Micro-investing has become an extremely popular way for Australians to enter into their first investment, and for good reason.
Micro investing doesn’t require a lot of money, the returns historically have outperformed the interest given by banks, and the fees are very low when compared to other investment mediums.
There are many micro investing platforms in Australia, each suited for a different purpose, we won’t compare them here, but will give an overview on the best suited app depending on what you’re looking to invest in.
Below are the best micro investing apps for every category in Australia for 2022.
Bamboo – Best Micro Investing App for Crypto
Bamboo is a micro investing app which allows for investment into Bitcoin, Ethereum, gold, and silver. Bamboo also has a new rewards’ system, where users get given crypto just for using the app, like topping up and turning on recurring payments.
The Bamboo app has a round-up feature, allowing users to connect a bank account so their spending can be rounded to the nearest dollar, with the difference invested in the chosen portfolio.
Bamboo has 2 preset portfolios, one for crypto, which will split your investment into Bitcoin and Ethereum 50/50, or one for precious metals, which does the same with gold and silver, users can also completely customise their investment to choose a portfolio split that suits them.
In terms of fees, there’s a flat fee for deposit and withdraws which progresses the more you have invested, at $100 or less, has a $1.49 fee, between $100 and $250, the fee goes to $2.49, from $250 to $500 is $3.99, and over $500, the fee is 0.8%.
Spaceship – Best Micro Investing app for Starters
With the Spaceship app, you can invest into some of the largest companies through portfolios actively managed by the Spaceship team. The portfolios are also rebalanced, meaning if one company or sector is underperforming, then it will be “balanced” by investing in another company or sector which isn’t, so that the portfolio has the best chance of continual growth.
This is great if you’re new to investing, as someone else is making sure your investments are always positioned for growth, meaning you don’t have to worry about managing them. Spaceship also has no minimum investment amount, so you can set up a recurring amount you’re comfortable with.
The app features three portfolios, Universe, which invests in “world-changing companies” like Apple and Tesla, Earth, for environmentally conscious companies, and Origin, investing in large companies such as Google and Amazon. Users can choose one or all of these portfolios, and set up an investment plan and reoccurring payments for each.
Regarding fees, Spaceship fees are super simple, there’s no fee under $100, and anything over that will incur a $2.50/ month account fee, regardless of how many portfolios you choose to invest in.
CommSec Pocket – Best Micro Investing app for ETF’s
CommSec Pocket is an app from Commonwealth Bank providing some great options if you’re looking to grab some exchange traded funds (ETFs) for your investment portfolio. You’ll need to apply online for a CommBank transaction account to use this app, which only takes about 5 minutes.
The app provides 7 ETF options, ranging in focus from tech, sustainability, to health, there’s even a dividend focused ETF if you’re looking for passive income. Some ETFs are not actively managed, so any company included in the portfolio is there to stay, no matter their performance, so make sure the ETF you select is right for you.
For fees, CommSec Pocket charges $2 each time you invest or sell up to $1,000, trades over $1,000 are charged at 0.20% of the trade value, and there’s no account fees. There may be a management fee from the ETF, depending on which you choose.
Raiz – Best Micro Investing App for Rewards
Raiz is an app that’s been around for a while, formerly known as Acorns, it features a very extensive rewards program where companies will invest into your Raiz account just for shopping with them.
There’s currently around 450 companies partnered with Raiz, each with a different percentage or amount they will invest based on your spend, some may require a minimum purchase amount or other criteria in order to be eligible.
Rewards are redeemed through the app by searching the brand you’d like to purchase from and hitting the “Shop” button, which will redirect you to the partner’s site, where you must make an immediate purchase to receive the stated reward.
Raiz has five portfolios to pick from based on your stated risk profile that ranges from conservative to aggressive, as well as an Emerald option, for investment in socially responsible companies, and a Sapphire portfolio, which allocates 5% to Bitcoin. All portfolios use a mix of ETF’s available on the ASX, with allocations changing depending on the portfolio chosen, and there is an option for your own custom portfolio.
As for fees, it is $3.50 a month if the balance is under $15,000, over that, and it’s 0.275% per year charged monthly. Custom portfolios are charged $4.50 a month less than $20,000 is in the account, and 0.275% per year charged monthly for any amount over that.