Portfolio Rebalancing

Nutmeg and other robo-advisors are all unnecessary businesses with pointless fees. I wrote a little overview of what their fees represent and how you could easily avoid them and save a lot by investing in the ETFs directly.

Taking Nutmeg’s cheapest option into account (0.45% fee), you will pay £0.69 per week if your portfolio is above ~£8,000, and this £0.69 equates to the cost of Freetrade’s ISA, £36 per year. If your portfolio is less than £8,000 it is even more beneficial to simply stick to Freetrade’s GIA since you have no risk of tax with such a low amount. This is all exclusive of the ETF fees, which are added onto the costs outlined above.

Taking into account Freetrade’s regressive fee structure, the richer you become, the more negligible the fee becomes. I do not quite see any other provider in the UK who could offer comparable value.

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