strategy to build a personalised portfolio for their clients.

After you sign up with Wealthsimple*, they will ask you some simple questions to help them assess your attitude to risk and understand your investment goals. Once they have this information, they can then invest your cash into suitable low-cost index funds. Wealthsimple will then continuously monitor and re-balance your portfolio on your behalf.

So, once you’re invested, you don’t have to do a thing!

Example of Wealthsimple funds for a balanced portfolio

As Wealthsimple make use of digital tools and invest your money into low-cost funds, they are able to charge much lower fees than those charged by typical wealth managers. This means world-class investment management doesn’t have to be restricted to only high net worth investors.

The above being said, many high net worth individuals are now seeing the benefits of using robo-advisors. As a result, Wealthsimple have a special package for those with over £100,000 to invest. The package is called ‘Wealthsimple Black’, which offers even lower fees as well as other perks.

While you can sign up and manage your Wealthsimple account* online, it’s worth noting that you can still speak with a human investment advisor as and when you feel the need to.

What Are Wealthsimple’s Fees?

The fees Wealthsimple charge are clear and simple to understand.

If you’re investing less than £100,000 (there is no minimum investment amount) then Wealthsimple charge a management fee of 0.7%. Then there is the cost of the underlying funds they invest your money into, which is around 0.2% on average.

If you’re investing over £100,000 then you will be eligible for Wealthsimple’s ‘Black’ account. This account comes with all the features of the basic account but a lower fee of 0.5% + fund costs.

Wealthsimple Basic and Black account pricing and benefits

Wealthsimple Stocks and Shares ISA

So far we’ve mentioned Wealthsimple’s Basic Account and Black Account but UK investors will be happy to hear that there is also a Wealthsimple Stocks and Shares ISA* and a Wealthsimple Junior ISA*. This means you can enjoy the tax benefits that come with investing via an ISA for you and your children.

The ISA allowance set by the government currently stands at £20,000 per year for adults and £4,260 for children. You can invest it all into a Stocks and Shares ISA or you can split it across various ISA types.

You can also transfer an existing ISA over to Wealthsimple* in a matter of minutes via their website and they will cover any associated costs.

Do Wealthsimple Offer a Pension?

Wealthsimple don’t currently offer a Pension or SIPP. There are plans to launch one in the not too distant future, though. So if you don’t mind waiting then you can sign up for an account in preparation for the launch.

If you’re looking for a robo-advisor with a pension product already up and running, then check out Nutmeg*.

New Investor Sign Up Offer

As we mentioned at the start of this post, we’ve also managed to secure a New Investor Sign Up Offer for our readers who open a Wealthsimple account* using any of the links in this post. If you take advantage of this offer then you’ll get your first £5000 of investments managed free for a year!

Invest on Autopilot via the Wealthsimple Mobile App

Is Your Money Safe With Wealthsimple?

Wealthsimple use state of the art encryption to help keep your money safe. It’s good to know that Wealthsimple are also fully regulated by the Financial Conduct Authority. This means that any money deposited is protected by FSCS protection up to a maximum of £85,000. Obviously this does not cover any losses related to investment activity.

Wealthsimple Alternatives

We appreciate that after reading this review you may for some reason decide that Wealthsimple aren’t quite right for you. If so, you may want to check out our reviews of some other UK robo-advisors which we’ve listed below.

Are Wealthsimple Right for You?

By their very nature, robo-advisors like Wealthsimple* are not designed to turn you into an overnight millionaire. Robo-advisors are instead designed for those looking for a low fee, hands off way to grow their cash. Of course, consistent growth cannot be guaranteed but this is Wealthsimple’s aim. While you can – to some extent – choose the level of risk that you are willing to take when using a robo-advisor in the hope of better returns, it’s still best to be realistic in your expectations.

With the above in mind, if your investment goal is to see massive growth over a short period of time, then you might be better off opening a DIY Stocks and Shares ISA with a company like Hargreaves Lansdown* and trying to pick your own stocks instead. If on the other hand you are looking for a hands off investment that should produce steady returns with low fees, then Wealthsimple could be a great place to start.

Don’t forget that if you open an account with Wealthsimple today* using any of the links in this post, then you can get your first £5000 worth of investments managed free for the first year!

‘With investment comes risk and you may get back less than you invest’.

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