Which Robo Advisor is Best for Me?

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Robo advisors are computer-automated investment platforms. They help people make investments, even if they don’t have a lot of money to manage. The investments recommended are usually based on your risk tolerance, age, emergency fund, and even retirement goals. Many people are turning to robo advisors because of their low costs. Also, the services are automated, meaning all the information you get will be objective.

  1. Moneyfarm

Moneyfarm was started back in 2011, and it has since grown to become one of the biggest wealth management service on the internet. Their investment services are divided into three products: Stocks and Shares ISA, General Investment Account, and Pension. The Stocks and Shares ISA allows you to make investments without getting taxed. The General Investment Account does not give you these tax benefits, but it also doesn’t have contribution limits. If you want to invest for retirement, you should use their Pension products. You can choose to consolidate all your pension investments to Moneyfarm for easier tracking. Using their pension services will give you significant tax benefits. It is important to note that all the services offered by Moneyfarm are regulated by the Financial Conduct Authority in the UK.

  1. Wealthsimple

Wealthsimple is another highly popular robo advisor. It was founded in 2014, but it was officially launched in the UK in 2017. This service allows you to invest as little as 1 Euro, and the fees are very low. Unlike other robo advisors, Wealthsimple does not stop you from investing if you are not a good candidate for their services. It will simply give you a warning, after which you can proceed to select your preferred product. Based on your answers, the service will recommend suitable investments for you. With other robo advisors, you may only be able to avoid getting screened out by filling in false information. As many previous users have noted, this robo advisor recommends highly diversified portfolios. If you follow their advice, your portfolio will include assets from different parts of the world. This is one aspect that sets it aside from other automated wealth management services.

  1. Nutmeg

Nutmeg is an affordable option for people who intend to invest their money in ETFs and tracker funds. This robo advisor has three financial products: Fully Managed Portfolios, Fixed Allocation Portfolios, and the Pension Product. The Fully Managed Portfolios service allows investors to choose from 10 portfolios, and each has a mix of different assets. The Fixed Allocation Portfolios also allows you to make similar investments, but the products don’t change dynamically based on the prevailing market conditions. For this reason, the Fixed Allocation Portfolios are very cheap. Their retirement investments will give you an extra 25% in government top-ups, but this will be subject to taxes. A notable advantage of this robo advisor is the low and clear fees. You will not have to worry about any hidden fees.

Conclusion

Computer-automated wealth management services allow you to invest low amounts of money while paying next to nothing in investment fees. Moneyfarm, Nutmeg, and Wealthsimple are three of the best robo advisors in the UK. You should consider using them to manage your portfolio.