Barclays launches digital DFM service for clients with £5k

Barclays robo service is back on the map. After some troubled times with its execution-only platform, they have gone back to the discretionary solution.

They have a high minimum (similar to Vanguard in the UK) but the fees are extremely high compared to the competition. Adding on VAT and other incidental charges you might be looking at 1.5-2% in annual fees! Most robo’s try to charge the 1% all in fee or lower for highly passive solutions.

The good news is this solution is charging first time investors who are cash savers right now, thus bringing more people into the investment space where they can get a better deal. It also gives Barclays the ability to offer a more vertically integrated “fund solution” which banks often have.

We’ll have to wait for the reviews and see the market reaction, but I expect it’s not going to disrupt existing players, only bring in and educate more potential customers.