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How to choose a financial advisor

How to choose a financial advisor in Canada

Miranda Marquit
Eric Esposito

Updated Apr 25, 2025

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Choosing the right financial advisor can have a major impact on your financial future. Whether you’re planning for retirement, investing for the first time, or navigating a complex financial situation, the right advisor can help you build a strategy and stay on track. With so many options available in Canada, it’s important to understand what to look for and how to find a fit that matches your needs and goals.

  1. 1. Understand different types of financial advisors
  2. 2. Identify the services you need
  3. 3. Determine how much you're ready to invest
  4. 4. Understand your budget for financial advice
  5. 5. Research potential financial advisors
  6. 6. Make your choice and take action

Money.ca takeaways

  • Take time to understand the various types of financial advisors, such as CFPs, RIAs, and robo-advisors, to find one that aligns with your financial goals.
  • Before choosing an advisor, clearly define what services you need — whether it’s budgeting help, retirement planning, or investment management.
  • Factor in how much money you’re planning to invest and what you’re comfortable spending on advisory fees, as costs and minimums can vary widely.
  • Always research an advisor’s credentials, check for complaints or disciplinary actions, and confirm they act as a fiduciary before committing.

Step 1. Understand different types of financial advisors

Not all financial advisors in Canada offer the same services — and titles can sometimes be misleading. Knowing the differences will help you choose someone who fits your needs and goals.

  • Financial coach: A good starting point if you need help with basic money habits like budgeting and saving. Coaches aren’t licensed to manage investments but can build your financial literacy and offer accountability.
  • Certified Financial Planner (CFP): In Canada, CFPs must meet high education, examination, and ethical standards through FP Canada. They're trained in budgeting, debt management, insurance, retirement planning, and investments.
  • Registered Financial Planner (RFP): Another respected designation overseen by the Institute of Advanced Financial Planners (IAFP). RFPs provide holistic financial planning.
  • Portfolio Manager: These professionals are registered with provincial securities regulators and manage investment portfolios with discretionary authority. They must act as fiduciaries.
  • Wealth Advisor: Designed for high-net-worth Canadians, they manage large investment portfolios and offer services like estate planning, tax strategies, and trust creation. Minimums often start at $500,000 or higher.

Step 2: Identify the services you need

Most financial advisors offer a mix of services, but not every advisor specializes in the same areas. Before you choose one, think about what you actually need help with — whether it’s building a budget, managing investments, or planning for retirement.

Service
What it involves
Best for those who...
Investment management
Managing your portfolio, rebalancing assets, and aligning investments with your goals and risk tolerance.
Want help building and managing a diversified investment portfolio.
Retirement planning
Estimating retirement income needs, setting savings goals, choosing RRSPs and TFSAs.
Are focused on preparing for long-term financial security.
Tax planning and preparation
Identifying tax-saving opportunities and possibly filing returns.
Want to reduce your tax burden and keep more of your earnings.
Budgeting and debt reduction
Creating a spending plan, paying off debt, and building healthy saving habits.
Need help managing day-to-day finances and improving cash flow.
Estate planning
Working with an estate attorney to set up wills, trusts, and beneficiary designations.
Want to make sure your assets are passed on according to your wishes.

Take a moment to jot down your priorities and financial pain points. If you’re trying to eliminate debt, look for someone with budgeting expertise. If you’re focused on long-term growth, an advisor with investment or retirement planning experience is a better fit. Keep these goals in mind as you compare options — the best advisor is one who meets your specific needs.

Step 3: Determine how much you're ready to invest

Some advisors have minimum investment requirements — especially traditional firms and wealth managers — while others, like robo-advisors, let you start with as little as $5.

Think about how much you’re comfortable investing right now. The amount you plan to invest can help narrow down your options:

  • Under $1,000: Consider robo-advisors or tech-assisted platforms.
  • $10,000 or more: You may qualify for custom advising with personalized service.
  • Over $100,000: You’ll likely have access to full-service advisors, including wealth and estate planning.

Step 4: Understand your budget for financial advice

Before you choose a financial advisor, make sure you understand how they charge for their services. Fees can vary widely based on the type of advisor and the level of service, and they’ll impact your overall returns.

Fee type
How it works
Best for those who...
Percentage of assets under management (AUM)
You pay an annual percentage of your investment balance, typically 0.5% to 1%.
Want ongoing investment management tied to portfolio size.
Flat fees
A set amount you pay annually or monthly, regardless of portfolio performance.
Prefer predictable costs and comprehensive financial planning.
Commissions
Advisor earns a commission when they sell certain investment products.
Are OK with potential conflicts and want low or no upfront fees.
Retainer fees
You pay a recurring fee (monthly or quarterly) for access to ongoing planning services.
Need regular check-ins but not day-to-day investment oversight.

Step 5: Research potential financial advisors

Check credentials and qualifications

In Canada, you can verify an advisor’s registration through:

  • CFP® (Certified Financial Planner): Trained in comprehensive financial planning
  • RFP (Registered Financial Planner): comprehensive advice
  • CFA® (Chartered Financial Analyst) or CPA: For specialized investment or tax expertise

Verify fiduciary status

Ask if the advisor is a fiduciary — someone legally required to act in your best interest. This is especially important if you want conflict-free advice, since non-fiduciary advisors may recommend products that benefit them more than you.

Look for reviews and complaints

Researching reviews for advisors that you're interested in can reveal any red flags, poor service patterns, or unresolved complaints. Search for the advisor or firm on:

  • Better Business Bureau (BBB) Canada
  • Provincial securities regulators for disciplinary actions
  • Review platforms like Trustpilot or Google Reviews

Ask the right questions

When you meet with or contact a potential advisor, be ready to ask:

  • What’s your investment philosophy?
  • How often will we meet or communicate?
  • How do you tailor your advice to each client?
  • Are there any conflicts of interest I should know about?

Step 6: Make your choice and take action

After researching and comparing different options, you should know which financial advisor to work with and how to allocate your funds. Also, remember you don't have to spend all your money with one advisor.

It's possible to work with multiple advisory services to take advantage of different specialties, services, and fees. For example, you could work with a personal CFP for help with budgeting and sign up for a robo-advisor to enjoy low fees on investments. 

If you decide to work with one or more financial advisors, be sure you account for an exit strategy. While not advisable, sometimes life happens and you need to withdraw money from an advisory account. The only way to prepare for unpredictable scenarios is to review penalties for early withdrawal and factor them into your investment plan. 

FAQs

  • What are things to look out for when choosing a financial advisor?

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    Focus on credentials (CFP, RFP), fiduciary duty, transparent fee structures, and specialization that matches your needs.

  • How can you identify a good financial advisor?

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    Good financial advisors share a few features, including credentials, transparent fees, and a proven track record of working as a fiduciary. You should also have an easy time communicating with your financial advisor and clearly understand all of their advice.

  • What is an average amount to pay a financial advisor?

    +

    Recent surveys suggest financial advisors usually charge approximately 1% on AUM, with higher rates for lower total funds. However, there's a wide range of fees nowadays, thanks to the increasing reliance on digital platforms. Robo-advisors tend to have the lowest costs, while those who offer classic one-on-one services have higher rates. Also, remember that some advisors charge different fee models like flat fees, retainer fees, and commissions.

  • How much money should you have before using a financial advisor?

    +

    Every financial advisor has a different minimum deposit, with some welcoming clients with smaller portfolio sizes and wealth managers only working with high-net-worth clients. Generally, robo-advisory services have the lowest minimums — sometimes just a few dollars — making them the most accessible if you want to start with limited savings. Otherwise, you'll need to research the different minimums for advisors to better understand how much to save ahead of time.

Miranda Marquit Freelance contributor

Miranda Marquit is a journalism-trained freelance writer and professional blogger specializing in personal finance. Her work has appeared and been mentioned, in various media, online and off.

Eric Esposito Freelance Contributor

Eric Esposito is a freelance contributor on MoneyWise with an interest in financial markets, investing, and trading. In addition to MoneyWise, Eric’s work can be found on financial publications such as WallStreetZen and CoinDesk. When not researching the latest stock market trends, Eric enjoys biking, walking his dog, and spending time with family in Central Florida. Eric holds a BA in English from Quinnipiac University.

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