Compare 4 best robo advisors in Australia for beginners in June 2024

Robo advisors use automation to manage your money for you. This guide picks out the best robo advisors in Australia and explains how to choose between them.
By:
Updated: Apr 11, 2024
Listen

Robo advisors are perfect for wannabee investors who don’t have the time or the desire to create their own investment portfolio.

You can set up a robo advisor that’s designed to meet your goals and preferences in just a few minutes. Even with a small amount of money and without much effort, you can create a diverse portfolio, invest regularly, and save for the future.

Our team of investing experts have compared the best robo advisors in Australia, to allow you to make the best choice for your specific needs. Between them, our panel has more than six decades of experience in finance and they judge each robo investor according to 160+ data points, with a particular focus on cost, convenience, and security. Find out more about our panel, their experience, and how we test in our review process.

Read on to find the best robo advisors in Australia and compare their performance.

Our picks: 4 best Australian robo-advisors overall for 2024

Copy link to section
  1. eToro: Best for beginners, copy-trading & demo-account
  2. Eightcap: Best online broker for choice of trading platform
  3. IG Markets: Best for trusted and transparent CFD trading
  4. AvaTrade: Best regulated broker for secure trading
  5. Pepperstone: Best low spread & no commission broker

What are the best robo advisors Australia?

Copy link to section

These are the best robo investors in Australia right now. They offer a variety of different investment products to suit different budgets and different risk profiles. Use the links in the table to get started, or read on to compare those Aussie robo investors in detail.

Sort by:

1
Min. Deposit
100
Best offer
User Score
9.9
Invest/buy real stocks and ETFs with 0% commission fees
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Start Trading
Payment Methods:
Debit Card, PayPal, neteller, Credit Card, Wire Transfer, WebMoney, Yandex, UnionPay, skrill
Full Regulations:
ASIC, CySEC, FCA

51% of retail CFD accounts lose money. Your capital is at risk.

2
Min. Deposit
100
Best offer
User Score
9.7
Open an MT5 account to go long or short on 250 of the largest US, Australian, and European stocks
Instruments in 21 time-frames and 80 pre-installed indicators
Multi jurisdiction regulation by ASIC and VFSC
Start Trading
Payment Methods:
PayPal, neteller, Credit Card, Wire Transfer, Cryptocurrencies, skrill
Full Regulations:
ASIC, CySEC, FCA
74-89% of retail CFD accounts lose money
3
Min. Deposit
250
Best offer
User Score
9.8
Zero Commission when trading US shares, only £3 commission for UK shares. Additionally, there’s an FX conversion fee of just 0.5%
Explore a vast range of stocks with 13,000+ options, including popular companies like Amazon, Apple, Tesla, and Netflix.
Offers longer trading hours, allowing you to access markets even when they’re closed elsewhere.
Start Trading
Payment Methods:
Bank Transfer, Debit Card, PayPal, Credit Card
Full Regulations:
ASIC, FCA, FINMA, is a licensed bank (IG Bank in Switzerland)

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Top robo advisor in Australia reviews

Copy link to section

1. eToro. Best for beginners, copy-trading & demo-account

Copy link to section

0% commission

Fees

$100

Minimum deposit

4,000

No. assets

Yes

Demo/virtual account

Pros & Cons

Great for beginners, simple to set up and get started Competitive, industry-leading commissions Popular ‘Copy Portfolios’ function lets you follow top traders Excellent customer service, with live chat support provided
Comparatively high fees for withdrawals and account inactivity Does not integrate with the MetaTrader platform High spreads on some assets

Overview

We love eToro because it’s a great trading platform for beginners, with an interface that’s easy to use via app or desktop. A safe and trustworthy broker used by millions of traders worldwide, eToro boasts a zero-to-low fee structure that won’t gobble up your money in charges.

There are more than 5,000 crypto, stock, etf, forex, and commodity assets available to trade on eToro. You can dive straight in to trade or dip your toe in gently with one of the best demo accounts in the business. We like to switch to virtual mode and use its unique CopyTrader feature to get trade ideas, test out strategies, and learn from the pros.

The fees: All stock and ETF trading is commission fee. All crypto trades are charged a 1% fee. Currency spreads are 1 pip, for commodities it’s 2 pips. Stock CFDs have a 0.15% spread. All deposits are free, withdrawals cost $5. There’s an inactivity fee of $10 per month that kicks in if you don’t log in to your account for 12 months.

Highlights

Visit eToro eToro Review

51% of retail CFD accounts lose money. Your capital is at risk.

2. Eightcap. Best online broker for choice of trading platform

Copy link to section

Up to $3.5 RT

Fees

$100

Minimum deposit

800

No. assets

Yes

Demo/virtual account

Pros & Cons

Low trading fees for CFDs Trade directly from the TradingView platform Regulated by top-tier authorities Leverage up to 1:500 Partnered with multiple proprietary trading firms
Some markets are not available to all regions Customer support does not operate 24/7

Overview

We love Eightcap because you have several trading platforms to choose from. You can choose between MetaTrader 4, MetaTrader 5, and TradingView. All of these platforms are favourites among retail traders. With the MetaTrade suite of platforms, you can access lots of technical indicators, custom tools, and expert advisors. 

TradingView with Eightcap allows you to trade directly from your charts while accessing the hundreds of tools and features available. Eightcap has over 900 markets available including stocks, forex, indices, commodities, and cryptocurrencies. 

The fees: Eightcap is a CFD broker and charges spreads, commissions, or a combination of both. There are two account types available, RAW, and Standard. The RAW account has ultra-low spreads starting from 0.0 pips but charges $3.5 RT per lot. The standard account is commission-free for most assets and spreads start from 1 pip.

Highlights

Visit Eightcap Eightcap Review
74-89% of retail CFD accounts lose money

3. IG Markets: Best for trusted and transparent CFD trading

Copy link to section

...

Fees

...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Intuitive web trading platform Excellent demo account available Variety of deposit and withdrawal options Wide variety of useful educational tools Trading platform tutorial to get you started
High fees for CFD trading Slow account opening process Limited product portfolio

Overview

We love IG because it’s one of the most established and reputable names in the online trading industry, known for its reliability, comprehensive market offerings, and strong regulatory compliance. IG offers CFD trading in stocks, forex, commodities, indices, ETFs and more, with plenty of useful plugins and integrations to improve the trading experience.

One of the key strengths of IG Markets is its seamless integration with MetaTrader 4 (MT4), a popular third-party trading platform favored by many traders for its advanced charting tools, automated trading capabilities, and custom indicators. This integration allows users to leverage MT4’s sophisticated features while benefiting from IG Markets’ competitive pricing, reliable execution, and extensive market access.

Beyond its product range and platform integrations, IG Markets stands out for its commitment to education and customer support. The company offers a wealth of educational resources, such as webinars, tutorials, and market analysis, which help traders of all levels improve their knowledge and skills.

The fees: For most assets, you don’t pay a trading fee but will be charged through the spread instead. That’s the difference between the buy and sell price of an asset. IG’s spreads are competitive but variable: you’ll pay a smaller spread on popular assets compared to less popular ones. Share trading works differently, and you’ll be charged a minimum fee on each trade of at least $15.

Highlights

Visit IG Markets IG Markets Review

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

4. AvaTrade. Best regulated broker for secure trading

Copy link to section

From 0.13%

Fees

$100

Minimum deposit

1,000

No. assets

Yes

Demo/virtual account

Pros & Cons

Trade 1000+ CFDs with competitive spreads Regulated by Tier 1 financial bodies across the world Consistently highly rated trading platform on web and mobile Offers social trading through its proprietary AvaSocial platform
Spreads are competitive without being industry-leading Some assets are only available to trade through the MetaTrader software

Overview

We love AvaTrade because it offers powerful trading software to anyone who wants to trade professionally. AvaTrade is a CFD broker where you can trade more than 800 markets, including forex, stocks, commodities, indices, ETFs, bonds, and cryptocurrency.  

AvaTrade integrates with trading software like MetaTrader 4 and 5 and boasts its own bespoke and award-winning mobile app software, AvaTradeGo. AvaTrade has been around since 2006 and is extensively regulated in Europe, Australia, Japan, British Virgin Islands, UAE, and South Africa.

The fees: There is no commission on any trading. AvaTrade makes money from the Bid/Ask spread instead. Stock spreads start from 0.13 and forex spreads start at 0.7 pips. Positions left overnight are charged a swap fee that varies depending on size. An inactivity fee of £50 per month is applicable if you don’t log in to your account for three consecutive months. 

Highlights

Visit AvaTrade AvaTrade Review
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What is a robo advisor?

Copy link to section

A robo advisor, robo investor, or robot investor, is a digital investment platform that offers managed portfolios using advanced software and algorithms to decide which assets to invest in. This is in opposition to a traditional investment account that’s controlled by a human financial advisor who picks the best stocks to buy and sell.

Robo advisors are typically ideal for beginners as they do almost all of the work for you. They’re cheap, require virtually no maintenance, and often don’t have any minimum investment so you can get started with as much or as little money as you like.

How does a robo advisor work?

Copy link to section

Robo investing uses a piece of software to gauge your investment principles, goals, and risk tolerance, then chooses how to invest your money. When you sign up, you are asked a set of questions focused on these themes, such as how quickly you want to see returns, what sort of sectors you want to invest in or avoid, and how many risks you’re prepared to take with your money.

The robo advisor uses this information to select an option from a preset list of investment strategies. These almost always involve investing in various ETFs (exchange-traded funds) and funds, as these are low-cost ways to gain exposure to an entire sector or index.

In this way you can tailor the robo investor to invest your money in the way you would do yourself. If you’re a cautious investor who only wants to invest in socially responsible investing options, for example, the robo advisor invests your money into low risk, ESG or ethical funds.

How should I choose a robo investor in Australia?

Copy link to section

The main things to consider when choosing a robo financial advisor are cost and performance. Ultimately, these are how you would judge the success of a human financial manager and the same criteria apply to robot investors as well.

Here are some more key considerations to help you compare the top robo advisors.

Past portfolio performance

Copy link to section

Every platform should allow you to compare the performance of each of its robo advisors before you sign up. While this is no guarantee of future results, it gives you an idea as to how successful each investing strategy has been during different market conditions.

It is also a good way to visualise the difference between a low-risk investment portfolio and one that is more aggressive. You are likely to see greater and more frequent fluctuations in the more high risk portfolios. Think about how you would cope with this mentally and use it to influence how you decide to tailor your own robo investor account.

Low fees 

Copy link to section

One big advantage of robo advisors compared to a traditional portfolio managed by a person is that they are cheaper. Rather than lots of trading fees, most robo advisors charge management fees, which are paid as a percentage of the total value of your investment. The absolute most you should be willing to pay is 1% per year but most advisors are cheaper than that, with 0-0.5% acting as a good guideline.

Along with the account maintenance fee, there are other fees as well depending on the sort of assets your money is invested in. You might be charged each time the advisor moves your money into a different asset, or if it’s putting money into a fund, those funds might come with their own fees as well. Add all these fees together to get a full understanding of how much your investment costs.

Design and ease of use

Copy link to section

The top robo advisors offer convenience, so that you can navigate around, invest money, and compare your portfolio performance without much trouble. The design and user experience of a platform where there is no human interaction is of paramount importance.

You may want to be able to access the robo advisor and all its services from your phone as well, so consider downloading a few robo advisor apps and comparing them.

Minimum investment

Copy link to section

You can usually set up an robo advisor account with any amount of money. However, some have an account minimum which you must deposit in order to use it.

This can vary quite considerably by platform, we have seen investment accounts that require as little as $5 to get started, while the most blue chip providers ask for tens of thousands. Those are outliers, however, and about $500 is at the higher end of the scale for most accounts.

Types of investment

Copy link to section

Many robo advisors work by investing money into exchange-traded funds (ETFs) or mutual funds. These are low cost, diverse pools of related stocks that serve to give you broad exposure to the stock market without relying too heavily on any one company for results.

However, that’s not the only way a robo advisor can build diversified portfolios. If you use a platform that has its own in-house funds (like Vanguard, for example) then it may invest money into those as well. Make sure the provider is clear about how they make the decisions about what to invest in.

Account types

Copy link to section

Ensure the robo advisor supports the types of accounts you need, such as individual or joint taxable accounts, IRAs (Traditional, Roth, SEP), and 401(k) rollovers. This can be important for tax purposes if you’re saving for retirement, as IRAs and 401(k)s offer tax breaks on money you don’t access until you’re 60.

Reputation and regulation

Copy link to section

You want to be sure that you pick a robo advisor platform with a good reputation so that your money is always safe. All robo advisors should be regulated by a respected financial authority, such as the Australian Securities & Investments Commission (ASIC). A license with ASIC (or equivalent international body) provides insurance so that your money is protected in case the investment platform becomes insolvent.

The best way to check a firm’s reputation is search its license number on the ASIC Register. This is the fastest way to find out if it really does hold the appropriate license to offer investing services and financial planning tools.

Another option is to look on the internet for customer reviews, as other people’s experience can be a good guide. Use the reviews here on Invezz to get a better feel for what to expect from each advisor.

Additional services

Copy link to section

Picking the best robo advisor isn’t just about finding the one with the lowest fees. There are other features as well that can tip the balance. You should look to see if the advisor offers things like automatic rebalancing, which is when it adjusts the assets in your portfolio so it isn’t weighted too heavily towards one asset class.

Quick answers to key questions

Copy link to section

How much does an Aussie robo advisor cost to use?

Copy link to section

Robo advisors charge an annual management fee, which is usually no more than 0.75% per year. The fee is often lower if you invest a significant amount in the platform, so it’s possible to get very low fees if you have a lump sum to invest with.

There may be a couple of extra additional fees, in the form of a maintenance fee/account fee, and a spread fee. These are usually small, and may be about 0.2% and 0.09% per year, respectively. Overall, the fees are significantly lower than those you would pay with a traditional financial advisor. Human financial advisors cost money in man hours and experience, whereas robo advisors tend to automate a lot of the process.

Something else to consider is the minimum investment that you need to get started. Even if a robo advisor charges lower fees, it might be out of your immediate price range if it requires an initial deposit of a few hundred dollars.

Do I have to verify my identity?

Copy link to section

Yes, you will have to provide your contact details and usually the service requires bank details and a form of government-issued Aussie ID as well. This is because these platforms have to abide with anti-money laundering regulations and it’s how you are entitled to protection from the financial authorities in case anything nefarious were to happen to your money.

Are Australian obo advisors safe to use?

Copy link to section

They are as safe as any other investment as they’re provided by regulated platforms that invest in assets that are also governed by strict rules laid down by the stock market. Just remember that there’s no guarantee you will make money as the value of any investment can go down as well as up.

Do I need any extra software to use a robo advisor in Australia?

Copy link to section

No, one of the benefits of using a service like this is that someone else takes care of the investing for you. All you need to do is sign up, answer a few questions, and fund the account. After that it can be left to its own devices.

Should I invest with an Australian robo advisor?

Copy link to section

It’s a great tool for beginners in particular and for anyone who wants a low-cost, low-maintenance way to invest. The best ones let you set the guidelines so that you can decide the direction your money goes in. If you want to have a more hands-on role in your wealth management then you might want to create your own investment strategy instead.

Benefits of using a robo advisor Australia

Copy link to section

The benefits of a robo advisor revolve around the way it appeals to even the newest investors, as you don’t need much experience at all to get started. It’s a great first step on your investing journey.

Here are some of the positives of using a robo investor.

  • The best robo advisors let you invest at low cost and with professional help. It doesn’t cost much to use a robo advisor, and they combined advanced software algorithms with a track record of investing experience.
  • They offer a hands-off investing option that doesn’t require a lot of time or effort. Robo advisors are ideal for people with no investing experience or no time to choose their own investments, but who still want to build their wealth over time.
  • You can create your own personalised financial plan to save for the future. By answering the questions on your robo advisor account when you start, you can create an investment plan that’s geared towards your needs and goals.
  • Robo investors often earn higher returns than people managed funds. Passive investments such as ETFs that simply track the performance of a group of stocks can often generate better returns than a person who tries to pick and choose which stocks are going to be successful.

Risks of using a robo advisor in Australia

Copy link to section

Like any form of investment, robo advisors have their drawbacks. There is no guarantee of success, and the value of your investments can go down as well as up.

Here are some more of the risks of using a robo financial advisor.

  • There are limited ways to invest. A robo advisor only has a small number of predetermined investment strategies. You can’t pick your own stocks, nor can you pick and choose which assets to invest in.
  • Your returns are more limited compared to investing in individual stocks. Pooled investments like funds and ETFs limit your downside by investing in lots of different stocks and sectors. However, this also serves to limit your upside, as an individual company only makes up a small part of each portfolio.
  • They aren’t good at meeting complex investing goals. Robo advisors are great for long term investing, such as saving for retirement, or regular monthly investing. They are less good if you have more complicated goals, or a timeline which requires results very quickly.
  • Your investments can fall in value. There is no guarantee that your portfolio will increase in value. Past performance is no guarantee of future results, and even a portfolio based around advanced algorithms and careful risk management can perform poorly.

How to open an account with a robo advisor

Copy link to section

Follow these simple steps to start using a robo financial advisor in Australia today.

Create an account and add a payment method

Copy link to section

To start using a robo advisor, you need to create an account and add a means of sending money to it. Most people simply connect their robo advisor to their Australian bank account, and doing it this way means you can round up any purchases and deposit the extra money directly into your account on a regular basis.

Take the onboarding quiz

Copy link to section

Once you’ve created an account, you must fill out a short quiz. This quiz is designed to assess your investment preferences, your goals, and your risk profile. Think about your answers carefully, as these dictate how the robo advisor invests your money.

Confirm your investment portfolio

Copy link to section

From the results of the quiz, the robot investor provides a recommended portfolio based on your investment profile. You can tweak this, or choose an alternative option, but if you’re going to use a robo advisor then it makes sense to use its recommendation.

Start investing automatically

Copy link to section

Now, you’re all set to start investing. The final step is to decide how often you want to add money to your portfolio, which can be set to a regular automatic deposit, or a manual deposit which you manage yourself.

A regular automatic deposit is a good option to drip-feed money into your portfolio, an investment strategy that’s known as ‘dollar-cost averaging’ (DCA). With DCA, you invest at regular intervals, regardless of how the market is performing. In this way, you naturally buy more when prices are lower and less when prices are higher.

Choose a reliable broker

Bottom line

Copy link to section

Choosing the right robo-advisor is a pivotal step in your investing journey. It’s important to compare leading services before you invest any money, taking care to understand the nuances of each, and evaluate the risks and rewards. Remember that your individual financial goals and circumstances are key.

Investing, by its nature, involves risk, and robo-advisors offer a streamlined, often cost-effective way to manage these risks through diversified portfolios and automated strategies. However, it’s crucial to weigh factors such as fees, investment options, and the level of personalisation against your investment objectives.

Methodology: How we choose the best robo advisors in Australia

Copy link to section

Helping people make better financial decisions is at the heart of our mission at Invezz. 

We periodically test more than 63 robo advisors to provide our users with clear, accessible guidance on the investing options available. All testing is carried out by our panel of stock market experts, analysts, and active traders who sign up to each advisor, conduct research, and score each service.

Our tests are designed to find robo investors that offer a beginner-friendly, secure investing experience at a fair price. To supplement our practical testing and experience, we research each robo advisor to gather any further relevant information. We read online customer reviews, app reviews on the Play Store and App Store, and conduct user surveys to get feedback from real people about what works, and what doesn’t.

Each advisor is awarded a final score based on 130+ data points across 8 ranking categories: cost, reliability, user experience, deposit & withdrawals, investing options, range of products/markets, research & analysis tools, and the availability of educational & learning resources.

We work closely with individual brands to ensure all factual information displayed here is accurate. All data is then fact-checked by an independent reviewer. You can learn more about our expert panel and how we test, rate, and review platforms in our review process.

FAQs

Copy link to section
Do Aussie robo advisors really work?
Is a robo advisor good for beginners?
Do I need an Australian robo advisor?
Can a robo advisor beat the Australian market?
How much do I need to start using a robo advisor in Australia?
How do robo-advisors get paid?
Is a robo advisor better than a human financial advisor?
Are there free robo advisors in Australia?
Do robo investors beat the market?


Sources & references
Risk disclaimer
James Knight
Editor of Education

James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.