Compare 4 best robo advisors in New Zealand in February 2025

Robo advisors use automation to manage your money for you. This guide picks out the best robo advisors in New Zealand and explains how to choose between them.
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Updated on Jul 16, 2024
Reading time 14 minutes

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 picks: 4 best New Zealand robo-advisors overall for 2024

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  1. IG Markets: Best for trusted and transparent trading
  2. Eightcap: Best online broker for choice of trading platform
  3. AvaTrade: Best regulated broker for secure trading
  4. Pacific Union: Best for social trading & customer support

What are the best robo advisors New Zealand?

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These are the best robo investors in New Zealand 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 Kiwi robo investors in detail.

IG review
4.4
IG Markets
Min. Deposit n/a
Fees Spread only
No. assets 17000+
Demo account Yes

IG review

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.

Eightcap review
4.5
Eightcap
Min. Deposit $100
Fees Up to $3.5 RT
No. assets 800+
Demo account Yes

Eightcap review

74-89% of retail CFD accounts lose money
AvaTrade review
4.3
AvaTrade
Min. Deposit $100
Fees From 0.13%
No. assets 1250+
Demo account Yes

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.

Top robo advisor in New Zealand reviews

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We found 16 online brokers for users based in

1. IG Markets: Best for trusted and transparent trading

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4
Ratings

-

Min. deposit

From 0.5%

Fees

17,000

No. assets

Yes

Demo account

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

Fees & Costs

Pros & Cons

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.

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

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4.5
Ratings

$100

Min. deposit

Up to $3.5 RT

Fees

800

No. assets

Yes

Demo account

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 a selection of over 200 crypto CFDs so there’s an excellent range to choose from. You can trade the biggest coins like BTC/USD and many altcoins like DOGE/USD.  

The fees: Eightcap is a CFD broker and charges spread, 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

Fees & Costs

Pros & Cons

74-89% of retail CFD accounts lose money

3. AvaTrade. Best regulated broker for secure trading

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Avatrade_logo
4
Ratings

$100

Min. deposit

From 0.13%

Fees

1,300

No. assets

Yes

Demo account

Overview

We love AvaTrade because it is a reliable CFD broker, that gives users access to a wide range of markets. As a CFD broker, AvaTrade lets you speculate on the price movements of various crypto markets without owning the underlying assets. AvaTrade is a multi asset brokerage firm and includes CFDs on many of the biggest cryptos including Bitcoin, Ethereum, Dogecoin, and more. 

AvaTrade is also highly regarded for its strong regulatory framework and commitment to security. AvaTrade is regulated in multiple jurisdictions, including Europe, Australia, Japan, South Africa, and the British Virgin Islands, which means it must adhere to stringent regulatory standards across the world. 

AvaTrade isn’t just well regulated, it also employs advanced security measures to protect client funds and personal information, including segregated accounts and robust encryption technology. 

The fees: There is no commission on any trading. AvaTrade makes money from the Bid/Ask spread instead. Crypto spreads start from 0.13%. 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

Fees & Costs

Pros & Cons

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.

4. Pacific Union. Best for social trading & customer support

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pacific union logo
4
Ratings

-

Min. deposit

...

Fees

-

No. assets

No

Demo account

Overview

We love Pacific Union because its beginner friendly platform comes loaded with lots of educational content, including how-to guides and video learning. Pacific Union offers over 200 assets across global markets and includes forex, stocks, indices, commodities, and cryptocurrencies.

It’s an award-winning broker with a proprietary social trading application that makes it easy for beginners to follow the strategies and positions of the platform’s top traders. Pacific Union uses the popular Metatrader 4 software alongside its mobile and web based apps. Traders can choose the amount of leverage they want to use, all the way up to 500:1.

The fees: There are fees with Pacific Union, but it depends on your account type. Its standard account is commission free, but Bid/Ask spreads start at 1.3 pips. Pro accounts are charged a $3.5 RT per lot commission and have spreads starting from 0 pips. Swap charges for holding a trade overnight vary depending on size.  

Highlights

Pros & Cons

Contracts for Difference (CFDs) trading carries a high level of risk to your capital and can result in losses, you should only trade with money you can afford to lose. CFDs trading may not be suitable for all investors, please ensure that you fully understand the risks involved and take appropriate measures to manage it.

What is a robo advisor?

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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?

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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 New Zealand?

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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

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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 

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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

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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

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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

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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

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Ensure the robo advisor supports the types of accounts you need, such as individual or joint taxable accounts and a KiwiSaver. This can be important for tax purposes if you’re saving for retirement.

Reputation and regulation

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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 New Zealand Financial Market Authority (FMA). A license with the FMA (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 to search for its license number on the FMA 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 experiences can be a good guide. Use the reviews here on Invezz to better understand what to expect from each advisor.

Additional services

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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

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How much does a Kiwi robo advisor cost to use?

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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?

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Yes, you will have to provide your contact details and usually, the service requires bank details and a form of government-issued Kiwi 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 New Zealand robo advisors safe to use?

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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 New Zealand?

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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 a New Zealand robo advisor?

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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 New Zealand

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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 combine 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 New Zealand

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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

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

Create an account and add a payment method

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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 New Zealand 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

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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

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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

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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.

Bottom line

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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 New Zealand

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

We periodically test more than 63 NZ 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 in New Zealand 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

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01

Can a NZ robo advisor beat the market?

02

How to robo advisors in New Zealand get paid?

03

Is a NZ robo advisor better than a human financial advisor?

04

Are there free robo advisors in New Zealand?


Fact-checking & references

Prash Raval

Prash Raval

Financial Writer

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When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a football....