Exchange Review

Raiz Review

Summary: The Raiz Investment App is one of Australia's most popular micro-investment platforms that enables investors to automatically dollar cost average into their diversified "Smart Portfolios".

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Raiz, formerly known as Acorns, launched in Australia in 2016. Its target market is investors in the millennial and Gen-Z generations. The Raiz platform opens access to ready-made ETF investment portfolios.

Raiz's investment options are as easy to access as is hailing a cab via Uber. Raiz connects any investor with any amount of spare cash to a well thought out basket of securities. The Raiz ETFs track financial investment assets such as commodities, indices, stocks, or cryptocurrencies such as bitcoin.

Raiz Review

Raiz Alternatives: eToro Australia ReviewCommSec Review | CommSec Pocket Review

Table of Contents

How Does Raiz Work?

Raiz has a cash round up feature that collects its account holder's spare change and contributions then invests them in an ETF portfolio. Raiz's "round-up" technology first links your account to your credit or debit card. It will monitor your daily purchases and "round-up" your regular purchase costs to their nearest dollar value.

As an illustration, should you spend $3.50 on a soft drink, Raiz's "round-up" technology will round up that figure to $4, and send the $0.50 to your Raiz account. It will allow these funds to accumulate to $5 then automatically invest them in your Raiz ETF portfolio of choice.  

Raiz round-up feature is a slow but sure way of increasing your investment holdings and generating passive income. On top of this, you can send recurring or one-off payments to your Raiz account. Raiz's recurring investment option is particularly user friendly and flexible.

Raiz Fees

Raiz charges a $3.50 monthly maintenance fee for accounts that hold a $15,000 portfolio value and below. Sapphire accounts have a $3.50 monthly fee, while custom portfolio accounts with holdings of up to $20000 have a $4.50 fee.

Accounts that hold over $15,000 pay a 0.275% account fee. Some other costs that you will pay include issuer fees that range between 0.04% to 0.59% for ETF purchases.

Raiz App

The Raiz mobile app is incredibly intuitive and enables investors to buy, sell and trade the available portfolios on the go. It also displays your investment portfolio balances and tracks your profit and loss in a clean and simple way.

Their platform can also automatically dollar cost average your favourite ETF with micro purchase round ups. Making it a great way to scale in your investment over time.

Raiz Mobile App
The Raiz App on the App Store.

Raiz Smart Portfolios

Raiz offers five different portfolios that vary based on perceived levels of risk from a range of Conservative to Aggressive. These Smart Portfolios contain various Australian and US Stocks like Tesla, Facebook and Netflix which are considered to be risky tech stocks.

Moderately aggressive portfolios have exposure to volatile international and Australian equities. It is a medium to long term (3-5 years) investment option that has a risk of negative returns. The aggressive portfolios carry exposure to Asian, European and US large-cap stocks. The Sapphire portfolio has 5% BTC exposure and a variety of ETFs.

There is also the ethical Emerald fund, which has two ethical ETFs and is currently Raiz's best performing portfolio with a 10.1% yield. This is in comparison to the average 6.9% return for the conservative funds and an average of 8% for the aggressive ETF portfolios.

Raiz Smart Portfolios
The range of Raiz Smart Portfolios.

Conclusion

Raiz is an all-in-one wealth management service that offers an excellent start to a saving and investment culture. It is perfect for beginner investors and will open doors to diversified high-end investment products at marginal costs. Its automated “round-up” technology and investment feature enhance investing discipline.

Pros

  • Perfect for beginners looking to invest small amounts.
  • Exposure to a good range of stocks & ETFs
  • User friendly iOS/Android mobile app
  • Low deposit fees and trading fees

Cons

  • Doesn't offer cryptocurrencies outside of Bitcoin
  • $3.50 account fee for portfolios under $15,000 AUD.
Visit Raiz

Author Bio

Timothy Wilson was a former Prop Trader for a notable crypto trading fund based in Hong-Kong. He built BCA after deciding he wanted to focus his career on educating new users about Crypto and DeFi.

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