If you have ever wished for a robot to do things like walking the dog or washing the dishes for you, we are still a little ways from that kind of innovation. However, we have arrived at a point where automation can help you with financial planning and investing. A robo advisor is a relatively hands-off way to manage and invest your money.
Robo advisors have grown in popularity across Canada as an inexpensive means of wealth management. These platforms offer services that range from automatic rebalancing to tax optimization. While traditional portfolio management services usually require relatively high balances, most robo advisors have low or no requirements for minimum balances. Robo advisor platforms provide wealth management with little human interaction. Because of the low costs and ease of use, many Canadians turn to robo advisors to start investing quickly.
While using a robo advisor is quick and simple, the hard part of the process might be selecting the right platform for you. With so many options and offered features, it might be difficult to determine the best robo advisor in Canada. Let’s look at some options across Canada to help you select the best robo advisor for your needs.
The Best Robo Advisor for Fees
The majority of the robo advisors in Canada are much cheaper than traditional financial advisors. Most companies charge investors between .25 and .50 percent as an annual management fee, with some even offering no fee advising. Investors typically don’t pay the transaction fees or commissions charged by standard brokerage firms, as many robo-advisors waive these charges. Questrade Portfolios is Canada’s largest independent online brokerage and offers some of the most competitive fees. Questrade offers .25 percent for balances up to $99,999 and .20 percent for investment balances above $100,000. They also offer low MER fees that range from .11 to .35 percent. Questrade also offers various registered and non-registered accounts.
The Best Robo Advisor for Customer Service
Robo advisors are mostly automated investment platforms without a human financial advisor. Some services, however, provide human advisors to answer questions and provide customer service. CI Direct Investing is one of the best platforms for customer service. CI Direct offers multiple investing tiers available to Canadians from various economic backgrounds. The platform is one of the most accessible robo advising options for all kinds of investors. Canadians using CI Direct also have access to financial advisors to help them with questions and concerns. Customers can get help through online chat and telephone inquiries. Additionally, CI Direct Investing caters to ex-pats who want to invest while abroad.
The Best Robo Advisor From a Big Bank
If you prefer the security that comes from dealing with a major bank, some of Canada’s largest banks also offer automated investing. The Royal Bank of Canada offers RBC InvestEase as their robo advisor platform. This robo investing platform offers secure investing with all of the financial products from major banks. RBC offers numerous accounts options, however, they come with higher fees and charges than other online investing. The platform requires a minimum balance of $1,000 to begin investing. Another positive from RBC InvestEase is that they offer a team of investments advisors to provide advice and expert management tips for customers’ needs.
The Best Robo Advisor Overall
With the number of robo advisor platforms on the market today, there are many things to consider, from customer service to management fees. Wealthsimple consistently ranks among the top picks for robo advising. Wealthsimple offers various services from online banking and investing to automated tax prep services and Cryptocurrency trading. With so much experience, Wealthsimple offers Canadians the best options and solutions for financial management. They offer low fees, easy-to-use processes, and innovative products for any kind of investor.
For many Canadians, starting with online investing and financial management can be overwhelming when considering the available options. With some research and considerations for your situation, you can find the best robo advisor for your needs.