A host of robo-advisers and there’s even a robo-cop!
A TRUE robo-adviser will provide a fully automated service and regulated advice, allowing investors to turn to the Financial Ombudsman Service if things go wrong. Here is our league of roboadvisers, with the number of heads based on the level of automation.
MONEY ON TOAST
Regulated automated advice offering five portfolios to match different risk profiles. The cost is typically 1.5 per cent a year.
FIVER A DAY
More cyborg than robot, this regulated service has humans on hand and is aimed at those with simple needs, giving them access to ten portfolios. The annual cost is typically 0.82 per cent.
WEALTH HORIZON
Regulated automated advice giving access to ten passive, or tracker, funds. It uses the same technology as Fiver a Day and offers access to a helpline of qualified advisers for nervous investors. Chief executive Chris Williams says: ‘People like the reassurance of being able to contact someone.’ The cost is about 1 per cent a year.
SIMPLYEQ
Regulated automated advice giving access to 30 portfolios. The choice depends on your attitude to risk and if you have a preference for passive, active or ‘positive impact’ – or socially responsible – funds. People are on hand initially if preferred. The total cost is between 0.57 and 1.54 per cent a year.
WEALTH WIZARDS
Regulated automated advice offered through the workplace via apps. Provides access to portfolios invested in low-cost passive funds. People on hand – including a referral to a financial planner – if required. Charges vary depending on size of investment, starting at £65 a year plus fund charges. Uses algorithms but stops short of giving advice. Essentially a do-ityourself service matching investors to ten portfolios ranging from cautious to aggressive, invested in low-cost Exchange Traded Funds. Maximum cost 1.29 per cent a year.
HARGREAVES LANSDOWN
This firm’s Portfolio+ service guides (not advises) investors to one of six portfolios, from conservative to adventurous. Other brokers offer similar guidance services. The Hargreaves service costs from 1.8 to 1.9 per cent a year.