Goodbye Wealthsimple

SamDude

Email this morning from Caroline Murphree (CEO Europe):

We have some news to share with you. After careful consideration we’ve decided to no longer provide investment services in the UK. In making this decision, our first priority has been to find the right partner to support our clients’ continuing investment journeys. That is why we have decided to transfer eligible Wealthsimple client accounts to Moneyfarm, a leading European digital wealth manager. Moneyfarm requires a £500 minimum for new clients.

The rest of the email explains how to withdraw my funds as it's less than £500 and not eligible to move to Moneyfarm.

I only kept my Wealthsimple account as it allowed multiple direct debits from different bank accounts, so it was used to feed my Club Lloyds direct debit requirements.

Alexland

Gone the way of Moola. Too many robos offering the same thing in the UK market.

FAQ at

https://help.wealthsimple.com/hc/en-gb/articles/4411041188891

dunstonh

Robos have not taken off like they hoped.    Problem is that there are too many and they are not particularly cheap.  Indeed, some cost more on an ongoing basis than a full advice arranged investment.

Albermarle

The new one InvestEngine , discussed in another thread , is much more competitively priced .
For DIY portfolios - no platform charge - just a charge for the ETF's around 0.2%
For managed portfolios - platform charge 0.25% - plus a charge for the ETF's of around 0.2% 

Then of course you wonder if it can become profitable /survive.

dunstonh

A lot of the robos are not looking to survive.  They are looking at getting market share to then sell up to bigger player.   if they get the market share, then the directors and backers can make a lot of money.    If they dont get the market share, they then close it down and pass it on making much less (but still usually making something)

Notepad_Phil

SamDude said:

Email this morning from Caroline Murphree (CEO Europe):

We have some news to share with you. After careful consideration we’ve decided to no longer provide investment services in the UK. In making this decision, our first priority has been to find the right partner to support our clients’ continuing investment journeys. That is why we have decided to transfer eligible Wealthsimple client accounts to Moneyfarm, a leading European digital wealth manager. Moneyfarm requires a £500 minimum for new clients.

The rest of the email explains how to withdraw my funds as it's less than £500 and not eligible to move to Moneyfarm.

I only kept my Wealthsimple account as it allowed multiple direct debits from different bank accounts, so it was used to feed my Club Lloyds direct debit requirements.

Mrs Notepad and myself both use Wealthsimple and both have less than £500 in there, but our emails have nothing about not being eligible to move across to Moneyfarm. I wonder if it's because we've both got Moneyfarm accounts too (though adding both accounts together would still be a lot less than £500).

Alexland

Notepad_Phil said:

Mrs Notepad and myself both use Wealthsimple and both have less than £500 in there, but our emails have nothing about not being eligible to move across to Moneyfarm. I wonder if it's because we've both got Moneyfarm accounts too (though adding both accounts together would still be a lot less than £500).

Sounds like you need to spend some time closing down old small robo accounts.

Notepad_Phil

Alexland said:

Notepad_Phil said:

Mrs Notepad and myself both use Wealthsimple and both have less than £500 in there, but our emails have nothing about not being eligible to move across to Moneyfarm. I wonder if it's because we've both got Moneyfarm accounts too (though adding both accounts together would still be a lot less than £500).

Sounds like you need to spend some time closing down old small robo accounts.

Not while we make use of the £1 direct debits that they offer.

DireEmblem

Albermarle said:

The new one InvestEngine , discussed in another thread , is much more competitively priced .

I think I worked out 5 years to break even if they got enough momentum.

The problem being they are an unknown.  The £75 bonus you can get from a referral at a 0.25% fee is equivalent of holding 30k for a year excluding any other costs they have.

I’ve referred a few for the bonus and because it’s cheaper than their competitors.

I guess if someone stays for 5 years then you’re only then talking someone saving £200 a month for 5 years, again not covering other operational costs.  It’s quite difficult I think for them to break even but given the low costs I hope they do well to encourage more competition in the market.