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While automated investing and savings apps have long been a thing south of the border (mostly thanks to popular players like Acorns and Digit), they have been relatively slow to catch on in Canada.
In this Mogo review, we’ll take a look at the financial service and see what it has to offer Canadians seeking to up their personal finance game.
In fact, despite Canada’s friendly attitude towards other modern online financial conveniences, such as Interac e-transfers and tap payments, an integrated online approach to finances has remained somewhat evasive on Canadian soil.
However, in recent years some viable options have popped up on the scene for Canadians looking to invest and save with minimal effort or knowledge.
A prime example of this is the Moka app (formerly known as the Mylo app). This automated investment program helps Canadians reach their savings goals through micro-investments and purchase round-ups.
In this Moka / Mylo app review, we’ll provide a detailed review of how you can strengthen your savings portfolio without even lifting a finger.
Moka / Mylo is an app that allows you to round up and invest your spare change. You can learn more about the Moka / Mylo app, features, fees, and sign-up process below.
Formerly known as Mylo, Moka is a micro-investing app headquartered in Montreal, Quebec. It was acquired by MOGO, one of Canada’s most popular alternative financial brands in May 2021.
Moka / Mylo allows customers to connect the app to their bank account and lets them to invest with each person, using a set-it-and-forget-it approach to passive investing.
Similar to Canadian financial products like Wealthsimple, Moka / Mylo uses the robo-advisor approach. It rounds up every transaction and invests it in an Exchange Traded Fund (ETF).
Moka / Mylo is ideal for new or inexperienced investors seeking an approach to passive investing. It is also the perfect app for people who often face difficulties when it comes to saving money.
Below, we’ll look into some of Moka / Mylo’s features.
Moka / Mylo is a saving and investing app with many features, which include:
Registered and Non-Registered Accounts: Moka / Mylo offers registered accounts, such as the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Account (RRSP).
Portfolios: Moka / Mylo offers various portfolio options, which includes Conservative, Conservative-Moderate, Moderate, Moderate-Aggressive, and Aggressive, along with Socially Responsible Portfolios (SRI)
Moka 360: Moka / Mylo has recently introduced a new feature known as Moka 360, which helps lower your monthly payment on your internet, phone, and cable bills. The feature also helps automate debt payments with a specific plan, cashback perks, and access to financial coaching options.
Moka / Mylo and Moka 360 are two different packages that come with two separate fees.
In order to gain access to its services, Moka / Mylo charges its users a $3.99 per month fee, regardless of the size of investments in a portfolio. While this is an affordable price, Moka / Mylo tends to be more expensive than its competition. However, it is cheaper for customers who have large balances.
With Moka / Mylo’s basic account, customers have access to automated saving features, unlimited tax-free investment accounts, SRI investing, automatic donating, and cashback perks.
On the other hand, Moka 360 costs around $15* per month. For this monthly fee, you’ll receive bill negotiation, access to financial advice, a customized debt plan, double the cashback perks while shopping, savings on a will via Willful, and all of the other Moka features.
*Rates current as of August 2021
The philosophy behind Moka is this: transfers are automated and relatively small. Ideally, the user won’t even notice that the funds have left their bank account and moved to the app.
For a savings tactic that is even more inconspicuous, the app will also give you the option to “round up” all of your purchases to the nearest dollar and invest the spare change.
For example, say you go to a coffee shop and buy a latte for $6.57 (it’s a fancy latte with extra flavor pumps and oat milk).
Moka will take the 43 cents and add it to your account. While it may not seem like a lot, when you think about the number of purchases you make in any given month, you can quickly see how it would add up.
If you would like to expedite the savings process, you can choose to add a multiplier to your roundup. For example, if you choose to deploy a 5x multiplier, instead of investing 43 cents, you would be investing $2.15 instead.
It only takes a few moments to set up a Moka account. When you first start to use Moka, you’ll need to set up a savings goal for yourself.
Setting up an account can either involve saving up for something in particular, like a car or a vacation, or simply a general rainy day fund.
Moka will work by investing your money through consistently scheduled microdeposits, automatically transferred from your bank account to the app.
You can choose whether you would like to use the app as a savings vessel solely or if you would like to invest a certain amount of your funds into bonds and stocks.
Canadians are fortunate to have a player like Moka on the scene, especially if they want to learn how to invest smarter without feeling limited by their potential for saving.
While Moka gears itself towards Millennials — with good reason, as they are more likely to trust an online-only financial management platform and are looking to put money aside for the far future — it is a great option for any age group who is looking to save for a specific goal, even if this goal is just to have an emergency fund.
While Moka’s $3 monthly fee may add up to be uncomfortably high if you are looking to achieve small savings goals, it may be well worth the costs for those who prefer to let an app do the work for them, without having to spend too much time worrying about their investments. Overall, it’s a reliable way to save and invest money without involving too much thought or risk-taking.
