Compare 6 best robo advisors for beginners UK October 2024

Compare the best robo advisors in the UK to find the perfect digital investment assistant tailored to your financial goals.
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Updated:  Aug 22, 2024
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12 min read

Whether you’re saving for a new home, planning for retirement, or just want to see your money grow, robo advisors can be a great tool. They’re known for being cost-effective, easy to use, and accessible to everyone – no finance degree required.

This guide walks you through the top robo advisors in the UK. We compare their features, fees, and services, making it easy for you to find the one that best fits your needs. Our aim is to provide you with clear, unbiased information so you can make an informed decision on how to invest with confidence.

So, let’s embark on this journey together and explore how these digital platforms can make investing a more secure and rewarding experience for you.

Our picks: best UK robo-advisors overall for 2024

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  1. Money Farm: Best for finding diverse portfolios based on quantitative data analysis
  2. &Me: Best for simple, jargon-free investing
  3. eToro: Best for beginners, copy-trading & demo-account
  4. IG Markets: Best for trusted and transparent trading
  5. Degiro: Best for 0% commission on US stocks

What is the best robo advisor UK?

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These are the best robo advisors in the UK, each with a range of investment options to accommodate various budgets and risk preferences. Click on the links in the table to begin your journey, or continue reading for a detailed comparison of these UK robo investors.

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1
Min Deposit
-
Best offer
User Score
10
Make the right investment decisions with human expertise
Get one-to-one guidance from a qualified investment adviser
Pay a single account management fee across all products
Start Trading
Payment Methods:
Wire Transfer
Full Regulations:

By making an investment, your capital is at risk. The value of your Moneyfarm investment depends on market fluctuations outside of our control and you may get back less than you invest. Past performance is no indicator of future performance. The tax treatment of a Moneyfarm Stocks and Shares ISA and a Moneyfarm Pension depends on your individual circumstances and may be subject to change in the future. You should seek financial advice if you are unsure about investing.

2
Min Deposit
-
Best offer
User Score
9.8
&me is covered by the Financial Services Compensation Scheme, protecting your money up to £85k
As part of MFM Investment, &me is authorised and regulated by the Financial Conduct Authority (FCA)
&me is powered by a range of M&G Wealth managed portfolios, meaning you benefit from a lifetime of expertise
Start Trading
Payment Methods:
Wire Transfer
Full Regulations:

By making an investment, your capital is at risk. The value of your &me investment depends on market fluctuations outside our control and you may get back less than you invested. Past performance is no indicator of future performance. The tax treatment of an &me Stocks and Shares ISA and a &me Pension depends on your individual circumstances and may be subject to change in the future. You should seek financial advice if you are unsure about investing.

3
Min Deposit
-
Best offer
User Score
9.9
Invest/buy real stocks and ETFs with 0% commission fees
Over 11 payment methods, including PayPal
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Debit Card, neteller, eToro Trading Platform, Klarna, POLi, Przelewy24, Rapid Transfer, Trustly, iDeal, skrill
Full Regulations:
ASIC, CySEC, FCA

51% of retail CFD accounts lose money. Your capital is at risk.

Top UK robo advisor reviews

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We found 32 online brokers for users based in

1. eToro. Best for beginners, copy-trading & demo-account

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0% commission

Fees

$...

Minimum deposit

3,600

No. assets

Yes

Demo/virtual account

Pros & Cons

Great for beginners, simple to set up and get started Competitive, industry-leading commissions Popular ‘Copy Portfolios’ function lets you follow top traders Excellent customer service, with live chat support provided Over 2,000 CFDs available to trade for UK & EU users (not US, real assets only)
Comparatively high fees for withdrawals and account inactivity Does not integrate with the MetaTrader platform High spreads on some assets

Overview

We love eToro because it’s a trading platform built with beginners and casual traders in mind. The platform combines an interactive, social trading experience with an easy-to-use interface, making it ideal for novice traders.

The far-reaching catalogue of more than 5,500 stocks, ETFs, and crypto tokens, includes big global names like Apple, Tesla, and Bitcoin, as well as a full range of stocks from the FTSE 100, along with smaller companies or tokens with high growth potential. You can start trading with as little as £10 using fractional shares if you’re on a tight budget.

One feature we particularly appreciate is the ability to interact with eToro’s 35 million users on any asset, market, or portfolio page. If you find traders whose strategies match your risk tolerance, you can copy their portfolios automatically using eToro’s flagship copy trading functionality. This is a great way to learn and potentially benefit from the expertise of more experienced traders.

If you don’t feel comfortable investing your cash straight away, you can use a free demo account, credited with 100,000 virtual dollars. This offers plenty of opportunities to try out a trading strategy that works for you across stocks, crypto, and options trading markets.

Highlights

51% of retail CFD accounts lose money. Your capital is at risk.

2. IG Markets: Best for trusted and transparent CFD trading

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From 0.5%

Fees

$...

Minimum deposit

50

No. assets

Yes

Demo/virtual account

Pros & Cons

Intuitive web trading platform Excellent demo account available Variety of deposit and withdrawal options Wide variety of useful educational tools Trading platform tutorial to get you started
Slow account opening process Unavailable in all regions

Overview

We love IG because it’s one of the most established and reputable names in the online trading industry, known for its reliability, comprehensive market offerings, and strong regulatory compliance. IG offers over 17,000 markets in the UK via CFDs in stocks, forex, commodities, indices, ETFs and more, with plenty of useful plugins and integrations to improve the trading experience.

One of the key strengths of IG Markets is its seamless integration with MetaTrader 4 (MT4), a popular third-party trading platform favoured by many traders for its advanced charting tools, automated trading capabilities, and custom indicators. This integration allows users to leverage MT4’s sophisticated features while benefiting from IG Markets’ competitive pricing, reliable execution, and extensive market access.

Beyond its product range and platform integrations, IG Markets stands out for its commitment to education and customer support. The company offers a wealth of educational resources, such as webinars, tutorials, and market analysis, which help traders of all levels improve their knowledge and skills.

The fees: For most assets, you don’t pay a trading fee but will be charged through the spread instead. Spreads start at 0.6 points on key FX pairs, 0.8 points on major indices, and 0.1 points on commodities. Guaranteed stops are available and cost 0.3% of the underlying transaction value. CFD shares charge commissions with a minimum of £10 for the UK market, $15 for US markets, and €10 for Euro markets. 

Highlights

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

3. Degiro. Best for 0% commission on US shares

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From €1 (+€1 handling fee)

Fees

$...

Minimum deposit

2,000,000

No. assets

No

Demo/virtual account

Pros & Cons

Low trading fees No minimum deposit required Segregated client funds
No US customers No forex or cryptocurrencies offered for trading Limited educational resources

Overview

We love Degiro because it offers a simple trading platform so that you can trade quickly and easily wherever you are. Degiro’s pricing model means you’ll maximise your returns by minimising your trading costs. With some of the best fees on share trading, ETFs, bonds, options, and futures, Degiro is one of the most cost-effective trading platforms around. 

Not only are Degiro’s fees low, but it also provides access to a wide range of investment opportunities across more than 50 international markets. You can trade and invest in a diverse range of assets including shares, ETFs, bonds, options, futures, and more, all from a single account. 

Degiro’s platform is user-friendly and designed to cater to both novice and experienced investors, making it easy to manage investments and execute trades efficiently. The website also boasts a huge range of educational material, including an Investor’s Academy, to help you get started.

The fees: All share trades come with a €1 handling fee. US share trading has no other fees, UK share trading costs £1.75, and European share trading costs €3.90. The rest of the world costs €5. A core selection of ETFs are free to trade, other global ETFs cost €2 plus a €1 handling fee. Derivative trading costs €0.75. There are no inactivity, deposit, or withdrawal fees.

Highlights

Investing involves risk of loss

4. AvaTrade. Best regulated broker for secure trading

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Avatrade_logo

From 0.13%

Fees

$...

Minimum deposit

1,300

No. assets

Yes

Demo/virtual account

Pros & Cons

Trade 1000+ CFDs with competitive spreads Regulated by Tier 1 financial bodies across the world Consistently highly rated trading platform on web and mobile Offers social trading through its proprietary AvaSocial platform
Spreads are competitive without being industry-leading Some assets are only available to trade through the MetaTrader software

Overview

We love AvaTrade because it is a reliable CFD broker, that gives users access to a wide range of markets. As a CFD broker, AvaTrade lets you speculate on the price movements of various financial instruments without owning the underlying assets. AvaTrade is a multi-asset brokerage firm and includes CFDs for forex, commodities, shares, indices, and bonds.

AvaTrade is also highly regarded for its strong regulatory framework and commitment to security. AvaTrade is regulated in multiple jurisdictions, including Europe, Australia, Japan, South Africa, and the British Virgin Islands, which means it must adhere to stringent regulatory standards across the world. 

AvaTrade isn’t just well-regulated, it also employs advanced security measures to protect client funds and personal information, including segregated accounts and robust encryption technology. 

The fees: There is no commission on any trading. AvaTrade makes money from the Bid/Ask spread instead. Share spreads start from 0.13 and forex spreads start at 0.7 pips. Positions left overnight are charged a swap fee that varies depending on size. An inactivity fee of £50 per month is applicable if you don’t log in to your account for three consecutive months.

Highlights

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

5. XTB: Best for offering global CFD markets to UK traders

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0.2 pips

Fees

$...

Minimum deposit

2,200

No. assets

Yes

Demo/virtual account

Pros & Cons

Trade CFDs on thousands of assets Regulated broker Deposit protection for client accounts Good number of educational resources
Doesn't accept US clients Tradeable assets limited to CFDs and forex pairs

Overview

We love XTB because of its extensive range of international CFD markets, allowing UK traders to buy and sell popular financial assets at competitive prices. XTB offers over 5,900 instruments, including 3,000 stocks, 400 ETFs, and 2,300 CFDs across forex, commodities, and indices. 

This broad selection allows you to diversify your portfolio and explore several trading opportunities across different asset classes. Whether you are interested in forex, commodities, indices, or cryptocurrencies, XTB’s comprehensive offering means you have the tools and resources needed to trade effectively.

XTB combines beginner-friendly, introductory tools and resources with a scaling system of accounts that allow experienced traders to access high rates of leverage and advanced analytical tools. 

With more than 180 pre-installed indicators and chart types, its bespoke xStation platform allows for intricate analysis, while beginners can access its Trading Central service, where trade ideas, forecasts, and risk analyses are available for anyone to look through.

The fees: XTB’s fees start from 0.02 pips on forex pairs and 0.2 pips on stocks and indices CFDs. Commodities come with larger spreads, starting from 2 pips, while cryptocurrency spreads are significantly higher and start from 8.1 pips.

Highlights

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76-83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

6. Pepperstone. Best low spread & no commission broker

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pepperstone logo

0.20%

Fees

$...

Minimum deposit

1,200

No. assets

Yes

Demo/virtual account

Pros & Cons

Zero commission on trades Hedging, scalping, and crypto CFD trading available Lots of deposit and withdrawal options, including PayPal
No guaranteed negative balance protection in some jurisdictions No option to purchase stocks or bonds directly, only CFDs and spread betting available

Overview

We love Pepperstone because it is a low fee and low commission CFD brokerage and spread betting platform, making it an excellent choice for UK traders looking to keep trading costs down. Pepperstone offers some of the most competitive spreads in the industry, with no commission on its Standard account and low commissions on its Razor account. 

Pepperstone is also well known for its top tier regulatory protection. The broker is regulated by the Financial Conduct Authority (FCA) in the UK, which means it follows stringent rules. Pepperstone also offers a good selection of markets, including forex, commodities, indices, and shares, offering various trading opportunities.

One of the features we found most useful when using Pepperstone is the variety of trading platforms. You can choose from TradingView, MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader, each providing a unique set of features and tools. 

The fees: Forex trades are commission free, as Pepperstone makes money from the Bid/Ask spread. The spreads vary depending on the asset you want to trade. Razor (pro) account customers get significant discounts on the spreads. US stock trades are charged a $0.02 commission, for other stocks the commission starts at 0.07%.

Highlights

Between 74-89 % of retail investor accounts lose money when trading CFDs.

What is a robo advisor?

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A robo advisor is a digital investment platform that provides automated, algorithm-driven financial planning services with little to no human supervision. 

A typical robo advisor collects information from clients about their financial situation and future goals through an online survey, and then uses this data to offer advice and automatically invest your assets.

How does a robo advisor work?

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Robo advisors work by using algorithms to analyse your financial data and investing goals, which you provide through an online questionnaire. Based on this information, they create and manage an investment portfolio for you. 

They often use investment vehicles like ETFs (exchange-traded funds) to build these portfolios, considering factors like risk tolerance, investment timeline, and specific goals. These investments allow for a great degree of flexibility 

How should I choose a robo investor in the UK?

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Choosing a UK robo advisor involves several key considerations to ensure that the service aligns well with your financial goals, investment style, and preferences. Here’s a detailed guide to help you select the right robo advisor for your needs:

Investment goals and needs

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Determine why you want to use a robo advisor. Common reasons include saving for retirement, building an emergency fund, or general wealth accumulation. This, along with your investment time frame, can affect which robo advisor suits you best. Some are better for short-term goals, while others are tailored for long-term investing.

You should also assess your comfort with risk. Robo advisors in the UK often offer portfolios ranging from conservative to aggressive. Understanding your risk tolerance helps in selecting a portfolio strategy that aligns with your comfort level.

Cost structure

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British robo advisors typically charge an annual fee based on a percentage of your assets under management (AUM). Compare fees across different providers – they can range from around 0.25% to 0.50% per year. And be aware of any other fees, such as fund expense ratios, withdrawal fees, or account transfer fees.

Minimum investment requirement

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Some robo advisors have a minimum investment amount, which can range from £0 to several thousand pounds. Choose one that matches your initial investment capacity. It goes without saying that the ones with no (or a very low) minimum investment are better suited to beginners.

Investment methodology

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Look at how the robo advisor allocates investments across different asset classes (for example, shares, bonds, or real estate). Most use ETFs to invest in these assets, but check for any unique investment offerings like socially responsible funds or specific asset classes that you might be interested in.

Some other things to consider are the frequency of rebalancing, which refers to how often portfolios buy and sell funds to maintain the target asset allocation, and whether the robo advisor offers tax-loss harvesting or other tax-efficient investing strategies.

Available account types

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Some UK robo advisors allow you to invest with a stocks and shares ISA, which means you can invest up to £20,000 per year, tax-free. Similarly, some offer SIPPs (self-invested personal pensions), which offer tax breaks if you’re investing for retirement.

User experience and accessibility

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The robo advisor platform should be easy to navigate and understand, especially if you’re a beginner. The top services boast the best investment apps that you can use if you prefer managing investments on the go, and look into their customer service options (like chat, phone support, and email) and service hours.

Performance history

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While past performance isn’t indicative of future results, it can give you a sense of how the robo advisor’s strategies perform in different market conditions. 

A robo advisor that has seen success throughout tribulations in the UK economy, whether that’s the 2008 financial crisis, Brexit, or more recently following Liz Truss’s short-lived Autumn Statement, suggests a robust model that you can trust.

Additional features and services

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Some robo advisors in the UK offer tools for retirement planning, education savings, or investment goal tracking. Others provide access to human advisors for additional fees, which can be beneficial for more complex financial situations. You may want to take advantage of all, some, or none of these features, but they’re worth considering before you sign up.

Security and regulatory compliance

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Ensure the robo advisor is registered with relevant financial authorities and employs strong security measures to protect your data and investments. Robo advisors in the UK must be licenced to operate by the FCA (Financial Conduct Authority), which provides a set of rules to ensure investor protection and backs this up with deposit insurance.

The FSCS, or Financial Services Compensation Scheme, guarantees all deposits with a regulated financial platform up to £85,000 per person, in the event the platform becomes insolvent.

You can check whether your favourite robo advisor is registered by searching for its licence number on the FCA Register.

Reviews and reputation

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Research online reviews, ratings, and any press coverage and use these to compare UK robo advisors. Consider using Trustpilot, and app reviews on the App Store or Play Store to help, along with our robo advisor reviews.

Trial periods or demo accounts

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Some robo advisors offer a trial period or demo account, allowing you to test the service without committing your funds.

Quick answers to key questions

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How much does a UK robo advisor cost to use?

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The cost of using a robo advisor in the UK varies by provider. Typically, they charge a percentage of your total account balance as an annual fee. This fee often ranges from 0.25% to 0.50% of your assets under management, which is generally lower than traditional financial advisors.

Alongside this, you may have to pay another small fee to cover the cost of buying and selling assets. This is usually a very small amount, about 0.05% or 0.1% of your balance.

Do I have to verify my identity with a UK robot investor?

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Yes, you usually need to verify your identity when using a robo advisor in the UK. This is part of the Know Your Customer (KYC) regulations enforced by the FCA to prevent financial crimes like money laundering. Verification typically involves providing personal identification documents, such as your UK passport or driving licence.

Are UK robo advisors safe to use?

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Yes, UK robo advisors are generally safe and secure. Any platform that is licenced by the FCA is safe, as this means that you are much less likely to lose out in the event of insolvency or nefarious activities.

In addition, top robo advisors in the UK use encryption and other security measures to protect your personal and financial information. Set up Two Factor Authentication and use a secure password to ensure no one else has access to your money or your data.

Do I need any extra software to use a robo advisor in the UK?

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No, you won’t require any extra software. Most robo advisors in the UK operate through web-based platforms or mobile apps, allowing you to access their services using a regular web browser or a smartphone.

Should I invest with a robo advisor UK?

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Investing with a UK robo advisor could be a good choice if you prefer a hands-off investment approach, are comfortable with digital platforms, and are looking for lower fees. A robo advisor is suitable for those who may not have the time or expertise to manage their investments actively.

Robo advisors can be a convenient, lower-cost alternative to traditional financial advisors, suitable for those comfortable with a digital-first approach. However, it’s important to consider your personal financial situation, investment goals, and comfort with the level of personalisation and human interaction before choosing to invest with a robo advisor.

Benefits of using a robo advisor

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Robo advisors in the UK appeal to new investors and require little prior investing experience to get started. You don’t need a large amount of money to set one up and you can invest as much or as little as you want, at a frequency that suits you.

Here are some of the positives of using a robo investor.

  • Low fees. A robo advisor generally has lower fees compared to traditional financial advisors.
  • Convenience. Automated investment that operates 24/7, without much oversight from you.
  • Accessibility. UK robo advisors often have lower minimum investment requirements than wealth management platforms that rely on fund managers.
  • Simplified experience. Robo investing is ideal for beginners or those who prefer a hands-off approach.
  • Data-driven. Robo investors use algorithms for unbiased investment decisions and often outperform their human equivalents.

Risks of using a robo advisor

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As with any investment approach, using a robo advisor in the UK has its risks. They are still susceptible to fluctuations in the UK stock market, or anything that negatively impacts the British economy. Here are some of the risks of using a robo investor.

  • Lack of personalisation. A robo advisor may not fully account for unique financial situations or complex needs, and there’s limited scope for adjusting how it invests.
  • Limited human interaction. There’s less personal guidance and advice and the manner in which it invests, using funds and ETFs, means you can’t achieve really large gains that beat the market.
  • Dependence on algorithms. The robo advisor is subject to limitations of the programmed algorithms and data inputs.
  • Market risk. As with any investment, there is always the risk of market volatility affecting portfolio performance. The algorithms don’t protect you from a stock market crash.

How to open an account with a robo advisor in the UK

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Create an account and add a payment method

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To start using a robo advisor, you need to create an account and add a means of sending money to it. Most people simply connect their robo advisor to their bank account, and doing it this way means you can round up any purchases and deposit the extra money directly into your account on a regular basis.

Take the onboarding quiz

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Once you’ve created an account, you must fill out a short quiz. This quiz is designed to assess your investment preferences, your goals, and your risk profile. Think about your answers carefully, as these dictate how the robo advisor invests your money.

Confirm your investment portfolio

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From the results of the quiz, the robot investor provides a recommended portfolio based on your investment profile. You can tweak this, or choose an alternative option, but if you’re going to use a robo advisor then it makes sense to use its recommendation.

Start investing automatically

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Now, you’re all set to start investing. The final step is to decide how often you want to add money to your portfolio, which can be set to a regular automatic deposit, or a manual deposit which you manage yourself.

A regular automatic deposit is a good option to drip-feed money into your portfolio, an investment strategy that’s known as ‘dollar-cost averaging’ (DCA). With DCA, you invest at regular intervals, regardless of how the market is performing. In this way, you naturally buy more when prices are lower and less when prices are higher.

Bottom line

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This page is dedicated to guiding beginners through the world of robo advisors in the UK, showcasing the best options currently available. It serves as a comprehensive resource, comparing various robo investors based on their investment offerings, which are designed to cater to different financial goals, budgets, and risk tolerances. The page aims to simplify the selection process, making it approachable and informative, particularly for those new to investing.

Each featured robo advisor is carefully evaluated and presented in an easy-to-understand format, allowing users to quickly grasp the key features and benefits. The comparison includes details on investment products, fee structures, and the unique advantages of each platform. The comparisons and guidance serve to provide you with the information required to make your own investment choices.

Methodology: How we choose the best UK robo advisors

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Helping people make better financial decisions is at the heart of our mission at Invezz. 

We periodically test more than 63 robo advisors to provide our users with clear, accessible guidance on the investing options available. All testing is carried out by our panel of stock market experts, analysts, and active traders who sign up to each advisor, conduct research, and score each service.

Our tests are designed to find robo investors that offer a beginner-friendly, secure investing experience at a fair price. To supplement our practical testing and experience, we research each robo advisor to gather any further relevant information. We read online customer reviews, app reviews on the Play Store and App Store, and conduct user surveys to get feedback from real people about what works, and what doesn’t.

Each advisor is awarded a final score based on 130+ data points across 8 ranking categories: cost, reliability, user experience, deposit & withdrawals, investing options, range of products/markets, research & analysis tools, and the availability of educational & learning resources.

We work closely with individual brands to ensure all factual information displayed here is accurate. All data is then fact-checked by an independent reviewer. You can learn more about our expert panel and how we test, rate, and review platforms in our review process.

FAQs

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01

How much do I need to start using a robo advisor in the UK?

02

Is it worth paying for a robo-advisor in the UK?

03

What is the average return on a robo-advisor in the UK?

04

What is the cheapest robo-advisor UK?



Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Risk disclaimer
James Knight
Editor of Education

James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.