Canadians blend DIY and advisor-led investing, seeking control, growth, and expert guidance
A growing number of Canadians are embracing hybrid self-directed investing, a trend marked by higher risk-taking and a strong desire for both control and professional advice, according to new research commissioned by the Canadian Securities Administrators (CSA).
Hybrid investors—those who maintain both self-directed and advised investment accounts—now represent about one in eight Canadians, with a notable concentration among younger, university-educated men.
These investors are more likely to engage in speculative activities, such as frequent trading and investing in products like crypto-assets and options, and they report a higher tolerance for risk than the general investing population.
Many check their accounts at least once a week, and 40 percent trade at least that often, as reported by the CSA’s national survey and focus groups.
The motivations behind hybrid investing are diverse.
According to the research, many investors seek the “balance/best of both worlds,” using self-directed accounts for flexibility, learning, and lower fees, while relying on advisors for stability and expert guidance.
As one participant put it, “I’d like to keep both. I’d like to see the difference in terms of ROI and to see if working with an advisor will enhance my return.”
Others cited diversification and risk management as key reasons for maintaining both account types.
When it comes to financial planning, over two-thirds of hybrid investors say they have a plan, and most have developed it with at least some input from an advisor.
However, younger investors are more likely to create plans independently and to exclude either self-directed or advised accounts from their overall strategy.
This group also displays the highest levels of speculative behaviour, often without a clearly defined investment strategy, as indicated by the CSA research.
Advisor relationships vary widely.
While 81 percent of survey respondents say their advisor is aware of their self-directed investments, focus group participants—especially those with only a self-made plan—often described distant or infrequent contact with their advisors.
Still, trust in one’s own advisor remains high, with 90 percent expressing confidence in their advisor’s fairness and honesty.
Fraud awareness remains a challenge.
Many hybrid investors rely on their own research to identify potential scams, using online sources such as Reddit, Google, and company websites.
Red flags include offers that seem “too good to be true” or are aggressively promoted on social media.
Only a minority discuss fraud concerns with their advisors, and overall awareness of common fraud types is limited, as reported by focus group participants.
Looking ahead, hybrid investing appears poised for continued growth.
Sixty-eight percent of respondents intend to maintain both account types, valuing the flexibility and breadth of options this approach provides.
