When it comes to growing your wealth, you have two main options: online investing through a self-directed platform or choosing to work with a wealth advisor. Whether you’re new to investing or a long-time pro, you might be wondering which approach is right for you. 

Do-it-yourself (DIY) platforms like Qtrade Direct Investing® make it simple and affordable to start. While working with a Mainstreet and Aviso Wealth advisor, you’ll receive high-quality personalized advice and flexible solutions that are tailored to you. For first-time investors just starting, extra support from an advisor may be valuable for you.  

In this blog, we’ll compare DIY investing and advisor-led investing, explore the pros and cons of each and help you decide what might be the right fit for you.

DIY Online Investing

If you prefer to have full control of your investments, DIY investing could be a perfect fit. These self-directed investing platforms allow you to manage your portfolio without an investment advisor. At Mainstreet Credit Union, we partner with Qtrade Direct Investing®, one of Canada’s leading online trading platforms. Qtrade® offers self-directed investing with low fees, $0 commission trades, strong research tools, and award-winning customer service. Qtrade® is perfect for investors who want flexibility and independence while staying connected to the credit union. 

With Qtrade Direct Investing®, you can enjoy great perks like: 

  • A simple and easy-to-navigate dashboard 
  • Educational guides and videos so you can learn as you go 
  • In-depth plans to evaluate investing ideas and review your portfolio 
  • Award-winning, friendly client service, just as you expect from a credit union partner 

Compared to advisor investing, DIY investing has several advantages and drawbacks that should be considered: 

Pros: 

  • Low Costs: DIY apps tend to have lower fees and minimums compared to advice-based investing 
  • Smaller Barrier to Entry: Easy to start and automate your investments 
  • Learning Experience: Build your knowledge by managing your own portfolio 
  • Stay Connected: Stay within the credit union with a DIY investing app that shares the same values as Mainstreet 

Cons: 

  • Limited Personal Advice: You won’t get personalized and tailored advice 
  • Emotional decisions: Panic selling, or impulse decisions, are harder to navigate without expert support 
  • Accountability: You’re responsible for your own investments, whether they’re successful or not. 

If you’re confident in your research, decisions, and investing abilities, DIY investing might be the right fit for you. It gives you independence, flexibility and a chance to learn as you go. Plus, Qtrade Direct Investing® keeps things simple and affordable while staying connected to the credit union values.

Advice-Based Investing

If you prefer a more hands-on partner approach, working with a Mainstreet and Aviso Wealth Advisor or what some call advice-based investing, could be best for you. It‘s best for people who want expert advice, guidance, and a long-term financial plan built around their financial goals. Unlike DIY investing, you’ll have a human-to-human experience and someone to help you stay on track. 

Working with an advisor, like many other professionals, comes with a cost. Fees can range in type depending on the financial institution you work with. While this can be viewed as a disadvantage to some, the value and expertise that an advisor can provide can far outweigh the expense. 

Here are the pros and cons of working with a financial advisor:

Pros 

  • Clear Financial Goals: Advisors help you define your financial goals, a path to get you there and how to achieve them 
  • Financial Literacy: Our Mainstreet and Aviso Wealth Advisors can educate you so you can make informed decisions and avoid common mistakes 
  • Comprehensive Planning: Financial advisors often offer additional planning, retirement strategies, tax planning and estate planning – all included in the fees charged 
  • Increased Performance: Studies show people who work with a financial advisor often build more wealth over time  
  • Optimism in Your Future: 60% of Canadians who work with a qualified financial professional report feeling more optimistic and secure about their financial future year over year 

Cons: 

  • Management Fees: Fees are typically higher than online investing or robo-advisor platforms 
  • Quality Variance: It’s important to gather advisor credentials and experience to ensure the advice you’re receiving is accurate 
  • Wrong Fit: Not every advisor aligns with your style or priorities 

Our Mainstreet and Aviso Wealth Advisors offer high-quality personalized advice, flexible solutions and ongoing support. Our advisors make investing easy and responsive, tailoring your financial plan to your goals, risk tolerance and life events. 

Comparing DIY Investing vs Advisor-Based Investing

When you look at the differences between DIY investing and advisor-based investing, investors working with a financial advisor typically see higher net returns over time. That’s often because DIY investing can be affected by emotional reactions, lack of diversification, poor timing and tax inefficiencies, which can lead to underperformance. 

Advisor-assisted investing typically delivers higher returns not because the advisor picks better investments, but because they help you stay disciplined, manage risk more effectively, optimize task and follow a consistent long-term strategy.

What’s Right for You

So, which approach is best for you? It really depends on your comfort level and goals. If you feel confident in your investing ability and want to keep costs low, DIY investing through Qtrade Direct Investing® could be a great fit. You’ll enjoy flexibility, independence and a chance to learn as you go. 

On the other hand, if you’re looking for high-quality personalized advice, a financial plan tailored to your life and your goals, with more strategic planning, a financial advisor may be the better choice. 

If you’re still unsure what is right for you, our Mainstreet and Aviso Wealth Advisors are here to help. We can help choose the best approach for you. 

If you’re ready to get started with advice-based investing, book an appointment with one of our Mainstreet and Aviso Wealth Advisors. If you’re ready to start investing on your own, open a Qtrade Direct Investing® account today.

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes and it is not intended to provide specific advice including, without limitation, investment, financial, tax, or similar matters.