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Moneyfarm Promo – How Good a Deal Is It?

Analyst Team trader
Updated 27 Jul 2022

Moneyfarm was originally set up by Paolo Galvini and Giovanni Daprà in Italy to provide a digital wealth management service aimed at being family-friendly and as low cost as possible.

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Moneyfarm Promo Offers

Since its founding in 2011, Moneyfarm has expanded its operations to the UK in 2016 and offers simplified advice for a wide range of investment types. The company offers a diverse selection of asset classes, geographies and currency exposures, its aim being to minimise risk and maximise growth. For those looking to dip their toes in the world of investment, there is often a Moneyfarm promo code available.

  • Regular Moneyfarm promo
  • Mixture of investments
  • Low costs
  • Easy online access

Regular Moneyfarm promo

Planning to start investing can be a worrying time for those with little or no experience of the investment world. Investing used to be done almost on a face-to-face basis, certainly by phone. In today's wired world, the power of the internet has been harnessed by astute brokers to help even the totally inexperienced to start to get involved in investing. A good way to start off is to look at the range of promotions that brokers offer, and this is where it's important to look around for a promo broker comparison to see what deals are available.

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It's here that Moneyfarm can help both new and experienced traders with its regular and popular Moneyfarm promo code, which can be found on a number of voucher sites. It partly depends on timing as vouchers often have an expiry date and therefore codes need to be downloaded in time. An example would be Moneyfarm offering the opening of an account with them for £1 or the option of having up to £15,000 managed free for a year. When taking that first step into investing, it's important to know what the costs are up front and the level and types of fees that will be ongoing once the investment process begins. Moneyfarm works to be transparent with its fees and costs and is also keen to encourage new investors by being the best promo broker in the field.

Mixture of investments

Investing doesn't have to be difficult, though it can be as complex as a Moneyfarm client wants it to be. The company's plan is to make what can be a daunting adventure into a much simpler process for a family's money to be invested and grow so that the often complicated range of ways and places to invest becomes much more understandable. There are three straightforward steps to get on the investment ladder with Moneyfarm, the first of which is to open an online account, checking to see if there is a Moneyfarm promo code available to be used at the start of the process. Once signed up, a client completes a simple questionnaire and is then matched to a portfolio to set up an investor profile that the company's team of experts builds and manages on the client's behalf. The new account can then be funded either through the client's bank, online, or by setting up a direct debit. The latter method means that the client doesn't have to constantly remember to put some extra funds in, taking away some of the hassle that can be involved in transferring money. The more funds a client has to play with, the more chance there is of growing the portfolio and increasing its returns.

Investments cover a number of areas and include general investment, managed by the Moneyfarm team, stocks and shares ISAs, and pensions, offering plenty of alternatives at as low a cost as possible.

Low costs

Moneyfarm aims to keep its fees low in what is a competitive market. Research carried out in 2016 by Grant Thornton showed that Moneyfarm fees were considerably lower than the average wealth manager. The more that is invested, the lower the percentage rate charged by Moneyfarm. The first example is an investment of £10,000, where the Moneyfarm fees would be 0.70% with an average Exchange Traded Fund (ETF) cost of 0.30%, making an annual total of 1,00%. This is set against the research findings that the average annual costs for investing were 2.56%. Therefore a client investing £10,000 would be charged £8.33 per month as against the average £21.33 per month. Taking an investment of £30,000 sees the Moneyfarm fees reduce to 0.67%, with the ETF remaining the same, so there’s an annual cost of 0.97%. That would cost the client £24.17 per month as against the average of £64. Although one can invest considerably more, take the example of investing £100,000. The Moneyfarm fees drop to 0.62%, and the ETF cost remains at 0.30%, making a total annual cost of 0.92%, the average annual cost staying at 2.56%. On that level of investment, set against the average cost of £213.33 per month, the Moneyfarm client would pay £76.67.

It's important to look for a broker comparison to find the most competitive fees because it's all too easy to get drawn into a situation where fees could be much higher than expected or not as clear as they could be.

Easy online access

Investors now expect their online trading to be easy to access as well as easy to set up, and Moneyfarm has straightforward processes for when an investor signs up with them. Probably the most important thing that investors want to know is how safe their money is, especially given some of the past problems with banks and other financial institutions and with concerns also about online hacking. Moneyfarm protects clients' data with 256-bit encryption, and this is the highest standard of internet security. Although online access is easy and can also be done with a Moneyfarm promo code, a client's account is as safe as it can be. The procedure when signed up to Moneyfarm is that the company opens an account for the client at its UK custodian bank, and clients can withdraw or transfer money from their own bank account through their linked account. Assets cannot be transferred to other accounts, and those assets are kept separate from the custodian bank's assets under the UK's client money and assets rules (set out in CASS). All client assets that Moneyfarm is authorised to manage as a financial institution regulated by the FCA are kept separate from Moneyfarm's assets. In the unlikely event of a problem, a client's investments are eligible for compensation for up to £50,000 under the Financial Services Compensation Scheme. As with any investment, there are risks, and in terms of its online security, Moneyfarm has security processes in place to ensure that clients are well protected.

Investment strategies

Risk is built into any kind of investment and Moneyfarm works to minimise risks so that growth can be maximised. The company is well aware that anything that is paid on an investment eats into the returns, so it works to have a high-quality service with costs kept as low as possible. It takes time and skill to self-manage a portfolio of investments, with fluctuations in markets often throwing certain investments off balance, and Moneyfarm plans for the future by keeping on top of those fluctuations so that a portfolio can be rebalanced and monitored without the client having to do it.

Once a client profile has been established and goals have been set, the investment portfolio is built so that the client's objectives can be met. Portfolios are built using a mix of asset classes, which may include bonds, equities and commodities, and cover several geographic areas, the prime ones being the US, Europe and the UK but also using other emerging areas where thought appropriate. A number of different currencies are also reflected in a portfolio, including US dollars, pound sterling and Euro, and there are also investments in different sectors such as energy, banking and healthcare. ETFs are also used to build portfolios with these funds tracking the performance of an index or a pool of investments to get long-term growth for the portfolio.

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General investment

Keeping track of investments for traders who want to manage their own portfolios takes time and experience, and many traders prefer to have their investments managed by professionals. A General Investment Account with Moneyfarm can be used for a variety of requirements, whether it’s investing for retirement, looking for wealth growth, making a down payment on a new home or practically any financial transaction a client wants. This investment lets clients review their portfolio and track its performance as well as analysing the allocation of assets and withdrawing money when wanted. There are no additional costs for any of these.

Professional management is an important part of what Moneyfarm offers and can save a considerable amount in fees in relation to average wealth managers. With a portfolio built, monitored and, where necessary, rebalanced, clients can take advantage of hands-on support as well as getting a fully transparent service where they can see where they are invested and how those investments are performing as well as finding out how much they are paying in fees. Clients can also withdraw from this account at any time and without being charged additional fees. The ability to see how investments are performing is crucial because if something isn't going well, then warning signals can be sent to the management team for something to change.

Saving for the future

Planning for retirement may seem to be something that is done with a workplace pension scheme and therefore nothing else needs to done. However, good workplace pension schemes often don't exist, and especially for people who work as freelances or who work with zero hours contracts, saving for a pension can be problematic. The UK state pension is not very generous, and where possible, it pays to supplement both a workplace pension and state pension with some additional retirement funds. Investing in a pension is not that different from other ways of investing except that there are considerable tax benefits when setting up a pension scheme. Moneyfarm works with clients to understand what they want from a pension when they decide to retire, and to develop a portfolio that reflects personal goals as well as the time horizon in terms of accessing the funds.

Pensions need to be personalised as everyone's situation is different, and in the same way as other types of investments, a portfolio is built for a client's profile. Clear goals are set, and particularly important is the target date for taking a pension. Rules governing pensions have changed quite recently, and those who have a pension can start to access it aged 55 but need to be careful about how their funds are taken with an eye to tax issues.

Bottom Line

In our Moneyfarm review, we found that the company provides a wide range of investment opportunities and is transparent about the fees and charges for its services and products. Those interested in exploring its services further should always check to see if there is a Moneyfarm promo available, which could be very beneficial at the start of the relationship. Investment opportunities include stocks and shares ISAs, pensions and a general investment platform, all managed by professionals and taking the hassle out of dealing with the fluctuations of financial markets. In researched comparisons to average charges from wealth fund managers, Moneyfarm comes out as considerably cheaper whatever the level of investment, meaning that more money can go into the investment pot. As with any decision to go with a particular broker, investors should research their options, but Moneyfarm offers attractive opportunities and low costs that may well suit many looking to put their money into a secure online environment with good growth potential.

The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.