Investment Platform Reviews

Moneyfarm Review

Moneyfarm Review
Lily Bridgwood
Written by Lily Bridgwood

Welcome to the Moneyfarm review page on OFF3R. This page provides key information about the Moneyfarm investment process. The Moneyfarm review page has been developed as part of the Investment Platform review series on OFF3R.

Platform Overview

Founded 2011
Location London, UK & Italy
Regulatory Status Fully FCA Authorised

Summary

Moneyfarm can advise you on a risk profile that is suited to the type of investor you are, you can then invest quickly and get access to their Asset Allocation Team who provide full discretionary portfolio management thereafter, all for a fraction of the cost. Their team aims to ensure your portfolio stays in line with your risk profile.

Target Investor

Moneyfarm portfolios are aimed at both smaller and larger investors with the first £10,000 managed free, and no additional management fees after £1,000,000.

OFF3R’s Comment on Platform

Following their success in the Italian market, Moneyfarm expanded their robo-advisory service to the UK in 2011. Their £1 minimum investment for their ISA account is one of the lowest amongst competitors and makes for an attractive option for someone wishing to try out a robo-advisor for the first time. They have 6 risk options available which is slightly less than some of the competitors in the market.

Please visit Moneyfarm for more information on their investment opportunities. Your Capital is At Risk.


Products Available

General Investment Account

A low-cost, flexible investment account, tailor-made and managed by a team of experts.

Stocks & Shares ISA

The Moneyfarm Stocks & Shares ISA allows you to grow your medium-term savings tax-free, with the flexibility to withdraw or transfer funds whenever you want.


Investor Information

Type of investment? Globally diversified investments, across a range of low to higher risk assets that may be best suited to meet the criteria of your risk profile.
What is the minimum investment? £1
How much are the fees? Your first £10,000 will be managed for free. Above this amount fees range from 0.4% – 0.6% (per annum) on invested money. You also pay the built in fee in the ETFs Moneyfarm trade, these currently average 0.25% (per annum) on invested money.
Investment instruments? Exchange Traded Funds (ETFs)
How is the investment secured? Moneyfarm use Saxo Bank as their custodian with investments eligible for compensation up to the value of £50,000 should Moneyfarm be declared bankrupt.
Personalised investment portfolios? No – model portfolios only.
Is early exit possible? Yes, you can withdraw at anytime without fees.

Platform Registration and Investment Process

Please open the image gallery for a walkthrough of the Moneyfarm investment process. Each stage of the investment process has also been detailed below.

Stage 1 – Registration Process

There are three steps in the registration process with Moneyfarm. Firstly, you need to enter your email and password in order to create your account. You are then required to complete a basic contact information form, and finally you will undertake a short risk-survey in order to find out your risk tolerance and tailor your portfolios accordingly.

Stage 2 – Making an Investment

Once registered and verified you can login to your Moneyfarm account and ‘add funds’ via direct debit or bank transfer in order to make an investment. Once deposited, you can then ‘create a portfolio’, where you will be given an option of the Moneyfarm investment products. Once you have made your choice, you then decide upon how much you wish to invest initially, your monthly contribution amount, your estimated investment period and the level of risk you are willing to take. Based on this, Moneyfarm will allocate a you a diversified portfolio.

Stage 3 – Managing your Investment

Via ’your dashboard’ you are able to view your current portfolios and make adjustments accordingly. You will be able to view the ‘Asset allocation’, ‘Expected performance’ and ‘Actual performance’ of your portfolio. Whilst you cannot manually manage any of this as it is full—managed with Moneyfarm you are able to add and withdraw funds from your account.

Stage 4 – Exiting your Investment

You can exit your investment by logging into your Moneyfarm account, clicking into your portfolio and selecting ‘Actions’. You then click ‘Decrease investment’, and decide how much you would like to withdraw. Once you have clicked to confirm this amount a note will be sent to the Moneyfarm team. It can take up to five working days for this money to appear in your available cash.

Watch the following video for more information on the Moneyfarm investor journey:

Please visit OFF3R to compare some of the best robo-advisors in the market.


Risk Warning 

By making an investment, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. The tax treatment of an ISA depends on your individual circumstances and may be subject to change in the future. OFF3R Limited is an appointed representative of Kession Capital Limited (FRN:582160) which is authorised and regulated by the Financial Conduct Authority in the UK.

About the author

Lily Bridgwood

Lily Bridgwood

Lily is the Partnerships Associate at OFF3R. She has previous work experience in both the corporate and start-up environments. She joined the OFF3R team in October having recently graduated with First-Class Honours in International Business from the University of Edinburgh.