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Moneyfarm is a digital wealth management service that blends technology and human expertise to offer efficient financial guidance to achieve your financial goals. It seeks to help investors meet their investment goals by using three specific actions: building globally diversified portfolios, keeping fees and management costs as low as possible, and offering automatic rebalancing of portfolios to manage risk when necessary.
To target the highest possible returns consistent with your risk level, Moneyfarm uses algorithms to help optimise different asset types, regions, and currencies – all stress-tested for your reassurance. The higher the risk level, the more your portfolio will be invested in stocks and shares, while further down the risk scale, the more the balance will shift towards bonds.
Summary: Moneyfarm is an excellent choice for a diversified portfolio at a low cost to maximize returns for retirement.
Account opening
Commission & Fees
Deposits & Withdrawals
Services Offered
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Portfolio Management
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Safe & Secure
| HQ | 90-92 Pentonville Road, London N1 9HS |
| Minimum Investment | ÂŁ1,500 |
| Annual Fees | 0.75% of assets under management |
| Setup Fee | None |
| Cancellation Fee | None |
| Investment Expense Ratio | Varies |
| Accounts | – General Investment Accounts (taxable) – Individual Savings Account (ISA) – Self-Invested Personal Pension (SIPP) |
| Access | Web app, Mobile app (iOS and Android) |
| Portfolio Rebalancing | Automatic rebalancing available |
| Tax Loss Harvesting | Available |
| Advisor | Investment consultant available |
Moneyfarm is considered a robo advisor, which means it builds, manages, and rebalances your portfolios on your behalf, ensuring it keeps you on track with your goals and within your risk level. It helps you grow your wealth by selecting the best asset allocation for you, and provides you with additional guidance through a dedicated consultant.
Moneyfarm employs a concept called modern portfolio theory and the efficient portfolio model to build clients’ portfolios. It uses ETFs to create an investment portfolio that helps investors meet their objectives with the right balance of risk and potential reward.
It has a tiered pricing model, so the more money you invest, the lower the effective fee – the fees range from 0.75% to 0.35%. Moneyfarm also has a user-friendly web and mobile app interface that is simple and easy to use with iOS and Android. The app also provides the latest market insights.
You can open an account online via the website. To get started, you will have to:
You will need your National Insurance number and picture identification, such as a passport or driver license, and proof of address (a phone or utility bill).
Moneyfarm charges a tiered annual management fee that covers:
Management fees are as follows:
| Management Fees | Investment Amounts |
| 0.75% | ÂŁ0 – ÂŁ10,000 |
| 0.6% | from ÂŁ10,001 to ÂŁ50,000 |
| 0.5% | from ÂŁ50,001 to ÂŁ100,000 |
| 0.35% | Over ÂŁ100,000 |
Moneyfarm primarily invests in ETFs and the underlying fee is the fund fee associated with those particular instruments, a flat fee of 0.20%. Other fees include the market spread, which can cost up to 0.09%.
You can deposit funds to your Moneyfarm account through a one-off lump sum, regular contribution via direct debit or a transfer from an ISA or SIPP. There is currently a ÂŁ20,000 monthly limit if you choose to deposit via Direct Debit. If you want to contribute larger amounts monthly, you can set up a standing order with your bank. If you’re unsure, you can contact one of Moneyfarm’s team of investment consultants to talk through your options.
Once you have sent funds via bank transfer, it usually takes one business day for the money to show up in your account. However, this depends on your bank, as some banks can take up to two to three business days to process the transfer. Once received, funds are allocated the next working day. For direct debit payments (both one-off and monthly), it can take up to four working days to show up in your account and an additional working day for the funds to be invested.
When making a withdrawal, the money needs to be in the available cash section of your account. You need to disinvest before you can withdraw. If you would like to draw your money, it can take up to seven business days to land in your bank account.
The advisor offers the following services:
| Retirement planning | Moneyfarm investors have access to a team of fully qualified investment consultants, who can help map out your retirement plans and ensure that your portfolio reflects them. You can get advice on your retirement planning by phone, by email or (eventually) in person. |
| Asset Management | Moneyfarm has an experienced team of asset managers who take care of everything that makes up our investors portfolios. They monitor the markets daily, assess opportunities as they arise, and plan long-term to give investors the best chance of growing their wealth. |
| Education planning | N/A |
| Life planning | With Moneyfarm, you can open different investment accounts (ISA, SIPP, etc) for different life goals. Just talk to your dedicated investment consultant when you join and they’ll match you up with a financial plan that suits your goals. |
| Tax planning | Tax efficiency is a big part of why people invest in ISAs or SIPPs versus other investments options. Moneyfarm’s team of investment consultants will be able to guide you through your personal tax situation and ensure you’re never paying any more than you need to on your savings. |
| Insurance planning | N/A |
| Estate planning | N/A |
| Legacy Planning | N/A |
| Retirement income | When you open a SIPP with Moneyfarm, you’ll fill out a series of questions designed to better understand the kind of income you’ll need in retirement. From this, they’ll match you with an investment portfolio that suits these goals. |
Moneyfarm’s portfolios are built using the Modern Portfolio Theory and can contain several different asset classes. Portfolios can have up to fourteen funds spread across multiple assets. These include equities, bonds, and commodities that are covering several geographical areas (UK, Europe, US, emerging markets, etc.), currencies (Pound, Dollar, etc.), and sectors (banking, healthcare, energy, etc.).
Moneyfarm uses algorithms alongside expertise to give your money the best chance at growing. It guarantees that you’ll always be investing in a portfolio that’s suitable for you, your investment needs, and your timeframe.
Moneyfarm believes that investing for the long-term is one of the most effective ways to maximise your returns.
Additionally, an algorithm runs monthly to ensure that the portfolio that you’re invested in remains suitable for you. If anything changes, you can update your goals and risk appetite at any time. Moneyfarm keeps its costs low and periodically assesses the make-up of your portfolio to maximise your returns.
Portfolio managers monitor the markets every day to make sure your investments are looked after.
For help with your account and general questions about Moneyfarm’s services, you can contact them for free via phone Monday to Thursday 9am – 7pm and Fridays, 9am – 6pm. You can also contact them via email hello@moneyfarm.com, Twitter @MoneyfarmUK, Facebook, or live chat.
Moneyfarm’s Advice Centre simplifies and makes it easier for people to get investment guidance on an ongoing basis, periodically prompting customers to update key information to ensure their portfolio continues to meet their financial goals.
You can also get information on the markets and on the particulars of investing from Moneyfarm’s blog posts, or by flicking through its useful FAQ section, which gives clear answers to common questions you might have. It also has educational videos and other resources for its users.
Moneyfarm is authorised and regulated by the Financial Conduct Authority. You’re covered up to £85,000 by the UK Financial Services Compensation Scheme (FSCS). Your funds are stored with Barclays and Saxo Capital Markets, and a Sectigo-certified connection protects your data.
Moneyfarm is an excellent choice for anyone looking for a digital wealth management service that delivers a well-researched portfolio at a low cost that can help grow your wealth for retirement at a steady rate. It is also ideal for those looking for a simple, hassle-free method for investing in the stock market, with a portfolio tailored to your risk profile and savings goals. As with all investing, it is important to note that your capital is at risk. The value of your portfolio can go down as well as up and you can get back less than you invest.
