eToro launches stocks and shares Isa with Moneyfarm
eToro launches its first Isa after joining forces with digital asset manager Moneyfarm to help clients choose investments
Investment platform eToro has joined forces with online asset manager Moneyfarm to launch a share Isa for its UK clients.
Unlike many of Isa’s offerings, the product is managed at our discretion. This means that customers can deposit their money into the Isa account, but Moneyfarm manages the investments on their behalf.
The globally diversified discretionary portfolios are risk-rated and clients will be matched with the appropriate portfolios, eToro said.
It is the first equity Isa to be launched by eToro, which has built a base of UK clients who trade and invest in stocks and ETFs with no transaction fees.
eToro has joined forces with Moneyfarm to launch shares of Isa for its UK clients
All fees for the eToro Isa are in line with Moneyfarm’s usual fees.
These step down as the portfolio grows in size, ranging from 0.75 per cent for actively managed portfolios below £10,000, to 0.6 per cent for investments between £50,000 and £100,000 and to 0.35 per cent for investments above £500,000.
eToro told This Is Money that its Isa is a “soft launch,” with integration levels improving with its platform and offerings expanding over the coming months.
Daniel Giddings, head of business development at Moneyfarm said: ‘This is a phased launch where we will closely integrate the propositions over time.
“What is important initially is to be able to provide an Isa solution in a timely manner to eToro and its clients who offer portfolios with discretionary risk assessment.”
Any customer who opens their Isa before 23:59 GMT on April 5, 2023 can take advantage of a free introductory Moneyfarm period of up to 12 months.
It is the second partnership Moneyfarm has announced this year, after teaming up with M&G to offer a new investment service for younger investors called &me.
Last week, M&G announced that Saxo Markets will provide access to mutual funds for &me clients, with access to fund managers such as Federated Hermes, iShares, Pictet and Wellington.
Saxo is Moneyfarm’s custodian and has been working with the asset manager for eight years.
eToro is one of the leading investment platforms, with over 3 million clients in the UK alone.
The move to the Isa marketplace brings it in line with the other DIY investment platforms, such as Hargreaves Lansdown, Interactive Investor and Freetrade.
Currently, eToro offers no commission on global stocks and ETFs, no account fees, and absorbs stamp duty for UK stocks.
Dan Moczulski, managing director of eToro UK said: “eToro UK clients will now have the convenience of opening a Stocks and Shares Isa with Moneyfarm through our app, while continuing to use the eToro app to invest in a range of assets from stocks and crypto to commodities and ETFs.
“We will continue to expand our Isa offerings over time and we look forward to seeing how our customers respond.”
The app also offers separate trading of high-risk CFDs, which This Is Money advises individual investors to avoid (67 percent of clients lose money).
Compare the best DIY investment platforms and stocks Isa
Online investing is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you.
When it comes to choosing a DIY investment platform, stock Isa or a general investment account, the range of options seems overwhelming.
Each provider has a slightly different offering, charging more or less fees for trading or holding stocks and giving access to a different range of stocks, funds, and mutual funds.
When weighing up the right one for you, it’s important to look at the service it offers, along with handling fees and transaction fees, plus any other additional fees.
To help you compare the best investment accounts, we’ve put together the facts and put together a comprehensive guide to choosing the best and cheapest investment account for you.
We highlight the key players in the table below, but we encourage you to do your own research and consider the points in our full guide linked here.
>> This is Money’s full guide to the best investment platforms and ISAs
The platforms below have been independently selected by This is Money’s specialist journalists. If you open an account through links marked with an asterisk, This is Money earns an affiliate commission. We will not allow this to affect our editorial independence.
| Management fees | Loads notes | Fund trading | Default share, trust, ETF trading | Invest regularly | Dividend reinvestment | ||
|---|---|---|---|---|---|---|---|
| AJ call* | 0.25% | Max £3.50 per month for stocks, trusts, ETFs. | £1.50 | £9.95 | £1.50 | € 1.50 each | More detail |
| Bestinvest* | 0.40% (0.2% for pre-built portfolios) | Account fees reduced to 0.2% for turnkey investments | Free | £4.95 | Free for funds | Free for income funds | More detail |
| Charles Stanley directly | 0.35% | No share platform fees on any transaction in that month and an annual cap of £240 | Free | £11.50 | na | na | More detail |
| Fidelity* | 0.35% on funds | £45 fee up to £7,500. Max £45 per annum for stocks, trusts, ETFs | Free | £10 | Free funds £1.50 shares, relies on ETFs | £1.50 | More detail |
| Hargreaves Lansdown* | 0.45% | Capped at £45 for stocks, trusts, ETFs | Free | £11.95 | £1.50 | 1% (£1 min, £10 max) | More detail |
| Interactive investor* | £9.99 per month, or £4.99 under £30,000, £12.99 for Sipp | £5.99 a month back in free trade credit (does not apply to a £4.99 subscription) | £5.99 | £5.99 | Free | £0.99 | More detail |
| iWeb | £100 one-off | £5 | £5 | na | 2%, up to £5 | More detail | |
| Etoro* | Free but no Isa or Sipp | Investment account offers stocks and ETFs. Beware of high risk CFDs on a trading account | Not available | Free | na | na | More detail |
| Free trade* | Free for Basic account, £4.99 per month for Standard with Isa | Freetrade Plus with more investment and Sipp is £9.99/month inc. Is a fee | No funds | Free | na | na | More detail |
| Forefront | 0.15% | Only Vanguard Funds | Free | Free Vanguard ETFs only | Free | na | More detail |
| (Source: ThisisMoney.co.uk Jan 2023. Administration fees may be levied monthly or quarterly | |||||||