In this review, I examine how Moneyfarm invests money. I also talk about Moneyfarm’s charges, fees, performance, and portfolio returns. I’m a well-known investment expert, and I’ll guide you through my review of Moneyfarm step by step. It’s important to read the whole review because I provide key insights and analysis, especially regarding charges and performance.
Moneyfarm offer
Moneyfarm investments might work for some people (read the full review below).
Invest for free for a whole year with no management fees
If you open a stocks and shares ISA, Junior ISA, pension, or general investment with Moneyfarm and put in at least £500, they won’t charge you any fees for a whole year. You don’t have to set up a monthly direct debit if you don’t want to.
Who is Moneyfarm?
Moneyfarm is a good choice for people looking to invest in ISAs or pensions. It started in Italy in 2011 and expanded to the UK in 2016. Many people in the UK want to invest in ISAs, robo-advice, and pensions without spending too much money. Moneyfarm is a popular choice because it offers good investment options and doesn’t require a lot of effort from the investor. Moneyfarm recently acquired Wealthsimple’s customers and now manages over 2 billion in assets. It is regulated by the Financial Conduct Authority. Additionally, in December 2022, Moneyfarm acquired Profile Pensions, a digital pension provider.
Moneyfarm minimum investment amount
Moneyfarm’s minimum investment is £500. If you invest £500 or more with Moneyfarm, they won’t charge you their management fee for the first year. If you have at least £500 to invest, you could try Nutmeg instead. They’ll also waive their management fees for the first 12 months.
If you want to invest less than £500, you can check out Wealthify. They allow you to invest from as little as 1 in various accounts like ISA, Junior ISA, general investment account, or pension.
How does moneyfarm investment management work?
Here’s a simplified version of the paragraph:
Moneyfarm helps you with investing in five main ways:
- They help you figure out how much risk you’re comfortable with when investing.
- They spread your money across different types of investments to reduce the chance of losing everything.
- They keep fees low so you can keep more of your investment gains.
- They invest your money in smart ways to try to make it grow.
- They watch over your investments and check in on them regularly.
You can start investing with Moneyfarm in just 10 minutes using their website or app. This is faster and easier than many other investing websites. I tried it myself, and it’s true! You can even create a practice portfolio in just 3 minutes without having to invest any real money.
I think Moneyfarm doesn’t talk enough about this in their ads. Being able to chat with an investment expert who can give tips (not direct advice) is appealing to investors who want low-cost help managing their money, but still want a human touch when needed.
Moneyfarm advises people about money using a computer program. This program picks investments for you. This way, customers get more protection compared to just using a computer program to buy investments. Moneyfarm has four different products for investing.
Who should consider Moneyfarm investments?
If you’re someone who:
- Wants a personal investment advisor and a chance for an initial investment review,
- Prefers a low-cost discretionary investment service,
- Plans to invest at least £500 (same as Nutmeg’s minimum), or
- Values flexibility with no exit fees, then Moneyfarm might be right for you. It’s also good if you:
- Want better returns on your investments with little time or knowledge required,
- Prefer to invest through an ISA, pension, or general investment account,
- Are interested in ETFs but find them confusing, or
- Want your fees to decrease as you invest more?
What protection is there from Moneyfarm going bust
Moneyfarm is allowed and controlled by the financial conduct authority. Moneyfarm keeps clients’ money separate from its own. Your investment can get protection under the financial services compensation scheme, up to £85,000.
Moneyfarm customer reviews
I worked hard to give a fair review of Moneyfarm. But it’s also cool to hear what regular people think. Moneyfarm has a good score of 4.0 out of 5.0 on Trustpilot. That’s based on over 1,000 reviews. Here are a few of them:
- James B. thinks the platform is good for new investors. He says it’s easy to understand and the customer service is fantastic.
- Elizabeth D says the website is easy to understand, and she got good advice over the phone.
- John says the service and information before investing are great.
- Lynn F thinks the service is excellent and they are committed.
- Davide D believes the platform is excellent and the consultancy service is trustworthy and reliable.
Conclusion
If you want an easy way to invest in the stock market without any hassle, Moneyfarm might be a good choice. They create a portfolio based on your risk level and savings goals. Plus, they offer a human investment consultant you can talk to. Moneyfarm has done well in the past, but that doesn’t guarantee future success. Still, if you’re looking for a simple and cheap way to invest with potential for decent returns, Moneyfarm is worth considering. But if you prefer to be more hands-on with your investments and make your own decisions, you might want to check out my 80-20 investor service.
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