The 10 Best Robo-Advisors in Canada for 2024

Are you searching for the perfect solution to navigate the complex world of finance? Ready to improve your investment strategy and unlock your financial potential? Well, look no further than the best robo-advisors in Canada!

Now, I know what you might think: “Can a computer program really manage my investments better than a human?” Trust me; I had the same skepticism. But let me tell you, my journey with robo-advisors has been nothing short of extraordinary.

These digital investment platforms have taken the financial world by storm, offering a cost-effective and hassle-free approach to building wealth. And let me tell you, they deliver results! But with so many options out there, finding the right robo-advisor can be overwhelming. That’s where I come in.

In this article, I’ll unveil the ten best robo-advisors in Canada. Drawing from my own experiences and insights from others, I’ll dive deep into the nitty-gritty details of each platform, from investment options and management fees to reliability and ease of use.

Prepare to embark on a thrilling journey to financial success, where your investments work smarter, not harder. Together, we’ll explore the best robo-advisors in Canada and unlock the secrets to maximising your wealth-building potential.

10 Best Robo Advisors in Canada for 2024

Why bother with the hassle of traditional investment options when you can let technology do the heavy lifting for you? 

Robo-advisors are the future of wealth management, offering a cost-effective and efficient way to grow your money. And here’s the kicker: they eliminate human errors and significantly reduce investment costs compared to traditional mutual funds.

So, join me as I explore the top-notch robo-advisors in Canada. I’ll take you through these platforms’ key features, pros and cons.

Whether you’re a seasoned investor or just starting out, this guide will equip you with the knowledge you need to make informed investment decisions.

1. Best for Beginners: Wealthsimple

• Management Fees: 0.4 or 0.5% annually
• MER: Approx. 0.4%- 0.5% annually
• Account Types: TFSA, RRSP, RESP, Cash, RRIF, LIF, LIRA, Halal, SRI
• Minimum Balance: None

Wealthsimple is the leading robo advisor in Canada, managing over CAD 9 billion in assets and serving 1.5 million clients worldwide. 

With low-cost pre-built portfolios, zero commissions on ETFs and stocks, and advanced algorithms, Wealthsimple stands out as the top choice for robo-advisors. They offer a range of accounts, including TFSA and RRSP, and have recently introduced the Cash Account. 

Their user-friendly interface, competitive fees (0.4% – 0.5% per year), and diverse product lineup make investing accessible and straightforward. 

From Wealthsimple Trade to Wealthsimple Halal, and Wealthsimple Crypto, they provide comprehensive solutions under one roof. 

Why We Recommend Wealthsimple

• Easy to set up and begin your investment journey
• Broad product offering
• Low fees
• Well-known and trusted brand
• First $10,000 managed free

Why We Don’t Like Wealthsimple

• No online live chat is available
• Only three main portfolios are available

2. Best for Low Fees: Questwealth Portfolios

• Management Fees: 0.2 or 0.25% annually
• MER: Regular portfolios: 0.11%-0.23%, SRI portfolios: 0.21-0.35%
• Account Types: TFSA, RRSP, RESP, RRIF, LIF, LIRA, Cash, SRI
• Minimum Balance: $1,000

Questwealth Portfolios, the robo-advisor arm of Questrade, offers various investment options to suit various objectives and risk tolerances. 

With zero commissions on buying ETFs and competitive management fees ranging from 0.20% to 0.25%, Questwealth stands out as an affordable choice. 

Despite having actively-managed portfolios, they manage to keep fees remarkably low, making active management a positive aspect. Questwealth provides a selection of five portfolios and offers convenient online live chat support. As a subsidiary of Questrade, transitioning to DIY investing is seamless.

With accounts including RRSP, TFSA, LIRA, LIF, RRIF, RESP, and non-registered investment accounts, Questwealth caters to a wide range of investors’ needs.

Why We Recommend Questwealth

• Industry-leading low fees
• Offers active management
• Offers Socially Responsible Investment (SRI) portfolios
• Access to online live chat
• First $10,000 managed free
• Affiliated with reputable Questrade brand
• Free tax-loss harvesting

Why We Don’t Like Questwealth

• Offers only actively managed portfolios

Learn more on my Questwealth Portfolios Review

3. Best for Portfolio Choices: Justwealth

• Management Fees: $4.99 monthly for all accounts except RESPs
• MER: Avg. 0.25% annually
• Account Types: Non-registered, TFSA, RRSP, RESP, LIRA, LIF, RRIF
• Minimum Balance: $5,000 except for RESP

Justwealth, a comprehensive online portfolio management platform, offers a wide selection of portfolios tailored to different investment objectives and risk profiles. 

Founded in 2016, Justwealth has over 60 portfolio options, making it a go-to choice for investors seeking variety. They support various account types, including RRSP, TFSA, LIF, LIRA, RRIF, and non-registered investment accounts. 

Justwealth also provides specialized portfolios such as RESP Target Date Portfolios for education savings and U.S. Dollar Portfolios for investing in USD. Additionally, they offer tax-efficient portfolios and income portfolios for retirees, offering an unmatched choice among robo-advisors. 

After completing an online questionnaire, Justwealth matches you with a suitable portfolio supported by trained financial professionals and dedicated portfolio managers available for assistance. 

With Justwealth, you gain a diverse range of investment options and access to personalized financial planning services to help you achieve your financial goals.

Why We Recommend Justwealth

• Competitive fee structure
• Offers investors over 60 different portfolio options
• Registered Portfolio Manager for each account
• Offers Canadians access to USD investment accounts
• RESP option for parents
• Dedicated Financial Advisor

Why We Don’t Like Justwealth

• No Socially Responsible Investment options
• A $5,000 minimum account balance requirement, except for student, fresh grad, and RESP accounts
• You will be charged a flat fee of $4.99 monthly if less than $12,000 in the account balance 

4. Canada’s First Robo-Advisor: CI Direct Investing

• Management Fees: Avg. 0.6% annually.
• MER: Avg. 0.18% annually
• Account Types: TFSA, RRSP, RESP, Non-registered, Savings, RRIF, LIRA, LIF, IPP, PPP, Informal In-Trust
• Minimum Balance: $1,000

CI Direct Investing stands out as one of the top robo advisors in Canada, offering a range of tailored financial planning services for long-term investments. 

As Caanda’s first robo advisor, CI Direct Investing has amassed over $225 million in assets under management. They offer various account options, including RRSP (individual, spousal, and group), RESP, TFSA, RRIF, LIRA, LIF, non-registered accounts (both individual and joint), and corporate investment accounts.

With keen attention to detail and a team of experienced managers, CI Direct Investing excels in providing customized financial plans to meet individual needs.

What sets CI Direct Investing apart is its unique approach to investing. It offers a choice between five passively managed ETF portfolios and four actively managed private portfolios managed by Nicola Wealth, a reputable investment management firm. 

Opting for the private portfolios grants access to exclusive investments like private equity and alternative assets, typically unavailable to average investors.

While the management fees for CI Direct Investing start at 0.6% per year, plus the MER of the investments, the additional cost may be justified for those seeking access to the private portfolios. However, other lower-cost options may appeal more to those interested in passively managed portfolios.

Why We Recommed CI Direct Investing

• First $5,000 managed for free
• Access to private portfolios not normally available to investors

Why We Don’t Like CI Direct Investing

• Higher fees than most robo-advisors

5. Best for Free Trial: ModernAdvisor

• Management Fees: Avg. 0.35% annually
• MER: Avg. 0.27% annually
• Account Types: TFSA, RRSP, RRIF, RESP, Non-registered
• Minimum Balance: None

ModernAdvisor is a top robo advisor in Canada that has been operating since 2013. It stands out for its low-cost passive investment options, catering to both novice and experienced investors.

Based in Vancouver, ModernAdvisor is an excellent choice for beginners due to its unique offerings. For starters, the company manages your first $10,000 for free. Moreover, they provide a no-risk $1,000 trial period where you can earn real returns. 

This trial period allows you to test the waters without any financial commitment. If your investments grow during the trial, you can fund the real amount and keep the profits. Conversely, if your investments decline, you can opt out without losing any personal funds.

ModernAdvisor is highly competitive in terms of fees and offers a range of account options, including RRSP, TFSA, RESP, RRIF, and non-registered investment accounts. 

Additionally, they provide automatic rebalancing, diversified low-cost ETF portfolios, and socially responsible investment options.

Why We Recommend ModernAdvisor

• Offers a $1,000 free trial period 
• Adequate fee structure 
• First $10,000 managed free
• Have the option for paid premium financial advice for larger accounts

Why We Don’t Like Modern Advisor

• Average ETF MERs are high

6. Best for ETF Offerings: BMO Smartfolio

• Management Fees: Avg. 0.40% annually
• MER: Avg. 0.7%
• Account Types: TFSA, RRSP, RRIP, RESP, Non-registered investment accounts (individual and joint accounts)
• Minimum Balance: $1,000

BMO Smartfolio is a noteworthy robo advisor offered by the Bank of Montreal (BMO), one of Canada’s leading banks. It is the first robo advisor from the country’s Big Five banks.

BMO Smartfolio provides many account options surpassing those of other robo-advisors. They have embraced ETF investing and offer a diverse lineup of ETFs that are widely used by Canadians.

With a 0.7% management fee for the first $100,000 invested and relatively high ETF MERs (management expense ratios), it may be more expensive than many other robo advisors. While their fees are higher for smaller accounts compared to top choices, they remain competitive even to BMO’s mutual fund offerings.

Why We Recommed BMO Smartfolio

• Offered by a secure and trusted bank in Canada, one of the Big Five Canadian bank
• Great support options with live chat are available

Why We Don’t Like BMO Smartfolio

• Very high fees and ETF MERs could hurt your long-term returns.

RELATED: BMO InvestorLine Review

7. Best Big Bank Robo Advisor: RBC InvestEase

• Management Fees: 0.5% annually
• MER: Avg. 0.11% annually
• Account Types: TFSA, RRSP, Non-registered investment account.
• Minimum Balance: None

RBC InvestEase is an excellent choice for a Canadian robo advisor, offered by the Royal Bank of Canada (RBC), the country’s largest bank.

Launched in 2017, RBC InvestEase combines automated investing with active portfolio management by real human professionals. While there are no minimum balance requirements, a minimum deposit of $100 is needed to begin investing.

As the largest bank in Canada, RBC is a well-known and trusted institution. For individuals who prioritize brand recognition and the reassurance of a physical bank presence, RBC InvestEase is a compelling option.

RBC InvestEase stands out for its low fees, particularly in terms of its MERs (management expense ratios). Its standard portfolio is unique as it can be customized to align with your specific risk tolerance and desired asset allocation.

Why We Recommed RBC InvestEase

• Offered by a secure and trusted Canadian bank, Royal Bank of Canada (RBC).
• Offers customizable portfolios
• Low fees compared to other bank offerings
• No minimum balance required
• Offers a user-friendly platform

Why We Don’t Like RBC InvestEase

• Limited investment options
• Limited human interaction
• It requires a minimum deposit of $100

8. Best for High-net-Worth Investors: Nest Wealth

• Management Fees: $5 to $150 annually
• MER: Avg. 0.13% annually
• Account Types: TFSA, RRSP, Non-registered investment account.
• Minimum Balance: None

Nest Wealth, established in 2014, was one of the pioneering robo-advisors in Canada. It introduced a unique subscription-based pricing model, setting it apart from other platforms.

The range of accounts Nest Wealth offers includes RRSP, TFSA, LIRA, RRIF, RESP, and non-registered investment accounts. Additionally, they have recently launched “Nest Wealth at Work,” catering to small businesses with a group RRSP plan.

Nest Wealth’s notable differences lie in its flat fee structure and the inclusion of a trading fee. The flat fee structure benefits affluent investors by offering competitive pricing for larger investment amounts. However, for investments below $50,000, the fees may be relatively high, making Nest Wealth less favourable.

The platform also incorporates a trading fee, which can be unpredictable and is not commonly found among other robo-advisors. Nest Wealth has mentioned covering the first $100 of trading fees per year, but exceeding that amount is possible.

Why We Recommend Nest Wealth

• Offers various account types
• Offers a group RRSP plan called Nest Wealth at Work
• Unique flat fee structure
• One of the first robo-advisors in Canada

Why We Don’t Like Nest Wealth

• High fees for lower investment amounts
• It has trading fees

9. Best for Small-Net-Worth Investors: Moka

• Management Fees: $3.99 monthly
• Account Types: TFSA, RRSP, Non-registered investment account.
• Minimum Balance: None

Mylo is a user-friendly app launched in 2017 that aims to help users invest their spare change. Users can accumulate small amounts of money for investment by rounding up everyday purchases. 

The app provides customizable settings, allowing users to determine the amount they want to round up and how they reach their investment goals.

The app offers a visually appealing interface that tracks progress towards targets and includes “boosts” to expedite goal achievement. Moka acts as a robo-advisor, automatically investing the accumulated funds into low-cost ETFs.

To begin investing, users go through a questionnaire and receive guidance from a portfolio manager who can address any inquiries. 

Moka offers two plans: the standard plan allows for account creation, cash deposits, and withdrawals, while the Moka 360 plan provides additional benefits such as investing in socially responsible ETFs and tax-free accounts.

Based on the questionnaire, Moka offers a choice of five portfolio types, ranging from aggressive to conservative, catering to different risk preferences.

Why We Recommend Moka

• Easy and convenient platform
• User-friendly interface
• Offers low-cost ETF investments
• Offers users access to a portfolio manager

Why We Don’t Like Moka

• Limited investment options
• Potential trading fees structure
• Limited account types
• Reliance on rounding up the spare change

Learn more on my Moka Review

10. Best for Responsible Investors: Qtrade Guided Portfolios

• Management Fees: 0.35% to 0.60% annually
• MER: Avg. 0.15% annually
• Account Types: TFSA, RRSP, Non-registered investment account.
• Minimum Balance: None

Qtrade Guided Portfolios is a reputable robo-advisor offering from Qtrade Direct Investing, known for its trading platform. It provides a range of portfolios, including socially responsible investing options, and primarily utilizes Vanguard and iShares funds.

With six portfolios available, investors can choose the one that aligns with their risk tolerance and investment goals. 

Qtrade’s passive stream offers low-cost index ETF portfolios, while the responsible investing (RI) option invests in actively managed mutual funds by NEI Investments.

Qtrade’s portfolio management fees are consistent across all portfolios, but the MERs (Management Expense Ratios) vary depending on the underlying investments. 

Why We Recommend Qtrade Guided Portfolios

• Multiple-choice of portfolios
• Offers DRI options
• Utilizes experienced and trusted funds

Why We Don’t Like Qtrade Guided Portfolios

• Limited customization
• Lack of information on investment methodology

What to Look for In the Best Robo Advisors

Choosing the right robo advisor in Canada is crucial for achieving your investment goals. Here are the key factors to consider when selecting the best robo-advisor:

• Fees: The fees charged by a robo advisor can significantly impact your investment returns. Pay attention to the management fees and expense ratio (MER). Management fees cover transaction and advisory costs, while the MER encompasses overall fund management expenses. Opt for a robo advisor with low management fees and MER to maximize your returns.
• Account Types: Consider the range of account types the robo advisor offers. From TFSA, RRSP, RESP, RRIF, LIF, and LIRA to non-registered accounts, ensure that the robo advisor provides the specific account types you need for your investment strategy.
• Minimum Account Balance: Evaluate the minimum account balance requirements of the robo advisor. Some platforms have no minimum investment requirement, allowing you to start with as little as $1. Others may have higher minimum investment thresholds, typically starting from $1,000. Choose a robo advisor that aligns with your budget and investment capabilities.

By carefully considering these factors, you can select the best robo-advisors in Canada that offer affordable fees, the desired account types, and a minimum account balance requirement suitable for your investment goals.

What Are Robo Advisors?

Robo advisors are an automated investment and financial planning platforms that assess your risk tolerance, financial situation, and investment objectives to provide a customized solution. 

They offer exposure to diverse securities across different markets and sectors. Additionally, they periodically rebalance your portfolio to take advantage of market fluctuations and optimize your investments. 

These platforms use algorithms operated by humans to create diversified portfolios, and they accumulate profits gradually as long-term investment vehicles. They have pre-built portfolios tailored to match various risk tolerance levels and financial objectives.

Who Should Use Robo Advisors?

Robo advisors are an ideal solution for both beginner and seasoned investors. 

Beginners can benefit from using robo advisors as it takes the stress out of building and managing their portfolios. It provides them with a simplified and automated investment process, making navigating the investing world easier.

On the other hand, seasoned investors who are engaged in various activities can also find robo-advisors to be a perfect fit. It allows them to automate the investment process, saving them time and effort. 

They can rely on the algorithms and automated features of robo-advisors to handle their investments while focusing on other endeavours.

However, robo-advisors are more suitable for investors looking to make mid to long-term investments because they are designed to accumulate profits gradually over time, making them an excellent choice for those with a long-term investment horizon.

Are Robo-Advisors Good for Beginners?

Absolutely! Robo-advisors are incredibly beginner-friendly, offering all the essential features that a novice investor needs to get started with ease. 

The sign-up process is straightforward and hassle-free, eliminating any worries about getting started on these platforms. 

One of the great advantages of robo advisors is their pre-built portfolios, specifically designed to align with different investment objectives and risk tolerance levels. As a beginner, all you need to do is fill out a questionnaire that describes your objectives and risk preferences. 

Based on your responses, the robo-advisor will automatically match you with a portfolio that suits your needs.

With our list of the best robo-advisors in Canada, beginners can dive into the world of investing confidently, knowing that they have a user-friendly platform and a customized portfolio that aligns with their goals. 

Benefits of Using a Robo-Advisor in Canada

When it comes to investing in Canada, robo-advisors offer a range of enticing benefits that can take your portfolio to new heights. Let’s explore the advantages that make them a smart choice:

• Cost-Effectiveness: Maximizing your investment returns means minimizing fees. Robo advisors excel in this area by operating with lower costs than mutual funds. They achieve this through reduced human intervention and investing in exchange-traded funds (ETFs). Additionally, many robo advisors in Canada have low or no minimum investment requirements, allowing you to start investing with even just $1.
• Access to Human Financial Advisors: If you’re new to investing or prefer human guidance, the best robo advisors have you covered. They provide round-the-clock access to financial advisors who can assist you in setting the right investment objectives and offer guidance on retirement planning and overall financial management. While access to financial advisors may have separate charges or be included in the basic cost, professional assistance is a valuable resource.
• User-Friendly Experience: The ease of use offered by robo advisors is a game-changer. Once you’ve identified the best robo advisor for your needs, you’ll be prompted to answer straightforward questions about your risk tolerance, investment objectives, and income. Based on your responses, the robo advisor will automatically match you with a pre-built portfolio tailored to your situation. 

Robo Advisor Vs Human Advisor

As you weigh the options of entrusting your hard-earned money to a robot, comparing robo-advisors and human advisors is essential. While human advisors have long been the traditional choice, the advantages of robo-advisors have proven their worth over time.

Cost-effectiveness and efficiency are two key factors that tip the scales in favour of robo-advisors. Human advisors often earn income by selling costly, actively managed mutual funds and stocks. Considering the accumulated fees charged by traditional advisors, you’ll be astounded at the potential savings you could have enjoyed in the long run. 

In contrast, robo-advisors offer low-cost portfolios built with ETFs, often with minimal or no commission fees. When it comes to portfolio performance, robo-advisors have shown an edge over their human counterparts. 

Human advisors, being susceptible to human imperfections, are prone to errors that can result in costly investment decisions. Robo advisors, on the other hand, leverage algorithms to make investment decisions, minimizing the risk of human error.

Overall, the superiority of robo-advisors becomes evident. Their cost-effectiveness, efficiency, and algorithm-driven decision-making set them apart from human advisors. 

However, it’s important to note that a human advisor may be a suitable choice if you specifically seek an actively managed portfolio. But for most investors, the benefits of robo advisors make them the clear winner in Canada.

Final Thoughts on the Best Robo-Advisors in Canada

With the advent of robo-advisors in Canada, investing has never been easier and more accessible. After extensive research and personal experience, I have listed the ten best robo advisors in Canada. Their cost-effectiveness, ease of use, and tailored portfolios have revolutionised how we invest. 

You can now choose the robo advisor that aligns with your investment goals and risk tolerance. So don’t miss out on the opportunity to supercharge your investments and take control of your financial future. Sign up today and start your journey towards financial prosperity.

Start investing smarter; start investing with the best!

FAQs on the Best Robo-Advisors in Canada

Are Robo-Advisors a Good Investment?

Yes. Robo-advisors are a good investment platform compared to mutual funds. With fewer fees and errors, robo-advisors manage your funds more than human advisors.

Can You Make Money with Robo-Advisors?

It depends on the robo-advisor you choose. If you select one of the best robo advisors in Canada, such as Wealthsimple, you’re more likely to make money. However, if you choose a robo advisor with high fees and commissions on trade, you may lose even your initial capital in the long run.

Is Wealthsimple a Good Robo-Advisor?

Yes. Wealthsimple is a good robo advisor because of its zero commissions on trading ETFs and stocks, low fees, and impressive dividend yield.

Are Robo-Advisors Good for Retirees?

Yes. Robo-advisors are good for retirees because they offer low-cost investment portfolios compared to mutual funds. Hence, retirees can easily convert their savings to expand their portfolios through robo advisors.

Do Robo-Advisors Only Invest in ETFs?

No. Robo-advisors invest in different securities, such as equities, gold, and bonds. So your portfolio is diversified and rebalanced automatically according to your investment objective and risk tolerance.

Which Robo Advisor Has the Best Returns in Canada?

Wealthsimple has the best returns in Canada, with 8.2% returns over the last five years on its growth portfolios. Over the same timeframe, its conservative portfolio returned 5.3%.

Is it Good to Have Multiple Robo-Advisors?

It is not advisable to have multiple robo-advisors because they operate without interacting with each other unless you inform them. So when each of your robo advisors rebalances your portfolio individually, it could harm your overall investment.

Do Robo-Advisors Pay Dividends?

Yes. Robo-advisors pay dividends. However, how much dividends you get depends on the robo advisor, risk level, portfolio mix, and investment amount.

Which Robo-Advisors Have Tax-Loss Harvesting?

Wealthsimple and Questrade offer tax-loss harvesting on their trading platforms (Wealthsimple Trade and Questwealth Portfolios).

What Happens if Robo Advisor Goes Out of Business?

When a robo-advisor goes out of business, your funds will remain safe in your bank account because the robo-advisor can’t use your funds beyond investing them in a portfolio of your choice.

Do Robo-advisors Beat the Market?

Robo-advisors do not beat the market because they only match market performance closely by investing in index funds.

What Do You Think are the Pros and Cons of Using a Robo Advisor?

The pros of using robo-advisors include low fees, automatic rebalancing, and portfolio diversification. On the other hand, the cons of using robo-advisors include less human interaction and less flexibility compared to mutual funds.

When Did Robo Advisors Start?

Robo-advisors came into existence in 2008 following the global financial crisis. Since then, robo-advisors have developed into automated portfolio management and asset allocation platforms.

Are Robo Advisors Good for Roth IRAs?

Robo-advisors diversified across different securities, including Roth IRAs. So if you’re looking for hands-off experience on Roth IRAs, robo advisors got you covered.

Are Robo-Advisors Safe?

Robo-advisors are safe because they’re regulated by top bodies and use algorithms to invest your funds in the perfect portfolio. However, you should remember that no investment, including a robo-advisor’s investment, is risk-free.