Comprehensive Wealth simple Trade review
Introducing Wealthsimple Trade, Canada’s newest brokerage, from the creators of Wealthsimple, a leading roboadvisor with over 175,000 clients and $5 billion in assets under management. What distinguishes Wealthsimple Trade is its commission-free model, offering significant savings on transactions and portfolio rebalancing. This makes it particularly appealing for investors, especially those interested in individual stock picks or starting with minimal capital.
However, Wealthsimple Trade does come with limitations, including issues with customer service, exclusive mobile accessibility, and delayed quotes. Despite these drawbacks, opening an account with Wealthsimple Trade is straightforward, requiring only an online bank account link and a quick process via the app.
Currently, Wealthsimple Trade offers cash accounts, RRSPs, and TFSAs, with plans to introduce RESPs soon. Funding your account is done solely through EFT, albeit with a three-day clearance period. While the lack of a minimum deposit requirement and no fees for closing accounts make it accessible, the platform does have restrictions on the types of securities traded and order types allowed.
Notably, Wealthsimple Trade imposes a 1.5% currency conversion fee for trades involving US stocks or ETFs, which may deter some investors. Additionally, price execution and order filling times have raised concerns among users, though the platform ensures security through encryption technology and CIPF insurance.
Despite its sleek design and ease of use, Wealthsimple Trade may not suit all investors. It’s best suited for those interested in trading individual stocks in Canadian dollars without margin trading, and who are comfortable with limited customer support and mobile-only access.
Ultimately, while Wealthsimple Trade offers an attractive fee structure, it may not be the optimal choice for everyone. For most investors, alternatives like Questrade or Interactive Brokers remain preferred options, depending on trading frequency, margin usage, and portfolio size.
