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Nutmeg Review

Nutmeg is one of the leading robo-advisory services in the space today.

Nutmeg review
Overall
InvestorGreg upholds the most rigorous standards for testing of brokers. We may receive compensation for advertising or for links that feature inside our reviews. Learn more about our methodology and review process.

Introduction

Nutmeg was started back in 2011 and it has grown into one of the leading robo-advisor platforms in the space today. The goal of the platform is to help clients to create portfolios that are diverse and relevant to their given goals and risk tolerance.

It is regulated in the United Kingdom through the Financial Conduct Authority (FCA) and there is a competitive pricing structure in place. One of the main points to note is that there is no way for you to create your own portfolio, which may be a negative for some people.

This Nutmeg review looks at the ins and outs of this offering, allowing you to quickly see if this will be a good fit for you.

Overall Rating

Products & Fees
4.3
Security
5
Tools
4
Desktop Experience
4.5
Mobile Experience
4.5
Investment Options
4
Portfolios
4
Customer Support
3.5

Pros

  • Passive investing

    Those investors who want to take a passive approach and not have to worry about making constant adjustments will enjoy Nutmeg.

  • Good reputation

    Since starting in 2012, Nutmeg has developed a good reiteration in the robo-advisory space.

  • Secure platform

    Everything at Nutmeg is above board, being regulated by the FCA and places a big emphasis on client security.

  • Easy to use

    The process from getting started investing to reviewing your portfolio is seamless on Nutmeg.

Cons

  • No active investing

    You are not able to make any of your own investments through the Nutmeg offering which may be a downside for some.

Radical though it may sound, we believe investing should be a clear and straightforward experience. We build and manage diversified portfolios, using technology to keep charges low and clearly show where you’re invested.

How Does Nutmeg Work?

Nutmeg is a platform for passive investors who are looking to leverage the expertise of the people and systems that are in place. When you start out with your Nutmeg account, you will be asked to fill in a questionnaire. This allows the system to get an idea of your preferences and goals when it comes to investing.

A risk level will then be determined for you and this will be used to help drive decisions for your portfolio. If you want to start a Stocks and Shares Lifetime Individual Savings Account (LISA), you will need to deposit at least £100.

You need to choose your preferred investment style. This can range from fixed allocation to being socially responsible or a fully managed portfolio. The software will then be able to use all of this information to create a portfolio for you through a proprietary algorithm. It will constantly monitor this portfolio and make adjustments as needed depending on changing circumstances.

Commissions & Fees

When using Nutmeg, there is an annual management fee that will be charged, based on your portfolio's total value. This fee will begin at 0.75% and can go as low as 0.25% (including VAT). The size of this annual management fee will depend on your investment style and the sum that you are investing.

As Nutmeg will be making purchases on your behalf, there will be underlying market spread and fund costs that will come into the equation. These are a natural part of investing and Nutmeg aims to minimize these types of charges as much as possible.

There are no fees in place for setting up an account or any exit fees, transfer or withdrawal fees. Any fees that your account is subject to will be debited out of your account each month, utilizing a relevant annualized rate to do so.

Platform & Tools

As soon as you have signed up for an account with Nutmeg, you will be ready to get started filling out your investing preferences. The online interview will help determine your investment approach and then the portfolio will be created automatically for you. You are then able to view this portfolio and make any changes to your investment approach as you see fit either through the Nutmeg mobile or desktop platform.

As you are not able to actively manage your own investments, there is no out and out trading platform that you would find if this was the case. However, there are some useful tools that allow you to plan ahead and adjust for potential changes in your personal or financial circumstances.

Platform & Tools
Annual Fee
Minimum Investment
Assets Under Management
Human Advisors
Robo Advisor
Automatic Deposits
Online Platform
iOS App
Android App
Goal Tracker
Tax Loss Harvesting
401k Plans
IRA Accounts
Roth IRA Accounts
SEP IRA Accounts
Single Stock Diversification
Fractional Shares
Taxable Accounts
Trust Accounts
529 Plans
 
Nutmeg
0.25% to 0.75%
£500
£2 Billion
Personal Capital
0.49% - 0.89%
$100,000
$10 Billion
Betterment
0.25% - 0.4%
$0
$16 Billion
M1 Finance
0.00%
$0
$500 Million
Wealthsimple
0.4% - 0.5%
$0
$4 Billion
SigFig
0.25% - 0.50%
$2,000
$210 Million

Mobile App

As well as the easy to use desktop platform, Nutmeg also has a dedicated app for Android and iOS users. These can be downloaded from the relevant app stores quickly and easily. You can easily register for an account and conduct your intro interview through this app.

It is very intuitive and the clear design means that you will be able to easily digest all of the information that is on the screen. By downloading the Nutmeg app, you can keep an eye on your portfolio as needed.

Deposits & Withdrawals

You can get started investing at Nutmeg with as little as £100 for the LISA option or £500 for ISA or General pots. If you are looking to create a pension through Nutmeg, you will have to invest at least £500. If you are looking to add funds to Nutmeg, you can do so through a bank transfer, direct debit or through a debit card.

While investing is aimed at a long-term horizon at Nutmeg, you are not locked in. You are able to withdraw your funds whenever you want and there is no minimum period that you need to invest for. Nutmeg does recommend however that you leave your investments in place for at least three years.

Depending on the type of portfolio you have, there may be penalty fees in place for early withdrawals, such as for an ISA or LISA account. The withdrawal transaction itself will not carry any fees. You need to use a bank transfer to remove funds, with this taking about 3-7 business days before the funds hit your account.

Customer Experience

The customer experience from start to finish at Nutmeg is a good one. You will easily be able to get up and running through the easy to use interface. The design is easy on the eye and you are not inundated with excessive options or subject to overcomplicated batches of text.

Everything is well-explained and clear to follow. With platform speeds being good and the accessibility to make changes to your portfolio being in place, it’s hard to go wrong with Nutmeg in this regard. 
 

Customer Support

If you have an issue with the Nutmeg offering, you will have a few different ways to deal with the support team. The live chat feature allows you to almost instantly get a response to your simple questions. There is also a secure inbox called Nutmail that allows you to securely share relevant personal information that is needed to resolve an issue.

You can also check the comprehensive FAQ section for questions that tend to crop up again and again. There is the option to ring the support team via phone. These phone lines are open Monday to Friday during regular UK business hours. Overall, there is plenty of help you can get at Nutmeg if you have a problem that needs solving.

Security & Reliability

Nutmeg has built up a good reputation over the years, having been in business since 2011. It is licensed by the FCA in the UK, which is one of the leading financial regulatory bodies in Europe. The robo-advisory service is under the watchful eye of this body, ensuring that it is compliant with all relevant UK and European laws.

All client funds on Nutmeg are kept segregated from the operational funds of the business. They are kept in the State Street bank that is one of the biggest in the world. UK investors will also have up to £85,000 protected in the case of Nutmeg defaulting on its obligations. This is through the Financial Services Compensation Scheme.

In terms of account security, 256-bit encryption is deployed to make sure that sensitive data is protected. You can also add extra security features to your account if needed, such as two-step verification.

Security & Reliability
Regulated By
Year Founded
Country of Origin
 
Nutmeg
FCA
2012
London, UK
Personal Capital
SEC
2009
United States
Betterment
FINRA, SEC
2008
USA
M1 Finance
SEC, FINRA
2015
USA
Wealthsimple
FINRA, SEC
2014
Canada
SigFig
SEC
2012
USA

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