Nutmeg – Britain’s best-known robo-advisor, a business that invests your money automatically – is cutting the fees it charges on your first £25,000 to just 0.75% a year (down from 0.95%).
A report last year said Nutmeg only had £400m worth of people’s money invested and around 100,000 users, which might sound a lot, but compare that to its US rival Betterment which has $5bn ‘under management’.
More recently in the UK a wave of Nutmeg competitors have arrived, under-cutting even Nutmeg’s new cheaper fees this morning.
Wealthify charges just 0.7% to its smallest investors (under-cutting Nutmeg’s 0.75%), Moneyfarm charges no management fees on your first £10k, and even larger banks are getting in on the action, like UBS which has rolled out its own online robo-advisor called SmartWealth.
Source: The Memo. Read full article here.