How do I choose between a robo-advisor and a broker with savings plans?
Decide first whether you want someone else to pick and rebalance the portfolio. quirion, Indexa Capital and Ginmon do that for you from a risk profile, while Scalable Capital and InvestEngine also let you choose your own ETFs and run a savings plan yourself.
The managed route costs more per year, since quirion states 0.48% and InvestEngine Managed Portfolios 0.25%, but you never touch the allocation. The self-directed route is cheap, since DIY investing at InvestEngine is free and Scalable Capital executes savings plans at EUR 0, but the choice of ETFs and the discipline to keep buying stay with you.
A short test helps. If you would not rebalance a portfolio on your own once a year, pay for a managed service. If you already know which ETFs you want, a broker model saves the percentage fee.
What does a European robo-advisor really cost per year?
The fee is rarely one number, so compare the all-in figure. Indexa Capital states an average total cost of 0.527% a year, made of about 0.338% management, 0.093% custody and 0.096% fund costs. Moneyfarm lists 0.45% management plus 0.25% platform plus up to 0.21% instrument costs, which is the top of its 0.91% example.
Wealthify quotes 0.6% a year with fund costs of about 0.14% on Original and 0.46% on Ethical, and falls to 0.3% on pension balances over GBP 100,000. Moneybox charges 0.15% on its own funds and 0.45% on other funds and US stocks, plus GBP 1 a month after the three free months.
Two providers sit at the edges. OSKAR charges 1.0% under EUR 10,000 and 0.8% above, plus roughly 0.14% in ETF costs. LIQID quotes ranges by product, up to 2.49% for NXT and PRO. On a EUR 5,000 balance a flat monthly charge matters more than a basis-point difference, so run the numbers at your own balance.
Is a UK robo-advisor acceptable if I want GDPR protection?
Yes for most people, with a caveat about the legal basis. InvestEngine, Moneyfarm, Moneybox and Wealthify are UK companies regulated by the FCA. The UK is not in the EEA, but the European Commission has issued an adequacy decision for it, so personal data can flow to and from these firms without extra safeguards.
That is a different position from the German and Spanish providers. quirion, Ginmon, LIQID, OSKAR and Scalable Capital are German and Indexa Capital is Spanish, so EU law applies to them directly. If your compliance rule says EU or EEA only, take those six and skip the UK four.
Hosting is the open point for nearly all of them. Only LIQID states EU data centres in its privacy policy. For the rest, the pages we read do not say where the servers are, so ask before you sign up if the location matters to you.
How do I move from Betterment to a European provider?
Start from the contract. Betterment Holdings Inc. is in New York and its advice comes from Betterment LLC, an SEC-registered adviser, so a move means opening an account in a new jurisdiction and, in most cases, selling and rebuying instead of transferring in kind. Check the tax effect of that sale before anything else.
Then match the product. Betterment lists $5 a month or 0.25% a year, which is why InvestEngine at 0.25% a year is the nearest fee match. For the Premium tier at 0.65% with a $100,000 minimum, LIQID is the closest equivalent, since new customers need EUR 100,000 for SAVE and CORE.
Residents of Germany or Spain will find that tax wrappers do not carry across. A UK resident can use ISAs and SIPPs at Moneyfarm, Moneybox or Wealthify, while a Spanish resident can use the indexed pension plans of Indexa Capital from EUR 50.
When should I not switch to a European robo-advisor?
Stay where you are if you live in the United States and need US tax wrappers, because none of these ten provider pages describes an account type for US taxpayers. A move would add a currency conversion and a tax reporting question without lowering your costs.
Also be careful with small balances at the higher fee tiers. OSKAR at 1.0% below EUR 10,000 costs four times what InvestEngine charges for Managed Portfolios, and Wealthify at 0.6% plus fund costs is dearer than Moneybox on its own funds. A cheaper platform with the same ETFs often exists.
Finally, do not switch only for the label. Several providers have no free plan and no trial, and the fee pages for Ginmon and Moneybox leave some costs unquantified. Read the full fee table first and compare it with what you pay now.
Which robo-advisor suits very large or very small balances?
Small balances go to savings plans. OSKAR and quirion start at EUR 25 a month, Scalable Capital starts at EUR 1, and Moneybox charges GBP 1 a month, a subscription it waives below GBP 5 invested or above GBP 5,000. Indexa Capital asks EUR 1,000 for fund portfolios but only EUR 50 for pension plans.
Large balances go to firms with human contact. LIQID requires EUR 100,000 for SAVE and CORE, Ginmon offers a personal advisor from EUR 50,000, and Moneyfarm gives Qualified Wealth Manager support on managed accounts.
Between those two ends the decision is mostly about wrapper and country. Pick the provider whose tax wrapper matches where you pay tax, then compare fees inside that short list.
