InvestEngine Review: Easy ETF Investing or A Sham?

InvestEngine is simplifying the way ordinary people invest in the stock market with tailored ETFs that fits their risk appetite and financial goal.

Founded by Simon Crookall, a co-founder of classifieds site, Gumtree, InvestEngine claims to  provide arguably the most diversified and cost-effective option of investing in the best stocks for the long-term.

In this review, we’ll take a deep look into what InvestEngine is offering vs what investors are getting, and if it’s even what a look as a veritable investment platform.

Let’s dive right in.

What Is InvestEngine All About?

InvestEngine is a digital platform that helps investors find, curate and invest in ETFs. With InvestEngine, investors have access to financial technology and tools for building and managing a portfolio of ETFs that’s right for them.

Via the InvestEngine app, investors enjoy seamless portfolio management such as one-click portfolio rebalancing, auto investing, fractional investing, and smart portfolio topups.

The good deal is that it costs almost nothing to use InvestEngine, while investors have access to build their portfolio out of a wide-range of investment assets including ETFs from iShares and Vanguard.

InvestEngine claims to feature over 550 ETFs on their platform, and users can start investing in any ETF of their choice with as little as £1.

How Does InvestEngine Make Money?

Although InvestEngine is entirely DIY, they offer an option to help manage portfolios for investors.

With InvestEngine managed service, investors only have to put in their money while relying on the expertise of InvestEngine for only a small annual fee of 0.25%.

How To Invest With InvestEngine

To start investing with InvestEngine is as simple as logging onto their website and selecting an account type.

You can start investing either with a personal savings account or a business account that is domiciled in the UK.

Simply signup with an email address, login to your account, and then create an investment portfolio.

You’d have to choose between doing it yourself or letting InvestEngine manage the portfolio on your behalf.

If you select the DIY option, you’ll have the chance to choose from over 550 ETFs, with each ETF range showing asset information and performance.

Simply build your portfolio and start investing.

Apart from investing in ETFs via InvestEngine platform, they are also offering a crowdfunding opportunity to invest directly in InvestEngine. This may pose a higher investment risk.

How Much ROI Does InvestEngine Offer?

The thing is, InvestEngine acts as an ETF aggregating platform. How your portfolio performs and how much ROI you get, will depend on the ETFs you choose to invest in and how balanced your portfolio is.

In other words, InvestEngine doesn’t offer any ROI directly, even if they help to manage your portfolio via their managed portfolio option.

Safe to say that the risk is entirely on the investor.

Is InvestEngine Legit or Scam?

Personally, InvestEngine looks like a legit platform to trade ETFs the simple way.

The people behind the product are reputable, and the platform with its parent company is regulated appropriately.

They claim to be authorized and regulated by the UK regulator, Financial Conduct Authority (FCA), and covered by the Financial Services Compensation Scheme (FSCS), which offers eligibility for claims for investments up to £85,000.

All these are subject to verification.

What I like About InvestEngine

I like that they provide options to fit the needs of different types of ETF investors.

Whether you’re a newbie investor looking to play it safe, an investment enthusiast with a high risk appetite, or an institutional investor looking to diversify your funds, InvestEngine seems to have a solution for you.

I also like that it’s quite cheap to start out investing there. You could just be throwing in a few nickels once in a while and see whether it grows.

What I Dislike About InvestEngine

Surprisingly, I’m finding it hard to get words here.

I know I’m a big critic, but maybe InvestEngine is just one of those investment products that does almost everything well.

I mean, you don’t even have to pay any fees to use their platform in accessing some of the best global ETFs in a wide range of diversified asset classes.

I guess I’ll have to give it up to them on this one.

Can You Lose Money With InvestEngine?

Unfortunately, like with any traded stock, you could lose money if the price of any ETF on your portfolio goes down.

How much you lose or gain would depend on the composition of your portfolio and how balanced it is. So, it is important to seek financial advice before investing.

A good workaround here, especially if you’re a beginner investor, would be to subscribe to InvestEngine’s managed portfolio service, where you only have to specify your risk appetite and InvestEngine would do the rest for you.

Should You Invest With InvestEngine?

The question is, why not?

It’s a great option to start putting your money to work, especially with ETFs that are popular for their liquidity and diversification.

 You could start small with your investing and see where InvestEngine takes you.


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