Robo-Advisors in Canada: What They Are and Which to Choose

What it is

A robo-advisor is an online service that builds and manages an investment portfolio for you. You answer questions about your goals, timeline, and comfort with risk; the robo-advisor picks a mix of low-cost ETFs (exchange-traded funds) to match, then automatically rebalances it as markets move. You get professional portfolio management without hiring — or paying — a traditional advisor.

How it works

1. You open an account (TFSA, RRSP, FHSA, RESP, or non-registered) and complete a risk questionnaire.
2. The robo-advisor assigns you a portfolio — for example “balanced growth” — made up of a handful of ETFs covering Canadian, US, and international stocks plus bonds.
3. You deposit money, ideally automatically each payday.
4. The service reinvests dividends and rebalances back to your target mix when markets drift. Some also do tax-loss harvesting in taxable accounts.
5. You pay an annual management fee as a percentage of your balance, plus the ETFs’ own built-in fees.

What it’s used for

Robo-advisors are for people who want to invest but don’t want to pick stocks or ETFs themselves: beginners, busy professionals, and anyone who knows they’d tinker too much with a DIY account. They’re the middle ground between expensive mutual funds and doing it all yourself.

They are NOT for stock pickers, people who want full control over every holding, or investors who need complex planning (business owners, cross-border situations) — those need a human advisor.

Who provides it in Canada

• Wealthsimple Invest — Canada’s largest robo-advisor. Passive index approach, no minimum investment. SRI and Halal portfolio options.
• Questwealth Portfolios (by Questrade) — actively managed by investment professionals rather than purely tracking indexes, with some of the lowest fees in the category.
• RBC InvestEase — the Big Five banks’ answer: hybrid approach, no minimum, flat 0.50% fee.
• BMO SmartFolio — BMO’s robo-advisor, 0.6%–0.7% per year, $1,000 minimum.
• Justwealth — human portfolio managers, 0.4%–0.5% per year, $5,000 minimum.

All carry CIPF coverage up to $1 million; all but Justwealth are CIRO members — Justwealth is an OSC-registered portfolio manager, and its clients’ assets are covered through its CIPF-member custodian, CI Investment Services Inc.

What it costs

Two layers of fees apply everywhere — the robo-advisor’s management fee plus the ETFs’ own management expense ratios (MERs). All-in figures below are as posted in 2026; confirm current pricing before opening an account.

| Provider | Management fee | Typical ETF MERs | All-in (approx.) | Minimum | |—|—|—|—|—| | Wealthsimple Invest | 0.50% (0.40% above $100k) | 0.08%–0.12% | ~0.58%–0.62% | None | | Questwealth | 0.25% (0.20% above $100k) | 0.09%–0.12% | ~0.34%–0.37% | $250 | | RBC InvestEase | 0.50% flat | 0.12%–0.25% | ~0.62%–0.75% | None | | BMO SmartFolio | 0.60%–0.70% | included approx. | ~0.60%–0.70% | $1,000 |

For perspective, the average Canadian equity mutual fund charges close to 2% per year. On a $50,000 portfolio, the difference between 2% and 0.5% is about $750 every single year — compounding for decades.

Newcomer notes

• You need a SIN to open any investing account in Canada, including robo-advisors.
• No credit history required. Your investments are based on your deposits, not your credit score.
• Most robo-advisors offer TFSA, RRSP, FHSA, and RESP accounts — open the TFSA first and read our TFSA explainer before contributing, since overcontribution penalties are a classic newcomer mistake.
• Automatic monthly deposits (even $50) beat perfect timing. Set it once and ignore it.

Risks / watch-outs

• Fees compound against you. Even 0.5% a year adds up over 30 years. Cheap is good — but cheapest isn’t automatically best; compare what’s included.
• Markets still go down. A robo-advisor diversifies you; it doesn’t protect you from market drops. Your portfolio can and will lose value some years.
• The questionnaire isn’t a financial plan. It sizes your risk tolerance, not your life. Big decisions — buying a home, retiring early — deserve real advice.
• Active vs passive is a real debate. Questwealth actively adjusts portfolios; most others track indexes. Decades of evidence favour low-cost indexing, but no approach guarantees outperformance.

FAQ

Is a robo-advisor better than my bank’s mutual funds? On cost, almost always: ~0.4%–0.7% all-in versus ~2% for typical bank mutual funds. On performance, low-cost diversified portfolios have historically beaten most actively managed funds over long periods. Your bank advisor may offer broader planning, though.

How much money do I need to start? Wealthsimple and RBC InvestEase have no minimum. Questwealth needs $250. Starting small is fine — the habit matters more than the amount.

Can I lose money? Yes. Investments rise and fall with markets. What’s protected is the institution holding your money (CIPF covers firm failure up to $1 million), not the value of your investments.

Can I withdraw my money anytime? Yes, from non-registered accounts. Registered accounts (RRSP, FHSA) have tax consequences on withdrawal — that’s about the account type, not the robo-advisor.

Robo-advisor or DIY brokerage? If you’ll actually research and rebalance, DIY is cheaper. If you won’t — and most people won’t — a robo-advisor’s fee buys you the discipline of automation. Be honest about which person you are.

Educational content only — not financial advice. Rules and promotions change; verify current details with the provider or CRA.