Investment Advisor

Your comprehensive guide to finding and working with investment advisors in Canada

WOWA Simply Know Your Options

An investment advisor is a financial professional who provides personalized advice and guidance on investment decisions to help clients achieve their financial goals. In Canada, investment advisors are regulated professionals who must be registered with provincial securities commissions and adhere to strict fiduciary standards. You can check registration (CSA) before working with an advisor or firm or view the CIRO Advisor Report for CIRO-regulated dealers.

Many Canadians use the term financial advisor as a catch-all; on this page, we’ll use investment advisor for the regulated roles that provide investment advice and/or discretionary management. Investment advisors analyze your financial situation, risk tolerance, and investment objectives to create tailored investment strategies. They can help with portfolio construction, asset allocation, investment selection, and ongoing portfolio management.

Investment advisors assess your financial goals, recommend suitable investments, monitor portfolio performance, and adjust strategies based on market conditions and life changes. They're legally obligated to act in your best interest under Canadian securities law.

Portfolio managers have discretionary authority to make investment decisions on behalf of their clients without requiring prior approval for each transaction. They typically work with high-net-worth individuals and require minimum investments of $500,000 or more.

Investment counsellors provide non-discretionary investment advice. They make recommendations, but clients must approve each transaction. This arrangement gives clients more control over their investment decisions while still benefiting from professional guidance.

These advisors specialize in private placements and alternative investments not available to the general public. They work with accredited investors and focus on investments like private equity, hedge funds, and real estate investment trusts.

📊 Full-Service Brokerages (Investment Dealers)

• Traditional brokerage firms like RBC Dominion Securities, TD Wealth, BMO Nesbitt Burns
• Offer human advisors plus research reports, market analysis, and various investment products
• Usually charge higher fees but provide comprehensive support

💰 Independent Advisors

• Solo practitioners or small firms not tied to big banks or brokerages
• "Fee-only" means they charge only client fees (no commissions from selling products)
• Often seen as more objective since they don't have sales quotas or proprietary products to push

🏦 Bank Investment Advisors

• Advisors working directly for banks (TD, RBC, Scotiabank, etc.)
• Convenient if you already bank there - integrated services
• May have access to bank-specific products and promotions
• Sometimes seen as having potential conflicts, since they may prioritize bank products

🤖 Robo-Advisors

• Digital platforms like Wealthsimple, Questwealth Portfolios (Questrade Portfolio IQ), BMO SmartFolio
• Automated portfolio management platforms with algorithm-based allocation and lower fees, overseen by professional investment teams
• Much lower fees (typically 0.2–0.7% vs 1–2%+)
• Limited or no human advisor interaction

Investment Advisor vs Financial Planner

Many financial professionals combine both roles, offering comprehensive financial planning alongside investment management services. The key is understanding which services you need and ensuring your advisor has the appropriate expertise.

The Lowest
Trading Fees

Among Canada's Big 5 Banks

• Low Commissions
• In-Depth Research
• Wide Variety of Investment Choices

Learn More

The Lowest Trading Fees

Among Canada's Big 5 Banks

• Low Commissions
• Wide Variety of Investment Choices
• In-Depth Research

Learn More

Verify that your potential advisor is properly registered with the appropriate regulatory body. In Canada, you can check registration status through the National Registration Database (NRD). Look for relevant designations such as CFA (Chartered Financial Analyst), CIM (Chartered Investment Manager), or FMA (Financial Management Advisor).

Understand the advisor's investment philosophy and ensure it aligns with your goals and risk tolerance. Some advisors focus on active management and stock picking, while others prefer passive index investing. Ask about their approach to asset allocation, diversification, and risk management.

Clearly understand how your advisor is compensated. Fee structures can include asset-under-management fees (typically 1-2% annually), transaction-based commissions, hourly fees, or flat annual fees. Ensure all costs are disclosed upfront, including any third-party fees or product costs.

Consider the advisor's experience in the industry and with clients in similar situations. While past performance doesn't guarantee future results, understanding their track record and approach during different market conditions can provide valuable insights.

• What are your qualifications, and how long have you been in practice?
• How are you compensated, and what will my total costs be?
• What is your investment philosophy and typical asset allocation approach?
• How often will we meet and how will you communicate with me?
• Can you provide references from current clients?
• What services do you provide beyond investment management?
• How do you measure success and report on performance?

Most investment advisors charge an annual management fee based on a percentage of assets under management (AUM). Typical fees range from 0.5% to 2.5% annually, with higher-net-worth clients often negotiating lower rates due to economies of scale.

Some advisors charge performance fees in addition to or instead of management fees. These fees are typically calculated as a percentage of returns above a predetermined benchmark. Performance fees must comply with Canadian securities regulations and are more common with portfolio managers serving high-net-worth clients.

Commission-based advisors earn money through transaction fees when buying or selling investments. While this can result in lower ongoing costs, it may create conflicts of interest as advisors are incentivized to make frequent trades.