What every investor should know about robo advisors

Not too long ago, if you wanted to jump into the stock market, your main options were either going through a bank's financial advisor (hello, high fees) or just biding your time on the sidelines. Either that or you needed to learn how to trade stocks yourself. But with robo advisors, like Questwealth Portfolios on the scene now there is a perfect balance for you. 

The main benefit of a robo advisor is the lower fees typically compared to traditional financial advisors or actively managed mutual funds.

These savings are then passed on directly to you, affording the opportunity to access a professionally managed investment portfolio at a significantly lower cost compared to alternative options.

Another robo-advisor perk is that it rebalances your portfolio with little hands-on interaction, which is especially handy if you're pressed for time or in the process of building confidence to independently manage your own portfolio.

Any investment account can be opened with a robo advisor. This includes First Home Savings Accounts (FHSAs), Tax-Free Savings Accounts (TFSAs), Registered Retirement Savings Plans (RRSPs), Registered Education Savings Plans (RESPs), and more. 

You might want a RESP for your children, an RRSP to save for your retirement, and an FHSA to save for a home purchase, all at the same time. It’s easy to open up managed portfolios for each of your individual needs, whichever account type works best for you. 

With Questwealth you start by answering a few questions about your financial circumstances, investment objectives, and time horizon. With this information in hand, you get a pre-built managed diversified portfolio based on your wants and needs. These portfolios are made of Exchange Traded Funds (ETFs), which would be like investing in the market with mutual funds but have a fraction of the fees.

Getting started with your first Questwealth Portfolio through the QuestMobile app is a hassle-free process that can be completed in under 20 minutes.

And just because Questwealth is a robo advisor doesn't mean we skimp on human customer service. If you ever want to chat with a real person, we're just a phone call away at 1.888.783.7866. 

Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.