Written by Reginald Chan on September 23, 2020

What Everyone Should Know About MoneyFarm

The advancements in modern technology paved the way for several processes to become more convenient because they are already made available in digital channels. For instance, in the retail industry, customers can now order any product they need online and have it delivered right in front of their doorstep. They also have the option of paying for these products through online channels as well. Likewise, investing is already made more seamless through digital avenues and the emergence of various robo-advisors like Moneyfarm.

What Is Moneyfarm?

There are now low-cost automated investment platforms that allow you to yield an optimized long-term portfolio. One platform is Moneyfarm, which is based on an algorithm that can provide you with a personalized investment plan that you can readily put into action, much like a human, a financial advisor would. The beauty of this platform is that you will be able to implement your course of action in terms of your investment anywhere you are, even in the comfort of your home, as long as you have a stable and reliable internet connection.

How Does Moneyfarm Work?

Generally, investing in stocks and shares yields far better revenue than what your money can earn when you leave it in your savings accounts or even when you go for bonds. However, you need to keep in mind that, along with a greater return, comes greater risk. In parallel to this, to ensure that you will be able to earn a decent sum from your investment, you also need to have patience because growing your money through the stock market can take years. To use the service of online investment platforms, you need to sign up and answer questions through the form that they provide. Your answers to these questions will help the platform determine your investment risk appetite, which is essential in creating your portfolio. Some of the questions that you will need to answer include your reason for investing, the amount that you are willing to invest, the amount that you can add to your investment regularly, as well as your main source of income. 

From there, the platform will assign you to one of the six risk profiles available. After this, you can already open an account in the platform and fund it accordingly, either through a bank transfer or a credit card transaction.

Services Offered by Moneyfarm

Accounts That Can Be Opened

The online investment platform offers three types of accounts that you can open, which includes the ISA, pension, and general investment account. Each of these accounts has its specific features and advantages.

  • ISA

One of the types of accounts that you can open through the platform is an Individual Savings Account (ISA), which is a tax-free form of saving and investing. However, you need to be at least 16 years of age before you can open an ISA. Just keep in mind that with ISA, there is a cap on how much you can invest in stocks and shares, but you have the liberty of transferring your existing ISAs into it.

  • Pension Account

If you are preparing for your retirement, then you should open a pension account through the platform. With this account, all your investments are managed by an investment team to fund your retirement. Rest assured that their investment decisions are based on your portfolio that is a culmination of your savings goals, risk appetite, planned retirement date, as well as the amount that you can invest.

  • General Investment Account

A general investment account is very much similar to an ISA, only that all your earnings are taxable. Nonetheless, you will be able to use this account for all your investment needs, regardless of whether your goal is to save up for the down payment of your new home or start a business.

Customer Support and Advice Center

While Moneyfarm is regarded as a robo-advisor, it is still backed up by real human support. This means that you get the best advice because of the team of people who will be able to provide answers to your queries as necessary. Rest assured that the team of portfolio experts are seasoned and knowledgeable investors who spend their time monitoring the performance of various portfolios. In this case, they can modify the portfolios accordingly to ensure that these reap the maximum returns.

Advantages of Using Moneyfarm

Aside from the convenience that this online investment platform can give you, below are some other advantages of using this robo-advisor.

  • Low Fees

Compared to other investment platforms currently in the market today, Moneyfarm collects a much lower operating and maintenance cost. Aside from low fees, they also impose a low minimum requirement, allowing you to start investing for as low as a pound. However, you may find other investment platforms impose a no minimum deposit. The platform is also tax efficient, for as long as you go with an ISA account instead of a general investment account.

  • Ease of Use

Another notable benefit of using an online investment platform is the simplicity of doing so. You have the option of using the platform through a web browser on your computer or installing an app on your smartphone or mobile devices. No, you don’t need to be tech-savvy to navigate through the site or through the app to find your way because of the intuitive interface that they have integrated it with. Because of this, you will be able to grasp how to use the features of the platform immediately. The great part is that you can easily get in touch with their customer service or human support in case you need to.

The Bottomline

In this modern-day and age, there is no stopping you in leveraging online investment platforms to grow your money. However, you need to consider that, like any investment vehicle, these platforms have their benefits that you can take advantage of, as well as drawbacks that you need to work with, such as limited investment opportunities. The key is in identifying your purpose for investing to ensure that using these types of platforms will suit your needs.

Article written by Reginald Chan
A meticulous entrepreneur by nature, Reginald is a sought-after success coach, digital marketing consultant and TEDx speaker from Asia. Currently, he teaches others how to make money online for free.

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