Micro-investing lets you invest small amounts of money — even spare change — into diversified investment portfolios using a smartphone app. For Australians who want to start investing but don’t have large sums available, micro-investing platforms like Raiz and Spaceship lower the barrier to entry significantly.
What Is Micro-Investing?
Micro-investing platforms automatically invest small, regular amounts into portfolios of shares, ETFs, or managed funds. They typically work through:
- Round-up investing: Rounds up your everyday purchases to the nearest dollar and invests the difference
- Recurring deposits: Set daily, weekly, or monthly automatic contributions
- Lump sum deposits: Manual deposits of any amount at any time
The underlying investments are usually diversified portfolios of ETFs or managed funds — not individual shares.
Top Micro-Investing Platforms in Australia
| Platform | Minimum investment | Monthly fee | Investment options | Best for |
|---|---|---|---|---|
| Raiz | $5 | $3.50 (under $20K) / 0.275% | 8 portfolios (ETF-based) | Round-ups, beginner investors |
| Spaceship | $1 | $3 (under $100K) | 3 portfolios (tech/global focus) | Tech-focused younger investors |
| CommSec Pocket | $50 | 0.2% (min $2) | 7 thematic ETFs | Investors wanting ETF choice |
Platform fees and features change — always verify current terms directly with each provider.
Raiz — Round-Up Investing Pioneer
Raiz (formerly Acorns Australia) pioneered round-up micro-investing in Australia. Key features:
- Round-ups from linked bank cards
- 8 portfolio options from conservative to aggressive
- Portfolio options include ETFs from Vanguard and iShares
- Raiz Rewards program (cashback from partner retailers)
- Super component (Raiz Super) available
Spaceship — Tech and Growth Focus
Spaceship offers three portfolio options with different investment philosophies:
- Spaceship Universe: Global companies Spaceship believes will shape the future (tech-heavy)
- Spaceship Earth: ESG/sustainable focus
- Spaceship Origin: Broad global index approach (closer to traditional index investing)
No round-up feature — contributions are manual or scheduled.
CommSec Pocket — ETF Access for Small Investors
CommSec Pocket (from the Commonwealth Bank) provides access to seven thematic ETFs with a $50 minimum per investment:
- Australian shares, global shares, sustainability, tech, emerging markets, bonds, and cash ETFs
- More transparent than Raiz/Spaceship — you hold a named ETF directly
- 0.2% per transaction (minimum $2) — comparatively lower cost at larger amounts
Is Micro-Investing Worth It?
The case for micro-investing
- Getting started: The psychology of starting matters — micro-investing builds the habit of regular investment
- Automation: Round-ups and recurring deposits work without willpower
- Low barrier: $5 is enough to start; no need to accumulate a lump sum first
- Diversification: Instant diversification across hundreds of companies via ETFs
The case against (or limitations)
- Fees erode small balances: A $3.50/month fee on a $500 balance is 8.4%/year — far exceeding any reasonable return
- Less control: You invest in pre-constructed portfolios, not individual ETFs of your choice
- Not a substitute for serious investing: Micro-investing alone is unlikely to build significant wealth — it works best alongside other saving and investing strategies
At what balance do fees become acceptable?
- Raiz ($3.50/month flat fee): Fee drops to 0.21%/year at a $20,000 balance; above $20,000 switches to percentage fee
- Most financial educators suggest micro-investing platforms make more sense above $5,000–$10,000 in balance, or transitioning to a standard brokerage account (SelfWealth, Pearler) once you have $2,000–$5,000 to invest
Cluster Articles
- What Is Micro-Investing Australia
- Micro-Investing for Beginners Australia
- How Micro-Investing Works Australia
- Raiz Review Australia
- Spaceship Review Australia
- CommSec Pocket Review Australia
- Raiz vs Spaceship Australia
- Best Micro-Investing Apps Australia
- Micro-Investing vs ETFs Australia
- Micro-Investing in Super Australia
- Tax on Micro-Investing Australia
- Start Investing with $100/month Australia
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This article provides general financial information only and does not constitute a recommendation to use any specific platform or product. For advice tailored to your situation, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.