\n Your capital is at risk. <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n\n \n
What is a UK Robo Advisor?<\/h2>\n Not to be confused by a trading robot<\/em>, robo advisors allow you to invest in the financial markets in a simple, burden-free, and passive manner. The main concept with robo advisors is that the platform in question will manage your investments for you.<\/p>\nAll you need to do is go through the initial setup process \u2013 which usually requires you to answer some questions about your financial goals. In particular, this centers on how much risk you feel comfortable taking on your long-term investment journey.<\/p>\n
Once you have completed the questionnaire, UK robo advisors will then build you a ready-made portfolio. In most cases, the robo advisor platform will focus exclusively on ETFs and investment funds. These financial products typically have dozens, if not hundreds of assets in their portfolio \u2013 which means you can easily diversify.<\/p>\n
Most robo advisor portfolios will assign you with multiple ETFs and investment funds, so you are able to invest in a risk-averse and balanced manner. And of course, there is no requirement for you to manually add or remove assets to your portfolio. This is because the robo advisors in the UK will automatically rebalance your investments.<\/p>\n
To recap, the main attraction of UK robo advisors are as follows:<\/p>\n
\nRobo advisors are backed by algorithms that will automatically rebalance your portfolio<\/li>\n The robo advisor platform cannot give you financial advice, but is more aligned with wealth management<\/li>\n Your investment portfolio will also be monitored by experienced wealth managers and in-house analysts<\/li>\n Asset allocation usually focuses on ETFs to ensure you are well diversified<\/li>\n Some robo advisor investment management portfolios are stocks and shares ISA eligible<\/li>\n<\/ul>\nWhy Use a Robo Advisor UK?<\/h2>\n While some UK investors like the \u2018thrill\u2019 of picking and choosing stocks on a do-it-yourself basis, this can be an intimidating process for newbies. As such, many will subsequently turn to UK robo advisor platforms in the market.<\/p>\n
If you\u2019re still not sure if a robo advice platform is right for you and your financial goals, check out some of the reasons why so many are turning to this innovative investment vehicle.<\/p>\n
Automated Trading<\/h3>\n It goes without saying that the main roadblock facing inexperienced investors is a lack of financial knowledge. After all,\u00a0 in order to make financial returns from the investment scene, you need to take on an element of risk.<\/p>\n
The good news is that the robo advisors in the UK take full control over your investment journey.<\/p>\n
This means that you will not be required to choose which stocks or ETFs should be added to your portfolio.<\/p>\n
Potential Passive Source of Income<\/h3>\n When you take a do-it-yourself approach to investments, you need to dedicate a reasonable amount of time to research. This is because you are in full control of which assets you buy and sell \u2013 so you need to be kept abreast of what is happening in the financial markets.<\/p>\n
Even long-term \u2018buy and hold\u2019 investors need to keep tabs on key market developments, as just one negative news story could have a major impact on the value of the stock in question.<\/p>\n
Crucially, the need to actively perform research is completely allocated when you invest in robo advisors \u2013 potentially paving the way for a passive source of income, although bear in mind all investing comes with risks and there\u2019s no guarantee you\u2019l make money with a robo advisor.\u00a0 In fact, once you make the initial investment into your chosen portfolio, there is nothing more for you to do until you decide to cash out.<\/p>\n
Robo Advisors Regularly Rebalance Your Portfolio<\/h3>\n Leading on from the section above on passive investing, it is also important to note that UK robo advisors will automatically rebalance your portfolio.<\/p>\n
In simple terms, this means that the provider will add or remove financial instruments on a regular basis \u2013 subsequently ensuring that the portfolio still mirrors your stated financial goals and appetite for risk.<\/p>\n
Once again, this means that you can avoid the need to spend time worrying about the health of the wider economy, as the robo advisor minors this on your behalf.<\/p>\n
Robo Advisor Fees Comparison<\/h2>\n All robo advisor investment platforms are in the business of making money. As such, there are several fees that you should be aware of before taking the plunge.<\/p>\n
This includes:<\/p>\n
\nPlatform Fee<\/strong>: This is the fee that you pay to the provider for utilizing its robo advisor services. This is an annual percentage fee that is calculated against your total investment balance.<\/li>\nFund Fee<\/strong>: The vast majority of UK robo advisors platforms will put your money into ETFs (exchange-traded funds) and investment funds. In turn, the respective provider will charge an annual expense ratio, which is subsequently passed on to you.<\/li>\nTransaction Fees: <\/strong>UK robo advisors allow you to deposit and withdraw funds free of charge. However, we have come across several providers that charge transaction fees, so be sure to check this out.<\/li>\n<\/ul>\nIf one of the main priorities when choosing a robo advisor is fees and commissions, check out the comparison table below. This outlines the main fees that you will pay with the five robo advisor providers that we discussed earlier in this guide.<\/p>\n
\u00a0<\/p>\n
\n\n \n\nRobo Advisor UK<\/strong><\/td>\nPlatform Fee From<\/strong><\/td>\nFund Fee<\/strong><\/td>\nMinimum Deposit<\/strong><\/td>\n<\/tr>\n\nNutmeg<\/td>\n 0.75%<\/td>\n Built into platform fee<\/td>\n \u00a35,000 lump sum or \u00a3500 + direct debit<\/td>\n<\/tr>\n \nMoneyFarm<\/td>\n 0.75%<\/td>\n Built into platform fee<\/td>\n \u00a35,000 lump sum or \u00a31,500 + direct debit<\/td>\n<\/tr>\n \nWealthify<\/td>\n 0.60%<\/td>\n 0.22% (average)<\/td>\n \u00a30<\/td>\n<\/tr>\n \nMoneybox<\/td>\n 0.45% + \u00a31 per month<\/td>\n 0.12% \u2013 0.30%<\/td>\n \u00a31<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\u00a0<\/p>\n
Fees can change at robo advisor platforms at a moment\u2019s notice, so be sure to check this yourself before opening an account.<\/p>\n
How to Choose the Best Robo Advisor for You<\/h2>\n This guide has reviewed five investment robo advisors UK currently in the market. However, you might come across a platform that you like the look of that we haven\u2019t covered on this page. If this is the case, you are advised to perform lots of research on the provider in question before taking the plunge.<\/p>\n
To help you along the way, below you will find the most important questions that you need to ask of a UK robo advisor platform.<\/p>\n
Minimum Investment<\/h3>\n The first metric that you should explore is that of the minimum investment amount. After all, there is no point in checking things like fees and portfolio diversity if the account minimum is too high for your investment budget.<\/p>\n
FCA Regulation<\/h3>\n It is also important that your chosen UK robo advisor is regulated by the FCA. Your funds should also be covered by the FSCS \u2013 which protects your capital up to the first \u00a385,000 should the platform go out of business.<\/p>\n
Fees<\/h3>\n Once again, all UK robo advisors charge a fee of some sort. This can vary widely so do check this out before signing up. For example, Nutmeg and MoneyFarm both charge 0.75% per year.<\/p>\n
Payments<\/h3>\n Some providers only allow you to deposit and withdraw funds with a UK bank transfer. This means that you might need to wait a few days for the funds to arrive. With that said, robo advisors UK will also support debit\/credit cards and e-wallets \u2013 which are usually processed instantly.<\/p>\n
User Experience<\/h3>\n If you are looking to sign up with a robo advisor because you have little to no experience of the online investment scene, then you need to make sure that the provider offers a seamless user experience. This should include the registration and deposit process, and of course, getting your robo advisor portfolio set up.<\/p>\n
Although past performance is never a sure-fire indicator of future success, this is still a crucial metric to explore when choosing a robo advisor. This is because the UK robo advisors will clearly display the average returns that their portfolios have made since their inception.<\/p>\n
The Verdict<\/h2>\n In summary,UK robo advisors offer many benefits that you won\u2019t find at a traditional DIY brokerage site. At the forefront of this is being able to invest passively, and there is no requirement for you to pick and choose which assets to add to your portfolio. On the country, this role is reserved for your chosen robo advisor provider.<\/p>\n
If you\u2019re considering using a robo advisor, remember to carefully research the platform and remember there\u2019s no guarantee you\u2019ll make money.<\/p>\n
FAQs<\/h2>\n <\/time><\/time>
![\"Nutmeg\"\/](\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2019\/12\/images.png\"\n)
\n <\/div>\n <\/div>\n <\/div>\n \n\n\n![\"MoneyFarm](\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/03\/moneyfarm-1024x536-1.png\")
\n <\/div>\n <\/div>\n <\/div>\n ![\"Wealthify](\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/04\/Wealthify-Logo.png\"){kind=logo}
\n <\/div>\n <\/div>\n <\/div>\n ![\"\"](\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2021\/01\/Screenshot-2021-01-22-at-10.33.31.png\")
\n <\/div>\n <\/div>\n <\/div>\n ![\"\"](\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2021\/01\/b5cbc0a7b02caf9038d520d6dc20bcfe.jpg\")
<\/p>\n![\"robo](\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2021\/01\/Free-Online-Course-on-Introduction-to-Investments-1024x597-1.png\")
<\/p>\n