In recent years, investment apps like Acorns have taken off in the US, allowing consumers to invest their spare change in curated portfolios. For years, Canadians didn’t have a comparable investment option, but the investment app Mylo has changed that!
Mylo works very similarly to Acorns, allowing consumers to invest their spare change, but in Canadian ETFs as opposed to American ones. If you live in Canada, you may be considering Mylo as an investment option. Here’s what you need to know about this unique new investment app.
How does Mylo work?
Mylo links to your bank account and rounds up all of your purchases. For example, if you spend $3.25 on a coffee, the remaining $0.75 will go into your Mylo account. You can then opt to invest the money in an ETF portfolio, save it, or give it to one of the 86,000 charities that Mylo is registered with. Mylo partners with CanadaHelps for their charitable contributions. You can opt to do just one of these things, or you can do all three – you can customize your financial goals on the app to determine exactly how much you want to be spending on each goal.
The app will also track your progress towards your financial goals to help you stay motivated. If you want to invest even more, you can set a multiplier for your roundup. For example, if you choose a 5x multiplier, that $0.75 from your coffee will become $3.75 that’s invested in your portfolio. If it’s within your budget, this is an excellent way to boost your investment portfolio quickly. You can also set up recurring deposits to your account if you would prefer to add money to your portfolio more quickly.
What investments does Mylo offer?
Mylo owns an asset management company called “Tactex”, to provide their investment services. Mylo has an automatic portfolio manager, so you do not need to worry about choosing or managing any investments on your own. Mylo currently has a very simple investment strategy that supports ETFs. They choose low-cost investments to create a diversified portfolio for their customers, which reduces risk. While the pool of ETFs that Mylo offers can change, they currently offer Canadian, US, and international stocks and bonds, as well as high interest savings ETFs.
Does Mylo charge fees?
One of Mylo’s biggest selling points is that it is a very affordable investment option. Mylo does charge fees, but they are very small compared to other investment apps and services. For a Mylo subscription, you’ll pay $1 per month, and then you’ll need to pay the standard ETF fees for your investments. ETF fees are standard for everyone on the market and do not come from Mylo. For your charitable donations, you’ll be charged a 2 percent fee that goes to CanadaHelps. You can also pay $3 per month to sign up for Mylo Advantage. Mylo Advantage is Mylo’s premium investing service that offers additional features. There is an account minimum of $25 to start investing.
What features does Mylo offer?
Mylo has a beautiful user interface that allows you to set your financial goals and track your progress towards them. It allows you to track your investments, saving, and charitable giving all in one place, which is something that not many investment apps offer. When you sign up for Mylo, you’ll choose your risk tolerance and then answer a few other financial questions, and the app will give you your portfolio options. You can adjust them at any time from the app. While you cannot choose the exact ETFs that go into your portfolio, you do have control over your risk tolerance. You can always contact your portfolio manager if you have any questions about your account.
What additional features are included with Mylo Advantage?
Mylo Advantage offers some advanced features for an additional monthly fee. One of the biggest benefits of Mylo Advantage is that you can set up a tax-free savings account (TFSA) to save money come tax time. You can also set up socially responsible investments, which go to companies that support important social causes. These include companies that are environmentally friendly, promote gender equality, make socially responsible purchasing decisions, and more.
Mylo Advantage also offers much faster withdrawals than the standard Mylo account, so you can access your money quickly when you need it. They offer a cash back rewards program as well, so you can save money at places where you shop often.
Is Mylo safe?
Mylo offers safe, insured investments for their customers. They use Fidelity Clearing Canada as their custodian and TSX Trust as their trustee, two respected and financially secure companies. All of the investments they offer are insured by the Canadian Investor Protection Fund, which protects investments up to $1 million. Their app and website both use secure encryption to keep your data safe.
How do I set up a Mylo account?
Setting up a Mylo account is very simple and takes about five minutes. If you sign up with Mylo via a referral link, you’ll get a $5 bonus, and your referrer will get a $5 bonus as well. You’ll start by creating an account and answering some questions about your financial preferences and risk tolerance, as well as your financial goals for the future. Mylo will use this information to start building your portfolio. Then, you’ll link your bank account as well as any credit or debit cards you want to use.
What are the advantages of using Mylo?
Mylo offers many advantages that have really helped them differentiate themselves from other options on the market. Here are some of the advantages of using Mylo.
- One of the things that really makes Mylo stand out is that they are based in Canada and provide a unique investment solution for Canadian customers. Canadians don’t have access to as many of the same investment apps as Americans do. Mylo has really filled in the gaps by offering a similar experience tailored to the Canadian market.
- Mylo makes investing affordable for people on a budget. Their $25 account minimum is very reasonable and makes it easy to get started with your portfolio. They also have very low fees – for a basic Mylo account, you’ll only pay $12 per year, but you’ll have the potential to gain much more than that with your investments. Many people hold back from investing because they think they’ll need a lot of money to get started. Mylo is a way for anyone to invest, regardless of the budget they are on.
- Mylo’s model of investing or saving your spare change makes it easier to achieve your financial goals. Financial planning can be incredibly daunting, and if you’re busy, you might not have time to manage an investment portfolio or even think about saving. Since you’re only investing small amounts of spare change, working towards your financial goals won’t feel so scary. In fact, you probably won’t even think about the fact that you’re saving most of the time.
- Mylo is ideal for true beginner investors because it builds portfolios for you. You won’t have to worry about learning the ins and outs of trading or financial risk, because Mylo does all of that work for you. They choose low-cost investments and create diverse portfolios to minimize your risk, and ideally you’ll see slow but steady growth over time. You also don’t have to worry about mastering complex investment terminology or spend time monitoring the markets, something that can pose a challenge for beginner investors.
- Mylo is a well-designed app with a beautiful user interface. It is very easy to navigate and has a pleasant design that’s easy to use. Even if you’re not particularly tech-savvy, Mylo has an interface that is very accessible.
- There aren’t many other investment apps that allow you to save your money or give charitably in addition to investing. Mylo gives you multiple options to help you achieve your financial goals, which makes them stand out from many of the other apps on the market. They have a large number of charities to choose from, and they make it easy to save for specific financial goals.
- Mylo has reliable customer service to help you stay on top of your account. While the profiles are automated, you do have the option to connect with your portfolio manager if you want to learn more about your investments or make changes to your portfolio. Mylo also has live customer service available within the app from Monday through Friday.
- If you want to upgrade to Mylo Advantage, it’s only a few extra dollars per month, and gets you tax benefits, a socially responsible investing account, faster withdrawal times, and cash back rewards programs that help you save even more money.
What are the disadvantages of using Mylo?
There are plenty of great things about using Mylo for your investments. However, there are some downsides of using Mylo as well. Here are some of the disadvantages of this app to keep in mind when signing up.
- Mylo’s automated portfolios are great for beginner investors, but they may not be as appealing for experienced investors who want more control over where their money is going. You don’t get to control exactly what companies you’re investing in, which can be frustrating if you feel like you could put together a more effective portfolio on your own.
- Mylo isn’t set up for trading. Instead, it’s designed for passive, long-term investing and achieving large financial goals. There isn’t any investor education available on the platform, and there aren’t any tools you can use to monitor the markets. If you’re looking for a more hands-on trading experience, you will probably benefit more from another investment app or service.
- If you’re only using Mylo to invest very small amounts, their $1 per month fee can actually be comparatively high. For example, if you’re only investing $40 per year, that fee is proportionally much higher than the percentage fees that other investment apps charge. However, if you’re using Mylo to invest several hundred or thousand dollars each year, that fee is incredibly low.
- Mylo is currently only available in Canada. While it’s great for Canadians, you won’t have access to it if you live in the US or any other country.
Are there any alternatives to Mylo?
There are many apps that are similar to Mylo that are only available in the United States, such as Acorns, Robinhood, Betterment, and more. However, they aren’t available in Canada, which makes choices limited for those living there.
If you live in Canada and want an alternative to Mylo, there are several robo-advisors you can look at. Robo-advisors are tools that help you create and manage an investment portfolio online. They usually are much more complex than Mylo, and they typically charge higher fees as well. However, if you’re looking for more freedom and options when it comes to managing your portfolio, these robo-advisors might be appealing for you.
The most popular robo-advisor in Canada is Wealthsimple. If you like Mylo but want a more comprehensive investment option, Wealthsimple might be a good choice for you. Other robo-advisors in Canada are Wealthbar, Nest, and JustWealth. Each have their own pros and cons that you’ll want to take into consideration before committing to their services.
Mylo is currently the only affordable passive investing app available in Canada, and offers similar quality to apps like Acorns and Robinhood in the United States. There are many great reasons to use Mylo for your investment – it’s simple and doesn’t take much time or effort to manage, and they offer much more affordable investing services than the existing robo-advisors in Canada. Mylo’s saving and giving features allow you to manage many different aspects of your money all in one place, something that’s very convenient when you’re busy. If you’re new to investing and financial planning, Mylo makes the whole process very easy and stress-free. It’s an excellent entry point into the world of investing.