WHAT IS WEALTHSIMPLE TRADE?
Using the Wealthsimple Trade online brokerage platform, you may create and maintain your own investment portfolio. It is a component of Wealthsimple, a business that manages $8.4 billion in assets for 1.5 million customers. Wealthsimple Trade debuted in 2019 while Wealthsimple has been around since 2014.
Wealthsimple Trade is a 100% active investment platform, in contrast to Wealthsimple Invest and similar robo-advisors. With Wealthsimple Trade, investors do their own research, selection, purchase, and sale of stocks and ETFs. If you conduct thorough investigation, the returns could be greater, but the hazards would also be far higher.
See out our Wealthsimple vs. Questrade 2023 comparison for a thorough explanation of the differences between robo-advisors and online brokers.
We give you the whole scoop on all the specifics of this online broker in this Wealthsimple Trading review. We analyze the platform’s advantages and disadvantages and compare it to Qtrade, our top pick among the Best Online Brokers in Canada. We’ll conclude by letting you know whether we think this platform is worthwhile for your time (and money, if you’re trading in cryptocurrencies and US assets).
Is Wealthsimple Trade Safe?
Wealthsimple is a legitimate company. Investment Industry Regulatory Organization of Canada (IIROC) regulates Wealthsimple Trade, and some of the biggest banks in the world have invested $380 million in the company. Power Company of Canada, which has existed for more than a century, is their principal shareholder.
Wealthsimple is not only authentic, but also secure. Your money is held by their custodial broker, Canadian ShareOwner, which is insured up to $1 million per account by the Canadian Investment Protection Fund (CIPF). With their apps and web interface, they employ two-factor authentication, and they offer bank-level security measures like a 128-bit SSL certificate, backup software, and firewalls, all of which are commonplace in the banking sector.
WEALTHSIMPLE TRADE REVIEW: TRADING FEES & COMMISSIONS
The first Canadian internet brokerage, Wealthsimple Trade, has zero commission fees. National Bank Discount Brokerage afterwards joined it. Most other online brokerages charge a per-trade fee of $4.95 to $9.95.
You may access hundreds of stocks and ETFs on the major stock exchanges in North America for free with Wealthsimple Trade. If you also purchase Wealthsimple Crypto, you can also access more than 20 different cryptocurrencies.
Any unbiased Wealthsimple Trade review must state up front that, despite the fact that you do not pay upfront for your transaction, you do pay by selling the information about your market deal to meta-buyers.
Some customers pay Wealthsimple for your trading information so they may use algorithms to front-run deals.
In essence, it has never been more accurate to say: “If you aren’t paying for the product, you ARE the product.”
Also, Wealthsimple earns a sizable profit on the exchange rates you pay for US equities, as well as from the cash balances in your account.
There is no minimum balance requirement to start investing, and fractional shares can be bought for as little as $1. If you’re just starting out and don’t have much money to invest, this is useful.
Not all shares can be purchased in fractional share increments.
Account And Transaction Fees
When Wealthsimple Trade claims there are no trading costs, they truly mean it.
Keep in mind that they do charge a 1.5% base conversion fee when making US trades if you’re thinking about investing internationally. This is not the platform for you if you intend to try tactics like Norbert’s Gambit.
Additionally, they tack on a significant 1.5–2% fee for cryptocurrency transactions.
The cost of paper statements is $20. (save a tree, everyone). There is also a premium service that is optional; we’ll discuss that later.
Wealthsimple has received criticism in the past for diverting users from their former laser focus on low-fee investing to their trading platform and considerably more lucrative bitcoin trading arm.
AVAILABLE INVESTMENTS WITH WEALTHSIMPLE TRADE
You can access thousands of US and Canadian stocks and ETFs listed on the following exchanges through Wealthsimple Trade:
- Toronto Stock Exchange (TSX)
- TSX Venture Exchange (TSXV)
- New York Stock Exchange (NYSE)
- Canadian Securities Exchange (CSE)
- BATS Exchange
Apart than stocks and ETFs, Wealthsimple Trade does not support other types of investments. As a result, the following assets cannot be traded on this platform:
- Mutual Funds
- Preferred Shares
- Securities that trade over the counter (OTC)
- Forwards & Futures
- Rights and Warrants
- Investment Savings Accounts & Money Markets
- Non-North American ETFs and stocks
WEALTHSIMPLE TRADE REVIEW: ACCOUNT OPTIONS
The limited number of account options at Wealthsimple Trade is one area where they really fall short. Wealthsimple Trade only provides: Unlike other top Canadian online brokers, who also offer a wide range of account options such RESPs, LIRAs, RIFs, and corporate accounts.
- Personal accounts (non-registered)
This is sufficient to get started with, particularly if you’re a novice or casual investor, but it has a significant drawback if you’re seeking for anything other than the very minimum.
WEALTHSIMPLE TRADE PREMIUM PROGRAM: REAL-TIME STOCK PRICES
The 3–4 day hold on deposits over $1500 and the platform’s 15 minute-old stock prices and market data are two further drawbacks of Wealthsimple Trading. Consider signing up for Wealthsimple Trade Premium if any (or both!) of those items annoy you.
Access to Snap Quotes is offered for $3 per month (plus VAT) (real time stock prices and up to the minute market data available between 9:30 am and 4:00 pm Eastern time). Moreover, you treble the amount you can add instantaneously, up to $5000 every three to four working days.
On the one hand, we appreciate that they provide these possibilities at a fair price. On the other hand, there are other platforms that give you additional data and analytics, along with more asset and account possibilities, as part of their basic package, if you’re serious enough about trading that you require up-to-the-minute stock prices.
With our list of The Best Stock Trading Apps in Canada, you can find out more about what other trading applications have to offer.
HOW TO SIGN UP FOR WEALTHSIMPLE TRADE
You must be a Canadian citizen who has reached your province’s legal age of majority in order to open a Wealthsimple account (18 or 19, depending on where you live).
Enrolling is simple. Download the app first. Next, provide your financial and personal details. Your: Wealthsimple will need your:
- Full Name
- Social Insurance Number (SIN)
- Date of Birth
- Phone Number
- Employment information
Once your bank account has been linked, you can transfer funds into your account (up to $1500 should be possible instantaneously, but bigger transfers may take up to 3 days) and start investing.
Your accounts will be separate if you already have a Wealthsimple Invest account, but you can open an account using your current login information. Both Wealthsimple Trade and Wealthsimple Invest allow you to have separate TFSAs, RRSPs, and personal accounts.
Wealthsimple Trade Welcome Bonus And More
When you open a Wealthsimple Trade or Crypto account and deposit at least $150, you’ll receive a $50 cash bonus and commission-free transactions.
In addition, Wealthsimple will pay the $150 transfer charge if you transfer your account from another brokerage to them.
Also, there are more ways to obtain bonuses. By opening a non-registered personal Wealthsimple Trading account, you can receive a whooping $3,000 in free trades.
It’s vital to remember that you cannot apply for both the $3,000 bonus and the $50 account opening bonus. There can be just one option.
Lastly, you can get paid for referring friends. You and your friend will each get a randomly chosen monetary incentive for successfully referring a friend.
The trading platform at Wealthsimple is not our favorite (to say the least).
It has been oversimplified by being overly streamlined. Also, the browser version is still rather young and prone to errors.
An investing master class that “will convert you into a financial genius in less than 45 minutes” is one of the video materials available on the Wealthsimple website. Warning: There is a spoiler ahead.
Wealthsimple Trade Mobile App
The first free trading app in Canada was called Wealthsimple Trade.
With over 100K ratings and a 4.7 star rating, it is presently ranked #2 on the Apple store. They take great satisfaction in having a simple layout and user-friendly interface, so we were shocked when we tested it and discovered it to be cumbersome and difficult to understand.
The Wealthsimple interface does offer some basic asset performance data, but it does not offer the analysis tools or in-depth information that many investors seek. Moreover, there is no automated system for buying or selling investments. Your stock quotes are also always 15 minutes out of date unless you pay Wealthsimple $3 per month for the premium service. It is undoubtedly designed for novice or occasional investors.
Your Wealthsimple Invest and Wealthsimple Trade accounts are not linked, which is another drawback for Wealthsimple Invest customers who want to try their hand at active investing. Money can be moved between them, but only in the form of cash.
Wealthsimple Trade Review: Customer Service
Wealthsimple Trade’s customer service is tailored for investors who prefer to handle everything themselves.
In case you can’t discover the answer to a query yourself, they have an email address and a Trade Help Centre, which is essentially a FAQ. A virtual assistant service and priority customer service support have just been implemented for Premium and Generation customers. It is still very constrained in contrast to the top online brokerages.
The MDJ editorial team agreed that the Wealthsimple Trade platform had drawn more complaints in 2021 than any other broker-related concern from any of the platform options. It now has a 2.1 star TrustPilot customer service rating.
WEALTHSIMPLE TRADE OR WEALTHSIMPLE INVEST?
There are two ways to invest with Wealthsimple. We’ll examine each in this part of our Wealthsimple Trade Evaluation and discuss its advantages and disadvantages.
By using Wealthsimple Trade, investors will adopt a more active style. They must remember to frequently rebalance it as they will trade their own equities and ETFs.
You will get access to these things when you utilize Wealthsimple Trade:
- Zero-commission trading
- North American Stock Exchanges (however trading US stocks will incur a 1.5% currency conversion fee)
- Canadian savings accounts for cryptocurrencies, such as TFSAs and RRSPs
With a Wealthsimple Trade account, you won’t be able to buy mutual funds or participate in an IPO.
Wealthsimple Trade was first only available as an app, but it is now available on your PC, Mac, or laptop as well. With regard to simplicity and use, the interface is comparable to the app.
When it comes to the app, it has been reported that there are delays in accessing your cash when you wish to withdraw them as well as in receiving the most recent quotes.
Wealthsimple, also known as Wealthsimple Invest, is a robo adviser service that enables clients to choose from a variety of portfolio options, making it simple to begin investing.
You will have access to the following when using Wealthsimple:
- You will be able to choose from a range of 6 ETFs in addition to more conventional ETFs, each of which offers a screened group of businesses that match the values of the clientele. It provides a portfolio for halal investing and one for socially conscious investing, for instance.
- Automatic rebalancing will be carried out automatically, so you won’t have to worry about making the necessary stock and bond acquisitions to maintain a well-balanced portfolio as needed.
- There are three levels of accounts with different services and costs: Generation, Black, and Basic
Wealthsimple does provide a variety of special services, but at a price: a 0.4-0.5% management fee, depending on account amount. In comparison to most other robo adviser services, this is higher. The platform also lacks some of the tools and resources that many other platforms offer.
WEALTHSIMPLE TRADE VS QTRADE
Without comparing Wealthsimple Trade to QTrade, our top-rated bargain broker, our evaluation would not be complete. You may find the essential information and some general remarks here, but don’t forget to read our post comparing Qtrade with Wealthsimple as well.
You can look farther if you want all the information because we also have a comprehensive Qtrade review. but this is the main idea: Qtrade is the obvious choice if you want to dive deeper into DIY investing. Wealthsimple Trade has no other benefits that we can observe, and that is simply insufficient.
WEALTHSIMPLE TRADE REVIEW FAQ
Wealthsimple Trade: Is it secure?
Yes. Wealthsimple is licensed by IIROC. The institution that holds your accounts, the custodial organization, is CIPF-certified and has $1 million in insurance coverage. Two-factor authentication and bank-level data protection are used by Wealthsimple Trading.
Do Wealthsimple Trading Need a Minimum Account Balance?
No, Wealthsimple Trade does not have a minimum account balance requirement. In fact, you may start investing with just $1 owing to fractional shares.
How long does it take to create an account with Wealthsimple Trade?
It is quick and straightforward to open a Wealthsimple Trade account. The processing of your deposit into your account could take up to 3 days, depending on the amount.
If I don’t reside in Canada, am I still able to open a Wealthsimple Trade account?
No, Wealthsimple Trade can only be used by Canadian residents.
Establish Business Accounts on Wealthsimple Trade?
No, Wealthsimple Trade only provides TFSA, RRSP, and personal non-registered accounts.
Can I get a free trial of Wealthsimple Trade?
You can use Wealthsimple Trade without paying any fees or commissions, so you can do more than just give it a try for free.
With a Wealthsimple Trading Account, what Investments Are I Able To Trade?
Only shares and ETFs trading on significant North American exchanges are available for purchase and sale by investors through Wealthsimple Trade.
Offers DRIPs (Dividend Reinvestment Plans) through Wealthsimple Trade?
No, but they make manual reinvesting in them simple. You can reinvest dividends when they are added to your accessible cash funds.
How Effective Is Wealthsimple Trading For Investor Education?
No, Wealthsimple Trade has virtually little customer assistance and very few tools to aid in the asset selection process.
Is Day Trading With Wealthsimple Trade Possible?
Using Wealthsimple Trade, day trading is feasible, but it is not recommended. All quotes you see are 15 minutes old unless you subscribe to the premium service. Additionally, Wealthsimple levies a 1.5% currency conversion fee on any transactions made in US dollars.
SHOULD YOU USE WEALTHSIMPLE TRADE?
Cost is frequently one of the primary considerations when selecting the best brokerage. Clearly, there are benefits to spending virtually little on all of your trading needs, but always consider the hidden expenses.
Wealthsimple Trade may not have a monetary cost, but you are still paying for it with your personal data. Some people might find this offensive. Also, you might not be able to get support when you truly need it due to the basic app’s minimal functionality and severely limited customer care.
You will have to pay a little bit more for a better quality service, but for some people, the extra money will be well worth it. Check out our list of the Top Online Brokers in Canada if you want more from your brokerage than Wealthsimple Trade has to offer. You’ll see that Qtrade is at the top of the list. Go read our comprehensive Qtrade review to learn more about why.
We anticipate Wealthsimple to expand and get better in the near future given all the financial movements the business is now making. Because of this, we can suggest Wealthsimple Invest as the finest robo-advisor service in Canada, even though Wealthsimple Trade may not be the optimal platform for your DIY trading needs right now. We provide reasons in our