Nutmeg has changed its fee structure in a move it says will help “democratise” wealth management.

From Monday (16 January) there will be a simpler management fee structure which according to Nutmeg will result in more than two thirds of customers seeing their fees cut.

The robo-advice platform will also be launching a range of five low-cost funds for different risk levels.

Nutmeg’s customers will now pay 0.75 per cent on the first £100,000 of investments, and 0.35 per cent on all investments above £100,000.

Previously there were four fee bands ranging from 0.95 per cent for those with up to £25,000 to 0.3 per cent for those with £500,000 or more.

Martin Stead, chief executive of Nutmeg, said: “Fees are the only part of your investment performance that you can control.

“The fees you pay can make a significant difference over time. Even a tiny reduction can make a massive saving over 20 or 30 years.

“Our technology enables us to serve our customers with high quality investment portfolios at a much lower cost than traditional wealth managers, and we are pleased to be able to make our fees even more competitive as we enter the New Year and Isa season.”

Existing Nutmeg customers will only be moved to the new fee structure if these new fees are lower than their current management fees.

All customers must also pay underlying fund charges, which average 0.19 per cent a year and which Nutmeg does not retain.

Nutmeg has yet to turn a profit and its most recent results showed that during 2015 it made a loss of £9m, an increase on the previous year when it made a loss of £5m.

Last month it attracted investment of £12m from Taipei Fubon Bank, the second largest financial services firm in Taiwan.

This followed the £24m raised in November from Convoy, Hong Kong's largest listed independent financial advice firm.