Wealthsimple Trade is an excellent trading platform offering a user-friendly interface, commission-free trading, and no minimum account requirements, perfect for beginners or those with moderate experience in investing.
With Wealthsimple Trade, you can easily trade stocks, ETFs, and even cryptocurrency without any fees. Whether you’re considering RRSPs, TFSAs, or non-registered accounts, you can open different types of accounts without facing any charges.
In this comprehensive Wealthsimple Trade review, we delve into the features, advantages, and user experience that set Wealthsimple Trade apart in the ever-evolving landscape of investment platforms.
Pros, Cons & Key Takeaways of Wealthsimple Trade
Wealthsimple Trade is a great trading platform that offers commission-free buying and selling of thousands of stocks. Its user-friendly interface and mobile-optimized investing dashboard make it easy to navigate and accept various payment methods, such as bank transfers and debit cards. In addition to traditional online stock trades, Wealthsimple Trade allows you to engage in other investment activities. It supports both taxable and registered (non-taxable) accounts such as RRSP and TFSA, and there is no minimum balance requirement when opening an account, making it accessible for investors with little money.
- 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 trading 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.
Overview of Wealthsimple Trade
Based in Toronto, Wealthsimple is a prominent Canadian Robo-advisor with a widespread presence spanning Canada, the UK, and the US. Founded by Michael Katchen in 2014, the company’s mission revolves around delivering top-tier financial services accessible to all.
With a solid customer base exceeding 1.5 million worldwide and assets under management totalling over $8.4 Billion, Wealthsimple unquestionably solidifies its position as the preeminent Robo-advisor in Canada.
In a notable stride, Wealthsimple introduced Wealthsimple Trade in March 2019. It instantly resonated with countless investors owing to its game-changing commission-free approach to buying and selling individual stocks and ETFs. This platform represents one facet of Wealthsimple’s offerings, guaranteeing commission-free trading for stocks and ETFs.
Notably, no fees are associated with these transactions, a refreshing contrast to the usual landscape where many online brokerages in Canada impose commissions that can reach up to $9.95 for stock trading.
Distinctively, Wealthsimple Trade stands apart from its Canadian online brokerage counterparts by abolishing the concept of a minimum balance requirement. This means that you can dive into trading with as little as $100, thereby removing a significant barrier that often restricts entry into the investing world.
How Does Wealthsimple Trade Work?
Wealthsimple Trade seamlessly integrates into the realm of online investing platforms, providing a user-friendly space for buying and selling stocks. The key distinction is its convenience – all your stock transactions occur online.
This digital convenience offers a refreshing departure from the traditional brick-and-mortar banking experience, introducing unparalleled ease and accessibility to your trading endeavours. However, what truly distinguishes Wealthsimple Trade is its unique trading platform.
Wealthsimple Trade’s trading operations are optimized exclusively for smartphone use, setting it apart from other online brokerages that accommodate desktop and mobile access. Despite this exclusivity, the platform’s intuitive design ensures that trading via smartphone is an effortless and effective endeavour.
Key Features of Wealthsimple Trade
Wealthsimple Trade stands out in the market for a multitude of reasons. Let’s delve into the standout features that set it apart and make it a unique player in the world of online trading:
- Commission-Free Trading: One of the most striking aspects of Wealthsimple Trade is its commission-free trading model. This means you can trade various stocks and ETFs without being burdened by additional commission charges, providing a cost-effective and transparent trading experience.
- Zero Trading Fees: Unlike many other online brokerages, Wealthsimple Trade takes it further by eliminating trading fees. This ensures that your trading activities remain uninhibited, allowing you to maximise your investment potential without worrying about accumulating extra costs.
- $0 Account Minimum: Wealthsimple Trade is designed to be inclusive and accessible. It allows you to begin your trading journey with as little as $100 – a welcome departure from the conventional account minimums imposed by other platforms.
- Intuitive and User-Friendly: Whether you’re a trading novice or a seasoned investor, Wealthsimple Trade’s trading platform is designed to cater to all levels of expertise. Its intuitive interface ensures a seamless experience, making trading straightforward and hassle-free.
- Extensive Stock and ETF Options: Wealthsimple Trade opens the doors to a vast selection of Canadian and US stocks and ETFs. Even more enticing is that you can engage in these trades without commission fees, further enhancing your investment opportunities.
- Robust Protection: Your peace of mind matters. With Wealthsimple Trade, your deposits are safeguarded by the Canadian Investor Protection Fund (CIPF) up to $1,000,000. This added layer of protection ensures that your investments are secure.
- Efficient Search and Tracking Tool: Wealthsimple Trade offers a comprehensive stock search and tracking tool. This tool simplifies the process of identifying and monitoring stocks, empowering you to easily make informed investment decisions.
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)
- NASDAQ
- NEO
With Wealthsimple Trade, your investment scope extends beyond Canadian and US stocks alone. You also have the chance to engage with index funds and Exchange-Traded Funds (ETFs) across these exchanges. This means you can diversify your portfolio with many assets that align with your investment goals.
It’s important to note that while Wealthsimple Trade’s stock market selection doesn’t encompass international markets, you can still access index funds that track international stock performance on these exchanges. This enables you to gain exposure to global economic trends and broaden your investment horizons.
And that’s not all – Wealthsimple Trade extends its reach to cryptocurrency ETFs, allowing you to monitor and trade different crypto market performances. This inclusion caters to those interested in the burgeoning world of digital currencies.
Looking ahead, Wealthsimple Trade is committed to expansion, indicating that its selection of tradable assets is likely to grow over time. This commitment ensures that your trading opportunities will continue to evolve, offering you a dynamic and ever-expanding investment landscape.
Wealthsimple Trade Fees
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
- Withdrawals
- Electronic statements
- Account Maintenance
- Inactive accounts
However, Wealthsimple Trade has small fees for services such as foreign exchange (1.5%). Click here to see the complete list of Wealthsimple Trade Fees.
Is Wealthsimple Trade Safe?
Wealthsimple Trade boasts a commendable level of safety, as affirmed by my personal experience and the comprehensive insights shared in this Wealthsimple Trade review. The platform’s credibility is further solidified by its staggering customer base of over 1.5 million users worldwide.
A notable testament to Wealthsimple Trade’s security is its affiliation with the Canadian Investor Protection Fund (CIPF). Your deposits are insured up to an impressive sum of $1,000,000. This layer of protection demonstrates Wealthsimple Trade’s commitment to its users and ensures that your investments remain shielded from potential uncertainties.
Moreover, Wealthsimple Trade is an active Investment Industry Regulatory Organization of Canada (IIROC) member. The regulatory oversight provided by IIROC bolsters the platform’s credibility and ensures that its operations adhere to strict industry standards.
In the digital age, security extends beyond financial matters to encompass safeguarding personal information. Wealthsimple Trade takes this responsibility seriously, employing advanced data encryption mechanisms that protect your sensitive data.
The platform implements two-factor authentication (2FA) measures to enhance the security posture further. This additional layer of verification ensures that only authorized individuals can access your account, providing an added shield against unauthorized access.
Is Wealthsimple Trade Good For You?
To put it simply, Wealthsimple Trade proves most beneficial for investors seeking a low-cost index ETF portfolio. It’s perfect for beginners and casual investors searching for a seamless zero-commission trading platform.
This inclusive approach makes Wealthsimple Trade accessible to many individuals, from those taking their first steps into the investment world to those looking for a hassle-free trading experience.
However, it’s essential to recognize that while Wealthsimple Trade is designed to accommodate a diverse audience, it might not align with the needs of every investor. For instance, intermediate and seasoned investors who require in-depth investment analytics and real-time quotes might find Wealthsimple Trade lacking in these advanced features.
Additionally, Wealthsimple Trade has limitations in terms of trading options. Specifically, it facilitates trading in stocks, ETFs, and cryptocurrency. If your investment strategy involves mutual funds, bonds, options, IPOs, OTC assets, GICs, and the like, Wealthsimple Trade may not be the ideal choice.
How to Open a Wealthsimple Trade Account
You have two options for opening a Wealthsimple Trade account. You can open an account through the web or your mobile app.
First Option: Web
- 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
Second Option: Mobile App
- Download the Wealthsimple Trade app (on iOS or Android devices).
- Provide your personal and bank details.
- Fund your account and wait 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 immediately. You can 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, transferring the money into your Wealthsimple Trade account may take up to three days.
Wealthsimple Trade currently has no automation feature 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 you don’t have to wait up to three days for the money to be transferred into your Trade account.
Wealthsimple Trade vs Questrade
Features | Wealthsimple Trade | 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 |
Account Minimum | No | $1,000 |
A well-known name in the Canadian investment landscape, Questrade has been an active player in DIY investing since its establishment in 1999. Renowned for its low fees, diverse range of accounts, and an array of feature perks, Questrade has become a compelling alternative to Wealthsimple Trade for many Canadian investors.
If you search for a trading platform offering a broad spectrum of account types, Questrade emerges as the ideal contender. With its comprehensive range of account options, including RRSPs, TFSAs, and more, Questrade provides versatility to accommodate various investment strategies.
On the other hand, if your primary concern revolves around trading fees and account minimums, Wealthsimple Trade steps into the spotlight as an excellent choice. The platform’s commitment to commission-free trading and user-friendly interface caters to those prioritising simplicity and a streamlined trading experience.
The beauty of the situation is that you can’t go wrong with either Questrade or Wealthsimple Trade, especially once you’ve identified your specific priorities. Both platforms offer valuable features and benefits; aligning them with your investment goals is just a matter of aligning them.
To gain a comprehensive understanding of their portfolios, I invite you to read our detailed review of Questrade, and my detailed comparison of Questrade vs Wealthsimple Trade, ensuring you make a well-informed choice that harmonises with your investment aspirations.
Final Thoughts on Wealthsimple Trade Review
Navigating the world of investments has never been as accessible and empowering thanks to Wealthsimple Trade. As we conclude this comprehensive Wealthsimple Trade review, it’s clear that this commission-free trading platform is a beacon of modern investing for Canadians.
With its user-friendly interface, diverse investment options, and commitment to providing a hassle-free experience, Wealthsimple Trade has become a go-to choice for novice and seasoned investors.
Whether you’re intrigued by the idea of trading stocks, ETFs, or even cryptocurrency without fees, or if you value the simplicity of opening various account types devoid of charges, Wealthsimple Trade has something exceptional to offer.
Ready to start your investment journey with Wealthsimple Trade? Sign up and experience the future of investing today.
FAQs on Wealthsimple Trade Review
Does Wealthsimple Trade Charge Any Fees?
Wealthsimple Trade has no commission, inactivity, withdrawal, or maintenance fees. However, it charges currency conversion fees and other service fees.
Does Wealthsimple Trade Have Any Hidden Fees?
Wealthsimple Trade has no hidden fees. Wealthsimple Trade charges no commission, withdrawal, maintenance, or inactivity fees. Besides its currency conversion fee (1.5%) and other service fees, 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, depositing the money you transfer into your Wealthsimple Trade takes up to three days. However, with the latest premium account update of Wealthsimple Trade, you can deposit up to $1,000 to your account and start trading immediately.
Is Wealthsimple Trade Legit?
Yes. Wealthsimple Trade is legit. This is because it 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?
You can transfer from your other Wealthsimple account to your Wealthsimple Trade with automation. However, the transfer must be in cash.
When I started trading stock earlier this year, It was with the wealthsimple trading platform. I only realized most of the benefits the platform possess after I had tried other ones.