Are you looking to start investing? Here are the best investing apps for beginners that are available in Australia.
All of these apps let you start investing with a small amount of capital. And many of them have automated portfolios, so you don’t need to be a stock expert (or have any financial expertise) to get started.
Spaceship Voyager lets you invest in one of two portfolios of shares. One is an index portfolio made up of 200 of the worlds largest companies. The second is a portfolio of companies that Spaceship thinks will be valuable in the future (think Tesla, Apple, Kogan, Afterpay etc).
Spaceship’s best feature is that it’s completely free to use for balances under $5k. This means you can build up your investment without having to worry about fees eating into your profits. And even when your balance grows above $5k, Spaceship is still one of (if not the cheapest) way to invest in a diversified portfolio of shares.
Spaceship is a great investing app for beginners because you can get started with just $5. In the past, if you wanted to invest in shares you would need at least $500. Spaceship makes investing in shares accessible to anyone, no matter your financial situation.
I’ve been investing using Spaceship voyager for the last few years. You can check out how Spaceship has performed for me here.
Raiz is micro-investing similar to Spaceship. You can choose from 1 of 7 different portfolios based on investing goals and life stage.
Just like Spaceship you can start investing with as little as $5. You can setup recurring investments (such as once a week) or take advantage of Raiz’s unique round-up tool. When you have Round-Ups turned on, Raiz will track the purchases you make. They will round up each purchase to the nearest dollar and transfer this small amount to your Raiz investment account. So the more you spend, the more you’ll save!
Raiz is a great choice for beginner investors as the portfolios have been put together by experts. You don’t need to worry about picking stocks on your own.
With Commsec Pocket you can invest in one of 6 different themed ETFs and pay just $2 in brokerage commissions. So if you’re looking to invest larger amounts ($500+) in one off investments then Commsec Pocket could potentially be a good choice for you.
If you’re looking to invest smaller amounts at regular intervals (like $10 a week), then both Raiz and Spaceship will end up being much cheaper.
The advantage of using Commsec Pocket is you do get to choose which ETFs you invest in. Personally though I prefer the more diversified portfolios of both Raiz and Spaceship.
On eToro you can invest in US shares (like Apple, Amazon, Netflix etc). eToro doesn’t charge any commissions on US share trades. eToro also supports fractional trades. This means even if you just have $50, you can own a slice of Apple. And because you aren’t charged any brokerage commissions (that can be as high as $29 per trade on other platforms) investing small amounts makes much more sense.
eToro also has a copy trading feature. This lets you automatically copy the investment portfolio of other more experienced traders.
eToro is a good choice if you’re looking to learn more about share trading. You can interact with the community, ask questions and get advice from other members. On eToro you are picking shares on your own (unless copy trading or investing in eToro’s copy portfolios), so I would consider this a risker platform compared to an app that has an automated portfolio.
How to get Started Investing
Choose a platform and sign up! You can get started with as little as $5. You don’t need to be rich to start investing. The sooner you start investing, the easier it gets later on in life. So even if you can only afford $10 a week, it’s still worth putting it into an investment. I learnt a lot about investing from just using apps like Spaceship Voyager and Raiz.
Unlike a bank account, when you’re investing in a diversified portfolio you’re giving yourself the best shot at growing your wealth. Your savings in a bank account will lose value to inflation. Where as an investment portfolio (even the conservative ones) are designed to grow faster than inflation.
So just get started!