Kickstart your investment portfolio with Moneyfarm’s digital wealth managers.
Moneyfarm has been providing digital wealth management since 2011. It offers three main services: pensions, stocks and shares ISAs.
In this article we take a look at each of them in a bit more detail.
You can also head straight to Moneyfarm by clicking the button below.
What is Moneyfarm?
Moneyfarm is an online investment platform, which makes investing more accessible and easy-to-use for people at a low-cost.
The company originally launched in Italy, before establishing its UK business in 2016. It has already won Innovation of the Year and Best Online Direct to Consumer Investment Platform at two industry awards in 2018.
How does Moneyfarm work?
Moneyfarm invests your money in diversified portfolios, which means it is spread across a mix of assets from different industries, countries and currencies. Moneyfarm tends to focus mainly on exchange-traded funds (ETFs) in order to retain low fees.
The company’s Asset Allocation Team are regularly monitoring your portfolio, aiming to keep costs low and the quality of your investment high.
Your portfolio could contain up to seven funds if you invest with less than £50,000. Alternatively, a large investment of over £50,000 could features up to 14 funds.
How do I apply for a Moneyfarm general investment account?
To open a Moneyfarm investment account, you must be over 18 and a resident of the UK or Italy.
You can set up a Moneyfarm account online in just 10 minutes by providing some personal details and answering some questions about your investment goals and attitude to risk.
You’ll need a minimum of £500 to invest, with Moneyfarm recommending you have at least £1,500 in your account so you can have a good mix of investment assets.
Once you open an account, you can review your portfolio, track performance, analyse asset allocation, and withdraw money using the app.
All customers are charged management fees, with the fee going down the larger the investments. This fee is charged on the total value of your account, rather than each portfolio.
- 0.70% annually on the first £20,000.
- 0.60% annually on balances between £20,000 and £100,000.
- 0.50% annually on balances between £100,000 and £500,000.
- 0.40% annually on balances over £500,000.
In addition to this, you’ll also be charged a transaction cost (market spread) and fund fee, which tend to average at 0.09% and 0.30% per year respectively.
Pros and cons
- Access your portfolio online or via the app 24/7.
- Customer service via live chat, phone or email.
- Free withdrawals.
- No exit fees.
- No minimum investment period: You can withdraw money whenever you like.
- Less control over investments: If you want to choose what you invest in, you’re better off managing your own portfolio.
- £500 minimum investment: If you wanted to start investing with an even smaller amount, it’s worth looking elsewhere.
Is Moneyfarm safe?
Moneyfarm is a secure company which is backed in the UK by large investment firms, Allianz; Cabot Square Capital and United Ventures.
It is authorised and regulated by the Financial Conduct Authority (FCA), which means you may be entitled to compensation if it cannot meet its financial obligations.