Usually, price changes occur when a business decides they want to creatively earn more from the same product. With our Pearler Micro price change, we’re trying something a little different.
Instead of hiking prices across the board, we’re tweaking them to align with investor feedback. We’re also looking to ensure the pricing better reflects Pearler’s belief in simplicity wherever possible. While it’s not an exact science, we’ve aimed for a change which works for the greatest number of Micro investors.
Firstly, what isn’t changing?
Flat account fees. The investing industry loves percentage-based fees that cost you more as you get wealthier. We believe that you shouldn’t be charged more for just trying to build wealth, doing the same things over and over, which is why we don’t hit you with weird percentage-based fees once you get over a certain amount… unlike pretty much everyone else.
We say “pretty much” everyone else not because there’s an abundance of apps with flat fees, but simply because we would rather spend time focusing on what you need, rather than keeping tabs on what others are doing.
In summary: invest more, invest less, same flat fee.
Okay, so what is actually changing?
In the past, we offered two tiers of pricing:
- $1.70 per month to invest in one fund
- $2.30 per month to invest in multiple funds
From 1 February, 2025, we’re opting for a flat fee of $2 per month – whether you invest in one investment option, or multiple. For people who currently invest in two or more investment options, this will obviously be good news. But if you only invest in one investment option right now, we understand that this might feel like a hassle. On the upside, it’s now easier (and cheaper) than ever to diversify into multiple funds. Of course, more isn’t always better, and the “right” number for you is going to depend on your goals. Even so, providing access to all options fits nicely within the Pearler ethos of simple, diversified investing.
We’ve also made a change to our free pricing model. Previously, Pearler Micro accounts were fee-free for balances under $100*. The idea here was to give investors time to experience Pearler Micro (and build their investments) without needing to pay for it. Perhaps more significantly, from the launch of Pearler Micro, we believed that a minimum of $10 a week was a healthy minimum amount to become an investor. With this in mind, we initially envisaged that a $100 fee threshold could let investors form an investing habit before needing to pay fees.
Since then, and based on investor feedback, we’ve concluded that a time-based window makes more sense.
As a result, accounts will be fee-free* for the first two months of use if you sign up on or after 1 February 2025, rather than fee-free* for the first $100. This way, investors will have a lengthy window to decide if Pearler Micro is right for them. If they don’t like it, they can leave within two months without feeling the pinch of fees.
For context, to reach $100 in two months, an investor would need to invest roughly $12 a week. This would equate to 8 fee-free investments* before the monthly $2 fee kicks in.
Why have we changed the price?
Two principles we’ve always celebrated at Pearler are diversification and simplicity. In other words, we believe a decent platform should give you the option to broaden your investments – whilst being as simple as possible.
However, since we first launched Pearler Micro, we’ve received feedback that the fee structure was confusing. To address this, we’ve moved to a simpler fee structure, which lets all investors pursue multiple funds. This way, we can ensure Pearler Micro’s pricing reflects those two principles.
What else isn’t changing?
After the price changes, you’ll still be able to access all of Pearler Micro’s most beloved features. These include:
- Market-leading autoinvesting tools
- Low minimums
- The choice to invest in any combination of our 10 different investing options
- Our roundup feature, which empowers you to invest the spare change from your everyday purchases
- The ability to view your micro-investments alongside ASX or US shares
- Access to Pearler’s community and educational resources
- Some of the lowest micro-investing fees around
What else is changing?
Two other details – neither of which will impact your Pearler Micro experience. Firstly, we’re changing the names of the 10 funds we offer through Pearler Micro. While the funds themselves will do what they’ve always done, we’ve given them names which more directly reflect what they’re about.
We’ve listed the current names below, as well as their new versions:
- Diversify and Chill to become All In One
- Aussie + Global to become Entire World
- An American Buffet to become USA
- Aussie Large ESG Companies to become Australian (ESG)
- Aussie + Global ESG to become Entire World (ESG)
- Aussie Large Companies to become Australian
- Global Large Companies to become Overseas
- Better Future to become AU/NZ (EGS)
- Global Large ESG Companies to become Overseas (ESG)
- Battery Tech to remain Battery Tech (because we feel the current title is pretty self-explanatory)
The second change is more of an administrative one, and relates to our Responsible Entity. As part of a way to simplify the operation of Pearler Micro, we're switching from Melbourne Securities Corporation Limited (ACN 160 326 545 AFSL 428 289) to Cache (RE Services) Ltd (ACN 616 465 671, AFSL 494 886). You can view the TMD and the new PDS here.
The change won't impact the product in any way, and Pearler Micro will continue to function as it always has. A key reason for the change is to allow us to create more educational content and other resources to support your investing journey.
Have any questions about this price change (or anything else)? We’d love to chat! Simply reach out to us at help@pearler.com.
Happy investing!
Hayden
*Other fees and costs may apply
