The number of investing apps available in Australia is increasing every month. There are now options for every Australian no matter if you’re just starting out with $5 or looking to grow your wealth.
I like to test out most investing apps in Australia and these are the ones that I’ve found to be the most exciting in 2021. I’ll be keeping this page updated with all the latest apps that become available in Australia over the coming year.
Spaceship lets you invest in 1 of 3 different managed portfolios. I invest in the universe portfolio which is made up of future looking companies. You can also invest in an index portfolio and a universe portfolio. What I love about Spaceship is that you can invest with just $5 at a time. There a no fees when your account is worth less than $5k. Over $5k you’re just charged a percent fee. For my account this fee is just $0.10. Or just $5 per year for a balance of $5k – that’s pretty amazing.
Spaceship is the cheapest way to invest in a portfolio of shares in Australia. If you’re looking to build up a nest egg then this is a great option.
Performance wise the Spaceship portfolio has grown ~29% percent per annum since may 2018 (annualised performance). Remember though past performance doesn’t mean future results will be the same. It has been my top performing investment. You can see my Spaceship vs Raiz performance here.
Using Stake you can invest in US shares like Apple, Amazon, Netflix, Tesla etc. I’ve been starting to invest more in US shares over the past year and I’ve been using Stake to build my portfolio. Stake’s biggest selling point is that it charges zero commissions. When you deposit funds on Stake from your Australian bank account, it gets converted into US dollars. It’s during this conversion that Stake makes money (as well as from a subscription to premium trading features). The FX conversion fee is much less than what banks in Australia charge and it’s definitely not a deal breaker. You’ll end up saving a fortune in fees compared to using a platform like Selfwealth or Commsec.
I mainly use Stake to invest in US listed ETFs from companies such as ARK and Vanguard.
P.S – use this Stake referral code to get a free stock when you sign up!
Raiz was one of the OG investing apps in Australia (it used to be called Acorns). The concept is simple, invest small amounts (such as $5) in a portfolio of ETFs. You can choose a variety of different portfolios based on your risk appetite and goals. I used to invest in the Aggressive portfolio (which performed really well for me), but I have now setup a custom portfolio.
For most people the portfolios that have been put together by Raiz are best. They are based on some pretty sound investing principles. Raiz charges a monthly fee to use the service. So I would recommending at least $100 to begin with to offset any fees.
P.S – Get $5 free when you sign up using a referral code on Raiz.
Stop paying more than you need to for buying and selling ASX listed shares. I’ve been using Superhero over the last 12 months to invest in individual ASX shares. They charge just $5 per trade. And if you buy ETFs they don’t charge anything.
Some people worry that Superhero doesn’t offer CHESS sponsored accounts. I don’t think that is much of an issue. From a risk perspective there would need to be a Bernie Madoff type fraud for you to lose money. And the risk of that happening (in my opinion) is much, much lower than the everyday risk of investing in stocks (market crashes, companies going bankrupt etc). I’ve never understood the CHESS argument from a logical, risk based perspective. I imagine many people will still be shouting from the rooftops about CHESS in 10 years, not realising how much money they have lost to fees.
Superhero is great for investing smaller amounts. You can invest just $100 at a time so its great for dollar cost averaging.
eToro has a unique copy trading feature that I think is very interesting. eToro is a social trading platform. You can see the trades made by other traders and how they have performed. But what’s really cool is you can also automatically copy these trades.
You can browse through the profiles of experienced investors and traders and then copy the ones that match your investing goals. Whenever a copied trader makes a trade, your account will too.
Another really cool feature on eToro is the commission free stock trading. You can invest in US shares and pay zero commissions (just like on Stake). I currently use eToro to trade a portfolio of US listed tech stocks (like the Coinbase and Roblox IPO). I’ll be adding more copy trading to my portfolio over the coming 12 months.
Blossom is brand new and offers something that is unique in Australia. Blossom is a fund that invests in fixed income investments. This market has previously only been available to large corporations or high net worth individuals. Fixed income is investments like Corporate and government bonds. I would consider these lower risk financial investments.
There are no minimums and no account opening fees! Which for a fund like this is unheard of in Australia. So I would consider Blossom to be as game changing as Spaceship or Raiz. It will certainly make investing in this type of product (fixed income investments) much more accessible.
Blossom is targeting a 3% return. While this isn’t really that exciting, it’s certainly better than the interest your savings would earn in a bank account (albeit with a smaller degree of risk). Big props to Blossom for the beautiful design of the website and app.
Other apps to take a look at:
Here are some of the other investing apps that I’ve been testing out in 2021:
Coinspot – Invest in crypto. While crypto has been on a pretty volatile ride, I’ve found that investing a small (~1%) of my money into crypto has worked out well over the long term. I like Coinspot over every other Australian exchange due to its interface and good reputation.
Pearler – Invest in ASX listed stocks and ETFs. Focuses on regular investing but the minimum investment size is $500! This doesn’t make Pearler a good option for the younger investor who is looking to dollar cost average small amounts of a regular basis.
OpenTrader – Great alternative to Superhero but it has HIN/Chess support. $5 per trade on ASX listed stocks. Sadly the same high minimum investment requirements that all Chess accounts have.
Rush – Ever wanted to invest in Gold? Well Rush lets you do just that. Personally I’m not looking to invest in Gold. If you are looking to buy Gold, you’ll pay around $1 in fees for a $200 buy (depending on how you deposit funds). As I’m no Gold expert, I’m not sure how competitive Rush’s rates are.
BlockFi – Earn interest on your crypto. Instead of just waiting around for the price of your crypto to go up, you could be earning interest on it.
YouHodler – Youhodlder is similar to Blockfi. The big difference is they have better rates for some cryptos and worse for others. I use both Blockfi and Youhodler to earn interest on my crypto.
EasyEquities – A South African company that is now available to Australians. Really competitive fees for ASX shares (the cheapest in Australia), but terrible trading interface. Probably the worst designed app on this page. Not sure I completely trust what EasyEquities is offering.