Many Canadians’ first experience with investing, is opening a mutual fund account with an advisor at their nearest bank branch. For many years, mutual funds were one of the easiest solutions for people getting started with investing. Unfortunately, mutual funds are one of the most expensive investment options available.
ModernAdvisor uses Exchange Traded Funds (ETFs) which charge much lower fees (most of our portfolios cost less than 0.20%). At 0.20%, after adding ModernAdvisor’s fee, the most you would pay is 0.70%; for larger accounts the all-in cost could be as low as 0.55%. If you're paying 2% or more on your existing investments, that could save 1.30% or more every year. That might not sound like much, but when compounded over 20 years that adds up to serious money. And you would need serious money before your fee is that low at any wealth manager.