We have compiled a list of the best robo-advisors available for UK investors, and explain how they work as well as the cases where they may have the advantage over traditional investment methods.
Robo-advisors sit somewhere between DIY investing and full-fletched advisory services. In essence, they are algorithms trained to provide automated financial planning with little to no human supervision. The process isn't as crazy as it sounds – robo-advisors are monitored meticulously by providers to ensure good functioning, and they are trained to follow passive, low-risk investment strategies unless programmed otherwise. Among their offerings are ready-made investments, managed portfolios, and financial advice.
They make an excellent choice for beginner advisors, as well as those who don't have the time to deal with the hassle of choosing individual stocks, ETFs, or other assets.
Best UK Robo Advisors – Our Recommendation
Sort by
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
1eToro Read Review | 8.7 | Visitetoro.com | Don’t invest unless you’re prepared to lose all the money you invest. | |||||
2Invest Engine Read Review | 7.5 | Visitinvestengine.com | ||||||
3Moneybox | 7.3 | Visitmoneyboxapp.com |
Top 7 UK Robo Advisors Reviewed & Compared
Best Robo Advisors at a glance
Best for low commissions and management fees – eToro
Best for low investment fees – InvestEngine
Best for beginners – Moneybox
Best for personalised services – Moneyfarm
Best for ready-made portfolios – Wealthify
Best for monthly investments – Nutmeg
Best for automated investing – Plum
1. eToro – Best for low commissions and management fees
Products available | General investment and trading accounts |
|---|---|
FCA Reg No | FRN 583263 |
Management fees | £0 |
Account fees | £0 |
Minimum Investment | £500 |
Trustpilot rating | 4.4 out of 5 |
Account type | Ready-made portfolios |
eToro's innovative smart portfolios are a series of professionally managed portfolios spanning several sectors such as web 3.0, utilities, technology, and more. With the aid of algorithms, the aim is to help investors optimise their returns by continually rebalancing their portfolios in order to minimise risk.
Besides the dividend reinvestment feature, the best part about eToro is that every investment theme you choose is divided into subsections which provide even more flexibility in terms of how you invest your money. Whether you’re a conservative investor or an adrenaline junkie, eToro has a stock portfolio to fit your style.
Pros
- Commission-free stock trading
- Over 65 smart portfolios to choose from
- Automatic rebalancing and reinvestments
- Robust copy trading capabilities
- No account management fees
Cons
- High minimum investment
- Inactivity fee of £10 per month
- No ISAs or SIPPs
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
eToro Read Review | 8.7 | Visitetoro.com | Don’t invest unless you’re prepared to lose all the money you invest. |
2. InvestEngine – Best for low investment fees
Products available | General and business investment accounts, ISAs |
|---|---|
FCA Reg No | FRN 801128 |
Management fees | Free for DIY0.25% a year for managed portfolios |
Account fees | £0 |
Minimum investment | £100 |
Trustpilot rating | 4.5 out of 5 |
Account types | DIY and managed portfolios |
InvestEngine is one of the UK's leading investment platforms designed to help you build your portfolio in a DIY way or through their managed portfolio service. Founded in 2019, InvestEngine has grown rapidly and today boasts over 10,000 active clients. With managed portfolios, customers can choose from more than 550 ETFs with top providers such as Vanguard, Invesco, and iShares.
InvestEngine stands out against its competitors for several reasons: it charges no platform or management fees on its DIY portfolio and only 0.25% annually on its managed portfolio service, making it one of the cheapest in the UK. If you choose to go for a managed portfolio, note that the average ETF charge stands at 0.15% a year.
Customers can start investing with just £100 while accessing advanced tools such as one-click rebalancing and fractional investing. If you're looking for long-term savings, InvestEngine also offers ISAs with zero fees.
Pros
- Low fees compared to other providers
- Allows fractional investing with as low as £1
- There are no dealing fees
- No account fees
Cons
- No ethical portfolios
- No SIPP options
- No phone support
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Invest Engine Read Review | 7.5 | Visitinvestengine.com |
3. Moneybox – Best for beginners
Products available | Investment accounts, savings accounts, ISAa, SIPPs |
|---|---|
FCA Reg No | FRN 712935 |
Management fees | 0.45% |
Account fees | £1 |
Minimum investment | £1 |
Trustpilot rating | 4.5 out of 5 |
Account types | DIY and ready-made portfolios |
Moneybox is an investment app designed for both beginner and experienced investors in the UK. It offers a range of diversified tracker funds, ETFs, and global funds used to formulate beginner-friendly read-made portfolios.
Beginner investors or those who prefer ready-made portfolios can choose from three options; Cautious (low risk), Balanced (medium risk), and Adventurous (high risk). The first plan is quite beginner-friendly and invests in a range of overseas government bonds and cash trusts.
Moneybox also allows users to use its round-up feature, rounds all their card purchases to the nearest pound and invests the difference on their behalf. This makes it easier for beginners to start investing and helps them slowly build up savings over time without having to manually contribute each time.
Pros
- Minimum deposit of £1
- Versatile managed portfolio options
- Range of investment accounts including ISAs and SIPPs
- Comprehensive educational content for beginners
Cons
- High portfolio management fees
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Moneybox | 7.3 | Visitmoneyboxapp.com |
4. Moneyfarm – Best for personalised services
Products available | General investment account, ISAs, and pensions |
|---|---|
FCA Reg No | FRN 9088155 |
Management fees | 0.35%–0.75% |
Account fees | 0.2% |
Minimum investment | £500 |
Trustpilot rating | 3.6 out of 5 |
Account types | Ready-made portfolios |
Moneyfarm is a UK-based robo advisor that provides personalised investment plans based on an individual's risk preferences and goals. Their investment consultants offer customers free, digital financial advice via phone, email, live chat, and social media. To help clients get the best services, the platform conducts an online assessment to better understand and match each client with the right portfolio.
Moneyfarm offers seven risk-rated portfolios, all comprising a mix of cost-efficient ETFs and passive index trackers, as well as ethical or ESG investments for those looking to invest in line with their values.
Pros
- Relatively low fees for ethical portfolios
- Free portfolio rebalancing
- Personalised consultant matching and advice
Cons
- High minimum investment
- High management fees
- Relatively high annual fee
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Moneyfarm | 7.5 | Visitwww.moneyfarm.com/uk/ |
5. Wealthify – Best for ready-made portfolios
Products available | General investment, savings accounts, ISAs, and pensions |
|---|---|
FCA Reg No | CRN 662530 |
Management fees | 0.16%– 0.70% |
Account fees | 0.6% |
Minimum investment | £1 |
Trustpilot rating | 4.1 out of 5 |
Account types | Ready-made portfolios |
Wealthify is a UK-based robo-advisory service that allows users to build their investment plans according to their risk preference. It offers five different portfolio options, which are also available as ethical portfolios so investors can align their investments with their values, and those are:
Cautious – Aims to beat inflation while limiting losses;
Tentative – Aims to achieve reasonable growth while minimising losses;
Confident – Seeks good growth with a priority of minimising losses as much as making gains;
Ambitious – Aims to achieve high growth with the risk of large losses and significant swings in plan value;
Adventurous – Strives for the highest growth possible while taking on substantial losses and considerable fluctuations in plan value.
Pros
- Provides a good range of ready-made portfolios
- £1 minimum investment
- Quarterly portfolio rebalancing
- Provides a robust ethical portfolio offering
Cons
- High platform fee
- High fund management fee
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Wealthify | 8.2 | Visitwealthify.com |
6. Nutmeg – Best for monthly investments
Products available | General investment accounts, ISAs, and pensions |
|---|---|
FCA Reg No | FRN 552016 |
Management fees | 0.2%–0.36% |
Account fees | 0.25%–0.75% |
Minimum investment | £500 |
Trustpilot rating | 3.7 out of 5 |
Account types | Ready-made portfolios |
Nutmeg is a renowned robo-adviser in the UK, which manages more than 200,000 customer accounts, making it one of the biggest players in the market. Investors can choose between a number of ETFs and funds from a selection of thousands of equity, bond, and other investments provided by firms such as Vanguard, iShares, and Invesco.
The platform provides flexibility by letting users pay either a lump sum or make monthly payments. Most users prefer to set up direct debits, which let them spread the investment cost over a more manageable period.
Nutmeg also offers access to human advisors at an additional cost for those who require more personalised advice.
Pros
- Regular portfolio rebalancing
- Ethical portfolio options
- Wide range of account types
- Lower fees for those with large portfolios
Cons
- High minimum investment
- High platform fees
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Nutmeg | 7.6 | Visitnutmeg.com |
7. Plum – Best for automated investing
Products available | General investment accounts and pensions |
|---|---|
FCA Reg No | FRN 739214 |
Management fees | 0.45% |
Account fees | 0.13%-0.88% |
Minimum investment | £1 |
Trustpilot rating | 4.4 out of 5 |
Account type | DIY portfolios |
Plum is a UK money management and investment app that aims to make saving and investing easy, even for those with little or no experience. Users can invest in several funds and thousands of UK and overseas stocks, as well as ethical or ESG investment options.
Plum helps users to invest their spare change by rounding up card transactions to the nearest pound. The platform automates savings by calculating how much an individual can afford to set aside and investing it automatically once a week.
Pros
- £1 minimum investments
- Deposit automation
- Flexible algorithm
Cons
- High account fees
- No SIPPs
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Plum | 7.5 | Visitwithplum.com |
How We Rate & Review Providers
While the robots are 'taking over', we still believe in the power of human judgement. That’s why when it comes to reviewing and picking our top robo advisors, we’ve considered a few important factors:
Regulatory compliance – We make sure that all providers we consider keep up with regulatory guidelines, so you can trust your investments are in good hands.
Account fees – The cost of an account is just as important as how well it performs, so we make sure to ask what fees come with each robo advisor before making our selections.
Management fees – Not all platforms will charge you for their services, and those that do should do so within reason. We make sure to keep a watchful eye out for any hidden charges.
Range of investments – We only select robo advisors that offer a wide range of investments, from stocks and shares ISAs to funds and ETFs, as well as ones in line with ESG criteria.
Rebalancing and reinvestments – We always consider robo-advisor solutions offering these options.
Customer support – We make sure all of our top picks have diverse support channels, including live chat, email, and phone.
Understanding Robo Advisors
A robo-advisor is an online investment service that uses software and algorithms to manage your investments. It relies on automated processes instead of traditional human portfolio management, meaning no one-on-one meetings with a financial advisor or calls about buying stock options. You simply input information about your finances, such as goals, current savings level, and risk tolerance, into the system and let it do the work for you.
Besides creating your investment portfolios, these algorithms are claimed to have evolved to offer additional services such as tax-loss harvesting, rebalancing, and dividend reinvestment. There's also a growing number of robo advisors that also provide access to human advisors if you need help with more complicated financial questions or decisions.
The Role Robo Advisors Play in Investments
When it comes to investments, robo-advisors offer a number of benefits. Here are five features they provide that can simplify the investment process and help you achieve your financial goals:
1. Portfolio Rebalancing
Robo advisors claim to use algorithms to track current market conditions and automatically rebalance portfolios as needed to ensure optimal risk/return ratios. This could help to keep investments diversified and reduce the risk of over- or under-investing in certain securities. The downside, however, is that the algorithm may not be able to take advantage of market opportunities due to set parameters.
2. Tax Optimization
Robo advisors aim to help you optimise your taxes by automatically harvesting losses when markets are down and taking advantage of tax-deferred accounts such as IRAs and ISAs. This could save you a lot of money in the long run but may require more research than simply relying on the robo advisor.
3. Diversification
Robo advisors aim to help you diversify your portfolio by allocating funds across a range of assets, including stocks, bonds, and commodities. This could help to reduce the risk of investing in a single asset or sector, as well as spread out your investment gains.
4. Financial Planning
Robo advisors aim to help you achieve long-term financial goals such as retirement planning. Many providers have pension plans and other tools that allow you to easily set up retirement saving plans. The downside is that these plans are usually rigid and may not be suitable for everyone.
5. Risk Management
Robo advisors aim to help you manage risk by providing insights into how different investment options may perform in the future, as well as identifying potential risks associated with investing in certain asset classes. Many platforms also display the historical performance of their robo-advisors.
Despite the potential advantages of using robo-advisors, it's important to remember that they don’t guarantee success. As with any investment, there’s always a risk involved, and you should make sure you understand all of the associated risks before investing your money.
Benefits of Robo Advisors Over Traditional Investment Methods
Considering robo advisors are still a relatively new form of investment, it's understandable that you may be hesitant to make the switch. Before you rush to judgment, let's take a look at the pros and cons of robo-advisors.
Pros
- Lower costs – Robo advisors charge significantly lower fees than traditional financial advisors. Saving on these costs is particularly beneficial for people just starting out with investments or those on limited budgets. Some platforms have no account fees and may even offer a free trial period.
- Automation – Robo advisors are claimed to use algorithms to make decisions on behalf of the investor. This automation could make it easier to keep up with changing markets and diversify your investments. It could also free up time that you would have spent studying the markets or talking to a financial advisor.
- Accessibility – Robo advisors are available online, so you can access them anytime, from anywhere in the world. This is especially beneficial for people who may not have easy access to traditional financial advisors due to location or budget constraints.
- Tax efficiency – Robo advisors could help you manage your taxes more efficiently through tax-advantaged accounts like ISAs and pensions. They’re claimed to factor tax implications into their investment decisions in an attempt to make sure you're getting the most out of your investments.
- Customization – Robo advisors are said to allow you to customise your portfolio according to your personal financial goals, as opposed to a traditional advisor who may have their own ideas about what's best for you.
Cons
- Lack of human interaction – While robo advisors can potentially provide a wealth of information, they lack the personal touch that comes with working with a traditional financial advisor. With an automated system, you won't get as much dedicated one-on-one service or personal advice.
- Limited investment options – Some robo advisor platforms don’t offer access to certain types of investments or features, such as margin trading.
- Security concerns – Since robo advisors rely on technology, it's important to make sure that they utilise top-level encryption and other security measures before entrusting them with your money.
Differences Between Robo Advisors and Traditional Investments
Robo Advisors | Traditional Methods | |
|---|---|---|
Inflation | Some robo-advisors can be potentially programmed to factor in inflation while planning your finances and investments. | Traditional financial advisors can better mitigate the effects of inflation on your investments. As professionals, they can make more robust projections, react to market changes, and customise portfolios based on past economic data. |
Trading times | Robo advisors often trade at the same hours as regular investors. However, they can potentially make decisions whenever the market is open since the algorithms operate 24/7. | The trading hours of financial advisors may have limited availability due to human limitations like sleep and fatigue. |
Deposit amounts | Robo advisors typically have lower minimum deposit amounts, some being as low as £1. | Financial advisors may require higher minimum deposits to ensure they take on high-priority clients and maximise their efforts. |
Decision making | Robo advisors are said to have more objective decision-making. | Human advisors are more subjective but can provide more nuanced and customized services. |
Are robo advisors good for long-term investments?
Robo advisors could be useful to long-term investors as they’re said to offer low-cost, automated solutions that could help build and maintain a diversified portfolio. Though robo advisors may not be able to provide the personal touch of a financial advisor, they could be a good option for those who don't have the time or resources to actively manage their investments.
How to Sign Up for a Robo Advisor in the UK
If you're willing to take a step into the world of digital investing, signing up for a robo advisor could be a great place to start. Here are five steps you'll need to follow to get started:
Step 1: Consider your financial goals
Before you even think about signing up, think about your risk tolerance, whether you're saving for retirement or just want to grow your cash stash as quickly as possible.
Step 2: Choose an advisor
Consider factors like fees, customer service availability, minimum investment requirements, and any other features you might need – there are plenty of options to choose from!
Step 3: Create an account
Besides submitting some basic information, you'll likely need some documents like your government-issued ID, proof of address, and a recent bank statement. Your account should be approved shortly after they’re submitted.
Step 4: Fund your account
This is usually as simple as transferring money from one account into another. Some platforms allow you to set up direct debits for regular deposits, which can be a great way to keep your investment funds topped up.
Step 5: Start investing
Most platforms will provide you with a wide range of investments, from stocks and bonds to mutual funds and ETFs. You could also create your own customised portfolios depending on the platform you choose.
Trust and Security With Robo Advisors
When it comes to investing, trust and security are essential. Robo advisors are subject to similar FCA regulations and oversight as traditional advisors, meaning your data is just as secure when investing with any other financial professional.
Furthermore, most reputable robo-advisors are diligent in their security measures to protect client data, using advanced data encryption techniques to safeguard information. Other measures include two-factor authentication, the Financial Services Compensations Scheme protection, and biometric verification processes.
The credibility of the robo-advisor company is also important so it's best to look for those who have been around for a while and boast a good reputation in the financial industry.
What happens if a robo-advisor goes out of business?
A robo advisor is merely a provider of digital financial services, so if things go wrong and the company shuts down, your money will likely be safe with the custodian, which is a financial institution like a bank or broker-dealer that is responsible for safeguarding customer assets. This means that if a robo advisor goes out of business, the custodian will transfer your assets to another provider or return them to you.
More importantly, most companies now have FSCS protection which ensures your investments up to £85,000. So the reality is that if a robot advisor shuts down, you will likely be able to get your money back one way or another.
Common Fees & Charges
If you’re planning to trust a robo advisor with your investments, you should be aware of the fees you might be charged along the way. The good news is that most robo-advisor platforms come with lower fees than traditional advisors and brokerages. Here are some of them;
Management fees
Management fees are the most common type of charge you’ll encounter when dealing with a robo advisor. Usually charged annually for portfolio management, they can range from 0.10% to as much as 0.75%.
Account fees
Account fees can vary, but the most common are account maintenance and inactivity charges. The first are usually charged monthly for having an account open with a robo advisor, while the latter apply after a certain period if your account is not regularly monitored or traded.
ETF and fund charges
Most robo-advisors use ETFs or mutual funds as part of their investment strategy. These come with their own costs associated, including the buy/sell spread, annual management expenses, and other fees. The cost of these can range between 0.1% and 2%, depending on the fund or ETF chosen by your advisor.
Spreads and commissions
Robo advisors don’t usually charge a commission when you make a trade, but they may charge a spread instead. That is the difference between the buying and selling price of a security. Spreads usually range from 0.10% to 0.25%, although this can depend on the type of security being traded, as well as the market conditions at the time.
Be careful of fee thresholds on robo advisors!
Robo advisors have various fee thresholds depending on the account type you choose. If you have a smaller portfolio, be aware of any minimum thresholds your robo advisor may have in place. Knowing this can help you make sure you get the most out of your investment, as any fees you're unable to cover can potentially eat into your returns.
FAQs
Is it worth paying for a robo-advisor?
Which is better: a financial advisor or a robo-advisor?
How do I choose a robo advisor?
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