Wealthify vs Nutmeg vs Moneyfarm: The best robo-advice platforms compared

3 min Read Published: 23 Jun 2022

Wealthify vs Nutmeg vs MoneyfarmIn this article we compare online investment platforms Wealthify, Nutmeg and Moneyfarm, helping you choose which is the best one for you to invest with.

We weigh up the features of each of the robo-advisers, including performance and cost, as well as providing you with details of reader offers that could save you money by giving you 12 months' fee-free management with Nutmeg and Moneyfarm*.

Wealthify vs Nutmeg vs Moneyfarm - which is best?

Wealthify Nutmeg Fully Managed Moneyfarm
Minimum investment £1 (£50 for SIPP) £500 (£100 for JISA and LISA) £500
Management fees 0.6% flat fee

Additional underlying fund charges

Up to £100,000 - 0.75%

Over £100,000 - 0.35%

Additional underlying fund charges

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

Products ISA, General Investment Account (GIA), Junior ISA and SIPP ISA, General Investment Account, Junior ISA, Lifetime ISA and SIPP ISA, General Investment Account, Junior ISA, SIPP
Number of portfolios 5 10 7
Ethical portfolios 5 10 7
MttM offers N/A No management fees for 12 months (terms and conditions apply) No management fees for 12 months (terms and conditions apply)*

 

Wealthify vs Nutmeg vs Moneyfarm - minimum investment

For those looking to test the water with a robo-adviser without investing a great deal at the outset, Wealthify offers the opportunity to open an account for as little as £1, or £50 for its SIPP. By contrast, both Nutmeg and Moneyfarm require a minimum investment of £500, although this is reduced to £100 for JISAs and LISAs from Nutmeg.

Wealthify vs Nutmeg vs Moneyfarm - fees

While Wealthify has a flat management fee of 0.6% regardless of how much you have invested, Nutmeg has a sliding scale of fees, while Moneyfarm has staged fees, with the full amount invested subject to the same level of fees once you pass certain thresholds.

Bear in mind that with all three propositions you have to pay the costs of the underlying investments on top of the stated management fees. These additional charges typically range from 0.16% to 0.3% per annum.

Wealthify vs Nutmeg vs Moneyfarm - products

As you would expect, all three robo-advisers offer stocks and shares ISAs, GIAs and Junior ISAs as well as SIPPs. In addition, Nutmeg has a Lifetime ISA. There is also more information on the criteria and characteristics of a LISA in our article "Lifetime ISAs explained".

Wealthify vs Nutmeg vs Moneyfarm - portfolios

If you are looking for the greatest amount of choice, Nutmeg far exceeds both Wealthify and Moneyfarm. In its 'Fully Managed' range it has 10 risk-rated portfolios, compared with 7 for Moneyfarm and 5 for Wealthify. However, in addition, it also has different options for investors, with lower-cost Fixed Allocation portfolios and a more finely tuned Smart Alpha proposition.

Wealthify vs Nutmeg vs Moneyfarm - ethical portfolios

All three platforms cater for individuals who are looking to invest ethically. They all use passive investment vehicles to populate ethical portfolios that mirror the main ranges in their risk-rated structure. As such, Nutmeg has 10 ethical portfolios, Moneyfarm has 7 and Wealthify has 5.

Wealthify vs Nutmeg vs Moneyfarm - performance

Performance is obviously a key factor when choosing which robo-adviser to go for. However, it can be tricky to compare the relative performance of each one because they have different numbers of portfolios and length of track record. Overall, it is fair to say that over the past two years Nutmeg and Moneyfarm have generally outperformed Wealthify in all but the Cautious portfolio category. Indeed, Nutmeg's higher weighting to equities has meant it has also outperformed Moneyfarm in years when the stock market has performed strongly, lagging slightly in more risk-off conditions. In terms of ethical performance, Wealthify's ethical portfolios have performed particularly well with its ambitious SRI portfolio achieving an annualised return of 13% over the last three years.

For more in depth analysis of the relative performance of robo-advisers, read our article "Which is the best performing stocks and shares ISA?"

Summary: Wealthify vs Nutmeg vs Moneyfarm

Whether you choose to invest via Wealthify, Nutmeg or Moneyfarm - or a combination of all three - will largely depend on your priorities. If you are looking for the cheapest option, Wealthify works out the most cost-effective for investments under £10,000, while Moneyfarm occupies the sweet spot between £10,001-£100,000 and Nutmeg matches Moneyfarm for investments over that mark.

If, however, you are seeking investment choice, Nutmeg has the largest number of portfolios, as well as Fixed Allocation and Smart Alpha options within its stable. Meanwhile, if you are looking for extra support, the inclusion of an investment consultant with Moneyfarm makes it hard to beat. In terms of ethical portfolio performance, Wealthify has performed particularly well over the last 3 years (see the previous section).

There is more information on all three platforms in our full reviews of Wealthify, Nutmeg and Moneyfarm.

 

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