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Compare Robo Advisors

Compare Robo Advisors

 

Until very recently would be investors had a choice – pay for advice from a financial advisor or become a DIY investor and manage their own investments.

However well intentioned, the government’s 2012 Retail Distribution Review resulted in very large numbers of people being either unwilling to pay for financial advice or denied access to it.

Now the financial technology – fintech – revolution is providing another solution for those wrestling with tuition fees, spiralling housing costs and retirement planning – digital wealth management, or robo advisors.

In the States the ‘401k’ conversation has graced many a dinner table, but in the UK we are really only just getting to grips with pension freedoms in a post-final salary scheme world, just when investment returns are at historically low levels.

DIY investing requires some effort and retail investors need to work really hard to remain dispassionate in their decisions in order to avoid the ‘buy high, sell low’ trap.

Now, with the blessing of the regulator, a new generation of automated investment services has arrived, pushing down the cost of advice and helping individuals with goal setting and asset allocation.

One size does not fit all when it comes to financial advice; robo advisors generally fulfill the needs of most beginner investors and investors with an uncomplicated financial portfolio.

Suitability of a particular platform may depend upon your net worth and the complexity of your investments, and may be used alongside a DIY strategy.

robo-advice

New services coming on stream often differ in their underlying investments, their asset allocation model and their route to market, but so far as is possible, Muckle will deliver and maintain an objective comparison to enable users to find the right platform for their individual requirements.

The first generation – dubbed robo-advice 1.0 – platforms vary in terms of their level of automation and sophistication; some considerations for would be investors are:

 

  • Minimum Deposit– Some firms you can start out with nothing and others require sizable amounts to start with.
  • Annual Fees– Be aware of hidden costs and ETF management charges.
  • Asset Allocation– Asset allocation can vary based upon your age, and the way you answer their risk assessment questions.
  • Account Type Support– Do they offer general investment, ISA and SIPP accounts?
  • Automation– Some services are 100% automated others deliver human assisted advice.
  • Goals – Can you set more than one end-goal – eg, tuition fees and retirement?

 

 

 Management Fee Fund Charges Account
type
Account
minimum
Investment managementInvestment instrument
RebalancingHuman
assistance
Risk
management
AccessMore information
0.7% asset management fee (min £70 GIA/ISA min £40 JISA)0.11% - 0.16% fund management feegeneral investment
ISA
Junior ISA
£10,000 GIA/ISA
£1,000 lump sum or £100 pm JISA
investment managerETFs
funds
monthlyyesclient selects one of six risk based model portfoliosdesktop, tablet, iOS appVisit site
Investec Click & Invest0.65% on first £100k
0.5% on next £150k
0.35% > £250k
0.6% averagegeneral investment
ISA
SIPP
£10,000investment manager
restricted advice
actively managed fundsyes and annual risk assessment review365 days a year supportfive risk based investment strategies from defensive to aggressivedesktop, tablet, app, telephoneVisit site
0.48% up to £25k
0.29% on total assets on investments over £25k
0% on 'Young Investor' account
0.11 - 0.15% TER fund management fee general investment account, ISA, Junior ISA, SIPP£100automatedETFsyesnogoal based risk managementdesktop, tablet, Android, iPhone, WindowsphoneVisit site
0.25% management fee
0.10% product fee
0.13% max fund management feegeneral investment
ISA
SIPP
£1restricted advice - 'money management'ETFsyeslive chat
online
telephone
Skype
goal based investingdesktop, tablet, app - iOS and Android, telephoneVisit site
initial 0.25% + 0.34% asset management fee0.46 - 0.52% fund management fee general investment
ISA
£1,000automated investment advice
active discretionary management
actively managed funds and ETFsyesnomodel portfolios and risk assessmentbrowser based desktop, tablet, mobileVisit site
0.65% up to £50k
0.35% £50k to £250k
0.1% over £250k
0.22%general investment
ISA
SIPP
£500 per account typeinvestment manageriShares ETFsyes
quarterly
yes telephone/onlinefive risk based portfolios cautious to aggressive
annual risk review
browser basedVisit site
0.7% <£20k
0.6% £20k - £100k
0.5% £100 - £500k
0.4% £500k +
0.30% fund management feegeneral investment
ISA
noneautomated investment adviceETFsyesnomodel portfoliosdesktop, tablet, iOS, android appsFull review
Visit site
£69 initial advice
0.7% ongoing advice
0.3% ongoing discretionary management
min £3/month
£99 set up pension
general investment
ISA
SIPP
£1,000
£50,000 considered viable
hybrid managed portfolios - ETFs and actively managed fundsyeslimited personal advicemodel portfolios and risk basedbrowser basedVisit site
0.75% p.a.0.19% - 0.25%general investment
ISA
£200automatedETFsyesyesrisk based portfoliosall devices supportedVisit site
munnypotInitial advice £5 - £500
Platform fee 0.11%
Sliding monthly monitoring fee
0.22% maxgeneral investment
ISA
JISA
£250 lump sum
£25 per month
automatedETFsyesWhatsApp-style chatbotVanguard Lifestrategy funds 'mobile first' technology, online Visit site
nutmeg Fully managed 0.75% < £100k, 0.35% beyond.

Fixed portfolio 0.45% <£100k, 0.25% beyond.
0.19% average
general investment
ISA
SIPP
£500 per pot
Min £100 per month <£5,000 invested.
Pension £5,000 min
automated investment adviceETFsyesnomodel portfoliosbrowser based, tablet, mobileFull review
Visit site
Risksave£0 or £6 per month (optional)typically 0.22%general investment£10,000automated discretionary wealth management, with an alpha overlay.ETFs and Fixed Income Securitiesyesyesa speciality, founders are Certified Financial Risk Managersbrowser basedVisit site
0.75% p.a.0.25% general investment
ISA
£5,000automated discretionary wealth management ETFsyesnoindividually and dynamically managed portfolios, risk assessmentdesktop, tablet, iOS, androidFull review
Visit site
TBAgeneral investment
ISA
SIPP
noneautomatedstocks
ETFs
yesnomodel portfolios and risk managementVisit site
0.4% management fee0.82% fund chargegeneral investment
ISA
SIPP
£50active portfolio managementportfolios of active and passive fundsyesyes, email, online, telephoneten risk based portfolios from active to aggressivedesktop, tablet, appVisit site
<£100k 0.25%
£100 - £250k 0.15%
£250k + 0.1%
Passive 0.85/0.88%
Active 1.22/1.7%
'core' account
ISA
£15,000UBS wealth managementETFs, trackers, smart beta ETFs, actively managed fundsyesyes and integration with other servicesgoal based personalised advicebrowser based, mobile and tabletVisit site
initial 0.25%
0.75% asset management fee
0.18% fund management fee
general investment
ISA
£1,000 or £100 per month
automated personal recommendationpassive fundsyeslimited personal advicemodel portfolio and risk assessmentbrowser basedVisit site
0.7% <£15k
0.6% £15k - £50k
0.5% £50k +
0.17% avegeneral investment
ISA
£1automatedETFs and mutual fundsyeslimited personal advicemodel portfolios and risk assessmentdesktop, tablet, mobile appFull review
Visit site
0% < £5k
0.7% £5k-£100k
Wealthsimple Black 0.5% £100k+
0.2%general investment
ISA
JISA
noneautomated advice
human available
ETFs and passive trackersyesYes - free portfolio reviewthree risk managed portfolios - conservative, balanced, growthdesktop, tablet, iOS, AndroidVisit site