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ModernAdvisor Robo-Advisor review

ModernAdvisor offers robo-advisor services from an expert team consisting of certified financial analysts that offer Canadians a diverse collection of investment portfolios.

There’s no pressure to sign up for an investment account with ModernAdvisor since you can try out the platform for free with $1,000 in “play money.”

Please note: All information about ModernAdvisor has been collected independently by Finder and this product is not available through this site.

ModernAdvisor provides robo-advisor services and is relatively new on the scene. It is based out of Vancouver, BC and on top of providing investment services, it is also legally bound to have its customers’ interests in mind first and foremost.

As a new robo-advisor company, ModernAdvisor seeks to simplify everything for you and this is reflected in its four main pillars: ultra-low-cost portfolios, growing with the market, a focus on simplicity and on-demand access to your investments.

What is the ModernAdvisor?

In terms of ModernAdvisor‘s robo-advisor offerings, you can expect a wide diversification of your portfolio while paying competitive management fees. The highlights of its portfolios include low-cost ETFs combined with smart indexing and technology to provide you with the best investment option for your risk threshold.

ModernAdvisor‘s portfolios are all tailored based on a person’s assessed risk tolerance and are put together by certified financial analysts (CFA), one of the highest designations in the investment industry. This legitimacy along with the low management fees should give customers peace of mind knowing that their money is being expertly invested.

To give you a taste of what ModernAdvisor offers, you can sign up for a 30 day trial account where you can use ModernAdvisor’s services and receive $1,000 in “play money” so that you can get an idea of how the platform and service work. If you happen to make some money before the 30-day trial period is up, and if you elect to sign up for a real investment account with ModernAdvisor, you get to keep and transfer over whatever profits you earned with your $1,000 in play money (you don’t get to keep the $1,000).

How much does ModernAdvisor cost?

One of its four pillars is keeping things simple and that’s exactly what ModernAdvisor does with its management fees. The management fees range from 0.35% - 0.50% and for those investing less than $10,000 it’s free.

The only other fee you’ll pay is the internal cost of the ETF investment products in your portfolio, which averages around per year. So, if you invest $25,000 to start, you should expect to pay around 0.75% in management fees.

What are the benefits of ModernAdvisor?

Diversified portfolios. Portfolios are created by certified financial analysts and are tailored to people’s appetite for risk and investment goals.

  • Keep more of your money. Low-cost ETFs coupled with low management fees means you get to keep more of your money to invest.
  • Trial account. There’s no pressure to sign up for an investment account with ModernAdvisor since you can try out the platform for free with $1,000 in “play money.”
  • Low fees. The management fees with ModernAdvisor are low and they keep getting lower the more you invest with the company.
  • On-demand access. You can access your account and your investments anytime and anywhere from your computer or mobile device.
  • Transparency of methodology. ModernAdvisor outlines on its website just exactly what it focuses on. It focuses on diversification benefits, a strict minimum 10-year investment track record and covered by at least one low-cost, high-quality ETF.
  • Fiduciary duty. ModernAdvisor has all of its clients’ best interests in mind and doesn’t spring hidden fees or commissions on you.

What should I watch out for?

  • Trial account. It’s easy to get excited when someone tells you they will give you $1,000 to start, but you need to know that this is not real money and you will not be able to keep it if you do open up a real investment account with ModernAdvisor.
  • Legitimacy. ModernAdvisor is still relatively new to the robo-advisor scene and does not have the same established reputation as some of the other bigger players.
  • 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 ModernAdvisor‘s robo-advisor, you need to meet the following eligibility requirements:

  • Be at least 18 years of age.
  • Be a Canadian citizen or resident of Canada.
  • Have a social insurance number and a piece of government-issued identification.

How to apply

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

Sign up for an account on ModernAdvisor‘s website by providing your investment goals, investment type accounts and entering your first and last name as well as your email address.

Once you’ve set up an account, you will then be asked to complete ModernAdvisor‘s “risk appetite quiz” where it will ask you questions to ascertain your risk tolerance when it comes to investing your money.

After completing the questionnaire, you will then be required to submit your personal information including your social insurance number, images of the front and back of your government-issued ID and your bank account information.

How to invest and withdraw funds

Once you’ve completed all the steps outlined in how to apply, you’re now ready to begin investing and withdrawing funds. To begin investing, you can initiate a deposit into your account by clicking on “Transfer” in the ModernAdvisor dashboard. It’s worth noting that any transfer from your bank to your ModernAdvisor account is subject to a four-day hold before it becomes available for investing.

To withdraw funds, you can submit a withdrawal request from your ModernAdvisor dashboard.

Compare other robo-advisors

Name Product Min. Deposit Funding methods Management fee Available Asset Types
OFFER
Wealthsimple Invest
$1
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0.40% - 0.50%
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Get a $50 bonus when you open and deposit $500 in your account. Trade and Cash accounts are not eligible.
Questwealth Portfolios
$1
Direct deposit, Bank transfer
0.20% - 0.25%
Stocks, Bonds, ETFs, Commodities
A robo-advisor offering low fee portfolios that are actively managed and dynamically rebalanced when market conditions change.
Moka
$0
Automatic bank withdrawals
$3.99/month
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The Moka app rounds up every purchase you make to the nearest dollar and invests the spare change into low-cost exchange-traded funds (ETFs).
OFFER
Justwealth
$5,000
Direct deposit, Bank transfer, Automatic bank withdrawals
0.50%
ETFs
Receive a cash bonus of $50.00-$500.00 when you open a new Justwealth account. RESP accounts require no minimum deposit to begin investing.
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Bottom line

If you’re looking for a robo-advisor that is low on fees and high on diversified investment strategies, ModernAdvisor might be the option for you. It is run by chartered financial analysts and it has a fiduciary duty to always make investment decisions that are in your best interests.

Finder’s guide to robo-advice

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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