What Is Wealthsimple? Complete Overview of the Canadian Investment Platform
Open a Wealthsimple account if you want a straightforward path to investing. The platform removes the typical complexity of stock trading and portfolio management, making it a strong choice for both new and experienced investors in Canada. You can start with any amount of money, and the intuitive design ensures your first trade is minutes away, not days.
Wealthsimple operates on a clear fee structure that rewards your account balance. Standard accounts pay a 0.5% management fee, but this drops to 0.4% once your assets exceed $100,000. For high-volume traders, Wealthsimple Trade offers commission-free buying and selling of Canadian and U.S. stocks, though currency exchange fees apply on the basic plan. The Premium plan ($10/month) provides real-time quotes and eliminates the 1.5% forex fee on U.S. trades.
Beyond self-directed trading, their managed portfolios automatically invest your funds based on your selected risk profile. These Socially Responsible Investing (SRI) and Halal portfolios align your financial goals with your personal values. The platform also supports a wide range of registered accounts, including TFSA, RRSP, and FHSA, allowing for effective tax planning and retirement savings directly within the app.
Your experience is supported by robust security measures, including CIPF protection on accounts up to $1 million and two-factor authentication. While phone support is reserved for higher-tier clients, their in-app chat and help centre provide prompt answers to most questions, ensuring you have the resources needed to manage your investments with confidence.
Wealthsimple Canada Investment Platform Overview Guide
Choose Wealthsimple for its straightforward approach to managing your money, combining low fees with an intuitive design that makes investing accessible.
You can open an account directly from your phone in about five minutes. The process involves verifying your identity and connecting your bank account to fund your new portfolio, which Wealthsimple then automates based on your selected risk tolerance.
The platform offers three core services: Managed Investing, Self-Directed Trading, and Crypto. Their Managed Investing service charges a 0.4% to 0.5% annual management fee on portfolios under $100,000, with no commission fees on trades. For hands-on investors, the Trade account provides commission-free buying and selling of stocks and ETFs.
Keep more of your returns thanks to features like automatic dividend reinvestment and tax-loss harvesting, which is included for all Managed Investing clients with balances over $100,000. For everyday spending, the Cash account offers a competitive interest rate with no monthly fees, and your deposits are protected by CDIC insurance up to $100,000.
Security is a priority; Wealthsimple uses bank-level encryption and is a member of the Canadian Investor Protection Fund (CIPF), safeguarding your investments up to $1 million. Their support team is available weekdays via chat, email, or phone to answer any questions.
Whether your goal is long-term growth in a Registered Retirement Savings Plan (RRSP) or saving for a first home in a Tax-Free Savings Account (TFSA), Wealthsimple provides the tools and account types to build your wealth efficiently.
How to Open and Fund Your Wealthsimple Account
Download the Wealthsimple app from the iOS App Store or Google Play Store, or visit their website directly to begin. The entire setup process is designed for your phone and takes about ten minutes.
Tap “Sign Up” and provide your email address, a secure password, and your Canadian phone number. You will immediately receive a verification code to confirm your identity.
Complete the profile questions, which include your full legal name, date of birth, and current address. This information must match your government-issued ID to prevent processing delays.
Answer a few questions about your employment status, investment objectives, and financial knowledge. Wealthsimple uses this to understand your investor profile and offer suitable product recommendations.
Verify your identity securely by taking a photo of your driver’s license or passport. The automated system typically approves documents in under two minutes, a requirement for all Canadian investment platforms.
Connect your bank account to fund your new portfolio. Wealthsimple uses secure, read-only connections through partners like Flinks or Plaid. You select your financial institution, log in with your online banking credentials, and choose the account you want to link.
Initiate your first transfer directly from the Wealthsimple app. You can move funds from your connected bank account or set up recurring deposits starting as low as $1. Electronic fund transfers (EFTs) are free and usually arrive within three business days.
For instant funding, use a wire transfer or a bill payment. Set up Wealthsimple as a payee with your bank using your unique Wealthsimple account number, found in the app’s funding section. Bill payments can take one to two business days to clear.
Choosing Between Wealthsimple Invest and Trade
Pick Wealthsimple Invest for automated, hands-off portfolio management. Choose Wealthsimple Trade for direct control over buying and selling individual stocks and ETFs.
Wealthsimple Invest: For Automated, Set-and-Forget Growth
Wealthsimple Invest builds and manages a diversified ETF portfolio for you. You complete a brief questionnaire to determine your risk tolerance, and their algorithm handles the rest, including automatic rebalancing. This option charges a management fee starting at 0.40% to 0.50% for accounts over $100,000. It’s the clear choice if your priority is a passive strategy without daily oversight.
The platform offers three portfolio styles: a classic balanced portfolio, Halal-focused investing, and Socially Responsible Investing (SRI) options. There are no fees to buy or sell the underlying ETFs within your managed account.
Wealthsimple Trade: For Self-Directed Investors
Wealthsimple Trade provides a commission-free platform to buy and sell stocks and ETFs yourself. You maintain full control over your investment decisions and portfolio composition. This option is best if you want to research specific companies or build a custom ETF collection.
A key advantage is $0 commissions on all trades, including US and Canadian securities. Be aware of the 1.5% currency conversion fee on US dollar transactions, which can impact returns. For active traders, Wealthsimple Trade offers premium tiers like Trade Plus for faster trade execution and advanced data.
Your decision hinges on involvement. Opt for Invest to automate your financial goals without effort. Select Trade to actively direct your strategy and enjoy commission-free trading.
FAQ:
What types of accounts can I open with Wealthsimple in Canada?
Wealthsimple provides a wide selection of account types to suit different financial goals. You can open registered accounts like a Tax-Free Savings Account (TFSA) for tax-free growth, a Registered Retirement Savings Plan (RRSP) for retirement, or a Registered Education Savings Plan (RESP) for a child’s education. They also offer non-registered, personal investment accounts. For those focused on retirement income, Wealthsimple offers a Registered Retirement Income Fund (RRIF). Additionally, they provide unique options like a Foreign Currency Account and a Crypto account, allowing for holding USD and cryptocurrencies directly.
How much does it cost to invest with Wealthsimple?
Wealthsimple’s pricing is structured around two main service tiers: Standard and Premium. The Standard tier offers $0 commission trading for Canadian stocks and ETFs, making it a very low-cost option. The Premium tier, which requires a minimum $100,000 in assets or a $10 monthly fee, adds features like instant deposits and advanced trading data. For managed investing, the management fee is 0.40% to 0.50% annually on your account balance. There are no fees for withdrawing your money or for account transfers.
Is my money safe with Wealthsimple?
Yes, client assets at Wealthsimple are protected. The company is a member of the Canadian Investor Protection Fund (CIPF), which protects eligible accounts up to $1 million. Furthermore, cash balances in your account are held at Canadian chartered banks and are eligible for Canada Deposit Insurance Corporation (CDIC) protection up to $100,000. It is critical to understand that CIPF protects against the insolvency of the investment dealer, not against market losses on your investments.
Can I buy US stocks on Wealthsimple?
You can purchase US-listed stocks on the Wealthsimple Trade platform. However, there is a key factor to consider regarding currency conversion. If you fund your account with Canadian dollars (CAD), Wealthsimple will automatically convert them to US dollars (USD) for the trade, and a 1.5% currency conversion fee applies both when buying and selling. To avoid this fee on each trade, you can use the Wealthsimple USD Account, which allows you to hold and trade with US dollars directly.
What’s the difference between Wealthsimple Invest and Wealthsimple Trade?
Wealthsimple Invest is a managed, robo-advisor service. You answer questions about your goals and risk tolerance, and Wealthsimple builds and manages a diversified ETF portfolio for you, automatically rebalancing it. It’s designed for passive, hands-off investors. Wealthsimple Trade is a self-directed trading app where you personally choose and execute trades for stocks and ETFs. It gives you full control but requires you to make your own investment decisions. One is for automated management, the other for self-directed trading.
What types of accounts can I open with Wealthsimple in Canada?
Wealthsimple provides a wide selection of account types to suit different financial objectives. The most common is the Personal non-registered account, which is a standard taxable investment account. For retirement savings, you can open a Registered Retirement Savings Plan (RRSP) or a Locked-In Retirement Account (LIRA). For education savings, the Registered Education Savings Plan (RESP) is available. Tax-free savings and growth can be achieved through a Tax-Free Savings Account (TFSA). They also offer a First Home Savings Account (FHSA), designed specifically to help Canadians save for their first home with tax advantages. For business owners and self-employed individuals, Wealthsimple supports Corporate Investment Accounts. This variety allows you to build a portfolio across multiple account types, optimizing for both growth and tax efficiency.