Choosing an investment platform in Canada is more than picking the cheapest option. It should be secure, transparent, and aligned with your goals. Here are the biggest red flags to watch out for:
1. High or Hidden Fees
Watch for excessive management fees, trading commissions, or inactivity fees. Even a 1% annual fee can significantly reduce your returns over time.
2. Limited Investment Options
Some platforms only offer proprietary funds or restrict access to global markets. Ensure you can invest in a wide range of ETFs, stocks, and funds.
3. Poor User Interface or Mobile App
Clunky apps and websites make it harder to manage your money efficiently. Look for user-friendly design and responsive customer support.
4. Lack of Regulatory Oversight
Ensure the platform is registered with the Canadian Securities Administrators (CSA) and regulated by IIROC or the MFDA. Avoid platforms with unclear ownership or offshore registration.
5. Aggressive Upselling or Promises of Guaranteed Returns
No legitimate investment platform will promise guaranteed profits. Be wary of platforms pushing complex or high-risk products without clear disclosures.
Choosing a transparent, well-regulated platform with fair fees and good tools is essential for safe, long-term investing.