Robo-advisors changed Canadian investing by giving newcomers and small accounts a low-cost, hands-off way to build a diversified portfolio. The big three (Wealthsimple, Questrade, Justwealth) each fit different investor profiles. Here’s how to choose in 2026.
What a robo-advisor actually does
You answer a 5-10 minute questionnaire about your goals, time horizon, and risk tolerance. The robo assigns you to a model portfolio (typically 4-8 ETFs covering Canadian, US, international stocks + bonds). They invest your deposits according to the model, rebalance automatically, harvest tax losses (sometimes), and reinvest dividends.
Total cost: their advisory fee (~0.25-0.85%) + underlying ETF fees (0.10-0.30%). All-in: 0.35-1.15% annually. Compare to traditional mutual funds at 2-2.5% MER, and self-directed ETF investing at 0.10-0.30%.
The 2026 comparison
| Robo | Advisory fee | Min deposit | Best for |
|---|---|---|---|
| Wealthsimple Invest | 0.5% (<$100K), 0.4% (≥$100K) | $0 | Beginners, simple UX |
| Questrade Portfolios | 0.25% (≤$100K), 0.20% (>$100K) | $1,000 | Cost-focused investors |
| Justwealth | 0.5% (≤$500K), tiered above | $5,000 | RESP, custom portfolios |
| BMO SmartFolio | 0.40-0.70% tiered | $1,000 | Existing BMO customers |
| RBC InvestEase | 0.50% | $100 | Existing RBC customers |
| Nest Wealth | Flat $20-$80/month | $0 | Larger accounts ($500K+) |
Wealthsimple Invest — the default choice
- Pros: Cleanest UX, $0 minimum, no trading fees, halal portfolio option, SRI (socially responsible) portfolios, tax-loss harvesting, integrates with Wealthsimple Cash/Tax/Trade
- Cons: Higher fee than Questrade (0.5% vs 0.25%), only 3 core portfolio types, limited customization
- Best for: First-time investors, anyone wanting simplicity, halal-portfolio seekers, people already using other Wealthsimple products
Questrade Portfolios — the budget pick
- Pros: Lowest fee in the market (0.25%), 5 portfolio types (conservative to aggressive growth), integrates with Questrade self-directed brokerage
- Cons: NO tax-loss harvesting (significant for taxable accounts), $1K minimum, UX dated vs Wealthsimple
- Best for: RRSP/TFSA holders (where tax-loss harvesting doesn’t matter), cost-conscious investors, those graduating from Wealthsimple to a serious lower-fee option
Justwealth — best for RESP + customization
- Pros: RESP-specific portfolios that automatically shift to bonds as kid approaches university (lifecycle investing), 80+ portfolio variants, real human advisors available
- Cons: $5K minimum, more expensive than Questrade, less brand recognition
- Best for: Parents opening RESP for young kids, investors wanting more portfolio control without going self-directed
Tax-loss harvesting — who has it
Tax-loss harvesting automatically sells losing positions in taxable accounts to crystallize losses (offset future capital gains) while keeping you invested in similar holdings. Only matters in NON-REGISTERED accounts; useless in RRSP/TFSA/FHSA.
- Wealthsimple: YES (automatic, included in fee)
- Justwealth: YES (automatic)
- Questrade Portfolios: NO
- BMO SmartFolio: NO
- RBC InvestEase: NO
When NOT to use a robo-advisor
- Account size $50K+: robo fee of 0.5% = $250+/year. Self-directed ETF investing costs ~$25/year. Worth learning to DIY.
- You enjoy investing as a hobby: robos take all the fun out
- You want individual stock picks: robos do ETF-only portfolios
- Your situation is complex: business owner with corp account, multiple beneficiaries, estate planning needs — go with a fee-only financial planner
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