Best WealthSimple Review [Updated 2021]

Wealthsimple

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Wealthsimple Review
Wealthsimple

Product Name: Wealthsimple Investment App

Product Description: Wealthsimple is a top Robo advisor in the world, with offices in Canada, Europe, and the United States. Headquartered in Toronto, Canada, Wealthsimple has a squad of world-class finance and the finest technical experts creating market solutions to help grow your investment.

Overall
4.8
  • Ease of Use
    (5)
  • Portfolio Mix
    (5)
  • Investment Options
    (5)
  • Cash Management
    (5)
  • Innovative Products
    (4)
  • Human Advisors
    (4.5)
  • Customer Support
    (5)
User Review
5 (1 vote)

Summary

Wealthsimple is a top Robo advisor in the world, with offices in Canada, Europe, and the United States. Headquartered in Toronto, Canada, Wealthsimple has a squad of world-class finance and the finest technical experts creating market solutions to help grow your investment.

Pros

  • Ease of Use
  • Zero Management Fees
  • Huge Investment Portfolio
  • Customer Service

Cons

  • NONE

Welcome to Money Reverie’s unbiased Wealthsimple Review.

The finance & investment industry has undergone some dramatic changes in the last decade using technology to optimize the returns on your investment.

In addition to increasing returns and simplifying the investing process, a near-zero investment management fee is another motivating factor for choosing to invest with Robo-Advisors like Wealthsimple.

When it comes to the leading Robo Advisors in Canada, Wealthsimple ranks on top of the consumers’ picks due to their transparent pricing, minimal fees, usability, and exclusive benefits.

My Review of Wealthsimple of borne out of my personal experience from using the application to invest and build wealth. I started using Wealthsimple in 2018 with an initial contribution of CAD 100.00 (with a monthly donation of $100.00), and I had seen my investment grown (even when the markets were down) to over $8k

I am writing this review not to make some affiliate commission but to help you decide whether to use start investing with Wealthsimple Robo-Advisor.

Let’s go!

Wealthsimple Overview

Wealthsimple Review 2021

Wealthsimple is a top Robo advisor globally, with offices in Canada, Europe, and the United States.

Michael Katchen created the company in 2014, intending to deliver intelligent financial services to all.

Before launching Wealthsimple, Michael was an employee at a Silicon Valley start-up where he provided Do-it-Yourself investment tips to his coworkers.

Wealthsimple, which has its headquarters in Toronto, has a squad of world-class finance and the finest technical experts creating market solutions to help grow your investment.

What Is Wealthsimple?

Wealthsimple is a service provider for investment automation (Robo-advisor).

They have two main products:

  1. Wealthsimple Cash and
  2. Wealthsimple Trade.

The Wealthsimple Cash is a high-interest savings account. At the same time, Wealthsimple Trade is an online investment platform that makes it possible and easy for you to self-manage your investments in different ETFs and Cryptos.

With zero account minimums, Wealthsimple offers top-notch long-term investment management.

With Wealthsimple, your account is held in a diverse portfolio of exchange-traded funds (ETFs) such as VBAL, ZGRO, VGRO, XEQT, VEQT, and more.

Wealthsimple services cut across dividend reinvesting, automatic rebalancing, and tax-loss harvesting. Also, their financial experts are available to you at all times.

Is Wealthsimple Safe?

Yes, Wealthsimple is 100% safe and can be trusted. Wealthsimple uses the state-of-the-art 256-bit SSL encryption certificate to keep all data (including your account information, password, and personal data) transmitted between browsers safe. Additionally, all available balances in your Wealthsimple Cash account are insured by the Canadian Investor Protection Fund (CPIF), meaning that your investments are protected if Wealthsimple goes out of business for any reason.
Further, Wealthsimple is affiliated with Canadian ShareOwner Investments and is a member of Canada’s Investment Industry Regulatory Organization.
Additionally, like other big banks in Canada, Wealthsimple is also regulated by Canada’s Investment Industry Regulatory Organization (IIROC).

Key Features of Wealthsimple

Below are some of the cool features of Wealthsimple:

1. Portfolio Review Service

Wealthsimple provides free portfolio reviews to its clients, including assessing their financial accounts that are non-Wealthsimple. By so doing, they will examine the account’s fees, tax performance.

2. Free Tax-Loss Harvesting

This feature is available to investors with taxable accounts only. However, it may be beneficial to you if you didn’t invest in RRSP or TFSA. Offsetting investment returns with investment losses, tax-loss harvesting reduces your investment tax obligations.

Although most Robo-advisors and financial advisors provide this service to high-value investors, Wealthsimple customers enjoy tax-loss harvesting under Wealthsimple Black and Generation plans.

3. Financial Advisors

Most Robo advisors do not handle financial planning perfectly, but with Wealthsimple Black account, you can access target-based financial planning from experts.

Also, Wealthsimple Generation customers have access to comprehensive financial planning. They also have a team of advisors that create a customized financial analysis.

However, all Wealthsimple customers have unrestricted access to human, financial advisors. This is regardless of the investment plan.

4. Fractional Shares Investment

Wealthsimple manages portfolios using ETFs. It allocates assets depending on your risk tolerance.
 
Therefore, when you invest in fractional shares, each deposit is automatically invested.
This allows you to begin earning interest instantly. You don’t have to wait until you have enough funds to buy a complete share.
 
By so doing, a portfolio worth $10 can achieve an equal amount of diversification as a $1 million portfolio.

5. Socially Responsible Investment Options (SRIs)

Wealthsimple socially responsible investing options (SRIs) help you build investment. This is through proprietary low-cost SRI ETFs.

Accordingly, these ETFs invest in North America’s major socially responsible companies. However, they exclude the industry’s top 25% carbon emitters.

6. Transfer Fees

You can move your account to Wealthsimple free of charge!

Investment accounts transfers valued at more than $5,000 are qualified for fee recovery upon completing a brief survey.

Additionally, if you wish to move your funds from Wealthsimple… you will never be charged any fees, and you will never be locked in.

7. Innovative Products

Wealthsimple offers a variety of extra services. For example, Wealthsimple Trade is a no-commission online broker. Additionally, Wealthsimple also has Crypto available for trading.

Furthermore, Wealthsimple Save offers high interest on savings accounts. This involves ith no introductory fee and a 0.75% annual interest rate.

Also, Wealthsimple provides Halal Investing. This is an investment portfolio that is compliant with Islamic law. Religious and financial experts lead it.

8. All-Round Tools

Wealthsimple has a variety of technical tools. This assists you in optimizing your investments and savings. For example… with the “Overflow” tool, you can transfer money… from your chequing account to your Cash or Invest funds.
 
Also, the “Roundup” tool helps you round up your debit and credit card transactions. This helps you optimize your investment.

Wealthsimple Pros

  • $0 deposit on creating an account.
  • Tax-loss harvesting.
  • International accounts (from Canada, American and the UK).
  • Outstanding educational materials.
  • Competitive interest rate on savings.

Wealthsimple Cons

  • More than the average management fee (0.5%).
  • Requires personal data at the early stage of the registration process.
  • Portfolio creation options are limited.
  • Algorithms are set on a generic buy-and-hold approach.

Who Can Invest in Wealthsimple?

Anyone above the age of 18 in Canada is qualified to invest with Wealthsimple.

Due to its hands-off approach to investment… Wealthsimple is particularly well-suited for young or novice investors.

That is to say, it is suitable for those who are overwhelmed by the stock market. However, they lack a thorough understanding of how it operates.
 
Also, Wealthsimple is a perfect fit for seasoned investors. That’s, those looking to automate a part of their portfolio to save time.

Additionally, there is no minimum deposit needed to begin investing. This makes Wealthsimple more accessible to everyone.

Wealthsimple Portfolios: How Does Wealthsimple Work?

At this stage of my Wealthsimple review, I present to you Wealthsimple portfolios.
 
Thus, after your account is created, you will be assigned a portfolio. This portfolio is customized according to your investment objectives and risk tolerance.
 
This implies that your investment portfolio can fall on any of the following:
  • Conservative: This consists of 70% bonds and 30% stocks.
  • Balanced: This consists of 50% bonds and 50% stocks.
  • Growth: This consists of 10-25% bonds and 75-90% stocks.

Conservative Portfolio

A Conservative portfolio is the best option for anyone seeking low risk and security. Conservative portfolios typically earn a moderate rate of return. They are ideally suited for long-term investment objectives.

Balanced Portfolio

A Balanced portfolio is suitable for those seeking a low to moderate level of risk. This portfolio is also ideal for investors who like to take a gamble and see the level of returns they will earn.

Growth Portfolio

A Growth portfolio is suitable for those with medium to high-risk tolerance. While this portfolio is often subject to fluctuations… it has the potential of yielding a higher return.

Although the potential return and risk level varies. However, the investment strategy is similar. All investments are diversified to optimize returns. So, minimizing risk based on your risk tolerance.

Accordingly, Wealthsimple’s algorithm always manages your portfolio. This is to guarantee that your investments work well.

How? By rebalancing them when the valuation of your assets fluctuates. Also, by reinvesting any earned dividends to reduce risk and increase gains.

Wealthsimple Top Products

1. Invest

Wealthsimple Invest is a low-fee investment portfolio.

It invests your money across thousands of stocks through Exchange Traded Funds (ETFs).

This product helps you build an investment portfolio that meets your risk tolerance and financial goals.

Key Features

  • Automatic contributions
  • Easy access
  • Automatic dividend reinvesting
  • Automatic rebalancing

What types of accounts can I open with Wealthsimple Invest?

Here are the accounts you can open with Wealthsimple Invest:

RRSP

A registered retirement savings plan (RRSP) helps you save for retirement. Except when you make withdrawals

Thus, your earnings on RRSP are tax-free. How much you can contribute to RRSP depends on the annual contribution room.

TFSA

A tax-free savings account (TFSA) gives you tax benefits on contributions and withdrawals.

That is to say,  your earnings and contributions on TFSA are tax-free. Also, the amount you can contribute to TFSA depends on your annual contribution room and unused contribution room.

Personal/Joint Account

This type of account allows you to contribute according to your capability.

But unlike TFSA and RRSP, your earnings on a personal/joint account have tax considerations.

Savings Account

This account has all the features of chequing and savings accounts.

With Wealthsimple Savings Account, you have 0.5% interest on your savings.

RESP

As the name implies, a Registered Education Savings Plan (RESP) is an education-friendly account.

So with this account, you can save for your children’s education up to $50,000 per child. After that, the government will contribute a particular amount to it.

RRIF

This account is a vehicle for transferring your RRSP account.

Thus, the CRA expects you to convert your RRSP account to A Registered Retirement Income Fund (RRIF) when you reach the age of 71.

LIRA

A Locked-In Retirement Account (LIRA) is eligible for those not retired but have a pension from their former employers.

Although you can’t make a contribution to this account, you have a share of its investments.

LIF

A Life Income Fund is a Registered Retirement Income Fund (RRIF). It is the conversion of your LIRA when you reach retirement age.

Corporate

This account is suitable for corporate investment. It helps your business grow by investing in relevant securities.

2. Trade

Wealthsimple Trade is a product of trading stocks and exchange-traded funds (ETFs) through Canadian and U.S. exchanges.

Accordingly, this product has no minimum balance. It also has zero commissions on trades.

Key Features

  • Zero commissions
  • No account minimum
  • Free stock worth $4,000. (Conditions apply).

3. Cash

Wealthsimple Cash makes it easy to make cash transactions.

Like Wealthsimple Trade, this account has no minimum balance or payment limits. Also, it is free to use.

Key Features

  • Free cash transactions
  • Zero monthly account fees
  • No deposit or withdrawal fees

My Unbiased Wealthsimple Review Formula

My unbiased Wealthsimple review is based on the evaluation of the following factors:

Account minimum

*****

$0.
Account management fee

**

0.5% for Basic account 0.4% for Black and  Generation accounts.
Investment expense ratios

****

Standard portfolios: 0.09% – 0.11%  and SRI portfolios: 0.13 – 0.14%.
Account fees

*****

None.
Portfolio mix

***

·         Conservative, Balanced, Growth, SRI and Halal.

·

Socially responsible portfolio options

*****

Yes.
Tax strategy

***

Yes, tax-loss harvesting is available.
Automatic rebalancing

*****

Yes.
Human advisor option

****

Yes.
Savings account/cash management account option

*****

Yes.
Customer support options (includes website transparency)

****

Phone and email support available.

Wealthsimple Fees and Plans

At this stage of the Wealthsimple review, we look at the fees and plans of Wealthsimple.

Account Type Deposit Amount Management Fee
Basic $0 – $100,000 0.5%
Black $100,000+ 0.4%
Generation $500,000+ 0.4%

 

Wealthsimple has three different plans, with each having a different cost and fees.

Wealthsimple Plans and Fees

1. Wealthsimple Basic

This plan is suitable for investors with net deposits ranging from $0 to $100,000. With this plan, you are charged a monthly management fee of 0.5% of your account.

Furthermore, the Wealthsimple Basic plan consists of portfolio customization. It also consists of auto-rebalancing, auto-deposit, expert financial advice and dividend reinvestment.

2. Wealthsimple Black

Wealthsimple Black plan is suitable for those with more than $100,000 net deposits. It has a slightly lower monthly management fee of 0.4% compared to the Basic plan.

Additionally, the Wealthsimple Black plan comes with extra features. This includes tax-loss harvesting help, tax-efficient funds and financial planning session.

3. Wealthsimple Generation

Wealthsimple Generation plan is suitable for those with net deposits of  $500,000 or more. It charges a monthly management fee of 0.4%.

Furthermore, the Wealthsimple Generation plan comprises all the features of the Black plan. It also comes with extra features. This includes asset allocation, financial planning and customized portfolios etc.

How Do I Invest With WealthSimple?

My Wealthsimple review will not be complete without guiding you on how to invest.
 
To invest with Wealthsimple, you’ll have to create an account with them. This involves filling out an online application, which consists of 5 main parts.

However, to invest with Wealthsimple, you must first create an account by completing an online application … which involves the following steps:

  1. Sign up: The first step is to sign up with your username and password.
  2. Personal details: You will be asked to provide some personal details. This includes your full name, Social Insurance Number (SIM) and date of birth.
  3. Customize your Portfolio: You are now ready to customize your portfolio. This will be based on your financial objectives and risk tolerance.
  4. E-Sign: You can now complete your application by e-signing an Investment Management Agreement.
  5. Add Funds: You will be required to connect your bank account to your Wealthsimple account. Next, make deposit funds to start investing.

A brief consultation with Wealthsimple’s portfolio manager might be wise. He or she will help you analyze your investment background and objectives.

This is referred to as a “suitability call.” It is used to guarantee that the investment objectives are fulfilled.

Therefore, if everything goes smoothly… your Wealthsimple account should be activated within five business days.

How Does Wealthsimple Compare to Other Advisors?

To provide an unbiased Wealthsimple review, it’s important to compare Wealthsimple with other Robo-advisors.

Features Wealthsimple Questwealth Portfolios CI Direct Investing
Welcome offer $75 bonus for a $500 minimum deposit None Up to $10K managed free annually
Management fees 0.4% or 0.5% annually 0.2% or 0.25% annually 0.35%–0.6% annually
MER Approx. 0.2% Regular portfolios: 0.11%–0.23%;

SRI portfolios: 0.21%–0.35%

ETF MERs: 0.16%–0.26%;

Private Investment Portfolios’ MERs: 1.00%–1.55%

Minimum Balance None $1,000 $1,000

How to Buy Stocks in Canada

Understanding Wealthsimple review is one thing. Knowing how to buy stocks in Canada is another.

The days of investors contacting stockbrokers to execute a trade are gone. The emergence of discount brokerages implies the process of stock investment in Canada.

You can now buy and sell stocks in Canada. How? through online stock exchange sites such as Wealthsimple Trade.
 
So, here are five simple steps on how to go about buying stocks in Canada:
  1. Visit any online brokerage such as Wealthsimple to open a self-directed account.
  2. Create an RRSP, non-registered or a TFSA
  3. Automate the deposit by connecting your chequing/savings account with your investment account.
  4. Select a balanced and diversified investment approach.
  5. Get ready to invest based on your investment goal and risk tolerance.

Congratulations, a potential investor!

Final Verdict on Wealthsimple Review

From the above Wealthsimple Review, you’ve learnt that Wealthsimple is a Robo-advisor. It is also a trading platform that uses technology to manage your investments or savings.

Based on my personal experience, I have presented to you the ups and downs of Wealthsimple. Also, I have made some comparisons to help you make an informed decision.

I even went a step further to guide you on how to handle your stock investment yourself. That’s through one of the best online stock trading platforms out there.

So by now, I’m confident that you know what is the best option for you. That’s, whether to go with Wealthsimple or use its alternative, or better Do-it-Yourself.

Above all, choose a trading platform that aligns with your investment objectives.

FAQs on Wealthsime Review

Is Wealthsimple a good investment?

Yes. According to the findings of this Wealthsimple review, Wealthsimple is the top Canadian Robo-advisor.

This is because of its low fees, zero commissions, ease of use and unique perks.

Can Wealthsimple be trusted?

Absolutely, Wealthsimple can be trusted. Wealthsimple provides a simple, robust, and safe platform for you to invest and grow wealth. Also, all available balances in your Wealthsimple Cash account are now eligible for protection from the Canada Deposit Insurance Corporation (CDIC). The CDIC is a federal Crown corporation owned by the government of Canada.

Is Wealthsimple good for beginners?

Yes, Wealsimple is good for beginners because of its hands-off investment approach. This makes it easy to use by both experienced and inexperienced investors.

Can you make money on Wealthsimple?

Yes. You can make money on Wealthsimple. Unlike other financial institutions,  Wealthsimple has no commission and monthly fees.

Also, Wealthsimple has no minimum account balance. That’s to say; you can start investing with as little as $1.

Is Wealthsimple really free?

Yes. Wealthsimple is really free. Wealthsimple does charge monthly fees and commission fees for all transactions. It is the only online broker in Canada to boast of that.

Is Wealthsimple safe for SIN?

Yes, Wealthsimple is safe for SIN. This is because top bodies regulate Wealthsimple. They ensure that all your information is safe with Wealthsimple.

Should I open a TFSA with Wealthsimple?

If you wish. Wealthsimple TFSA gives you tax benefits of all deposits and withdrawals.

Furthermore, your Wealthsimple TFSA doesn’t have an account minimum. Also, You can withdraw your money anytime without penalties.

Is it safe to link a bank account to Wealthsimple?

Yes, it is safe to link a bank account to Wealthsimple. This is because Wealthsimple has advanced security protocols. This makes your bank account safe.

Also, your deposits in Wealthsimple are insured by the Canadian Investor Protection Fund (CPIF). That’s to say, if Wealthsimple goes bankrupt, your deposits are safe.

What banks does Wealthsimple support?

Before now, Wealthsimple only supports the big Canadian banks. This includes Royal Bank of Canada, TD Canada Trust, Scotiabank, CIBC, Simplii Financial, Tangerine Bank of Montreal and Desjardins.

But now, Wealthsimple supports all banks in Canada.

How do I remove my bank account from Wealthsimple?
  • Visit my.wealthsimple.com.
  • Sign in to your profile.
  • Choose your name.
  • Navigate to Settings.
  • Go to the Banks & Apps tab.
  • Remove your account.
How do I manually link a bank account to Wealthsimple?
  • Open the Wealthsimple app.
  • Navigate to your Wallet balance
  • Click Add.
  • Enter your bank transit number, account number, bank institution number, and attach a government-issued ID document.
How do I upload documents to Wealthsimple?
  • Look for your bank statement.
  • Login to your RBC Online Banking.
  • Navigate to the ‘Documents’ button at the top-right corner.
  • Upload your documents.
How do I cancel a pending payment on Wealthsimple?
  • Visit my.wealthsimple.com
  • Sign in to your account.
  • Go to the Activity page.
  • Click Cancel at the right-hand side of the deposit(s).0
Can I cancel a Wealthsimple transfer?

Yes. To cancel your Wealthsimple transfer, visit the Funding Page of your account.

But bear in mind that once your bank gets your transfer request, you can’t cancel it.

How do I cancel my Wealthsimple TFSA?

If your account is funded, you must sign in to your account on a web browser and:

  • Sign in to your Wealthsimple account.
  • Make a withdrawal from your bank account.
  • Cancel any transfer that you schedule.
  • Turn Roundups or Overflow off.
Can I buy US stocks in Wealthsimple?

Yes. You can buy US stocks in Wealthsimple. Once the US stocks meet Wealthsimple requirements, you can trade them using your Canadian dollar amount.

However, a 1.5% currency conversion fee applies. But the experience is seamless.

Can I buy IPO on Wealthsimple?

No. You can’t buy IPO on Wealthsimple. This is because it doesn’t support direct participation in the IPO of a company.

However, you can only buy available shares of the company.

Can I buy Vanguard ETF through Wealthsimple?

Yes. Wealthsimple provides Vanguard ETFs. So you have nothing to miss.

Finally, if you have more questions on this Wealthsimple review, kindly let me know in the comment section.

Wealthsimple Review
Wealthsimple

Product Name: Wealthsimple Investment App

Product Description: Wealthsimple is a top Robo advisor in the world, with offices in Canada, Europe, and the United States. Headquartered in Toronto, Canada, Wealthsimple has a squad of world-class finance and the finest technical experts creating market solutions to help grow your investment.

Overall
4.8
  • Ease of Use
    (5)
  • Portfolio Mix
    (5)
  • Investment Options
    (5)
  • Cash Management
    (5)
  • Innovative Products
    (4)
  • Human Advisors
    (4.5)
  • Customer Support
    (5)
User Review
5 (1 vote)

Summary

Wealthsimple is a top Robo advisor in the world, with offices in Canada, Europe, and the United States. Headquartered in Toronto, Canada, Wealthsimple has a squad of world-class finance and the finest technical experts creating market solutions to help grow your investment.

Pros

  • Ease of Use
  • Zero Management Fees
  • Huge Investment Portfolio
  • Customer Service

Cons

  • NONE
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