Moneyfarm set out in 2011 to put investing online. VentureBeat reported in 2016 that its founders quickly found a purely digital service was a poor fit for Italian investors, and that a phone call to a real person helped customers understand their decisions.
So how does Moneyfarm make money from a business built on software and people? The core of it is a percentage of the assets clients hand over.
What Is Moneyfarm and Who Founded It?
Moneyfarm is an FCA-authorised digital wealth manager, founded in Italy in 2011 by Paolo Galvani and Giovanni Daprà, that launched in the UK in 2016.
The UK service arrived in February 2016 with six pre-designed ETF portfolios and an iPhone app, ETF Strategy reported.
The Moneyfarm robo advisor began as that managed-portfolio service. Today it is a discretionary service, meaning Moneyfarm builds and manages your portfolio, with a human element on top.
The regulated company is MFM Investment Ltd, trading as Moneyfarm, under FCA firm reference number 629539. The rest of this piece covers how Moneyfarm makes money and who funds it.
How Does Moneyfarm Make Money?
Moneyfarm makes money by charging a percentage of the assets it manages, plus a platform fee and, on its DIY accounts, fees for trades and currency conversion.
Moneyfarm also sells its technology to other firms.
In its 2022 deal with M&G, it agreed to supply the operating model, teams, custody and trading services behind M&G Wealth’s own-branded service, International Adviser reported.
Moneyfarm does not publish what such partnerships earn it, and we found no figure.
Because its main charges are percentages, Moneyfarm revenue rises with client assets.
That makes asset growth the number to watch.
Moneyfarm Fees: The Real Cost of Investing £20,000
On a £20,000 actively managed investment, Moneyfarm’s annual management fee is 0.45%, with a separate 0.25% platform fee.
That brings its own charges to 0.70% a year.
Estimated fund costs and market spread can add up to a further 0.21%, taking the total estimated annual cost to as much as 0.91%. Actual costs depend on the portfolio and market conditions.
Moneyfarm says it charges no entry, exit, withdrawal or top-up fees.
Moneyfarm fees vary by investment style and balance. Actively managed portfolios carry lower management rates at higher balances, while the platform fee is charged separately.
Some reviews still quote a sliding scale starting at 0.75%, which does not match the current pricing for the example above.
DIY investing is priced differently: £3.95 a trade on shares, ETFs and funds, £5.95 on bonds, 0.70% on currency conversion and a 0.35% ISA custody fee capped at £45 a year.
Beyond the Robo-Advisor: What Else Does Moneyfarm Sell?
Moneyfarm offers managed Stocks and Shares ISAs, Junior ISAs, general investment accounts and pensions, plus DIY share investing, a Cash ISA and limited-risk Smart Yield portfolios.
Managed portfolios remain the foundation of the Moneyfarm robo advisor, and Guidance+ adds personalised advice on investment and retirement decisions.
The Cash ISA offered new customers 4.76% AER (variable) on 12 October 2026, comprising a 3.59% rate and a 1.17% first-year boost. The bonus rate is subject to conditions, including maintaining a balance of at least £500 and making no more than three withdrawals in a year.
Moneyfarm holds the money in qualifying money market funds rather than a conventional bank deposit account.
Eligible customers may qualify for FSCS investment protection of up to £85,000 if MFM Investment Ltd fails and they suffer a covered financial loss. This protection does not cover losses caused by investment performance.
How does Moneyfarm make money on the Cash ISA? Its service page says the account carries no fees, but we found no published breakdown of the economics.
Smart Yield offers Cash Yield and Enhanced Yield portfolios, with target gross returns of 3.85% and 5.02% respectively, as of August 2026. Moneyfarm says these targets are not guaranteed and that Smart Yield is an investment product, not a cash deposit account.
Moneyfarm Revenue Is Growing, So Why Is Profit Still Unclear?
MFM Investment Ltd, Moneyfarm’s UK regulated entity, reported £18.5m in revenue in 2024, up from £16.1m in 2023. Its loss before tax narrowed from £9.5m in 2023 to £1.8m in 2024, according to its filed accounts.
These figures show that revenue grew while the reported loss narrowed. They do not, on their own, establish that Moneyfarm’s wider business was profitable.
Assets have climbed since. Moneyfarm said Willis Owen took total assets above £5.5bn in March 2025, and Teleborsa reported more than €8.7bn at 30 June 2026, up 33% on a year earlier.
Moneyfarm says it reached break-even in July 2025 and maintained positive margins through the first half of 2026. These are company-reported claims about its broader business, rather than a substitute for statutory profit figures.
MFM Investment Ltd’s 2025 accounts were filed on 10 September 2026.
We have left a 2025 profit or loss figure out until we can examine the financial statements.
Big Names, Big Cheques: Who Backs Moneyfarm?
M&G, Poste Italiane and Allianz were among Moneyfarm’s main shareholders when it raised £44.1m in January 2022, a round led by M&G that took total funding to £139m.
An earlier £36m Series C came in September 2019, FinTech Global reported.
Acquisitions have added assets too.
Profile Pensions brought £870m and 24,000 clients, Professional Adviser reported, and Moneyfarm completed its purchase of Willis Owen in March 2025, adding £680m.
WealthBriefing reported that Moneyfarm called it its third UK acquisition in three years.
Moneyfarm vs J.P. Morgan and Moneybox
On £20,000, Moneyfarm’s managed example costs 0.70%, J.P. Morgan Personal Investing charges 0.75% for its standard managed styles, and Moneybox charges 0.45% plus £1 a month.
These are headline charges before fund costs and other fees. Nutmeg has been J.P. Morgan Personal Investing since November 2025, FStech reported.
Moneyfarm’s headline charge falls between the other two, but the comparison is not like for like because the platforms use different investment and pricing structures.
Moneyfarm adds human guidance at higher tiers: Premium clients can access investment consultants, while Private clients get a qualified wealth manager.
FAQs
1. Is Moneyfarm profitable?
Moneyfarm says its broader business reached break-even in July 2025 and maintained positive margins through the first half of 2026. Its UK regulated entity, MFM Investment Ltd, reported £18.5m in revenue and a £1.8m loss before tax in 2024. The company-wide break-even claim does not establish that the UK entity reported a statutory profit.
2. Is Moneyfarm safe?
Moneyfarm is authorised and regulated by the FCA under firm reference number 629539, and says it keeps client assets separate from its own. Eligible customers may claim up to £85,000 per person from the FSCS if Moneyfarm fails and client assets fall short. FSCS cover does not protect against market losses.
3. How much does Moneyfarm charge?
Moneyfarm fees on a £20,000 actively managed investment total 0.70% a year (0.45% management plus 0.25% platform), with fund costs of up to 0.21% on top. Moneyfarm says there are no entry, exit, withdrawal or top-up fees.
Also Read: How Does Trading 212 Make Money? Inside Its £277.6M Business
Sources: Moneyfarm pricing, service, Cash ISA and Smart Yield pages, FCA, FSCS, Companies House, Teleborsa, FinTech Global, International Adviser, Professional Adviser, WealthBriefing, ETF Strategy, VentureBeat, FStech, Moneybox Help Centre, Money to the Masses, Unbiased. Figures reflect the most recent available data at the time of writing. 2025 profit figures are omitted until verified against the filed accounts.
The EP+ Editorial Desk covers UK startups, founder stories, and venture capital. All editorial content is independently produced and human-reviewed before publication.
