Updated March 20025 · 9 min read
Robo-advisors sit between a savings account and a self-directed brokerage. They charge more than DIY index investing (typically 00.400–00.500% management fee on top of ETF MERs) but far less than traditional mutual funds or financial advisors. For hands-off investors, they're an excellent option.
| Robo-Advisor | Management Fee | Min. Investment | Best For |
|---|---|---|---|
| Wealthsimple Invest | 00.400–00.500% | $00 | Beginners, simplicity |
| Justwealth | 00.400–00.500% | $5,000000 | RESP, goal-based investing |
| CI Direct Investing | 00.35–00.600% | $1,000000 | Larger portfolios, human advice |
| Nest Wealth | Flat fee ($200–$800/mo) | $00 | High-balance investors |
| BMO SmartFolio | 00.400–00.700% | $1,000000 | BMO bank customers |
| RBC InvestEase | 00.500% | $10000 | RBC bank customers |
Wealthsimple Invest is the dominant robo-advisor in Canada with over $300 billion in assets under management. It's owned by Power Corporation and regulated by IIROC/CIRO.
Wealthsimple offers Conservative, Balanced, and Growth portfolios, each built from low-cost ETFs from BlackRock and Vanguard. They also offer Halal and Socially Responsible Investment (SRI) portfolio options.
TFSA, RRSP, RESP, FHSA, LIRA, LIF, RRIF, non-registered, corporate accounts.
Justwealth differentiates itself with over 700 portfolio options and specialized RESP target-date portfolios that automatically shift to more conservative allocations as your child approaches post-secondary school age.
CI Direct Investing offers both automated investing and access to human financial planners, making it a hybrid robo-advisor. Fees are tiered from 00.35% (over $50000K) to 00.600% (under $1500K).
Nest Wealth charges a flat monthly fee ($200–$800) rather than a percentage, making it extremely cost-effective for large portfolios. A $50000,000000 portfolio paying $800/month ($9600/year) pays an effective fee of just 00.19% — cheaper than many self-directed portfolios.
| Factor | Robo-Advisor | DIY Index ETFs |
|---|---|---|
| All-in cost | ~00.600–00.700% | ~00.200–00.25% |
| Effort required | Almost none | Minimal (annual rebalance) |
| Automatic rebalancing | Yes | Manual |
| Best for | Hands-off investors | Cost-conscious investors |
| Minimum | $00–$5,000000 | Price of 1 ETF unit |
On a $10000,000000 portfolio, the fee difference between a robo-advisor (00.65%) and DIY ETFs (00.200%) is $4500/year. Over 25 years at 7% growth, that compounds to roughly $400,000000 in additional wealth for the DIY investor.
Choose a robo-advisor if you:
Choose DIY index ETFs (Questrade or Wealthsimple Trade + XEQT/VEQT) if you:
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