Wealthsimple Review
Richard Montana | August 2, 2022
Table of Contents
Wealthsimple is an online investment management service that enables you to invest in a globally diversified portfolio of low-cost index funds while using their advanced investing technology to help you reach your financial goals. Its services include automatic rebalancing, dividend reinvesting, and tax loss harvesting. Both first-time and seasoned investors will find the perfect combination of features and can enjoy commission-free trading with Wealthsimple Trade. Investors who don’t want to make trades can take a risk-free survey and get a customized portfolio with Wealthsimple Invest. I think they have a good range of investment products and services that can cater to investors of all experience levels. I think Wealthsimple can be a viable option of you are a passive investor and don’t require complex analytical tools. However , if you are an active trader looking for in-depth market analysis and professional trading platforms, then you may want to consider another broker such as AvaTrade instead.
Pros & Cons
- Good range of modern and intuitive apps for managing your funds
- Generous selection of Stocks, ETFs and Cryptos
- Free portfolio analysis with access to professional advisors for bespoke advice
- Socially responsible investment options
- No account minimums required
- No additional fees
- Quite high account management fees
- Limited tools for detailed market analysis
- Could offer more account funding options
- Stocks, ETFs and Cryptos only
- Available to Canadian residents only
Summary
Wealthsimple is a multi-platform banking and investing service that was founded in September 2014 by Michael Katchen and is based in Toronto. It operates through five product offerings: Invest, Trade, Crypto, Tax, and Cash. Wealthsimple Trade is an online brokerage and discount brokerage that allows investors to make self-directed stock and ETF trades on major exchange markets in the United States and Canada. The online brokerage does not charge trade commissions, meaning stocks and ETFs can be purchased and sold at no cost. They also have a great selection of other services for exchanging cryptos, making payments and managing your taxes. Over the years, Wealthsimple has bagged several industry awards in honour of their excellent financial services. The awards include Best Financial Services Website and Top 100 Global Financial Technology Companies.
Regulation
Wealthsimple is regulated in multiple jurisdictions according to the financial products they offer. This can help to give you peace of mind that they operate in an honest and transparent manner at all time. They provide its services to citizens and residents of Canada. If you are located somewhere else, please feel free to browse our broker review for some alternative options.
Wealthsimple Trade is offered by Canadian ShareOwner Investments Inc., a registered investment dealer in each province and territory of Canada, a member of the Investment Industry Regulatory Organization of Canada (IIROC), and a member of the Canadian Investor Protection Fund (CIPF).
Wealthsimple Invest and Work are offered by Wealthsimple Inc., a registered portfolio manager in each province and territory of Canada.
Wealthsimple Crypto is offered by Wealthsimple Digital Assets Inc., a registered restricted dealer in jurisdictions other than Québec. Crypto-assets are not protected by the Canadian Investor Protection Fund, the Canadian Deposit Insurance Corporation, or any different investor protection insurance scheme.
Wealthsimple Payments Inc. offers Wealthsimple Cash product; a Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) registered money services business.
SimpleTax Software Inc. offers Wealthsimple Tax under the terms of the Wealthsimple Tax User Agreement.
Platforms
Wealthsimple provides investors and traders with intuitive apps that are designed to ensure hassle-free financial investments. The platform can be accessed via desktop and web interfaces, and modern mobile investing apps that are compatible with Android and iOS devices. You can choose to download the apps relevant to the services that you are looking for, whether that be investing, trading, managing cash or doing taxes.
Wealthsimple Trade
The Wealthsimple Trade app is a commission-free investment platform allows you to trade stocks without extra fees. With the Wealthsimple Trade, you can build your passive investing portfolio of ETFs or buy shares in companies you trust. This is investing made simple. Buy and sell thousands of stocks and ETFs, trade cryptocurrency, build an automated portfolio, or earn stock and crypto rewards in one app. You can own slices of companies you believe in with fractional shares. The app has relatively low fees with no account minimums. Whilst day trading is not generally encouraged in their trading accounts, however, it is possible. Assets are immediately available to sell after being purchased, and when an asset is sold, the proceeds are available to use towards a new purchase right away.
Wealthsimple App
Wealthsimple Invest
Wealthsimple Invest is a robo-advisor and automated investing platform that makes trading decisions on behalf of its clients using a computer-driven algorithm. The Company combines a robo-advisor platform with access to live advisors, providing you with an investment advisor who helps match you with investments that suit your long-term goals and risk tolerance. This can be a good option for those of you who are looking for a hands-off investing solution. You can schedule a portfolio review, ask an account question, or get advice when you need it. And the Wealthsimple money experts have a fiduciary responsibility to give advice that’s in your best interest. Investors looking to open an investment account can now do so with just the swipe of a finger.
Wealthsimple Invest
Wealthsimple Crypto
Wealthsimple Crypto is a regulated crypto platform that allows traders to sign up within five minutes with a $0 minimum and instantly start trading various cryptocurrencies 24/7, including Bitcoin and Ethereum. You can build a portfolio of cryptos with top-notch security, from the most popular tokens to up-and-coming DeFi coins, they will help you trade safely. Wealthsimple Crypto is made available through the Wealthsimple Trade app. I like how you can trade them all in one easy-to-use app. Transfer coins to and from your Wealthsimple wallet in just a few taps. No complicated software or account minimums — just simple and secure crypto trading.
Wealthsimple Crypto
Wealthsimple Cash
The Wealthsimple Cash app allows users to send, request, and receive money seamlessly from friends and family. This is a quick and easy way to settle balances and make payments. You can claim your unique handle, connect your contacts and start sending money to anyone for anything. I think it is cool how you can add a personal message complete with your fav emojis. There are no account fees, no fees on deposits, withdrawals, or foreign exchange, and sending and receiving money is always free.
Wealthsimple Cash
Wealthsimple Tax
The Wealthsimple Tax app is the firm’s online tax software that allows users to file their taxes with a smart technology that is simple, accurate, and secure. Whether you’re filing for the first time or calculating your capital gains on stock and crypto trades, they make it easy to be your own tax expert. Wealthsimple Tax is a free way to file income taxes, but it’s probably best for those with a basic tax situation. I think it can be useful for those who aren’t great with numbers and want everything figured out for them. However, I would certainly be seeking professional tax advice from an expert to get everything verified.
Wealthsimple Tax
Tools
Wealthsimple offers financial tools to help investors grow and manage their money. You will find plenty of tools built-in the provided platforms that can help you do everything from finding investment opportunities to managing your money and taxes. The tools help to make everything as convenient as possible. However, I do feel that active traders may find the tools to be lacking in terms of market analysis. If you are looking to use technical indicators to conduct in-depth market analysis and day trade, then you might want to consider an alternative option from our best trading apps.
Education
There is a decent selection of various learning resources on the Wealthsimple website which are designed to help guide traders in making their investment decisions. These educational resources include guides, blogs, articles, FAQs and masterclasses. I think there is enough to learn some of the basic but they don’t quite compare to some of the best brokers for beginners who have dedicated trading academy’s to help bring you up to speed.
Markets
You can buy or sell stocks, ETFs and select cryptocurrencies in a self-directed trading account as long as they meet the Wealthsimple eligibility criteria. They only support stocks and ETFs in self-directed trading accounts. They don’t support any other assets in self-directed trading accounts. You can trade ETFs and stocks on the following exchanges:
- Toronto Stock Exchange (TSX)
- TSX Venture Exchange (TSXV)
- New York Stock Exchange (NYSE)
- NASDAQ
- NEO
- Canadian Securities Exchange (CSE)
- BATS Exchange
I found there to be a good selection with over 1,000 stocks and ETFs to trade commission-free. I like how there is no account minimums, no paperwork and no brokerage required. You can start trading stocks with just $1. At the moment, Wealthsimple is one of the only trading platforms in Canada that allows fractional shares, allowing you to buy and sell portions of U.S. and Canadian companies’ shares in increments as small as a single dollar. However, I think they are lacking in asset classes as they don’t support any other assets in self-directed trading accounts, including forex, mutual funds, options, futures and bonds. If you want a greater selection of financial instruments, you may want to look at Forex.com as an alternative.
Accounts
You can choose from a variety of accounts depending on your financial goals. Open a personal investment account, or get the tax benefits of registered accounts like TFSAs and RRSPs. Wealthsimple Trade allows clients to trade inside a TFSA, RRSP, RESP, LIRA, Corporate, or non-registered personal investment account. There are no minimums with quite low fees. They aim to make investing simple for everyone which is why they keep fees as low as possible. I do like how you never have to worry about keeping a minimum balance in your account and you can start investing with whatever amount you’re comfortable with. This is better than some other brokers who require minimum deposits in order to access more favourable account conditions.
Support
Wealthsimple has a reliable customer support team that can be reached 24/7 via telephone, email, support ticket, and social media. I like how they can be reached at any time as some other companies limit themselves to office hours. The client success team and portfolio managers are there to answer all your questions – from transferring an account to making a financial plan.
Funding
In terms of funding, you can deposit and withdraw funds to and from your Wealthsimple account using bank transfers and credit/debit cards. I think they could improve by adding support for some online payment processors and even cryptos. I wouldn’t always want to wait around days for a bank transfer to clear but appreciate that card payment can be a lot fast. However, they do have daily limits.
Conclusion
Overall, I think that Wealthsimple has a good range of investment products and services to help investors reach their financial goals and manage their money. They provide investors with the essential tools that they need to start making smart financial choices. You can get help to invest in stocks, ETFs, and cryptos. It offers an intelligent portfolio of low-fee funds that are designed to meet your own needs, but you can also build your passive investing portfolio of ETFs or buy shares in companies you trust. Whilst they can cater for clients of all experience levels, I would say they are more suited for those who are looking to invest over the long term. I feel that there are better options out there for day traders, some which you will find on our best brokers page. If you are based in Canada and looking to invest for the long haul, Wealthsimple are certainly a top choice.
Min $0 Deposit
Wealthsimple provide modern ways to invest, trade, save, spend and file your taxes. They have a range of smart financial tools and expert advice to help you do more with your money.
About the Author
Richard Montana
Richard has many years of experience in broker research, testing, analysis and reviews. He knows what to look for through years of trading himself with different brokers and listening to the feedback of others.
Review Methodology
For all of our broker reviews, we research, validate, analyse and compare what we deem to be the most important factors to consider when choosing a broker. This includes pros, cons and an overall rating based on our findings. We aim to help you find the best broker according to your own needs. You can read more about our review process.