Wealthsimple: Online Broker Canada Review: 2024

Canadians have got more new and better platforms for trading in recent years where the cost is lower and the interface and navigation becomes much more user-friendly. And the credit goes to rise in online brokers and robo advisors.

Let’s move on to the review of such an online broker Wealthsimple.

About Wealthsimple

Launched in September 2014 by Michael Katchen, Wealthsimple is an online Canadian broker offering you thousands of stocks and ETFs on the major Canadian and U.S. exchanges. A leading robo advisor is a fast growing fintech company in Canada.

The broker focuses largely on zero-commissions, no-account minimums, user-friendly interface and great mobile-trading experience. Therefore, you can make as many trades you want at just $0 as a commission.

Wealthsimple Trade is a part of Canadian ShareOwner Investments, a member of IIROC, CIPF, and is also a registered investment dealer. Therefore, Customer accounts are protected by CIPF in case the ShareOwner becomes insolvent.

Although it lacks market research, tools and live quotes, but with zero commission, it can be a good option if you can go with a self-directed platform.

How Wealthsimple Trade Works?

• Wealthsimple Trade offers a self-directed platform and as it works through mobile application, you have to first download it from Google Play Store or Apple Store.

• Then you need to sign-up or if you have Wealthsimple credentials, you can sign-in with that also.

• Then you have to choose the account type from Personal, TFSA, or RRSP depending upon your requirements.

• Link your bank account and get the funds transferred to it.

• Now you can start trading by just searching the stock.

• With just a few taps on your screen, the stock is yours.

Wealthsimple Features

• Wealthsimple allows you to trade thousands of ETFs and stocks that are listed on the major Canadian and U.S. exchanges.

• Unlike most of the self-directed platforms available in the market, Wealthsimple does not charge you anything whether you buy or sell.

• It also does not charge you withdrawal fees, inactivity fees and maintenance fees. So, we can very well say that money saved is money earned.

• Wealthysimple application is well designed and user-friendly. The mobile application is simple, clean, and easy to use.

• It offers protection to your account for upto $1,000,000 by the Canadian Investor Protection Fund (CIPF).

• It offers three types of accounts: Personal, TFSA, and RRSP.

What does Wealthsimple offer?

Wealthsimple’s offerings are very limited to Stocks and ETFs listed on popular Canadian and U.S. exchanges.

Wealthsimple Commission and Fees

Wealthsimple Trade comes with no fees broker, and that’s the best part why traders love it.

Particulars Fees/Commission

Stocks: $0

ETFs: $0

Account opening and closing: $0

Withdrawal funds: $0

e-Statement fees: $0

Inactivity fees: $0

Wealthsimple Trading Platform

Wealthsimple has a smartphone application available for both iOS and Android, and it is the only way to trade. So, yes there is no availability of web and desktop platforms unlike other brokers.

The interface is user-friendly and you can actually trade in just a few clicks. But it lacks functionalities like investing tools, charts, and market research & analysis.

Wealthsimple Accounts Offered

Wealthsimple offers you three types of accounts to trade from:

**1. Personal account: **They non-registered personal investment accounts which are easiest to open with easy withdrawing. Also, there is no worry associated with this account and you can park any amount of money that you want.

*2. TFSA account: Tax Free Savings Account: * TFS is the popular tax-free savings account which is used to avoid taxes when you make gains over the time.

3. RRSP account: Registered Retirement Saving Plan: This was introduced by the Canadian government and is the most common retirement account of Wealthsimple Trade which lets you avoid paying taxes before you retire. So, you then pay after you retire.

Pros & Cons of Opening Account with Wealthsimple

Wealthsimple Pros:

• There is no commission charged whether you buy or sell stocks and ETFs.

• Easy and intuitive trading platform from your smartphone.

• Thousands of Stocks and ETFs to choose from Canadian and U.S. exchanges.

• Protection of accounts by CIPF for upto $1,000,000.

• Protection of your financial information with two-factor authentication security

Wealthsimple Cons:

• Limited account types are offered i.e. non-registered personal accounts, TFSAs, and RRSPs.

• Limited asset classes to offer i.e. only stocks and ETFs.

• You can only use mobile for trading, but not web or desktop.

• Wealthsimple Trade lacks research tools and analysis reports, and it is literally self-directed without any support.

• The stock quotes have a delay of 15 minutes, therefore they are not updated in real-time.

Wealthsimple Key Highlights

• Wealthsimple offers you thousands of stocks and ETFs on the major Canadian and U.S. exchanges.

• The broker focuses on $0 commissions whether you buy or sell with no account opening and closing fees, no-account minimums, no inactivity fees, and no withdrawal fees.

• It offers 3 types of accounts: Personal, TFSA, and RRSP.

• It offers protection up to $1,000,000 to your account by the CIPF.

• You can only use mobile applications for trading.

• It lacks research tools, real-time quotes, and analysis reports.

Who can use Wealthsimple?

With no-frills, Wealthsimple trading app is just very basic in nature and is ideal for someone who is a casual or novice trader who wants to wet their feet in the market without paying fees.

Wealthsimple Review

Wealthsimple is Canadian online investment management service that allows traders to buy and sell stocks and ETFs on popular Canadian and U.S. exchanges

With simple and easy to use interface, and no hidden charges, it is a great platform for novice traders but definitely advanced and professional traders will prefer it because it lacks in asset class varieties, research, analysis, tools, real-time quotes, and account types.

Ask your questions here

Frequently Asked Questions or FAQs

Fractional Shares are a great way of innvesting into major companies and diversifying portfolio through buying parts of a company's share. Wealthsimple Trade allows its users to invest in fractional shares through their platform by visiting the "Fractional Shares" window.

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.

Are you wondering if a growing stock broker like Wealthsimple is good for beginners? Let's analyze the benefits of opening an account with Wealthsimple.

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.

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.

Wealthsimple Invest is for beginners and is fully automated, whereas Wealthsimple trade is for experts to buy and sell shares manually. Let's see which option to choose within the Wealthsimple platform.