Auto investment apps UK use algorithmic technology to determine how much you can afford to invest on a regular basis in order to automatically set that amount to one side and invest it in the stock market.
My guide compares the three investment apps in the UK that allow you to automatically invest, including platform fees, investment options, and features, so you can select the best option for your unique circumstances.
Also consider: Best Robo Advisors UK
Best auto investment apps in the UK:
eToro
- Minimum deposit £10
- 0% commission when you buy and sell stocks
- One of the best investment apps in the UK for beginners and low-cost trading
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
Wealthify
- Start investing from £1
- Choose an investment style that’s right for you
- Ethical investments available
As with all investing, your money is at risk. The value of your portfolio can go down as well as up and you could get back less than you put in. The tax treatment of your investment will depend on your individual circumstances and may change in the future. You should seek financial advice if you are unsure about investing.
InvestEngine
- Suitable for both experienced investors and newcomers.
- £25 Welcome Bonus when you invest £100 (T&Cs apply)
- A great investment app with themed portfolios
Bonus will be paid after 12 months and an initial investment of at least £50 in a single portfolio. With investment, your capital is at risk. This could mean the value of your investments goes down as well as up.
Nutmeg
- Start investing with £500
- This investment app does the investing for you with ready made portfolios
- 6 Months 0% Portfolio Management Fees
Freetrade
- Get a free share worth between £3-£200
- Commission-free investing
- Stock universe of 6,000 stocks and ETFs
When you invest your capital is at risk, the value of your investments can go down as well as up and you may get back less than what you invest. *Other charges apply. Free share terms and conditions apply. The probability is weighted, so more expensive free shares will be rarer.
MoneyFarm
- Best for “set-and-forget” investors
- Diversification opportunities within your investment
- Fees as low as 0.35% for balances over £100,000
Capital at risk.
CIRCA5000
- Get £5 free when you sign up
- Get a further £15 when you refer a friend!
- Great investment app for impact and ESG investing
Capital at risk.
Plum
- Open an account and connect to your primary bank account in minutes
- Start automatic saving and round-ups
Capital at risk.
Chip
- Gain access to the market-leading interest rate of 1%
Capital at risk.
Wombat
- One of the cheapest ISAs available
- Get £20 Free when you open an account and deposit £10
- Auto invest in themed ETFs
Capital at risk.
Plum
Part of the appeal of Plum is how quickly you can open an account, link to your primary bank account, and start investing. Plum uses complex algorithms in order to identify how much you can afford to save. It will squirrel money away in the background without you even noticing it and there are several accounts available for you to choose from including interest-bearing savings accounts, personal pensions, and investment accounts. Once you have chosen your actively managed funds you have the option to choose how your savings are split between the funds.
There is a monthly subscription fee, however, this is on the low end of the scale when compared to other financial service providers.
- Stocks and shares ISA
- General Investment Account
- SIPP
- Plum Basic
- Easy Access Interest Pocket
- Earn interest
- Automated savings and rounding up feature
- Lost money alerting you when you are overpaying on bills
- Unlimited withdrawals
- Multiple pockets for targeted saving
- Invest in a choice of funds
- Gamify your savings with the 52-week challenge
- Goals to set saving targets for each of your pockets
- Cashback when you shop at partner retailers
- Diagnostic reports to analyse spending
- Money maximiser to turn your monthly paycheck into a weekly budget while earning the maximum interest
- Withdraw money easily to your main bank account
- Stocks and shares ISA: £1 per month (first month free)
- Fund charges: 0.48% average
Plum have 12 funds to choose from including
- Tech Giants
- The Medic
- Rising Starts
- Balanced Ethical
- Clean and Green
- Growth Ethical
- American Dream
- Beat of British
- European Essentials
- Slow and Steady
- Balanced Bundle
- Growth Stack
Plum are also on track to release individual stocks, giving more experienced investors and those wanting to try their hand at picking their own investments more options.
Chip
Like Plum, Chip uses artificial intelligence and complex algorithms to analyse your income and expenditure so it can identify an unnoticeable sum of money to put to one side for you.
Opening your account and subsequently connecting to your primary bank account can be completed in a couple of minutes if you already have your banking app on your smartphone.
Chip offers a higher interest rate than Plum however, their investment ISA comes at a higher cost which I will go into in more detail under ‘Cost’. There is a decent selection of investments that can be aligned to your risk level and Chip has the ability to transfer a lump sum on paydays to boost your savings.
The main difference between Chip and Plum is that currently, only Plum allows you to auto-save directly into your investment account. At Chip, you can only save into their savings accounts and then move the funds manually into your investments. Of course, this is something that Chip are looking to rectify however at this time, this definitely puts them on the back foot.
- General investment account
- Stocks and shares ISA
- Allica Easy Access Account with 1% AER
- Daily interest paid
- Unlimited withdrawals
- Auto-save technology
- Savings goals
- BlackRock investment funds
- Payday put away feature
- Standard Chip – Free
- ChipX – £3 per 28 days
- Platform fee – 0.5% Standard, 0.25% ChipX
The three Chip Standard funds are:
- BlackRock Cautious
- BlackRock Balanced
- BlackRock Adventurous
And with ChipX you can access:
Cautious X:
Average annual return: 7.78%*
Risk rating: 4/7
Official name: MyMap4.
Balanced X:
Average annual return: 9.88%*
Risk rating: 5/7
Official name: MyMap5.
Adventurous X:
Average annual return: 11.68%*
Risk rating: 5/7
Official name: MyMap6.
As well as the following Ethical funds
Ethical X:
Average annual return: 13.00%*
Risk rating: 5/7
Official name: MyMap 5 Select ESG Fund
Clean Energy:
Average annual return: 27.51%*
Risk rating: 6/7
Official name: iShares Global Clean Energy UCITS ETF
And two Thematic funds
Emerging Markets:
Average annual return: 20.87%*
Risk rating: 6/7
Official name: BlackRock Emerging Markets Fund
Healthcare Innovation:
Average annual return: 17.03%*
Risk rating: 6/7
Official name: iShares Healthcare Innovation UCITS ETF
Wombat
Get £10 free when you invest £10
Another provider that allows auto-investing is Wombat. Wombat represent a very low cost option for investment amounts of under £1,000. The other way that Wombat stands out is that they allow investors to invest in line with their interests and values with over 20 themed based portfolios to choose from. They also provide access to fractional shares.
Wombat were awarded Investment Tech of the Year 2022 at the UK Fintech Awards and are quickly becoming one of the fastest growing platforms in the UK. Their ISA is completely free for accounts under £250 which makes them one of the most competitive options available.
Wombat offer three main accounts which include:
- General Investment Account
- Stocks and Shares ISA
- Fractional investing
- Round ups
- Auto-invest
- Commission free trading
- Global stocks and shares
- Buy/sell orders
There are two main plans at Wombat however, you will need to pay the £1 a month fee to access auto-investing.
Standard – £1 Per Month
- Unlimited commission-free trading
- Once a day buy/sell orders
- Fractional shares from £10
- Selection of US, UK, EU stocks
- 20+ Exchange-Traded Funds (ETFs)
- Auto Investments
- Round Ups
- Best for long-term investments
Instant – Free
-
- No paywalls. Trade as much as you like in a portfolio of global stocks
- Unlimited commission-free trading
- Popular US stocks and shares
- Instant buy/sell orders
- Fractional shares from £10
- Best for your active portfolio, to capture market opportunities
Wombat provide 20 themed based portfolios made up of several ETFs. Each investment theme is matched with a risk level, represented by chillis so you can ensure you invest in line with your appetite for risk.
As well as this Wombat offer investments in fractional shares, providing access to companies such as Netflix, Microsoft, Facebook and Amazon.
What is automatic investing?
Automatic investing is the process whereby you link investment apps to your primary bank account in order for them to transfer an affordable sum of money into a pre-selected fund on your behalf. They represent a truly hands-off approach.
How do I invest in stocks automatically?
Currently, there are no options to invest in stocks automatically however, Plum are working at releasing individual stocks. It is prudent to remember that auto-saving into a diversified fund can help to mitigate your exposure to risk, whereby individual stocks could represent a riskier option, especially for a novice investor.
Pros of auto-investing
- Drip feeding your money into the stock market in this fashion can actually help to mitigate some of your risk when compared to investing a lump sum.
- These mobile apps can turn pennies into pounds and pounds into holidays without any effort on your part.
- Investing represents a way to beat inflation in the current climate although as always with investing, the value of your investments can go down as well as up.
Cons of auto-investing
- The monthly subscription fee can start to eat away at small investment pots and therefore it is wise to build your pot in a savings account before moving it into investments.
- Investing should always be a long term endeavour and you should be prepared to lock your money away for a minimum of years so this is not a solution for short term savings goals.
Auto Investing Apps UK FAQs
Who should use an auto-investment app?
Anyone can use these services and benefit from them however, they are an ideal solution for anyone who struggles to save and is looking to beat inflation. This represents a truly hands-off approach and even complete novices should find the process very quick and easy.
That being said, it is wise to build a substantial sum, using the free auto-save feature, before committing to the annual platform fee which could end up eating away at your gains should you have a small starting pot.
Are auto-investment apps safe?
Yes, the two apps that I have detailed in this guide are both completely safe with appropriate levels of authorisation and cover by the Financial Services Compensation Scheme. The Financial Services Compensation Scheme will cover any financial losses you incur as a result of the provider going bust however, it will not reimburse you should your investments fall in value.
Should you be considering any other financial service providers it is prudent to always check the level of security and authorisation for that particular provider.
