In our previous posts, we covered what we think are the 3 most established robo-advisors in the UK market. We’ll now take a look at a few more than have entered the market, which has now become a very competitive arena.

Scalable Capital

Just like Nutmeg, Moneyfarm and Wealthify, Scalable Capital uses ETFs, which invests into 8,000 individual securities across 90 countries. You find out more about ETFs in our post, “What is a robo-advisor?”. In a nutshell, ETFs are investment funds which track the performance of a market. Scalable Capital explains that it uses ETFs because a single transaction can invest in a whole region or asset class, which helps build a diversified portfolio without needing to hold lots of separate individual securities.

The minimum investment with Scalable Capital is £10,000, so it perhaps won’t be for casual or first time investors. Fees for Scalable Capital are 0.75% regardless of the amount invested. There is also the ETF underlying fund, which Scalable Capital says averages 0.25% per year.

Scalable Capital at a glance:

  • What kind of investments? Stocks and shares ISA, general investment account.
  • How many risk profiles? 23.
  • Minimum investment? £10,000.
  • Fees? 0.75% (≤£100,000). Plus an underlying fund cost (averaging 0.25%).

True Potential Investor

True Potential Investor states its aim is to revolutionise the way people invest with modern technology that is simple, effective and unique. To help achieve this aim, and like Moneyfarm, it has its own smartphone app which allows investors to track and top up investments.

Like Nutmeg, True Potential Investor offers personal pensions as well as stocks and shares ISAs and general investment accounts.

When signing up you’re first asked what your ultimate goal of the investment is, such as retirement or school fees. You’re then asked what your ultimate goal amount is. The third step asks you to select one of five risk profiles before confirming an initial and monthly investment amount. The minimum investment is £50. You then choose the kind of investment you want and then identify which of 10 portfolios (from defensive to aggressive) you think would work best for you.

Fees are a little less transparent than some of the other robo-advisors. There is a 0.40% platform fee, a minimum of 0.76% portfolio fee (it doesn’t provide further breakdown as to at what investment level the portfolio fee changes, or what the portfolio fee changes to). It also charges £50 if you want to withdraw all of your investments.

True Potential Investor at a glance:

  • What kind of investments? Stocks and shares ISA, general investment account, personal pensions.
  • How many risk profiles? 5 (10 portfolios).
  • Minimum investment? £50.
  • Fees? Minimum 0.76% portfolio fee and 0.40% platform fee. Also £50 charge if the entire investment is withdrawn.

Wealth Horizon

Wealth Horizon is slightly different from the other robo-advisors we’ve covered as they offer financial advice alongside investments  It prides itself as the first service in the UK to provide personal, responsible and online investment advice. Like the others, when signing up it asks a series of questions to identify the best investment strategy for you and then builds a balanced portfolio of investments. You’re able to pick up the phone and speak to an advisor. The advisors will take into account your financial position and attitude to risk, check that you can afford to take the risk associated with your investment before you proceed, and can offer as much or as little advice as you need during the life of your investment.

As Wealth Horizon provides an advisory service, there is an initial investment charge of 0.25%. Ongoing investment charges are 0.75% with an underlying fund charge of 0.18%.

There are no minimum or maximum investments.

Wealth Horizon at a glance:

  • What kind of investments? Stocks and shares ISA, general investment account.
  • How many risk profiles? 10.
  • Minimum investment? £1.
  • Fees? Minimum 0.25% initial investment charge, 0.75% ongoing investment charge, 0.18% underlying fund charge.

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