Do it yourself ETFs / Discount brokers:
ETFs can cost as low as 0.06% a year. This method is by far the most cost efficient option.
For this option you will be designing and maintaining your investment portfolio yourself much like the TD e-series method above. There are guides out there that will make this easier, but ultimately you still need to understand which ETFs to purchase, how to purchase them, and how to balance and rebalance your portfolio. The process to learn this will take you anywhere from 10 to 20 hours. The good news is once you learn you’ll only spend around 1-2 hours a year afterward doing only basic math! I suggest booking a financial consultation with me to help speed this learning process along and ensure you are heading in the right direction.
There are many discount brokers out there. The two brokers I recommend are Questrade and Virtualbrokers because they both have ZERO fees for purchasing ETFs. Only on the sale of an ETF will you be charged a commission (between $5 to $10 per trade). If you’re buying and holding, you won’t be paying that commission for a long time. Most banks have their own broker you can sign up for but they (surprise, surprise) charge way more in fees than is necessary. A bank can charge you up to $30 just for making one ETF purchase!
Although both Virtual Brokers and Questrade offer free ETF purchasing, Questrade has a simpler user interface and less overall account fees. Questrade especially saves money if you’re dealing with US currency since Virtual brokers does not use “Norbert's gambit” which significantly reduces foreign currency exchange fees. Both have small minimum account requirements, but I suggest having at least $15000.
If you choose Questrade you will receive $50 in free trades if you sign up with this link. Using this link supports me financially and every extra dollar allows me to help more Canadians. By using this link you can avoid paying fees for trading your ETFs until you actually SELL them since you can purchase ETFs for free with Questrade. You might not sell an ETF for years. This is another reason why managing ETFs on your own is the most cost efficient investing method by far.
Summary of the ETF method:
-Suggested initial account size of $15000 or more
-Considerable initial research but once the process is learned it becomes very simple
-Most customizable method of all, greatest amount of choices and freedom
-Most cost efficient method with annual fund fees as low as 0.06%
Questrade sign-up link for free $50 in trades →
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