Smart Money Capital Management robo-advisor

Smart Money Invest offers Canadians another robo-advising service that focuses on portfolios consisting of low-cost ETFs and low management fees.

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Smart Money

The past decade has seen the emergence of robo-advising companies as a viable alternative to investment services offered by big banks. Smart Money Capital Management is another new robo-advising company that was founded and established in 2015. Despite being another viable option for Canadians to invest their money for the long term, it currently only operates in three provinces: Alberta, Ontario and Quebec.

When it comes to investing your money, Smart Money Capital Management does so while remaining true to its three core principles: personal, objective and dedicated. The company’s dedicated team of support staff provides personal services and are ready to help you with any questions about your portfolio. The company is objective in that it will always take emotion out of the equation when investing your money and, lastly, it is dedicated to protecting and growing your portfolio.

What is the Smart Money Capital Management robo-advisor?

Like many of the emerging robo-advising companies, the company offers specialized investment services with the benefit of low management fees. Smart Money Capital Management (also called Smart Money Invest) uses its own proprietary trading algorithm (robo-advisor) to help create personalized portfolios with the intent of managing and growing investments for its clients.

Smart Money Capital Management prides itself on its financial technology and its diverse asset allocation mix in creating portfolios that are tailored to your risk tolerance and investment goals. One feature of its robo-advising service is that it allows for “smart rebalancing,” which is another way of saying that it constantly assesses your investments and how they are performing with the market and makes any necessary adjustments (buy or sell).

How much does the Smart Money Capital Management robo-advisor cost?

When compared with the management fees in the investment industry, Smart Money Capital Management’s fees are as much as three times lower. But, when compared with other robo-advisors, Smart Money Capital Management’s fees are higher.

Smart Money Capital Management’s fees work out to 0.8% annually, but they are charged on a monthly basis. On top of that, there is an added 0.27% exchange traded fund fee, bringing the total to just over 1%. It’s also worth noting that there is a minimum deposit amount of $5,000 in order to get started investing with Smart Money Capital Management.

What are the benefits of the Smart Money Invest robo-advisor?

  • Diversified portfolios. Its portfolios consist of a unique asset allocation mix that is designed to diversify your portfolio in order to align with your risk tolerance.
  • Proprietary algorithm. This investment algorithm is based on decades of market and investment management research combined with ongoing optimization by some of the industry’s best mathematicians and economists.
  • On-demand access. You can access your account and investments anytime and anywhere from your computer or mobile device.
  • Data security. Investing money and accessing it online can be risky, but Smart Money Capital Management provides a secure and encrypted space to access your sensitive documents and information.
  • Low fees. When compared with the industry average of 2.5%, Smart Money Capital Management’s fees of 0.8% are much lower.
  • Portfolio rebalancing. Your portfolio is constantly being monitored to ensure that your portfolio weighting is within a tolerance band.

What should I watch out for?

  • Limited availability. Smart Money Capital Management’s robo-advisor is only available in Alberta, Ontario and Quebec.
  • Higher fees. Compared with other robo-advisor services, Smart Money Capital Management’s fees are higher.
  • Potential for financial losses. Like any arena where you invest or wager money, there is always a fair chance of losing money on your investments.

What should I know before I apply?

To begin investing your money with Smart Money Capital Invest’s robo-advisor, you need to meet the following eligibility requirements:

  • Be at least 25 years of age.
  • Be a citizen of Canada and live in the following provinces: Alberta
  • Have a valid social insurance number.
  • Provide the necessary employment and banking information.

How to apply

If you meet the eligibility requirements and want to proceed with signing up for an account with Smart Money Capital Management, you need to apply by doing the following:

Sign up for an account on the Smart Money Capital Management website by providing your first and last name, your age and your province of residence and by answering a few hypothetical investment questions.

Once you’ve signed up for an account, you will then have to submit your personal information, which includes your address, social insurance number, employment information, banking information and more.

After linking your bank account, you can begin depositing money into your Smart Money Capital Management account to start investing.

How to invest and withdraw funds

To fund your account, you need to fund your account with a minimum of $5,000 in order to use its robo-advisor services. To deposit money into your account, you can do so via a bank transfer, which should take two to three business days to show up in your Smart Money Capital Management account.

To withdraw funds, you can do so by placing a withdrawal request on the platform. Smart Money Capital Management will then place the trades to raise the required cash in your account. These trades will take three business days to settle and the custodian will then return your funds via electronic transfer to your bank account, which should take another one to two business days.

Bottom line

Smart Money Capital Management’s robo-advisor service utilizes its proprietary algorithm platform which seeks to smartly invest your money by diversifying your asset holdings in accordance with your risk tolerance. You’ll pay less in fees than you would with big investment firms, and you will have full access to your investment portfolio at any time of the day.

Frequently asked questions

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