RBC InvestEase is a robo-advisor from the Royal Bank of Canada and offers affordable online investment services. In addition to the algorithms that are associated with this digital platform, there is also a team of portfolio managers that work behind the scenes to make sure all portfolios are properly allocated and balanced to help clients reach their investment goals within their preferred time frame.
The platform promises a passive, hands-off investing strategy that makes it easy for both novice and experienced investors to invest wisely. Robo advisors like RBC InvestEase charge much lower fees than traditional human advisors, making this a more cost-effective option for investors.
The service also provides financial advice from real-life people who are available whenever you have a question or concern about your investment portfolio.
Let’s check out RBC InvestEase in more detail to see what they offer and help you decide if taking the robo-advisor approach to investing is right for you.
How Does RBC InvestEase Work?
To start investing with RBC InvestEase, you’ll first be asked to provide a little information about yourself, such as how much you plan to invest, why you want to invest, your risk tolerance, and what your timeframe for investing will be.
Within minutes, an investment plan will be recommended to you based on the answers you provide, and your portfolio will be comprised of a combination of hand-picked ETFs. Then, you select and open your account if you’re satisfied with the plan suggested for you. You can choose from a handful of accounts, including TFSAs, RRSPs, or a non-registered account.
After a portfolio advisor goes over your information and confirms your plan, you can log in to your account to deposit funds. You’ll need at least $100 to start investing, after which RBC InvestEase will invest those funds on your behalf.
You can keep track of your investment progress while the algorithms and portfolio managers do all the work. You can also set up or modify automatic contributions and your portfolio will be automatically rebalanced as required by buying and selling ETFs to ensure your progress stays on track. If you have any questions at any time, you can get in touch with a portfolio advisor via telephone or email.
Important Features to Consider When Choosing To Work With RBC InvestEase
Low minimum investment. While there is no minimum to open an account, you will need at least a $100 deposit to start investing.
Various account types. Choose from RRSP, TFSA, and non-registered accounts to invest with.
Range of portfolios. Choose from one of several portfolios based on your tolerance for risk and financial goals, which range from conservative to aggressive growth.
No-fee promotional period. If you open an RBC InvestEase account before December 31, 2020, you won’t pay any management fees for 6 months.
Transparent fees. RBC InvestEase charges a 0.5% annual management fee, along with MERs charged by the ETF manager (though no management fees are charged during the initial 6-month promotional period).
Automatic rebalancing. As soon as your portfolio strays by a certain amount, your portfolio will be automatically rebalanced to keep things in line with your investment goals.
Support. If you need any guidance from an expert, you can get in touch with a portfolio manager via telephone or email.
Socially responsible investing. Build your investment portfolio around ETFs from companies that share the same ethics as you.
Security. RBC InvestEase is backed by the biggest bank in Canada that’s been around for over 150 years.
How Much Does RBC InvestEase Cost?
RBC InvestEase charges annual management fees of 0.5%, regardless of the size of your portfolio. While some robo-advisors change their fees as investment amounts grow, RBC Invest Ease’s fees remain as is without a tiered structure. However, they are currently offering a promotion whereby these fees are waived for the first 6 months if you open an account before December 31, 2020.
There are also MER fees to pay, which depend on the type of investing you do:
- Standard Portfolio ETF MERs: 0.11% to 0.22%
- Responsible Investing Portfolio ETF MERs: 0.18% to 0.30%
How Personalized Are the Investment Portfolios?
RBC InvestEase’s platform establishes highly customized portfolios made up of just the right ETFs in the right amount based on your precise financial profile. Your risk tolerance, financial goals, and timeline to reach those goals are all taken into consideration to help create a portfolio that’s perfectly suited for you.
What Perks Does RBC InvestEase Have?
Start investing with a small amount. The barrier to entry of investing with RBC InvestEase is extremely low when you consider how little you need to get started. With as little as $100, you can start your investment journey with this platform.
Socially-conscious investing options. You can choose companies to invest in that have ethics and beliefs that align with yours. Whether you’re looking for a firm that has a minimal carbon footprint or believes in protecting animals, for instance, you can invest in a company with ethics that match yours.
Backed by RBC’s security. Your funds are heavily protected by RBCs robust platform that helps avoid the chances of security breaching.
Access to a host of ETFs. You’ll have the opportunity to tap into RBC’s suite of ETFs to choose from to add to your portfolio.
Low fees. Compared to the conventional investment advisor, RBC InvestEase’s fees are far lower, helping to keep more money in your pocket.
Portfolio advisors. You’ll have the benefit of having professional and experienced portfolio advisors accessible to ensure your portfolio stays the course towards attaining your financial goals.
Transfer fees covered. RBC will take care of up to $200 in transfer fees (when you transfer $15,000 or more).
Promotion. Save on management fees for 6 months when you open an RBC InvestEase account before December 31, 2020.
Who is RBC InvestEase Best Suited For?
RBC InvestEase is well suited for novice investors who are looking for a platform that allows smaller investment capital upfront and who don’t want to pay the exorbitant fees that are typical of traditional advisors. It’s also great for experienced investors who also want to save on management fees while also benefiting from the convenience of an all-virtual platform.
Wondering about online brokers? Check out our list of the best online brokers in Canada.
Current Promo Offers
RBC InvestEase is currently offering a no-fee 6-month period when you open an account before December 31, 2020.
Overview of RBC InvestEase
| Fees | – 0.5% per year management fees – MERs between 0.11% to 0.30% |
| Minimum investment | $100 |
| Automatic rebalancing | Yes |
| Financial advice | Yes |
| Automatic deposits | Yes |
| Socially responsible investing options | Yes |
| Tiered price discounts | No |
| Mobile app | No |
| Account types | – RRSP- TFSA- Non-registered accounts |
| Fractional shares | No |
Should You Use RBC InvestEase Or Work With a Human Advisor?
Before you decide to work with a robo-advisor like RBC InvestorEase or a human advisor, consider the perks of each:
Pros of robo-advisors:
- Low fees. One of the biggest benefits of robo-advisors is the affordability that comes with using them. Their fees are a fraction of what you would pay with a traditional advisor.
- Passive investing. If you like the idea of a hands-off approach to growing your money, then a robo advisor may be perfect for you.
- Automation. Robo advisors automatically rebalance your portfolio to make sure it stays on the path towards helping you reach your financial goals.
- Simplicity. Robo advisors make investing as easy as possible rather than taking a complete DIY approach to your investments.
- Low capital required. While different robo-advisors have slightly different minimum investment amount requirements, they generally allow very low capital to start.
Cons of human advisors:
- Highly personalized. Robo advisors customize portfolios for clients, but there’s nothing like having a personal touch of a human advisor working on your behalf.
- Identify issues and areas of opportunity. Human advisors can pinpoint any areas of concern or any opportunities to make improvements.
Final Thoughts
If you’re looking for a robo-advisor to invest with, RBC InvestEase is one that should make your shortlist. With low fees, customized portfolios, and the backing of one of the banking giants in Canada, this particular investing platform offers a simple, passive, and affordable way to invest without the hurdles and barriers that are often typical of big-time investing.
