Moneyfarm’s simple charging structure means you pay two ongoing charges on your investments, our management fee and the fund charge.
Management fees are charged based on the value of your account, rather than per portfolio, so by consolidating your investments you can benefit from a potentially lower management fee. The management fee covers all charges related to managing your investments and is the largest part of the total costs of investing. In the traditional wealth management industry, it can often be difficult knowing exactly how much you pay for your investments. At Moneyfarm we believe it’s crucial this is transparent for our investors.
Fund costs are not included in the annual management fee and won’t appear as a charge, instead these are factored into the performance of your investment. The average fund charge is 0.2% per annum at Moneyfarm. The market spread effect also impacts your investments. This is a characteristic of trading on the financial markets and represents the difference between bid and ask (buying and selling) prices for an investment at a specific time. This can be 0.10% at Moneyfarm (assuming the average between our Classic and ESG allocations, we sell 40% of the assets in your portfolio and replace them with new assets during the year), but you’ll always see the real price you buy and sell assets at. You can find out how much you would pay on our pricing page.
