Good Money Guide Home > Robo Advisor Comparison

Robo Advisors in this comparison offer trading and investing accounts with robotic assistants to give you advice and insights into market movements and opportunities. They can be cheaper than managed accounts as they don't need an account manager. Compare Robo Advisor services to get the best account.

Robo AdvisorHow can you invest?What can you invest in?How much does it cost?More Info

Nutmeg

General: Yes
SIPP: No
ISA: Yes
Lifetime ISA: Yes
Junior ISA: Yes
Pension: Yes
Standard: Yes
Managed: Yes
Ethical: Yes
Minimum: £100
Fixed: 0.45%
Managed: 0.75%
Ethical: 0.75%
Exit Fee: £0
See Offer

Wealthify

General: Yes
SIPP: No
ISA: Yes
Lifetime ISA: No
Junior ISA: Yes
Pension: Yes
Standard: Yes
Managed: No
Ethical: Yes
Minimum: £1
Fixed: 0.6%
Managed: ?
Ethical: 0.6%
Exit Fee: £0
See Offer

General: Yes
SIPP: No
ISA: Yes
Lifetime ISA: Yes
Junior ISA: Yes
Pension: Yes
Standard: Yes
Managed: No
Ethical: Yes
Minimum: £1
Fixed: 0.45%
Managed: ?
Ethical: 0.45%
Exit Fee: £0
See Offer

Scalable Capital

General: No
SIPP: Yes
ISA: Yes
Lifetime ISA: No
Junior ISA: No
Pension: No
Standard: Yes
Managed: No
Ethical: No
Minimum: £10,000
Fixed: 0.75%
Managed: ?
Ethical: ?
Exit Fee: £0
See Offer

Moneyfarm

General: Yes
SIPP: No
ISA: Yes
Lifetime ISA: No
Junior ISA: No
Pension: Yes
Standard: Yes
Managed: No
Ethical: No
Minimum: £5,000
Fixed: 0.75%
Managed: ?
Ethical: ?
Exit Fee: 0.75%
See Offer

Wealthsimple

General: Yes
SIPP: No
ISA: Yes
Lifetime ISA: No
Junior ISA: Yes
Pension: Yes
Standard: Yes
Managed: No
Ethical: No
Minimum: £5,000
Fixed: 0.7%
Managed: 0.5%
Ethical: ?
Exit Fee: £0
See Offer
Your capital is at risk

What is a Robo advisor?

A Robo Adviser is an automated financial adviser, a piece of intelligent software that is capable of making decisions based on the information and goals that clients present to it.

The Robo Adviser works in the same way that a human IFA or broker does, but rather than using their training and experience to guide the end clients, the software uses a series of rule-based algorithms to make investment recommendations and decisions.

Robo Advisers have been around since 2008. However, advances in AI, machine learning, and natural language processing mean that they are a more practical proposition in 2020 than they were 12 years ago.

What can you invest in with a robo advisor?

The product range that you can invest in using a Robo Adviser should be the same as if you were dealing with a human and the investment will be structured to meet your needs and suitability requirements in the same way.

When you invest using a robot you are allowing the robot to make the stock selection and asset allocation decisions and to build your portfolio based on factors such as your risk appetite, age, and desired outcomes.

Robo advisor Scalable Capital builds its client portfolios by allocating to low-cost ETFs, whilst rival Nutmeg offers fixed allocations to a range of funds based on risk appetite, which are then regularly rebalanced based on the price performance of the underlying assets.

How much does it cost to invest with a robo advisor?

Costs vary as they do with human advisors and factors such as the size of your investment and the style of funds invested in will all play a part in determining the cost. That said if you think of a ballpark figure either side of  +1% per annum you will in the right neighbourhood.

How much do you need to invest in a Robo Advisor?

The minimum investment will vary between providers but there are products out there that allow investments from as little as £1000.00 and one or two that have no minimums at all. Though you will need some sort of critical mass to get the best out of the service.

What's the difference between a Robo Advisor and a wealth manager or IFA?

The obvious difference is that Robo Advisors are not human however they are an alternative or extension to the services provided by IFA’s and wealth managers rather than direct competitors to them. Though that might change in the future as automated systems become more intelligent and autonomous.Pros and cons of a Robo advisor

Pros of robo advisors 👍

Cons of robo advisors 👎

Lower feesNo human interaction
24/7 coverageDriven and bound by algos not experience and know-how
Quicker decision makingOnly as good as its programming or training sets

Who are Robo Advisors appropriate for?

Robo advisors are potentially appropriate for everyone who is looking to save and invest though ultimately they will probably find favor with millennial and gen Z investors who are more comfortable with the use of technology in finance.

Are you guaranteed to make money with a Robo Advisor?

No there are no guarantees that the robot will be any more or any less successful than its human counterparts. AI-based and Algorithmic strategies employed by large hedge funds have had a chequered performance history so lat least for now there is not an obvious secret recipe for success just because you are using software rather than human beings to invest through.

How do Robo Advisors make money?

In the same way that more traditional advisors and fund managers do. That is through their fee structure and the volume of money under management. Of course, robots don’t demand a salary or bonus don’t take holidays and can scale very quickly as AUM or assets under management, grow. Thus providing the fund manager or advisory business deploying the robot with clear economies of scale.

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