Robo Advice Comparison

Stockspot was launched in 2013 and was the first provider of robo investment services in Australia. It gives you the opportunity to choose one of five investment strategies suited to your level of risk tolerance, with funds invested in low-fee exchange traded funds (ETFs) across five asset classes: Australian Shares, Global Shares, Emerging Markets, Bonds and Gold.

Stockspot charges $0 for the first six months then $6.60 a month for balances under $10,000. Balances over $10,000 fees range from 0.792% per year - 0.528% per year inc GST. You will also need to set up a Macquarie Cash Management Account when you open a Stockspot account.

Although its robo advice service was launched in July 2015, InvestSMART has been offering investment advice to Australians since 1999. Once you’ve entered your investment timeframe, appetite for risk and your current assets, the robo advice service provides a financial health check and recommended investment strategy.

There are 10 investment strategies available and InvestSMART’s fees range from 0.67% to 0.97% a year, depending on the amount you invest.

Launched in late 2015, Ignition Direct’s robo advice service offers automated online financial advice, investments and education. Available to people with a minimum of $5,000, Ignition Direct requires you to open a Macquarie Bank Cash Management Account to fund your trades and an OpenMarkets online broking account (from which your trades are placed).

Your risk profile is matched with one of Ignition Direct’s 11 model portfolios. There is a monthly subscription fee and a brokerage fee attached to the service, with prices starting from $198 per month.

Launched in August 2015, Quiet Growth is an automated online investment management provider. With a minimum account balance if $2,000, Quiet Growth can manage investments in individual, joint, SMSF and trust accounts.

Fees start from 0.4% p.a. of the balance you invest, while the first $10,000 you spend is free from this service fee. You can choose from five investment portfolios based on your appetite for risk.

Launched in January 2016, Acorns Australia is the local arm of a US parent company that has offered robo advice to more than one million US investors. It offers something a little different to most other robo advisers by allowing you to link your bank accounts and credit cards to your Acorns Australia account, and then investing the spare change from your daily purchases.

You can set aside a recurring investment amount daily, monthly or weekly, or even invest a lump sum amount with the help of Acorns Australia’s technology. Your money can be invested in a choice of five diversified portfolios based on your risk tolerance, with fees from $1.25 per month (for accounts under $5,000) or 0.275% p.a. (for accounts over $5,000).

Macquarie Group’s OwnersAdvisory platform lets you access more than 30,000 investment choices in Australia and around the world. Customers can use the online platform to buy tailored investment advice that covers local and international shares, ETFs and managed funds. A $55 fee applies per Statement of Advice, while there’s also a $45 monthly subscription fee.

However, OwnersAdvisory merely offers financial advice and does not execute any investments. You can then take the advice you receive and invest your money through your choice of online trading platform.

Clover aims to make it as simple as possible to build wealth and save money in the process. Founded in 2015, it can help you invest in a diversified portfolio of ETFs based on your personalised risk assessment.

Your portfolio can also be regularly re-balanced to ensure that you are on track to reach your financial goals. Clover had not fully launched at the time of writing, so limited information is available concerning the provider’s investment strategies and fees.

Another online robo advice platform still to launch at the time of writing, CapitalU is an online financial planner and advice service.

By connecting all of your accounts and outlining your financial goals, you can receive a comprehensive financial plan and help to manage your investments. Pricing starts from the free Ulite plan through to the $37 per month + 0.3% charge attached to the comprehensive Ustar management investment plan.

Six Park launched in 2016 after two years of testing, with more than $2 million of customer funds under management. Six Park offers five investment portfolios ranging from low to high risk. When you invest with Six Park you’ll pay a one-off establishment fee and a balance-based management fee. The management fee is deducted from your account every month and is calculated based on your average account balance in the preceding month. The management fees start from $10.92/month + GST for account balances between $10,000 and $24,999, and then range from 0.35% to 0.50% a year for accounts above $25,000. There is no annual administration fee.