Wealthify vs Moneyfarm: which is the best option for you?

3 min Read Published: 20 May 2024

Wealthify vs Moneyfarm

If you are looking for a good online investment platform to invest your money with, you may be weighing up Wealthify and Moneyfarm. If you are new to investing or have limited time to manage your wealth, a robo-adviser can be a good choice. In this article, we compare the key features of these two options to help you find the best one for you.

We also provide details of the offers our readers can enjoy with Moneyfarm*, with the potential for them to manage your money for free for the first 12 months (terms and conditions apply).

Wealthify vs Moneyfarm - which is better?

In the table below, we've outlined the key differences between Wealthify and Moneyfarm to help you make a decision.

Key features of Wealthify vs Moneyfarm

Wealthify Moneyfarm Fully Managed
Minimum investment £1 (£50 for SIPP) £500
Management Fees 0.6% flat fee

Additional underlying fund charges apply

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 apply

Products ISA, General Investment Account, Junior ISA and SIPP ISA, General Investment Account, Junior ISA and SIPP
Number of portfolios 5 7
Ethical portfolios 5 7
Other options N/A Thematic investing, Liquidity Plus (money market funds), Share investing
Customer reviews (Trustpilot) 4.0 4.1
Money to the Masses offer Wealthify has an offer where you pay no management fees for 12 months when you invest in a Stocks & Shares ISA, JISA, Pension or GIA. New customers only. Terms and conditions apply, capital at risk. Read our Wealthify review for more information No management fees for 12 months (terms and conditions apply)*

 

Wealthify vs Moneyfarm - minimum investment

If you are keen to try a robo-adviser but don't want to tie up too much money initially, Wealthify is a good option as it only requires a minimum investment of £1, or £50 for its SIPP. Moneyfarm, meanwhile, needs a minimum of £500 to open an account.

Wealthify vs Moneyfarm - fees

If you have a smaller amount invested, Wealthify, with its flat management fee of 0.6%, is likely to work out cheaper than Moneyfarm. If you have up to £10,000 invested with Moneyfarm you will pay 0.75%, with the platform only working out to be cheaper than its rival Wealthify for those with pots over £100,000. In both cases, you will have to pay the cost of the underlying investments in addition to the stated management fees.

Wealthify vs Moneyfarm - products

With Moneyfarm having recently launched a Junior ISA*, both platforms now have the same range of wrappers available. If you are specifically interested in a JISA, it may be worth checking out our round-up of the best JISAs in the UK, which includes Moneyfarm's new product.

Wealthify vs Moneyfarm - portfolios

While Wealthify has 5 risk-rated portfolios, ranging from Cautious through to Adventurous, Moneyfarm has a broader spectrum, with fully managed and 7 fixed allocation portfolios. With the asset allocation varying according to the investors' risk appetite, the Moneyfarm range has slightly more nuance and may be better suited to those who have a stronger opinion on how much exposure they want to riskier assets, specifically equities. Moneyfarm also has a broader range of alternative investing options with access to Thematic investing, share investing and a Liquidity Plus portfolio.

Wealthify vs Moneyfarm - ethical portfolios

As demand for ethical investments grows, both Wealthify and Moneyfarm have developed ethical portfolios that sit alongside their main ranges. As with the original portfolios they follow the same risk-rating system, but are exclusively populated with passive funds with a SRI or ESG focus. As such, Wealthify has 5 ethical portfolios to choose from, while Moneyfarm has 7 fully managed and 7 fixed allocation portfolios.

Wealthify vs Moneyfarm - performance

As each platform has a different number of portfolios available, it is difficult to draw direct comparisons across the ranges. However, for the purpose of achieving an overview of how they performed in 2023, the table below shows the returns of Wealthify's portfolios, alongside the nearest comparable portfolios from Moneyfarm.

Comparison of Wealthify and Moneyfarm returns 2023

Wealthify returns 2023 Moneyfarm returns 2023
Wealthify Cautious vs Moneyfarm Portfolio 2 4.70% 6.70%
Wealthify Tentative vs Moneyfarm Portfolio 3 6.20% 7.60%
Wealthify Confident vs Moneyfarm Portfolio 4 7.80% 9%
Wealthify Ambitious vs Moneyfarm Portfolio 5 9.40% 10.30%
Wealthify Adventurous vs Moneyfarm Portfolio 6 11.30% 11.50%

 

In terms of recent performance, Moneyfarm has slightly outperformed Wealthify across both the higher risk and lower risk portfolios available. There is a more drastic difference in performance when it pertains to the lower risk portfolios. We have provided a more detailed analysis of performance, going back three years, in our article "Which is the best performing stocks and shares ISA?". However, past performance isn't always a guide to future performance.

Summary: Wealthify vs Moneyfarm

If you are looking for the widest range of investment portfolios, as well as relatively strong performance over the past 3 years, Moneyfarm edges Wealthify in both categories. It also benefits from assigning every customer with an investment consultant, who can offer guidance and perhaps undertake an initial investment review.

However, if you are looking for the cheapest robo-adviser, Wealthify is more competitive than Moneyfarm for investments up to £10,000, matching its rival on investments up to £50,000.

 

 

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