Robo-Advisors in Canada

A detailed analysis compared Canadian robo-advisors and identified the top platforms for ETF investing in Canada. After evaluating fees, portfolio options, performance caveats, and customer features across more than a dozen companies, three platforms stood out: Questwealth, Wealthsimple, and ModernAdvisor. This article summarizes these findings in a clear and practical guide to help Canadian investors choose the robo-advisor that best suits their needs.

Quick summary of the top three

• #1 — Questwealth: Industry-leading low fees (0.20–0.25%), actively managed portfolios, tax-loss harvesting, and strong parent-company backing.
• #2 — Wealthsimple: Best brand recognition and product ecosystem, easy-to-use platform, decent fees (0.40–0.50%), and a wide range of additional services (Cash, Trade).
• #3 — ModernAdvisor: Excellent for beginners thanks to a unique no-risk $1,000 trial, ten portfolio options, and access to paid Certified Financial Planner help for more complex needs.

How Wealth Awesome judged robo-advisors

Choosing between robo-advisors can be tricky because many offer similar ETF-based solutions. Wealth Awesome focused on a few core factors that matter most to long-term investors:

Fees

Fees matter. A seemingly small fee difference (for example, 0.2% per year) compounds over decades and can translate into tens or even hundreds of thousands of dollars in lost returns. Robo-advisors generally compete on lower fees than traditional active mutual funds, and fee structure was treated as the most important, predictable, and controllable factor when comparing platforms.

Performance (with a caution)

Past returns are difficult to use as a reliable ranking tool for robo-advisors. Many platforms are relatively new, they may use different portfolio constructions (active vs passive, geographic and market-cap weightings), and historical outperformance does not guarantee future results. That said, lower fees give a mechanically better chance of higher long-term net returns — so fees and portfolio construction together matter more than headline past performance.

Portfolio selection and investor fit

Each robo-advisor uses an investor questionnaire to determine an appropriate portfolio. Investors should confirm that the platform offers portfolios aligned with their risk tolerance (e.g., ultra-conservative 90% fixed income, or more aggressive equity mixes). Socially responsible investing (SRI) options are available on some platforms; these may carry slightly higher costs.

In-depth reviews

1) Questwealth

Overview: Questwealth (from Questrade) earned the top spot primarily because of its exceptionally low management fees — roughly 0.20% to 0.25% per year — which are about half (or less) of many competitors. Unusually, Questwealth combines those low fees with active portfolio management rather than a purely passive ETF-only approach.

Key specifications

• Fees: ~0.20%–0.25% management fee per year.
• Portfolio types: Five diversified portfolios covering typical investor profiles.
• Special features: Free tax-loss harvesting, SRI portfolios available, online live chat, backed by Questrade for a smooth do-it-yourself transition.
• Promotions: First $10,000 managed for free for the first year.

Pros

• Lowest management fees among major Canadian robo-advisors.
• Active management at very low cost — an uncommon combination.
• Includes tax-loss harvesting and SRI options.
• Live online chat and strong parent-company reputation (Questrade).

Cons

• Active management is not guaranteed to outperform passive ETFs; active decisions add manager risk despite low fees.
• Five portfolios may be enough for most investors but fewer choice granularity than some competitors.

Who Questwealth is best for

Cost-conscious investors who want professionally managed portfolios (including active management) and expect to keep fees as low as possible to maximize their net long-term returns. Also a strong pick for people who may later transition to hands-on trading with Questrade.

2) Wealthsimple

Overview: Wealthsimple is Canada’s most recognizable robo-advisor brand thanks to high-profile marketing and a wide product ecosystem. It’s an excellent choice for beginners and those who appreciate an intuitive, polished platform. Fees are middle of the pack at about 0.40%–0.50% per year.

Key specifications

• Fees: ~0.40%–0.50% management fee per year.
• Portfolio types: Three main portfolios (Conservative, Balanced, Growth).
• Special features: SRI and Halal portfolio options, Wealthsimple Cash (high-interest product), Wealthsimple Trade (zero-commission broker), first $10,000 managed for free promotional offer.

Pros

• Very easy to set up and use — excellent onboarding experience for beginners.
• Strong brand, large customer base, and expanding product suite beyond investing.
• Integrated products make it easy to keep banking, investing, and savings in one place.

Cons

• Only three portfolio choices — less portfolio granularity for investors who want finer risk customization.
• No online live chat (at the time of review), and fees are higher than Questwealth.

Who Wealthsimple is best for

New investors who prioritize ease of use, strong brand trust, and the possibility of using additional financial products (cash accounts, trading) from a single provider.

3) ModernAdvisor

Overview: ModernAdvisor is a Vancouver-based robo-advisor that focuses on making the onboarding experience safe and approachable for beginners. Its standout feature is a 30-day, no-risk $1,000 trial where investors can see real returns on virtual money and then choose whether to fund the account with their own cash.

Key specifications

• Fees: Competitive but higher than Questwealth; overall fee structure is reasonable.
• Portfolio types: 10 portfolios spanning a broad range of risk profiles.
• Special features: 30-day $1,000 risk-free trial, first $10,000 managed for free, option to pay for a dedicated Certified Financial Planner (CFP) for tailored advice.

Pros

• Unique $1,000 trial lets users “try before they buy” — real gains are kept if the trial ends positive, and losses are not realized.
• Wide portfolio selection (10 models), offering more precise risk targeting.
• Ability to pay for premium CFP access — helpful for investors with complex planning needs.

Cons

• ETF MERs and overall costs aren’t as low as Questwealth.
• Platform and product ecosystem aren’t as extensive as Wealthsimple’s.

Who ModernAdvisor is best for

Absolute beginners who want a low-risk way to experience robo-advisor investing or those who want more portfolio variety and the option for paid, human financial planning support.

Comparison highlights and practical advice

• Fees are king: Lower predictable fees increase the likelihood of better long-term net performance. Questwealth’s 0.20%–0.25% stands out.
• Portfolio fit matters: Confirm the platform offers the portfolio that aligns with your risk tolerance — conservative investors need access to higher fixed-income mixes, for example.
• Features matter: Tax-loss harvesting, SRI options, live support, and extra products (cash accounts, trading platforms) can be tiebreakers.
• Don’t overweigh historical returns: Many robo-advisors are young and use differing strategies; past outperformance doesn’t guarantee future results.
• Try before you commit: If available, use free management promotions (first $10k for a year) or trial offers (ModernAdvisor’s $1,000 trial) to test the experience.

Final Recommendation

Questwealth tops the list for its ultra-low fees, long-term investor benefits, active portfolio management, tax-loss harvesting, and live chat support. Wealthsimple comes second with its intuitive platform, strong brand, and integrated ecosystem — ideal for beginners. ModernAdvisor rounds out the top three, offering a no-risk trial, diverse portfolio options, and access to paid CFP support for complex needs.

The best choice depends on individual priorities: if minimizing fees matters most, consider Questwealth; if platform experience and additional services are key, Wealthsimple is attractive; if a no-risk trial and portfolio variety appeal, ModernAdvisor is worth exploring.

Before signing up, confirm that available portfolios match your risk profile, compare fees (management fees and ETF MERs), and contact customer support if needed. Trying promotions or trial periods is a practical way to test a platform without long-term commitment.

With the right combination of low fees, suitable portfolios, and a comfortable platform, robo-advisors can provide a cost-effective and efficient way for Canadians to invest in ETFs without a high-priced financial advisor or building a portfolio from scratch.