Micro Investment Guide: How to make money with Raiz and Stocklight apps

Anyone who wants to get rich in a normal job in Australia can use this new way of making money, starting at as low as $1.

If you have a normal job and want to get rich in Australia, investment is the key to achieving this goal. However, if you are in the early stages of the investment journey, getting started can seem overwhelming (not to mention expensive).

Figuring out what platform or tool you should use to invest your hard-earned money can also be confusing. Fortunately, there are more and more applications and technical solutions that can help. Enter small investments.

What is a small investment application?

Micro-investment “platforms” such as Raiz, Stake, Stocklight, or eToro are investment accounts that allow investors to purchase parts of traditional investments, such as stocks, exchange-traded funds (ETF), and even real estate. The advantage is that you can invest with less money than is usually required to buy an entire stock, ETF or property.

For example, buying shares in the tech giant Amazon will cost you up to $3,349 ($A4319), but using a small investment app like Stake, you can buy Amazon stock worth $1. This can help you get started, and it also means that you don’t need to “bundle” a large amount of cash in an investment.

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What are the benefits of small investments?

Micro-investment platforms allow you to start investing without huge amounts of capital, so it’s no surprise that they have such a big appeal. Most people think you need a high-paying job to get rich, but the truth is that you don’t need it. The power of compound interest was cited by Einstein as the eighth wonder of the word, and he was not far away.

I provide an example below that shows how the portfolio has grown over time, assuming only long-term average market returns (20-year returns for Australian stocks are 8.7%, via the ASX long-term investment report). In this example, I used an investment amount of $10 per day or $70 per week. This is only the cost of a few cups of coffee per day, which is lower than the cost of mashing your toast on the weekend.

If you have followed this investment strategy for the past 10 years, you will invest US$36,500, but your investment will grow to US$54,666. In more than 20 years, your investment will grow to $180,564. It’s a pretty good result for just a few cups of coffee a day, right?

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However, if you can start 10 years in advance (a total of 30 years), your investment will be worth $470,506. However, if you start 10 years earlier (40 years in total), you will see an investment account worth more than $1,138,245.

The power of time can have a huge impact on the results you get. This is why it is so important to start as soon as possible. The best time to act is 10 years ago. The second best time is today.

How to invest in small and micro investment apps?

There are a range of different micro investment options. Some allow you to buy regular stock investments, such as shares of companies such as Commonwealth Bank or Apple. Others allow you to buy ETFs, and some even allow you to acquire property. Each micro-investment platform has its own investment method and scope.

What other investment options are there?

The alternative to micro-investment is to use traditional investments, such as direct stocks, ETFs, managed funds, or the direct purchase of real estate. These investments have existed for decades and have undergone trial and error, but the challenge for investors who are just starting out is that you need relatively large cash savings to buy them.

What is the performance and cost of small investment applications?

Except for the fees charged by the platform you choose to use, the performance of small investment applications is usually exactly the same as traditional investment. These fees on some platforms are very low, and in some cases even lower than when you buy the investment in a more traditional way. But others may be more expensive, so please do your research to make sure you get the benefits.

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How do you choose whether small investment is right for you?

Whether micro-investing is right for you depends on your financial situation, how much money you plan to invest, and your investment goals and objectives.

If you decide that small investments are right for you, the first decision to make is to decide what type of investment you want to buy, namely stocks, ETFs or property. Your choice will depend on what you are trying to get from the investment. Each option has its own advantages and disadvantages, and they all charge fees in different ways.


Small investments can be a great way to build a second source of income and increase assets at the same time, but you need to do it right. Take some time to do your research before you join, so that you will eventually get the best deal and the best return.

Writer Benash, Financial expert commentator, podcast, financial advisor and founder Pivot wealth, Amazon best-selling author “Getting Out of Dilemma: A Guide to Creating a Life Free of Money”.

Disclaimer: The information contained in this article is of a general nature and does not consider your personal goals, financial situation or needs. Therefore, before taking action, you should consider whether the information is suitable for your situation and seek professional advice from financial professionals where appropriate.

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About the Author: Agnes Zang