Moka / Mylo Review 2021
While automated investing and savings apps have longtime 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 fact, despite the country’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 explain more about what this means and how you can strengthen your savings portfolio without even lifting a finger.
What is Moka / Mylo?
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.
As mentioned earlier, 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.
The philosophy behind Moka is this: transfers are automated and relatively small. Ideally, the user will not even notice that the funds have left their bank account and moved to the app.
For a savings tactic that is even more incognito, 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 chose to deploy a 5x multiplier, instead of investing 43 cents, you would be investing $2.15 instead.
In order to gain access to its services, Moka charges its users a $3 per month fee, regardless of the size of investments in a portfolio.
Moka / Mylo Pros & Cons
Pros: The Good Stuff
A wonderful way to save for those who don’t feel confident in their finance skills and feel they never can afford to put money aside to save
Varying options to suit tastes ranging from those who are uncomfortable with investing and those who want to spend less and invest
Users have the choice of a “socially responsible” investment portfolio that only invests in environmentally and socially conscious companies
Opportunities for cashback purchases from selected partners which have included the likes of Apple Music, HelloFresh, and Uber Eats
Users have access to a dedicated portfolio manager and attentive customer support
Access to Moka 360, a dedicated repayment plan for debt, including credit card debt
Moka uses bank-level encryption and security measures, and all funds come with insurance from the Canadian Investor Protection Fund (CIPF), which protects customers against company bankruptcy
Cons: The Not So Good Stuff
Moka’s flat fee of $3 per month can be rather high on an annual level, depending on the size of your investments
Not as comprehensive as other auto-saving apps on the scene, such as Wealthsimple (which allows for larger investments)
Relatively difficult to close an account (requires an email request and cannot be accomplished at the click of a button)
Our Final Thoughts
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.
Frequently Asked Questions
Mylo/Moka is best suited for individuals who are looking for a simple all-in-one solution for saving and investing money. It is especially advantageous for anyone who does not have a robust knowledge of the stock market and would rather rely on robo-advisors.
Mylo/Moka’s round-up approach to saving is a great idea for anyone who makes a lot of small purchases and wants to save for small financial goals without putting too much thought or energy into it.
It is also suitable for people who use their debit cards to make most of their daily transactions.
Mylo / Moka is safe to use. Mylo/Moka uses both 256-bit encryptions and SSL on its website, which aligns with what large banks offer. If you are comfortable engaging in online banking with your local bank, you should feel more comfortable using Moka.
In addition to these security measures, Moka also offers its customers insurance with the Canadian Investor Protection Fund (CIPF). This insurance will cover your funds up to $1 million in the case of company bankruptcy.
As a Canadian fintech product, the Mylo / Moka app is not currently available in the United States. However, there are American apps that can perform similar functions, namely Acorns and Digit.
In 2020, Moka expanded its operations into Europe and now offers its services in France. There are plans for service expansions within other European countries. However, it does not appear that there are currently plans to expand its operations to the United States.