Stockspot cuts fees to zero for entry level investors

Australia’s first fully online investment adviser and fund manager S​tockspot​today announced that it will offer its services free for the first 12 months to smaller balance clients.

Stockspot provides an automated investment advice service, which matches clients to a suitable portfolio based on their age, goals, investment horizon and risk profile. Services like Stockspot, which are known as “​robo­advice”​in the US, have been hugely popular overseas, growing to over US$19 billion under management in just a few years. M​yPrivateBanking Research​predicts this will jump to US$255 billion by 2019.

“Two thirds of our client base are Australians under the age of 45” said Stockspot Founder and CEO Chris Brycki. “Stockspot offers them an alternative to traditional financial advisers who charge higher fees and impose significant account minimums. Our product allows these people to receive personalised investment advice much earlier in life and begin growing their wealth with as little as $2,000.”

Stockspot will now waive fees for the first 12 months on all client accounts less than $10,000. “We want to break down the barriers to investing and help people look outside of property and bank deposits to build their wealth” s​aid Brycki.

“With the R​BA cutting interest rates​to the lowest level in 50 years, A​ustralians who leave their money in the bank are earning almost no interest. Meanwhile, the property dream is getting further out of reach for the average person.”

“A globally diversified portfolio of shares and bonds has generated higher returns than cash over the long term and we believe everyone should be able to easily invest.”

As well as waiving the fees for new investors for the first 12 months, Stockspot is also reducing its fees to benefit existing investors and Self­Managed Super Funds (SMSFs).

“We are finding that many of our older clients have been burnt by poor advice or overly risky portfolios in the past. These clients are looking for a sensible, diversified investment strategy with low fees and without the hassles of hours of paperwork at tax tim​e” s​aid Brycki.