RRSP and TFSA fees: MER, trailing commissions and account charges explained (illustrative numbers)

The cost of an RRSP or TFSA is not the account itself, which is often free, but the investments and services inside it. The largest cost for most Canadians is the management expense ratio (MER) of their mutual funds or ETFs, deducted inside the fund every year whether markets rise or fall. On an illustrative $50,000 balance, a 1.9% MER costs about $950 a year and a 0.25% MER about $125. Other costs include trading commissions, account administration fees, transfer-out fees and foreign-exchange spreads. All fees and percentages in this guide are illustrative examples, not the prices of any provider; your own figures are in your Fund Facts, ETF Facts, fee schedule and annual cost reports.

This guide is part of the 2026 account rules overview. General information, not investment advice.

The main types of cost

Cost	Where it is charged	Where to find it	Notes
MER	Inside the fund, daily	Fund Facts or ETF Facts, annual report	Includes management fee, operating costs and sales taxes on them
Trading expense ratio (TER)	Inside the fund	Same documents	Trading costs, reported separately from the MER
Trailing commission	Paid from the fund's management fee to your dealer	Fund Facts, annual charges report	Part of the MER of series sold with advice
Advice or account fee	Charged to your account	Account agreement, statements	Common in fee-based accounts, often as a percentage of assets
Trading commission	Per buy or sell	Brokerage fee schedule	Many online brokerages now advertise commission-free trades for some products; check conditions
Annual registered plan fee	Charged to the account	Fee schedule	Some institutions charge a flat fee below a balance threshold
Transfer-out or closing fee	When you move or close the account	Fee schedule	The receiving institution sometimes offers to cover it
Foreign-exchange spread	When you buy US-dollar investments	Fee schedule, trade confirmations	Can be significant on frequent conversions

How a fee turns into dollars

The MER calculation is simple: balance × MER = approximate annual cost. Because the MER is taken every year from a growing balance, its effect compounds. The illustration below uses an assumed 6% gross return, an initial $10,000 and $500 a month for 25 years.

Scenario (illustrative)	MER	Net return	Approximate balance after 25 years
Higher-cost fund portfolio	1.50%	4.50%	$307,000
Lower-cost index portfolio	0.25%	5.75%	$375,000
Difference			about $68,000

Contributions are the same $160,000 in both cases. You can rerun this with your own numbers in the growth projector and check one year's cost with the MER calculator.

A higher fee is not automatically wrong. Advice can be worth paying for if it changes behaviour (keeping you invested in a downturn, getting a spousal or RRIF strategy right). The point is to know what you pay and decide whether you get value for it.

Rule changes that affect fees

Several Canadian Securities Administrators reforms changed how fund fees work:

Deferred sales charges (DSCs) were banned for new purchases of mutual funds from June 1, 2022. Older DSC holdings may still be subject to their redemption schedule; ask your dealer before switching.
Order-execution-only dealers (discount brokerages that give no advice) may no longer receive trailing commissions since June 2022, so funds bought there are offered in series without trailers.
Annual charges and compensation reports and investment performance reports must be sent by dealers each year.
Total cost reporting amendments expand these reports to include ongoing fund costs in dollars. The first reports under the new rules are expected to cover 2026; check your 2026 annual report when it arrives in early 2027 and confirm the timeline with your dealer or the Canadian Securities Administrators.

Account types and their typical cost structures

Where the account is held	How you typically pay	Who it suits
Bank branch with mutual funds	MER including a trailing commission	People who want face-to-face service and simple choices
Fee-based adviser account	Percentage advice fee plus lower-MER funds	Larger balances, people who want ongoing planning
Robo-advisor	Management fee plus ETF MERs	Hands-off investors with smaller balances
Online brokerage (self-directed)	ETF or fund MERs plus any commissions	People comfortable choosing and rebalancing themselves
GICs and savings deposits	No explicit fee; the cost is the rate offered	Short horizons, capital protection
Insurance company segregated funds	Usually higher MERs, including guarantee costs	People wanting maturity or death benefit guarantees

This is a comparison of structures, not a ranking of providers. Ask any provider for its fee schedule in writing and compare the total, not just the headline.

Checklist: find your real costs

Download the Fund Facts or ETF Facts for each holding and note the MER.
Weight them by how much you hold of each to get a portfolio MER.
Add any account-level fees from your statements (advice fees, annual registered plan fees).
Read the annual charges and compensation report for the dollar total paid to your dealer.
Check the transfer-out fee before you move: see transfers between institutions.
If you hold US investments, note how currency is converted and what spread applies.

When a lower fee is not the whole story

Taxes on foreign dividends can cost more than the fee difference in the wrong account; see US dividend withholding.
Switching triggers costs: legacy DSC charges, transfer fees, and in a non-registered account capital gains. Inside an RRSP or TFSA, selling is not taxed, which makes switching cheaper there.
Protection differs: deposits, funds held at a dealer and insurance products are covered by different schemes; see CIPF and CDIC coverage.

Quebec notes

Fund fees in Quebec carry QST rather than HST, so the sales-tax part of an MER differs slightly by province. Investment dealers and advisers in Quebec are overseen by the Autorité des marchés financiers together with CIRO. The fee structures described here are otherwise the same.

Frequently asked questions

Does the MER show up on my statement?

Not as a line item; it is deducted inside the fund. The annual reports increasingly show the dollar cost.

Is a TFSA or RRSP itself free?

The registration usually costs nothing, but some institutions charge annual plan fees, particularly on small self-directed accounts.

Should I move to the cheapest option?

Compare total cost, the service you need and any switching costs first. A slightly higher fee for advice you use may be reasonable.

Can I deduct RRSP or TFSA fees?

Generally no. Fees paid for registered accounts are not deductible.

Official sources

Canadian Securities Administrators — fund fee rules and investor tools
Canadian Investment Regulatory Organization (CIRO) — dealer obligations and checking a firm or adviser
Financial Consumer Agency of Canada — understanding investment fees
Autorité des marchés financiers — Quebec investor information