I’ve always been curious about the stock market but felt scared to invest. Micro-investing apps like Raiz and Spaceship changed that. They made investing easy, letting me start with just a little money. But with so many choices, how do I pick the right one for me?
In this article, I’ll explore Raiz and Spaceship’s features, fees, and performance. This will help you and me find the best investment platform for our goals and comfort with risk.
Key Takeaways
- Raiz and Spaceship are two popular micro-investing apps in Australia, making it easier for individuals to start investing with small amounts.
- Both platforms offer different investment options, fees, and user experiences, so it’s important to understand the key differences to choose the right one.
- Factors to consider when selecting a micro-investing platform include your investment goals, risk tolerance, and preferred features like automatic round-ups or portfolio customization.
- Raiz offers a simple, accessible platform with a round-up feature, while Spaceship provides more customization options and a wider range of investment choices.
- Evaluating the historical performance and fees of each platform can help you determine the best long-term fit for your investment strategy.
Introduction to Raiz and Spaceship
In the world of automated investing and wealth building, Raiz and Spaceship stand out in Australia. They offer easy ways to invest, helping both new and seasoned investors. This makes understanding the financial markets simpler.
Overview of Raiz
Launched in 2016, Raiz is a micro-investing app. It provides seven pre-built portfolios for different risk levels. You can also create your own portfolio with Raiz Plus, including ETFs, ASX stocks, and a bit of Bitcoin.
Overview of Spaceship
Spaceship started in 2018 and focuses on actively picked stocks. It offers two portfolios: Index and Universe, both high-risk. Its app is designed to be easy to use, targeting a younger audience.
Both Raiz and Spaceship aim to make automated investing and wealth building easier for Australians. They cater to various risk levels and investment styles.
“Micro-investing apps like Raiz and Spaceship have revolutionized the way Australians approach personal finance and wealth building.”
Key Features of Raiz
Raiz is a top micro-investing app in Australia. It has many features that appeal to different investors. Its easy-to-use interface and various fractional investing options make it great for both new and seasoned investors.
Investment Options
Raiz offers seven investment portfolios with different risk levels. You can choose from the ‘Defensive’ to the ‘Emerald’ portfolio, which includes a 5% cryptocurrency trading allocation. This way, Raiz meets various investment needs.
There’s also a ‘Raiz Plus’ option for custom portfolios. You can pick from ETFs, ASX-listed stocks, and even a Raiz Property Fund to create your own portfolio.
Fees and Charges
Raiz’s fees are clear and fair. For balances under $15,000, it costs $3.50 a month. For bigger balances, the yearly fee is 0.275%. This makes it a cost-effective choice for fractional investing and cryptocurrency trading.
User Experience
The Raiz app and website are easy to use. The “round-up” feature lets you invest spare change automatically. This makes growing your portfolio simple. The app also tracks your investments and offers insights to help you make smart choices.
In summary, Raiz stands out with its wide range of investments, low fees, and user-friendly design. It’s a solid choice for Australians looking to invest in fractional investing and cryptocurrency trading easily and effectively.
Key Features of Spaceship
Spaceship is a top micro-investing platform in Australia. It offers many portfolio options for different risk levels and goals. You can choose from five portfolios: Universe, Origin, Earth, Galaxy, and Explorer. Each focuses on different types of companies, from new tech to well-known global firms.
Investment Options
Spaceship has a wide range of investment choices. You can pick from high-growth tech in the Universe portfolio to the more stable Earth portfolio. This variety helps investors match their risk level and goals, whether they like customizing their portfolio or using automated investing.
Fees and Charges
Spaceship’s fees are clear and simple. It charges a $3 monthly fee for balances over $100. Management fees range from 0.15% to 0.50% per year, based on your portfolio. This makes it affordable, especially for those starting small.
User Experience
Spaceship’s interface is easy to use, great for both new and seasoned investors. You can make one-time or regular deposits. This makes it easy to fit investing into your life. Plus, the mobile app lets you manage your investments anywhere, anytime.
Spaceship stands out with its wide investment choices, fair fees, and easy-to-use platform. It’s a great option for Australians wanting to grow their investment portfolio simply and effectively.
Comparing Investment Strategies
Investing wisely is key. Raiz and Spaceship, two top micro-investing platforms in Australia, have different strategies. Let’s see how they compare.
Raiz’s Round-Up Feature
Raiz’s round-up feature is a big plus for those wanting to grow their investments easily. It invests your spare change from daily purchases. This way, you add to your investments without even realizing it.
By rounding up your transactions, Raiz turns your spare change into a steady investment flow. This helps you build wealth over time.
Spaceship’s Portfolio Customization
Spaceship, however, focuses on thematic ETF investing. It offers portfolios based on themes like sustainability, technology, or global leaders. This lets investors match their investments with their values and beliefs.
Spaceship’s platform lets users pick portfolios that fit their goals and risk level. It offers a tailored approach to managing your investments.
| Feature | Raiz | Spaceship |
|---|---|---|
| Investment Approach | Automated round-up investing | Thematic ETF portfolios |
| Portfolio Customization | Raiz Plus allows custom portfolios | Flexible portfolio selection |
| Minimum Investment | $5 | $5 |
Raiz and Spaceship offer unique strategies for investors. Whether you prefer an automated approach or a customized portfolio, these platforms make micro-investing easy and accessible.
Performance and Returns
Investment platforms show their worth in how they grow your portfolio. Let’s examine Raiz and Spaceship’s past performance. We’ll see which one has given better investment returns over time.
Historical Performance of Raiz
Raiz has over 500,000 active users and manages $1 billion in funds. Its aggressive portfolio has seen double-digit returns before. But, recently, it lost 7.27% in three months as of February 2020, showing market volatility.
Raiz’s conservative strategies offer smaller but steady returns with less risk. Its fees become more affordable for those with over $7,500. This makes it a good choice for those wanting a simpler way to grow their portfolio.
Historical Performance of Spaceship
Spaceship has over 200,000 users and manages over $1 billion in funds. Its Voyager Universe portfolio has given a 24.86% return annually for the last 12 months. But, in the last month, it dropped by 2.93%, and in the last week of February, it fell by 10.37%. This shows the risks of its aggressive strategy.
Spaceship charges a $2.50 management fee monthly for balances over $100. This can be expensive for those with large portfolios. For those with smaller balances, Raiz’s lower fees might be more appealing.
Both Raiz and Spaceship offer the chance for significant investment returns and portfolio growth. But, they suit different investors. It’s crucial to think about your investment goals, risk level, and account size when picking a platform.
Fees in Detail
Fees on investment platforms can really affect your returns. Let’s dive into the fees of Raiz and Spaceship. This will help you choose wisely.
Breakdown of Raiz Fees
Raiz is upfront about its fees. For accounts under $15,000, you pay a monthly fee of $3.50 to $4.50. Accounts over $15,000 face an annual fee of 0.275%.
Raiz also has an Emerald portfolio for those who care about social impact. It has the same fee as the other portfolios.
Breakdown of Spaceship Fees
Spaceship charges a $3 monthly fee for accounts with $100 or more. They also have an annual management fee of 0.15% to 0.50%. This depends on your chosen portfolio.
| Platform | Fees for Balances Under $5,000 | Fees for Balances Over $5,000 |
|---|---|---|
| Raiz | $1.25/month | 0.275% per year |
| Spaceship | $3/month | 0.15% – 0.50% per year |
Raiz takes the monthly fee from your bank account. Spaceship takes the management fee from your investment balance.
Knowing the investment costs and fee structure of Raiz and Spaceship helps. You can then choose the best fit for your investment goals and finances.
User Experience: Interface and Design
Raiz and Spaceship have worked hard to make investing easy on mobile apps. Raiz lets users see their portfolio, set up round-up investments, and add more money. Its design is simple and easy to use, perfect for new investors.
Spaceship’s app helps users track their investments, make deposits, and check past results. It uses a simple design to make investing easy and appealing to those who want a hands-off experience.
Raiz User Interface
Raiz’s app shows your investment balance, recent buys, and how your money is split. It’s easy to start round-up investments and make one-time deposits. You can also look at your investment history and change your risk level.
Spaceship User Interface
Spaceship’s app gives a clear view of your investments, including value, recent changes, and how to add more money. Its simple design makes it easy for new investors to follow their money.
Both Raiz and Spaceship aim to make investing easy and user-friendly on their apps. They focus on simple interfaces and features to make investing straightforward for everyone.
Customer Support and Resources
Both Raiz and Spaceship offer great tools for investor education and financial resources. They help new investors understand the investing world. They know how important it is to give easy-to-use information and support.
Raiz Customer Support
Raiz has a top-notch customer support system. They have a user-friendly app and website with lots of educational resources. You can chat with Raiz’s team anytime to get your questions answered.
Raiz also shares insightful blog posts and market updates. These help investors keep up with the latest financial news.
Spaceship Customer Support
Spaceship focuses a lot on investor education and customer support. Their website has a huge knowledge base with articles on investing. You can reach out to their team via email or in-app chat for help.
Spaceship’s blog and social media offer tips for all investors. They help both new and experienced investors.
Both Raiz and Spaceship want to help their users make smart investment choices. They focus on financial education and easy-to-use support. This makes investing easier and less scary for beginners.
“Investing can seem daunting, but with the right financial resources and support, it becomes much more accessible. Both Raiz and Spaceship are doing a great job of breaking down the complexities and making investing more user-friendly.”
Pros and Cons of Raiz
Raiz is a well-known micro-investing platform in Australia. It offers many investment options and features to help people reach their financial goals. But, like any platform, Raiz has its good and bad sides. Let’s look at the main pros and cons of using Raiz.
Advantages of Raiz
- Diverse portfolio options: Raiz has a variety of investment portfolios. You can choose from conservative to aggressive, based on your risk tolerance and goals.
- Micro-investing benefits: Raiz’s round-up feature makes it easy to invest small amounts regularly. This can help you save more over time and develop a consistent savings habit.
- Custom portfolio creation: Raiz lets you create your own investment portfolio. This gives you more control over your investments.
Drawbacks of Raiz
While Raiz has many good features, there are some downsides to consider:
- Higher fees for small balances: Raiz charges a monthly fee of $3.50 for accounts with less than $15,000. This can be high for new investors.
- Limited investment options: Compared to traditional brokers, Raiz offers fewer investment options. This might not meet the needs of more experienced investors.
- Market volatility: Raiz’s performance can be affected by market changes. For example, its aggressive portfolio lost 7.27% in February 2020 due to market corrections.
In summary, Raiz is great for those who prefer a simple, hands-off investing approach. The round-up feature is especially convenient. However, investors with larger balances or those looking for more options might find Raiz’s limitations a drawback.
Pros and Cons of Spaceship
Spaceship is an investment platform that offers unique benefits and drawbacks. It’s great for those looking to grow their money through thematic investing. Unlike traditional robo-advisors, Spaceship caters to tech-savvy and growth-focused investors.
Advantages of Spaceship
Spaceship’s main strength is its thematic investment approach. It has portfolios for specific industries and trends. For example, the Spaceship Universe Portfolio targets high-growth tech and healthcare companies.
This is perfect for investors who want to tap into emerging industries and new technologies.
Another plus is its low fees for small accounts. Accounts under $5,000 pay just $2.50 a month. This is great for young or new investors starting their portfolios.
Drawbacks of Spaceship
Spaceship’s focus on growth sectors like tech and healthcare comes with risks. Its portfolios can be more volatile and affected by market changes. This might not suit investors looking for a more stable investment.
Spaceship also has fewer customization options than some robo-advisors, like Raiz. Investors who want more control over their portfolios might find this limiting.
Spaceship is strong in thematic investing and has low fees for small accounts. It’s good for investors looking into high-potential sectors. But, its focus on specific industries and limited customization might not appeal to everyone.
| Advantages of Spaceship | Drawbacks of Spaceship |
|---|---|
| Thematic investment approach focused on high-growth sectors Low fees for small account balances (under $5,000) | Higher risk due to concentration in specific industries Limited customization options compared to other robo-advisors |
Best Use Cases for Raiz
Raiz is a top choice for new investors. It’s easy to use and helps you start with passive investing. You can build a diverse portfolio without the hassle of traditional trading.
Ideal User Profiles for Raiz
Raiz is perfect for many types of users:
- Beginner investors: It’s easy to start with Raiz, even with just $5. This makes it great for those new to investing.
- Passive investors: Raiz offers a simple way to invest in ETFs. It’s perfect for those who like a hands-off approach.
- Bitcoin enthusiasts: Raiz has a special spot for Bitcoin, making it a good fit for those interested in digital assets.
Raiz is great for beginners and those who prefer passive investing. It’s easy to use, has low fees, and offers many investment options.
| Raiz Key Statistics | Value |
|---|---|
| Total Accounts | Over 600,000 |
| Active Users | More than 280,000 |
| Funds Managed | Over $1 billion |
| Minimum Investment | $5 |
| Monthly Fee (under $15,000) | $3.50 |
Raiz leads the Australian micro-investing market. It’s known for its innovative features and easy-to-use design. This makes it a top pick for beginner investors and those who prefer passive investing.
Best Use Cases for Spaceship
Spaceship is a platform for those who love tech and growth. It’s perfect for investors who get excited about new tech and companies that grow fast. If you’re into that, Spaceship might be great for your portfolio.
Ideal User Profiles for Spaceship
Spaceship fits well with a few types of investors:
- Tech-savvy Growth Investors: People who know a lot about tech and want to invest in companies that will grow fast.
- Hands-off Investors: Those who like to invest without much work but still want to make money from growing stocks.
- Younger Investors: Spaceship is good for young people who are okay with some risk for the chance of big growth.
The platform focuses on new, disruptive companies. It also offers a hands-off, automated way to invest. This makes it attractive to those looking to grow their money in the tech sector.
| Investor Profile | Suitability for Spaceship |
|---|---|
| Tech-focused Investing | Excellent |
| Growth Investors | Excellent |
| Hands-off Approach | Good |
| Younger Investors | Good |
Understanding Spaceship’s unique features and who it’s for can help you decide if it’s right for you. It depends on your investment goals, how much risk you can take, and what you like as a tech and growth investor.
Making the Right Choice for You
Choosing between Raiz and Spaceship depends on your investment goals and risk tolerance. Raiz lets you customize with its round-up feature. Spaceship, however, offers thematic, growth-focused portfolios.
Spaceship has shown better performance in the past. But, its tech focus means higher risk. If you’re okay with risk and have time to wait, Spaceship might be for you. Raiz, on the other hand, is simpler and more automated, perfect for those who want less effort.
Factors to Consider When Choosing
- Your investment goals and time horizon
- Your risk tolerance and appetite for volatility
- The level of involvement and customization you desire in your investments
- The investment options and portfolios that align with your preferences
- The fee structures and overall costs associated with each platform
My Personal Preference
I chose Spaceship for its strong past performance and focus on growth. It’s riskier, but I think its themes could lead to bigger returns over time. Still, it’s important to think about your own financial goals and risk level before deciding.
“The key to successful investing is to find the right balance between risk and reward, aligned with your personal investment goals and risk tolerance.”
Conclusion: Final Thoughts on Raiz vs Spaceship
Both Raiz and Spaceship bring something special to micro-investing. Raiz lets you tailor your investments with its round-up feature and wide range of options. Spaceship, however, focuses on growth by investing in specific themes. Think about what you want to achieve, how much risk you can take, and how involved you want to be.
Summary of Key Points
Raiz is great for making your investment plan your own, with options like custom portfolios and fractional investing. Spaceship, meanwhile, is all about thematic investing, targeting certain industries and growth areas. Each platform has its own strengths, so choose the one that matches your investment goals.
Encouragement to Explore Further
Keep exploring Raiz, Spaceship, and other micro-investing platforms. It’s important to learn about each one’s fees, investment strategies, and how they fit with your financial goals. Micro-investing is a good start, but as you learn more, you might want to look into traditional investing for lower fees and more control.
FAQ
What are the key features of Raiz?
Raiz lets you choose from various ETF portfolios or create your own (Raiz Plus). It has a cool feature where it invests your spare change. The cost is $3.50-$4.50 a month or 0.275%/year for more than $15k.
What are the key features of Spaceship?
Spaceship has five unique portfolios based on different themes. You can pick from “world-changing” companies to established global firms. It costs $3 a month for balances over $100, with fees from 0.15% to 0.50% p.a. depending on the portfolio.
How do Raiz and Spaceship compare in terms of investment performance?
Spaceship did better than Raiz over several years. Starting with $500, Spaceship hit $902, while Raiz reached $585. But, past results don’t mean future success. Spaceship’s tech-heavy strategy is riskier.
What are the advantages and disadvantages of Raiz?
Raiz offers many portfolio choices and a round-up feature. It also lets you create your own portfolio. But, it costs more for small balances and has fewer options than traditional brokers. It’s great for those who want easy investing and like the round-up feature.
What are the advantages and disadvantages of Spaceship?
Spaceship has unique thematic portfolios and lower fees for small balances. It focuses on high-growth companies. But, it’s riskier due to its tech focus and offers less customization than Raiz. It’s good for those interested in tech and growth stocks.
Who is Raiz best suited for?
Raiz is perfect for beginners with small amounts to invest. It’s great for those who like the round-up feature and want a mix of ETFs and stocks without the hassle of traditional brokers.
Who is Spaceship best suited for?
Spaceship is best for those into tech and growth companies. It’s for those who want a hands-off approach but are open to higher-risk, higher-reward investments. It’s ideal for younger investors looking for long-term growth.
How do I choose between Raiz and Spaceship?
Choose based on your investment goals, risk tolerance, and how involved you want to be. Raiz offers customization and a unique round-up feature. Spaceship focuses on growth-oriented portfolios. Think about your investment philosophy and personal preferences.
