Can you trade options on Wealthsimple?
- Asked By
- Updated On:12-Apr-2023
- Replies:1
Short Answer
Yes, now you can trade options through the Wealthsimple platform. Options trading is only available on the latest version of the Wealthsimple mobile app in your DIY accounts. You'll be able to buy or sell options in any of your self-directed trading accounts through the Wealthsimple mobile app. The best part is, there is no minimum account balance required.
Detailed Answer
An option is a contract giving you the right (but not an obligation) of buying or selling a stock at a specific price by a certain date.
Great News! Wealthsimple has taken the initiative to allow Option Trading on its platform thereby making it simpler for traders to earn more money.
Wealthsimple has kept the options pricing flat, starting at just $2 USD per contract.
What is Wealthsimple?
Wealthsimple is an online investment and trading platform that has its presence in Canada since 2014. It offers investment accounts for individuals, corporations, partnership firms and unincorporated organizations. It is under the Investment Industry Regulatory Organization of Canada (IIROC). The company’s funds are also insured under Canadian Investor Protection Fund (CIPF).
What are the accounts offered by Wealthsimple?
Wealthsimple offers the following investment accounts:
- Tax Free Savings Account (TFSA)
- Registered Retirement Savings Plan (RRSP)
- Spousal RRSP
- Registered Education Savings plan (RESP)
- Locked-in retirement Account (LIRA)
- Business savings account (Business Save)
- Business investment account (Business Invest)
What are the products offered by Wealthsimple?
Here is a list of products that Wealthsimple offers:
Wealthimple Invest:
A robot advisor where you are required to fil up a questionnaire. The robot analyses your risk tolerance, investment timeframe, goals and objectives and invests your funds in a default portfolio that is best suited to you.
Wealthsimple Trade
This is used for manual trading. People who are experts in trading can use this to invest and trade in financial instruments.
Wealthsimple Cash
is a high interest savings account that offers competitive interest rates whilst being liquid.
Wealthsimple Crypto
is where you can own cryptocurrency. Wealth simple is the first regulated platform that offers fifty plus crypto options such as bitcoins, Ethereum, dogecoin etc.,
Wealthsimple Tax
This is used for automated tax filing services.
Investment Options offered by Wealthsimple
- Shares
- Fractional shares
- Exchange Traded Funds
- Managed Funds
- Cryptocurrency
- Savings Account
Can you trade options on Wealthsimple?
Options are financial derivatives, and their value is derived from their underlying assets. A Call Option is where the owner has the right to buy the underlying asset at the strike price. A Put Option gives the owner the right to sell the underlying asset to sell at strike price. Both options must be implemented before the expiry date.
Wealthsimple has started offering Option trading for its account holders to own, invest or trade options.
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Discussion (0)
There are several choices available to Canadians who want to invest in the stock market online. Questrade ranks higher a sone of the best stock trading site for a beginner in Canada, offering access to both the Canadian and American stock markets.
Whether you choose a broker or invest in a bank, both of them can be crucial. Usually, the initial investors prefer banks and when they want more flexibility they invest in a broker to do all the middle work.
TD Direct Investing has re-enabled the ability for new Canadian customers to sign up for Thinkorswim platform. So, now you can open an account with a requirement of minimum deposit of $25,000 USD. You can find Thinkorswim as a top-of-your game-traders platform on their official site.
Earlier, ThinkorSwim was not available to Canadian users for sometime. TD-Direct Investing, which was providing the platform to its users had replaced it with another trading platform known as Advanced Dashboard.
But, now Canadian citizens who have a TD account can access ThinkorSwim. In order to get ThinkorSwim, you need to have a TD Ameritrade account which is a U.S based broker.
There are various online brokerage platforms in Canada. We believe that Questrade, Scotia iTrade and CIBC investor's edge are the best alternatives to Wealthsimple.
Are you a Canadian citizen wondering if you can open a bank account in USA? We have an answer to your query. Yes, Canadians are eligible to open a savings or a chequing bank account in the United States of America.
This is a tricky question and does not have an exact answer. However, an average Canadian is likely to invest less than $2,000 in stocks. This number is not fixed and may go up or down based on an individual's earning, saving, expenses and financial gaols.
Fees vary depending on the type of account, the products traded, and the volume of trades. For equity trades, a flat rate of CAD 0.005 per share, with a minimum of CAD 1.00 and a maximum of CAD 0.5% of the trade value. For options trades, the fee is CAD 1.00 + CAD 0.75 per contract. There is also an annual account management fee of CAD 10.00.
There are many alternatives to Thinkorswim in Canada. Some noteworthy platforms are Questrade, Wealthsimple & Scotia iTrade.
Yes, Interactive Brokers is available in Canada. It offers a wide variety of investment products, including stocks, bonds, options, futures, currency, etc., making it one of the best options for trading and investing.
No, Virtual Brokers is not completely free. Only the account opening and maintenance is free but there are multiple other charges that you will have to incur. There are platform charges for using the advanced trading platform that it offers. Similarly, you will have to pay commissions on the trades that you execute on the platform. Apart from that, there are also some additional administrative and market data fees that you will have to pay while using Virtual Brokers.