Moka App Review (Formerly Mylo)

   (Editor Rating)

Moka Review Summary:
  • Ease of use
  • Fees
  • Account Options
  • Simplicity
4.3

Moka (Mylo) Review Summary:

Moka (formerly Mylo) is a good all-in-one solution. It’s a smooth app that enables you to control your budget, investing, and become more financially aware without requiring much effort from you, the user. We particularly like the smart idea of saving spare change and turning it into an investment, which is one of the many functions offered.

That said, anyone who is even a bit savvy is much better off using a robo advisor instead. With Wealthsimple (the best robo advisor in Canada) for example, you just got so much more in return, not to mention fees are substantially lower.

Pros

  • Free easy to set up and use
  • Useful way to utilize your spare change
  • A few nice benefits and cashback options
  • Safe to use + great reviews overall

Cons

  • Not enough account options
  • Fees are quite high unless you use the app very often
  • Not as useful for larger investments as Wealthsimple.
  • No signup promo as of now

Are you looking for an easy way to save money or build an emergency fund?  Our Moka review (formerly Mylo) explains how Canada’s latest FinTech company is seeking to make saving just a little bit easier.

Moka, as Mylo, appeared on Dragon’s Den in 2018 and has been gaining traction ever since thanks to how easy they make it to save.

So, how does Moka work and is it worth it?  

How Does Moka Work?

Moka (formerly Mylo) is an app whose mission is to “help you achieve your financial goals by making it easy to save more, spend less and invest smarter.”

Sounds great, but how does it work?

It’s actually pretty easy. Once you download the Moka money app, you will be able to connect it to your debit and/or credit card. Then, when you use it, the Moka app will automatically round up your everyday purchases and invest the spare change for you. 

For example, say you go to Starbucks and order your favourite coffee. The total comes to $4.15. Moka will round up that bill to $5 and take that extra $0.85 and invest it for you. Sure, $0.85 may not seem like a lot, but if you order that same coffee every single day, well that’s $310.25 you’ve saved up in a year from your morning coffee alone. Not too bad!

Moka Investing

You can choose from either a TFSA, RRSP, or non-registered account for your Moka savings. Your spare change is automatically invested into a diversified portfolio of ETFs, meaning that you can sit back and watch your savings grow without having to lift a finger. 

There are five different portfolio options depending on the level of risk you want to take:

  • Conservative (100% Moka Money Market ETF)
  • Conservative-Moderate (40% Moka Money Market ETF, 60% Moka Fixed Income ETF)
  • Moderate (60% Moka Fixed Income ETF, 40% Moka Equity ETF)
  • Moderate-Aggressive (40% Moka Fixed Income ETF, 60% Moka Equity ETF)
  • Aggressive (20% Moka Fixed Income ETF, 80% Moka Equity ETF)

For those wondering, your money will be invested by a portfolio manager from Tactex Asset Management – which is a subsidiary of Moka Financial Technologies. Tactex Asset Management currently manages more than $200 million in assets.

Moka App Benefits

On top of rounding up your money and investing it for you, the Moka app also advertises an ‘advisor’ service. This is a real-time chat function integrated into the app that will allow you to ask Moka advisors any questions you may have about your finances. As of December 2020, the advisor service is only available for premium members (Moka 360).

Another Moka benefit is the Moka Perks which are essentially cash back incentives at specific brands such as Uber Eats, Apple, Music, HelloFresh, and more!

Plus, for those who choose to upgrade from basic Moka to Moka 360, you get a number of added benefits to help you manage your finance and cut costs. More on that below.

Moka App Fees

When it comes to Moka pricing, you’ll find that this app is actually quite affordable. There is a monthly fee of $3 which includes:

  • Automated saving features
  • Unlimited tax-free investment accounts
  • Socially responsible investing options
  • Round up to give to charity options
  • Cashback from perks

There is also another option called Moka 360 which is $15 per month and comes with some additional features:

  • $360 refund if you don’t save what you pay in the first year (making it risk free)
  • Access to personalized financial advice
  • Customized debt plan
  • Double cashback perks when you shop
  • Help negotiating lower prices on monthly bills

Moka or Wealthsimple?

Automated investing is increasing in popularity across Canada which means that we’re seeing more and more competition. 

So, how does Moka line up to one of the top automated investing companies in the country, Wealthsimple?

There are plenty of similarities between the two. Both are safe, have apps, offer SRIs, invest using ETFs, and both also offer round up bonuses. However, Wealthsimple just offers more. More account options for investing, more opportunities to invest larger amounts of money etc.

Now, that’s not to say that Moka is a bad choice. It really comes down to your goals and strategies. Are you disciplined enough to save on a regular basis? Then Wealthsimple is the best choice.

However, if you are someone who continually struggles to put aside money then Moka is probably the best option since it does that work for you, and is a nice little automated solution. Learn more about Wealthsimple in our Wealthsimple review.

Is Moka Safe to Use?

Like with any other financial app or online tool, people will question whether or not Moka is safe. The simple answer is yes – as safe as any investing product can be.

Moka uses the same security measures as Canada’s major banks which includes 256-but encryptions, SSL connections, and strict security policies. While nothing online is ever 100% safe, Moka definitely goes above and beyond in doing everything they can to protect you and your money.

Of course when it comes to investment risk, there is no inherent “safety” feature that can alleviate the risk involved in your investments!  That’s the whole point of this risk-return thing that investing people are always talking about.

How to Get Started with Moka

Using Moka is easy and can be done in 3 simple steps. 

To start with, you’ll need to download the app. Make sure to use our Moka/Mylo promo code.

  1. Create your account. You will have to answer several questions to build your profile that will also determine your financial goals and risk tolerance.
  2. Link your debit and/or credit card to the app.
  3. Use the app when you shop and watch your savings and Moka investment returns grow!

Is The Moka App Worth it?

So, the real question is, is the Moka App worth it? After all, $3/month for the basic account seems pretty reasonable. However, it really depends on how much you actually save.

Moka costs $3/month that’s $36/year. Now, let’s say you save $25/month which is $300/year. To figure out the ‘management fee’ of Moka you will divide the annual costs by your annual savings. So, 36/300= 12%. 

That’s pretty high. You can do much better with another automated investment app. 

Now, if you manage to save 300/month that equals $3,600.

26/3600= 1% which is a great rate and, therefore, makes Moka a good option.

At the end of the day, the value of this app really depends on how much you think you will be able to save.

Moka Canada Review: Final Thoughts

What we love about Moka is how simple and easy it is. 

By making it incredibly easy to invest your “spare change” the Moka app could potentially get people saving and investing that have never considered it before. The fact that it allows you to save without having to physically do the work makes it the perfect investment tool for Canadians who struggle to save on a regular basis. 

That being said, if you are more disciplined with your saving strategies, then Moka probably isn’t the best choice for you. You’d be better off simply taking your savings at the end of each month and using an automated solution such as Wealthsimple.  Of course, if you simply like the idea of investing your spare change, there is no saying that you couldn’t use both platforms!

Kornel

Kornel Szrejber is the host of the Build Wealth Canada Show, and has been featured for paying off his mortgage in only 6 years while still in his 20s, and becoming one of Canada’s youngest retirees at the age of 32. He now runs a top personal finance and investing podcast created specifically for Canadians, as well as Canada’s largest personal finance and investing conference. There he interviews the top personal finance experts to share their best practices, tips and tactics when it comes to investing and financial planning in Canada.
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Investingator
8 months ago

My bank a credit union offers spare change account. We’re it rounds up my transactions into another account. Fee is same. (Doesn’t link to my credit card ).