The Best Robo Advisor in Canada: 2023 Ultimate Guide to Automated Online Investing

2. RBC InvestEase Robo Advisor

Best robo advisor Canada has for: Canadian investors who are already RBC customers or those looking for an effortless way to invest. 

Company Overview:

Another robo advisor Canada has from a big bank is RBC InvestEase. It was unveiled to all RBC (Royal Bank) customers in 2018. It is an easy option for investors, and now RBC has a partnership with BlackRock to create RBC iShares. 

This partnership has made RBC the largest provider of exchange-traded funds ETFs in the country. This is why this robo advisor’s portfolios are filled with iShares products. 

Investment Strategy

 RBC InvestEase has two primary portfolio types: standard and responsible investing. However, each portfolio has five programs within it that match different risk tolerance levels. They both use three bonds and four equity ETFs from iShares. 

The standard portfolio type’s equity portion invests in traditional regional products holding stocks in Canada, Europe, the U.S., and emerging markets. The responsible investing portfolios, on the other hand, use ESG MSCI funds. 

RBC also rebalances portfolios during the year like other robo advisors. 

Fees

• No minimum account size, although money is only invested when your balance reaches $100.
• 0.5% on all amount invested

Pros

• Average ETF MERs is 0.10% to 0.30%.
• Security and Reliability: RBC has been in business for more than 150 years. 
• It offers automatic contributions
• 0.50% management fee is relatively low compared to what other big bank robo advisors offer.
• You get access to a portfolio advisor if you have any questions.
• It supports TFSAs, RRSPs, etc. 

Cons

• You have to pay $135 to transfer to another financial institution.
• There’s no fee break for bigger portfolio balances.

SEE >> RBC InvestEasse Robo-Advisor Review

3. CI Direct Investing (formerly WealthBar)

Best Robo Advisor Canada has for: Investors who want flexibility, more choice, and different ways to diversity. 

Company Overview

Chris and Tea Nicola founded CI Direct Investing, and they called it WealthBar. They are the son and daughter-in-law of John Nicola, a popular money manager who established Vancouver’s Nicola Wealth Management. 

CI Financial Group became a significant owner in the company in January 2019, and this partnership has opened up access to new investment opportunities. One thing that sets it apart from any other robo advisor in Canada is that its offerings are a core element of financial advice.

CI Direct Investing integrates a more hybrid active-passive model, with portfolio managers developing its funds, which are majorly based on ETFs.

Investment Strategy

CI Direct Investing offers two portfolio types: private investment portfolios and low-cost ETF portfolios. A low-cost ETF portfolio is similar to what other robo advisors provide. It has five portfolios ranging from conservative to aggressive, including ETFs from Vanguard, Horizons ETFs, BMO, iShares, and CI First Asset. 

On the other hand, the private investment portfolios comprise three portfolios that are made up of Nicola Wealth Management mutual funds. These funds are invested in private equity, alternative strategies, mortgages, and other traditional and non-traditional investments.

Fees:

• The minimum deposit is $1,000.
• Investments under $150,000 attract 0.6%.
• Investments above $350,000 and below  $500,000 attract 0.4%.
• Investments above $500,000 attract 0.35%.
• You can get up to $10,000 managed free for one year when you sign up and fund your account.

Pros

• You will be designated a non-commission financial planner to advise you. It also has financial planning tools to help you create as many financial plans as you want.
• The automatic rebalancing feature makes investment easier.
• You can select between actively managed portfolios and ETF portfolios.
• MER for ETF Portfolios lies in the 0.26% to 0.34% range.
• The partnership with Nicola Wealth Management provides CI Direct Investing with access to private investment pools.

Cons

• It requires a $1,000 minimum investment.
• The management fee can be reduced.

4. BMO Smartfolio Robo Advisor

Best Robo Advisor Canada has for: Investors looking for a combination of passive and active management and those who want the safety of investing with a famous name.

Company Overview

BMO launched its Smartfolio in 2016, and they were the first big bank to launch a robo advisor. The Smartfolio uses ETFs as well as real-life fund managers from its huge investing arm (the BMO Global Asset Management). 

Although it is open to everyone, most people who use BMO Smartfolio were already BMO banking clients. BMO products have a strong reputation, which backs the Smartfolio as well.

Investment Strategy

When you sign up, you will be asked a few risk tolerance questions. The company will then use your answers to determine which one of its five model portfolios matches you. The portfolios vary greatly regarding asset mix. 

For example, the BMO capital preservation portfolio has a 90% allocation to fixed income and a 10% allocation to equities. Its Equity Growth option’s weight is 90% stocks and 10% bonds. Each portfolio contains a basket of BMO ETFs. 

You can easily change your asset mix; just inform them when a major life event happens, like a remarkable job change, children’s arrival, and more. These changes in your situation will need a shift in your investing approach. If the managers see the need for different asset class exposures, they will adjust their five portfolios.   

The MERs for CI’s Private Investment Portfolios are 1.0% for Safety, 1.55% for Balanced, and 1.40% for Aggressive.

Fees:

• First $100,000 investment attracts 0.7% annual fee.
• Next $150,000 attracts 0.6%
• Next $250,000 attracts 0.5%
• Investments above $500,000 attracts 0.4%

Pros

• Security. It is supported by one of Canada’s big five banks.
• Portfolio rebalancing every quarter.
• The customer service is excellent.
• BMO ETFs are used to design portfolios.
• ETF MER is in the 0.20% to 0.35% range.

Cons

• It is one of the costliest robo advisors, with fees ranging from 0.40% to 0.70%.
• It can only be managed actively. 
• It requires a $1,000 minimum initial investment.

5. Questwealth Robo Advisor (formerly Questrade IQ)

Best Robo Advisor Canada has for investors who want extremely low fees and a discount brokerage to use for individual stock picking.

Questwealth, previously known as Portfolio IQ, is the robo-advisor arm of Questrade. Launched in 2018, Questwealth has one of the lowest management fees in Canada among robo-advisors.

Company Overview

Questwealth Portfolios is the robo advisor branch of Questrade. Questrade is an online discount brokerage that has been offering Canadians low-cost online investment solutions since 1999.  

Questwealth was formerly known as Portfolio IQ, but it was rebranded to Questwealth Portfolios in 2018, and this change came with reduced fees. The fastest-growing robo advisor Canada has, with more than 30,000 new account sign-ups last year.

Investment Strategy

Questwealth has five actively managed ETF portfolios where it puts investors. The funds hold several brand name investments such as Wisdom Tree, SPDR, and iShares. One great thing about using Questwealth is that it offers more investment account types than many other robo advisors with socially responsible investment options. 

The account types include RRSPs, spousal RRSPs, RESPs, TFSAs, LIRAs, and many other non-registered and registered accounts. 

Fees

• The minimum account size is $1,000
• Investments between $1,000 to $99,999 – 0.25%
• Investments above $100,000 – 0.2%

Pros

• One of the lowest fees in the industry, ranging from 0.20% to 0.25%.
• Questwealth uses an active portfolio management style.
• You can link your friends and family accounts to benefit from the lower fees.
• No minimum initial investment
• Wuestrrade has been around for more than 20 years, so they are credible.
• Your investments are protected for up to $11 million.
• The average ETF MER is 0.19%.

Cons

• It does not comply with traditional passive investing concepts, so it can only be actively managed. 

6. Justwealth

Best robo advisor Canada has for: Canadian Investors with specific investment requirements and want more investment options.

Company Overview

Justwealth is a Toronto-based company co-founded by Andrew Kirkland and James Gauthier in 2016. It portrays itself as a more sophisticated robo. Unlike the average robo-advisor Canada has, Justwealth boasts an array of more than 60 portfolio options from which they select which one suits your investment objectives. 

Clients also get a personal portfolio manager who helps find the right ETF portfolios tailored to their specific financial goals. Justwealth also offers several accounts, including RRSPs, TFSAs, RESPs, RRIFs, and non-taxable accounts. Virtual Brokers, a part of Canada’s BBS Securities, is their custodian.

Investment Strategy

Justwealth offers over 60 portfolios. Some focus on Canadian growth, global growth, income, and education savings. The company utilizes up to 25 ETFs from seven different providers, like Schwab, Vanguard, and iShares. 

It also provides personalized tax-loss harvesting and a “personal portfolio manager.” Your personal portfolio manager oversees your investments, and you can contact him or her directly when you have questions regarding your portfolio. 

Fees

• Investments under $500,000 – 0.5%
• Investments over $500,000 – 0.4%

Pros

• The average ETF MER is 0.20%
• Free financial planning from professional Certified Financial Planners.
• It offers over 70 different portfolio options, including target date RESP portfolios. 
• They also provide USD investment accounts.
• Automatic rebalancing
• Justwealth offers a free detailed professional portfolio review so you can see where to improve your performance and savings.
• RESPs less than $6,000 get a $2.50 RESP account pricing.

Cons

• The minimum initial investment is $5,000.
• User experience on Justwealth is not as sleek as you’d have with other robo advisors.
• The fees can be improved upon and made lower.

7. Nest Wealth

Best robo advisor Canada has for: Older people who want a straightforward, low-risk passive investment approach. 

Company Overview

Nest Wealth came out in 2014 and has since been one of the leading robo advisors in Canada. It creates personalized investment solutions with smart technology, bringing you closer to realizing your financial goals. 

NestWealth believes you should invest your money in multiple asset classes and across several industries so you can stay safe and get maximum benefits. All NestWealth investments have Nest Wealth’s automatic balancing feature so the app can diversify your portfolio. The result for you will be better returns and lower risks.

Investment Strategy

The company uses several industry-standard ETFs from Vanguard, iShares, and BMO. Then they allocate your dollars across six asset classes, including emerging market, domestic equities, international equities, the government fixed income, and real return bonds and real estate. Your risk tolerance determines where you’ll be allocated. 

Fees

• No minimum account size.
• $0 to $75,000 investment – $20 per month.
• $75,000 to $150,000 investment – $40 per month.
• $150,000 plus – $80 per month.

Pros

• It offers users a low-risk investment.
• It is easy to use and simple to understand.
• You pay the same monthly fee even when your assets grow.
• Companies can use NestWealth to improve their employee benefits offerings.
• It allows advisors to spend less time investing and focus on planning.
• $0 minimum deposit.

Cons

 It’s not a good fit for small investors whose returns are not high enough for a $20 monthly charge.

8. Invisor

Best robo advisor Canada has for: Investors looking for a single shop for both investment and insurance.

Company Overview

Invisor is operated by Alliance Insurance & Financial Services Inc. It works a little differently from other robo advisors. Users are asked to input their financial goals. Then they are put in one of their seven ETF portfolios, ranging from Safety (lowest risk portfolio) to All Equity (highest risk portfolio). 

It also offers clients easy access to insurance products, like life insurance, critical illness, disability, and travel. Professional advisors are also on the ground to answer investing-related questions.

Investment Strategy

Professional managers coordinate the company’s seven portfolios. Although they also possess passive ETFs from iShares and Vanguard, experienced managers coordinate the company’s seven portfolios. Your risk tolerance determines asset mix and geographic exposure. 

Fees

• No minimum account size. However, deposits will be held in cash until the account reaches $1,000.
• 0.50% management fee on all investments.
• 0.2% MER (management expense ratio) on portfolio’s securities.

Pros

• Individual accounts are CIPF insured for up to $1,000,000. 
• It is a one-stop shop for insurance and investment, which is advantageous for people who want their financial products in one place.

Cons

• There’s no dedicated portfolio manager.

9. Modern Advisor

Best robo advisor Canada has for: Investors who want to cut down their management fees to the bare minimum with a passive investment approach.

Company Overview

Modern Advisor is one of the oldest robo advisors in Canada. It was established in 2013. The Credential Qtrade Securities Inc holds any money you invest with Modern Advisor. It safeguards more than $20 billion for financial institutions across Canada and is also a member of CIPF, so your money is safe.

Fees

• No management fee on investments under $10,000
• 0.50% on investments between $10,000 to $100,000
• 0.40% on investments between $100,000 to $500,000
• 0.35% on investments above $500,000

Pros

• $0 minimum initial investment
• Competitive fees ranging from 0.35% – 0.50%.
• It is registered as a Restricted Portfolio Manager, so they have to put your best interests first.
• They have all the standard investment accounts available including TFSA, RRSP, and non-registered accounts.

Cons

• Although there is no minimum account size, you need at least $1,000 for your money to be converted from cash to investments.
• It is not a popular name.