Raiz v Spaceship v Commsec Pocket

Bryce: [00:00:31] Welcome to Get Started Investing feed podcast, where we attempt to answer the most common money and investing questions from the community to help us all become better investors. If you're joining us for the first time, welcome, We strongly recommend that you scroll up and started episode one. Now, while we are licensed, we are not aware of your personal circumstances. All information on this show is for education and entertainment purposes. Any advice is general advice only. With that said, my name is Bryce and as always, I'm joined by my equity buddy, Ren. How are you going? 

Alec: [00:00:59] I'm very good, Bryce. I am excited for this episode. You said this is for entertainment purposes. This episode can either be very entertaining or it could fall flat on its face. But I really high hopes are. The big question that we want to answer today is a very common question in the Equity Mates community. Which micro investing app should I use a.k.a. is Raiz or spaceship better? And we're also going to throw in CommSec Pocket because it is also a micro investing app. So the question we're going to answer today, should I use Raiz or Spaceship or CommSec Pocket? Yes, and we're going to personify those apps to help us answer that question. And if you're wondering what we mean, you remember the old Mac app said, Hi, I'm Brian. Say, Yeah, we're going to do that. 

Bryce: [00:01:48] And to do it, we're bringing in our head of production and producer Sascha. Sascha, Welcome.

Sascha: [00:01:55] Hi, I'm CommSec Pocket. 

Bryce: [00:01:58] Oh wow. Sascha is Already. Sascha is in character method acting nicely. 

Sascha: [00:02:05] I've been preparing all morning. I've been doing warm ups. I'm ready.

Alec: [00:02:09] Why don't we start by doing that? Let's go around and introduce ourselves. 

Bryce: [00:02:13] Sure. Well, hello everyone. I am Raiz. I'm a micro investing app with a diversified set of portfolios made up of multiple ETFs. 

Alec: [00:02:22] Hi everyone. I'm Spaceship. I am a micro investing app that gives you actively managed funds full of growth stocks. 

Sascha: [00:02:31] I've already introduced myself, but I'm CommSec pocket and I say you can invest yourself in a curated selection of ETFs. 

Bryce: [00:02:39] Great. Well, glad to be here with everyone. 

Alec: [00:02:43] All right. Well, the first question, the biggest question is how much money do I need to get started? So I'm going to kick it off here at Spaceship. You don't need anything to get started. We have $0 minimum investment. You do need a $5 minimum deposit. But once that money's in the door, you can start investing with $0.

Sascha: [00:03:05] It's a bit hard to do that. 

Alec: [00:03:07] So don't you question it. 

Bryce: [00:03:11] Here at Raiz, it is slightly different. You need a minimum deposit of $5 to kick things off in my portfolios, but you do also need a minimum investment of five points as time goes on. Rumour. Rumour has it though. Spaceship. That concept pocket is slightly more expensive. 

Alec: [00:03:28] Wouldn't let it become so pocket right now. 

Sascha: [00:03:32] Hey, so you need a pineapple to get started with CommSec pocket. Sorry. Yeah. You need 50 bucks. Minimum deposit, 50 bucks? Minimum investment. But you know you can't invest with no money. So I think that that makes sense. 

Alec: [00:03:47] Okay. 

Sascha: [00:03:48] So while you need the most as the minimum investment or the minimum deposit for CommSec pocket, for myself, I do think I'm the cheapest in terms of fees. CommSec pocket, it's $2 per trade. If under $1,000 investment, if it's over $1,000, then it's 0.2%. So for example, if you're going to invest 1500, the costs would be $3. Pretty simple.

Alec: [00:04:15] That's pretty.

Bryce: [00:04:16] Cheap. That is. Pretty Cheap. What about Spaceship over there? Where are you sitting? 

Alec: [00:04:21] So I charge $2 a month for any balance over $100. If you have less than $100, we waive that $2 amount. Say, yeah, this sounds complicated. Yeah, Plus, plus we do charge a management fee on the amount you have invested. If you invest in our spaceship Origin portfolio, it's 0.15%. And if you invest in our other two portfolios, it's 0.5%.

Bryce: [00:04:49] Spaceship too Confusing for me, my friend. Over here at Raiz, we keep it simple. You will only pay a monthly fee depending on which portfolio you are in of between 3.50 and 4.50 per month. That's it. No brokerage, nothing flat fee. Or if you've done the hard yards and built an account to over $15,000, we just charge you 0.275% of that balance. 

Alec: [00:05:18] You can't say that's it and then have an. Oh after that. 

Bryce: [00:05:23] I just did it. I just did it. 

Alec: [00:05:25] All right, look, I'm confused by all of these fees. So what I'm going to do. It suggests a scenario. I'm an investor. I'm investing $100 a month each month for 12 months. Yes. What fees am I paying?

Bryce: [00:05:40] All right. Well, over here at Raiz, you're going to pay between $3.50 and 4.50 per month. That's it. It's basic.

Alec: [00:05:48] Not so certainty. 

Bryce: [00:05:50] So to put that into context, at the end of the year, you will have paid between $42 and $54 in fees. Yeah, it does sound quite a lot. 

Alec: [00:06:01] Well, I'm excited to go next after that. I charge you $2 a month, so that's 24 bucks. There's no range here. 24 bucks plus my fee. Now, let's say you invested in my spaceship universe portfolio. 0.5%. You're paying 3.25 with your $100 a month. So 24 plus 3.25. 27.25 JJ is raised. 

Bryce: [00:06:29] That's half the price of you looking.

Alec: [00:06:31] A little expensive. 

Bryce: [00:06:33] What is CommSec Pocket? 

Sascha: [00:06:35] Spaceship you did so well until you added that but and added 325 CommSec pocket If you're back to your scenario or spaceship, I keep going to call you rent. If you're investing $100 a month for 12 months in the same ETF, it's just $2 a trade. So you'd be paying $24.24 flat. No ifs, no buts, no friends. No, however, is. That's it? 

Alec: [00:07:05] But I bet you CommSec pocket investment options are pretty average. 

Bryce: [00:07:09] Well, let's chat about investment space. 

Alec: [00:07:12] It's just like, okay, cool.

Sascha: [00:07:15] Look, I'm hearing your doubt and I'm hearing that you're saying that I'm limited in my options, but we do have seven ETFs to choose from, which cover a whole range of thematics and options that investors are interested in. We've got Ayers AD, which is the top 200 Australian companies. We've got IOO, which is the top 100 global companies. We've got Effy, which is global sustainable Leaders, we've got IXJ, Global Health Care, IEM, Emerging Markets, NDQ Global Tech Companies. S.Y.I Dividend Yield Fund. 

Alec: [00:07:49] Too many acronyms from CommSec.

Bryce: [00:07:53] Tickers, tickers, tickers. And only seven. Oh my goodness. 

Sascha: [00:07:57] Well, you. Have to say out loud as you investing. It's a podcast. 

Bryce: [00:08:04] Well, that brings me to mine because CommSec Pocket your ETFs. I've also got some ETFs, but I have eight different portfolios of ETFs available. What we have is the standard, which is our OG five original portfolios constructed to suit different risk levels, standard investment portfolios ranging from conservative through to aggressive 85 to choose from depending on your risk tolerance. Then if you. 

Sascha: [00:08:32] what does Even mean?

Bryce: [00:08:33] CommSec pocket, just leave it. Then if you're thinking, Oh, I want to invest socially responsible, socially responsible. We have an Emerald portfolio which is for exposure to socially responsible themed investing. If you're feeling a bit risque and want some access to Bitcoin, we have the Sapphire portfolio, which includes a 5% allocation to Bitcoin, giving you an easy way to invest in crypto. So you've got five original OG portfolios, the Emerald and the Sapphire, but you can then create your own custom portfolio from a range of ETFs and Bitcoin. So eight investment options. Pretty simple. 

Alec: [00:09:16] Oh my God, CommSec Pocket, Raiz. When will you like? Have you ever heard of analysis paralysis or choice overload? You guys are not giving people what they want. Custom Portfolios 5% Allocation to Bitcoin. I might as well just sign up with a broker. Here at Spaceship, we keep things simple. We have three portfolios for you to choose from. Spaceship Universe and actively managed fund focussed on faster growing companies. Spaceship Origin a bit more passive, a bit more slower growing. Some of the biggest companies in the world. And then Spaceship Earth, a sustainable fund looking at some of these faster growing companies, but really focusing on ESG. That's it. Simple three to choose from. That's all you need. 

Bryce: [00:10:09] Okay, Fair. Cool. But I think where I come into play is some of my functionality that may get me across the line.

Alec: [00:10:16] Oh, right. 

Bryce: [00:10:18] So I've got five key functions. The first is round ups, which is where you can plug in your debit card. And every time that you go and buy a coffee for three. It'll rounded up to four points and I will take that extra $0.50 and put it in to your portfolio of choice. $0.50 here, $0.75 there. It all adds up over time. So round up functionality is something that a lot of my users really enjoy using. The second is recurring investments. You can set up weekly, daily, monthly investments in the portfolio of your choice. Using my recurring investment product, you can do lump sum investments, but what I really love and see a lot of users using is our savings goals accounts. You can set a savings goal and use our platform to reach that savings goal by micro investing into it on a daily basis through our round ups. And finally, if that's not enough, we have a reward system that gives cash into my raise accounts for simply shopping online with a selection of brands. Do you want me to leave it there? Drop, drop mic and walk away? 

Alec: [00:11:27] Do you want to incentivise the wrong behaviour? Encouraging people to buy things online or invest? 

Bryce: [00:11:33] Yeah, you get cash back that goes into investing. 

Alec: [00:11:36] Well, it's just a really disappointing to say you're right. All right. 

Bryce: [00:11:40] Spaceship where you at?

Alec: [00:11:42] Look. As I said, we like to keep things simple and to be honest we don't need cash rewards. Our users come to us for investing and that's what we're going to give them. We'll give them round ups, will give them the ability to do lump sum investments. We'll give you investing boosts and we'll let you set your investing goals. And then if you want to go online shopping, there are better platforms than us to do that.

Bryce: [00:12:07] Pretty cool. How about you CommSec? Where your where does your functionality stand up? 

Sascha: [00:12:11] You made fun of my acronyms before, but I think they're my strength. We go by KISS, keep it simple stupid. Basically the one functionality it's auto invest is set up monthly or fortnightly transfers into the ETFs of your choice. Or you can put a lump sum in when you've got some cash on the side. But like why over I get just what do you want to do, invest, do it on your own terms.

Bryce: [00:12:35] All right. CommSec Pocket and Spaceship. We've gone through minimum investment phase, investment options and functionality. And on the other side of this break, it's time for the final pitch. So let's take a quick break. And on the other side, we'll hear who comes out on top. Alright. Spaceship. Alright. CommSec pocket. This is where I'm sorry. This is where. The rubber hits the road. We've got final pitches. We have had a look at each other's platforms as well because it should go without saying. There are some things to consider that aren't always rosy.

Alec: [00:13:09] I think everyone gets to make their final pitch and then the other two, you get a right of reply. 

Bryce: [00:13:13] Okay.

Alec: [00:13:14] Sure. 

Bryce: [00:13:15] Sounds good. 

Alec: [00:13:16] CommSec pocket. You want to kick us off? 

Sascha: [00:13:17] Look, I've had lots of chat from YouTube, but I think at the end of the day, you can't go past an option that's easy to use. Has an easy fee structure to understand and isn't too overwhelming with choice. Basically, you guys have been blabbering on and I've just been like, bam, bam, bam, every time with every option. So just go with the straightforward thing. You just want milk that tastes like real milk. You just want CommSec pocket that lets you invest. 

Bryce: [00:13:44] Okay, fair call. So I don't disagree with a lot of what you said just there. CommSec pocket my only call out sitting on the other side of the fence here is that when it comes to your fees and you are investing small amounts of money, let's say you are investing the minimum of $50 paying $2 every time you invest 50. Sounds like a small amount, but in percentage terms it's actually quite a lot in terms of brokerage. $2 on a $50 investment is 4% in brokerage. I know the team at Equity Mates Media want to try and keep that fee less than 1%. So something to consider. It seems like a small nominal amount, but it can add up over time. And what the hell? Some of the biggest and cheapest ETFs in Australia have been left out. No vanguard. 

Alec: [00:14:32] For me. CommSec pocket yet. You're straddling the line between broker and micro investing app. And if I could go to a broker and buy ETF with a lower annual fee, that's probably what I'm going to do. I mean, I'm spaceship's so my money's already invested.

Bryce: [00:14:49] But yes, overall easy to use, easy to understand, easy to get started. Gateway to investing. All right. I'm going to go I'm going to wrap it up. It's easy to get started with a minimum deposit of five. It raised the fee structure is easy to understand, but I must admit it is rather expensive. We have plenty of portfolio. We all know that good sales pitches do include some level of authenticity and honesty. Plenty of different portfolio options available. You can invest automatically. You can select a broad range of options, fractional investing as well, so you can invest with small amounts. We reward you as you go.

Sascha: [00:15:34] Look, you came for me with my expenses rise. So I'm just going to say that when you add up all the small little fees, you are quite a costly option if your balance is under 7.5 K So I know lots of people starting to invest, do need to look at the TS and CS and the fine print just to make sure that you're not putting too much of your percentage of what you could be investing Interface.

Alec: [00:16:01] And I mean eight portfolios, custom portfolios, Bitcoin. Are you trying to be everything to everyone or are you trying to be a simple to use micro investing.

Bryce: [00:16:09] Custom baby, these things. Custom. All right then. Spaceships sitting over there all high and mighty. Where do you come out? 

Alec: [00:16:16] Let me start with our tagline, Invest where the world is going. 

Bryce: [00:16:22] which we know you had had regulators come after you. 

Alec: [00:16:26] You save it for your right of reply. Spotify, Microsoft, Apple, Tesla. Heard of. Them? 

Bryce: [00:16:35] Yeah. So yeah.

Alec: [00:16:37] So what we do here at Spaceship is we help you invest in the biggest growth companies around the world and we let you do it cheaper than our friends over at Raiz. You can start with just $5. We don't charge you a $2 a month management fee until you have $100 in your account. You don't say raise in CommSec pocket, waiving the fees on the low dollar investor. And just like everyone else, we can be automated. 

Bryce: [00:17:06] Well, the companies that you listed there Raiz some of the biggest tech companies, some of the big tech companies in the world. I can buy for zero brokerage through a normal broker. Riddle me that.

Sascha: [00:17:21] Also. You hide behind these cloak and dagger is between, like, universe, origin and Spaceship Earth. I'm not. I'm not really sure you've named all these big companies before, but I'm not really sure what's in there. 

Alec: [00:17:33] Hold on. Raiz over here. Yeah. Has, like, colours and gems like. Sapphire and emeralds. Is that any better?

Sascha: [00:17:41] I should have made that point. 

Bryce: [00:17:46] Anyway, the big point that I want to make when looking at all three of these, when it comes to comparing the funds of Spaceship, Raiz and CommSec is spaceship is actively managed. CommSec pocket you're buying ETFs which are passive investments raise the money is going into underlying funds of ETFs and other assets that are passively managed. Spaceship has an investment team, so you are putting your trust and faith in the investment team at Spaceship to make the right investment decisions. You're not just getting the market return like you would be if you're going in broad based ETFs. So that is something that you must consider. The difference between active management and passive management and the portfolios are 100% in equities. 

Alec: [00:18:29] Raiz, put on a serious voice for that pit. 

Sascha: [00:18:31] I know. It felt like a regular episode. 

Bryce: [00:18:34] Sorry. All right. Back now. Oh.

Alec: [00:18:39] Well, I think that brings it to an end. I don't think we're going to be objective judges on which one is best. I think the takeaway is they all have merits. I would also say that all of them are better than not getting started. Absolute perfection. Be the enemy of the good here. But they're all slightly different and they all offer slightly different things. Be mindful of fees if you're a small dollar investor, but honestly, choose what's right for you that you like. The layout that helps you get started because they're all great options to get started and there are much better options than leaving your money in cash and losing out to inflation. 

Bryce: [00:19:18] That's it. Well, CommSec pocket, thank you so much for coming on. Can't wait til we find the next products that we can personify. 

Sascha: [00:19:27] Yeah, I'm going to go back to my method acting corner and and just like to investigate some other investing trends.

Bryce: [00:19:35] So that was fun. We will leave it there, please. If you can write and review, get started investing. We would really appreciate it. We love hearing your feedback. Five stars would be appreciated. And if you'd like to leave us with a question to unpack related to money and investing, hit us up at Contact@equitymates.com. But otherwise, Ren and Sascha will pick it up next week.

Alec: [00:19:53] Sounds good. 

Sascha: [00:19:54] See you.