How to start investing: robo-advisor, DIY or bank advisor

🔴 Advanced · Step 17 of 22 · Topic: Investing & Tax-Free Accounts

In one sentence

There are three common ways to start investing in Canada, and this post shows how to pick one, open the account inside a TFSA or RRSP, automate it and check that the company is registered.

Words to know

Robo-advisor: an online service that builds and manages a mix of funds for you, based on a short questionnaire.
Discount brokerage: an online account where you buy and sell investments yourself (DIY means “do it yourself”).
Registered account: an account with tax benefits, like a TFSA or RRSP. It is a “container”. You choose what goes inside it.
CIRO: the Canadian Investment Regulatory Organization. It oversees investment dealers and mutual fund dealers in Canada.
CIPF: the Canadian Investor Protection Fund. It protects your investments if a member firm goes bankrupt.

Step 1: Choose how much help you want

Most beginners pick one of three ways. Each one fits a different person. There is no single right answer.

	Robo-advisor	DIY discount brokerage	Bank advisor (mutual funds)
How it works	Answer questions online; it picks and manages a fund mix	You choose and buy ETFs, stocks or funds yourself	You meet a person who suggests funds, often the bank’s own
Help you get	Automatic rebalancing; some offer chat or phone help	Very little; you make all choices	Face-to-face help, often in a branch
Typical costs	A yearly management fee plus the funds’ MERs	Low-fee ETFs; some trades may have a commission	Often higher MERs; no separate advice bill
Good fit if	You want simple and hands-off	You are comfortable learning and staying calm	You want a person to talk to, in person
Watch out for	Fees still add up over time	Trading too often or picking “hot” stocks	High fees; products limited to one company

Checked October 2026. Fees vary by company, so compare the current numbers on each company’s website. See Step 16 for how much fees matter.

Step 2: Open the account inside a TFSA or RRSP

A TFSA or RRSP is not an investment by itself. It is a container. You open it at a robo-advisor, brokerage or bank, then you put investments inside.

In a TFSA, your growth is tax-free, and withdrawals are tax-free. See Step 14.
In an RRSP, you get a tax deduction now, and you pay tax later when you take money out. See Step 18.
If you have no room left in either, you can use a regular (non-registered) account. Growth there may be taxed.

To open an account, you usually need your SIN, a photo ID, your address and your bank account details. Most companies let you do it online in less than an hour.

Many people forget one thing. Moving cash into a TFSA is not the same as investing it. After the money arrives, you still need to buy the investments. A robo-advisor does this for you. In a DIY account, you do it yourself.

Step 3: Set up automatic monthly contributions

Pick an amount you can keep up every month, even a small one. Then set an automatic transfer from your bank account. Many people pick the day after payday.

Automation helps you invest without thinking about it.
It also means you buy at many different prices over time. We explain why this helps in Step 22.
You can usually change or pause the amount any time.

Start with an amount that leaves your budget (Step 3) and your emergency fund (Step 5) safe.

Step 4: Check that the company and the person are registered

Before you send money, check that the firm and the advisor are registered. In Canada, anyone who sells investments or gives investment advice generally must be registered with a securities regulator.

Use the CSA National Registration Search at aretheyregistered.ca. CSA means the Canadian Securities Administrators. It is the group of provincial and territorial securities regulators. You can search a person or a firm by name.
For advisors at CIRO-regulated investment dealers, you can also use the CIRO Advisor Report on ciro.ca.
Check the names carefully. Scammers sometimes copy the names of real firms.

Step 5: Understand CIPF protection

CIPF protects your investments if your investment firm becomes insolvent (goes bankrupt) and your money or securities are missing. Look for the CIPF member logo, or check the member list on cipf.ca.

Coverage limits per person at a member firm:

Up to $1 million for general accounts combined. This includes cash and margin accounts, TFSAs and FHSAs.
Up to $1 million for registered retirement accounts combined, like RRSPs and RRIFs.
Up to $1 million for RESPs, where you are the subscriber.

Important: CIPF does not protect you when your investments go down in value. It also does not cover bad advice or crypto assets. It is not the same as CDIC deposit insurance at a bank.

Example

Suppose you choose to invest $100 a month in a TFSA.

You set an automatic transfer on the 16th of each month.
After 12 months, you have put in $100 × 12 = $1,200.
After 5 years, you have put in $1,200 × 5 = $6,000.

The final value will be more or less than $6,000. It depends on how the investments do and on the fees. But the habit happens without extra effort. If your income grows, you can raise the amount, for example to $150 a month. That is $150 × 12 = $1,800 a year.

Common mistakes

Putting cash into a TFSA and never buying any investments.
Picking the option with the highest fees without asking about them.
Sending money to a person or website without checking registration.
Thinking CIPF protects you from market drops.

✅ My checklist

☐ I chose robo-advisor, DIY or bank advisor, and I know why
☐ I opened my account inside a TFSA or RRSP
☐ I set up an automatic monthly contribution I can keep up
☐ I checked the firm and the person on aretheyregistered.ca
☐ I confirmed the firm is a CIPF member

Next step → Step 18: RRSP vs TFSA: which one first?

More in this topic → Investing & Tax-Free Accounts

There are no affiliate or referral links in this post. This is general information, not financial, tax or legal advice; everyone’s situation is different. Figures were checked in October 2026 and can change.

Sources: CIPF: About CIPF coverage · CSA: Checking registration before investing · CIRO: Know your advisor, Advisor Report