Raiz (formerly Acorns Australia) is Australia’s most established micro-investing platform, launched in 2016. It pioneered round-up investing in Australia and has grown to over one million registered users. This review covers Raiz’s fees, portfolio options, historical returns, and how it compares to alternatives.
General information only — this review does not constitute a recommendation to use Raiz.
Raiz at a Glance
| Feature | Detail |
|---|---|
| Founded | 2016 (as Acorns Australia) |
| Minimum investment | $5 |
| Monthly fee | $3.50 (balances < $20,000) |
| Annual fee | 0.275%/year (balances ≥ $20,000) |
| Portfolio options | 8 (Conservative to Emerald/socially responsible) |
| Round-up feature | Yes |
| Super option | Yes (Raiz Super) |
| Regulated by | ASIC (AFSL holder) |
| Availability | iOS and Android |
Portfolio Options
Raiz offers eight portfolio options based on risk tolerance:
| Portfolio | Shares % | Bonds/Cash % | Focus |
|---|---|---|---|
| Conservative | 23% | 77% | Capital preservation |
| Moderately Conservative | 40% | 60% | Low–medium risk |
| Moderate | 55% | 45% | Balanced |
| Moderately Aggressive | 68% | 32% | Growth |
| Aggressive | 82% | 18% | High growth |
| Sapphire (Bitcoin) | Shares + Bitcoin | Bonds | Adds crypto exposure |
| Emerald | ESG shares | ESG bonds | Socially responsible |
| Raiz Custom | User-selected ETFs | — | Customisable |
ETF allocations within portfolios change over time — refer to the Raiz website for current portfolio compositions.
Raiz Fees — The Critical Analysis
Monthly flat fee: $3.50/month = $42/year for balances under $20,000.
This flat fee structure heavily penalises small balances:
| Balance | Annual fee ($) | Annual fee (%) |
|---|---|---|
| $500 | $42 | 8.4% |
| $1,000 | $42 | 4.2% |
| $2,000 | $42 | 2.1% |
| $5,000 | $42 | 0.84% |
| $10,000 | $42 | 0.42% |
| $20,000 | $55 (0.275%) | 0.275% |
At balances under $3,000–$4,000, the Raiz fee is significant relative to expected returns. This is the most common criticism of Raiz.
Above $20,000, the 0.275%/year fee is competitive with many ETFs and managed funds, though low-cost ETFs (e.g., VAS at 0.07%) are still cheaper on a fee-only basis.
Raiz Rewards
Raiz Rewards provides cashback from partner retailers (Boost Juice, Kmart, Bupa, and others) that is invested directly into your Raiz account. For frequent shoppers at partner retailers, this can meaningfully offset monthly fees — though it varies significantly by individual spending patterns.
Raiz Super
Raiz Super is a superannuation product that operates through the Raiz platform:
- Invests super in the same portfolio options as the main Raiz investment account
- Administration fees apply in addition to platform fees
- Generally higher-cost than leading industry super funds (AustralianSuper, Hostplus) for accumulation purposes
- May suit very small super balances or those who want consolidated visibility
Most financial commentators note that large, low-cost industry super funds typically offer better value for super accumulation than Raiz Super.
Raiz Performance
Raiz publishes historical portfolio returns on its website. Past performance varies significantly by portfolio:
- Aggressive portfolio has historically outperformed Conservative in rising markets
- All portfolios are subject to market risk — negative returns are possible in any given year
- Returns fluctuate with global share and bond market conditions
Past performance is not a reliable indicator of future performance. All returns shown on the Raiz platform are before-tax and include the impact of fees.
Who Raiz Suits
Raiz may suit:
- Beginners who want a simple, automated entry to investing
- People who respond well to round-up automation
- Investors who plan to grow their balance above $10,000–$20,000
- Those who want a simple, app-based interface
Raiz may not suit:
- Investors with balances consistently below $3,000 (fees are high relative to balance)
- Those who want to choose specific ETFs
- Investors who want the lowest possible fees
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Frequently Asked Questions
Is Raiz safe in Australia? Raiz is an ASIC-regulated company holding an Australian Financial Services Licence. Your investment is held in a managed portfolio structure with custodial separation of client assets. Your funds are not government-guaranteed against investment loss (markets can fall), but Raiz is a regulated entity subject to Australian financial services law.
What return does Raiz generate in Australia? Returns depend on the portfolio selected and market conditions. The Raiz Aggressive portfolio has historically returned in line with global share markets — approximately 7–10%/year over long periods (before fees), though returns are volatile and negative in some years. Past performance is not a reliable indicator of future performance.
Can you withdraw from Raiz at any time? Yes — there are no lock-up periods. Withdrawal requests typically take 3–5 business days to process and transfer to your bank account. If markets have fallen, your withdrawal amount may be less than what you deposited.
This article is for general informational purposes only and is not a recommendation to use Raiz or any other platform. Platform fees and features may have changed — always check current terms at raizinvest.com.au. For personal advice, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.