Questrade vs Wealthsimple: Canada’s Best Investing App

Welcome to Money Reverie’s panel of judging between Questrade vs Wealthsimple.

If you’re looking for a platform to build a low-cost and diversified portfolio, you must have been contemplating between Questrade vs Wealthsimple.

This is natural because both Questrade and Wealthsimple are top Canadian Robo advisors who stand by their offer.

Thus, you can’t make a wrong choice with Questrade vs Wealthsimple.

However, it may be tricky to limit your options to one of them as there are many factors to consider.

So here I present to you an unbiased Questrade vs Wealthsimple review to help you make the best decision.

At the end of this review, you will understand the three factors of determining the perfect option between Questrade vs Wealthsimple.

How Questrade & Wealthsimple Compare

Here’s an overview of Wealthsimple vs Questrade to guide your understanding of the similarities and differences of the two great online discount brokerages in Canada.

FeaturesWealthsimple Questrade
Minimum investment$0$1,000
Account typesRRSP, TFSA, RESP, personal (non-registered)RRSP, TFSA, RESP, RIF, LIRA, LIF, margin, personal (non-registered)
ETF and stocks feesNoneYes
Portfolio optionsConservative, balanced, growth, Halal, SRIGrowth, aggressive, , conservative, balanced, SRI
AccessibilityAndroid, iOSWebsite, Android,  iOS
MERAverage 0.2%

SRI: 0.25% -0.4%

0.11%–0.23%: Regular portfolios

0.21%–0.35% for SRI

Management fees0.4% or 0.5% per year0.2% or 0.25% per year

What is Questrade?

Questrade

Questrade is an online discount brokerage established in 1999 with a $25 billion asset under management.

Its popularity in Canada lies in its low commission, low trading fees, and multiple ranges of accounts.

As a result, both beginners, intermediate and seasoned investors in Canada find Questrade attractive for DIY and active management investing.

That said, Questwealth Portfolios is the trading platform of Questrade that was previously referred to as Portfolio IQ not until 2018 when it was renamed Questwealth Portfolio.

Furthermore, Questwealth Portfolios aligns your portfolio to your risk tolerance with a combination of Canadian, US and international securities.

For more information about Questwealth Portfolios, click here.

Questrade Pros

  • Free tax-loss harvesting
  • Low management fees
  • Several investment options
  • Automatic portfolio rebalancing
  • Active management
  • Ease of use

Questrade Cons

  • Commissions on selling ETFs and trading stocks
  • $1000 minimum investment requirement.
  • Limited research tools.

Key Features of Questrade

1. Self-Directed Investing

Questrade allows you to manage your investment to save more funds.

This option is ideal for seasoned DIY investors that know the ins and outs of portfolio management.

2. Pre-Built Portfolio

Professional portfolio managers design Questrade’s Questwealth Portfolios to help meet your investment needs.

Additionally, this portfolio has low commissions, low fees and diverse securities to trade.

3. Low Commissions and Fees

Questrade is a leading low-commission brokerage in Canada that allows you to buy ETFs with no commissions.

Furthermore, you will save more on fees on this platform because of its range of free offers such as free account opening, free account transfer etc.

4. Multiple Products

Take your investment to the next level with Questrade range of investment products from registered and unregistered accounts.

Thus, you can invest in RRSP, TFSA, RESP, RIF, LIRA, LIF, margin and personal (non-registered) accounts on Questrade.

Is Questrade Safe?

As of the time of writing this Questrade vs Wealthsimple review, Questwealth Portfolios has safety measures.

One of the safety measures of Questwealth Portfolios is the membership of Questrade with the Canadian Investor Protection Fund (CIPF).

Thus, your deposit of up to $1 million is insured by the CIPF.

Furthermore, Questrade has a membership with the Investment Industry Regulatory Organization of Canada (IIROC).

Because of this, you also enjoy additional insurance of $10 million on your deposit.

So security is not among the factors of judging between Questrade vs Wealthsimple.

Who Can Use Questrade Portfolios?

Since its inception in 1999, Questrade has been accommodating all sorts of investors. This includes beginner, intermediate and seasoned investors.

However, its drawbacks, not every investor can find Questrade suitable.

Thus, when considering who Questrade is more suitable to, I refer to investors that are comfortable with:

  • Low-commission and low-fee trading.
  • $1000 minimum balance.
  • Self-directed portfolio management.
  • Active portfolio management.
  • Socially responsible investing.

Are you one of them? Even if you’re, don’t rush to it. Continue reading to learn the other side of the story.

What is Wealthimple?

Wealthsimple

Like Questrade, Wealthsimple is a leading discount brokerage with broad coverage that exceeds Canada to the US and Europe.

However, Wealthsimple doesn’t have decades of experience, as does Questrade because it was established in 2014.

One thing that makes Wealthsimple unique is its composition of world-class technical and finance experts that sustain its position in the trading world.

Additionally, Wealthsimple has self-directed and activate portfolio management options to accommodate investors of all classes.

That said, there are two major financial products that Wealthsimple offers, namely, Wealthsimple Trade and Wealthsimple Cash.

As the name implies, Wealthsimple Trade is a trading platform with zero commission and low-fee offerings. Additionally, this portfolio has no minimum balance.

On the other hand, Wealthsimple Cash is positioned to be among the best high-interest savings accounts in Canada.

For more information about Wealthimple and its financial products, click here.

Wealthsimple Pros

  • No minimum balance.
  • Tax-loss harvesting.
  • Zero commission on trading stocks and ETF.
  • International accounts.
  • Advanced educational materials.

Wealthsimple Cons

  • High management fee (0.5%).
  • Limited account options.

Key Features of Wealthsimple

1. Unique Products

Wealthsimple is popular because of its unique offerings in the trading market. Its zero commission offering on ETFs and stocks trading is second to none in Canada and other parts of the world.

Additionally, Wealthsimple is a dynamic brokerage that updates its products according to the needs of its users.

Recently, Wealthsimple launched Wealthsimple Crypto to appeal to the growing population of crypto traders in Canada. This is seen as Canada’s first and single regulated crypto exchange.

Additional, Wealthsimple recent introduction of Fractional Shares will go a long way to encourage more trading on its platform.

With its Wealthsimple Cash, it attracts investors looking for interest in their savings.

Furthermore, Muslims have a special offering which is known as the Hala Investing. This account complies with Islamic laws and is managed by financial and religious experts.

3. All-Round Tools

Take your investment to the next level with all the tools you need at your disposal on Wealthsimple.

From investment and savings tools, Wealthsimple has the tools you need to optimize your portfolio.

For example, the “Overflow” tool helps you move funds to your savings or investment portfolio through your chequing account.

Additionally, you can round off your debit card transactions to the nearest dollar using the “Roundup” tool.

4. Zero Commission and Low Fees

As I mentioned previously, one thing that makes Wealthsimple unique and popular is its zero commission and low fees.

With no minimum balance requirement, you can start trading on Wealthsimple with as low as $1 without worrying about commissions.

Furthermore more, Wealthsimple Trade has free offerings such as free account transfer from and outside Wealthsimple.

Is Wealthsimple Trade Safe?

Safety is one of the reasons Wealthsimple has more than 1.5 million users and more than $8.4 billion assets under management.

As a Canadian Investor Protection Fund (CIPF) member, you can be assured that your deposit of up to $1,000,000 is insured on Wealthsimple.

Like Questrade, this Robo-advisor is also a member of the Investment Industry Regulatory Organization of Canada (IIROC).

Additionally, Wealthsimple uses two-factor authentication (2FA) digital security to keep your funds and information safe.

Who Can Invest in Wealthsimple?

Since its establishment in 2014, Wealthsimple has been the favourite trading platform for novice, amateur and expert investors.

With its self-directed and intuitive interface, beginner investors may find Wealthsimple suitable for a hands-off trading experience.

Because of its zero minimum balance and zero-commission trading, this Robo-advisor is ideal for any investor looking to build a diversified low-cost portfolio.

Also, seasoned investors looking for investment automation may find this brokerage ideal for trading.

However, investors looking for a brokerage with a low management fee and broad account offerings may find it less attractive.

Nevertheless, Wealthsimple is on top of what it offers, and it updates its offerings regularly.

Robo-advisor Comparison: Wealthsimple Trade vs. Questwealth Portfolios

It’s time to let the cat out of the bag!

As you can see from the above comparison of Questrade vs Wealthsimple Trade, the two are great Robo-advisors with competitive offerings.

Thus, it’s essential to have a critical look before making a final decision.

Both Questrade and Wealthsimple Trade have low-cost automated online brokerage in Canada that appeal to beginner, intermediate and seasoned investors.

Hence, you can’t make a wrong choice with either Questrade or Wealthsimple.

However, these Robo-advisors differ in many ways, which makes it essential to compare before selecting.

Here are three major factors to consider when choosing between Questrade vs Wealthsimple Trade:

1. Market Capitalization

One of the major differences between Wealthsimple vs Questrade is market capitalization.

While Questrade favours the Canadian market, Wealthsimple favours the US and global market.

What does this imply?

It means that if you are a conservative or income-oriented investor that wants a large portion of your fund to be in Canada, Questrade is ideal.

However, if you’re looking for global exposure and are comfortable with more than the average risk level, Wealthsimple is ideal.

Thus, it all boils down to your risk tolerance and investment objective under this factor.

2. Commissions

Secondly, you need to consider commission before making a final decision between Questrade vs Wealthsimple.

Questrade charges no commission on buying ETFs, but it charges commissions for selling ETFs and trading stocks.

However, the story is different from Wealthsimple. Wealthsimple charges no commission for both buying and selling ETFs and stocks.

What does this imply?

It means that you will save more and invest more in the long run through Wealthsimple Trade.

However, it’s essential to consider also the management fee and MER of both Questrade and Wealthsimple to see which appeals to your investment objective and risk tolerance.

3. Investment Accounts

As of the time of writing this review, Wealthsimple has the following account offerings:

  • RRSP
  • TFSA
  • RESP
  • Personal (non-registered) account

On the other hand, Questrade has the following account offerings as of the time of writing this review:

  • RRSP
  • TFSA
  • RESP
  • RIF
  • LIRA
  • LIF
  • Margin
  • Personal (non-registered) account.

As you can see, Questrade has more account openings than Wealthsimple.

What does this imply?

Your choice between Questrade vs Wealthsimple should reflect your investment objective.

That’s, you should choose the Robo-advisor that has the account you want to invest in regardless of the market capitalization and commissions.

Online Brokerage Comparison: Questrade vs. Wealthsimple Trade

Questrade vs Wealthsimple

Questrade and Wealthsimple are household names when it comes to the best robo-advisors in Canada. While these two great brokerages share much in common, many factors set them apart.

A commission is one of the major things savvy investors look for in any brokerage. In this regard, Wealthsimple Trade is winning against Questrade since it charges zero commission on trading stocks and ETFs.

Questrade charges no commission buying stocks and ETFs but charges commission on selling them.

If you’re on a low budget and are looking to invest incrementally, Wealthsimple got you covered with its fractional shares trading. Questrade doesn’t currently have fractional shares.

On the other hand, Questrade has low management fees against Wealthsimple’s slightly higher management fee. This means you can save a lot more fees on Questrade than Wealthsimple Trade.

More so, Questrade has more investment options than Wealthsimple. You can invest in international equities, precious metals, bonds or other securities on Questrade, but you can’t do the same on Wealthsimple.

Furthermore, Wealthsimple’s 1.5% currency conversion fee makes it costly for trading US stocks and ETFs. Questrade doesn’t charge conversion fees for indefinite USD assets.

Moreover, Wealthsimple is a 100% robo-advisor while Questrade is a partial robo advisor. This means Wealthsimple relies entirely on a robot to allocate and manage your investment, while Questrade relies on both robot and human advisors.

So if you’re looking for an automated investment opportunity, Wealthsimple Trade is ideal for you.

But if you’re an active trader looking for robust market and investment options, Questrade is your perfect choice.

Should DIY Investors Choose Questrade or Wealthsimple Trade?

Self-directed or DIY investors can’t make a wrong choice with Questrade or Wealthsimple Trade. However, there are many factors that you need to consider before deciding.

Firstly, if you’re on a tight budget or want to trade with small amounts often, Wealthsimple Trade could be your perfect option.

Unlike Questrade, Wealthsimple charges zero commission on trades and allows you to trade according to your own pace through its fractional shares.

On the other, Questrade could be your perfect option as a self-directed investor if you want to trade US stocks and ETFs. While Wealthsimple charges a 1.5% currency conversion fee, Questrade doesn’t charge a conversion fee for indefinite USD assets.

Since Wealthsimple Trade requires you to hold all your assets in Canadian dollars, you will save more on currency conversion fees on Questrade.

Also, Questrade is your ideal option if you’re looking to invest in international equities, precious metals, bonds or other securities.

Finally, since Wealthsimple relies 100% on a robot to allocate and manage your funds, Questrade should be your best option if you’re looking for a portfolio managed by both a robot and a human.

Overall, you can’t make a wrong choice with either Questrade or Wealthsimple Trade.

Verdict on Questrade vs Wealthsimple Trade

Now you know what it means to choose between Questrade vs Wealthsimple Trade.

Even though the two Robo-advisors share some similarities, they have many differences that should be considered before making a final decision.

No doubt, both Questrade and Wealthsimple are on top of their game, especially when you compare them with other brokerages out there.

However, investing in a portfolio that doesn’t suit your investment objective and risk tolerance is a waste of time and resources.

So your choice between Questrade vs Wealthsimple should reflect your risk tolerance and investment objective.

But remember, you can’t make a wrong choice with any of them.

Overall, my Questwealth vs Wealthsimple review is positive.

FAQs on Wealthsimple Trade vs Questrade

Is Questrade Good for Beginners?

Yes. Questrade is good for investors of all categories, such as beginner, intermediate and seasoned investors.

This online discount brokerage has a self-directed investing platform and active portfolio management to meet the needs of both newbies and experts in the world of trading.

Why Wealthsimple Trade is Bad?

Wealthsimple Trade is considered bad by investors who believe it lacks some trading tools such as analysis tools and automation tools for buying or selling stocks.

However, Wealthsimple Trade offerings are not bad. In fact, they are among the best in the industry.

But depending on your investment objective and risk tolerance, you may find other trading platforms more suitable than Wealthsimple Trade.

Which Trading Platform is Best in Canada?

Wealthsimple Trade and Questwealth Portfolios are among the best trading platforms in Canada due to their trading cost, account offerings, and market capitalization.

Can I Have Questrade and Wealthsimple?

Yes. You can have both Questrade and Wealthsimple accounts, depending on your needs.

Although they have many similar offerings, you can find some offerings on Wealthsimple that are not on Questrade vis-a-vis.

But ensure that you really need the two platforms before joining. Else, you will spend more and earn less.

Can I Trust Wealthsimple Trade?

Yes, you can trust Wealthsimple Trade as done by over 1.5 million users. Your deposit up to  $1,000,000 on Wealthsimple is insured by the Canadian Investor Protection Fund (CIPF).

With over $8.4 billion assets under management, Wealthsimple is regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and uses industry-standard encryption to secure your funds and information.

How Safe is Questrade?

Questrade is absolutely safe because of its membership with the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF).

Thus, your deposit up to  $1,000,000 on Questrade is protected by CIPF with the additional protection of $10,000,000 by the IIROC.

How Much Money Do You Need to Start With Questrade?

You need a minimum deposit of $1000 to start trading on Questrade.

Is Wealthsimple Actually Free?

Wealthsimple is not absolutely free. While Wealthsimple doesn’t charge fees on transfers and trading, it charges a 0.5% management fee.

Is there a Minimum Deposit for Wealthsimple?

Yes, Wealthsimple has a $250,000 minimum daily deposit.

Can I Buy Bitcoin on Wealthsimple?

Yea, you can buy Bitcoin on Wealthsimple through its Wealthsimple Crypto. You can trade Bitcoin and Ethereum through Wealthsimple Trade with no fee on deposits and withdrawals.

Is Questrade the Best in Canada?

Questrade is one of the best robo-advisors in Canada, offering a low-cost investment portfolio.  However, Wealthsimple is the major rival of Questrade and is seen by most investors as the best robo-advisor in Canada.

If you have more questions about this Questrade vs Wealthsimple review, let me know in the comment section.

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