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Moneybox vs Moneyfarm: what’s the difference?

Moneybox and Moneyfarm are two popular investment platforms in the UK, but they have quite different approaches.

This guide examines the key distinctions between Moneybox and Moneyfarm to help you choose the right investment platform for your needs.

Summary

  • Moneybox offers auto-investing services, while Moneyfarm provides managed portfolio services

  • Moneybox is ideal for hands-on beginners, and Moneyfarm suits investors seeking automation

  • Both investment platforms offer a passive, long-term approach

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What is the difference between Moneybox and Moneyfarm? 

The core difference between Moneybox and Moneyfarm lies in how hands-on the investing experience is: 

  • Moneybox is an app-based platform focused on regular saving and auto-investing into exchange-traded funds (ETFs). 

  • Moneyfarm provides managed investment portfolios constructed and overseen by their investment team. 

So, Moneybox offers simple DIY investing, while Moneyfarm gives you a fully managed service. 

In short Moneybox is an auto-investing app for DIY investors new to investing, while Moneyfarm offers managed portfolios for hands-off investors. 

Learn more: Vanguard vs Moneyfarm, what's the difference?

Moneybox vs Moneyfarm: how do the fees compare?

Fees are a key factor in picking an investment platform.

Here's how the fees compare:

Moneybox fees
  • £1 per month fixed subscription fee (free for the first three months). 

  • 0.45% platform fee. 

  • Annual fund provider fees of up to 0.58%. 

Moneyfarm fees 
  • Your first £10,000 is managed for free (robo advisor service). 

  • For actively managed portfolios, 0.7% annual fee on up to £10,000, 0.7% for £10,000-£20,000, 0.65% for £20,000-£50,000 and 0.6% on investments between £50,000 and £100,000. The fees are lower for bigger portfolios.  

  • Moneybox is cheaper overall for smaller portfolios under £30,000. 

Moneyfarm becomes more cost-effective for bigger portfolios due to the fixed £1 per month fixed subscription fee on Moneybox. 

Is Moneybox or Moneyfarm better?

Beyond the fees, there are other factors you should weigh up: 

  • Choice: Moneybox offers three portfolios, while Moneyfarm tailors portfolios from 80 approved ETFs. 

  • Management: Moneyfarm actively manages your investments, but Moneybox is execution-only. 

  • Accounts: Both investment platforms offer individual savings accounts (ISAs). Moneyfarm also offers a general investment account (GIA). Accessibility: Moneybox aims for simplicity in its app. Moneyfarm is also easy to use but more advanced. 

  • Brand: Moneyfarm is the more established business, but Moneybox is growing fast. 

There is no definitively superior platform as each caters well to different types of investors.

Moneybox vs Moneyfarm: which should you choose? 

Consider the following when deciding if Moneybox or Moneyfarm suits you. 

If you want: 

  • Hands-off management: Moneyfarm 

  • To manage your own investments: Moneybox 

  • Ready-made portfolios: Moneybox 

  • Tailored portfolios: Moneyfarm 

  • An easy-to-use mobile app: Moneybox 

  • A slick desktop experience: Moneyfarm 

  • Minimal effort: Moneyfarm 

  • To keep your costs low: Moneybox 

Both platforms can be good options depending on your preferences and investing approach.

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Can you open accounts with both Moneybox and Moneyfarm?

Yes, you can open a Moneybox and Moneyfarm account. 

Here are some potential benefits: 

  • You can use Moneybox for convenient auto-investing. 

  • You can use Moneyfarm for a core long-term portfolio. 

  • Both platforms can help you blend DIY and managed approaches. 

  • Comparing performance and costs. 

  • You can diversify across providers for security. 

The only real downside is you’ll have accounts on two platforms, so there’s increased admin and fees. 

But using both Moneybox and Moneyfarm together can offer you a more rounded investment experience. 

Which is better for passive, long-term investing?

Both platforms take a passive, long-term investment approach as Moneybox uses passive index tracking ETFs, while Moneyfarm portfolios contain ETFs and low-cost index mutual funds. 

For completely hands-off investing, Moneyfarm has an advantage as it actively manages your portfolio

But Moneybox is cheaper, especially for smaller accounts. This lower cost could compound to allow you to benefit from higher returns over a long period of time. 

So, both Moneybox and Moneyfarm can be suitable platforms for long-term passive investors - it depends on your preference between DIY or active management. 

How do their investment philosophies differ?

Moneybox’s philosophy includes: 
  • Hassle-free auto-investing for beginners. 

  • Low-cost ready-made portfolios. 

  • An intuitive mobile app platform. 

  • Fractional investing. 

  • Educational content for new investors. 

Moneyfarm’s philosophy includes: 
  • Tailored portfolios managed over time. 

  • Active allocation and rebalancing. 

  • Desktop and app access. 

  • Its aim to beat markets through asset allocation. 

  • Appealing to hands-off investors. 

Moneybox focuses on easy DIY investing, which may be ideal for younger people, while Moneyfarm provides sophisticated managed portfolios. 

So, Moneybox targets new investors who value simplicity, while Moneyfarm appeals to those wanting effortless management. 

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Similar articles: Vanguard vs Moneyfarm | Wealthify vs Moneyfarm | Hargreaves Lansdown vs AJ Bell

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