Micro-Investing Platform Review – Spaceship

So what’s the deal with the micro-investing platform called Spaceship.

The Spaceship App appearance

I started hearing about an investing platform called Spaceship on Instagram about 2 years ago. I will admit I avoided it like the plague until very recently, and the reason for avoiding it was lack of real information about it.

I’m a naturally anxious person and as a result I like facts and this guides my desire to explore something further. I mean who names an investing platform Spaceship?

Name aside I finally started using the platform after listening to the two part podcast episode on micro-investing from She’s on the Money . Listening to the podcast gave me the confidence to explore micro-investing, and do my own research. After 3 months using the platform I’ve decided to review it here on the blog so you can make your own mind up.

What is Spaceship?

Spaceship is the name of the company which own the micro investing platform Spaceship Voyager. The Spaceship Voyager micro investing platform has been around since 2018. As per Spaceship’s current information they have over 100,000 customers (this includes customers that use their other products such as Spaceship Super). Spaceship’s head office is located in Australia and prides itself on five key values when it comes to its products. These values are:

  • Forward Thinking
  • Accessible
  • Curious
  • Transparent
  • Straightforward

You can learn more about there here.

What is Micro-Investing?

Micro = Small or Extremely Small

Investing = To place money into shares, property, or other financial schemes with the expectation of achieving a profit.

So in a nutshell Micro-Investing is small investing, and in the case of Spaceship its investing small amounts of money into a pre-determined portfolio of shares.

What are the benefits of micro-investing over regular investing platforms?

The main benefit of micro-investing over regular investment platforms is that they allow you to dip your toes into investing without the usual larger initial investment. They are also typically very simple to use in comparison to more conventional share trade platforms. This makes micro-investing the perfect place to start your investment journey as a new investor.

What are the benefit’s of using Spaceship?

  • No Minimum Investment Amount – invest $1 or invest $100 it’s your choice.
  • Instant Diversification – Spaceship have already created 3 pre-diversified portfolios that have been designed to suit a range of investing values/risk appetites. The benefit of having a diverse portfolio is that the risk is somewhat spread across the different companies.
  • No Fees to Trade – This for me is a big plus given the usual cost per trade given that in a traditional investment platform each individual trade ranges from $9.50 – $25.
  • Fee Free below 5k – Once you hit 5k then dependant on the portfolio option you chose your fees range from 0.05% to 0.10% P.A. Which for a 10k portfolio equates to between $2.50 and $5 per year.
  • Simple to Use – There are limited buy options (no option to buy at market price, to limit price or make a conditional order) which means that its really easy to start investing (you don’t need to know all these terms straight up, although you might want to). To invest you simply select how much money you wish to invest eg $5 through the application on your phone and hit invest. Your investment is then processed dependant on the time you submitted it. If you submit an investment request through the app before 5.00pm on a business day, you’ll generally receive the unit price calculated as at the close of markets on that day. However if you miss the deadline then you’ll generally receive the unit price calculated as at the close of markets on the next business day.

What are the potential disadvantages of using Spaceship?

  • Risk – All investing carries risk. Don’t let anyone tell you otherwise. Micro-investing is no different. Each investment portfolio within Spaceship is assigned a risk profile (Low/Medium/High), and this is designed to assist you in selecting an investment that suits your risk profile. Spaceship give no guarantees of return and previous fund performance is not indicative of future fund performance. If you choose to invest you are taking on the risk that you could lose some or all of your investment.
  • Limited Investment Options – You get to pick from 3 pre-diversified portfolios, however you have no choice in what is in them. For some investors this may not be what you are looking for, and if this is the case then you will need to look at another option.
  • Limited timing / buy options– For those used to investing on regular share investment platforms you may miss the fact that your investment isn’t automatic or that you aren’t able to choose a price to invest at etc (no options to limit price, make a conditional order or market order).
  • Taxation Considerations – Like any investment you are subject to taxation laws, and Spaceship recommend you seek professional advice before investing in their products.
  • Not for short term investors – Investing is for the long term so I wouldn’t recommend using Spaceship for short term investing (you are better off parking that money in a high interest savings account). Time in the market generally beats timing the market so invest what you can afford to, and only invest money that you don’t require for at least 2 years (the longer the better).

How often can I invest?

Spaceship gives you two options to invest. You can make investments in the following way:

  • One off investments on an ad-hoc basis. You are able to choose the amount you invest, and when you want to invest.
  • As part of a regular investment plan. This is where you invest an amount you specify regularly (weekly, fortnightly
    or monthly) to suit you. You decide the amount you would like to regularly invest, and this could any amount ($1 or $100). You can change your investment plan at any time through the app (so you are not locked in).

Does Spaceship pay dividends?

Spaceship pay distributions not dividends as the Spaceship investing fund is a unit trust.

These distributions are calculated annually (if available again there is no guarantees) on or around the 30th June each year. You are then paid these distributions within 90 days of this date. To be eligible for this distribution you need to be a unitholder before the calculation date (30th June).

You will have the option to have your distribution paid to you, or if offered you can participate in DRP (Distribution/Dividend Reinvestment Plan).

More information on DRP available below

How am I personally using Spaceship?

As previously mentioned I’ve been using Spaceship for 3 months. I have $181.03 (at the time of this post) in my account (see photo below). Of this total amount $4.21 is growth and the rest is my own money.

My Current Spaceship Investment Performance on 6/1/2021

I currently invest $25 a fortnight which aligns with our payday. I also add additional amounts to round down my everyday transaction account. Eg If my account is $152.50 then I will transfer $2.50 to my Spaceship account.

I enjoy investing in Spaceship as it allows me to add little bits of money we make over the year and pop it in. This allows us to siphon off side hustle and other bits of money we won’t miss before we fritter that money away on other things. We plan to continue investing in Spaceship for the foreseeable future and believe it sits well beside our main conventional share trading account.

Remember I’m not a finance professional, and really just some random on the internet so make sure you do your own advice before looking to invest in any investing product or platform.

Do you want to find out more?

Well head on over to the Spaceship Voyager website, and after doing your own due diligence decide to go ahead feel free to use my link and code below to get $5 (after your first investment).

https://spaceship.app.link/refer?code=S8EG1U4TAG

Please note that this post contains referral links from Spaceship and I receive $5 if you choose to use my code (but remember you also get $5 so I see it as a win / win scenario).

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