Self-directed investing, also known as DIY (do-it-yourself) investing, puts you in full control of your investment decisions. You choose what to invest in, when to buy or sell, and how to manage your portfolio. There’s no advisor guiding your choices, which means you take full responsibility for your investment plan and its outcomes—good or bad.
This approach can offer benefits like lower fees and more flexibility, but it also requires time, discipline, and a strong understanding of how investing works.
DIY investing may be a good fit if you:
Have solid investment knowledge and experience.
Are comfortable researching companies, products, and markets.
Can manage your emotions during market ups and downs.
Have the time and interest to monitor and adjust your portfolio regularly.
It’s important to be realistic about what self-directed investing involves. Without enough time, knowledge, or discipline, it’s easy to get distracted by trends or make decisions based on emotion or unreliable information, and that can lead to costly mistakes.
If you’re considering this approach, take time to reflect on whether it’s the right fit for your goals, skills, and lifestyle. Ask yourself:
Understanding how different investment products work is essential. You’ll need to evaluate options, spot risks, and know how each choice fits into your overall plan. Without a strong foundation, it’s easy to rely on unreliable sources or make decisions based on hype. Every investment should be backed by research and aligned with your goals - not guesswork.
DIY investing isn’t about chasing quick wins or following trends. It’s about creating a strategy that reflects your financial situation and future plans—whether that’s saving for retirement, starting a business, or growing long-term wealth. A clear plan helps you stay focused and avoid impulsive decisions.
You’ll need to stay informed about market conditions, company performance, and the risks tied to different products. That includes choosing the right platform or brokerage and regularly reviewing your portfolio. If you’re short on time, it may be harder to keep up with the information you need to make smart choices.
Markets can be unpredictable. DIY investors need to stay calm during downturns and avoid making emotional decisions. If you’re easily stressed by market changes, this approach may not be the best fit.
DIY investing has gained popularity, but it’s important to make sure it’s the right choice for you, not just something you’re trying because others are doing it. Without the right preparation, it’s easy to feel overwhelmed or make decisions that don’t support your financial situation.
If you decide to manage your own investments, you’ll need to open a self-directed account. These are available through online brokerages and financial institutions. You can choose between registered accounts—like a TFSA, RRSP, RESP, or RDSP—or an unregistered account, depending on your goals.
Take time to research the platform you plan to use. Compare fees, features, and tools, and make sure the brokerage is registered with the Financial and Consumer Services Commission of New Brunswick. This helps protect your investments and ensures the firm follows the rules.
If DIY investing doesn’t feel like the right fit, you can work with a registered financial advisor or explore robo-advisors. Both options offer professional guidance and can help you build a plan that matches your goals and comfort level.