Fintech innovation has led to a paradigm shift in our relationship to money and investment and has given consumers unprecedented control over their own financial destiny. The introduction of Finance Apps that can be downloaded to your smartphone have transformed personal finance management.
Regulation of Personal Finance Apps
Before downloading any Finance Apps, retail investors should always confirm that the financial services companies behind the Apps are authorised by the Financial Conduct Authority (FCA) to provide regulated products and services.
This means that they have been granted permission to accept deposits, provide credit to consumers, give investment advice and arrange deals in investments. This can be done by searching the FCA Register.
Being FCA-regulated usually means that your investments are covered under the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000 (subject to meeting specified eligibility criteria).
Personal Finance Apps
We have identified a selection of Personal Finance Apps currently available for download with links to independent review sites so you can see what users are saying:
Wealthsimple
Wealthsimple is a Canadian based online investment management service that was founded in 2014. It has also established a UK operation which is authorised by the Financial Conduct Authority (FCA) to provide regulated products and services.
Wealthsimple is an App which allows users to buy and sell shares, Exchange-Traded Funds (ETFs), foreign currencies and Cryptocurrencies. Its key feature is that no commission fees are charged on these trading activities and you can invest from as little as £1.
Wealthsimple has three account options:
- “Basic” for net deposits up to £100k for which a fee of 0.7% is charged;
- “Black” for net deposits between £100k and £500k with fees of 0.5% and
- “Generation” for net deposits of more than £500k.
Each account incurs additional fees averaging 0.2%
The Wealthsimple App is available to download through the Apple store and Google Play and the latest Trust Pilot reviews for the App can be seen here.
An independent review of the App has also been carried out by NerdWallet – a US-based personal finance company – and they have awarded the App a 4.5-star rating. You can read the review here.
Nutmeg
Nutmeg Saving and Investment Limited is a UK online investment management company which was established in September 2012. It is authorised by the FCA to provide regulated products and services.
While Nutmeg’s main product offering is ISAs; they also offer general investment and personal pension accounts. Nutmeg’s investing preference is to use low-cost Exchange-Traded Funds (ETFs) which track stock market indices.
Nutmeg charge an annual management fee which starts at 0.75% of your portfolio value but can be as little at 0.25% for portfolios valued at over £500k.
In common with other asset management companies, there will be additional underlying costs charged within the fund you are invested in (for example transactions fee for buying and selling shares).
The Nutmeg App is available to download through the Apple store and Google Play and the latest Trust Pilot reviews for the App can be seen here.
The personal finance website Your Money awarded Nutmeg the best online Stocks and Shares ISA Provider 2015 to 2019. For a more in-depth review of Nutmeg please click here.
Wealthify
Wealthify was founded in May 2014 and is authorised by the FCA to provide regulated products and services. Aviva, the savings and investment company acquired a majority interest in the Wealthify group in February 2018.
Wealthify gives retail investors the option to invest in a range of different Stocks and Shares ISAs, personal pensions and general investment accounts and accounts can be opened from a minimum of £250. Investors capital is predominantly invested in Exchange-Traded Funds (ETFs).
Wealthify charges an annual management fee of 0.6%, paid monthly from the balance of your account. You can also expect additional investment costs to be 0.29%. There are no charges for deposits, withdrawals or transfers.
Wealthify also offers the option of an ethical investment plan but these will have higher annual fees of 0.65%.
The Wealthify app is available to download through the Apple store and Google Play and the latest Trust Pilot reviews for the app can be seen here.
For a more in-depth independent review of Wealthify, please click here.
Moneybox
Digital Moneybox Limited (DML) was founded in August 2015 and is authorised by the FCA to provide regulated products and services. Moneybox is a registered trademark of DML.
Moneybox offers cash savings products and long terms investment products. Retail investors have three risk profile choices: “Cautious”, “Balanced” and “Adventurous“.
Investors have the option to invest in Stocks and Shares ISAs and can open up a pension or general investment account with an investing focus on ETFs.
Moneybox has zero monthly subscription fees and levies annual management fees of 0.45% for balances up to £100,00 and 0.15% for balances over £100,000.
The Moneybox app is available to download through the Apple store and Google Play and the latest Trust Pilot reviews for the app can be seen here.
Moneybox is an award-winning finance App including Best for Beginners in the 2019 Consumer Investment awards. For an independent review of Moneybox, please click here.
