Best Micro-Investing Apps Australia – Top Apps for Beginners Revealed
Micro investing apps are getting more and more popular with Australians that wish to access the financial markets with small stakes. Not only does this allow the Average Joe to invest on a tight budget, but it also enables you to create a highly diversified portfolio of assets with ease.
If you’re interested in finding the best micro investing apps in Australia, this page reviews the top providers to consider in 2023.
Top Micro Investing Apps 2023
Don’t have time to read our guide in full and want to get started with the best micro investing apps Australia right now? Check out the list below to see which providers stand out from the crowd!
- eToro – Overall Best Micro Investing App Australia – 0% Commission
- Vantage Markets – International Micro Investing App in Australia
- Trade Nation– Easy-to-use Micro Investing App
- Pepperstone – World Popular Micro Investing App
- Plus500 – Best Micro Investing App for Low-Cost Trades
You can scroll down to read a full review of each micro investing app that made the cut.
Best Online Micro Investing Apps Reviewed
In choosing a micro investing app, your main priority is likely to be a provider that allows you to invest with small amounts. However, there are many other metrics that need to be considered too.
For example, how safe is the micro investing app and does it support your preferred financial market? Additionally, you also need to explore payment methods, customer support, and the app’s user experience.
To help clear the mist, below we review the best micro investing apps Australia in 2023.
eToro – Overall Best Micro Investing App Australia
In reviewing dozens of providers, we found that the best micro investing app Australia is eToro. This top-rated Australian stock app supports fractional ownership on all of its supported markets. In simple terms, this means that you no longer need to buy a full stock, cryptocurrency, or ETF.
On the contrary, Australians can now purchase just a ‘fraction’ of one asset. On the eToro app, this starts at just $25 when investing in cryptocurrencies. This means that you can buy Bitcoin and other expensive digital assets with really low stakes. If stocks are more your thing, eToro allows you to invest from just $50 upwards.
This is particularly useful if you’re interested in tech stocks like Tesla, Amazon, or Google – many of which run into the thousands of dollars per stock. Irrespective of which asset you invest in on this top-rated micro investing app – you won’t pay a single cent in commission or ongoing fees. Instead, it’s just the spread that needs to be taking into account – which is the difference between the bid and ask price of your chosen asset. Did you know that eToro is one of the best share trading platforms Australia? Read our in-depth guide for more details.
When it comes to safety, you’ll be pleased to know that eToro is authorized and regulated by the Australian Securities and Investments Commission (ASIC). The micro investing app is also licensed by the FCA and CySEC. You can easily get started with this top-rated trading app by depositing funds with an Australian debit card, credit card, e-wallet, or bank transfer. You’ll pay a small FX fee on your deposit of 0.5%, but after that, you’ll be able to enjoy a truly commission-free trading experience.Pros
- Regulated by the FCA, CySEC, and ASIC
- Trusted brand with over 17 million client accounts worldwide
- Buy stocks without paying any commission or share dealing charges
- Social and copy trading
- Buy stocks or trade CFDs with leverage
- 2,400+ stocks listed on multiple international markets
- Personalised eToro account where you can set up trading price alerts
- Not suitable for advanced traders that like to perform technical analysis
68% of retail investor accounts lose money when trading CFDs with this provider.
Vantage Markets – International Micro Investing App in Australia
Vantage International Group Limited company oversees Vantage F.X., which was founded in 2009. The broker offers various financial instruments such as currency pairs, indices, energy, soft commodities, precious metals, cryptocurrencies, and stocks, all regulated by the Cayman Islands Monetary Authority (CIMA). Over 130,000 active customer accounts are currently hosted within this online trading ecosystem.
While the minimum deposit for trading is high at $200, the broker charges no deposit fees, allowing customers to maximize their account balances. Various deposit methods are accepted for credit cards, debit cards, bank transfers, PayPal, Skrill, Union Pay, Neteller, SticPay, and BitWallet. Leverage can go up to 500:1, which is another attractive value proposition beyond funding.
Clients who fund their accounts with over $1,000 can access Vantage F.X.’s PRO Trader tools. More than 35,000 assets are tradable worldwide through these tools. Additionally, users have access to a premium economic calendar. Segregated accounts are also used to ensure the safety of all client funds.Pros
- Tools and services that add value to trading
- Spreads and commissions are very tight
- An intuitive mobile app with a wide range of features
- It is possible to invest in a variety of asset classes
- Discounts and incentives are generous
- Initial deposits are higher
Your Money is at Risk.
Trade Nation– Easy-to-use Micro Investing App
As a Forex and CFD trading broker, Trade Nation was established in 2014 under the name Core Spreads. The company’s name was changed to Trade Nation in 2019, offering commodities, metals, commodities, stocks, and bonds along with Forex, CFDs, indices, and indices.
In addition to offering services around the world, the broker operates local entities in the U.K., Australia, South Africa, and the Bahamas.
Trade Nation provides comprehensive financial solutions to a wide range of clients worldwide.Pros
- A fully regulated brokerage
- Licenses and oversight are provided by ASIC and FCA
- Withdrawals and deposits are free
- Fixed spreads
- MT4 trading platform
- It is not necessary to make a minimum deposit
- In terms of trading proposals and conditions, regulations vary
- A 24/7 support service is not available
- Offshore entities
Your Money is at Risk.
Pepperstone – World Popular Micro Investing App
Among Pepperstone’s products are Forex and CFDs. It was founded in 2010 and enjoys a good reputation in Australia.
A pure intermediary, it does not have a dealing desk and operates based on a NDD/STP model. There are no conflicts of interest between brokers and their clients (as with market makers) since brokers do not act as counterparties for trades placed by traders.
Pepperstone is regulated by the FCA of the UK, CySEC of Cyprus, and ASIC of Australia, among others. The trading platform supports various financial instruments, such as Forex currency pairs, cryptocurrencies, stock indices, precious metals, and energy contracts.
In addition, Pepperstone has relatively low spreads and does not restrict trading strategies (scalping, hedging, E.A.s, etc.).
Depending on your account type, you can use Metatrader (Pepperstone offers Metatrader 4 and Metatrader 5) or Trading View (the most basic account).
The platform is widely known and popular among traders all over the world.Pros
- Opening an account is easy and quick
- The spreads and commissions are low
- It is not necessary to make a minimum deposit
- There are no inactivity fees
- There are a limited number of assets that can be traded
- There are no CFDs available on European stocks
- It is not suitable for investment over the long term
Your Money is at Risk.
Plus500 – Best Mucro Investing App for Low-Cost Trades
As one of the most popular CFD brokers, Plus500 has disadvantages, such as being unable to invest in stocks or ETFs, but only in derivatives. Scalable Capital and Freedom24 are good alternatives if you want to invest in real assets instead of CFDs. Spanish residents cannot trade CFDs since they are unregulated financial instruments.
Six students founded this Israeli CFD broker over a decade ago. There are thousands of customers at Plus500 today, and the company is even listed on the London Stock Exchange.
CFD traders with experience might find Plus500 appealing. Since Plus500 requires leverage, you must be comfortable with it. Leverage should be handled with caution if you are dealing with it.Pros
- There are no commissions on buys and sells, and spreads are tight
- Fast and reliable execution of orders
- Real-time quotes and advanced analytical tools
- Leverage up to 1:30
- There is an unlimited and free demo available
- Analyzing tools for advanced users
- Fast and secure withdrawals
- It is not possible to own actual assets or have shareholder rights when trading CFDs
- Corporations and businesses cannot open trading accounts
- There are no social trading features
Your Money is at Risk.
Micro Investing Apps Explained
The main concept of micro-investing apps is that they allow the average Australian to access the financial markets in a low-cost and burden-free way.
In other words, the barriers often found at traditional brokerage platforms – such as account minimums and high fees – are removed. Instead, the best micro-investing apps in Australia allows you to invest in the financial markets with really small stakes.
For example, our top-rated provider eToro supports fractional shares, meaning that you don’t need to buy a full stock. Instead, as long as you meet a small minimum purchase of $50 – you can invest as little as you like.
In some cases, micro-investing apps in Australia allow you to round up your debit/credit card transactions. For example, you might spend $9.70 on a book and the app will round up the transaction to $10. The balance of $0.30 will then be added to your investment portfolio.
Is Micro-Investing A Good Idea?
Micro-investing is a good option for many investors due to its numerous benefits. Firstly, it provides an accessible entry point into the world of investing, allowing individuals to start with small amounts of money. This low barrier to entry enables those with limited financial resources to participate in the markets and build their wealth gradually.
Moreover, micro-investing platforms often offer fractional shares, enabling investors to own a portion of expensive stocks they might not be able to afford outright. This diversification potential is particularly appealing, as it allows investors to spread their risk across multiple investments.
Micro-investing promotes regular saving and financial literacy by encouraging regular contributions. By automating small investments, individuals can develop a habit of saving and grow their investments over time.
While micro-investing offers several advantages, it is important to consider its potential drawbacks. One significant concern is the impact of transaction fees. Micro-investing platforms often charge fees for each transaction, and when investing small amounts, these fees can eat into returns and diminish the overall profitability of investments. Additionally, the limited investment options available on micro-investing platforms may restrict investors’ ability to diversify their portfolios fully.
How to Choose the Best Micro Investing App Australia for You
There are many micro-investing apps available to Australians in 2023. As we briefly noted earlier, you should never open an account with a provider just because they support micro-investments. Instead, there are many other metrics that you need to cross off before taking the plunge.
All of the best micro-investing apps Australia discussed on this page are authorized and regulated by ASIC. This means that you’ll be protected by several safeguards – such as client funds being held in segregated, tier-one bank accounts.
ASIC-regulated micro-investing apps must have strong financial stability, clearly display the risks associated with investing, and have their books audited on a regular basis.
Crucially, if you come across a micro-investing app that isn’t regulated by ASIC – avoid it.
One of the main drawbacks with micro-investing apps is that in the vast majority of cases – you won’t be able to pick and choose your own investments. Instead, platforms like Riaz, FirstStep, and Spaceship Voyager ask you to select a pre-packaged portfolio that is based on your financial goals and attitude to risk.
While this might suit those of you that wish to invest passively, such a strategy can be restrictive. For example, Riaz portfolios can contain as little as 4 ETFs, while Spaceship Voyager portfolios often contain many of the same stocks.
This is why we much prefer eToro, which offers the best of both worlds. That is to say, you can elect to invest passively via a CopyPortfolio or by utilizing the Copy Trading tool.
The latter allows you to mirror a successful eToro trader like-for-like. Most importantly, eToro also allows you to pick and choose your own individual investments. This includes over 2,400 stocks from 17 exchanges, more than 250 ETFs, and 16 digital currencies.
Even the best micro investing apps Australia charge fees. After all, they are in the business of making a profit. In some cases, micro investing apps charge a flat monthly fee.
For example, Raiz charges $2.50. But, the app also charges an annual fee of 0.275% – which is multiplied against the amount you have invested. Spaceship Voyager is very competitive in this respect, as you will only pay a fee when you invest more than $5,500.
Even then, the fee starts at just 0.05% per year. eToro goes one step further – as it charges no platform fees whatsoever. In fact, you won’t pay a commission when you buy or sell assets, either.
Other fees that you need to factor in include:
- Deposit/Withdraw Fees
- ETF Expense Ratio
- Early Redemption Fee
Ultimately, we found that the best micro investing apps Australia are very transparent about the fees they charge.
Tools and Features
When reviewing the best micro investing apps Australia, we came across a number of notable features that you might find of interest.
Debit Card Round-Up
Some micro investing apps allow you to round up your debit card transactions. As we covered earlier, this is a great way to invest your spare change into the financial markets. Although the specific amounts will be minute, this can quickly add up if you keep the round-up feature activate for several years.
The best micro investing apps Australia will take full control over your portfolio. This means that you can sit back and invest in a completely passive nature – not least because the provider will rebalance the assets in your portfolio on a regular basis.
We also like micro investing apps in Australia that allow you to set up an automatic investment plan. For example, you might decide to invest $10 every Friday or $100 at the end of each month. Either way, app provider will automatically debit your account on your chosen date – and when invest the money into your chosen portfolio.
A lot of micro invest apps will also allow you to set up specific savings goals. For example, you might be saving money towards a new car. By entering the amount you wish to save and the date you need to reach your target – the micro investing app will give you regular updates on your progress.
Micro investing apps are still relatively new in the Australian market. As such, you might find that a new provider will initially release their app on just one operating system.
In turn, you need to ensure that the app is compatible with your device. The good news is that all of the best micro investing apps discussed on this page are available on both iOS and Android phones.
In order to use a micro investing app, you will first need to make a deposit. Most of the apps that we came across support bank account transfer only. Some – such as those listed on this page, also accept debit card payments. In the case of our top-rated micro investing platform – eToro, you can also deposit and withdraw funds with an e-wallet like Paypal.
Baring in mind that micro investing apps are typically aimed at Australians with little to or no investment experience, you’d expect the provider to offer top-notch customer support.
Unfortunately, we came across a number of apps that allow offer support via email. This means that you might need to wait a couple of days before you receive a response to your query.
On the other hand, most of the micro investing apps that we have reviewed today offer an in-build Live Chat facility. This is great, as you speak with an advisor at any time.
How to Get Started with a Micro Investing App
If you think that micro investing apps mirror your financial goals and investment experience – we are now going to show you how to get started. The walkthrough below you show you how to get set up with our top-rated micro investing provider – eToro.
No longer do you need to invest large amounts to gain access to the global stock markets. Instead, by using the best micro-investing apps in Australia, you often get started with just a couple of dollars. As we have discussed on this page, the best providers give you access to a broad range of markets at very competitive fees.
If you’re looking to get started with the best micro-investing app Australia right now, eToro is well worth considering. This ASIC-regulated app supports thousands of markets – so you can pick and choose the stocks, ETFs, or cryptocurrencies that wish to invest in. Plus, this commission-free micro-investing app supports automated trading – so you can invest in a completely passive manner.
eToro – Overall Best Micro Investing App with 0% Commission
68% of retail investor accounts lose money when trading CFDs with this provider.
What is the best micro-investing app Australia?After reviewing dozens of providers, we found that eToro is the best micro-investing app Australia. By going through a quick 10-minute account opening process, you can invest from just $25 upwards.
How do micro-investing apps work?Most micro-investing apps initially ask you to outline your financial goals and tolerance to risk. Then, you will be offered a pre-built portfolio that aligns with your profile. Once you have selected a portfolio, it's then just a case of funding your account. It is important to remember that micro-investing apps cannot offer you financial advice - unless authorized to do so from ASIC.
Are micro-investing apps worth it?Whether or not micro-investing apps are worth it will depend on your investing experience and financial goals. For example, if you have virtually no knowledge of trading and wish to passively invest a few dollars here and there - then micro-investing apps are great. But, if you're looking to pick and choose your own investments and want full control over where your money goes - you might find micro-investing apps a bit restrictive.
Are micro-investing apps in Australia legit?All of the best micro-investing apps discussed on this page are authorized and regulated by ASIC. As such, you can be sure the application is legit. However, we also came across micro-investing apps that are unregulated or simply licensed in shady offshore locations. These apps should be avoided.
What is the minimum micro investment?The minimum investment amount will be determined by the app provider. With that said, most micro-investing apps in Australia have a minimum deposit requirement that is just a few dollars. In some cases, there is no minimum account balance at all.