Beginner Investor in UK? Robo Advisors are best if you don’t want to personally deal with shares or stocks. Robo investing is basically described as automated financial planning.
Robo advisors can be described as technology companies that offer automated financial planning without human supervision. They provide financial advice, managed investments, and ready-made investment options. Their algorithms calculate your risk level and then present you with ready-made investment options.
Below you’ll find some of the top Robo advisors available in the UK.
Top Robo Advisors UK 2022
InvestEngine, a low-cost UK investment platform, offers various portfolios tailored to your needs and commission-free DIY investing. This will help you to build long-term wealth. You can invest in more than 250 exchange-traded funds (ETFs) from Vanguard, iShares, and other top brands.
InvestEngine allows you to invest in two different ways, depending on your level of investing knowledge. Beginners or people who want to build a portfolio from scratch can choose one of the Managed Portfolios.
The team of experts at InvestEngine will manage all aspects of your investment decisions. These portfolios are subject to a platform fee of 0.25% per annum. More confident investors can select from 250+ ETFs that do not require commission and create their portfolios.
There are no platform fees for the DIY Portfolio. All portfolios from InvestEngine are free of dealing fees, setup fees, and withdrawal fees. InvestEngine lets you invest through a Stocks & Shares ISA, Personal Account, or Business Account. Capital at risk.
Moneyfarm, a UK Robo-advisor, provides a personalized investment plan tailored to your risk preferences. It offers seven globally diversified portfolios and has been rated high-risk, including some ethical investments.
Moneyfarm’s team actively manages your investments so that you can rest assured you have a mix of hardworking assets from all over the globe. Moneyfarm’s investment advisors can provide personalized digital advice that is free and confidential.
You can also chat by phone, email, or visit your consultant in person. Moneyfarm offers a variety of products, including Stocks and Shares, ISA, and General Investment accounts. Personal Pension is also available. Moneyfarm has recently added the ESG investment style to its portfolios.
Plum Plus and Plum Pro subscriptions (from PS1 per month) allow you to choose from a range of funds to invest your money. Plum automatically calculates the amount you can afford and supports it for you. Your priorities will determine which investments you make.
You could invest in technology, emerging markets, or ethical companies. Plum offers Stocks and Shares, ISA and SIPP, and other money management tools.
Chip has recently launched an investment product that allows users to select from three funds: Adventurous, Cautious, and Balanced, depending on their risk appetite. BlackRock, the largest global investment manager, manages the funds.
The funds are considered passive, but the Index Allocation team of BlackRock monitors them daily. You can use Chip to get automatic investments and savings through the Round-Up feature. Also, your savings will be eligible for competitive interest rates.
Chip offers a tax-free, individual savings account (Stocks & Shares ISA), General Investment Accounts (GIA), and an Automatic Savings Account. Capital at risk.
Circa5000, a UK robot advisor, gives you access to ethical investments. The portfolios are made up of ETFs from companies that aim to generate social and environmentally responsible solutions. There are three types of portfolios available: People, Planet, and Planet & People.
Depending upon your risk preferences, you can choose from three risk levels: Balanced, Adventurous, and Cautious. Circa allows you to receive automatic investments through the Round-Up feature. You also have exclusive deals from many retailers, including Oddbox and Honest Mobile. Circa5000 offers tax-free individual savings accounts (Stocks & Shares ISA & Junior ISA) and taxable public investments accounts (GIAs). Capital at risk.
Compare Robo Advisors and Managed Stocks & Shares ISA.
Robo advisors can be an excellent option for beginners or people who don’t want to do the work of selecting stocks and shares. You can also use our investment fees comparison tool to compare funds and shares if you prefer to invest in individual shares, stocks, or funds.
Below is a table that compares annual stock and shares ISA charges for some of the UK’s most trusted Robo advisors and investment platforms.
If you click on the “PS100 Per Month” header, you will see the cheapest Robo adviser for regular investments of PS100. Click twice on the header “PS20,000 Lump Sum” to see the most expensive advisor for a lump-sum investment of PS20k.
Please note that the fund manager may add various charges to your investment when you use a Robo advisor. The Ongoing Charges Figure (OCF) is an excellent example of these charges.
OCF is the estimate of the cost of your investment that goes to the fund manager. This figure is independent of the platform fee or dealing fee. You can get an idea of how much your investment will cost, including transaction and OCF fees.
We used either a multi-asset or a ready-made portfolio with mid-risk in each instance.
These calculations are based upon the following scenarios:
- PS100 per month regular investment,
- PS1,000 per month stable investment,
- A lump sum of PS20,000 (a year’s ISA allowance),
- If you have ISAs from the past and want to transfer in, a lump sum of PS100,000.
We assume that you will make 12 deals per year for regular investments. Or one deal each month if you are making stable investments. Deas can be either buying or selling investments. Also known as a trade,
To indicate the cost of a Robo-advisor compared to others, we use green, amber, or red. The cheapest Robo advisers are colored green. The more expensive ones are red, and the rest are amber.
Remember that just because a robot advisor appears green doesn’t necessarily mean it is the best. Also, cheapness does not always equal quality. You may find that the most expensive Robo advisors offer more ethical investments or funds.
You can invest small amounts and pick the cheapest Robo adviser for that amount. However, as your investment pot grows, some more costly Robo advisors will become less expensive. Santander and Moneybox are two examples.
Best Robo Advisors UK 2022 – Frequently Asked Questions
What is a Robot Advisor?
Robo advisors can be described as technology companies that offer automated financial planning without human supervision. Their algorithms calculate your risk level and then present you with ready-made investment options based on that.
Robo-advisor services are offered by many established fintech startups and investment platforms. Robot advisors in the UK are sometimes called “Do-it-for me” investment platforms.
What is Robo-Investing?
Robo investing can be described as automated financial planning. This is an easy way to invest in hundreds, bonds, and funds from your smartphone. It’s also free of the need to pick individual stocks, shares, or other types.
What are the Drawbacks of Robo-investing?
- Some Robo-advisors can be pretty costly. However, it is possible to get a better deal if one goes directly to the investment companies they use.
- To use them, you will need a smartphone.
What are the Benefits of Robo-Investing?
- They are easy to use for most people.
- These apps allow you to invest right from your smartphone.
- A single portfolio could enable you to access hundreds of investments.
- Some offer sound financial advice.