Investing has never been easier, thanks to micro-investing apps like Raiz. If you’re new to investing and looking for a simple, low-cost way to grow your wealth, this app might be just what you need. But is Raiz legit, or is it a scam? In this Raiz App review, we’ll cover everything you need to know before signing up, including fees, investment options, security, and unique features.
What Is Raiz?
Raiz is an Australian micro-investing app that allows users to invest in the stock market effortlessly. Unlike traditional investment platforms, Raiz offers pre-selected portfolios, making it ideal for beginners who may not have the knowledge or confidence to invest on their own.
How Does Raiz Work?
Raiz works by allowing users to invest small amounts of money in exchange-traded funds (ETFs). ETFs are baskets of stocks that track different market indices, providing diversification and lower risk than individual stocks.
The app provides seven different portfolio options, ranging from conservative to aggressive, allowing investors to select one based on their risk tolerance.
Raiz Investment Options
Raiz offers seven pre-made ETF portfolios, plus a customizable portfolio option:
- Conservative – Low-risk portfolio with a mix of cash and bonds.
- Moderately Conservative – Slightly riskier with a small allocation to stocks.
- Moderate – Balanced mix of bonds and stocks.
- Moderately Aggressive – More exposure to stocks for higher growth potential.
- Aggressive – High-risk portfolio primarily composed of stocks.
- Emerald – Ethical investment portfolio focused on sustainable and responsible companies.
- Sapphire – A high-risk portfolio that includes a 5% allocation to Bitcoin.
- Custom Portfolio – Users can choose their own ETFs and adjust allocations based on personal preferences.
Why ETFs?
ETFs offer instant diversification, meaning your money is spread across multiple companies. This helps reduce risk—if one company performs poorly, others in the ETF may compensate for the losses.
How to Invest with Raiz
Raiz makes investing incredibly easy, offering multiple methods to grow your portfolio:
1. Round-Ups (Automated Investing)
This unique feature rounds up your everyday purchases to the nearest dollar and invests the spare change. For example, if you buy a coffee for $3.50, Raiz will round it up to $4 and invest the extra $0.50. Once your round-ups reach $5, the app automatically invests the amount into your chosen portfolio.
2. Recurring Investments
You can set up automatic deposits on a daily, weekly, fortnightly, or monthly basis. This is a great way to dollar-cost average, meaning you invest at different market prices over time, reducing the impact of market fluctuations.
3. One-Time Deposits
If you receive extra cash (e.g., a work bonus or a birthday gift), you can manually deposit a lump sum into your Raiz account.
4. Raiz Rewards (Cashback Investing)
Raiz partners with brands like Amazon, eBay, and Woolworths to offer cashback rewards. When you shop with these companies using a linked bank account, a percentage of your purchase is automatically invested in your Raiz portfolio.
Raiz Fees: Is It Worth It?
Raiz doesn’t charge traditional brokerage fees, making it more cost-effective than Comsec or SelfWealth. Instead, it charges monthly maintenance fees based on your portfolio type and account balance:
- Conservative, Moderately Conservative, Moderate, Moderately Aggressive, Aggressive, and Emerald Portfolios:
- $3.50 per month for balances under $15,000.
- 0.275% per year for balances over $15,000.
- Sapphire Portfolio (includes Bitcoin investment):
- $3.50 per month + 0.275% annual fee regardless of balance.
- Custom Portfolio:
- $4.50 per month for balances under $20,000.
- 0.275% per year for balances over $20,000.
No Fees for Deposits or Withdrawals – Unlike traditional brokers, Raiz does not charge fees when you deposit or withdraw money, making it beginner-friendly.
Is Raiz Safe? Security and Legitimacy
Is Raiz a Scam?
No, Raiz is 100% legitimate. It is an ASX-listed company regulated by the Australian Securities and Investments Commission (ASIC). This means it follows strict financial laws designed to protect investors.
What Happens if Raiz Goes Bankrupt?
Your funds are held by an independent custodian, not Raiz itself. If Raiz were to go out of business, your money would still be safe and returned to you.
Account Security
Raiz uses bank-grade encryption and two-factor authentication (2FA) to protect your funds and personal information from fraud.
Raiz Performance: Can You Make Money?
Raiz’s returns depend on market conditions. Since most of its ETFs track the Australian and global stock markets, your portfolio’s performance will generally reflect market trends:
- Bull market – Your portfolio will likely go up.
- Bear market – Your portfolio may decline temporarily.
Raiz encourages long-term investing rather than short-term trading. Historically, investing in the stock market for 10+ years has resulted in positive returns.
Pros and Cons of Raiz
✅ Pros
✔️ Great for Beginners – No stock-picking required. Pre-made portfolios make investing easy.
✔️ Low-Cost Investing – No brokerage fees; monthly fees are affordable for small investors.
✔️ Round-Ups Feature – Helps you invest effortlessly using spare change.
✔️ Raiz Rewards – Cashback investing allows you to grow your portfolio while shopping.
✔️ No Minimum Investment – You can start with as little as $5.
✔️ Safe and Regulated – Licensed by ASIC and funds are held securely.
❌ Cons
❌ Monthly Fees for Small Balances – Fees can be high for very small investments.
❌ Limited Investment Options – You cannot invest in individual stocks.
❌ Market Risk – Returns depend on stock market performance, meaning short-term losses are possible.
Who Should Use Raiz?
✅ Best for:
- Beginners who want an easy way to start investing.
- People with low capital who want to invest small amounts.
- Long-term investors looking for a hands-off investing approach.
- Anyone who wants to invest spare change automatically.
❌ Not ideal for:
- Investors who prefer picking their own stocks.
- People who trade actively (Raiz is designed for long-term investing).
- Investors who dislike monthly fees.
Final Verdict: Is Raiz Legit or a Scam?
Raiz is a legitimate and safe micro-investing app that makes investing accessible to beginners. With features like automated round-ups, diversified ETF portfolios, and cashback investing, Raiz offers an effortless way to start growing wealth.
While the monthly fees can be a downside for small investors, the ease of use, security, and long-term potential make it an excellent choice for those looking to invest passively.
If you’re looking for a user-friendly investing app that requires minimal effort, Raiz is worth considering. Want to give it a try? Sign up today and get a $5 bonus!
