Today I’m going to be taking a look at one of the hottest new investing platforms to hit the UK market, InvestEngine. Founded in 2017 by Simon Crookall, Co-Owner of Gumtree, InvestEngine has built a fast reputation in becoming one of the cheapest platforms in the UK investing space.
In this article, I’m going to talk about exactly what InvestEngine offers, how you can sign up to the platform, the fee structures that make them the cheapest alongside some pro’s and con’s.
Finally, if you read the article until the end, I might just have an exciting sign up bonus for you too.
What InvestEngine Offer
InvestEngine offers commission free do it yourself and low-cost robo investing solutions to make investing easier and more accessible to the every day person looking to grow their wealth.
You made of heard of similar apps like Nutmeg and Wealthify, but InvestEngine also gives users the option to choose their own funds without using an active fund manager which is one of the reasons they are able to keep their fees so low.
From performing my initial research on the company, it’s become very clear that InvestEngine’s primary goal is to make investing more accessible to the everyday person with easy to use interfaces and a hands off approach.
The Sign Up Process
So when you sign up to InvestEngine for FREE which you can do by clicking here, the first choice you will have to make is what account type you would like to chose.
InvestEngine currently offers 2 types of accounts. Firstly you have an Individual Account or you have a Business Account. In most cases, the Individual will be most picked but if you are a business looking to invest spare capital, this could be an option too.
Your next decision that you will have to make is if you wanted to go for the Do It Yourself option or the Managed Portfolio.
If you selected Managed, then you will have two different types of portfolio to chose from.
1. Growth Portfolio
If your choice is Growth, you are typically going to be someone that is looking to invest for the long term and won’t need to rely on any income from your investments in the short term.
2. Income Portfolio
This is more aimed at somebody looking to invest to receive an estimated income of up to 3.8% a year .
One similarity between both portfolios is that InvestEngine will ask you a series of different questions based around the time you want to invest alongside the amount you can allocate and from there, they will have the information to build you a diversified portfolio.
Do it Yourself Portfolio
Now if you preference is to build a portfolio for yourself and you wanted full control of the funds that you invest into, then the Do it Yourself option is going to be the better choice for you. This option essentially will turn InvestEngine into your everyday investing platform but with additional benefits.
You will gain access to all of the top funds on the market with products from Vanguard, iShares and Invesco and investing fees will be non existent. (ETF costs apply)
Check out this great video created by the team at InvestEngine that explains exactly how this works.
Can you Trust InvestEngine?
A common and rightly asked question from new investors is can you trust a new and emerging platform like InvestEngine?
The short and simple answer is yes.
InvestEngine is authorised and regulated by the UK Regular, The Financial Conduct Authority (FCA) and is bound by their rules in the conduct of their investment business.
This means for investors that any investment of up to £85,000 may be eligible for Financial Services Compensation Scheme (FSCS). Please click here for more information.
Fees & Charges
At the time of writing this, InvestEngine is the cheapest ETF & Stocks & Shares ISA provider on the UK Market.
If you chose to opt for a “Do it Yourself” portfolio, then the annual charge is FREE and a managed portfolio will come in at just 0.25% for the year.
When it comes to ETF fees, they will have their own charges from external providers. Please click here to learn more about them but one thing that is impressive is that InvestEngine state clearly on their website that them do not profit from any of these external fees.
Below is a comparison chart comparing InvestEngines fees to its closest competitors.
Pros & Cons of InvestEngine
- Cheapest Investment platform currently in the UK.
- Easy to use app and website.
- Fractional Investing.
- Business Accounts.
- No individual share dealing yet (Apple, Facebook, Tesla).
- No Junior ISA or Lifetime ISA available yet.
- Flat fee structure – Fees do not reduce the more you invest.
- £100 minimum investment limit is higher than some competitors.
One thing to note is that whilst InvestEngine may be lacking some features that other apps may have, the team have publicly stated that most of these features will be coming in the short term future.
InvestEngine Customer Reviews
InvestEngine currently has 4.4 stars on TrustPilot and is a verified company.
Overall, I think InvestEngine is breaking down the barriers for when it comes to the everyday person looking to grow their wealth. They are making investing easier, more accessible, cheaper and for me, I can see them becoming a leader in the space over the coming years.
For full discloser, I will not be opening a ISA with them during this year as I have already committed to Vanguard but it’s looking very likely that InvestEngine will take my pick for when it comes to my renewal in April 2023. I have just opened a personal account and I will be investing any surplus cash into my favourite ETFs.
Sign Up Bonus
Currently, InvestEngine has a special sign up offer where if you invest at least £100, you will receive £25 (Ts &Cs apply). Get yourself a free £25 when you invest at least £100 by clicking here.
Please note, you will have to invest at least £100 to get the bonus and you must keep at least £125 invested in your portfolio for 1 year. If you withdraw below the £125 limit, InvestEngine will reclaim the £25 bonus.