Recently I wrote an article posing the question “Does size matter?” (for investments), and delved into what micro investing is all about. Feel free to check it out here.
Researching about it piqued my interest and got me interested in researching and downloading some apps.
Full disclosure: I have investments with Spaceship (Earth & Universe portfolios) however, this post is not sponsored.
In this article, I’ll be talking about the biggest (non bank owned) micro investing apps for Aussies. Note: you need an Australian address and bank account to sign up for these apps.
I’ll be breaking down the most notable pros and cons of each app. I’ll also briefly touch on their investing fees and give my final conclusion at the end.
Spaceship
Created in: 2016
CEO: Andrew Moore
This has 3 portfolios to choose from.
Voyager – a balanced portfolio with funds that have growth potential.
Earth – an ethical and ‘green’ portfolio.
Universe – tech centric and ‘future’ proof portfolio.
Cost:
Universe Portfolio
Free up to $5000
0.10% per year for balance over $5000
Earth Portfolio
Free up to $5000
0.10% per year for balance over $5000
Origin Portfolio
Free up to $5000
0.05% per year for balance over $5000
Pros
- Ethical investing – If you enjoy the idea of putting money into the earth’s future you can do with the ‘Spaceship Earth’ portfolio. They don’t invest in any companies that are involved in trading alcohol, gamingling, guns, fossil fuels etc.
- No fees for investments under $5000 AUD
- No fees for withdrawing money
Cons
- Basic App – very few available analytics
- Can’t customise your portfolios
Raiz – Used to be known as ‘Acorns’.
Created in: 2016
Ran by: George Simon Lucas – Managing Director and Group CEO of Raiz Invest Limited
Portfolios Offered:
Conservative
Moderately Conservative
Moderate
Moderately Aggressive
Aggressive
Emerald – ‘Ethical investing’
Sapphire – 5% BTC allocation
Cost
Standard Portfolio
$3.50 per month for accounts under $15k
0.275% per year for accounts over $15k
Custom Portfolio
$4.50 per month for accounts under $20k
0.275% per year for accounts over $20k
Sapphire Portfolio
$3.50 per month flat and 0.275% per year
Pros
- Round-up feature
- Customisable portfolio
- You can withdraw at any time with no fees
- Option for bitcoin investments
- Option for an ethical investment portfolio
Cons
- Account fees under 5k can become pricey
- The large amount of portfolios can be overwhelming
- Different account fees are confusing
Let’s compare their performance for the financial year 2020/2021
RAIZ
Spaceship
Note ‘Earth’ is a new portfolio and doesn’t have enough data yet
So… which one is better?
They both have their unique strengths and weaknesses, and one isn’t ‘better’ than the other.
If you can only pick one and are investing less than $5000, Spaceship is probably right for you. However, if you’re interested in investing more than 5k and want more a customisable fund, then Raiz may be more your speed.
It’s ultimately a personal decision. Ensure you look at the fine print before investing, and remember past performance is not indicative of future performance.
Happy investing,
Ann ‘The Crypt Queen’
This is not a sponsored post, all opinions are my own and are written as general advice. Weigh up the options for yourself and seek advice from a finance professional for more information.
None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.
