Robo-advisors have made investing more accessible than ever thanks to their low-fee cost structure and simple user experience. The number of Canadians using robo-advisors is expected to increase by over 600% in the 10 years from 2017–2027.
Quicky summary:
The number of Canadians using robo-advisors is forecast to increase from 278,000 in 2017 to 1,993,000 in 2027. This is an increase of 617%.
The average funds under management per user is also expected to balloon; doubling from $11k in 2017 to $22k in 2027.
This means that funds under robo-advisor management will hit $44.59 billion within five years.
Robo-advisor market in Canada
Robo-advisor assets under management in Canada are expected to increase 107% in the next five years, up from $21.53 billion in 2022 to 44.59 billion in 2027.
AUM is expected to increase by 21% YoY in 2023, 19% in 2024 and 15% in 2025.
2021 saw a huge growth in robo-advisor users, up 30% year on year. 2022 is also expected to experience significant YoY user growth of 18%.
In 2017, the average Canadian robo-advisor user had $11k invested. This is expected to double to $22k by 2027.
2021 saw 12% growth in the average funds under management with robo-advisors. This is set to remain largely stable in 2022 with just 1% of YoY growth.
Robo-advisor products in Canada
The first robo-advisor was launched in Canada in 2014. There are now around 14 robo-advisors available.
Many robo-advisors have no minimum investment amount. Others have a minimum as low as $1,000.
Robo-advisors may be members of the Canadian Investor Protection Fund or the Investment Industry Regulatory Organization of Canada, meaning your investment up to a certain amount may be insured.
Many funds offer socially responsible investing and some even offer halal investing.
Global robo-advisor market
The United States currently has the most funds under management (FUM) by robo-advisors ($1,164bn), followed by China ($113bn), Japan ($58bn), the UK ($29bn), Italy ($24bn), Germany ($22bn), France ($21bn), South Korea ($17bn), Canada ($16bn) and India ($15bn).
While the top 10 countries by FUM will be the same in 2027, India will have risen up the list to place fifth with $46 billion under management.
The countries that will have the biggest percentage increase in robo-advisor FUM over the next five years are Ukraine (957%), Sudan (720%), Benin (578%), Niger (500%), Turkmenistan (500%), Pakistan (499%), Cameroon (495%), Burkina Faso (442%), Togo (440%) and New Zealand (409%).
The countries that will have the biggest dollar value increase in robo-advisor FUM over the next five years are the United States (+$1,029bn), China (+$63bn), the UK (+$34bn), India (+$30bn), Japan (+$29bn), Argentina (+$22bn), Ukraine (+$20bn), Sudan (+$20bn), Canada (+$17bn) and Australia (+$17bn).
Was this content helpful to you?
Thank you for your feedback!
To make sure you get accurate and helpful information, this guide has been edited by David Gregory as part of our fact-checking process.
Susannah Binsted is the international PR manager at Finder. Susannah has a Bachelor of Communication and a Bachelor of International Studies from the University of Technology Sydney. See full bio
Thinking of opening an Ally Bank account to start growing and managing your money? Find out if Ally Bank is available to Canadian investors and savers.
Robo- and human financial advisers offer different benefits for portfolio management.
Feedback
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
