Moneybox vs Moneyfarm: Which should you invest with?

6 min Read Published: 10 May 2022

Moneybox vs MoneyfarmDeciding which is the best investment platform to invest your money with is not always easy. Should you consider an investment app or an online robo-adviser? In this article we look at the key features of Moneybox and Moneyfarm to help you work out which is the better option for you.

In addition, we also show you how you can save money with Moneyfarm* with our reader offer (terms and conditions apply).

Moneybox vs Moneyfarm - which is better?

Moneybox Moneyfarm
Minimum investment £1 £500
Management Fees £1 monthly subscription (waived for first 3 months)

0.45% platform fee

(No monthly subscription for SIPP, 0.45% platform fee up to £100,000, 0.15% over £100,000)

Up to £10,000 - 0.75%

£10,001 to £20,000 - 0.70%

£20,001 to £50,000 - 0.65%

£50,001 to £100,000 - 0.60%

£100,001 to £250,000 - 0.45%

£250,001 to £500,000 - 0.40%

Over £500,000 - 0.35%

The fee you pay is based on the total value of your portfolio and so if you invest £75,000 you will pay a total fee of 0.60%

Additional underlying fund charges

Underlying investment charges (on average) up to 0.58% 0.29% (0.31% on ethical portfolios)
Products Simple saver and notice accounts

Cash Lifetime ISA

ISA, LISA, GIA and SIPP

ISA, GIA, Junior ISA, SIPP
Number of portfolios 3 7
Ethical portfolios 3 7
Money to the Masses offer n/a No management fees for 12 months (terms and conditions apply)*

Moneybox vs Moneyfarm - minimum investment

While Moneybox doesn't have a minimum investment other than its monthly £1 subscription fee, which is waived in the first 3 months, Moneyfarm requires a minimum of £500 to open one of its accounts. For Moneybox's SIPP, there is no monthly subscription or minimum investment required.

Moneybox vs Moneyfarm - fees

Moneybox combines a monthly subscription fee (free for the first three months) with a platform fee of 0.45%. Moneyfarm, meanwhile, has a sliding scale of fees, ranging from 0.75% for investments up to £10,000 through to 0.35% for those investing over £100,000. See the above table for the full breakdown. The difficulty with comparing the two is the impact the £1 monthly subscription has on the overall cost of Moneybox, particularly for those with smaller investment pots. Indeed, for those investing less than, say, £150-£180 per month, the £1 fee can easily begin to wipe out any potential returns.

There is no subscription charge for Moneybox's SIPP and the platform fee is 0.45% up to £100,000 and 0.15% for amounts over £100,000.

Moneybox vs Moneyfarm - products

As a platform with both savings and investing products, Moneybox has a more comprehensive range than Moneyfarm, with 5 savings accounts, including a cash Lifetime ISA, as well as a stocks and shares ISA, GIA, LISA and SIPP. Moneyfarm has a more modest offering, with an ISA, GIA, Junior ISA and SIPP.

Moneybox vs Moneyfarm - portfolios

While Moneybox has greater product choice than Moneyfarm, it has a more pared-back range of portfolios, with 3 risk-rated options: Cautious, Balanced and Adventurous. It does, however, have the option for investors to create their own portfolios from a range of funds, which may be attractive for those with some prior investing experience. By contrast, Moneyfarm has 7 risk-rated portfolios in its range.

Moneybox vs Moneyfarm - ethical portfolios

As more and more people look for ethical options when choosing where to invest their money, it is unsurprising that both Moneybox and Moneyfarm have ethical portfolios. They work in much the same way as their main ranges, with a risk-rated structure, but invest wholly in passive vehicles that invest from a SRI and/or ESG starting point.

Moneybox vs Moneyfarm - performance

Comparison of Moneybox and Moneyfarm returns in 2021

Moneybox Moneyfarm
Moneybox Cautious vs Moneyfarm Portfolio 2 +5% +2.3%
Moneybox Balanced vs Moneyfarm Portfolio 4 +18.3% +8.5%
Moneybox Adventurous vs Moneyfarm Portfolio 7 +22.7% +16.4%

Both Moneybox and Moneyfarm performed well overall in 2021, although Moneybox outperformed on a like-for-like basis. It continues a trend for good returns from both of the platforms although, as ever, past performance isn't a guarantee of future performance.

Summary: Moneybox vs Moneyfarm

If you are attracted by the extra features offered by Moneybox, specifically the round-up feature that can help incrementally boost the amount you invest, as well as being comfortable with an app-only interface, it represents a good option. However, Moneyfarm may appeal more to those who value support in their investment journey as it offers the services of an investment consultant who can help you manage your portfolio over time. You can find out more about the role of the investment consultant by reading our full Moneyfarm review.

 

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