Summary

InvestEngine is pretty young, having been founded in 2019, but it has become known among other brokers for its high emphasis on using automation to make trading more convenient. The founders, Andrey Dobrynin and Simon Crookall, both have backgrounds in management and finance. Headquartered in the UK, the platform is limited in its market coverage, as it currently only allows users from the UK. It is also quite security-conscious and operates under licensing and regulation from the local UK regulator, the FCA.

InvestEngine deals entirely with investing in ETFs, so that is the only asset you can invest in if you decide to opt for this broker. But as far as ETFs are concerned, there are quite a number of them on the platform. You can select any of the 500+ ETFs in your portfolio, and they are of various types, including bonds, commodities, and shares.

In this comprehensive InvestEngine review, we will look at the various aspects of the broker, starting with its stock trading. We will also discuss its global reach and regulation, account and payment options, and its trading platforms. Then, we will briefly overview its safety and customer support system before looking at users’ sentiments about the platform from different reputable websites.

Available Assets

The very limited scope of assets clients can access on the InvestEngine Trading platform is perhaps the most unfortunate thing about it. But that state of affairs may be temporary, and the broker may likely expand the scope in the future. In any case, InvestEngine is currently an ETF-based trading platform with a portfolio of 500+ Exchange-traded funds and the addition of some stocks and shares from markets all over the globe. These ETFs are of three types: bonds, equities, and alternatives, and we will briefly go through each of them in this InvestEngine review section.

Equity ETFs

If equity ETF trading is your bag, you might feel right at home with InvestEngine’s vast portfolio of hundreds of these assets. These ETFs monitor stocks and shares from various markets and vital industries, including telecommunications, pharmaceuticals, energy, and transportation. Common names you will see here include the iShares S&P 500 (which tracks 500 of the biggest shares in the US market), the HSBC MSCI World (which tracks stocks and shares from about 23 developed countries around the globe), and the Vanguard FTSE Developed World.

Bond ETFs

ETFs on InvestEngine can also be based on bonds, which are basically more advanced IOUs. These bonds can be private (i.e., between private interests), or they can be government bonds, but the ETFs that track these for traders are known as Bond ETFs. The platform offers about 100+ of these that you can choose from, and they include such ones as the iShares ETFs. For instance, there is the iShares Global Inflation Linked Govt Bond UCITS ETF,  an ETF which, aside from tracking inflation-linked government bonds from developed countries, also reinvests income.

Alternative ETFs

The Alternatives trading platform offers you the ability to trade in a system other than the electronic communications one. While regulated by the SEC, the alternative trading system does not really cover national securities exchanges, though an operator of one can apply for that.

In any case, the InvestEngine trading platform offers a portfolio of 29+ alternative ETFs, which track a range of assets. For instance, the L&G Multi‑Strategy Enhanced Commodities tracks a range of commodities spanning sectors, including energy, agriculture, precious metals, livestock, etc.

Stock Trading at InvestEngine

Unlike most other platforms we review, InvestEngine is a specialized platform that deals in ETFs. As such the only kind of stock trading you can do on the platform is the limited kind that is available through the Shares and Stocks ISAs. These are basically accounts that allow you to invest up to £20,000 a year in stocks and shares ETFs, completely tax-free. These ETFs track stocks mostly from developed nations, spanning several industry sectors like commerce, tech, and telecoms. In this section, we will briefly overview the stock exchanges available, the leverage, and the relevant fees.

Available Stock Exchanges at InvestEngine

There are well over 400 stock ETFs on the platform, and between them, they monitor thousands of stocks from across the planet. These are derived from various national stock exchanges, and these are the top ones with the best stocks tracked.

Stock Trading Fees & Commission at InvestEngine

Aside from being free from any taxes, whether income or investment, the stocks and shares ISA ETFs are also free from any fees. From what the website indicates, there are no ISA fees attached, and neither are there any fees charged explicitly per trade. However, there are a few fees for trading on the ISAs, and they vary according to the portfolio type. For instance, if you trade on a Manage Portfolio, you will be charged 0.25% as an annual management fee.

Stock Trading Leverage at InvestEngine

The stock and share/equity ETFs on the platform are currently not leveraged. You won’t be able to trade any of their ETFs with leverage.

Regulations

InvestEngine has its headquarters in London, UK. However, it seems to be fairly local at the moment, as it does not appear to be operating any branch or regional offices around the globe. Here are the addresses and regulators of the UK Office.

InvestEngine (UK) Limited: This office is located on the fourth floor of 57-59 Great Suffolk Street, London, SE1 0BB, and it is under the regulatory and licensing jurisdiction of the Financial Conduct Authority (FCA) of the UK.

• Company Number: 10438231
• FRN: 801128

Fees and Commissions

One of the many things we found while assessing the Invest Engine fees and commissions is that they are very low. In fact, there are as good as no fees at all, given how few fees there are and how paltry the cost of the available ones is to the trader. In this section of our InvestEngine review, we are to overview these under the two main types of fees and commissions on trading platforms: trading and non-trading.

Trading Fees

Some fees are based on trading activity and may typically be charged per trade. These are known as trading fees, and they generally include spreads, commissions and swap rates. On InvestEngine, due to the platform’s policy of reducing fees to the barest minimum, you won’t be charged any trading fees except for the spread.

Spread

The spread is the market cost that is associated with buying and selling a given ETF, and it is defined as the difference between the ask and bid prices of the ETF, generally expressed in decimals and measured in pips. The spreads for trading ETFs through InvestEngine are not directly accessible from the platform, as Invest Engine does not directly buy and sell stocks to fulfill orders by clients. That job is done by other external brokers, and they are the ones who fix the spread into the buy and sell prices of ETFs ordered. However, the platform does specify that the average ETF spread on a managed portfolio costs up to 0.7% per year.

Non-Trading Fees

The converse of trading fees is the non-trading fees, which are generally charged for more passive activities on an account than trading. Some may be related to trading activities to some degree, such as administrative costs, which are charged for services that facilitate trading. However, none of them are directly based on trading activity.

Other examples of this kind of fee include conversion, deposit and withdrawal fees, and inactivity fees – none of which you will see on Invest Engine. There is, however, one fee that they do charge here.

Annual ETF Fees

The ETFs in any client’s portfolio come with annual charges called ETF costs, and they vary according to the type of portfolio you run. The DIY portfolios cost about 0.5% annually,  while the managed ones cost an average of 0.15%. These charges also tend to vary according to the performance of a given ETF over that 1-year period.

Account Types

For a broker as limited in scope, we find that the InvestEngine account types are a bit diverse. It operates three different account types, and each one is suited for a specific type of trading aim. Furthermore, these accounts are available in both DIY and Managed portfolios.

Here, we will review the three account types, but you must note that there are no demo accounts for you on this platform. As such, any risk-free practice that you need will have to be done elsewhere.

Individual Savings Account

The ISA is a special kind of account that allows you to invest tax-free in shares and stocks ETFs. Here, you can invest up to £20,000 (the total limit for all the ISA types), and there are a few benefits related to the portfolio type. If you want to operate a DIY ISA, all you have to pay are the annual ETF costs we have discussed before now. However, if you run a Managed ISA, you may pay up to 0.25% in management costs in addition to the normal ETF costs and the average portfolio cost of about 0.16%.

General Account

With its options for DIY or Managed portfolios, the General account offers you the ability to start trading with as little as £100 on ETFs. And while you may manage your own portfolio and be charged no commissions, a Managed portfolio doesn’t cost much at just 0.25% (ETF costs applicable).

This account type also offers tax-free trading, so you don’t have to pay income or capital tax on your trades, funds, or profits. Additionally, there are no exit fees on this account type. However, this is limited as you can only get up to £2,000 tax-free with regard to dividend taxes and up to £12,300 tax-free allowance on capital taxes.

Business Account

If you want an alternative to the low-interest rates offered by banks, then this account type may be what you need. It is suited for businesses, and it offers a great way to reinvest company cash. It also only charges commissions for managed portfolios, a low 0.25%. However, the tax-exempt benefits are not specified, as it depends on the exact business circumstance at play.

Trading Platforms

If the limitedness of this broker were not apparent enough from its lack of diversity relative to asset types, it would be from its digital platform scope. It does not even operate on any third-party platforms, a state of affairs that further limits how much variety clients can get in terms of operational platforms. We will now review the InvestEngine trading platforms or apps and see which ones there are and how they work.

Desktop Trading Platform

There is only one relevant fact about the Invest Engine desktop trading platform: there is currently no desktop trading platform. InvestEngine operates exclusively on mobile devices for now. However, we did gather from one of their customer care reps that, along with additional asset types, a desktop trading platform might be in the works soon.

Mobile Apps

The mobile app is the only digital platform on which InvestEngine operates at the moment. Having no MetaTrader platforms, the broker currently runs its own proprietary platform, the InvestEngine app, and it is designed with many awesome features to enable easier and more rewarding trading. This section of our review will look at these features and how to open an account on the platform.

Fractional Investing

The minimum investment on the InvestEngine is £100. However, you can still invest drastically smaller amounts (as little as £1) if you use the Fractional Investing services. This would help you get a bite from even the highest-priced ETFs.

Smart Portfolio Topups

This service allows you to make buy and sell orders in accordance with your entire portfolio strategy. With just a few clicks, you can invest in accordance with the weights of your chosen portfolios, and this feature is powered by smart order technology, which handles all of the transaction calculations.

Portfolio Look-Through

The portfolio look-through feature allows you to view all the companies, regions, and sectors you are currently investing in, and it’s all made available in a convenient and easily navigable head-up display.

AutoInvest

This automation feature allows you to prevent the buildup of uninvested funds in your account by taking said funds and automatically investing them in other assets in which you have indicated great interest.

One-Click Rebalancing

With this feature, all you have to do is make a single click or tap, and you can reset the allocation of assets on your portfolio to some prior state to be specified by you. This feature is useful for rebalancing the spread-out of assets on your portfolio, especially when you are operating a DIY one.

How to Open an Account and Trade ETFs on InvestEngine Mobile Trading App

The process of opening an account on InvestEngine is pretty straightforward to complete, as we are about to see. However, it will take a while for your verification to go through, after which you will be granted access to invest. Now, here’s how you open an account on the platform.

1. Download the app from your mobile app store and launch it.
2. After the launch screen, you will see a page containing two options to log in or get started as a new customer. Choose the latter option to proceed.
3. On the next page, you have to choose whether you are opening the account as a business or as an individual.
4. On the next page, you will see all the criteria you must meet to open the account, and there will be a field for you to provide your email.
5. The next step is to set a strong alpha-numeric password, after which you will have to tick some boxes to indicate agreement with the privacy policy of the platform and also to receive updates on new features.
6. Next, you must create a security code to help protect your app and account.
7. As the platform has multi-factor security, you will also be offered the option of setting a biometric lock, though you can skip it and do that later.

Now, your account has been opened, but you can’t trade just yet. You will have to complete your registration to proceed, and you can do that by following these steps.

1. Tap on ‘Finish registration to start investing’ on the homepage, and you will open a new page with fields for your details, such as your name, gender, and date of birth.
2. Next, supply such details as your address and zip code, as well as how long you’ve been at that address.
3. Once you have entered these, the next step will be to provide information on your trading experience, financial means, and potential account type. Then, you must verify your identity to proceed. After a while (might be up to a day), you will receive a notification telling you whether or not your ID has been validated. If it has, you can fund your account and start trading.

Payment Methods

If you are going to trade, funding your account and withdrawing your profits are very important things to consider. So, how does the broker fair with regard to these metrics?

Sadly, this is another area in which the platform does not offer very many options. You can not make deposits and withdrawals on InvestEngine through debit cards or credit cards, and neither can you use e-wallets or any electronic financing methods. The only way you can fund your account is through direct wire transfers from linked bank accounts.

Deposit

If you want to make any deposits, then you have to link one or more of your bank accounts to your trading account on the platform. Once you have done that, then you can make transfers into your account through manual transfers, instant transfers, or direct debit. The instant transfer feature, in particular, allows you to open a secure link to your bank account through the Open Banking service. You can then simply authorize transfer amounts, and they will be sent to your account immediately.

Generally, while each available banking method comes with its own minimum deposit requirements from the service provider, the platform itself has a minimum deposit for its accounts, which is £100.

Withdrawals

The same limitations on avenues for deposits also apply to withdrawals, as you can only withdraw via bank transfer. Unlike deposits, withdrawals generally take a bit longer, usually up to 4 business days at most. There are also no withdrawal fees, so you can withdraw every cent of your earnings without losing any to charges. However, this is only in theory as, in practice, the network provider may charge you something for the transaction.

Account Base Currency

All of a client’s financial data will be rendered in an underlying currency known as the Account base currency. The majority of financial activities carried out with this currency, particularly withdrawals and deposits, will not come with any charges for conversion. Conversion costs, however, will apply to any transactions denominated in other currencies, However, no such costs exist on the InvestEngine trading platform. This is partly due to the few-fee policy and the fact that GBP is apparently the only base currency on the platform. However, as InvestEngine expands its offerings, there might be more available base currencies in the future.

Research and Education

In terms of research and education, InvestEngine offers very little compared to other platforms we review. In our examination of the broker, we found the absence of so many potentially helpful resources such as training courses, live seminars, webinars, technical summaries, and robust in-house research very telling. Furthermore, there was a striking absence of such trading tools as calculators. To be fair, though, some of the best-known trading tools, such as forex calculators, are not very useful on the platform. After all, it does not offer the assets that make them necessary.

However, InvestEngine does, at least, offer a few resources in the form of its blog and FAQ section. Additionally, clients can also make technical inquiries by contacting the customer support team.

Customer Services

Now, let’s review the customer response services offered by InvestEngine to its clients.

Where customer support is concerned, InvestEngine does not perform badly. For one, it has a relatively diverse array of channels through which it can interact with its clients. However, these are limited to its FAQ section, email address, and social media handles, namely Facebook, Twitter, and LinkedIn. There is also a community forum where you can interact with the platform and fellow traders.

However, InvestEngine lacks a call center and live chat features, which means you won’t be able to reach the platform through an easy phone call. However, the response on social media is not bad; and the email customer support service, while available only from Mondays to Fridays, gives very fast responses (typically within 30 seconds of sending a request).

Online Reviews

Now, we must turn our attention to the online community and see what other users have to say about InvestEngine. In this section of our InvestEngine review, we will be gauging user sentiments from the popular forums, Quora and Reddit. We will also gather opinions from the platform rating sites TrustPilot and ForexPeaceArmy.

What Reddit Users Say About InvestEngine

Among Reddit users, the sentiment towards the InvestEngine platform is very mixed, Most responses to questions about the broker are from non-users viewing it with skepticism, as it’s a relatively new one in the market. However, the actual users’ comments express general satisfaction with a hint of dissatisfaction on one or two aspects. Take, for instance, this user who has used the platform for a few months and finds it generally okay. He does, however, express annoyance at the very tight limit on daily transactions.

Or you could check out this one who initially had an issue making purchases but finds the site generally okay since.

There are also others like this user who, due to the platform’s working model, think it is unsustainable and will either collapse or be bought out by a bigger platform. For him, it’s just the luck of the draw and something he does for the sign-up bonuses.

What Quora Say About InvestEngine

There are currently no reviews of Invest Engine from any users in the Quora community.

TrustPilot Users’ Review About InvestEngine

In significant contrast to the state of affairs on Reddit, the comments about InvestEngine among TrustPilot users are mostly sunny. Out of about 637 relevant reviews on the site, the average rating for InvestEngine is an excellent 4.4 out of 5.0 stars.

The things that the Trustpilot users find awesome about Invest Engine vary, but a significant number of them are about the customer service, which they find splendid, despite its limitations.

For some, it’s the speed of setting up an account on the platform, as well as the bonuses and the clean interface of the app.

However, some do find much to dislike about Invest Engine. For example, one user finds the platform appalling on account of issues he had with portfolio selection.

ForexPeaceArmy Users’ Review About  InvestEngine

There are currently no user reviews of InvestEngine on ForexPeaceArmy.

Other Products and Services

Before now, we mentioned that the InvestEngine trading platform offers a number of advanced, automation-based tools and other services geared at making trades more convenient and rewarding for you. Well, here are some other services the platform has for its clients.

Promotions

The platform offers a few promotions designed to incentivize clients. There have been some in the past, such as the  £25 Welcome Bonus awarded to new investors between July 2022 and July 2023. This was for investors who put in a minimum of £100, and there is an indication there may be another such promo in the near future.

Referral Program

The platform also runs a periodic referral program where, if you and your referee comply with the terms and conditions, you will each get £20 in “Referral Funds.”

Is InvestEngine Safe?

So, how fares InvestEngine safety, and how trustworthy is the platform anyway? In this section of our review, we will be looking at the key security and safety metrics relevant to this broker.

To begin with, where regulation is concerned, InvestEngine is not very diverse, given that it only has one regulator: the FCA. But at least it’s a high-trust regulator with high standards for platform operation and financial service rendering. Then, we have the issue of security, which does not seem to be an issue for InvestEngine. The broker offers great multi-factor security in the form of a pairing of passwords and fingerprint locks that increase the security of your account.

Finally, there is the area of security for client money, and InvestEngine performs very well here as well. In addition to using segregated accounts to secure clients’ funds in case it runs into financial trouble, the broker is also covered by the Financial Services Compensation Scheme (FSCS). This means clients who suffer the loss of investments or funds due to financial problems on the part of InvestEngine can be eligible for compensation of up to £85,000.

Bottom Line

And so, what do we gather from our InvestEngine review thus far? We find that the platform is very poor in most regards and excels in others. It is not clear what the spreads are, but they seem low at 0.7%. There are no leverages to speak of since the asset portfolio does not currently include any leveraged assets. Regulation is pretty great, given that the platform operates entirely for UK traders so it is regulated only by the FCA.

The signup is pretty straightforward, especially as it is a mobile platform. And speaking of mobile, it is not very great that there is only a mobile but no desktop platform for clients here. Furthermore, educational resources are scarce, but at least there is enough to cover the relatively few available assets.

On the brighter side, however, InvestEngine is a safe and secure platform, thanks to its multi-factor security and the measures taken to secure your money and compensate you where necessary. It also has a pretty good customer support system, albeit it lacks a call center or live chat feature.