eToro launches stocks and shares Isa with Moneyfarm

eToro launches its first Isa after it joins forces with digital wealth manager Moneyfarm to help customers pick investments

Investing platform eToro has joined forces with online wealth manager Moneyfarm to launch a stocks and shares Isa for its UK customers.

Unlike many other Isa offerings, the product will be discretionarily managed. This means customers can put their money into the Isa account, but Moneyfarm will manage the investments on their behalf.

The globally diversified discretionary portfolios are risk rated and customers will be matched with the correct portfolios, eToro said.

It is the first stocks and shares Isa to be launched by eToro, which has built up a base of UK customers who trade and invest in shares and ETFs with no dealing fees.

eToro has joined forces with Moneyfarm to launch a stocks and shares Isa for its UK cust

All of the fees for the eToro Isa will be in line with Moneyfarm’s usual fees.

These step down as portfolio sizes increase, ranging from 0.75 per cent for actively managed portfolios under £10,000, to 0.6 per cent on investments between £50,000 and £100,000 and down to 0.35 per cent on investments over £500,000. 

eToro told This Is Money its Isa is a ‘soft launch’, with integration levels with its platform improving and the offering expanding in the coming months. 

Daniel Giddings, head of business development at Moneyfarm said: ‘This is a phased launch that will see us closely integrate the propositions over time.

‘What is important initially is to be able to provide an Isa solution to eToro and its customers providing discretionary risk rated portfolios in a timely manner.’ 

Any customer who opens their Isa before 23:59 GMT on 5th April 2023, can benefit from an introductory Moneyfarm fee-free period of up to 12 months. 

How much will eToro’s new Isa cost?

All of the fees for eToro’s tie-up with Moneyfarm are usual Moneyfarm fees. 

For actively managed portfolios under £100,000:

  • 0.75% on investments up to £10,000 (minimum investment is £500)
  • 0.70% on investments between £10,000 and £20,000
  • 0.65% on investments between £20,000 and £50,000
  • 0.60% on investments between £50,000 and £100,000

Over £100,000:

  • 0.45% on investments between £100,000 and £250,000
  • 0.40% on investments between £250,000 and £500,000

0.35% on investments over £500,000

For fixed allocation portfolios the charges are: 

  • 0.45% on all investments up to £100,000 (minimum investment is £500) 
  • 0.35% on investments between £100,000 and £250,000 
  • 0.30% on investments between £250,000 and £500,000 

0.25% on investments over £500,000 

It is the second collaboration Moneyfarm has announced this year, having teamed up with M&G to provide a new investment service for younger investors called &me.

Last week, M&G announced Saxo Markets will provide access to mutual funds for &me customers, with access to fund managers such as Federated Hermes, iShares, Pictet and Wellington.

Saxo is Moneyfarm’s custodian bank and has been working with the wealth manager for the last eight years.

eToro is one of the leading investment platforms, with more than 3million customers in the UK alone.

The move into the Isa market, brings it in line with the other DIY investment platforms, such as Hargreaves Lansdown, Interactive Investor and Freetrade.

Currently, eToro offers has zero commission on global shares and ETFs, no account fees and absorbs stamp duty costs for UK stocks. 

Dan Moczulski, UK managing director of eToro said: ‘eToro UK clients will now have the convenience of being able to open a Stocks and Shares Isa with Moneyfarm via 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 build our Isa offering over time and we look forward to seeing how our clients respond.’

The app also offers separate high risk CFD trading, which This Is Money advises individual investors to avoid (67 per cent of customers lose money). 

Compare the best DIY investing platforms and stocks & shares Isa

Investing online 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 investing platform, stocks & shares Isa or a general investing account, the range of options might seem overwhelming. 

Every provider has a slightly different offering, charging more or less for trading or holding shares and giving access to a different range of stocks, funds and investment trusts. 

When weighing up the right one for you, it’s important to to look at the service that it offers, along with administration charges and dealing fees, plus any other extra costs.

To help you compare the best investment accounts, we’ve crunched the facts and pulled together a comprehensive guide to choosing the best and cheapest investing account for you. 

We highlight the main players in the table below but would advise doing your own research and considering the points in our full guide linked here.

>> This is Money’s full guide to the best investing platforms and Isas 

Platforms featured below are independently selected by This is Money’s specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence. 

Admin charge Charges notes Fund dealing Standard share, trust, ETF dealing Regular investing Dividend reinvestment
AJ Bell*  0.25%  Max £3.50 per month for shares, trusts, ETFs.  £1.50 £9.95 £1.50 £1.50 per deal  More details
Bestinvest* 0.40% (0.2% for ready made portfolios) Account fee cut to 0.2% for ready made investments Free £4.95 Free for funds  Free for income funds More details
Charles Stanley Direct 0.35%  No platform fee on shares if a trade in that month and annual max of £240 Free £11.50 n/a n/a More details
Fidelity* 0.35% on funds £45 fee up to £7,500. Max £45 per year for shares,  trusts,  ETFs Free £10 Free funds £1.50 shares, trusts ETFs £1.50 More details
Hargreaves Lansdown* 0.45% Capped at £45 for shares, trusts, ETFs Free £11.95 £1.50 1% (£1 min, £10 max) More details
Interactive Investor*  £9.99 per month, or £4.99 under £30k holdings,  £12.99 for Sipp £5.99 per month back in free trading credit (does not apply to £4.99 plan) £5.99 £5.99 Free £0.99 More details
iWeb £100 one-off £5 £5 n/a 2%, max £5 More details
Etoro*  Free but no Isa or Sipp  Investment account offers stocks and ETFs. Beware high risk CFDs in trading account Not available  Free  n/a  n/a  More details 
Freetrade* Free for Basic account,  £4.99 per month for Standard with Isa  Freetrade Plus with more investments and Sipp is £9.99/month inc. Isa fee No funds  Free  n/a  n/a  More details 
Vanguard  0.15%   Only Vanguard funds Free  Free only Vanguard ETFs  Free  n/a  More details 
(Source: Jan 2023. Admin % charge may be levied monthly or quarterly