For our readers who are all about making the most of the loose change and and the cents in their banks, then you’ve likely heard of Raiz and Spaceship Voyager.
Both of these platforms help to automate saving and take the hassle out of saving up your pennies when it comes to the funds in your bank. Unlike the old days, not many of us have a tonne of coins to safely store and build up in a piggy bank, and Spaceship and Raiz work to bring this back.
This type of saving or investing is called micro-investing, and it’s a fantastic way to get your loose change to work for you. You’ll have a few dollars here and there invested from your bank account into either a savings account or investments — where it’ll work to earn you a little more money!
All that out of the way, if you’re unsure of which platform to use, take a look at our comparison between Raiz and Spaceship below.
A Quick Look at Micro-investing
Before we delve into the comparison, we want to go over a little about what micro-investing is and why you should certainly consider it.
To keep things simple, it’s common for micro-investors to simply round off all of their expenses in their bank to use the leftover ‘change’ to inject into an investment account, whether it be for stock, crypto or just savings.
As an example, if you spend $5.50 on a coffee, you’ll use the remaining 50c to move into a bank account or investment account to round the expense to $6.
We’re sure you’ll agree, by doing this with all of your daily expenses, you’ll have a rather large savings fund by the end of the year, especially if these small amounts are being moved into investment accounts and growing all on their own.
With that tidbit about micro-investing out of the way, you’ll likely want to know about Raiz and Spaceship. These are the platforms that automate the process we spoke about above, so you don’t have to do a thing.
Both platforms have access to your bank, and one can even move to round-up your expenses and offset the balance into a savings or deposit account. You can either have the apps make these investments for you, or work on them yourself.
In all, micro-investing is a great way to get started on your investment journey or just to save a little money.
The Best Change Round-up App
When we look at both Raiz and Spaceship, there aren’t all that many differences that make one better than the other. However, depending on your style of investing or how you like to save money, one may come out on top.
In this article, we’ll have a look at these differences to help you choose.
The Investment Options
Off the top, Raiz comes with a generous six different investment options to give you a little more freedom when you’re looking to invest. You can choose between Conservative investments through to Aggressive ones with higher risk.
In addition to this, Raiz even gives you the option of selecting green investment options and ethical portfolios to invest in, which means you have total control over the companies you’re supporting.
On the Spaceship Voyager app, there is a little less on offer, with only two investment options to choose from; either the Index or the company’s Universe Portfolio option. As you might already know, the Index investment option will give you access to investing in more than 200 of the biggest companies across the country, whereas the Universe option will get you into the tech stocks — some of the world’s biggest growers.
To summarise, both of these micro-investment apps are excellent in that you get plenty of choice, though Raiz is a little better when it comes to being able to choose where your money’s going.
The Investment Process or Strategy
As you’ll agree, the investment strategy is incredibly important when it comes to getting the most out of your cash. One of the bigger differences between the two apps is their investment process, and this is where you might want to think about choosing one over the other.
On the Raiz platform, you’ll find your investments are directed to ETFs or the Exchange Traded Funds, which are a little safer than single stocks. They’re essentially bundles of stocks that are more resistant to stock movements in that they’re quite diverse.
This is both good and bad news depending on what you’re looking to do with regards to your investments. An ETF investment won’t have you owning part of a single stock, but rather a suite of them — and thus you’re not going to see the same growth if one stock does grow a lot.
On Spaceship Voyager, the platform offers expert investment managers who work to curate your investments. They will work to choose these funds and invest with them on your behalf, which means you’re getting a more intelligent investment experience.
Fees on Raiz and Voyager
Another big deciding factor will be the fees you’re looking at on both the platforms, and the differences are quite clear here.
On the Raiz platform, you’re charged $1.25 per month regardless of your balance, so long as it’s under $5,000. For balances that exceed $5,000 you’re looking at an annual fee of 0.275 per cent based on the balance that is over $5,000.
The Voyager platform is a little more lenient in that you’re not charged any fees at all for balances below $5,000. This is somewhat important in that if you’re investing loose change, the fees may eat into a large portion of what you’re investing.
If your balance is higher than $5,000, you’re only being charged a 0.05 per cent fee if you’re on the Index investment option. On the Universe option you’re getting charged a 0.10 per cent fee annually — which is very affordable compared to a lot of other investment platforms.
Your Level of Risk
When it comes to investment in just about all industries, there is a level of risk associated. You’re placing your money in a market you have no control over, and this means there’s always the chance you could lose more than you gain.
This is why there are investment tiers on both Raiz and Voyager. You’re able to choose your level of risk and reward and reduce you chances of taking losses.
On the Raiz platform there is the Conservative option which greatly reduces your level of risk, but also your earning potential. For the more risky investor, there’s the aggressive option which will see you earning more, with the potential of greater losses or even a total collapse should there be a major wiggle in the stock market.
On Voyager, there’s a reduced risk in that the funds are carefully curated and managed, though the risk is still relatively moderate here too.
On both platforms there is the option of investing on a global scale, though Raiz has a better array of international ETFs to get into.
Raiz’s ETFs are spread across Asia, Europe, Australia and the US which means you’re getting stocks from all of the countries based on these continents. This, in turn, means these greater control and room for growth when compared to Voyager.
The Spaceship platform does offer some relatively minor international investment opportunities, with a few global corporations landing on the list, though most of the investments you’ll find here are listed on the ASX — so you’re keeping things local.
Green Investing or Ethical Trading
As we know, ethical trading is incredibly important, and it allows you to control which companies you support. Investing in coal, for example, isn’t exactly a green or ethical idea and you should have control over this.
On Raiz, there are the green portfolios to choose from, which give you the option to be socially-responsible and invest in companies that don’t cause chaos with regards to the environment.
The Voyager platform is yet to introduce a green or ethical trading option.
When it comes to adding funds to your account, you’ll want the smoothest and most affordable option.
On Raiz, there’s the Round-Ups option, which is where you’ll see your expenses rounded up and the change moved into the investment account. In our opinion, this is the most seamless and also the most ideal. It means you’re not having to do anything, and simply watching your loose change used to build wealth on your behalf.
Raiz also supports direct transfers, so you can invest more if you’d like to do that.
On Voyager, there’s the option of amount-based investing. You’ll be able to choose a weekly, fortnightly or monthly deposit amount for your investing and this is done through direct debit. You don’t need to invest a tonne here either, so whatever works for you is supported.
There isn’t yet a loose change option, which means if you’re after automation, Raiz is the way to go.
When it comes to dividend stocks, it’s good to know that neither Raiz or Voyager absorb these — they’re still given to you!
If any of the ETFs you’ve invested in have dividends, they’ll be paid out and land in the application’s funds though, not your bank account. You can withdraw them if you’d like, though it’s probably a better idea just to inject these back into the stock market.
There is an option to track dividend payments on the Raiz platform too, so you can see whether you’re on to an earner or not.
On Spaceship Voyager, you can still earn your dividends per-stock, though the managers of your investments will determine when and whether you’re paid these or not. They will often go into your Voyager account, however, they’re restricted until a one-off payment each year.
Withdrawing Your Earnings
To end, the final thing you’ll want to be aware of is how to withdraw and access your earnings on either app!
On the Raiz platform, there is the option to simply withdraw directly to your bank account with no fees or charges. This is fantastic news when it comes to maximising your earnings and getting the most out of your investments. Of course, it’s good to note that you shouldn’t withdraw in times of loss.
Over on the Voyager app, you can sell your stock units whenever you’d like, and there aren’t any fees either. That means you’re getting the entirety of your earnings and not losing anything to withdrawal fees.
The pair of these investment apps are available on Google’s Play Store and Apple’s App Store, so there’s support for iOS and Android here.
Which is Best — Raiz or Spaceship Voyager
As we mentioned at the start of our article, each app will work best for different investors and that means you’re going to have to do a little bit of thinking before choosing one over the other.
In our opinion, the Raiz platform is going to be the winner for those who want as many investment choices as possible, with an array of growth options. You’re getting a little more leeway when it comes to choosing what happens with your investments, and this is good news for many.
On Voyager, there’s less choice, though there are lower fees. The Spaceship Voyager platform is our winner if you’re more of a seasoned trader or know a little about the stock market and are more inclined to go it on your own rather than letting Raiz do the work for you.
Both of the platforms have a great UX and investment experience, so you’re able to have fun and say goodbye to confusion when investing.
In all, you’ll be in good hands on either of these platforms, just be sure to invest less than you can afford to lose and don’t panic when prices drop suddenly.