Looking for a savings and investment app in Canada? This Moka review is for you.
Have you tried different savings and investment apps in the past without results, or you’re just starting out and looking for a cost-effective app to make the most of your money?
Regardless of your situation, Moka is one of the top options you will encounter when looking for the best automated savings and investment apps in Canada.
In this Moka review, I explain everything you need to know about the app including how it compares with other savings and investment apps in Canada to help you make an informed decision.
What is Moka?
Moka is a Canadian savings and investment app dedicated to helping Canadians achieve their financial goals by saving more, spending less, and investing smarter.
The app was formerly called Mylo when it was founded in 2017. However, it was rebranded to Moka in 2017 after its expansion to France.
Moka is now owned by Mogo, one of the top Canadian fintech companies that offer free credit monitoring services and other financial products.
One of the things that distinguish Moka from other savings and investment apps in Canada is its automated rounds up feature.
With this feature, Moka automatically invests your spare change to your investment account or donate to your favourite charity organization.
Moka does not have a minimum account balance requirement and investment fees, helping you make the most of your money.
How Does Moka Work?
Moka is a goal-driven savings and investment app that is currently used by more than 500,000 users.
When creating a Moka account, you will be required to set a goal based on your risk tolerance, budget and preferred savings length. You can increase your goals to a maximum of 10 and modify them whenever you want.
Once you set up your Moka account and linked your debit/credit card, a dedicated portfolio manager will match you with an investment portfolio that suits your goals and risk tolerance.
When you have spare change on your purchases, Moka will automatically round it up to the nearest dollar and invest it in your account.
In addition to the automatic roundup feature, you can also set recurring fixed weekly deposits or make one-time deposits to increase your Moka savings.
Key Features & Benefits of Moka
The following are the key features of Moka that make it such a popular saving and investment app in Canada.
1. Save More with Roundups
Roundups are one of the funding options on Moka. With this feature, Moka automatically rounds up your purchases to the nearest dollar and invests the spare change for you.
For example, when you make a $4.37 purchase, Moka will automatically round it up to $5.00 and deposit the $0.63 to your investment account.
The roundups are calculated and invested into your account weekly and they apply to your purchases with your linked card on Moka.
However, you can choose to donate your spare change to your favourite Canadian charity organization. There are currently 86,000 charity organizations to choose from on the app.
By donating your spare change to a charity organization, you could receive up to a 52% tax deduction for your donation when it’s time to file your taxes.
When you refer your friends and family members to Moka and they also donate rounds to charity, both you and your referral will earn $5 as an extra charity donation.
2. Automatic Investing
You can invest effortlessly with Moka because your portfolio is automatically managed by a dedicated portfolio manager.
The portfolios are built using well-diversified low-cost ETFs to help you minimize risk and investment costs. Each user is assigned an ETF portfolio that matches their risk appetite and goals.
The following are the types of ETF portfolios Moka supports:
- Cautious income
- Balanced income
- Balanced
- Balanced growth
- Equity growth
You can also choose a Socially Responsible Investment (SRI) account if you care about making a positive impact. And to save on taxes, Moka supports Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP).
Your spare change will be automatically invested in your chosen account every time Moka rounds up purchases to the nearest dollar. But to boost your investment, you can set recurring fixed weekly deposits or make one-time deposits to your Moka account.
Unlike other investment apps, Moka doesn’t charge management fees or commissions on your investment accounts.
The only fee you will have to pay is the management expense ratio (MER) charged by the underlying ETFs which varies across the different portfolios as follows:
- Standard portfolios: between 0.09% and 0.39%
- SRI portfolios: between 0.16% and 0.40%
Looking at these rates, it is safe to say that Moka’s average MERs are among the lowest in the industry.
3. Debt Repayment Tool
Moka helps you pay your linked credit card debt faster with an automated personalized debt payment plan.
The tool will analyze your financial situation and recommend ways you can easily pay off your credit card debt while saving on interest.
You don’t need to pay an additional fee to access the Moka debt repayment tool. But it is only available to users that subscribe to Moka 360 plan which costs $15 per month.
Also, you can have Moka use your recurring deposits and roundups to make an automated credit card debt repayment on your behalf.
4. Earn More with Cashback Perks
Moka partners with several online stores that reward its users with cashback on their eligible purchases.
Once you shop with your linked card on the Moka app, you could earn cashback at the end of the transaction.
How much cashback you get depends on the perk. However, you will get double cashback perks when you subscribe to the Moka 360 plan.
With a double cashback, you get 2X cashback on what you could get on the Moka regular plan. This is a great way for offsetting a significant part of your expenses and saving more.
5. Financial Coaching
Moka offers free financial coaching to its Moka 360 users. The app has a dedicated team of financial coaches ready to respond to all your questions on:
- Savings
- Credit card debt
- Budgeting
- Loans
- And more
The financial coaches provide personalized solutions based on your goals and situation. They can also help you with a personalized plan on how to get on top of your finances.
Moka Plans and Fees
Moka currently has two plans that are both paid. Below is an overview of the two plans including their key features and fees.
1. Moka Plan
This is a regular plan that consists of the basic features you need to automate your savings and investing.
The Moka regular account costs $3.99 per month and it has the following features:
- Roundups
- Automated saving and investing
- Cashback at partner stores
- Socially responsible investing (SRI)
- Tax-free investment accounts
While this standard plan offers great benefits, you will save and invest more with the Moka 360 plan.
2. Moka 360 Plan
This is a premium plan with all the features you need to save and invest more money in your account.
The Moka 360 Plan costs $15 per month and it has the following features:
- All the features of the Moka regular plan
- $99 discount on any Willful plan
- Double cash back at partner stores
- Personalized credit card debt payment plan
- Personal financial coaching
Looking at the above features, you can see that the Moka 360 plan is worth the $15 monthly fee compared to similar apps in Canada.
Is Moka a Legit App?
Short answer, yes! Moka is a legit saving and investing solution that has attracted over 500,000 users in both Canada and France.
Your Moka investment portfolio is managed by one of Tactex Asset Management’s registered portfolio managers.
In addition, Moka enjoys the support of some of the largest and reputable venture capitalists in Canada, such as NAventures and Desjardins Capital.
Is My Money Safe With Moka?
No savings and investing app is 100% risk-free. But in terms of safety, Moka strives to make your money safe on its platform by using bank-level security protocols.
In addition to being ISO compliant, Moka uses SSL connections and 256-bit encryption to protect your money and personal information.
That said, the app invests your money in a low-cost ETF portfolio based on your goals which help limit your risk and maximize your returns. Also, your portfolio is insured by the Canadian Investor Protection Fund (CIPF) up to $1 million.
Related: CDIC : Understanding How Deposit Insurance Works In Canada
How Do I Get My Money Out of Moka?
You can withdraw your money out of Moka at any time through the Moka app. Except for RRSP withdrawals, all Moka withdrawals are free.
The following are the steps on how to withdraw money from Moka:
- Log in to your Moka account
- Select the goal you want to withdraw from
- Enter the amount you want to withdraw
Moka will send your money directly to your chosen funding option within one business day.
Pros and Cons of Moka
Below are the top pros and cons of Moka you need to consider when deciding if it’s the perfect app for you.
Moka Pros
- Automated savings and investing: You can have your money growing while sleeping with the Moka automated solutions.
- Freebies: Invest in Moka without worrying about management fees or commissions which are common among most trading platforms out there.
- No minimum balance: You can start investing in Moka with any amount using your spare change or direct deposit.
- Cashback perks: Maximize your savings with cashback perks by making purchases through Moka’s partner stores.
- Personalized financial assistance: Get the financial assistance you need to improve your finances at no cost.
- Referral bonus: Earn a $10 bonus for each person you refer to Moka with your unique referral code. Your referral will also earn the same $10 bonus.
Moka Cons
- Monthly fees: Depending on your spending habits, the $3.99/$15 monthly fee of Moka may not be worthwhile as there are several free savings and investing apps without monthly fees in Canada.
- Limited investment accounts and types: Moka doesn’t support some of the basic investment accounts and types such as a high-interest savings account and GICs.
How to Open a Moka Account
It takes only a few minutes to open a Moka account. Here are the steps to get started:
- Download the Moka app from Google Playstore or App Store
- Follow the instructions to set up your account
- Link your credit/debit card
- Fund your account
There you have it. Now you can start making purchases through Moka and save towards your goals.
Moka vs KOHO
KOHO is another fintech company that offers savings, spending, and credit building solutions by partnering with Peoples Trust and Visa.
Both Moka and KOHO are Canadian-based companies that offer cashback for purchases at partner stores.
Like Moka, KOHO also roundups your purchases to the nearest dollar with up to 2% cashback on three spending categories.
That said, the two fintech companies differ considerably. Unlike Moka, KOHO offers a 1.2% interest on savings, which is one of the highest in Canada.
Also, Moka doesn’t have a credit card product at the moment. On the other hand, KOHO has a reloadable Visa card offering and a credit builder program to improve your credit score through the app.
That said, KOHO doesn’t support ETFs, SRI, or registered accounts, but Moka does.
With these differences, you can easily decide which of the two apps best suits your investment needs.
Learn more: Koho Referral Code: $20 Bonus
Moka vs Simplii Financial
Simplii Financial could be your perfect option if you’re looking for an all-in-one platform for savings, spending, investing, borrowing and mortgages in Canada.
As an online-only bank, Simplii Financial is able to offer a competitive promotional savings rate of 5.25% to new clients.
Like Moka, Simplii Financial offers cashback, TFSA and RRSP savings accounts. Unlike Moka, you can invest in GICs and mutual funds on Simplii.
In addition, Simplii Financial offers a no-fee chequing account, USD savings account, mortgages, personal loans and lines of credit.
With no monthly fees and everyday banking fees, you will likely earn and save more through Simplii Financial than Moka.
Related: Simplii Financial Review
Moka vs Wealthsimple
If you’re looking for the best investing app in Canada, Wealthsimple is a top alternative to Moka.
Wealthsimple is a household name when it comes to online investment management services in Canada. The reputable company sets itself apart by offering robust financial solutions since its establishment in 2014.
Like Moka, you can invest in ETFs, TFSA, and RRSP through Wealthsimple. In addition, Wealthsimple supports RRIF, RESP, LIF, REP, SRI, Halal, personal, joint, and business accounts.
The following are other key features of Wealthsimple that makes it a top alternative to Moka:
- Fractional shares trading
- Tax-loss harvesting
- Crypto trading
- Payment solutions
- Free tax-filing software
Like Moka, you can set automatic deposits through Wealthsimple Invest, its robo-advisory service, that automatically manages and rebalances your portfolio.
Wealthsimple also doesn’t have monthly/annual fees and commissions. While Moka doesn’t have a management fee on its automated investing service, Wealthsimple has a 0.4-0.5% management fee.
The following is a breakdown on how Moka and Wealthsimple MERs compare:
| MER | Moka | Wealthsimple |
|---|---|---|
| Standard portfolios | Between 0.09% and 0.39% | 0.12% – 0.15% |
| SRI portfolios | Between 0.16% and 0.40% | 0.21% – 0.23% |
Overall, Wealthsimple is ahead of Moka on several grounds and you can’t make the wrong choice with it.
Related Post: Wealthsimple Promotions
FAQs on Moka Review
Moka is a good app for automated savings and investing in Canada. By rounding up your near-to-dollar purchases and offering access to cashback, you can easily improve your finances with Moka.
But if you’re looking for a robust and low-cost saving and investing app in Canada, you have many alternatives to consider, such as KOHO, Simplii Financial and Wealthsimple.
Yes! While Moka doesn’t have withdrawal fees (excluding RRSP withdrawals), management fees and commissions on investment accounts, it has a $3.99/$15 monthly fee.
You can lose money with Moka as with any other investment app. However, Moka minimizes your risk by depositing your funds in a low-cost diversified ETF portfolio that matches your risk tolerance and investment objective.
You can close your Moka account at any time without any penalty. All you need is to send a request for account closure through their in-app chat or email them at [email protected].
When emailing Moka for account closure, ensure you use the same email you used to sign up to Moka.
Over to You
That brings us to the end of this Moka review. Hopefully, you have all the information you need to make a decision on whether it’s a good fit for you or not.
But if you’re looking for a cost-effective saving and investing alternative, you have many options to choose from as discussed above.
Which option are you going with? Please let me know in the comment below.
Liked this Moka review? Then check out other existing blog posts to learn more about the best savings and investment solutions in Canada.
Moka Review
Summary
Moka is a Canadian savings and investment app dedicated to helping Canadians achieve their financial goals by saving more, spending less, and investing smarter.
