CI Direct Investing is an online wealth management platform that combines a robo-advisor with access to human advisors. It shouldn’t be confused with CI Direct Trading, CI Financial’s self-directed investing platform.
The ability to fully automate your investments and reach out for financial planning advice when needed sounds terrific, but is it too good to be true? And, if you’re new to investing, should you even bother with a robo-advisor or invest through a self-directed trading platform? Find out in this CI Direct Investing review.
-1741373750.png)
Who is CI Direct Investing best for?
CI Direct Investing is ideal for those who want access to financial planning services without hiring a financial planner and don’t mind putting their investments on auto-pilot. It supports most account types with several portfolio options, including socially responsible and private asset portfolios. You can even open a high-interest savings account with no minimum balance requirement.
CI Direct Investing is also a compelling option for Canadian expats, who can open an account and invest while non-residents of Canada, with some restrictions. On the other hand, if low fees are your top priority, there are lower-cost robo-advisors, including Wealthsimple and Questrade's Questwealth Portfolios.
CI Direct Investing offers the following account types:
- Non-registered accounts (Single, Joint, Trust, Corporate)
- TFSA
- RRSP
- Spousal RRSP
- RRIF
- Spousal RRIF
- LIF
- LIRA
- RESP
Accounts not currently offered include First Time Home Savings Accounts (FHSAs) and the Registered Disability Savings Plan (RDSP).
Related: Investment account types in Canada
CI Direct Investing pros and cons
Pros
-
Easy online account opening
-
Available to Canadian expats (limits apply)
-
All clients have access to human advisors
-
Access to private investment portfolios
Cons
-
High management fees versus competitors
-
Not a CIPF member
-
High MERs on private portfolios
CI Direct Investing fees and commissions
Like many managed investing platforms, CI Direct Investing charges an annual management fee on the money you invest across your CI accounts. Here’s how it breaks down:
Additionally, there are no fees for account deposits or withdrawals. CI Direct Investing will even reimburse up to $150 of outgoing transfer fees when you move at least $25,000 to CI from another financial institution.
Related: How to switch brokerages
Remember that the underlying ETFs in your CI Direct Investing portfolios are subject to fees, such as MERs, which are standard for any investment fund.
CI Direct Investing’s 0.60% management fee is on the high side compared to other Canadian robo-advisors. For example, Wealthsimple’s fee of 0.50% drops to 0.40% on balances over $100,000. And, QuestWealth Portfolio’s fees are even cheaper: 0.25% for $250 to $99,999, then 0.20% for $100,000 and up.
CI Direct Investing’s investing platform appears clean and modern, with easy navigation options on both the desktop and mobile apps. Visually, it reminds me of ModernAdvisor, another investing platform I reviewed recently.
I like that the mobile app gives you the option of viewing your entire portfolio as well as your individual accounts. There’s a dedicated Transfer screen to add, transfer or withdraw funds and view your transfer history.
You can also view your portfolio’s asset allocation and holdings and message a CI Direct Investing Advisor to ask questions or arrange a call.
Research and education
As a robo-advisor platform, CI Direct Investing offers little in the way of investment research tools. You can access several investing tools, including savings, net worth, retirement, estate planning calculators and articles sharing personal finance insights.
Customer service and support
You can contact CI Direct Investing Support by telephone at 1-877-310-1088 (Press 2 for CI Direct Investing) or by email at [email protected]. That said, they have a helpful online chat feature, which I used, and I reached a human advisor within a few minutes who could answer my question (it may take longer).
A perusal of CI Direct Investing-related Reddit threads shows that overall, users seem satisfied with its products and services. A common sentiment was that it’s like any other robo-advisor. People seem to like its high-interest savings account, which currently offers a 2% return with no monthly fees or minimum balance.
While that’s better than what you’ll find at most traditional banks, CI Direct Investing is not a CDIC-member institution, so CDIC does not cover savings account deposits. I noticed multiple comments about this online. However, as mentioned elsewhere in this article, accounts are protected through the Canadian Investor Protection Fund (CIPF).
What I like (and don’t) about CI Direct Investing
I like, make that love, that CI Direct Investing allows you to book a call with an advisor anytime.
And you can initiate contact almost immediately using its convenient online chat feature. It adds a human touch to an otherwise automated investing platform. Other likes include CI’s high-interest savings account, the ability to invest in private portfolios, and access to Canadian non-residents.
That’s right. If you are a Canadian citizen living abroad, you can invest with CI Direct Investing. There is a $25,000 account minimum, you must have a Canadian bank account, and there are some country restrictions – you cannot reside in a country subject to Government of Canada sanctions or located in the European Economic Area – but it’s a nice option to have if you qualify.
Unfortunately, my main dislike is a big one. That is, the management fees are high compared to other robo-advisors. You have to hold over $150,000 to get fees below 0.60%. Questrade’s standard management fee is only 0.25% on its Questwealth portfolios.
You’re paying a premium with CI Direct Investing for access to financial planners, but not everyone wants or needs that service. And, while I like that CI offers private portfolios, the MERs are as high as 1.66%.
Ultimately, you’ll need to decide if it’s worth paying higher management fees for access to financial advice.
CI Direct Investing compared
CI Direct Investing vs. Wealthsimple
Wealthsimple is a leading Canadian robo-advisor. It offers slightly lower fees than CI Direct Investing and no minimum investment amount (CI’s minimum investment is $100). Wealthsimple clients can also access financial advisors to answer investment-related questions. However, you must qualify for its higher tiers to receive more comprehensive advice.
CI Direct Investing offers all clients general support, financial planning services and answers to portfolio questions. If you’re less concerned with advice, Wealthsimple is the more affordable choice. If you want more customized advice, even for a smaller account, it might be worth paying the slightly higher fee to deal with CI Direct investing.
CI Direct Investing vs. Questrade
Questrade is a leading Canadian online brokerage. However, it also offers a robo-advisory service called Questwealth Portfolios. The main advantage of these portfolios is cost – their management fees (0.20% to 0.25%) are considerably lower than CI Direct Investing. Both firms offer socially responsible investing (SRI) portfolios.
What Questwealth doesn’t offer is financial advice. You can contact a customer support representative for help with your account, but you can’t access investment advice. If that’s not a big deal, you’ll save on fees with Questwealth. If you’re willing to pay a premium for the human advice component, consider CI Direct Investing.
CI Direct Investing vs TD Direct Investing
Based on their names alone, CI Direct Investing and TD Direct Investing might sound similar, but it’s apples and oranges. CI Direct Investing is a robo-advisor platform offering a range of managed portfolios and advisor access. TD Direct Investing is a self-directed online brokerage offering a fully DIY investing experience with no advice component.
If you’re looking for a fully automated investing experience and the ability to get advice when needed, CI Direct Investing (or a similar robo-advisor) is the way to go. On the other hand, if you want complete control over your investments, including access to individual stocks, ETFs, bonds, GICs and more, you’ll want to consider TD Direct Investing or a similar brokerage.
FAQ
Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.
Best investing content
Other robo advisors
Other robo advisors
Latest Articles
Disclaimer
The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.
†Terms and Conditions apply.