A robo-advisor builds a diversified ETF portfolio from your answers to a risk questionnaire, then rebalances it and reinvests dividends automatically, for an annual fee. This page compares the robo-advisors available to Canadians on fee, minimum and features, and explains how to decide between them. Everything here is about managed accounts; if you would rather pick your own investments, the online broker comparison covers self-directed platforms.
Canadian robo-advisors compared
Management fees are a percentage of your balance each year. The ETFs in the portfolio charge their own management expense ratio (MER) on top.
| Robo-advisor | Annual management fee | Minimum to open | Notes |
|---|---|---|---|
| Wealthsimple managed investing | 0.5% (Core); 0.4% (Premium, $100,000+ in total Wealthsimple assets); 0.2% to 0.4% (Generation, $500,000+) | None listed | Tier is set by all your Wealthsimple assets combined |
| Questwealth Portfolios (Questrade) | 0.25%; 0.20% from $100,000 | Confirm with Questrade | Fee schedule starts at a $250 balance |
| Justwealth | 0.50% (Justwealth’s own example at $100,000) | $5,000; none for RESP, FHSA and RDSP | Minimum fee $4.99 a month; RESP target-date portfolios |
| CI Direct Investing | 0.60% on the first $150,000, 0.40% on the next $350,000, 0.35% above $500,000 | Invested from a minimum balance as low as $100 | Fee applies in layers, like tax brackets |
| RBC InvestEase | 0.50% | Invested once the balance reaches $100 | Built from ETFs with a weighted-average MER of 0.12% to 0.25% |
Two fee structures are worth telling apart. Questwealth and Wealthsimple apply a single rate to your whole balance once you reach a threshold. CI Direct Investing charges each layer of your balance at its own rate, so on $200,000 the first $150,000 is charged 0.60% and only the remaining $50,000 is charged 0.40%. For the dollar cost of each provider at $10,000 through $500,000, and how to add the ETF fees, see the robo-advisor fee comparison by balance.
What the management fee costs in dollars
The fee is charged every year on the whole managed balance, so the dollar amount grows with the account.
| Balance | Questwealth | Wealthsimple (Core or Premium) | Justwealth |
|---|---|---|---|
| $25,000 | $63 | $125 | $125 |
| $50,000 | $125 | $250 | $250 |
| $150,000 | $300 | $600 | $750 |
The $150,000 row assumes that account is your whole Wealthsimple balance, which puts it in the Premium tier. Justwealth’s rate is taken from its published $100,000 example; confirm the rate for your balance with Justwealth.
How a robo-advisor works
- Questionnaire. You answer questions about your goal, time horizon and how you would react to a market drop.
- Portfolio. The robo-advisor assigns a mix of ETFs, from mostly bonds (conservative) to all stocks (aggressive).
- Deposits. You fund the account once or set up recurring contributions, inside a TFSA, RRSP, FHSA, RESP or non-registered account.
- Ongoing management. New money is invested, dividends are reinvested and the portfolio is rebalanced back to its target mix, with no trades placed by you.
Most providers also offer socially responsible (ESG) portfolios. Justwealth’s RESP portfolios are built around the year a child is expected to start post-secondary school and become more conservative as that year approaches.
Choosing between them
- Smallest balances: a flat minimum fee or an account minimum matters more than the percentage. Justwealth’s $4.99 monthly minimum is a larger share of a small account than of a large one, and Wealthsimple lists no minimum.
- Larger balances: compare the rate that applies at your balance, and whether it applies to the whole balance or only above a breakpoint.
- Family RESPs: look at whether the RESP portfolio adjusts automatically as the child ages. The Wealthsimple vs Justwealth comparison works through this case.
- Wanting a person to talk to: some providers include access to a portfolio manager; Wealthsimple vs CI Direct Investing compares the advice each includes.
- Already at a broker: Questwealth sits inside a Questrade login and Wealthsimple’s managed accounts sit beside Wealthsimple Trade, which makes moving between managed and self-directed investing simpler. Wealthsimple vs Questwealth compares those two directly.
Robo-advisor, do-it-yourself ETFs or a financial advisor
A robo-advisor costs more than buying an all-in-one ETF yourself and less than a traditional advisor who sells mutual funds. The DIY route saves the management fee but leaves rebalancing and staying invested through downturns to you; robo-advisor vs building your own ETF portfolio puts numbers on that trade-off. For the three-way choice that includes a human advisor, see robo-advisor vs financial advisor vs DIY.
Tax-loss harvesting
Tax-loss harvesting means selling an investment that has fallen in value to realise a capital loss, and buying a similar (not identical) fund so the portfolio stays invested. The loss can offset capital gains. It only helps in a non-registered account, since gains in a TFSA, RRSP or FHSA are already sheltered, and it has to respect the CRA’s superficial loss rule. Which robo-advisors offer it, and at which tiers, changes over time, so confirm it with the provider if you invest outside registered accounts.
Are robo-advisors safe?
Robo-advisors in Canada are registered portfolio managers overseen by provincial securities regulators, and your investments are held in your name by a custodian. When the custodian is a member of the Canadian Investor Protection Fund, CIPF protects client property up to $1,000,000 per account category if that firm becomes insolvent. The risk that remains is market risk: a portfolio that is mostly stocks will fall in a downturn, and no protection fund covers that.
Switching robo-advisors
A transfer between providers is started by the receiving firm. ETF holdings may move in kind or be sold and moved as cash, depending on whether the new provider uses the same funds; inside registered accounts neither triggers tax. The provider you leave may charge a transfer-out fee, which some receiving firms reimburse for qualifying balances; confirm the current offer first.
Sources
The figures and rules on this page come from these sources. How we check facts.
- cifinancial.com: Investment Account Pricing | CI Direct Investing
- questrade.com: Questwealth Portfolios | Questrade
- wealthsimple.com: Compare Generation, Premium, and Core Plans & Fees | Wealthsimple