At InvestEngine, we’re committed to offering exceptional value by keeping costs low for our clients. We provide commission-free investing on our DIY portfolios and a competitively priced managed service (ETF costs apply). Here’s how our business model supports this approach:
1. Interest on uninvested Cash
We generate revenue by earning interest on uninvested cash held within client accounts. While this cash doesn't earn interest for clients, it enables us to maintain our platform without charging fees on DIY portfolios.
2. Managed portfolio fees*
*Please note, managed portfolios are currently unavailable to new clients.
For clients who prefer a hands‑off approach, we offer Managed Portfolios at an annual fee of 0.25% of the portfolio value. This fee covers portfolio construction, monitoring, and rebalancing by our investment team. It is important to note that we do not charge a management fee on the cash element of your Managed Portfolio. Instead, we retain all of the interest earned on this cash as part of our charges for managing your portfolio. This means that you will not receive interest on the cash held within your portfolio, and we will retain any interest paid by our banking or custody partners.
3. Partnerships with ETF providers
We have established educational partnerships with leading ETF providers, which include joint marketing arrangements. These collaborations allow us to offer a broad range of investment options and educational content to our clients.
4. Operational efficiencies
Our platform is designed for efficiency, utilising automation and streamlined processes. This approach reduces operational costs, enabling us to pass savings on to our clients.
By combining these revenue streams, we aim to keep fees low and prioritise client value and transparency.