8 Best Australian Robo-Advisors of 2024 

Robo-advisors first appeared in Australia a little more than a decade ago and they have taken off. Assets under management (AUM) in the Australian robo-investing market will reach AUD $9.965 billion this year and are expected to grow to AUD $12.66 billion by 2027, a compound annual growth rate of 8.31%, a report by Statista shows.

A robo-advisor is an automated online investment platform that uses computer algorithms to manage your money. When you open an account, you’ll provide information about your investment goals and risk tolerance. The robo-advisor then uses this data to allocate your funds into pre-built portfolios, often consisting of exchange-traded funds (ETFs) that track market indices. Robo-advisors, or just robos as they are often referred to, are meant for both beginner investors and those who don’t have much time to spare to track markets.

One of the main advantages of using a robo-advisor is that they typically charge lower fees compared to traditional financial advisors. This is because they rely on automated processes and pre-built portfolios, which require less human intervention. In this guide, we’re examining the best eight robo-advisors available in Australia, but we’re also looking into two alternative intelligence-driven stock picking platforms available in Australia, that require a little more work on the part of investors.

A closer look at these top-ranked robo-investing platforms in Australia

Now, let’s break down the top robo-advisors for Australian residents, based on multiple factors, such as the available assets and the costs of using these platforms:

1. CommSec Pocket: Simplified robo-advisor for novice traders

It only costs AUD $50 to get started with CommSec Pocket, a micro-investing app which was created in 2019 by CommSec to cater to beginner investors. The app allows investors to choose from one of 10 themed ETFs. Furthermore, trades cost just AUD $2 per trade up to AUD $1,000, with no management fees. Trades of more than AUD $1,000 are charged 0.20% per trade value, so a AUD $2,000 trade will actually cost AUD $2,004.40.

CommSec Pocket’s user interface is simple and easy to follow. Users can set up regular investment top-ups with automatic contributions from their linked bank account, helping them to be consistent in building their portfolios. One advantage is that CommSec allows Commonwealth Bank customers to manage their investments alongside the rest of their finances. 

Some of the downsides for CommSec is the fees are relatively high for small investments compared to other robo-advisors. Also, having only 10 ETFs to choose from is somewhat limited and you would need to open a separate CommSec account (for a $500 minimum to do share trading). Investors need to choose their own ETFs to ensure their portfolio is diversified and CommSec Pocket does not offer financial advice.

2. Spaceship Voyager: Focusing on preplanned stock portfolios

Instead of delivering prepackaged portfolios of ETFs, Spaceship Voyager compiles professionally managed pools of stocks. There’s no minimum deposit required to invest. 

Spaceship includes five managed portfolios: Spaceship Origin Portfolio, Spaceship Explorer Portfolio, Spaceship Earth Portfolio, Spaceship Galaxy Portfolio, Spaceship Super Portfolio and Spaceship Universe Portfolio. Spaceship’s investments are more aggressive than those of some rivals as they focus on growth. Its most conservative portfolio, Spaceship Galaxy, balances lower-risk investments such as bonds and cash with growth stocks such as Airbnb, Shopify, Tesla, Nike, and Amazon. 

It’s important to note that it doesn’t take your personal circumstances into account, and provides general investment advice. When you invest in a Spaceship Voyager portfolio, your money is pooled together with other investors’ money. This means that you cannot select individual investments to exclude from a portfolio. 

Spaceship Voyager charges an AUD $3 monthly fee for its portfolios when you have at least one portfolio with a balance of AUD $100 or more at any time during the month. If you do have $100 or more invested with Spaceship Voyager, you are only charged one AUD $3 monthly fee regardless of how many portfolios you have. There’s also a yearly management fee from 15% a year for the Spaceship Origin Portfolio, rising to 25% a year for the Spaceship Explorer Portfolio and 35% for the Spaceship Galaxy Portfolio.

3. Betashares Direct: Solid choice for steady investors

Betashares Direct, is a platform of Betashares, a fund manager founded in 2009 that focuses on ETFs. The parent company has more than 1 million investors and more than AUD $40 billion in AUM. The Betashares Direct robo-advisory app allows investors to keep fees low, while investing in automated pre-built portfolios or your own custom portfolios. The ETFs are traded on the ASX or Cboe Australia with zero brokerage. The platform also has an AutoPilot function, where you can set up your account to automatically invest pre-set amounts (but it has to be at least AUD $100) into one of five Betashares ETFs. You can go beyond AutoPilot and invest in any ETF on the ASX through the app.

BetaShares makes money from a monthly fee that it charges customers who invest in pre-built or custom portfolios. It charges users AUD $3 a month on balances of up to AUD $10,000 or 0.02% a year on balances above $10,000. In custom portfolios, where users decide which ETFs they hold, the fee climbs to $4 a month on balances of up to $10,000 and 0.25% a year on balances above that. One negative is that customers don’t earn interest from uninvested cash, as Betashares retains the interest earned.

It takes a little more to get into Betashares Direct as it charges a AUD $500 minimum initial deposit and the minimum trade size is AUD $10. However, there is no charge to transfer an existing ETF you have at another brokerage to Betashares Direct.

4. Raiz Invest: Turning change into investments

Raiz Invest, which began as Acorns Australia in 2016, is the Australian branch of a US-based company that provides robo-advice to more than 1 million investors. Raiz’s unique selling point is its focus on micro investing, which permits you to link your bank accounts and credit cards to your Raiz account, automatically investing the spare change from your daily purchases. You can start investing with Raiz for as little as AUD $5 and you can use your spare income to invest in ETFs, bonds, stocks and bitcoin.

You can choose to set aside a recurring investment amount daily, monthly, or weekly, or make a one-time lump sum investment using the Raiz app. Money in your Raiz Investment Account is invested into a mix of ETFs aligned with one of seven different Portfolios selected by you. The portfolios range are Conservative, Moderately Conservative, Moderate, Moderately Aggressive, Aggressive and Emerald. Once you choose an account, Raiz can track credit cards, debit cards and other bank accounts and will round up every purchase to the nearest dollar and keep track of this amount. When your round-ups hit your round-up threshold, Raiz will withdraw it from your bank account and invest it for you.

Raiz charges a fee of AUD $4.50 per month for standard portfolios under AUD $20,000, or 0.275% annually for accounts over $20,000. It charges AUD $5.50 a month for plus portfolios.

5. Sharesies: Plenty of features for novice investors

While it has more than 600,000 investors in Australia and New Zealand and more than AUD $1 billion in AUM, Sharesies is a micro-investing broker. It offers investing in the New Zealand Exchange (NZX), Australian Securities Exchange (ASX), Nasdaq, New York Stock Exchange (NYSE), and the Chicago Board Options Exchange (CBOE). Additionally, the platform allows investment in ETFs and provides access to a diverse range of assets simultaneously, including direct share purchase.

It doesn’t have a minimum deposit, and has an auto-invest feature, which offers you set-and-forget investments into a Global, Responsible, or DIY order. Sharesies also has a round-up option, allowing you to invest small amounts on a regular basis. It also has a savings account feature for accounts that pays above-average interest rates.

The robo-advisor has several low-cost plans, beginning with the pay-as-you-go plan. Each time you buy or sell shares with the plan, Sharesies charges a 1.9% transaction fee on the amount invested up to a cap of US $5 for US shares, AUD $6 for Australian shares, and NZD $25 for New Zealand shares. The AUD $6 a month plan covers all transaction costs up to a set amount (AUD $500 on buy-sell orders and AUD $1,000 on auto-invest orders) and the AUD $10 a month and AUD $20 a month have even higher caps on transaction costs.

6. Pearler: Great set-it and forget-it option for some

The investing app has more than 154,000 customers. Its focus is on making investing simple and even a little boring, with an emphasis on long-term holds and transparent pricing. It offers auto investing and also allows micro-investing in 10 popular ETFs. Pearler also facilitates direct share investing in more than 2,000 ASX and 5,000 US shares.

The fees for trading are higher than some apps, with Pearler charging AUD $6.50 to buy or sell Australian or US shares. That charge, though, drops to AUD $5.50 a trade if you prepay in a feature called Pearler Prepay where you pay AUD $55 in advance. Its fees for micro-investing are more competitive. It costs AUD $1.70 a month to invest in one of the company’s 10 ETFs, to AUD $2.30 a month to invest in multiple ETFs. In both cases, there’s no charge until you invest AUD $100 or more. However, Pearler can be more economical for investors with larger portfolios who don’t trade frequently, because there’s no percentage fees that rise with your investment balances.

One of the negatives for Pearler is the somewhat limited number of ETFs. Another negative is, if you choose to leave Pearler, you can’t move to another broker without realising capital gains since your account holds the individual ASX-listed funds or shares directly. 

7. Stockspot: Focusing on low-cost specialised portfolios

The platform has been around a little more than a decade, making it one of the more experienced Australian robo-advisors with more than AUD $800,000 million in AUM. The company focuses on low-fee ETFs across five asset classes: Australian shares, global shares, emerging markets, bonds and gold.

It sets a relatively high entry point, a minimum of AUD $2,000 to begin investing. It charges from AUD $5.50 a month for accounts with AUD $10,000 or less. The annual management fee is 0.66% of the invested funds for accounts with more than AUD $10,000 but less than AUD $200,000. For accounts with AUD $200,000 to $1.9 million, the fee is 0.528% per year. For accounts with more than AUD $2 million, the fee is 0.396% per year. This management fee covers portfolio management, rebalancing, and access to the Stockspot platform.

All of its platforms include an annual strategy review, no brokerage, withdrawal or transaction fees, and automatic dividend reinvestment. The most basic plan doesn’t include automatic rebalancing, but the rest do. Stockpot builds investors a personalised portfolio of low-cost ETFs, ensuring that it’s aligned to your risk capacity. The portfolio will receive yearly strategy reviews and automatic adjustments as you near retirement. 

8. InvestSMART: Good choice for higher-end investors

The company was founded as FloatNews in 1999, then renamed InvestSMART in 2001 as an investment research and tool source. In 2013, it launched Australia’s first robo-advisor service. InvestSMART focuses on professionally managed investment portfolios, focusing on diversification.

InvestSMART offers a variety of investment options, ranging from single assets to diversified portfolios. These options are selected by its  experts to match different risk tolerances and financial goals. Once you’ve chosen an investment, you’ll need to open a Professionally Managed Account (PMA) and allocate funds to your selected portfolio. After that, InvestSMART will take care of managing your investments.

InvestSMART is better for investors with larger portfolios because of the company’s fee structure. It charges a management fee of 0.55% per year for investments up to $100,000 and a flat rate of AUD $550 a year beyond that. It costs AUD $10,000 to start investing in one of its portfolios. Thus, an investment of $10,000 would face management fees of $55 a year, while a portfolio of $900,000 would only incur a fee of AUD $550. InvestSmart also charges trading fees when you buy or sell an investment of AUD $4.40 a trade or 0.088% of the trade, whichever is higher.

How do these Australian robo-investing platforms stack up?

Platform	Minimum deposit AUD	Fees in AUD	Investment products	ASIC regulated	Trustpilot score
CommSec Pocket	$50	Trades begin at $2 per trade No management fees	ETFs	Yes	3.1 stars
Spaceship Voyager	$0	Management fees start at 15% a year Monthly account fees start at $3	Yes	4.1 stars
Betashares Direct	$500	Flat trading fee begins at $3 per month	ETFs	Yes	3.0 stars
Raiz	$5	Management fees begin at $4.50 a month	ETFs	Yes	3.6 stars
Sharesies	$0	1.9% transaction fee	ETFs, stocks	Yes	3.7 stars
Pearler	$500	As low as $5.50 a month for share trades $1.70 a month to invest in an ETF	ETFs, shares, and managed funds	Yes	3.6 stars
Stockpot	$2,000	Management fee begins at $5.50 a month	ETFs	Yes	4.5 out of 5 stars
InvestSMART	$10,000	Trading begins at $4.40 a trade Management fees begin at 0.55% per year	ETFs	Yes	4.0 stars

What are the pros and cons of using a robo-advisor? 

Using a robo-advisor isn’t for everybody, but they have certain advantages for many investors. A few pros and cons of robo-investing:

The advantages of robo-investing

• Low cost: Robo advisers generally offer significantly lower fees than traditional human advisors, making them a cost-effective option for investors.
• Automation: Investing decisions are handled automatically by algorithms, reducing the risk of human error and saving time.
• Diversification: Robo advisers can easily diversify your portfolio across various asset classes and industries, helping to mitigate risk.
• Accessibility: Many robo advisers offer mobile apps, providing convenient access to your investments from anywhere.
• Tax optimisation: Advanced algorithms can help minimise your tax burden, allowing more of your money to grow.

The drawbacks of robo-investing

• Limited advice: While robo advisers offer guidance, they cannot provide personalised advice tailored to individual circumstances, which may limit some investors’ decision-making.
• Lack of human interaction: For those who prefer personal interaction, robo advisers may feel impersonal and lacking in the ability to provide immediate answers to questions or address complex situations.
• Technology dependence: Reliance on technology can lead to potential disruptions or delays in transactions, especially during technical issues or market volatility.
• Not suitable for all investors: Robo advisors may not be ideal for investors who require frequent adjustments or active monitoring of their portfolios, such as those investing in highly volatile assets.
• No guaranteed returns: Investing, whether through a robo-advisor or traditional means, involves risk. Past performance does not guarantee future results.

How to choose a robo-advisor for your investing style? 

Choosing a robo-advisor that aligns with your investing style involves several factors, including risk tolerance, fee structures that fit your investing style, how much you are investing and what other features matter to you, such as micro-investing or financial guidance. By carefully considering these factors, you can choose a robo-advisor that aligns with your investing style and helps you achieve your financial goals:

Risk Tolerance:

• Conservative: If you’re risk-averse, look for a robo-advisor that emphasises low-risk investments like bonds and stable stocks.
• Moderate: For a balanced approach, choose a robo-advisor that offers a mix of ETFs or a mix of stocks.
• Aggressive: If you’re comfortable taking on more risk for potentially higher returns, opt for a robo-advisor that specialises in growth stocks and other riskier assets.

Investment Goals:

• Retirement: Robo-advisors can help you build a retirement portfolio based on your age, income, and desired retirement lifestyle. 
• Specific Goals: If you have a specific goal in mind, like saving for a house or college, ensure the robo-advisor can tailor a portfolio to meet that objective.

 Fees:

• Advisory Fees: Compare the fees charged by different robo-advisors. Some charge a flat fee, while others charge a percentage of your assets under management and some charge both.
• Other Fees: Understand any additional fees, such as transaction fees or account minimums.

Investment Options:

• ETF-based: Many robo-advisors use exchange-traded funds (ETFs) for their portfolios. Ensure the robo-advisor offers a variety of ETFs to suit your investment preferences.
• Customisation: If you want more control over your investments, look for a robo-advisor that allows you to customise your portfolio to some extent.

Customer Service:

• Accessibility: Consider how easy it is to contact the robo-advisor’s customer service team.
• Responsiveness: Evaluate how quickly and effectively they respond to your inquiries.

6. Additional Features:

• Tax optimisation: If tax efficiency is important to you, look for a robo-advisor that offers tax-loss harvesting and other tax-saving strategies.
• Financial planning: Some robo-advisors provide additional financial planning services, such as budgeting and retirement planning.  

Our methodology of selecting the best robo-advisor services for Australians

We looked for robo-advisors that offered a diverse range of investments, while keeping fees low. There were several factors that we looked for, particularly platforms that allowed micro-investing

How do we calculate fees per platform?

There are several fees that robo-advisors charge and they vary depending on how much you are investing and how frequently you trade. We looked at minimum deposits, costs per trade (whether it was a flat fee or percentage based), as well as whether the robo-advisor charged a management fee. 

FAQs on Australian robo-advisors