Best Robo-Advisors In The UK (2024)

We researched a range of robo-advisors and have listed our findings below. Our methodology explains how we ranked the advisors and our Frequently Asked Questions section explains how robo-advisors work.

• Moneyfarm: Best for customer service
• InvestEngine: Best low-cost provider
• Wealthify
• Nutmeg

Robo-advisor alternatives:

• eToro Smart Portfolios
• IG Smart Portfolios

We applied the following criteria to select our list of best robo-advisors:

• Does the service require clients to complete a questionnaire about their investment goals and financial circumstances? Where this isn’t required, we looked at whether the service used automated tools to create a portfolio tailored to a client’s risk profile.
• Does the service provide automated tools such as rebalancing of portfolios?
• Is the robo-advisor authorised by the Financial Conduct Authority?
• Does the robo-advisor have a good rating on consumer review site Trustpilot and a low level of FCA complaints?

We compared different features across various services, applying the greatest weight to the level of fees and the range and types of investments offered.

We also considered other features, including:

• access to ethical investment portfolios
• regularity of re-balancing and client reporting
• level of customer support
• minimum investment amounts
• availability of tax-efficient accounts such as Individual Savings Accounts (ISAs), Lifetime ISA (LISAs), Junior ISAs and Self-Invested Personal Pensions (SIPPs).

We combined research with editorial judgment to arrive at our star ratings.

We calculated provider fees by based on the following assumptions:

• value of portfolio: we considered the fees for three different portfolio values: £10,000, £30,000 and £50,000
• platform fees: based on the portfolio values above
• types of portfolio: based on managed portfolios available, including ethical portfolios (where available)
• fund charges: based on the combined average of the fund fees and buy-sell spread costs.

Financial advisors provide personalised advice for investors, including tailoring an investment portfolio to their individual circumstances. When it comes in holistic form, advice can also extend to take in features such as tax and estate planning, school fees advice and financial protection in case of bad health. All said, this can turn out to be an expensive option.

Investment planning alone can impose initial fees of up to 5% of the portfolio value in question, plus annual ‘monitoring’ fees of up to 3%, according to the financial advisor review site VouchedFor.

In contrast, some investors take a DIY approach to picking their own investments and use a trading platform. Investors typically pay an annual platform fee of 0.25% to 0.45% of their investment, plus trading fees and underlying fund charges for this option.

Robo-advisors are a halfway house option between personalised wealth management and DIY investing. They offer tailored portfolios, while keeping the costs to a minimum through the use of technology where possible.

Services have proved popular in recent years, with assets under management in the UK rising from £4.5 billion in 2017 to over £24 billion in 2022, according to consultants Statista.

That said, 2023 research from YouGov found that 73% of UK consumers were unaware of robo-advice, adding they had no intention of using such a service.

Robo-advisors are digital platforms that use computer algorithms to construct an automated portfolio to fit an investor’s appetite for risk. They aim to create an investment portfolio with minimal human intervention, which reduces the cost of providing the service.

Algorithms are used to understand and predict investor preferences, including appetite for risk and loss, time horizon and financial circumstances. The investor profile is then matched to one of a number of different portfolio options that best meets the investor’s needs.

The investment team behind a robo-advisor regularly reviews the composition of each portfolio and changes the weighting of constituent funds in response to market conditions.

The term ‘robo-advisor’ is used to describe a wide range of platforms offering investors a choice of ready-made portfolios according to their risk profiles and investment objectives.

Providers such as the names highlighted in our selections above require investors to complete detailed questionnaires before matching them to the most appropriate investments.

Growing popularity of robo-advice, particularly among tech-savvy ‘Gen Z’ investors, has also attracted interest from traditional investment companies. Insurance giant Aviva swallowed up Wealthify in 2018, while banking behemoth JP Morgan bought Nutmeg.

In addition to what might be described as ‘pure play’ robo-advice, several trading platforms and similar services also offer investors a choice of ready-made portfolios rather than relying on the use of in-depth questionnaires to match customers to a particular investment style.

In this instance, portfolios tend to be categorised according to their level of risk, for example, from ‘cautious’ and ‘moderate’, up to ‘adventurous’.

Providers falling into this category include the likes of the IG Smart Portfolio offering broadly diversified investments through exposure to fixed income and equities, as well as other assets such as gold and property.

IG Smart Portfolios are composed of BlackRock’s iShares exchange-traded funds. According to IG, a £40,000 investment into a Smart Portfolio would incur annual costs equivalent to 0.72% of the amount invested, or £288.

The company adds that portfolios in excess of £50,000 are managed free of charge with other management fees capped at £250 a year.

eToro is another provider offering a range of ready-made and diversified portfolios also featuring asset allocation guidance from BlackRock. Investors can choose from a range of ‘core’ portfolio offerings including: Equity, Dynamic, Moderate, Stability, and Income. The minimum investment is £385 ($500).

Large investment firms, including Fidelity and Vanguard, offer robo-advisor services in the US, but not the UK.

Robo-advice is targeted at investors who are neither confident enough to pick their own investments, nor want (or can’t afford) to pay for a financial advisor.

As a result, robo-advisers are likely to appeal to investors with smaller portfolios who want to keep fees as low as possible, while leaving an expert to manage their portfolio.

This is particularly true for investors with longer time horizons who want to avoid the value of their portfolio being significantly eroded by fees over a 10 or 20 year period.

They’re also popular with younger investors, who may prefer to manage their investments online rather than in-person.