Robo-advisors aim at building wealth gradually over time, following an automated portfolio management process. The number of Robo-advisors is steadily increasing as this wealth management service is quickly becoming popular around the world. Robo-advisors facilitate investing by minimizing research time, removing emotions when selecting investments, and automating the portfolio management process. Furthermore, management fees are relatively lower compared to traditional financial advisors. Among the other services provided, some platforms offer financial planning tools, tax-efficient techniques, access to human financial advisors, Socially Responsible portfolios, and a variety of other services.
At Robo-Advisor Finder, we follow over 80 Robo-advisors worldwide, of which more than 20 offer their services to investors from the United Kingdom. That's a lot to check, right? In this article, we'll make it easier for you by mentioning the best Robo-advisors in the United Kingdom and why we think they are among the best-automated wealth management platforms.
If you want to know more about Robo-advisors, how they function, what services they provide, and whether or not this type of automated investment is right for you, you can take a look at our article “What is a Robo-advisor?”
eToro: Best social investing platform. The company offers robo-advice services through its “Smart Portfolios” which are designed to help investors in creating diversified portfolios.
Best Robo-advisors in United Kingdom
While Robo-advisors have been popular in the US for several years, with many financial institutions adding this feature to their services, the UK has lagged behind. Still, there are numerous Robo-advisors available for British investors that provide innovative services at a very low cost, making investing more accessible to all. In general, when we try to classify Robo-advisors, we look for low pricing, low minimum deposit requirements, and availability of several account types such as ISA, GIA and pension. Those factors are undoubtedly among the most important factors for investors to consider when selecting a suitable Robo-advisor (Robo investor).
To list the best Robo-advisors in United Kingdom, we've checked different platforms and evaluated those three main characteristics, and here are the results of our deep dive research.
💼 Products available: ISA, Junior ISA, GIA, Pension
Founded in 2012, Moneyfarm is a Robo advisor that started operating in Italy, then moved in 2016 to the United Kingdom. Moneyfarm has over 80,000 active investors and more than £2.2 billion invested on its platform. They offer seven personalized investment portfolios that are suitable for various risk profiles.
You can choose between actively managed portfolios, where moneyfarm experts will keep an eye on your portfolio and rebalance it, taking advantage of market developments; or you can invest through fixed allocation portfolios, where holdings are rebalanced automatically once per year. You can also choose to invest in socially responsible ETFs.
Moneyfarm has a tiered fee structure based on the amount invested and your investment style. Overall, their fees range between 0.25% and 0.75% per year. Additionally, you can always contact Moneyfarm's investment consultants to discuss market events and get quick answers to your concerns regarding your portfolio and performance.
Moneyfarm is suitable for UK investors looking for a Robo-advisor that has access to financial advisors while having their funds managed at a low cost.
💼 Products available: ISA, Junior ISA, Lifetime ISA, Investment Account, Pension
Founded in 2011, Nutmeg is one of the oldest Robo-advisors available for investors in the UK, with over £4.5bn in assets under management and 200,000 clients. After a simple questionnaire, they recommend you a ready-made ETF portfolio tailored to your profile. You can select from four investment styles, each with a different level of risk.
Fixed allocation: portfolios designed to perform without the intervention of Nutmeg’s investment team;
Fully managed portfolios: globally diversified portfolios tailored to your investment goals that are actively managed and rebalanced by the Nutmeg team based on current economic conditions;
Socially responsible investing: portfolios designed to invest while focusing on the environment, social values, and good governance;
Smart Alpha portfolios: portfolios where the ETF selection process combines Nutmeg's core investment principles, ETF and fractional investment expertise with J.P. Morgan Asset Management's research expertise and global team experience.
You can start investing with as little as £100 for a Lifetime ISA, or £500 for General and ISA products, and fees range from 0.25% to 0.75%, depending on your investment style.
Nutmeg is suitable for all UK investors looking for a low-fee Robo-advisor that is well-established in the market and has a user-friendly platform.
💼 Products available: ISA, Personal or Business Account
InvestEngine is a UK online investment platform (founded in 2019) that helps you invest and build long-term ETF portfolios. You can invest either through their automatically managed portfolios or, if you are more confident, you can use their "Do-it-yourself" service, which gives you access to over 540 ETFs to build your own customized portfolio.
Their managed portfolios include growth and income portfolios, and the rebalancing occurs once every quarter. They have a low-cost structure, where automatically managed portfolios are charged an annual fee of 0.25%, whereas "Do-it-yourself" portfolios are commission-free.
InvestEngine is suitable for British investors looking to invest in automatically managed portfolios at a very low cost while having access to DIY portfolios.
Founded in 2002, XTB is a major player in the brokerage industry with extensive worldwide experience, regulated by the Financial Conduct Authority (FCA) - plus other relevant regulatory bodies - and listed on the Warsaw Stock Exchange.
From as low as €15, you can invest in XTB Investment Plans. You can build one or more portfolios (up to 10) based on over 350 ETFs. There is no cost in running any of the XTB Investment Plans. However, you might incur a 0.20% (min £10) ETF transaction fee if your monthly turnover (total amount of the transactions amount) exceeds £100,000. Otherwise, it is commission-free.
Be aware that this is not a “typical” robo-advisor. It does not create your investment plan for you - you are the one who needs to choose the financial instruments. Still, it is a cost-effective and intuitive way to invest for the long-term, automatically, without needing to pay annual management fees charged by other robo-advisors.
XTB Investment plans homepage
You can invest automatically by selecting a specific amount, deposit period and method.
Finally, there are no restrictions: you can deposit or withdraw anytime and there is no minimum investment period.
#5 Clim8 (Best for socially responsible portfolios)
💲Fees: 0.60% per year
💵 Minimum balance: £25
💼 Products available: ISA, GIA, Junior ISA
Clim8 is a mobile investment app and Robo-advisor founded in 2019 that allows you to make positive impact investments in areas such as clean water, smart mobility, clean technology, clean energy, sustainable food, and the circular economy.Its products include a General Investment Account (GIA) and an Individual Savings Account (ISA).
Clim8 has a very low minimum balance requirement of £25, and they have a simple fee structure at 0.60% per year. Their offering includes three portfolios: Cautious, Balanced and Adventurous. On the downside, the platform is still new and their services are only accessible through a mobile application.
Clim8 is suitable for investors from the United Kingdom that are looking to invest in highly customized socially responsible portfolios. You can read our Clim8 review for further insights.
💼 Products available: ISA, Junior ISA, GIA, Pension, Savings
Wealthify is a UK robo advisor founded in 2014 that lets you choose from five different portfolios based on your risk appetite, ranging from cautious to adventurous. Those five portfolios are also available through ethical investment plans, letting you invest in line with your values.
Wealthify’s investment process is not fully automated; they use a mix of smart algorithms in addition to their human expertise to make small adjustments to portfolio holdings. Their fees are straightforward at 0.60% per year, and they allow you to withdraw your money anytime without penalty.
Wealthify is suitable for British investors looking to start investing from as low as £1.
💲Fees: 0.50% per year on the first £50,000, then free over £50,000
💵 Minimum balance: £500
💼 Products available: ISA
IG Smart Portfolios are automatically managed portfolios offered by IG, an online trading company founded in 1974. After answering a set of questions, they recommend one of their five portfolios that matches your risk profile: Conservative, Moderate, Balanced, Growth, or Aggressive.
IG Smart Portfolios are actively managed portfolios combining expertise, innovative technology and low costs. The portfolios are broadly diversified portfolios, giving you exposure to fixed income, equity, and alternative investments.
IG Smart Portfolios are suitable for British investors who want to have access to other brokerage services and have their money managed on one platform.
💲Fees: Zero Management and account Fees. Other fees apply.
💵 Minimum balance: US $50
💼 Products available: ISA (through Moneyfarm), Social Investing, Smart Portfolios
eToro is a multi-asset brokerage and social trading platform that was created in 2007. It has grown in prominence as a leading online platform for social investing and trading in a wide range of financial assets such as equities, cryptocurrencies, commodities, FX, and others.
While eToro provides some social trading and portfolio management capabilities that are comparable to robo-advisors, it is important to remember that eToro's core functionality is centered on social trading, and its platform may not fully mimic the services provided by dedicated robo-advisory firms.
In the UK, the company offers robo-advice services through its “Smart Portfolios” which are designed to help investors in creating diversified portfolios.
eToro's Smart Portfolios
Best Robo-Advisors/Robo Investors in the UK Compared
Best Robo-Advisors in the UK Compared
Final Thoughts
Overall, Robo-advisors are ideal for investors looking for "set and forget" investment solutions. However, with the growing number of Robo-advisors in the United Kingdom, it is becoming increasingly difficult for investors to select the one that best suits their needs.
To make things easier, we've compiled a list of the UK’s six best Robo-advisor/Robo Investors options. However, many more companies might also suit your needs, so we encourage you to check our full list of Robo-advisors. In general, we suggest you visit their websites, read about how they implement their investing strategies, compare the fees charged, and verify that the company is regulated.
Remember, if you have any questions, feel free to leave a comment below.
A reminder that the above should not be construed as investment advice and should be considered information only. Investors should do their own research and due diligence about the services and opportunities best suited for their risk, returns, and impact strategy.
eToro: Best social investing platform and smart portfolios.
How much money do I need to invest with a Robo-advisor?
Most Robo-advisors have a very low minimum balance requirement to start investing (you can find Robo-advisors that allow you to start investing starting at $5).
Do Robo-advisors beat the market?
No, most Robo-advisors invest in ETFs and work on matching the performance of a particular market benchmark. So, they tend to closely replicate the market's performance rather than beat it.
What is the alternative to a Robo-Advisor?
The alternative to a robo-advisor is to do-it-yourself, through a regular brokerage platform. That way, you can save management fees if you know what you want to invest in and don't mind manage the portfolio independently. If interested, check this Trading 212 Promo Code, and Lightyear Promo Code.
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