Summary: Most wealth managers at higher asset levels charge a percentage of the assets they manage, but the headline rate is not the whole cost. Fund expenses, trading, custody and GST all add up, so the useful comparison is the total annual cost in dollars and exactly what it buys.
The short answer
Most wealth managers serving clients at the $5 million to $20 million level are paid an annual fee calculated as a percentage of the assets they manage, usually on a tiered schedule in which the rate falls as the portfolio grows. Others are paid through commissions or fees embedded in the funds they recommend, a flat annual retainer, or hourly charges for planning. What matters most is not the headline rate but the total annual cost in dollars, including the manager's fee, the costs inside any funds held, trading and custody charges and GST, which applies to portfolio management fees in BC.
There is no single right price, because the value depends on what the fee covers. A fee that pays for discretionary management, tax-aware coordination across a holding company and registered accounts, and ongoing planning is a different service from one that pays for a model portfolio. The useful test is whether you can name, in dollars, what you pay each year and what it buys.
At this level of wealth, every tenth of a percentage point is real money. On $10 million it is $10,000 a year.
Why fees are hard to compare
Few founders would sign a supplier contract without knowing the total price, yet fees in wealth management have historically been difficult to see. Part of the cost may be charged directly to the account, part may be embedded in fund expenses and never appear as a separate line, and part may sit in trading spreads or custody charges. Two firms quoting the same percentage can deliver very different total costs and very different services.
The rules have moved steadily toward transparency. Registered firms have provided annual reports on the charges you paid and your account's performance since 2016, and from 2026 those reports must also show the costs inside investment funds in dollars, so the first full picture of total costs arrives in reports delivered in early 2027. Until then, and for anyone comparing firms before signing, the responsibility for asking falls largely on the client.
A fee you cannot see is still a fee you pay.
How are wealth managers paid in Canada?
The main models differ in how directly the cost is visible and in the incentives they create.
| Model | How it works | What to watch for |
|---|---|---|
| Percentage of assets | An annual fee, usually tiered, charged on the value of the portfolio | Whether fund costs are on top; how the tiers apply to a large account |
| Embedded in funds | The advisor is paid through fees built into the funds held, such as trailing commissions | Costs are less visible; incentive to recommend particular funds |
| Commissions | A charge on each trade | Incentive to trade; costs vary year to year |
| Flat retainer | A fixed annual fee for a defined service | What is included as needs change |
| Hourly or project planning | A fee for a plan or advice, with investments managed elsewhere | No ongoing management; implementation is up to you |
| Performance fee | A share of returns above a benchmark, usually alongside a base fee | How the benchmark is set; incentive to take more risk |
Percentage-of-assets fees are the most common model for discretionary portfolio management at this level, and the fee is typically charged quarterly or monthly. Because the fee rises and falls with the portfolio, the manager's interest is broadly aligned with yours, although it can also create an incentive to keep assets under management rather than, for example, recommending that money be used to pay down debt.
Embedded fees and commissions have been reformed in recent years. Deferred sales charges on mutual funds, which penalized investors for leaving a fund within a set period, were banned in Canada from June 1, 2022, and trailing commissions can no longer be paid to order-execution-only dealers that provide no advice. Trailing commissions remain permitted where advice is given, so it is worth asking whether any funds recommended to you pay them.
What should wealth management cost at my level?
Rather than a single figure, it helps to look at what a given rate means in dollars, and then at what the fee includes.
| Annual fee | On $5 million | On $10 million | On $20 million |
|---|---|---|---|
| 0.50% | $25,000 | $50,000 | $100,000 |
| 0.75% | $37,500 | $75,000 | $150,000 |
| 1.00% | $50,000 | $100,000 | $200,000 |
| 1.25% | $62,500 | $125,000 | $250,000 |
Illustrative arithmetic only, not a statement of market rates or of any firm's fees. Excludes fund costs, trading and custody charges and GST.
Published comparisons commonly describe percentage-of-assets fees in Canada in a range of roughly 0.75% to 1.5% a year for accounts around $1 million, with rates usually stepping down as portfolios grow. At several million dollars and above, most firms apply tiered schedules, and the effective rate across the whole account is usually lower than the rate on the first tier.
Three questions sharpen any comparison.
Is the fee tiered or flat across the account? Under a tiered schedule, each band of assets is charged its own rate, so the blended rate depends on how the tiers are structured, not just the lowest rate quoted.
What sits on top of the fee? If the portfolio holds mutual funds or exchange-traded funds, their fund expense ratios are an additional cost, and so are trading costs, custody fees and GST.
What does the fee include? Discretionary management, tax-aware coordination across a holding company and registered accounts, financial planning, estate coordination and access to the person managing the money are each worth something, and some firms charge separately for them while others include them.
What else adds to the total cost?
Fund costs. Every mutual fund and exchange-traded fund has a management expense ratio and trading costs, which together form its fund expense ratio. These are deducted inside the fund, so they do not appear on your statement as a charge, but they reduce your return just as directly as a fee does. From the 2026 reporting year, your annual report on charges must show them in dollars.
GST. Portfolio management and financial planning services are generally subject to GST, which is 5% in BC, while sales commissions and trailing commissions are generally exempt. A quoted fee usually excludes GST, so it is worth confirming.
Trading and custody. Commissions, foreign exchange conversion and custody or administration fees can add to the cost, particularly in portfolios that hold foreign securities or trade frequently.
Are wealth management fees tax-deductible?
Sometimes. Fees paid directly for advice on buying or selling specific securities, or for managing securities you own, in a non-registered account can generally be deducted against investment income. Fees on registered accounts, such as RRSPs, RRIFs and TFSAs, are not deductible, and neither are fees for financial planning or the costs embedded inside mutual funds, because you do not hold the underlying securities directly. A holding company that pays fees on its own investment account may be able to deduct them in computing its income, which your accountant can confirm.
Deductibility reduces the after-tax cost of a fee, but it is rarely a reason to choose one fee structure over another.
What conflicts of interest should I ask about?
Every compensation model creates some incentive, and Canadian rules require registered firms to address material conflicts of interest in your best interest and to disclose them in plain language. The useful questions are direct.
- How is the firm paid, and how is the person advising me paid?
- Do you offer your own funds or products, and are they part of what you would recommend to me?
- Do you receive trailing commissions, referral fees or any other payments from third parties for my account?
- What will I pay in total each year, in dollars, including fund costs, trading, custody and GST?
- What is included in the fee, and what would cost extra?
A firm that answers these clearly and in writing is usually one that is comfortable being accountable for its price.
What changes the picture?
Your wealth sits in several entities. A holding company, personal accounts, RRSPs or RRIFs, TFSAs and family trusts may each be charged separately or combined for the purpose of fee tiers, so ask how the household is aggregated.
You need planning as much as investing. If tax, estate and cash flow planning are central to what you need, a fee that includes them can be better value than a lower fee for investment management alone.
You want to manage part of the money yourself. Some families keep a portion in a self-directed account and have a manager handle the rest, which lowers the fee but leaves you responsible for coordinating the whole.
You hold a concentrated position or private investments. Assets the manager does not actively manage, such as a single stock held for tax reasons, may be excluded from the fee or charged at a different rate, which is worth agreeing in advance.
Where Westmount starts
Westmount Wealth Management is a Canadian portfolio manager with offices in Vancouver, Qualicum Beach and Toronto. It is registered in BC, Alberta, and Ontario and provides discretionary portfolio management to founders during and after a business sale, as well as to incorporated and asset-rich retirees.
The first conversation is a discovery meeting rather than a pitch. Its purpose is not to move your money; it is to understand your situation and, if it makes sense to continue, to show you in writing what the relationship would cost each year in dollars and exactly what it would include.
Frequently asked questions
How much does a wealth manager cost in Canada?
Most wealth managers at higher asset levels charge an annual percentage of the assets they manage, usually on a tiered schedule. Published comparisons commonly cite rates of roughly 0.75% to 1.5% a year around $1 million, typically stepping down for larger accounts, with fund costs, trading, custody and GST potentially on top. The total annual cost in dollars is the most useful figure to compare.
What is a fee-based advisor?
A fee-based advisor charges you directly, usually as a percentage of the assets managed, rather than being paid mainly through commissions or fees embedded in the products they recommend. The fee is visible on your statements, although fund expenses may still apply on top.
Are investment management fees tax-deductible in Canada?
Fees paid directly for advice on, or management of, securities in a non-registered account can generally be deducted against investment income. Fees on RRSPs, RRIFs and TFSAs, financial planning fees and fees embedded inside mutual funds are not deductible.
Do I pay GST on wealth management fees in BC?
Generally, yes. Portfolio management and financial planning services are generally subject to GST, which is 5% in BC, while sales and trailing commissions are generally exempt. Quoted fees often exclude GST, so it is worth confirming.
How can I see what I am paying in fees?
Registered firms must send an annual report on the charges you paid and the performance of your account. From the 2026 reporting year, that report must also show, in dollars, the costs inside the investment funds you hold, giving a fuller picture of your total cost.
References
- Fidelity Investments Canada, Total cost reporting (fund expenses and total cost in dollars from January 1, 2026; first reports in early 2027).
- Canadian Securities Administrators, CRM2 executive summary (annual reports on charges and performance, in effect since July 15, 2016).
- Autorité des marchés financiers, Canadian securities regulators adopt ban on deferred sales charges (deferred sales charge ban).
- Advisor.ca, Is advisor fee deductibility really beneficial? (deductibility of investment counsel fees under s. 20(1)(bb); exclusions).
- Advisor.ca, Which of your fees are exempt from sales tax? (GST on portfolio management and planning; exemption for commissions).
- Millen Wealth, How much does a financial advisor cost in Canada? (commonly cited fee range of 0.75% to 1.5%).
- Osler, CSA finalizes client focused reforms to Canadian securities registration rule (conflicts of interest in the client's best interest).
This information has been prepared by Westmount Wealth Management Inc. Westmount Wealth Management Inc. is registered as a Portfolio Manager in British Columbia, Alberta, and Ontario. Westmount Wealth Planning Inc. is a subsidiary of Westmount Wealth Management Inc.
This material is distributed for informational purposes only and is not intended to provide personalized legal, accounting, tax, or specific investment advice. Please speak to a Westmount Wealth Advisor regarding your unique situation.
