Questwealth Review: All you need to know about it!

November 2, 2020
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Questwealth Portfolios comes to the robo advisor scene in 2018 (back then being called Portfolio IQ) and has been steady in the game ever since. Offering low fees, socially responsible investing and five portfolio choices going from Aggressive to Conservative to accommodate most investors. Here is all you need to know about it.

What is Questwealth Portfolios?

Questwealth Portfolios is a robo advisor offered by the Canadian online broker Questrade. This brokerage was founded back in 1999 and went from being a discount brokerage to being one of the country’s biggest brokerage firms. In 2018, their robo advisor Portfolio IQ is renamed as Questwealth. 

Just like any other big bank robo adivsor, Questwealth is covered by the CDIF (Canadian Investor Fund) along with the IIROC (Investment Industry Regulatory Organization of Canada). 

How to open an account with Questwealth?

Here are the steps you need to follow to open an account with Questwealth: 

  1. To open an account with this robo advisor, enter their site and choose this product.
  2.  Fill in your basic user information such as email and phone number. 
  3. Create your username and password.
  4. Set up your security questions. 
  5. Once that part is done, you will be required to set up your portfolio type and choose which kind of account you want to hold the portfolio in. 
  6. Finally, fill in your personal and employment information answering standard questions that financial institutions usually require. You will also be required to show proof of citizenship for tax-reporting purposes.

Account Types

Questwealth offers an array of account types depending on your needs, you can get them based on whether you’re retired, looking for education funds or just there for the short term. These are the most popular account types they offer:

TFSA (Tax-free savings account:

  • Ideal for short or long term goals
  • Tax-free growth
  • Earn capital gains and dividends tax-free
  • Access your money easily. 

RRSP (Registered Retirement Savings Plan)

  • Save for retirement goals
  • Tax deductions on yearly contributions
  • Allows you to set up regular contributions
  • The sooner you start, the more you can save. 

Cash

  • Ideal for short term goals
  • Easy access to your funds
  • Has no contribution limits
  • You can invest with flexibility

RESP (Registered Education Savings Plan):

  • Government grants
  • Tax-deferred growth
  • Your gains are protected in a tax-sheltered account
  • Withdrawals at a lower tax bracket. 

These are Questwealth’s most popular account types, however, if you don’t feel like these are for you, check here for more account types for other situations. You have the Joint Cash account, Family RESP, Spousal RRSP and Lira, among others! 

Questwealth Portfolios Review: An Overview

We've analyzed all the nitty-gritty details about the different features of this robo advisor and scored it on a 10 points scale on 10 different categories. The following table summarizes Questwealth's scores.

Minimum Deposit 6
Service Fees10
MER Fees8
Portfolio Options5
Portfolio Performance6
Usability6
Withdrawal and Deposit options10
Human Advice 10
Customer Service10
Referral Program10
Total75       
We recommend  Questwealth Portfolios You want a portfolio actively managed by advisors. You look for very low management fees.

We don’t recommend Questwealth Portfolios You prefer automated robo advisors, in which case you should check our post on Wealthbar

#1 Minimum Deposit

The minimum deposit for this robo advisor is $1,000. It is a very regular amount when comparing it to other advisors such as Wealthbar and ModernAdvisor. If you want a robo advisor that has no minimum deposit, try checking our post on Wealthsimple and Nest Wealth. 

Questwealth Portfolios Review  Minimum Deposit Score:6/10

#2 Service Fees

What’s great about this robo advisor is that it charges very low service fees. It ranges from 0,25% for balances ranging from $1,000 to $99,999. And then it goes to 0,20% on balances over $100,000. This means that for a balance of $25,000 you’d be looking to pay $5 a month. Additionally, Questwealth doesn’t charge account opening or closing fees, no trading fees or electronic fund transfer fees. 

In comparison to other robo advisors like Wealthsimple and ModernAdvisor that charge 0,40%, this fee is really good. The lowest among Canadian robo advisors.

Questwealth Portfolios Review  Service Fees Score: 10/10

#3 MER Fees

MER stands for Management Expense Ratio, this is the fee that mutual or exchange-traded funds have. It is charged by the fund company that manages them and it is built into its overall price. Questwealth only invests in ETFs, so each portfolio has an MER associated with it. 

Questwealth Portfolios Review MER Fees Score: 8/10

#4 Deposit and Withdrawal Options

Questwealth offers its users good options to deposit and withdraw their funds. For deposits:

  • You can make a transfer from your bank account.
  • Use the Interac e-transfer.
  • Set up pre-authorized deposits.
  • Pay your bills.

As for withdrawal options, you have:

  • Bank transfers 
  • Cheques to get your funds

Overall, it compares pretty well to very much all other robo advisors. 

Questwealth Portfolios Review  Deposit & Withdrawal Options Score: 10/10

#5 Portfolio Options

Questwealth offers five portfolio options going from aggressive to conservative to suits each user’s needs. These globally diversified ETFs offer a match for every investor.

Aggressive

This one is great for higher-risk investors looking to maximize growth. This portfolio invests in 100% equity, which tends to fluctuate with the market but also typically offers the highest potential returns. This is its asset allocation:

  • Canadian equity: 32%
  • U.S. equity: 30%
  • International equity: 36%
  • Fixed income: 0%
  • Cash: 2%

Growth

This one is great for medium to high-risk investors offering a better than average asset growth. To deliver this, this portfolio invests in approximately 80% equity and 20% in fixed income. This is its asset allocation:

  • Canadian equity: 26%
  • U.S. equity: 25%
  • International equity: 29%
  • Fixed income: 18%
  • Cash: 2%

Balanced

This portfolio is ideal for medium risk investors who want growth with a moderate risk level. This portfolio invests 60% equity and 40% fixed income. The cash flow is steady and mixed with some potential gains. This is its asset allocation:

  • Canadian equity: 19%
  • U.S. equity: 18%
  • International equity: 23%
  • Fixed income: 38%
  • Cash: 2%

Income

For medium to low-risk investors, this portfolio is ideal since it invests 60% in fixed income and 40% in equity. Tends to offer consistent returns and its asset allocation is:

  • Canadian equity: 13%
  • U.S. equity: 12%
  • International equity: 15%
  • Fixed income: 58%
  • Cash: 2%

Conservative

This last one is ideal for low-risk investors. It preserves the capital and invests 80% in fixed income and 20% in equity. This is its asset allocation: 

  • Canadian equity: 6%
  • U.S. equity. 6%
  • International equity: 8%
  • Fixed income: 78%
  • Cash: 2%

Questwealth also offers Socially Responsible Investing with five tiers just like these portfolios, for investors looking to have their capital and values aligned.

And while these portfolio choices are all good, sadly it doesn’t offer much personalization beyond those. For more personalized portfolios, check ModernAdvisor and JustWealth. 

Questwealth Portfolios Review Portfolio Options Score: 5/10

#6 Portfolio Performance

Looking at their portfolio annualized growth rate which is about 4,56% we could say that it is below average, especially compared to 5,82% and 5,02% from WealthBar and Nest Wealth respectively. That being said, it is wise to always remember that past portfolio performance does not affect the current performance nor can it predict it.

Questwealth Portfolios Review  Portfolio Performance Score: 6/10

#7 Human Advice

This robo advisor combines a hybrid model, meaning that there are actual financial advisors behind the management of your portfolio which you can consult and ask any inquiries you may have, for no additional cost.  Having people actively managing the portfolios should make the cost of using Questwealth higher, but they manage the keep low costs and the advisors for no additional charges, which is great! 

Questwealth Portfolios Review  Human Advice Score: 10/10

#8 Usability 

Questwealth has a website and app. The app has a rating of 1,4 on the Google Play Store and 1,9 on the Apple Store. Most users complain about how the app just doesn't work properly and presents bugs since its updates. 

As for the website, it is a very complete site and the layout is user-friendly. Most users prefer to use the website rather than the app for this. Although one major dealbreaker regarding the Questwealth site is that it is within the Questrade site since it is a product of the broker. 

Questwealth Portfolios Review  Usability Score: 6/10

#9 Customer Service

 Questwealth offers an array of options to get in touch with them. In case of any inquiries regarding the service or doubts you may have, you can:

  • Call them: 1.888.783.7866 (Toll-Free)
  • Chat with them: Also available in their website. 

And they have a physical address as well:

5700 Yonge Street, Unit G1

Toronto, ON

Canada

M2M 4K2

Monday to Friday: 9:00am to 5:00pm ET

Questwealth Portfolios  Customer Service Score: 10/10

#10 Referral Program

With their referral program, if you sign up using your friends QKey and you get a month free of Questwealth. You can read more about it here. 

Questwealth Portfolios Review Referral Program Score: 10/10

Who Should Sign Up For Questwealth Portfolios?

Questwealth Portfolios are a great choice for those looking to have small investments managed with very low fees, keeping in mind that the higher the balance, the higher the fee. If you want a robo advisor that is also actively managed by advisors, this is also a great choice for you. 

If you prefer more automated robo advisors, then perhaps you should check WealthSimple and Wealthbar. You can check our posts on those too to know more about them! 

But ultimately, if you want the lowest fees, SRI portfolios and an actively managed robo advisor, then you should give Questwealth Portfolios a chance. 

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