Pros, cons and who should create an account

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* Note: Betterment acquired the US portion of Wealthsimple’s business in 2021. The remainder operates as a Canadian entity.

Overall rating

Is Simple Wealth Right For You?

Wealthsimple is a Canadian investment platform that offers standalone trading, automated investing, spending benefits, tax return services, and more. Its investment selection currently includes stocks, ETFs and cryptocurrencies.

The platform previously offered its services to U.S. customers, but sold its U.S. division to robo-advisor Betterment in 2021. Wealthsimple is available on iOS and Android devices.

Simple wealth versus wealth

Wealthsimple and Wealthfront both offer automated investing, but Wealthsimple is the best choice for people who want to trade on their own. With Wealthsimple, you can practice DIY trading for stocks, ETFs and cryptocurrencies.

Like Wealthsimple, Wealthfront offers both ETFs and exposure to cryptocurrencies, through its two cryptographic trusts (Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). But you won’t be able to place your trades; the Wealthfront is strictly automated, however, it is the best option for investors who want lower fees.

Wealthsimple vs. Vanguard Personal Consulting Services

Wealthsimple and Vanguard both serve different types of investors. But when it comes to the automated account managed by a Vanguard consultant, Vanguard Personal Advisor Services, Wealthsimple offers lower subscription fees.

Both Vanguard Personal Advisor Services and its other automated investment account, Vanguard Digital Advisor, have higher minimum requirements, $ 50,000 and $ 3,000 respectively, than Wealthsimple’s basic managed portfolio (this option only requires a minimum of $ 1) .

Ways to invest with Wealthsimple

Stocks and ETFs

Wealthsimple is a great option for versatile investors as it offers both self-directed trading and automated investing. The hybrid platform currently offers investors the choice of two separate plans for trading stocks and ETFs: the Basic plan (which costs $ 0 per month) and the Plus plan ($ 10 per month). It is important to note the differences between the two:

  • Basic plan: This account gives you access to benefits such as fractional stock trading, instant deposits of $ 1,500, real-time pricing, unlimited price alerts, commission-free investments and no minimum account, tax-free savings accounts (TFSA), taxable accounts and Registered Retirement Savings Plans (RRSPs). (Note: TFSA and RRSP apply to Canadian residents only).
  • Slower: These users have access to all the features of the Basic plan. The only difference is that Plus subscribers don’t have to worry about exchange rates for US operations and can instantly deposit $ 5,000.

Unlike the Basic plan, the Plus plan allows you to hold USD in your accounts, so you can trade US stocks without incurring exchange rates. For the Basic plan, there is a 1.5% currency conversion fee when converting from CAD to USD (or vice versa).

As for its investments, Wealthsimple offers thousands of stocks and ETFs that investors can find on US and Canadian stock exchanges.

Cryptocurrencies

Wealthsimple Crypto has no minimum, nor does it charge any fees for making deposits or withdrawals. While it doesn’t offer as many crypto assets as popular exchanges like Coinbase and Kraken (both of which offer over 100 coins), it still has a large selection of cryptocurrencies to choose from. Its available coins include bitcoin, dogecoin, ethereum, ahd cardano.

It also allows users to take advantage of limit orders, which allow you to set the price at which you want to execute a sell or buy order. With platforms like Coinbase, you have to use its most advanced account, Coinbase Pro, to use limit orders. The fact that you can implement limit orders with Wealthsimple’s most basic crypto services could be tempting for cryptocurrency traders looking for order flexibility.

However, you will incur fees for crypto transactions. It has a spread fee that can vary up to 2%.

When it comes to custody, Wealthsimple keeps most of its users’ assets in offline storage. It uses multiple custodian partners for this, including Gemini Trust Company LLC, each offering over $ 200 million in insurance. It says it stores leftover assets in digital crypto wallets and uses Coincover to protect those coins as well.

Wealthsimple is limited, however, when it comes to transferring cryptocurrencies in and out of your account. If you wish to deposit coins stored via an external wallet, you can only do so for 23 coins. The limit on those 23 coins also applies to users who wish to transfer assets from their account.

Managed portfolios

Wealthsimple’s automated portfolios are ideal for investors who want to sit back and watch their investments grow without making daily trading decisions for the account. All you need to do is come prepared with an amount of money to invest, have a list of your short and / or long term goals, set an investment time horizon and risk tolerance, and Wealthsimple will take care of the rest.

Like many robo-advisors and automated accounts, its managed portfolios offer features such as dividend reinvestment, portfolio rebalancing and automatic deposits. Additionally, it offers two unique wallet options:

  • Socially responsible portfolios: These portfolios are ideal for investors looking to make a positive impact on the world on an environmental and social level. Regarding its asset allocation, it invests in ETFs of socially responsible companies in developed markets globally and socially responsible companies in North America. Wealthsimple claims to also use bonds and gold to hedge against the equity risk associated with the ETFs in your portfolio.
  • Halal Wallets: This option could be a great choice for those looking to invest in a way that honors Islamic law. Unlike socially responsible portfolios, its asset mix consists of Shariah compliant ETFs in developed markets globally, gold and non-interest bearing cash. It says it uses a third-party committee of Sharia scholars to scrutinize every investment.

Another strength of Wealthsimple’s socially responsible portfolios is that it removes 25% of the major carbon emitters in the sectors it selects for ETFs. In addition, it ensures that each company in its fund has at least three women on its board of directors.

As for the rates, it offers three separate rate plans: the Basic plan, the Black plan and the Generation plan. The basic plan, which includes the ability to ask portfolio managers questions, has a $ 1 minimum and a 0.5% annual fee. With the Black plan, you’ll have to incur a minimum of $ 100,000 and a 0.4% advisory fee, but you’ll have access to things like estate planning and health benefits.

Finally, the Generation plan has a minimum of $ 500,000 and a 0.40% commission, but you’ll get exposure to more experts who can tailor your portfolio to suit your needs. Its management fees are high compared to other automated platforms like Betterment, Wealthfront, and Fidelity Go.

Simple Wealth: Is It Reliable?

The Better Business Bureau assigns Wealthsimple Financial Inc. an F rating. Ratings typically range from A + to F and reflect the BBB’s view of how well a company interacts with its customers.

However, many other factors can also determine a company’s valuation. These include customer complaint history, type of business, time spent in business, government licensing and actions, and advertising issues. The office says its assessment for Wealthsimple stems from the fact that it received 17 complaints and did not respond to 12 of them.

His BBB profile shows that he closed 17 complaints in the past three years and six complaints in the past 12 months.

Simple Wealth: Frequently Asked Questions (FAQ)

Is Simple Wealth Okay for Beginners?

Wealthsimple is a competitive option for both beginners and experienced investors or traders looking for low fees, abundant investment options and a simple user interface. The platform also offers a library on everything related to personal finance and provides an income tax calculator to streamline the tax process.

Can I day trade on Wealthsimple?

Yes. Wealthsimple does not encourage this type of trading, but it does allow it.

Can i trust Wealthsimple Cash?

Yes. With the Wealthsimple Spending Account, you get coverage of up to $ 100,000 through the Canadian Deposit Insurance Corporation (CDIC) and can earn 1% rewards in cash, stocks or cryptocurrencies. You just need to make purchases using your Wealthsimple Visa card.

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