MoneyFarm Review: A Digital Wealth Manager

MoneyFarm is a digital wealth manager that automatically invests your money in suitable portfolios according to your financial goal and risk profile. Generally, most of MoneyFarm customers are happy with MoneyFarm performance as well as MoneyFarm returns. Here’s what you need to know about MoneyFarm investment.

 

MoneyFarm Benefits

  • It has a low cost of investment as compared to MoneyFarm competitors.
  • Whereas other traditional advisors charge 1-3% fees, MoneyFarm charges 0.25%.
  • You can easily reach out for help via online means and through phone; thus, the long hours face to face meetings are not necessary.
  • The company waives the fees until the amount surpasses 10,000 pounds..
  • As an experienced investment advisor, you no longer have to go through the hassle of investment selection as the company has you covered.
  • The whole process is time-saving for both beginners and experienced parties.
  • By using technological algorithms, the platform ensures accuracy and efficiency. Therefore, the process saves time during investment and portfolio research.

MoneyFarm is not suitable for clients who prefer a more pro-active approach that requires you to monitor every step of the investment.

How MoneyFarm Works

MoneyFarm investment process is straightforward and simple, The process is as follows:

  • Create investor profile. MoneyFarm determines which portfolio is ideal for you from the series of questions that you answer during the sign-up process. If your goals change, your profile can be adjusted to reflect the changes.
  • Get matched with a portfolio. Choose MoneyFarm product such as MoneyFarm ISA and the investor profile you created is matched to one of seven diversified portfolios.
  • Active portfolio management. Once you have funded your portfolio, MoneyFarm starts managing your funds with market analysis, daily asset trading and performance tracking.

In case you are reluctant to utilize the services of a financial advisor or you don’t have the knowledge to choose your investments, MoneyFarm will come in handy. MoneyFarm robo-advisors give you ample opportunities and options to refine and kick-start your investing career.

 

 

What Products Does MoneyFarm Offer?

  • MoneyFarm Stocks and Shares ISA. Investing in this product allows you to have the advantage to invest tax-free. Furthermore, you can withdraw and transfer funds at any time you wish without paying any fees for the first 12 months. In case you have existing ISAs, you can also freely move into it.
  • The General Investment Account. This product works similarly to the Stocks and shares ISA. The only difference is that it is not tax-free and does not have the limits for the annual contribution. Therefore, all growth and income become taxable.
  • MoneyFarm Pension. In this product, you can invest while planning for your retirement. Hence, you receive tax-relief depending on the contributions that accumulate into the pension. As a result, you can earn up to 1000 pounds as a cash bonus. Also, MoneyFarm will help you transfer existing pensions into it if you so wish. The investment happens as a result of the suitable portfolio according to your appetite for risk and the financial goals. The date you plan to retire and also the amount of money you have are important factors to consider as well.

MoneyFarm minimum investment: You need at least £1,500 (transfer or new contribution), but as a starting point we would suggest £2,500 or more. We will always stick as close to your risk profile as possible, but the more we have to work with, the better we can diversify your portfolio. If you’re starting with under £5,000, it’s a good idea to set up a monthly Direct Debit of at least £100 to help you reach your goals as quickly as possible.

What is the MoneyFarm Sign-up Process?

MoneyFarm’s main idea is to simplify the whole investment process. The sign-up process is no different, as that is where it all begins. More to the typical personal details and email that an online sign-up requires, you will also answer a form that has a series of questions. These questions are critical since they determine your financial goal and risk appetite, which is useful when choosing a suitable portfolio for you. You can sign up on MoneyFarm website or MoneyFarm app for Android and iOS.

MoneyFarm questions dealing with risk are not only based on how financially bold you are but also your financial situation as well as your investment knowledge. A high appetite for risk will contradict low financial security, and thus, a portfolio with high-risk features will be unsuitable. The questions are interesting, knowledgeable and fun. In fact, most financial advisors use these criteria to determine your suitability for a financial product.

How to Add Money to MoneyFarm Account

To fund your MoneyFarm ISA or General Investment Account, you can use a bank transfer. If you’re setting up a monthly contribution you can do this by direct debit. Cick on ‘Add funds’, select the date you would like to fund your account and ‘Direct Debit’ as the Payment Method. If you want to set up a standing order with your bank, you need to call MoneyFarm investment consultants team on 0800 433 4574.

One time contributions can be made via bank transfer or Direct Debit. If you select Direct Debit you don’t have to do anything, MoneyFarm will debit your account with the amount you select. If you select Bank Transfer you’ll need to manually transfer the funds to MoneyFarm using the reference code and bank details provided during the setup.

To add funds to your Moneyfarm Pension, you must use direct debit as your payment method. Bank transfers at not supported for MoneyFarm Pension.

MoneyFarm Fees

Opening MoneyFarm account is free of charge. In addition, MoneyFarm has no commission, custodian charges, subscription or trading fees. If you invest £20,000, MoneyFarm fees will be as shown in the table below.

Annual % feeMonthly cost
Costs and charges associated with the provision of investment services
MoneyFarm management fees0.68%£11.25
Costs and charges related to financial instruments
Underlying fund fee0.20%£3.33
Market spreadup to 0.09%£1.50
Total0.97%£16.08

Use MoneyFarm calculator to know how much money you have to pay in fees based on the amount of money you have invested.

What Makes MoneyFarm Different From Other Financial Advisors?

MoneyFarm uses a diversification method that selects a wide range of asset classes, currency exposures and geographies. These factors are crucial in minimizing risk and maximizing growth. Furthermore, the team ensures the costs are low while achieving high quality at the same time. The company stays on top of the market by combining tactical adjustments with strategic allocations. Thus they can identify market fluctuations as well as plan for the future.

MoneyFarm performance
MoneyFarm performance (in blue) v. competitors

MoneyFarm withdraw: You can make a MoneyFarm withdraw at any time of day or night using MoneyFarm app or MoneyFarm website. Your portfolio is tied to your financial goals, so it’s always best to contact MoneyFarm if you would like to move a large amount of money.

MoneyFarm Supported Countries

MoneyFarm accepts clients from the UK and Italy. However, if you are resident outside of these two countries, the company may be able to help you. You need to contact their investment adviser team to see what they can do for you.

MoneyFarm USA: Due to the comprehensive reporting requirements imposed by the Internal Revenue Service (IRS) through the Foreign Account Tax Compliance Act (FATCA), Moneyfarm has made the decision to not accept further US persons as customers.

MoneyFarm Germany: At the end of 2020, it was reported that MoneyFarm will exit the German market. Moneyfarm entered the German market in June 2019. Its clients in Germany will be handed to Fidelity as an alternative offer.

Is MoneyFarm Safe?

MoneyFarm is authorised and regulated by the Financial Conduct Authority in the UK. The company segregates client funds and assets. Clients’ money and investments are held separately from Moneyfarm’s own bank account. The platform holds money and investments using regulated financial institutions such as Barclays and Saxo Capital Markets UK Ltd. Moreover, MoneyFarm is covered by the Financial Services Compensation Scheme (FSCS), which means up to £85,000 of clients’ investments are covered by the UK deposit guarantee scheme.

MoneyFarm Alternative

There are other companies that offer more or less similar investment services. You need to do a thorough research to know which one meets your financial needs. Some of MoneyFarm alternatives are:

Final Thoughts on MoneyFarm Review

If you are in search of a simplistic and hassle-free investment method in the stock and shares market, MoneyFarm is your ideal company. More so, you get a tailor-made portfolio that is suitable for your financial requirements and risk profile all through. The portfolio brings you an easy way to invest with low cost, and thus, your returns are fully maximized in both long-term and short-term investments. With MoneyFarm Trustpilot review score of 4.6 out of 5, the company boasts of excellent ratings with satisfied clients.

More Information

 

Crispus is a finance professional with more than a decade experience in the industry. Over the years, Crispus has written in-depth articles on leading platforms like CCN, Marketwatch, and Seeking Alpha. He also runs a Forex education and managed account company called WestEndFx.