Wealthsimple, TD e-Series, Questrade, and group plans side by side — real fees, CESG processing times, and a straight answer on who should use what.
Catch-up grants: If you missed a year, you can contribute $5,000 in a single year to receive $1,000 in CESG (current year + one prior year). You can only catch up one year at a time — not multiple missed years in one shot.
CESG basics: The government deposits 20% on the first $2,500 you contribute each year. Families with income below ~$53,359 may also qualify for the additional CESG (A-CESG) of up to $100/year. Provincial grants (BCTESG, QESI, SAGES) may also apply depending on where you live.
All fees are in Canadian dollars. MER = Management Expense Ratio, the annual fee built into a fund.
| Provider | Account Fees / MER | Investment Options | CESG Processing | Minimum Deposit | Best For |
|---|---|---|---|---|---|
| Wealthsimple RESP | $0 account fee ~0% MER on ETF portfolios |
Managed ETF portfolios (Growth, Balanced, Conservative) | ~2 weeks | $0 | Most Canadian families |
| TD Direct Investing (TD e-Series) |
0.33–0.44% MER (e-Series funds) | TD e-Series index funds, ETFs, GICs, stocks | Typically 1–3 weeks | $0 account; e-Series funds $100/purchase | TD banking customers who want simplicity |
| Questrade RESP | $0 ETF purchases $4.95–$9.95 stock trades; $0 ETF buys |
Full brokerage: ETFs, stocks, options, GICs | ~2–3 weeks | $0 | Active investors; DIY index investors comfortable with a brokerage |
| BMO / RBC / Scotia / CIBC | 1.5–2.5% MER on typical in-branch mutual funds | Primarily in-house mutual funds; direct investing branch available | 1–4 weeks (varies by branch) | Varies; often $500+ | Existing clients wanting advisor relationship; in-branch only |
| Heritage Education Funds | Enrollment fees + ~1–2% MER + admin fees | Pooled group scholarship plans only | Group plan schedule | Fixed contribution schedule | Generally not recommended |
| Knowledge First Financial (KFF) | Enrollment fees + MER + admin | Group plans, individual plans | Group plan schedule | Fixed schedule | Generally not recommended |
| CST / Embark | Enrollment + admin + MER | Group scholarship plans, some self-directed | Group plan schedule | Fixed schedule | Generally not recommended |
MERs current as of early 2026. Fees may change. Always verify before opening an account.
Self-directed accounts let you choose your own investments. For most families, this means buying a low-cost ETF portfolio and leaving it alone.
Wealthsimple's RESP is the simplest low-cost option in Canada. You pick a risk level (Growth, Balanced, or Conservative), and Wealthsimple handles the rest — rebalancing, dividend reinvestment, and CESG collection. There's no minimum deposit and no account fee. The underlying portfolios use Vanguard and iShares ETFs.
The managed ETF portfolios don't charge an MER on top of the management fee — the ETF holdings themselves have small MERs (roughly 0.20% blended), but Wealthsimple's 0% management fee for RESPs makes this essentially the cheapest actively managed option in Canada.
Bottom line: If you don't want to think about investing beyond picking a risk level, Wealthsimple is the default correct answer for most Canadian families opening an RESP.
TD's e-Series funds are a long-standing favourite among Canadian index investors. You get four core index funds — Canadian equity, US equity, international equity, and Canadian bond — at MERs between 0.33% and 0.44%. That's not as cheap as building a portfolio with Vanguard ETFs yourself, but it requires no brokerage account, just a TD mutual fund account (TD MyDirect).
TD's full brokerage (TD Direct Investing) also supports RESPs and gives you access to ETFs, stocks, and GICs if you want more control. The e-Series route is simpler; the brokerage route gives more flexibility.
Bottom line: If you're already a TD customer and want the simplicity of banking and investing in one place, TD e-Series is a reasonable choice. Costs slightly more than Wealthsimple but substantially less than typical in-branch mutual funds.
Questrade pioneered free ETF buying in Canada and still offers it. A Questrade RESP works well if you're comfortable using an online brokerage and want to buy individual ETFs like XEQT, VGRO, or VEQT directly. Selling ETFs does incur a commission ($4.95–$9.95), so this works best if you're buying regularly and rarely selling.
The platform is more complex than Wealthsimple — you'll need to choose your own ETFs, place buy orders, and handle rebalancing yourself. For experienced investors, that's fine. For someone opening their first investment account, it's an unnecessary hurdle.
Bottom line: Questrade is a solid choice if you already invest there or are comfortable with a DIY brokerage. If you're new to investing, Wealthsimple is easier and nearly as cheap.
All four major banks offer RESPs through their in-branch advisors. The funds they typically recommend are the bank's own branded mutual funds — balanced funds, dividend funds, or "lifecycle" funds — which carry MERs of 1.5% to 2.5%. On a $50,000 RESP balance, that's $750–$1,250 per year in fees compared to near-zero with Wealthsimple.
Each bank also has a direct investing arm (BMO InvestorLine, RBC Direct Investing, Scotia iTRADE, CIBC Investor's Edge) where you can hold an RESP and buy ETFs with lower fees. If you're at one of these banks and want to stay there, open the direct investing account, not the mutual fund account the branch advisor suggests.
Bottom line: The big banks are only worth it if you genuinely need in-person support and have an existing relationship. If you go this route, insist on the bank's direct investing platform with ETFs — not the in-branch mutual fund selection.
Group RESPs are sold by specialist companies, not banks or brokerages. They work differently and carry significant risks — particularly around exit costs.
OSC enforcement action: The Ontario Securities Commission has taken enforcement action against Heritage Education Funds over sales practices. Before enrolling in any group plan, read the prospectus carefully and understand the full exit cost structure.
In a group plan, your contributions are pooled with other subscribers in the same "enrolment year" — the year your child is born. Investment decisions are made centrally, not by you. When your child reaches post-secondary age, they receive a proportional share of the pool based on how many months they were enrolled and whether they've met the withdrawal conditions.
Group plans charge enrollment fees, sales fees, and annual administration fees on top of fund MERs. Enrollment fees are often front-loaded — meaning a substantial portion of your first few years of contributions goes to fees, not investments. If you leave the plan early, you can forfeit these fees entirely.
| Group Plan Provider | Typical Enrollment Fee | Early Exit Risk | Investment Flexibility | Regulatory Notes |
|---|---|---|---|---|
| Heritage Education Funds | High — often $50–$200+/year of plan | Loss of enrollment fees; complex rules | Fixed pooled plan only | OSC enforcement action on sales practices |
| Knowledge First Financial (KFF) | Enrollment fees + admin fees | Significant early exit penalties | Group / individual plan only | Subject to ongoing regulatory scrutiny |
| CST / Embark | Enrollment + admin + MER stack | Front-loaded fees risk if exiting early | Some self-directed options available | Rebranded from CST; regulatory history complex |
Already in a group plan? Before you exit, calculate the actual cost. Depending on how many years in you are and which plan, it may cost you more to leave now than to stay and receive the payout at maturity.
Use our Group RESP Exit Calculator to estimate what you'd forfeit vs. what you'd gain by moving to a self-directed account.
Group plan salespeople earn commissions — which is why you may have been approached by one when your child was born. The pitch often emphasizes government grants and "disciplined saving." Those are real benefits, but the same grants and the same discipline are available in a free Wealthsimple RESP with none of the exit risk.
Short version: most families should pick Wealthsimple. Here's the longer version.
Open a Wealthsimple RESP. $0 minimum, $0 fees, and you'll receive the CESG automatically. Set up a $208/month pre-authorized contribution to hit the $2,500/year mark and get the maximum $500 CESG. Done.
Consider TD e-Series through TD MyDirect. The MER (0.33–0.44%) is higher than Wealthsimple but the integration with your existing accounts is convenient. Alternatively, open a Wealthsimple RESP anyway — it's a five-minute online application and the savings over 18 years are meaningful.
Add an RESP at Questrade and build your own ETF portfolio (XEQT at 0.20% MER is a common choice). Free ETF buys make the cost essentially the same as Wealthsimple, with more control if you want it.
Family RESPs allow multiple children to share one plan — which reduces the risk of unused contributions if one child doesn't pursue post-secondary. For complex family situations (divorce, step-children, subscriber disagreements), talk to a fee-only financial planner before opening the account. Subscriber rules on RESPs can create complications in separation.
Don't sign anything at the hospital or right after birth. Ask for the plan's prospectus and the full fee schedule. Compare total fees over 18 years to the same contributions in a Wealthsimple RESP. If you're already enrolled, use our Group RESP Exit Calculator before making a decision.
You can contribute up to $5,000 in a single year to collect the current year's CESG ($500) plus one year's catch-up ($500) for a total of $1,000. You can only catch up one year per year — not multiple missed years in one shot. Any remaining unused CESG room carries forward and can be used until the year the beneficiary turns 17.
| Grant | Amount | Trigger | Lifetime Limit | Income Test? |
|---|---|---|---|---|
| Basic CESG | 20% on first $2,500/year | Any RESP contribution | $7,200 per beneficiary | No |
| Additional CESG (A-CESG) | Extra 10% or 20% on first $500/year | Family net income below ~$106,717 (2025) | $7,200 combined with basic | Yes |
| Canada Learning Bond (CLB) | $500 initial + $100/year to age 15 | Eligible for National Child Benefit Supplement | $2,000 per beneficiary | Yes (low income) |
| BC TESG | $1,200 one-time | Child born in BC; apply by age 9 | $1,200 | No |
| Quebec QESI | 10% on first $2,500/year | Quebec residents only | $3,600 | No (basic) |
Optimal contribution strategy: Contribute $2,500/year to receive the maximum $500 basic CESG. If you can't hit $2,500 in a given year, contribute whatever you can — the CESG is proportional. Unused room carries forward. CESG is no longer paid after age 17, and special rules apply to age 16–17 eligibility (contributions must have been made in prior years).
When your child attends a qualifying post-secondary institution, withdrawals of the grant and investment growth (called Educational Assistance Payments, or EAPs) are taxed in the student's hands — not yours. Since most students have little other income, the tax is typically minimal or nil. Your original contributions (the PSE portion) can be withdrawn tax-free.
If your child doesn't attend post-secondary, contributions can be returned to you tax-free. The accumulated income can be transferred to your RRSP (up to $50,000 if you have room) or withdrawn with a 20% penalty tax on top of regular income tax. Grants must be returned to the government.
Before you exit, run the numbers. Depending on how far in you are, staying may cost less than leaving. Our calculator shows you the full picture.
Group RESP Exit Calculator Full RESP GuideThis page is for general information purposes only and does not constitute financial advice. RESP rules, grant amounts, and income thresholds are set by the federal government and may change. MERs and fees are approximate and current as of early 2026 — verify directly with providers before opening an account. Provincial grants (BCTESG, QESI) have their own eligibility requirements. If your situation is complex — multiple children, divorce, blended family — consider speaking with a fee-only financial planner registered with FP Canada.