Wealthify vs Moneyfarm: what’s the difference?
Wealthify and Moneyfarm are two of the most popular investment platforms, but how do they compare? Find out more in our handy guide below.
Wealthify and Moneyfarm are two major online investment providers that offer managed portfolio services.
But how do they compare on fees, investment options and philosophies? Here we explain the key differences so you can choose the right platform for you.
Wealthify offers a blend of passive and active funds, while Moneyfarm provides customised portfolio management.
Wealthify is ideal for hands-off convenience, while Moneyfarm is more suitable if you want more control over your investments.
Both aim to make investing accessible.
What is the difference between Wealthify and Moneyfarm?
Wealthify is now owned by insurance and investment giant Aviva, while Moneyfarm was formed in Italy and is now one of the biggest digital wealth management firms in Europe.
The core distinction between Wealthify and Moneyfarm lies in their overall approaches:
Wealthify focuses on simple ready-made plans and auto-investing based on your risk appetite (although actively managed funds are available).
Moneyfarm provides a more tailored service with portfolios constructed to suit your individual preferences.
So, Wealthify aims for ease of use with simple plans, while Moneyfarm offers more customisation.
Wealthify vs Moneyfarm: how do the fees compare?
Fees are crucial to consider when selecting an investment platform.
Here's how the fees compare:
Wealthify fees
There are no set up fees.
0.6% per annum (reduced to 0.3% on the portion of the pension balance over £100,000).
Average investment costs 0.15% pa for original plans and 0.58% pa for ethical plans
There are no trading charges.
Moneyfarm fees
Your first £10,000 is managed for free (robo advisor service).
For actively managed portfolios, there is a 0.75% fee from £500, a 0.7% annual fee from £10,000-£20,000, 0.65% for £20,000-£50,000 and 0.6% on investments between £50,000 and £100,000. The fees get lower for bigger portfolios - the lowest is 0.35% for investments over £500,000.
Moneybox is cheaper overall for smaller portfolios under £30,000.
Here's a summary of how the fees compare:
| Wealthify | Moneyfarm | |
|---|---|---|
| Annual fee/platform fee | 0.6% per annum (reduced to 0.3% on the portion of the pension balance over £100,000). | For actively managed portfolios - platform fee of 0.25%, with a minimum of £1.25 per month charged, 0.45% for assets up to £50,000, 0.2% for £50,000 to £100,000, 0.1% for £100,000 to £1.5 million and no fees on assets above £1.5 million. |
| Fund costs | Average investment costs, including fund charges, of 0.15% pa for original plans and 0.58% pa for ethical plans. | Around 0.16% per year and market spread effects (up to 0.05% per year). |
Is Wealthify or Moneyfarm better?
Looking beyond the fees, there are other factors to consider when comparing the platforms:
Choice: Wealthify has five investment plans, which are: cautious, tentative, confident, ambitious and adventurous. Moneyfarm tailors its portfolios from 80 approved ETFs.
Management: Both actively manage investments for you.
Accounts: Both offer individual savings accounts (ISAs) and general investment accounts (GIAs).
Style: Wealthify focuses on simplicity, while Moneyfarm aims for a slick customer experience.
Guidance: You can also access guidance (not advice) from an investment consultant through Moneyfarm if you have at least £10,000 invested with them.
There is no definitively superior platform. Both Wealthify and Moneyfarm offer slightly different services that cater to different investors.
Which should you choose?
Consider the following when deciding if Wealthify or Moneyfarm is a better match for you.
If you want:
Ready-made investment plans: Wealthify
A customisable portfolio: Moneyfarm
Easy investing: Wealthify
Control over your portfolio: Moneyfarm
A wide choice of investment styles: Moneyfarm
Auto-investing: Wealthify
Desktop and mobile access: Moneyfarm
Whether you decide on a ready-made portfolio or one you build yourself depends on how confident you are and your risk appetite.
Both platforms can be great options depending on the style of investing you prefer.
If you want support with your investment strategy, getting help from a qualified financial adviser is worthwhile.
Can you open accounts with both?
Yes, you can open a Wealthify and Moneyfarm account at the same time.
Here are some of the potential benefits:
You can use Wealthify for convenient auto-investing, helping to save you time.
You can use Moneyfarm to manage your core portfolio and to make regular adjustments to your strategy.
It’s possible to blend simple and customised management approaches by using both platforms.
You can compare investment performance between both platforms and the fees to figure out which is the right one for you.
It’s possible to split money across providers for diversification.
The only extra hassle is tracking (and paying for) two accounts, although using both Wealthify and Moneyfarm can give you a more rounded investing experience.
Which offers better long term, passive investing?
Both Wealthify and Moneyfarm take a passive, long-term investment approach:
Wealthify’s plans invest in globally diversified low-cost ETFs and funds, with the mix potentially changing over time.
Moneyfarm’s portfolios also contain ETFs and index mutual funds.
For completely hands-off long-term investing, Moneyfarm has a slight edge as they actively manage and rebalance your holdings.
But Wealthify offers ultimate simplicity by automating everything into your chosen plan.
So, both can be good passive investing options, depending on your preferences.
How do their investment philosophies differ?
Wealthify’s philosophy focuses on:
Hassle-free investing through ready-made plans, which can be useful for those new to investing.
Offering an intuitive online platform and auto-investing.
Providing low-cost access to ETF portfolios that can offer diversification and help manage risk.
Offering educational content for beginners so they can continually evolve their strategy.
Providing access to socially responsible options for those who want their values reflected in their investment strategy.
Moneyfarm’s philosophy focuses on:
Providing tailored portfolios invested across many markets that are ideal for various investors.
Offering active management and rebalancing of portfolios for easier investment management.
Customised plans for each customer.
Offering access to sophisticated investment tools and reports, suitable for more proactive investors.
Aiming to beat specific stock markets through asset allocation.
Wealthify focuses on simplicity and auto-investing, while Moneyfarm provides more customisation and control for investors.
Wealthify is more suited to beginners who value ease of use, and Moneyfarm appeals to those who want more input over their portfolio.
Think about whether simplicity or flexibility matters more to you and this should point you towards Wealthify or Moneyfarm as your ideal platform.
Want help with investing?
Unbiased can connect you with a financial adviser who can help you build an investment portfolio or optimise an existing one so you can reach your future financial goals.
Similar articles: Moneybox vs Moneyfarm | Hargreaves Lansdown vs AJ Bell | Vanguard vs Moneyfarm
)