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Moneyfarm vs Nutmeg

These two are pretty similar, so which of these digital investment platforms comes out on top?

Overall winner Compare side by side
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By

Charlie Barton

Updated

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Interest rates are staying pretty low. which is making people with savings looking elsewhere to make their money work harder. Moneyfarm and Nutmeg are two “robo-advisors” that take your money and invest it on your behalf, based on your risk appetite.

These platforms are great for beginners or for those who don’t want to get their hands dirty when it comes to investing. Both offer a clean user experience and make it simple to put money aside and to reap the rewards of being invested in the markets. See who came out on top when we pitted Moneyfarm and Nutmeg against one another.

Moneyfarm vs Nutmeg: Vital statistics

MoneyfarmNutmeg stocks and shares ISA
Finder rating★★★★★★★★★★
Customer satisfaction rating★★★★★★★★★★
Costs rating★★★★★★★★★★
Stocks and shares ISA available?
FSCS protected?
Go to site
More Info		More Info

At first glance, these platforms are pretty similar. In the 2021 Finder customer satisfaction survey, Moneyfarm’s customers were pleased, giving it an overall satisfaction rating of 4 out of 5 stars. Its customers felt that it offered good value and high quality service and commented on how easy it is to use.

Nutmeg scored 3.5 stars out of 5 in the survey, with its customers noting how easy to use the app is and that they found it to be trustworthy.

Both providers are protected by the Financial Services Compensation Scheme (FSCS) which means that up to £85,000 of deposits are protected if they were to go bust.

You can also open a stocks and shares individual savings account (ISA) with both providers, which lets you invest up to £20,000 tax free (in the 2023/2024 tax year).

Round 1: Products

MoneyfarmNutmeg stocks and shares ISA
Stocks and shares ISA
Lifetime ISA (LISA)
Pension
Keep in mindCapital at riskCapital at risk
Go to site
More Info		More Info

Both providers are pretty similar when it comes to products. As we mentioned above, you can invest in a stocks and shares ISA with both – which is usually the default choice for beginner investors who haven’t used their annual ISA allowance yet.

Both providers have the option to open a private pension. This lets you save up for your retirement. It does have a nice top-up from the government but your money is locked until you turn 55.

Only Nutmeg offers the lifetime ISA (LISA). This lets you save up up £4,000 per year for your first home or for retirement. The government contributes £1,000 for every £4,000 invested.

  • Winner: Nutmeg

Round 2: Portfolios

MoneyfarmNutmeg stocks and shares ISA
Portfolios rating★★★★★★★★★★
Risk assessment quiz
Number of portfolios on offer730
Ethical portfolios on offer
Managed portfolios on offer
Go to site
More Info		More Info

Moneyfarm is a provider that has a risk assessment quiz. This is a selection of questions about you, your savings, your knowledge about investing, and how you feel about the risk associated with investing. It’s important to be honest about your experience. After this, it suggests a portfolio based on your answers. It isn’t a personal recommendation but it’s a good place to start.

Nutmeg doesn’t have this option – you choose a portfolio based on its risk description. This works well enough, but users may not understand their own risk appetites and misjudge which one to choose.

Nutmeg has a huge 30 portfolios on offer. There are four choices with 5 or 10 risk profiles to choose between. Moneyfarm only has 7 portfolios. There’s no ethical option but all the portfolios are managed.

  • Winner: Nutmeg

Round 3: Costs

MoneyfarmNutmeg stocks and shares ISA
Costs rating★★★★★★★★★★
Annual cost of investing £10,000£104.00£105.00
Annual cost of investing £100,000£640.00£1050.00
Annual cost of investing £1m£6,400.00£6,900.00
Go to site
More Info		More Info

Both Nutmeg and Moneyfarm charge differently depending on how much you invest. The more you invest, the lower the charges.

With Moneyfarm, you’ll be charged 0.75% on the first £10,000. Anything between £10,000 and £50,000 will incur a 0.60% fee. Anything between £50,000 and £90,000 costs 0.5%, while anything above £100,000 will be charged at 0.35%. All of those charges are per year.

On top of that, Moneyfarm will charge you 0.2% for investment funds per year and estimates the market spread to cost around 0.09%.

Then there’s Nutmeg. For its fully managed portfolio (standard), Nutmeg charges 0.75% on the first £100,000 you invest and then 0.35% on the portion beyond that. Nutmeg also charges a 0.19% investment fund cost and a market spread cost of 0.06%.

This is only one example though, so you’ll need to check out the fees for your own personal situation. Each provider has a calculator for you to see what your fees would be.

  • Winner: Nutmeg

Round 4: Features

MoneyfarmNutmeg stocks and shares ISA
Features rating★★★★★★★★★★
Desktop or web access
iPhone app
Android app
In-app news and research
In-app top-up
Keep in mindCapital at riskCapital at risk
Go to site
More Info		More Info

There’s nothing between Nutmeg and Moneyfarm when it comes to features. Both of these providers have access on desktop and in a mobile app. You can top up and access news and research within both apps.

  • Winner: Tie

Round 5: Learning resources

MoneyfarmNutmeg stocks and shares ISA
Resources rating★★★★★★★★★★
Guides
Videos and walkthroughs
Demo account
Advice
Go to site
More Info		More Info

Moneyfarm and Nutmeg have access to some good learning resources. Both providers have guides and access to advice, while neither has a demo account.

Moneyfarm has a collection of videos on YouTube to teach you about investing and how it works.

  • Winner: Moneyfarm

Our verdict: Is Moneyfarm better than Nutmeg?

Overall, these two are hard to separate. Both do what they say on the tin. The biggest hurdle for most investors is to just get started, and the best thing you can do is start investing and start early.

Nutmeg allows you to preview your portfolio before you actually open an account or invest any money, so it is worth checking that out and seeing how you get on. If you’re not a fan of the interface or feel of things, then try out Moneyfarm.

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

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