​we've done some RESEARCH for you comparing ROBO-ADVISORS​

​Updated on September 2, 2022.

​​Use our table as a guide and remember to do some research on your own.​​​

​Minimum Size

  • Initial purchase: you may need a certain amount of cash in your account to start investing.
  • The lower, the better - you can put your money to work sooner.
  • You may need to keep a minimum balance in your account.  If you drop below, you may be charged additional fees / penalties.​

​There are over a dozen robo-advisors in Canada. It’s a relatively new service - the oldest were established in 2013/14 and new firms have been created almost every year since.  ​​Some robo-advisors are privately owned.  Others are owned by bigger financial institutions - like banks or online brokers. 


We've focused on those who use index ETFs and have a passive approaches to the asset mix. They are simpler, less expensive, and easier to understand - this is important when you're starting out. If the robo-advisor website doesn't state it clearly, you need to ask.

  • Passive approach means that the asset mix will be stable. Active approach means the robo-advisor's algorithm may change your portfolio's asset mix in an attempt to reduce risk / improve returns.​


​​​As you check out robo-advisors online, think about other features that may be important to you.  ​For example,

  • Is their website easy to navigate?
  • Can their account be easily connected to either your chequing  or savings account? You want to make sure it's quick and easy to transfer money to / from your investment account. It's can be quite difficult if your investment account is at a different institution than your chequing / savings account. 
  • Do transfers take as little time as advertised?
  • Are monthly statements easy to follow?
  • Is support accessible and helpful? What kind of support is available - live chat, phone, e-mail? 
  • Is there a mobile app? Is it useful?  
  • Does the robo-advisor offer special services for beginners?  Like free advice or a round-up option (rounds up your debit and credit card purchases and sends the money to your robo-advisor account). Some offer special services as a trial.
  • Does it offer any other products or services that you may use in the near future? Like savings accounts, online brokerage, mortgages, insurance, and financial planning.​​


​​​When you do your research, consult robo-advisor rankings.  Here are a couple of useful links:


  • The 2018 annual Globe and Mail ranking
  • https://www.theglobeandmail.com/investing/article-rob-carricks-2018-robo-adviser-guide-find-the-right-firm-for-you/​


  • Blogs, like this one
  • https://youngandthrifty.ca/complete-guide-to-canadas-robo-advisors/

​

​​​​​​​​​​​​​​​​​​​​​​​​Key Features ​​

​choose a  provider

​Fees

  • Annual account fee. Measured as a percentage of your account balance. Withdrawn from your account each month / quarter.
  • Annual MER (management expense ratio). A fee charged by each of the ETFs that make up your portfolio.  Measured as a of the amounts you've invested in that ETF. 
  • ​​​Currency exchange fees. If your portfolio includes ETFs that trade in US dollars or other foreign currencies (anything other than Canadian dollars), you'll pay exchange rates. Be wary of portfolios that are heavily weighted with foreign assets – you may end up paying a lot in conversion fees.
  • The lower the total of all fees, the faster your money grows.


Make sure there are no additional fees (for taxes or trading).