Since their invention, Robo-advisors are assisting investors in analysing the market and making worthwhile investing decisions. They are a blend of AI and mathematical algorithms that allocate the assets and provide reliable financial suggestions. Furthermore, it tracks your assets, transactional histories, investment abilities, and degree of risk aversion to magnify your return on investment.
When it comes to investing in Exchange-Traded Funds (ETFs), Robo-advisors would be a great place to start. They identify your financial resources and provide reliable suggestions to invest in ETFs, stocks, bonds, and alternative assets like crypto currencies. Meanwhile, every platform has its customised methodology to analyze the ETF market and suggest financial opportunities accordingly. That’s why you must review various Robo-advisors before selecting one as your financial assistant.
Let’s have a walk around on 5 of Australia’s most popular Robo-advisors and figure out the best option for you.
Here are the 5 best Robo-Advisors in Australia:
Raiz
Founded in 2016, Raiz is amongst the best micro-investing platforms in Australia. Developers programmed Raiz to assist investors in investing spare income into ETFs. Interestingly, the platform allows investors to start their investment journey at just $5. Raiz is a secure and efficient platform used by more than 268,000 Australians and 1.6 million investors worldwide. Also, they have recently expanded beyond Australia into Thailand and Malaysia.
How Raiz works?
As discussed above, Raiz uses your spare income to invest in ETFs,, bonds, stocks, and bitcoin. Suppose you bought new boots for $49.10 and are left with 90 cents when rounding up to the nearest dollar. Raiz will invest 90 cents by rounding up the transaction to $50. Along with you, 100 investors invested 90 cents in ETFs using the platform. It purchases an ETF unit of $90 and allots one share to each investor. This may allow you to reach your financial goals while not noticing the small amounts accumulating from everyday transactions.
Spaceship Voyager
Spaceship Voyager is one of Australia’s most popular Robo-Advisors designed for both newcomers and experts. It may be a micro-investing platform, but its investment methodology is quite different from other Robo-Advisors. Unlike Raiz, the platform invests in business giants worldwide instead of investing in ETFs. Spaceship Voyager is gaining popularity since 2018 and is used by more than 175,000 investors worldwide.
How does Spaceship Voyager work?
There is no investment limit or minimum investment if you are using Spaceship Voyager. The platform offers you two customised portfolios i.e. Spaceship Index Portfolio and Spaceship Universe Portfolio. In the index portfolio, the platform assists you in investing your disposable income in global IT, healthcare, and consumer care companies. Whereas you can invest in other large entities across the industries using its Universe portfolio.
Sharesies
Sharesies is a micro-investing platform with more than 320,000 investors and $1 billion under management. The platform allows you to invest in the Australian Securities Exchange (ASX), New Zealand Exchange (NZX), New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE). Also, you can invest in ETFs and get access to various assets at once.
How Sharesies works?
Like Spaceship Voyager, Sharesies do not feature any minimum or maximum amount of investment. The platform creates an investment pool of various investors with similar funds and invests their income in the most worthwhile option. Suppose an Amazon share is $55. Sharesies will pool the funds of 100 investors with 50 cents and allot 1% share to each. According to Brooke Roberts, you can grab the investment opportunities like an investor with $500,000 while starting with just a$5 in the platform.
Sixpark
Sixpark is one of the top-notch Robo-advisor platforms with customized assets allocation. The platform is a combination of expert guidance and smart technology designed for higher ROIs. With Sixpark, you can grab opportunities for diversified investing conveniently and cost-effectively. Sixpark has a team of professionals, including the founder and chairman, to assist you in making better financial decisions.
How Sixpark works?
The platform uses a free assessment to understand your investing abilities and degree of risk aversion. After that, the platform suggests the most relevant investment strategy to give a kick-start to your investment journey. You can choose from five portfolios, including conservative, conservative balanced, balanced, balanced growth, and aggressive growth. Once your account balance is $2000 or more, the platform will invest it in ETFs according to your requirements.
Pearler
Commenced in 2018, Pearler is an innovative stock brokerage platform designed for both new investors and experts. It deals in $9.50 CHESS trades and ETFs (Exchange Traded Funds) with convenient auto investing features. Moreover, the platform has a financial marketplace where investors can analyze the assets and make the best financial decisions. From goal tracking to Sharesight integration, Pearler offers a gamut of financial independence (FI) features to boost your investment journey.
How does Pearler work?
Pearler works with auto invest and auto-deposit features to enable automation in your investing process. It features equal across, rebalancing, shares from the portfolio, and single share below target weight. Thus, you can choose from $9.50 CHESS trades and ETFs to start your investment journey. Pearler do not charge brokerage fees from investors while investing in ETFs, but you need to pay $9.50 as a brokerage if you are investing in CHESS trades.
Pros and cons of Australia’s 5 best robo-advisors:
| Platforms | Pros ✅ | Cons ❌ |
|---|---|---|
| Raiz | Perfect option for newcomers $5 minimum investment Choice between multiple investment portfolios Secure platform | Complicated fee structure Does not invest in other assets except ETFs. May debit your account at an inconvenient time. |
| Spaceship Voyager | Simple fee structure Convenient switch between portfolios No minimum investment Regular investment top-ups | Political and economic factors may have adverse effects No support for currency hedging Fund liquidity not clear |
| Sharesies | Multiple investing options Investment in most well-known equities and ETFs. No minimum investment No brokerage fees | High inherent risk No access to derivatives and leveraging options Not CHESS HIN structured |
| Sixpark | No additional fees except a percentage. Professional investment committee Multiple options in portfolios Streamlined automation for be | $2000 minimum investment balance May lead to inappropriate portfolio asset allocation Not CHESS HIN Structured |
| Pearler | Invest in CHESS sponsored trades Auto investment and deposit features Perfect choice for long term investing Designed for newcomers | No access to US shares Complicated sign-up process No mobile app for IOS devices yet. |
Our Verdict:
Robo-Advisors are amongst the most appreciated financial independence management systems in the world. They work with AI and mathematical algorithms to provide better financial decisions. Undoubtedly, the platforms are reliable but use different methodologies while assisting you with investment decisions. The experts recommend selecting a platform or a couple of platforms that work according to your degree of risk aversion and investment abilities for generating the expected ROI.
