There are three main costs and charges to be aware of when investing with Wealthify. You will pay a management fee to Wealthify, fund charges to your fund providers and transactions costs will also apply.
Wealthify Management fee
Wealthify charges a simple annual fee based on the value of your investments. This fee covers everything we do, including setting up your account, looking after your money and rebalancing your plan.
We invest your money in carefully selected, low-cost investment funds from providers such as Vanguard and Blackrock. These incur a small annual charge, which is taken at source by the fund provider.
These costs are incurred as a result of the process of buying and selling investments and as such must be considered as part of the overall cost of investing. Learn more about transaction costs below.
To get an idea of what your fee would be, why not check out our Fee Calculator.
You can reduce your fee even further if you join a Wealthify Circle.
Your annual management fee covers everything we do for you, including building your plan and managing it on an ongoing basis, buying and selling investments on your behalf, regular rebalancing to keep your investments on track and providing a 24/7 online service.
What we do:
The management fee covers everything WE do for you, however there are two separate investing costs to be aware of: Fund Charges and Transaction Costs.
Transaction costs are not strictly a charge, rather they are a consequence of the investing process. Nevertheless, they do slightly reduce your returns, and therefore must be considered as part of the overall cost of investing.
One example of a transaction cost is a ‘spread cost’ and these are the type that apply to Wealthify customers. Spreads are incurred because of the difference between the price at which we can buy an investment and the price at which we can sell it. Say, for example, during a normal trading day, shares in ‘Company A’ are available to buy at 494 pence. At that same point, we might only be able to sell at 492 pence. This difference, whilst sometimes small, can affect the overall value of your investments over time and is the reason you must take transaction charges into account.
Since we don’t deduct them directly, and due to their nature, we are unable to include in the annual management fee which covers our day-to-day management of your investment plans.
Wealthify Management fee: Our management fees are quoted on an annual basis, to make them clearer for you, but we take them on a monthly basis, directly from your Wealthify account. You can see exactly what fee you pay each month by looking in your recent transactions list on your dashboard.
Fund charges: are taken at source by the companies (like Blackrock, Fidelity and Vanguard) who manage the funds into which we invest your money. Fund charges vary between funds and providers, so we quote them to you as an average annual charge. Because they are taken at source, they are not listed in your recent transactions, but they are a part of the overall annual cost of your investing.
Transaction costs: are not actually taken directly from your account by us, or by your fund providers. In simple terms, they are a consequence of the investing process and are incurred each time we buy and sell investments on your behalf. They must therefore be considered as part of the overall annual cost of investing. Learn more about transaction costs.
Our management fees are quoted annually, to make them easier to understand, but they are collected on a monthly basis from your Plan. Your monthly fee is calculated as 1/12th of your annual fee, so a customer on the 0.7% fee band will pay 1/12th of 0.7% each month.
Your actual fee is calculated daily, based on the value of your Wealthify Plan(s) at the end of each day of the month, so that you are only charged for the days of the month that the money is in your account.
Circles can help by reducing the annual management you pay Wealthify. If you join or start a Wealthify Circle and get two or more members, you will qualify for a discount on your Wealthify annual management fees. The bigger your Circle, the more discount you will receive.
Please note: Circles will not reduce your fund charges or transaction costs.
Wealthify uses technology to keep costs low. Our algorithms automate some of the investment process, like market monitoring and asset selection, which means we don’t need to employ expensive fund managers to do it. Also, we use mostly passive investment funds in your plan, which are some of the lowest cost funds available, and we’re fully online, so we don’t spend time on costly one-to-one client meetings. We pass all of these savings straight back to our customers through lower fees.
Yes, any VAT you are eligible to pay is included in your annual fee.
In addition to the Wealthify annual fee, you will be charged an annual fee by the providers of the investment funds that we use to build your Plan. This charge is taken at source by the fund providers, so you don’t pay it directly and it wont appear in the transactions list on your dashboard. It may also change slightly over time, depending on the mix of funds we use in your plan (learn more about Fund charges below).
You will also incur transaction costs for buying or selling the investments in your Plan.
If you wish to transfer your investments from Wealthify to another provider without us turning them into cash for you, there may be a small fee. Please check our Terms and Conditions for the transfer costs.
The fee you pay depends on the total value of your investments which, in turn, depend on the performance of the markets and regions into which you’re invested at any given time, which can go down as well as up. It also depends on whether you add or withdraw money during the month. Therefore, it’s impossible to predict what your plan will be worth in any given month and consequently what fee you’ll pay. You can use our fee calculator to give you a good idea of what you might pay in the first month.
No, your annual management fee includes everything that Wealthify does for you, including the services provided by Winterflood Securities.