Is Wealthsimple Trade Safe and Legit?

Short Answer

Looking at the whole bunch of emerging stock brokers, one is surely to worry about their safety and legitimacy. Are you wondering if Wealthismple is a safe and legit broker? Here we have a quick answer for you.

Detailed Answer

It is a very common question that comes to any rational person who wants to trade. And as we can not directly trade on exchanges and need brokers to facilitate trade, therefore it becomes more important to check and verify whether the broker you are choosing is safe and legit.

Below are some pointers which will clear your doubt whether Wealthsimple is safe and legit, or not!

Subsidiary of Wealthsimple:

Wealthsimple is a division of Canadian ShareOwner Investment Inc., which is a wholly owned subsidiary of Wealthsimple. And as we know Wealthsimple is a trusted Canadian company founded in 2014 providing investment management service.

If we look at the business of Wealthsimple, it is very rich in terms of innovation and product offerings. They offer Socially responsible investment funds, sync between investment accounts to budgeting software, Wealthsimple Save, etc.

Over $5 Billion Assets under Management:

The Toronto based company has more than $5,000,000,000 in assets under management and are currently serving over 175,000 clients, who trust them.

Regulatory Fulfilments:

Canadian ShareOwner Investment Inc. is a member of IIROC (Investment Industry Regulatory Organisation of Canada) and CIPF( Canadian Investor Protection Fund).

Protection of account:

Being a member of CIPF, customers are provided protection of their account for upto upto $1,000,000.

So if anything happens, your account will be held with Canadain ShareOwner, their custodial broker, and will be protected in case of insolvency within the specified limits by CIPF.

Encryption of financial information:

As claimed by the company, they use data encryption tools and techniques while handling your financial data. A 2FA (two factor authentication) protection is also provided so that nobody else can access your trading account other than you.

Powerful backing:

Again deducing from the first point itself, we can conclude that Wealthsimple Trade is backed by Wealthsimple which is further backed by $265 million investments from few of the world's largest financial institutions like Power Financial Corporation, Portag3 Ventures, and IGM Financial Inc.

Wealthsimple health centre:

Even if you counter any problem, there is Wealthsimple health centre which will solve all your problems and queries whether it is about Tax support, investing, type of account, advice needed, add/change bank details, or the transfer of money.

Is Wealthsimple safe and legit?

From all the above mentioned pointers, we can conclude that Wealthsimple is safe and legit. It is regulated by CIPF and IIROC, gives protection to your account by CIPF, protects your financial information with a two-factor authentication process, and has a great help centre to resolve your queries and issues.

So, when safety and security is combined with zero-commission trading of stocks and ETFs, no account minimums and different account types to trade, Wealthsimple Trade is definitely one of the best online brokers in Canada.

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