How Does Raiz Make Money?
A Complete Breakdown of Raiz’s Revenue Model, Business Strategy, and Micro-Investing Profitability in 2026
1Introduction
Raiz has established itself as Australia’s largest mobile-first micro-investing platform since its founding in 2016, transforming how everyday Australians build wealth through small, automated investments. Originally launched as Acorns Australia before rebranding to Raiz Invest, the platform has pioneered the “Round-Up” concept that rounds up everyday purchases to the nearest dollar and invests the spare change. But how does Raiz make money while offering fractional investing with no brokerage fees?
Understanding how Raiz generates revenue is essential for potential investors, fintech entrepreneurs, and anyone interested in robo-advisor business models. In the first half of FY2026 (ending December 2025), Raiz reported $14.4 million in revenue with 23.9% year-over-year growth, achieved profitability with $3.52 million in net profit after tax, and reached $2.1 billion in Funds Under Management. These numbers reveal a highly scalable subscription-based business model that has disrupted traditional wealth management.
This comprehensive guide breaks down exactly how Raiz makes money, exploring their subscription fee structure, account-based revenue tiers, and the strategic decisions that drove their transition to profitability in 2026. Whether you are researching the Raiz revenue model for investment purposes or seeking to understand fintech monetization strategies, this analysis provides actionable insights into one of Australia’s most successful micro-investing platforms.
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2What Is Raiz?
Raiz operates as a mobile-first financial services platform that enables micro-investing through a managed investment scheme. Unlike traditional brokerage platforms that require minimum investments of $500 and charge per-trade fees, Raiz allows users to start investing with as little as $5 and offers fractional investing in Exchange Traded Funds (ETFs). The platform is publicly listed on the Australian Securities Exchange (ASX: RZI) and serves over 336,000 active customers as of December 2025.
The platform operates through a sophisticated digital infrastructure that pools user funds to purchase ETF units, provides automatic portfolio rebalancing, reinvests dividends, and offers educational resources through Raiz Academy. Raiz handles investment management, portfolio allocation, and customer onboarding while generating revenue through its tiered fee structure based on account balances and subscription plans.
Raiz’s key service offerings include:
- Raiz Standard: Seven pre-mixed portfolios with automatic round-up investing
- Raiz Plus: Custom portfolio builder with access to 23 ETFs, 50 ASX stocks, property, and Bitcoin
- Raiz Lite: Low-cost entry plan designed for first-time investors (launched August 2025)
- Raiz Kids: Investment accounts for children under 18 with parental controls
- Raiz Super: Self-managed superannuation fund option
- Raiz Rewards: Cashback program that invests rewards directly into user accounts
3How Does Raiz Make Money?
Raiz’s revenue model is built primarily on monthly maintenance fees and account-based fees charged to users, supplemented by additional revenue streams from rewards partnerships and future transaction-based services. The company operates as both a subscription business and an asset-based fee generator, creating multiple touchpoints for revenue as customers grow their investments.
AMonthly Maintenance Fees (Primary Revenue)
The bulk of Raiz’s revenue comes from fixed monthly subscription fees charged to users based on their account balance and chosen plan. In 1H FY2026, maintenance fees reached $9 million, representing 63% of total revenue and showing 26.3% year-over-year growth.
Raiz Fee Structure (Effective August 2025)
| Plan Type | Balance Threshold | Monthly Fee | Annual Cost |
|---|---|---|---|
| Raiz Lite | All balances | $2.00 | $24.00 |
| Standard Portfolios | Under $15,000 | $4.50 | $54.00 |
| Plus Portfolios | Under $25,000 | $5.50 | $66.00 |
| Sapphire Portfolio | All balances | $4.50 + 0.275% | Variable |
Revenue Mechanics: Raiz charges fixed monthly fees regardless of account activity. For Standard portfolios under $15,000, the $4.50 monthly fee equals 3.6% annually on a $1,500 balance but drops to 0.36% on $15,000. This structure incentivizes customer acquisition even with small balances while generating predictable recurring revenue.
The August 2025 fee increase of $1 per month for both Regular and Plus Plans contributed significantly to revenue growth, with over 38% of new users choosing the higher-margin Plus Plan.
BAccount Fees (Percentage-Based Revenue)
Once users exceed certain balance thresholds, Raiz switches from fixed monthly fees to percentage-based account fees:
Account Fee Structure (0.275% p.a.)
For Standard and Emerald portfolios with balances over $15,000, and Plus portfolios over $25,000, Raiz charges 0.275% per annum of the account balance, levied monthly. This equals approximately $55 annually on a $20,000 balance. The Sapphire portfolio charges this fee on all balances in addition to the monthly maintenance fee. This creates a scalable revenue model that grows with customer wealth accumulation.
CRaiz Rewards Partnership Revenue
Raiz generates additional income through its cashback rewards program:
Affiliate Commission Model
When users shop with partner brands like Expedia, THE ICONIC, and Woolworths through Raiz Rewards, Raiz earns affiliate commissions from these retailers. A portion of this commission is invested into the user’s account as cashback, while Raiz retains the remainder. This creates a win-win where users grow their investments through everyday spending while Raiz generates commission-based revenue without charging users directly.
DFuture Transaction-Based Revenue Streams
Raiz is actively developing new revenue streams for 2026 and beyond:
- US-Listed Equities: Direct access to investing in the US market (planned 2026 launch)
- Direct ASX Trading: Infrastructure development underway for direct single HIN trading
- Instant Payments: Enhanced real-time trading capabilities with potential transaction fees
- Retirement Products: Partnership with State Street Investment Management for retirement solutions
ENetting Revenue
Raiz employs a subtle but significant revenue mechanism through ETF unit netting:
ETF Unit Netting
When Raiz pools user funds to purchase ETF units, the platform sometimes pockets small amounts from the rounding differences between pooled contributions and exact unit prices. This occurs in lieu of charging traditional brokerage fees and represents a margin on the massive volume of micro-transactions processed. While individual amounts are small, across 336,000 active users and tens of millions in contributions, this creates meaningful revenue.
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4Detailed Revenue Model Breakdown
ABusiness Model Mechanics
Raiz operates on a freemium-like model where the core service is accessible at low cost, but revenue scales through account growth and premium plan adoption. The company pools micro-investments from thousands of users to purchase whole ETF units, with an independent custodian holding legal title to protect investor assets.
The platform serves multiple customer segments with varying revenue potential:
| Segment | Description | Revenue Potential |
|---|---|---|
| First-Time Investors | Users starting with round-ups and small balances | High percentage fees relative to balance |
| Growing Investors | Users with $15,000-$50,000 balances | Transition to percentage-based fees |
| Plus Plan Users | Custom portfolio builders (38% of new users) | Higher monthly fees ($5.50 vs $4.50) |
| Raiz Kids | Parent-controlled accounts for minors | Long-term customer retention (29.2% growth) |
| Super Fund Members | Retirement account holders | Sticky, long-term assets (17.4% growth) |
BPricing Model Evolution
Raiz’s pricing strategy has evolved to improve profitability while maintaining accessibility. The August 2025 fee increase raised monthly maintenance fees by $1 for both Regular and Plus Plans. Simultaneously, the company launched Raiz Lite at $2.00 per month to capture price-sensitive first-time investors without cannibalizing higher-tier revenue.
CScaling Profits
Raiz’s digital-first model enables remarkable scalability. With minimal marginal cost per additional user, the company achieved 270% growth in Underlying EBITDA to $2.6 million in 1H FY2026. Operating expenses grew only 8% while revenue grew 23.9%, demonstrating positive operating leverage.
5How to Make Money With Raiz
While Raiz the company makes money through fees, individuals can leverage the platform for wealth building in several ways:
AMicro-Investing for Wealth Accumulation
Users can build significant portfolios through small, consistent contributions:
- Round-Up Investing: Automatic investment of spare change from everyday purchases
- Recurring Deposits: Daily, weekly, fortnightly, or monthly automatic contributions
- Raiz Rewards: Cashback from partner purchases automatically invested
- Fractional Investing: Buy portions of ETFs and stocks with any dollar amount
Historical performance shows Raiz portfolios returned between 4.9% and 12.44% annually over three-year periods prior to mid-2021, generally exceeding bank savings account interest rates.
BPortfolio Diversification Strategies
Raiz offers multiple portfolio options to match risk tolerance:
- Conservative to Aggressive: Seven pre-built portfolios ranging from cash-heavy to equity-heavy
- Emerald Portfolio: ESG-focused sustainable investing option
- Sapphire Portfolio: Includes 5% Bitcoin allocation for crypto exposure
- Custom Plus Portfolios: Self-directed allocation across ETFs, ASX stocks, property, and Bitcoin
CLong-Term Compound Growth
The power of Raiz lies in consistent, automated investing:
- Dividend Reinvestment: All dividends automatically reinvested to compound returns
- Automatic Rebalancing: Portfolio maintains target asset allocation without user intervention
- Dollar-Cost Averaging: Regular investments smooth out market volatility
- Tax Efficiency: Potential capital gains tax advantages for long-term holders
DRaiz for Children and Retirement
Specialized accounts for specific life stages:
- Raiz Kids: Build early wealth habits with parental oversight (65% FUM growth)
- Raiz Super: Self-managed super with Raiz portfolio options (31.1% FUM growth)
6Is Raiz Profitable?
Yes, Raiz achieved profitability in 2026. The company reported net profit after tax of $3.52 million for the half-year ended 31 December 2025, compared to a loss of $1.1 million in the prior corresponding period. This represents a significant turnaround and validates the scalability of the micro-investing business model.
ARevenue Insights
Raiz’s 1H FY2026 results demonstrate strong unit economics and operational leverage:
| Metric | 1H FY26 Result | Year-over-Year Change |
|---|---|---|
| Total Revenue | $14.4 million | +23.9% |
| Maintenance Fees | $9.0 million (63% of revenue) | +26.3% |
| Account Fees | 26.3% increase | Linked to FUM growth |
| Underlying EBITDA | $2.6 million | +270% |
| ARPU (Annualized Revenue Per User) | $86.45 | +16.4% |
| Operating Cash Flow | $2.36 million | +51.4% |
Key profitability drivers include the August 2025 fee increase, higher Plus Plan adoption (38% of new users), and disciplined cost management with operating expenses growing only 8% against 23.9% revenue growth.
BGrowth Potential
Raiz has multiple levers for continued growth and profitability improvement:
- Customer Acquisition: Targeting 2 million young Australians through Year13.com.au partnership
- ARPU Expansion: Growing average revenue per user through higher-tier plan adoption
- Product Innovation: US equities, direct ASX trading, and instant payments launching 2026
- Geographic Expansion: Operations in Indonesia and Malaysia with plans for Thailand and Vietnam
- Corporate Partnerships: KFC partnership promoting financial education to employees
- M&A Opportunities: Active assessment of targeted acquisitions for strategic synergies
7Pros and Cons of the Business Model
Advantages
- Highly scalable digital platform with minimal marginal costs per user
- Recurring subscription revenue provides predictable cash flows
- Sticky customer base with long-term investment horizons
- Network effects from growing FUM attract more users and partners
- Multiple revenue streams (fees, rewards, future transactions)
- Low customer acquisition cost through viral round-up features
Challenges
- High percentage fees for users with small balances (3.6% on $1,500)
- Intense competition from traditional brokers reducing fees
- Market dependency: FUM and revenue fluctuate with market performance
- Customer concentration risk in millennial demographic
- Regulatory scrutiny of fintech investment platforms
- Pressure to maintain low fees while scaling profitability
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8Frequently Asked Questions
Raiz makes money through monthly maintenance fees and account-based fees. For balances under $15,000 (Standard) or $25,000 (Plus), Raiz charges fixed monthly fees of $4.50 or $5.50 respectively. For larger balances, it charges 0.275% per annum of the account balance. The company also generates revenue through Raiz Rewards affiliate commissions and ETF unit netting. Unlike traditional brokers that charge per trade, Raiz’s fees are ongoing regardless of trading activity.
Yes, Raiz achieved profitability in the first half of FY2026 (ending December 2025). The company reported net profit after tax of $3.52 million, compared to a loss of $1.1 million in the prior corresponding period. Underlying EBITDA grew 270% to $2.6 million, and the company has guided FY26 EBITDA in the range of $4.5 million to $5.5 million. This profitability was driven by a 23.9% revenue increase, August 2025 fee adjustments, and disciplined cost management.
Raiz charges different fees based on your plan and balance: Raiz Lite costs $2.00 per month for all balances. Standard portfolios cost $4.50 per month for balances under $15,000, then 0.275% per annum for balances over $15,000. Plus portfolios cost $5.50 per month for balances under $25,000, then 0.275% per annum for balances over $25,000. The Sapphire portfolio charges $4.50 per month plus 0.275% on all balances. For context, a $20,000 Standard portfolio would pay approximately $55 annually (0.275%), while a $1,500 balance pays $54 annually ($4.50 x 12 months), representing 3.6% of the balance.
Raiz differs from traditional brokers in several key ways: it offers fractional investing (any dollar amount vs. minimum $500 trades), charges no brokerage fees per trade (instead charging ongoing monthly/account fees), provides automatic rebalancing and dividend reinvestment, and focuses on micro-investing through round-ups. Traditional brokers typically charge $10-$20 per trade but no ongoing account fees, making them cheaper for large, infrequent trades but more expensive for small, frequent investments. Raiz is better suited for beginners and those building wealth gradually, while traditional brokers suit active traders and larger portfolios.
If Raiz were to go bankrupt, your investments would remain safe. The ETF units purchased on your behalf are held by an independent custodian (not by Raiz), which has legal title to the investments on behalf of investors. This means your assets are separate from Raiz’s corporate assets. In a liquidation scenario, the custodian would facilitate the transfer of your ETF holdings to another brokerage or return them to you directly. Your money is not part of Raiz’s operational funds and cannot be claimed by Raiz’s creditors.
Yes, users can build wealth through Raiz, but returns depend on market performance, contribution consistency, and time horizon. Historical data shows Raiz portfolios returned between 4.9% and 12.44% annually over three-year periods prior to mid-2021, generally exceeding bank savings account interest rates. The platform is designed for long-term wealth building (10+ years) rather than short-term gains. Key success factors include: consistent contributions through round-ups or recurring deposits, maintaining investment during market downturns, choosing an appropriate risk-level portfolio, and utilizing the power of compound returns through dividend reinvestment. However, all investing carries risk, and past performance does not guarantee future returns.
9Final Thoughts
Understanding how Raiz makes money reveals a sophisticated fintech business model that balances accessibility with profitability. By charging subscription-style fees rather than traditional brokerage commissions, Raiz has built a $14.4 million revenue engine serving over 336,000 Australians. The company’s transition to profitability in 2026, with $3.52 million in net profit and 270% EBITDA growth, validates the scalability of micro-investing as a viable business model.
For entrepreneurs, Raiz’s success offers valuable lessons: focus on reducing barriers to entry for underserved markets (in this case, young investors with limited capital), build recurring revenue through subscription models, and create sticky customer relationships through automated features. The platform demonstrates that fintech innovation can democratize wealth building while generating sustainable returns for shareholders.
For investors, Raiz provides a legitimate entry point into markets with minimal capital requirements, though users should carefully consider fee structures relative to their account balances. As Raiz expands into US equities, direct trading, and international markets in 2026, its revenue diversification and growth trajectory position it as a significant player in the global micro-investing space.
As Raiz continues evolving, its core principle remains unchanged: Raiz makes money by empowering everyday Australians to build long-term wealth through small, automated investments, capturing value through transparent subscription fees while maintaining a consumer-friendly experience that drives loyalty and growth.
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