Monday, February 3, 2025

Wealthsimple vs. RBC InvestEase in 2025

Whether or not youโ€™re trying on the cutting-edge fintech firm Wealthsimple, or the long-established Royal Financial institution of Canada (RBC), each monetary establishments are preserving tempo with Canadiansโ€™ rising curiosity in index investing. Wealthsimple and RBC every have managed wealth platforms which have made the listing in our Finest Robo Advisors in Canada listing. Each establishments even have on-line brokerage choices, though their rankings have dropped in our listing of the Finest On-line Brokers in Canada.

Researching the most effective Canadian robo-advisors and prime brokerages can shortly grow to be overwhelming. With so many wonderful choices accessible in Canada, itโ€™s not all the time simple to determine how they stack up in opposition to one another.

 Thatโ€™s why weโ€™ve put this collectively for you: a side-by-side comparability of Wealthsimple Make investments and RBC InvestEase, together with Wealthsimple Commerce and RBC Direct Investing. Weโ€™re right here to assist information you thru the decision-making course of: that can assist you perceive the providers, options, and charges, all whereas highlighting key variations and the most effective total worth.

We additionally recommend looking at how our top-rated robo-advisor performs in our Justwealth Evaluate, and the way our highest-rated brokerage account measures up in our Qtrade Evaluate.

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Wealthsimple vs. RBC InvestEase: Fast Comparability

Simply because they arrive from wildly totally different firms, doesnโ€™t imply these robo-advisors donโ€™t have something in frequent!

The chart under is an effective way to get a big-picture thought of what RBC and Wealthsimple have to supply. Weโ€™ve taken all the knowledge from our Wealthsimple Evaluate and our RBC InvestEase Evaluate and put it side-by-side for simple reference.

Administration Charges
    • 0.5% Customary
    • 0.4% For over 100K in belongings
    • 0.2%-0.4% For over 500k in belongings
    0.50% flat-rate administration charge
MER 0.12%-0.15% for Customary ETFs, 0.21%-0.23% for SRIs.

0.11%-0.14% for Customary ETFs, 0.18%-0.23% for SRIs

Funding Choices 14 ETFs (7 normal, 7 SRI), iShares Blackrock solely.
    13 ETFs (10 normal, 2 SRI, 1 Halal), a wide range of prime suppliers.
Returns 1.96% to five.54% annualized development.
2.5% to eight.9%, however notice that this robo advisor solely launched in 2018.
Buyer Service Straightforward to entry (human) advisors, fiduciary accountability. Straightforward to entry, fiduciary accountability.
Signal Up Go to Wealthsimple & Get $50 Free Go to RBC Investease

Yow will discover a full evaluation of every robo-advisor of their particular person opinions, however context is all the time useful whenever youโ€™re making a comparability. Letโ€™s break down the most important similarities and variations.

Wealthsimple or RBC: Fintech vs. Financial institution

Wealthsimple is a fintech firm that was launched in 2014, however simply because theyโ€™re new, that doesnโ€™t make them insignificant. Wealthsimple has about 3 million account holders and over $50 billion in belongings below administration. Wealthsimple Make investments was as soon as our most beneficial robo-advisor, however theyโ€™ve lately fallen to second place, behind Justwealth.

RBC is the biggest financial institution in Canada with over 20 million purchasers and over 160 years of historical past. Their robo-advisor, RBC InvestEase, launched in late 2018. RBC is one among solely two huge banks to supply robo-advising (the opposite is BMO, which rolled out their SmartFolio robo-advisor in early 2016).

These two firms are extremely totally different, however they overlap in a single space: theyโ€™re devoted to offering traders with a user-friendly passive investing possibility. 

Wealthsimple vs. RBC: Safety

Each Wealthsimple and RBC are legit, protected, and reliable. Your account is held by a custodial dealer that may be a member of the Canadian Investor Safety Fund (CIPF) and controlled by the Funding Trade Regulatory Group (IIROC).

This implies two issues for you:

1.     The best way each firms make investments your cash is regulated by an impartial company

2.     If both robo-advisor goes bankrupt (extraordinarily unlikely with billions of {dollars} below administration by each), your accounts are protected as much as $1 million.

Each firms additionally defend your information with bank-level encryption and safety. RBC even presents account holders a 100% reimbursement if a knowledge breach leads to an unauthorized transaction.

Wealthsimple vs. RBC: Charges

Whereas account holders are charged primarily based on a proportion of their account whole yearly, the charge constructions for Wealthsimple and RBC differ. 

Wealthsimple takes a tiered strategy and expenses:

  • 0.5% on accounts as much as $100,000
  • 0.4% on accounts of $100,000 to $10,000,000
  • 0.2% on accounts over $10,000,000. 

RBC alternatively expenses a flat price of 0.5% no matter account totals. 

So, for those who maintain greater than $100,000 in belongings, youโ€™ll be charged a decrease charge with Wealthsimple than with RBC.

The MER on Wealthsimpleโ€™s ETFs varies, starting from 0.12%-0.15% yearly. The MER for his or her Socially Accountable Investments is greater, starting from 0.21%-0.23%.

RBC InvestEaseโ€™s ETFs have a median MER vary of 0.11%-0.14% and their SRI choices vary from 0.18-0.23%, which is barely decrease than Wealthsimpleโ€™s.

Clearly, we admire Wealthsimpleโ€™s low cost for bigger accounts, which might add as much as rather a lot as your whole holdings enhance. We willโ€™t deny that RBC does supply fractionally decrease whole charges for his or her SRIs, however in case you have an account over $100,000 and qualify for Wealthsimpleโ€™s decrease annual charge, the price distinction disappears nearly completely.

Wealthsimple vs. RBC: ETF Choice

Wealthsimple portfolios usually embrace ETFs from prime suppliers in Canada akin to Vanguard, iShares, and BMO.

RBC works with a collection of 7 normal and seven SRI ETFs. Theyโ€™ve an unique partnership with iShares, so they provide RBC iShares ETFs solely.

iShares is likely one of the greatest ETF suppliers in Canada, so this isnโ€™t a deal-breaker, it simply signifies that RBC traders might miss out on choices from firms like Vanguard and BMO.

In terms of ETFs in Canada there are such a lot of choices. After all, weโ€™ve taken a deep dive into researching them for you. Take a look at our articles on the Finest Canadian All-One ETFs, High ETFs in Canada, and Finest Dividend ETFs in Canada.

Wealthsimple vs. RBC: Socially Accountable Investments

Each Wealthsimple and RBC InvestEase take accountable investing significantly.

Wealthsimple Make investmentsโ€™s SRI ETFs:

  • Include no investments within the oil, tobacco, or weapons industries.
  • Follow extra sustainable industries like clear vitality, electrical vehicles, and plant-based meats.
  • Keep away from the highest 25% of carbon producers in every business for his or her SRIs.
  • Be sure that each firm of their fund has at the least 25% (or a minimal of three) girls on their board of administrators. The truth that that is nonetheless notable in 2025 is a complete different concern, however we admire the gesture.

RBC has branded their SRIs โ€œAccountable Investingโ€ as a result of it goes past the social side and covers environmental, social, and governance elements. For instance, they:

  • Keep away from firms within the tobacco, โ€œcontroversial weapons,โ€ and civilian firearms industries.
  • Keep away from any firm concerned in โ€œextreme controversiesโ€ (harassment claims, emissions take a look at information falsification, and many others).
  • Assess all funding candidates primarily based on environmental, social, and governance requirements.

TBC has quite a lot of math to again this up, which yow will discover on their web site, however mainly what it means for you is a set of ETFs you possibly can be ok with investing in.

The underside line right here is that each Wealthsimple Make investments and RBC InvestEase are devoted to discovering unproblematic funding choices, not solely environmentally but additionally socially and legally. RBC has a slight leg up on Wealthsimple on this space as a result of they provide a wider collection of ETFs with decrease common MERs, so if SRIs are your essential focus, you could need to maintain this in thoughts.

Wealthsimple vs. RBC: Portfolio Choices

Each firms supply a wide range of portfolio choices. Wealthsimple presents 3 primary portfolio templates: Conservative, Balanced, and Progress. These can be found for his or her normal, SRI, and Halal portfolios. Inside every of these 3 sorts of portfolios, your asset allocation is adjusted primarily based in your danger tolerance and is given a worth from 1-10. This worth is predicated on data you present and is used to find out the precise allocation of your portfolio, so thereโ€™s a very good quantity of customization.

RBC presents 5 portfolios starting from Very Conservative to Aggressive Progress, utilizing both normal ETFs or accountable investing ETFs. Itโ€™s a stable vary of portfolios, numerous sufficient to offer choices for any purpose or degree of danger tolerance.

Each Wealthsimple and RBC InvestEase rebalance your portfolio if it strays too far out of your superb asset allocation. Additionally they reinvest any dividends earned to develop your account even quicker.

Wealthsimple vs. RBC: TFSAs, RRSPs, and extra

Weโ€™re all the time to see what accounts a robo-advisor presents, and it could make a distinction in how we rank them. We worth a wide variety!

Wealthsimple Make investments presents a variety of accounts together with:

In the meantime, RBC InvestEase solely presents TFSAs, RRSPs, FHSAs, and non-registered accounts. Nevertheless, RBC Direct Investing (RBCโ€™s DIY on-line dealer) presents RRIFs and RESPs. Even with RBCโ€™s number of choices by both their robo-advisor or their on-line brokerage, you donโ€™t have as many account choices as with Wealthsimple.

Wealthsimple vs. RBC: Efficiency

Yr-to-year funding efficiency is a tough metric and almost not possible to attract helpful conclusions from.

Wealthsimple Make investments and RBC InvestEase allocate funds in another way, and that can result in totally different outcomes primarily based on how these specific sectors are doing in any given 12 months. For instance, Wealthsimple invests extra of your cash into the US and rising markets than the extra Canada-focused RBC does at each danger degree.

The factor is, variations in year-to-year efficiency donโ€™t point out that one robo-advisor is healthier than the opposite โ€“ theyโ€™re simply totally different, thatโ€™s all.

Donโ€™t chase returns! 

Choose a robo-advisor that works on your wants, keep it up, and acknowledge that you justโ€™re in it for the lengthy haul. Any discrepancies in efficiency are inclined to even themselves out over time.

Wealthsimple vs. RBC: Signal-up Course of

Signing up for each RBC InvestEase and Wealthsimple Make investments is straightforward. All you want is your SIN, tackle, and banking data. Youโ€™ll be taken by a questionnaire that helps them pinpoint your monetary targets, timeline, and danger tolerance, and choose the correct portfolio for you.

When youโ€™re all arrange, all you must do is fund your account.

Wealthsimple vs. RBC: Minimal Stability

One of many issues we love about Wealthsimple is that they begin investing with nonetheless a lot you set in your account, even for those who solely deposit $5. RBC will assist you to open an account with any amount of cash, however they gainedโ€™t make investments it till you attain a $100 steadiness. Moreover, your cash gainedโ€™t be invested in a totally diversified portfolio till your steadiness reaches $1500.

This isnโ€™t nearly as good as Wealthsimple, nevertheless itโ€™s miles higher than robo-advisors like NestWealth, which requires a $1,000 deposit, or Justwealth, which requires a $5,000 minimal deposit for all accounts besides RESPs.

Wealthsimple vs. RBC: Perks, Advantages And Additional Options

Along with their 0.1% low cost on annual charges for accounts over $100,000, Wealthsimple Make investments gives higher-balance traders with tax-loss harvesting, a reduction on property planning, and extra. Accounts over $500,000 get these perks plus enhanced presents like a customized monetary report and 50% off of a medical health insurance plan (for residents of Ontario).

RBC doesnโ€™t supply any perks for greater balances. Everybody pays 0.5% yearly and there arenโ€™t any bonus options in any respect. Clearly, in case your account is below $100,000, this distinction doesnโ€™t have an effect on you, however in case you have extra to take a position, Wealthsimple is the higher worth.

In terms of perks โ€“ our stance is that whereas theyโ€™re good, theyโ€™llโ€™t be on the expense of high quality of service, they usuallyโ€™re solely worthwhile in the event that theyโ€™re perks youโ€™ll truly use!

Wealthsimple vs. RBC: Obtainable Promotions

Wealthsimple Make investments is providing our readers a welcome bonus: $50 money for those who open an account and make investments $500. There are various different the explanation why theyโ€™re one among our most-recommended robo-advisors, however this definitely doesnโ€™t harm! 

RBC doesnโ€™t have a present promotion working.

Wealthsimple vs. RBC: Cell App and Web site

Wealthsimple Make investmentsโ€™s app is streamlined and straightforward to make use of. It lets you monitor your investments, fund your account, and get in touch with the monetary advising staff simply. Itโ€™s rated at 4.6 stars on the Apple App Retailer and 4.4 stars on the Google Play Retailer for Android customers.

RBC InvestEase doesnโ€™t have its personal app. As a substitute, you possibly can view your account and make transfers out of your RBC checking account utilizing the RBC banking app or RBC on-line banking web site. The RBC Cell app has a spectacular 4.8 star score on the Apple App Retailer, however a low 2.2 stars on the Google Play Retailer.

Should youโ€™re already an RBC buyer, this all-in-one app could possibly be seen as a bonus (one much less web site or app to verify!). Should youโ€™re solely with RBC for the robo-advisor, itโ€™s not superb (and there are higher decisions on the market). RBCโ€™s app and on-line platform are nice, however when investing is only one of many options, itโ€™s simple for finer particulars to fall by the wayside.

Wealthsimple vs. RBC: Buyer Service

Each RBC InvestEase and Wealthsimple Make investments have a staff of accredited portfolio advisors on name by telephone or e-mail.

Licensed Portfolio Advisors are fiduciaries, which signifies that theyโ€™re legally required to offer you recommendation in your individual greatest pursuits. Not all โ€œmonetary advisorsโ€ are registered, and youโ€™ll have faith within the ones whoโ€™re.

Once youโ€™re robo-advisors or Canadian on-line brokers, having actual folks you possibly can discuss to isnโ€™t a given. The groups of precise accredited people on name for Wealthsimple and RBC are only one motive why theyโ€™re among the many greatest robo-advisors in Canada.

Wealthsimple or RBC? Ceaselessly Requested Questions

Wealthsimple vs. RBC โ€“ Which One is Higher For You?

Whereas Wealthsimple and RBC have stable choices for each robo-advisors and on-line brokerages neither of them take the highest spot in Canada. Theyโ€™re protected, dependable, and supply a superb manner for Canadians to profit from index investing however superior choices do exist.

For a few years, Wealthsimple Make investments took our prime place as a robo advisor, however that is not the case. In our Justwealth Evaluate, you will notice how Wealthsimple has been surpassed as a result of Justwealthโ€™s wonderful funding efficiency and beneficiant promo supply.

As for his or her on-line brokerage platforms, Wealthsimple Commerce and RBC Direct Investing do a very good job, however each fall in need of Qtrade with their free shopping for and promoting of 100+ ETFs. To study extra about Canadaโ€™s prime brokerage possibility take a look at our Qtrade Evaluate.

RBC presents the comfort of an all-in-one banking establishment with a family title, so for those whoโ€™re inclined to go together with the time-tested, RBC is perhaps your greatest wager. Wealthsimple has an easy-to-use interface and intuitive design so for those whoโ€™re attempting to make the leap into investing which may be the most effective place so that you can begin. 

In the long run, youโ€™re not going to go fallacious with both possibility. When it comes right down to the one-on-one comparability of Wealthsimple vs RBC, the true winner is whichever platform you are feeling most relaxed with and are almost certainly to stay with!

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