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Micro-Investing in Australia: How to Start With $5

1 Sep 2024
5 min read

You don't need thousands to start investing. Micro-investing apps let you begin with your spare change and build from there.


What Is Micro-Investing?

Micro-investing means investing very small amounts of money — sometimes as little as your spare change from everyday purchases. Instead of needing thousands of dollars to get started, you can begin with $5 or less.

How It Works

Most micro-investing apps use one or both of these approaches:

Round-Ups


Link your debit card. Every time you buy something, the app rounds up to the nearest dollar and invests the difference.

  • Buy a coffee for $4.50 → $0.50 gets invested

  • Weekly groceries of $127.30 → $0.70 gets invested

  • Over a year, these small amounts add up to hundreds of dollars

    • Regular Top-Ups


    Set a recurring investment — $5, $10, or $20 per week — and the app invests it into a diversified portfolio automatically.

    Popular Micro-Investing Apps in Australia

    Raiz (formerly Acorns AU)


  • Minimum investment: $5

  • Round-ups: Yes, from linked cards

  • Portfolios: 7 options from conservative to aggressive

  • Fees: $4.50/month (under $20k balance)

  • Best for: People who want the round-up feature

    • Spaceship


  • Minimum investment: No minimum

  • Round-ups: No (regular contributions only)

  • Portfolios: 3 options — Universe, Earth, Origin

  • Fees: No fees under $5,000, then 0.05%-0.10%

  • Best for: Beginners who want zero fees to start

    • Is Micro-Investing Worth It?

    Let's run the numbers on rounding up $2/day (about $60/month):

  • After 5 years at 7%: ~$4,300 (you contributed $3,600)

  • After 10 years at 7%: ~$10,400 (you contributed $7,200)

  • After 20 years at 7%: ~$31,200 (you contributed $14,400)

    • That $2/day becomes over $31,000 in 20 years. Not bad for spare change.

    Micro-Investing vs Traditional Brokers

    Feature | Micro-Investing | Online Broker
    |---------|----------------|---------------|
    Minimum | $1 - $5 | $500+ typical
    Fees | $0 - $4.50/mo | $3 - $9.50 per trade
    Automation | Built-in | Some support it
    Control | Choose a portfolio | Pick individual ETFs/shares
    Best for | Beginners, small amounts | Larger regular investments

    When to Graduate from Micro-Investing

    Micro-investing is a great starting point, but once you're regularly investing $100+ per month, consider moving to a low-cost broker like Pearler or Stake where you can buy ETFs directly with lower percentage fees.

    Getting Started

  • Download Raiz or Spaceship and create an account (takes 5 minutes)

  • Link your card for round-ups, or set up a small weekly contribution

  • Choose a portfolio that matches your risk level

  • Forget about it — let it quietly build in the background

  • Check in quarterly to see your progress and adjust if needed