Andrew Goldman has been writing for over 20 years and investing for the past 10 years. He currently writes about personal finance and investing for Wealthsimple. Andrew's past work has been published in The New York Times Magazine, Bloomberg Businessweek, New York Magazine and Wired. Television appearances include NBC's Today show as well as Fox News. Andrew holds a Bachelor of Arts (English) from the University of Texas. He and his wife Robin live in Westport, Connecticut with their two boys and a Bedlington terrier. In his spare time, he hosts “The Originals" podcast.
Even the most traditional investment management firms use algorithms to help them advise clients and balance portfolios. What robo-advising does is make that kind of automation available to the consumer directly. Because of the minimal involvement of humans, the cost of a robo-advisor is typically less expensive than a brick-and-mortar bank. Robo-advisors have become an increasingly popular way to manage personal finances and investments in Canada. It can be an affordable choice, too. Some have no account minimum. That means you can get started investing with as little as $1.
In this guide, we’ll explain robo investing, break down the best robo advisors in Canada, and help you choose an investing partner that meets your needs.
What’s a robo advisor?
A robo-advisor is a service that uses sophisticated software (and often real people, too) to decide what types of investments you should be making and then to tinker with those investments as time goes on. The best robo advisors in Canada normally invest money in broad portions of the stock market as opposed to an individual choosing the stocks to buy and sell by themselves.
Which robo-advisor is the best? That depends on your needs and goals. Perks like socially responsible investing and automatic rebalancing or more control over asset allocations might be more important to some. Fees and access to a financial advisor may be more important to others.
About Canadian robo-advisors
Robo-advisors were first introduced in Canada in 2014. Since then, more and more have launched in the country. Even brick-and-mortar banks have introduced automated investing products to compete with robo-advisors. Today, Canadians have 14 automated investing services to choose from.
In Canada, some robo-advisors register as portfolio managers. This means they’re bound by fiduciary standards—they have to put clients’ interests ahead of their own.
Others register with the Investment Industry Regulatory Organization of Canada (IIROC) and follow suitability obligations like disclosing investing risks to their clients. Many are members of the Canadian Investor Protection Fund (CIPF), which protects account assets for up to a million dollars against insolvency.
Canadian robo-advisors have received tens of millions of dollars in funding since their inception. A lot of U.S. robo-advisors do not operate in Canada, including Betterment, Wealthfront, the app-based Acorns, Robinhood, and Ellevest. Here’s some information about the best robo advisors in Canada.
Wealthsimple is an online investment manager that combines smart technology with expert financial advice. We allow you to put your money in a managed portfolio (Wealthsimple Invest), do self-directed trading (Wealthsimple Trade), or put your money in a high-interest hybrid savings/checking account (Wealthsimple Cash). We’ve been in business since 2014, and have over $4 billion in assets under management.
Nest Wealth is a wealth management company that provides investors with a “smarter, quicker way to reach their financial goals.” They make investing easy for clients by using smarter technology and proven investment principles. It was founded in 2014.
WealthBar is a registered portfolio manager in all provinces in Canada and a life insurance agent in British Columbia and Ontario. The company says it offers premium online investing without the premium price. It has over $275 million in assets under management.
Justwealth is an online portfolio management platform that offers exchange-traded funds to meet a variety of investment goals and risk tolerances. Each Just Wealth client works with a portfolio manager to determine which of the 70+ portfolio options they offer will work best for the client.
ModernAdvisor is an online investment manager that offers passive investing options with low management fees. It believes in offering cost-effective solutions for every level of income, with low cost exchange-traded funds. It offers passive investing options with low management fees. It’s registered as a portfolio manager in every province in Canada, plus the Northwest Territories.
BMO Smartfolio is the Bank of Montreal (BMO)'s robo-advisor. Established in 1817. BMO has approximately $617B assets under management. The Smartfolio product was the first online portfolio management product to be launched by one of Canada’s big banks.
RBC InvestEase is an online investment management service backed by Royal Bank of Canada. In terms of market capitalization, RBC is the biggest bank in Canada. It provides you with an investment plan based on your answers to a short questionnaire and invests your money in ETFs.
Core feature comparison (automated investing) of the best robo advisors in Canada
It’s worth spending some time sorting through the features, pricing, and the minimum investment of robo-advisors in Canada to find the best one for your individual needs.
|Features||Wealthsimple Invest||Nest Wealth||WealthBar||Justwealth||ModernAdvisor||BMO Smartfolio|
|Overall Rating (SavvynewCanadians.com)||4.9/5||4.7/5||4.7/5||4.6/5||4.6/5||4.5/5|
|Social Responsible Investing||Yes||No||Yes||No||Yes||No|
|Halal Investing||Yes||No||Yes, but only for clients with a minimum of $100,000||No||No||No|
|Minimum Balance to Start Investing||None ()||None||$1,000||$5000 minimum on all accounts aside from RESPs.||$1,000||$1,000|
|Management Fees||0.5% on $0-$100k and 0.4% for amounts over $100k.||$20 per month for under $75k, $40 per month for $75-$150k and $80 per month for $150k and above.||0.6% on the first $150,000, 0.4% on the next $350,000 and 0.35% above $500,000.||0.50% on $0-$500K, 0.40% on investments over $500K. There is a minimum fee of $2.50 per month charged on RESPs with a balance under $25K.||ModernAdvisor Digital fees are as follows: free for 0-$10K, 0.50% on $10K-$100K, 0.40% on $100-$500K and 0.35% on $500K-$1M. ModernAdvisor Personal fees are as follows: 0.89% on 0-$500K, 0.79% on the next $2M, .69% on the next $2.5M and .49% for investments over $5M. While there is no minimum fee charged on the ModernAdvisor Digital plan, there's a minimum $75/month charge on the ModernAdvisor Personal plan.||The fees are 0.7% on 0-$100K, 0.6% on next $150K, 0.5% on next $250K and 0.4% on $500K and above. In addition, you will be charged $5 per statement for paper statements, $25 per withdrawal for RRSP/RESP withdrawals (not TFSA or RRIF) and $100 for full closure of RRSP or RESP (not TFSA/RRIF)|
|Transfer Fees (to another financial institution)||No||No||No||Yes (a fee of $50 for a partial transfer to another financial institution or $150 for a full transfer out will be charged.)||ModernAdvisor does not charge a fee to transfer an account out but their Custodian, Credential does charge a fee.||Yes ($135 )|
|Financial Advice/Portfolio Review||Yes||Yes||Yes||Yes||Yes (at no extra cost on the ModernAdvisor Personal plan but for a fee of $125 per hour on the ModernAdvisor Digital plan.)||Yes|
|Additional Information||Get Started||Wealthsimple vs NestWealth||Weathsimple vs Wealthbar||Wealthsimple vs JustWealth||Wealthsimple vs ModernAdvisor||Wealthsimple vs BMO Smartfolio|
Comparison of accounts offered (automated investing) by the best robo-advisors in Canada
Looking for tax-advantaged accounts, the option to manage different types of retirement accounts simultaneously, non-registered accounts, or retirement plans that'll cover you and your family? Here's a list of the accounts that Wealthsimple Invest, Nest Wealth, Wealthbar, JustWealth, ModernAdvisor, and BMO Smartfolio offer as part of their managed portfolios.
|Accounts Offered||Wealthsimple Invest||Nest Wealth||WealthBar||JustWealth||ModernAdvisor||BMO Smartfolio|
|LIF||Yes||Yes||Yes||Yes||No||No (plans to add in the future)|
|LIRA||Yes||Yes||Yes||Yes||Yes||No (plans to add in the future)|
|Corporate||Yes||Yes||Yes||Yes||Yes||No (plans to add in the future)|
Benefits of robo-investing in Canada
Robo-advisors offer many benefits. The most obvious one is that robo-advising takes out much of the research, stress, vigilance, and emotions that come with picking stocks and maintaining an investment portfolio yourself. And robo-advisors generally charge a fraction of what traditional mutual fund managers charge in fees.
1. Low-cost portfolios
Robo-advisors tend to use exchange-traded funds (ETFs) that feature lower fees than mutual funds. ETFs are cheaper than mutual funds because few humans are required to manage your investments. That means that ETF portfolios managed by robo-advisors will usually have lower management expense ratios (MERs) and will often pass these savings onto their clients.
In Canada, you can expect to pay between 0.40-1% in fees for a robo-advisor. That’s much less than the 2.09% fees that traditional mutual fund investors pay. Beyond that, the only other fee you need to know about is expense ratios—small fees for maintaining the ETFs in your portfolio. Many robo-advisors don’t charge a commission on trades—another benefit that helps them achieve their low cost.
Fees eat into your investment gains, which is why it’s important to keep them as low as possible. Robo-advisors are known for having low account minimums, unlike actively managed portfolios that generally require a high minimum investment to get started. Some robo-advisors have no account minimum at all. This means you can get started with as little as $1 as your minimum investment.
All you need to get started is to answer some questions about your financial goals, income, and risk tolerance, and then link your bank account.
And thanks to the algorithm inherent in the robo-advisor’s mechanism, you don’t have to pick out stocks yourself or learn how to build a diversified portfolio. The platform will create a personalized portfolio for you. There’s no need to monitor the market and figure out where to invest your money.
3. Access to a financial advisor
Robo-advisors all have 24/7 accessibility, and some provide access to a financial advisor, who can help you set investing goals and provide helpful financial advice about investing, retirement, or other life events. They may even be able to provide you with a full financial plan. Robo-advisors may charge extra for access to financial advisors or include it in the base fee.
How robo-advisors work
Robo-advisors use an algorithm to automate the investment process. They generally create an investment portfolio that’s broadly spread out across the entire market. This ensures diversification, which iis beneficial because if one of your investments goes sour, it doesn’t drag down your entire investment portfolio.
Robo-advisors focus on passive investing, which aims to build wealth gradually over time. They mirror the market rather than actively try to beat it. Studies have shown that in the long run, passive investing has provided considerably better returns compared to actively managed portfolios. However, it’s always important to remember past performance does not equal future results, and, as with any investing approach, there’s always a risk you could lose money.
Robo-investing (sometimes called robo-trading) is designed for long-term investing. To potentially reap the rewards of robo-investing, plan to let your investments grow for at least four to five years or more. Robo-investing could be ideal if you’re saving for a down payment you intend to put down in ten years or your retirement thirty years from now. If you need access to your money in the short term to pay bills, a savings investment account may be a better option rather than investing.
Although robo-advisors are a cost-effective and accessible way to start investing, they charge a small fee on your investments in order to operate. Some robo-advisors charge a flat rate but often the fee is a percentage of the amount you invest, also known as “assets under management”(AUM).
The investment companies behind the algorithms are still operated by real people. Many robo-advisors are members of the Canadian Investor Protection Fund (CIPF). This means that your investments are protected from insolvency up to $1,000,000.
Robo-advisors vs. human advisors vs. self-directed investing in Canada
If you have a complicated tax situation or a high net worth then it might be worth finding a human financial advisor. Despite the higher fees, a financial advisor will create a full financial plan for you.
For example, if you’re planning your retirement, a divorce, or home ownership, then a human financial advisor can give you specific guidance on your situation. They may even tell you “Yes, building a deck this spring would not be irresponsible.” or “No, selling your Air Jordan collection doesn’t seem necessary!”
If you’re looking to pay lower fees and invest without having to do tons of research and portfolio maintenance, then a robo-advisor might be a prudent choice. Some robo-advisors offer a hybrid approach, giving you access to a financial advisor as well as a personalized investment portfolio.
This may be a smart option if you want to save on fees but still want some support from an advisor.
If you want to get your hands dirty, then a self-directed approach (a.k.a. stock picking) might be right for you. Though you should know that stock picking is very risky and studies show many people who pick individual stocks fail to outperform the market.
|Feature||Robo-Advisors||Human Financial AdvisorsSelf-Directed/Online Broker||Self-Directed/Online Broker|
|Fees||Typically below 0.5%.||Typically above 1%.||Low fees, normally per trade. Some offer commission-free trading.|
|Human advice||Often comes with human advice and some access to a financial advisor. Some robo-advisors offer a full financial planning service for high net worth clients.||Offer a full financial plan and can provide advice on your specific situation.||No human advice.|
|Most useful for||A hands-free approach to investing - perfect for people who want help with money management.||Useful for people with a high net worth or complicated tax situation.||A DIY approach, you have to pick your own stocks. It's a cheap, no-frills approach to investing.|
|Fiduciary duty when offering advice (putting your interests ahead of their own)||Fiduciary standards are not mandatory. Only robo-advisors that are registered Portfolio Managers have a fiduciary duty. An IIROC registered robo-advisor has a suitability obligation. This means they are required to follow best practices set by IIROC and have a duty to disclose investing risks to clients.||Fiduciary standards are not mandatary. Only licenced advisors or registered portfolio managers are fuduciaries.||No advice offered.|
How to choose the best robo-advisor
Although there are quite a few robo-advisors on the market right now, finding the right one for your needs doesn’t have to be complicated. As long as you keep some things in mind and don’t lose sight of your needs, risk tolerance, and financial goals, you’ll surely find an advisor that fits your requirements. Here are some points to keep in mind:
Understand what’s important to you
This is the most important step. Know what you want to get out of your advisor by visualizing your goals. Are you planning for retirement? Are you trying to build up a nest egg, or perhaps saving for your child’s future? This will determine how aggressive you’ll want your portfolio to be. Are there certain perks, like extended human support, or low fees, that matter to you? Would you like some control over what goes into the portfolio, or are you happy to just sit back and let the algorithm do the work for you? All of these questions will determine the right fit for you.
Do some online research
Once you know what’s important to you, it’s time to check out what’s available. Read all the reviews you can find, look at what people are saying on forums that discuss investing and finance, and look at roundups from trusted financial publications. Once you have a shortlist of contenders that meet your requirements, look at each advisor’s past performance as well, while keeping in mind that it’s not indicative of future results.
Pay attention to account minimums
Choose a provider that makes sense for what you can invest now and in the future. Some investment providers require minimum investments to get started. And, in some cases, you could face nasty penalties for dropping below the account minimum—or be forced to close your account. That’s why it’s worth checking for a provider who’ll help you invest regardless of your account size.
Watch out for hidden fees
Nothing eats away at long-term gains quite like fees. And we’re talking about more than just management fees (though they’re important, too). Account transfers and trading fees can also add up. The best investment providers are upfront with what it costs to invest with them. The best robo-advisors in Canada offer low cost structures for their robo-investing and financial advice.
Look out for human support
When you need to make sense of a mysterious number in your monthly statement, nothing compares to talking to a fellow human. In the competition to offer the lowest possible management fees, some robo-advisors are quick to cut customer support. Before you commit to a provider, see what support is available. You never know when you’ll want it.
Find out if you have access to a financial advisor
No two people are alike—and neither are their financial situations. But investment platforms vary in terms of how much access you get to professional advice. Keep an eye out for providers that offer access to a financial advisor. There are only a few who offer advice when you need it, regardless of how much money you have in your account.
Understand how much freedom you have
Relationships end, even when you’re investing for the long term. Before you commit, find out what happens if you need to withdraw your funds or want to move on to a new investment platform and whether there are any penalties involved. (If you choose to invest with Wealthsimple, know that we don’t charge anything for withdrawals, transferring out, or leaving your account open with a zero balance.)
Check if they’ll rebalance your portfolio
Rebalancing a portfolio is a robo-investing process by which money is moved across your investments to ensure that the performance of your portfolio reflects your original goals, or is adjusted to your new ones. It’s a process that is both necessary and tedious and quite pricey with traditional advisors, so having it included in the services is a plus.
Find out if it does socially responsible investing
For many investors, the type of companies they choose to support is just as important as how well those companies are performing. Some robo-advisors will offer you the option to invest in your values by building a portfolio that reflects the standards of socially responsible investing (SRI). Robo-advisors that offer SRI will invest your money in ETFs from companies that engage in clean energy, companies that focus on sustainable hiring practices, have fair labor practices, or government-backed securities that promote affordable housing.
Some Canadian robo-advisors may even offer services like Halal investing, which builds portfolios out of companies that comply with Islamic law.
If responsible investments are important for you, it’s worth checking what robo-advisors have this option.
Questions to ask perspective robo-advisors
How does the robo-advisor experience compare to the investment experience you had with a traditional bank or brokerage?
While you can’t walk into your robo-advisor’s office, throw down some documents and say, “Help me figure this out,” many offer smart technology and human support to help you along the way. That’s a valuable service when you’re planning for an important life event, such as retirement.
If you are the kind of investor that wants to be able to drive to a physical location, meet your advisor in person and shake their hand, robo-advisors might not be for you. If you want to speak to an advisor by phone from your own home then a robo-advisor with access to a financial advisor could be an ideal option.
The digital connection that robo-advisors offer has been proven extremely effective at helping people overcome financial challenges in the past. Find out how the robo-advisor uses smart technology to manage your investments.
What kind of accounts do they offer?
Any good robo-advisor should make clear the types of accounts they offer right on their homepage. Common accounts offered are RRSPs, TFSAs, RESPs as well as personal and savings accounts.
RRSP: A Registered Retirement Savings Plan is designed to help Canadians save for retirement. The money you contribute is what’s called “pre-tax.” That means that you can subtract the amount you contribute from your income and pay less in income taxes. The best robo-advisors in Canada will also help you maintain your account when it eventually rolls over into a Registered Retirement Income Fund (RRIF).
TFSA: With a Tax-Free Savings Account you can take the money out at any time without paying tax on the money, unlike an RRSP.
RESP: A Registered Education Savings Plan is a tool for people who want to save for their kid’s education. RESP accounts are government-regulated accounts and offer tax-free investment growth.
Personal account: A Personal Account is a non-registered account that allows you to withdraw your money at any time for any reason. Earnings are taxed so you would most likely have this type of account once you’ve maximized the contribution room in your TFSA and RRSP.
Joint account: A joint account is a non-registered account that’s similar to a personal account, except that it has two owners. Joint accounts often make things simpler. No more dividing bills or writing checks to your partner.
What are its fees and pricing?
Every company has its own advisory fee structure. Expense ratios (the total amount of your balance used for account-management purposes) typically range from 0.40% to 1% of the account balance. Some robo-advisors charge a flat fee for certain services, such as retirement account management. Annual fees can be zero for low balances (say, $5,000 or less) but can be thousands for higher balances.
Look out for any “zeros”—as in zero account fees—which can be deceptive. You will be paying for a robo-advisor’s services somehow. So make sure you find out exactly how. It’s important to look at the total cost of managing your portfolio. Any good robo-advisor should be clear and upfront about their fee structure and total costs.
What are the investment options?
What kind of investment approaches does it offer? Does it offer a conservative approach? A growth approach? A balanced approach? Does it offer options for the investor interested in socially responsible investing—an increasingly common way to invest, especially among younger investors.
Although most robo-advisors invest primarily in exchange-traded funds, there are robo-advisors that use more customized approaches that involve buying individual stocks. Does the robo-advisor off this approach?
Another question: Which asset classes are represented by the ETFs the robo-advisor invests in? Stocks, bonds, etc. How many ETFs do portfolios typically contain? Does the robo-adviser offer tax loss harvesting, a feature that uses investment losses to create tax savings?
What are others saying about the robo-advisor?
You can ask friends and family about their experiences with robo-advisors, of course. A more fruitful approach might be reading review sites and social media. Search Twitter for mentions of specific companies. Keep in mind that Twitter searches can be as misleading as they are useful. People tend to air their grievances on Twitter when they are most upset. The format is perfect for desperate pleas. Check the replies on such Tweets. Did the company offer to help solve the customer’s problems?
Read online reviews and compare overall ratings. What do people like or not like? Check Apple App Store reviews, industry trade publication reviews, and blogs. There are dozens of sites that compare robo-advisors in detail—reviewing account fees, expense ratios, and minimum balances. Pay special attention to when the information was published as this is an ever-changing segment of financial planning with new services appearing all the time.
What kind of customer support do they offer?
Who can you talk to if you want advice? Do they have the same credentials/qualifications you would find in the traditional advice channels? Some robo-advisors offer support, and others do not. The question is: Does the robo-advisor have the level of support you need? This is arguably the single most important factor when deciding which robo-advisor you’ll choose. A real person in a real office who (really) wants to help you achieve your financial goals may not be something you need all the time, but if you need it, you really need it.
Get on the phone with your prospective robo-advisor (if that’s possible) and ask how available its human advisors are. The level of service you get during that call could indicate how your interactions with its advisors will be.
Do they offer additional benefits?
Find out if they offer rebalancing, tax loss harvesting, or dividend reinvesting. What about lower fees if you invest more? Are there any perks if you keep your account above a certain amount?
What happens to my investments if the robo-advisor goes under?
While it’s unlikely that your robo-advisor would become insolvent, it is possible. There are guidelines that your robo-advisor must follow that create protections for the company itself. Should the firm fail and they’re part of the (Canadian Investor Protection Fund (CIPF), there are protections in place. Your funds—up to a million dollars—remain your funds.
How transparent do they make investing?
Do they make it easy for you to determine how you’re performing, what you’re paying, what you’re investing in, and how you’re doing with contributions to retirement accounts? Ask to see a sample of this kind of information. Do you understand it? Is it easy to read?
There’s an even simpler way to check for transparency though: by reading the content on their website. Of course, it’s going to be promotional. They want your business, after all. But it should also be infused with a certain frankness. You should get a sense that the robo-advisor has committed to certain investment approaches while eschewing others. You should receive real information right up front. Not just slogans. No matter how guided by algorithms, a robo-advisor should still seek to earn one thing above all else: your trust.
How to get started with a robo-advisor
In keeping with the ethos of simplicity, the best robo-advisors in Canada make signing up incredibly easy. It requires little more than an Internet connection and a clear idea of what kind of services you want.
Sign up: Once you know which robo-advisor you want, start by entering your email and a password that you’ll use to access your account. This is how you’ll enter your account from now on.
Fill out a risk survey: Once you’ve signed up, the robo-advisor will ask you to answer a series of questions, which will help the algorithm create a personalized portfolio and investment strategy for you. The questions will be about your age, average salary, how soon you want to access your money, and your risk tolerance.
Make a transfer: Once you’ve completed the survey and the robo-advisor has created a portfolio for you, it’s time to link your existing bank account to your new robo-advisor account and make a transfer. Some robo-advisors will ask for a minimum deposit, while others will let you deposit as much as you want to start with. Once the money is transferred, the robo-advisor can start investing and managing your money.
Set up regular deposits: In order for your portfolio to work effectively, you’ll have to invest on a regular basis. The easiest way to do this is to set up automatic recurring deposits. Think of it as a way of paying your future self a set amount every month. You can always go into your account to adjust as needed.
Why is Wealthsimple one of the best robo-advisors in Canada?
If you’re not already convinced about choosing Wealthsimple as your robo-advisor, here’s a few reasons why you should start investing with us.
We do the work for you
Using Wealthsimple is, well, simple. In just a few minutes, we’ll build you a custom portfolio that makes sense for your risk tolerance and investment timelines. And we’ll do the maintenance for you, with automatic rebalancing and dividend reinvesting. All you have to do to get started is answer a few simple questions.
No account minimums & low fees
We prefer low cost fees. We’re the first investment company in Canada to eliminate account minimums. That means you can start investing with as little as a dollar. Our fees are also low. We charge 0.5% on 0-$100,000 and 0.4% on anything above $100,000. Plus, you can make a withdrawal any time you want. So you can always count on your money being there when you need it.
You’ll have access to our friendly advisors for financial advice regardless of how much you invest. They’re standing by to answer your questions and provide support whenever you need it. All you have to do is drop us a line by phone, email, or even Skype.Get a $50 cash bonus when you sign up to Wealthsimple Invest. Start with as little as a dollar and we’ll build you a personalized investment portfolio to grow your wealth.
More than 175,000 people love using Wealthsimple
Thousands of people think Wealthsimple is one of the best robo-advisors in Canada. See the reviews for yourself:
123K ratings Apple app store
2019 Top Robo Advisor (NerdWallet)
5 Stars - Simple.Thrifty.Living
Ready to give us a shot?
Put your money to work in a smart portfolio, designed to help you get closer to your financial goals. Start investing now with one of the best robo-advisors in Canada and get access to our state-of-the-art technology, low fees, and access to advice from real humans whenever you need it.
The information on this page was compiled by Wealthsimple in November 2019. In order to uncover competitor information, we looked at our competitors' websites, press releases, and third-party sites. The information collected relates to features, accounts, and pricing. The guide is only intended for Canadian investors. It's important to note that the general information within this guide is not specific to your personal situation.
Frequently Asked Questions
The best robo-advisors use technology to build an investment strategy that meets your specific needs, and then rebalance your portfolio over time so it’s always aiming for your target. Wealthsimple is one of the top performing robo-investors. Our returns are extremely competitive, and we charge some of the lowest fees of all the services for automated investing in Canada.
The type of investing partner that’s right for you depends on your financial situation and your needs. For most investors, robo-investing is a smart solution because it automates the work that a human would normally do for less cost. That said, a human advisor may be preferable if you have a unique financial situation that requires a special plan or if you consider yourself an emotional investor who needs an advisor to convince you to stay in the game during an inevitable downturn.
You can invest as much or as little as you like with a Canadian robo-advisor, provided you meet your robo-advisor’s minimum investment amount. Some robo-advisors have minimum investment requirements as high as $5,000, while others—like Wealthsimple—have no requirements. Furthermore, you should plan to continue investing consistently by making regular deposits.
Choosing an investment partner from the best robo-advisors that’s right for your needs requires you to consider your financial situation carefully, perform some basic online research, and investigate each candidate’s minimum investment amount, fees, level of human support, accounts offered (tax-advantaged and non-registered accounts), and other features. It's important to choose an advisor that offers a product that meets your investing and risk tolerance needs. For automated investing in Canada, we encourage you to look into Wealthsimple Invest as well as Wealthsimple’s competitors.
Robo-investing can beat financial advisors, especially if you have simple needs, though it depends on many factors. Keep in mind that robo-advisors (including many Wealthsimple competitors) offer significantly lower fees than human financial advisors, which means you get to keep more of your money to invest. Over time, this extra principle can create serious gains.
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