Interested in investing your money? Good idea, investing is one of the most important aspects of our life.
If you are looking to invest your money to achieve your financial goal, you will be surprised to know that there are plenty of investment apps and services for you. Investing has become easier, and thanks to these platforms.
Wealthify and moneyfarm are two of the best platforms out there. Both the platform carry their pros and cons. So, if you are interested to learn about which one is better Wealthify or Moneyfarm, you are on the right path.
Here, in this article, I am going to wrap together what is Wealthify, and what is Moneyfarm, and explore Wealthify vs Moneyfarm.
let’s dive into the deep!
What is Wealthify?
Wealthify is a UK-based independent robo-advisor that invests in ETFs to reduce the investment cost of clients. On this platform, you can get started with a minimum of 1 Pound.
The buy-in at this platform is a little easier than Moneyfarm. Wealthify is backed by scores of financial gurus and experts. there are major benefits of being backed by major financial advisors.
In recent times, they were adopted by Aviva. So, Wealthify drives more confidence to experienced investors as well as newbies.
Wealthify attracts huge investors because the platform is much more affordable. Also, it is quite harder to stand up against Moneyfarm.
What is Moneyfarm?
With more than 90,000 Clients and 2.4 billion Pounds in assets, Moneyfarm is one of the most successful platforms for investors.
They started their journey in 2012 but launched in the United Kingdom in 2016. This platform offers a range of products and services that are backed by expert advice and guidance.
Moneyfarm always focuses on ready-made portfolios and robo-investing for a hands-off approach. the FSCS has protected the investor’s money since its inception and it is regulated by the FCA in the UK.
Wealthify vs Moneyfarm: ease of Use
Wealthify and Moneyfarm are both built for modern-day investing. Both platforms are super easy to get started and access. They both feature in our best investing online platforms.
With Wealthify and Moneyfarm, all you need to do is sign up online and then add money. Then the platforms will take care of your investments. So, these are amazing? right.
These platforms are available on their websites, and mobile phone apps. You can access these platforms through your Android and iPhone.
Wealthify vs Moneyfarm: Minimum investment
If you are very interested in using a robo-advisor but want to put a small amount initially, wealthify is your ultimate investment platform.
It only requires a minimum investment of 1 Pound, or 50 pounds for its SIPP. on the other hand, Moneyfarm needs a minimum of 500 Pounds to open an account.
Wealthify vs Moneyfarm: Account options
In the UK, saving for a long period has some tax-free benefits. If you use pensions and Stock Shares ISA, you will have tax-free benefits.
You can grow your money much faster by accessing both platforms. Since you are not required to pay any tax while growing your money.
However, you may be required to pay your tax if you sell your investments.
with stocks and Shares ISA, you can save up to 20,000 Pounds every year tax, and everything you grow will be tax-free. With a pension, your money grows tax-free too.
Since you have paid the tax from your salary, the money is refundable to you. It will directly go to your pension, each time you contribute. However, you may have to pay the tax when you withdraw the cash.
You can also secure your children’s future with a Junior ISA. Here, you can save up to 9,000 pounds each year tax-free.
Lastly, you can also invest in a General Investment Account, but there are no tax-free benefits.
With Wealthify and Moneyfarm, you will have all these benefits:
- Stocks and Shares ISA
- Junior ISA
- Personal Pension
- General Investment Account
Wealthify vs Moneyfarm: Fees
If you are looking for long-term investing, fees are most important. fees have the potential to eat away all of your profits. What seems smaller can have a big impact on your overall gains in the future.
However, I do not recommend you to make your decision based on the fees. As long as you are getting value for your money, the platform is worth to invest.
The fee structure is almost the same for both of these platforms. You need to pay annual charges on the total invested amount.
Besides, the investments also have a fee and there can be charges when investments are brought and sold.
However, when it comes to fees, Moneyfarm is cheaper for socially responsible investing. Moneyfarm’s fixed allocation option comes with a lower cost. Both Wealthify and Moneyfarm are similar with their regular plans.
Here, I will provide what you require to pay as a percentage of the money you have saved.
Fully managed and Ethical:
- 500 to 10,000 Pounds: 0.75%
- 10,000 To 20,000 Pounds: 0.70%
- 20,000 to 50,000 Pounds: 0.65%
- 50,000 To 1,00,000 Pounds: 0.60%
Fixed Allocation:
- 500 to 1,00,000 Pounds: 0.45%
- 1,00,000 to 2,50,000 Pounds: 0.35%
- 2,50,000 to 5,00,000 Pounds: 0.30%
On the other hand, with Wealthify, you will only be required to pay a flat fee of 0.60% each year. Here, it comes a little complicated.
In the original investment plan, you need to pay investment fees in the region of 0.16%. it is 0.76% in total. With the ethical plan, you need to pay fairly hefty investment fees of 0.70%.
So, if you have anything less than 50,000 pounds, it will be a bit cheaper with Wealthify. But anything above it, Moneyfarm becomes a lot cheaper option.
Wealthify vs Moneyfarm: Customer Reviews
To get a good idea of the best online investment platform, you can check the online customer ratings and reviews. On various websites, the Money has an excellent rating of 4.4 out of 5. it is quite amazing.
With Wealthify, it is also an excellent rating of 4.;3 out of 5. A lot of reviews speak about how the platform is easy to access and simple it is.
However, I have seen some of the negative comments about Wealthify speak about poor investment performance.
FAQ
Is Moneyfarm better than Wealthify?
Ans: in terms of recent performance, it is quite tough to choose between these two. wealthify’s high-risk portfolios perform a little better than Moneyfarm. on the other hand, Moneyfarm slightly outperformed Wealthify across the lower-risk portfolios.
Is Wealthify good for beginners?
Ans: no matter how much or how little you invest, Wealthify offers a flat fee of 0.6%. So, it is quite a simple platform for beginners to understand investments.
What is an alternative to Wealthify?
Ans: Some of Wealthify’s competitors or similar companies include Nutmeg, JM Finn & Co., Man Group, and Admiral Markets.
Can I trust Moneyfarm?
Ans: Moneyfarm is regulated by FCA in the UK. So, your money and assets are safeguarded and well protected.
Conclusion
If you are looking to invest your money, some effective investment platforms help you all the way around. There are plenty of investment apps and services that create a diversified portfolio for you. Wealthify and Moneyfarm are the two of them.
If you are keen to know which one is better, Wealthify or Moneyfarm, just go through my article. Here, I have provided every detail of Wealthify vs Moneyfarm. Hope, you have got your answer. Both Wealthify and Moneufarm have their features, pros, and cons.
You must choose the one according to your financial needs and goals.
