Welcome to Money Reverie’s panel of judging the good and ugly sides of Wealthsimple Trade.
Whether you’re a beginner, experienced, passive or active investor…
Trading fees are no longer your barriers with ETF and stock trading. This is the Wealthsimple Trade guarantee.
I am a living witness to that. Wealthsimple Trade offers what no other online brokerage or financial institution provides in Canada. That’s zero commission for all trades.
But is Wealthsimple Trade a good investment for you? Wealthsimple Trade is for all, but not everyone is suitable for Wealthsimple Trade.
So in this Wealthsimple Trade review, I explore both the good and ugly sides of Wealthsimple Trade. This will help you determine if it’s worth it, or if you should consider its alternative.
It’s important to begin this Wealthsimple Trade review with an overview of Wealthsimple.
Wealthsimple is a leading Canadian Robo-advisor with headquarters in Toronto. It has branches across Canada, the UK and the US.
Established by Michael Katchrn in 2014, Wealthsimple aims to provide top-notch financial services to all.
Wealthsimple has more than 1.5 million customers worldwide. It also has more than 8.4 billion Canadian dollar assets under management.
Thus, it is obvious to see why Wealthsimple is the leading Robo-advisor in Canada.
Wealthsimple launched Wealthsimple Trade in March 2019. This has attracted many investors due to its commission-free status on buying and selling individual stocks and ETFs.
Subsequently, in this Wealthsimple Trade review, you shall learn more about Wealthsimple Trade to make the best decision.
What is Wealthsimple Trade?
Wealthsimple Trade is one of the products of Wealthsimple that guarantee commission-free stock and ETF trading.
That’s to say, Wealthsimple Trade doesn’t charge any commission on buying and selling stocks and ETFs.
This is laudable because most online brokerages in Canada charge up to $9.95 commission for stock trading.
Furthermore, unlike other Canadian online brokerages, Wealthsimple Trade has no minimum balance. That’s to say, you can start trading with as low as $100.
So in the course of this Wealthsimple Trade review, you will learn more about what Wealthsimple Trade entails.
How Does Wealthsimple Trade Work?
Wealthsimple Trade works in a similar way with online investing platforms.
That’s, you buy and sell stocks through the web. This is so convenient compared to brick-and-mortar banks.
However, what distinguishes Wealthsimple Trade from other online brokerages is its trading platform.
At the moment, you can only Trade on Wealthsimple Trade with your smartphone. In contrast, other online brokerages can be accessed both on desktops and smartphones.
Nevertheless, the Wealthsimple Trade interface is so intuitive and easy to access on a smartphone.
Is Wealthsimple Trade Safe?
Yes, Wealthsimple Trade is safe based on my experience and the findings of this Wealthsimple Trade review. This is why it has more than 1.5 million customers worldwide.
Wealthsimple is a member of the Canadian Investor Protection Fund (CIPF). This implies that your deposits are insured up to $1,000,000.
Additionally, Wealthsimple Trade is a member of the Investment Industry Regulatory Organization of Canada (IIROC). Thus, its activities are also regulated by this organization.
To ensure that your money and information are safe, Wealthsimple Trade uses advanced data encryption and two-factor authentication (2FA) protection.
Who Should Use Wealthsimple Trade?
Based on the findings of this Wealthsimple Trade review, Wealthsimple Trade is for everyone, but not everyone is for Wealthsimple Trade.
That’s to say, Wealthsimple Trade is suitable for investors looking for a low-cost index ETFs portfolio.
Thus, both beginners and casual investors looking for a zero-commission trading platform can use Wealthsimple Trade.
Who Should Not Use Wealthsimple Trade?
Like I said earlier, this Wealthsimple Trade review finds that Wealthsimple Trade is for all, but not everyone is for Wealthsimple Trade.
Thus, intermediate and seasoned investors looking for detailed investment analytic tools and real-time quotes… may not find Wealthsimple Trade suitable.
Furthermore, Wealthsimple Trade has limited trading options. That’s, you can only trade stocks, ETFs and cryptocurrency with it.
For those who want to invest in mutual funds, bonds, options, IPOs, OTC assets, GICs etc… Wealthsimple Trade is not ideal.
Wealthsimple Trade Pros and Cons
Based on my personal experience and the findings of this Wealthsimple Trade review… the following are the pros and cons of Wealthsimple Trade:
- The first and only zero-commission trading platform in Canada.
- Free access to thousands of ETFs and stocks.
- Registered and non-registered account investment options.
- Sign up bonus of up to $25 upon initial $100 investment.
- Easy to use both for beginners and experienced investors.
- Wealthsimple Trade is limited to the trading of ETFs, stocks, and cryptocurrency.
- Limited trading platform. (You can only use a smartphone or tablet to trade).
- 5% fee for currency conversion.
- Lack of comprehensive educational and investment analytics tools.
- No automation feature on recurring deposits.
Subsequently, in this Wealthsimple Trade review, you shall know the implications of the above pros and cons of Wealthsimple Trade.
Key Features of Wealthsimple Trade
Here are the key features of Wealthsimple Trade that make it unique in the market:
- Commission-free trading: You can trade many stocks and ETFs on Wealthsimple Trade without commission charges.
- Zero trading fees: You don’t have to worry about trading fees with Wealthsimple Trade, unlike other online brokerages.
- $0 account minimum: Wealthsimple Trade has no account minimum. You can start trading with as low as $100.
- Intuitive and user-friendly: Wealthsimple Trade trading platform is easy to use both by beginners and experienced investors.
- Thousands of stocks and ETFs: You can trade thousands of Canadian and US stocks and ETFs with no commission on Wealthsimple Trade.
- Protection: Your deposits up to $1,000,000 are insured by Canadian Investor Protection Fund (CIPF) on Wealthsimple Trade.
- Search and tracking stocks tool: Wealthsimple Trade has a reach and tracking tool for easy identification and monitoring of stocks.
What Can You Trade on Wealthsimple Trade?
You can trade Wealthsimple Trade on any stock within:
- Toronto Stock Exchange (TSX) and
- New York Stock Exchanges (NYSE)
- TSX Venture Exchange (TSVX)
Therefore, your investment must not be on the Canadian and US stocks alone. You have access to index funds and ETFs on any of the above stock exchanges.
Although Wealthsimple Trade’s stock market has no international coverage, you can still trade index funds that monitor international stock performance from the above exchanges.
With Wealthsimple Trade, you can also trade cryptocurrency ETFs that monitor different market performances.
Furthermore, Wealthsimple promises to expand its assets over time.
Wealthsimple Trade Fees
As I noted earlier in this Wealthsimple Trade review, Wealthsimple Trade has no trading fees.
You can buy and sell stock and ETFs with no charges.
Also, Wealthsimple Trade doesn’t charge a fee on:
- Opening/closing your account
- Electronic statements
- Account Maintenance
- Inactive accounts
However, Wealthsimple Trade has small fees on services such as foreign exchange (1.5%). To see the complete list of Wealthsimple Trade, click here.
Wealthsimple Trade Review: My 5-Star Rating
The following table shows how this Wealthsimple Trade review rate Wealthsimple Trade 4.5/5 -stars.
|Financial Products||*** (3.5)|
|Trading Platform||*** (3.5)|
|Ease of Use||****|
As you can see, Wealthsimple Trade is doing well in most aspects. But it can do better by improving its financial Products z trading platform, and usability.
How to Open a Wealthsimple Trade Account
You have two options when it comes to opening a Wealthsimple Trade account. That’s, whether to open through the web or your phone.
- Sign in at my.wealthsimple.com
- Navigate to Add an account
- Select your account (whether TFSA, RRSP, Personal account, or Crypto)
- Provide your details as required
- Download the Wealthsimple Trade app (on iOS or Android device).
- Provide your personal and bank details.
- Fund your account and wait for like three days for the money to be deposited into your Trade account.
Once your money is deposited into your Wealthsimple Trade account, you can start trading right away.
You can choose to do a stock search to find stocks you can trade or add to your watchlist.
How to Fund Wealthsimple Trade Account
All you need to fund your Wealthsimple Trade account is to link your bank account. Then you can transfer $50,000 at once to your Wealthsimple Trade account.
However, it takes up to three days for the money to be transferred into your Wealthsimple Trade account.
Wealthsimple Trade has no automation feature at the moment for transfers from external banks. But it has an automation feature for transfers within its platforms.
Update on Wealthsimple Trade
Wealthsimple Trade recently announced that $3-a-month premium users can now access real-time quotes against a 15-minute delay.
Also, with this premium account, you can deposit $1,000 instantly to your Trade Account.
This means that you don’t have to wait up to three days for the money to be transferred into your Trade account.
Wealthsimple Trade vs Questrade
|Fees||No||Yes (Zero fees when you buy ETFs. But fees apply when you sell stocks and ETFs.)|
|Financial Products||Only U.S. and Canada-listed stocks and ETFs.||Mutual funds, bonds, options, IPOs, OTC assets, GICs, international equities, gold, silver and more.|
|Accounts Offered||TFSA, RRSP, and non-registered personal investment account||TFSA, RRSP, margin account, RESP, RIF, LIRA, LIF, and corporate investment accounts.|
|Intuitive Trading Platform||Yes||Yes|
Questrade is a household name in Canada that has been in DIY investing since its establishment in 1999.
Its low fees, range of accounts, low fees, and feature perks make it a popular alternative to Wealthsimple Trade in Canada.
As you can see from the above table, Questrade shares little similarities and more differences with Wealthsimple Trade.
Accordingly, if you’re looking for a trading platform with multiple ranges of Accounts… Questrade is the ideal choice.
But if you’re more concerned about trading fees and account minimum… Wealthsimple Trade is your excellent choice.
The truth is, you can’t make the wrong choice with any of them once you know what you’re looking for.
However, I suggest you learn more about Questrade before making a final decision. Click here to read a comprehensive review of Questrade portfolios.
Verdict on Wealthsimple Trade Review
There you have it! Wealthsimple Trade is a cost-effective trading platform that is second to none in Canada.
Wealthsimple Trade is the first and only trading platform in Canada that charges no commission on stocks and ETFs trading.
That’s, trading on this platform will save you a lot of dollars on fees and helps you invest more.
However, Wealthsimple Trade has some limitations that make it not a perfect option for every investor.
With limited financial products, limited trading platform, lack of comprehensive educational and analytics tools…
Wealthsimple Trade appeals more to beginner and casual investors who want to get their legs wet in the stock market.
Nevertheless, if you’re more concerned about commission-free trading and a $0 account minimum… Wealthsimple Trade is ideal for you.
Else, Questrade should be your alternative.
FAQs on Wealthsimple Trade Review
Does Wealthsimple Trade Charge Any Fees?
Wealthsimple Trade has no commission fees, inactivity fees, withdrawal fees or maintenance fees. However, it has charge currency conversion fees and other service fees.
Does Wealthsimple Trade Have Any Hidden Fees?
Wealthsimple Trade has no hidden fees. As I noted above, Wealthsimple Trade charges no commission fees, withdrawal fees, maintenance fees or inactivity fees.
Besides its currency conversion fee (1.5%) and other services fee, Wealthsimple Trade has no hidden fees.
How Long Does it Take to Get Started with Wealthsimple Trade?
You can open a Wealthsimple Trade account in just a few minutes. Before now, it takes up to three days to deposit the money you transfer into your Wealthsimple Trade.
However, with the latest premium account update of Wealthsimple Trade, you can deposit up to $1,000 to your account and start trading right away.
Is Wealthsimple Trade Legit?
Yes. Wealthsimple Trade is legit. This is because it’s is a member of the CIPF and IIROC. This means that your money and information on Wealthsimple Trade is protected.
Can I Transfer from Wealthsimple to Wealthsimple Trade?
Yes, you can transfer from your other Wealthsimple account to your Wealthsimple Trade with automation. However, the transfer must be in cash.
If you have more questions on this Wealthsimple Trade review, let me know in the comment section.
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
The primary purpose of Money Reverie is to help everyday Canadians make better financial decisions by providing up-to-date financial news and information, reports, product reviews, and government programs.