Wealthsimple Review 2024: Is it a good platform?

Wealthsimple started as a simple investing platform with a focus on cutting out high fees and account minimums associated with most other firms.

But the pressing question here is if Wealthsimple is as effective as it claims or if there is more to the features and services! We shall find that soon as I would now review this “Human” financial company across several metrics.

Pros and cons

Before I delve deeper into Wealthsimple, here are the pros and cons associated with this broker. Checking these out might give you a good headstart when it comes to taking a call about choosing it or some of the competitors like Acorns, Wealthfront, and more.

Pros

• User-friendly investing platform
• Support for several base currencies including USD, GBP, and more
• Account opening is fast and seamless
• Boasts robo-advisor functionality
• No deposit and withdrawal overheats
• Offers commission-free trading

Wealthsimple is one of the few legacy financial service providers to offer crypto-based services. You can use the platform to buy, sell, and even stake cryptocurrencies without worrying about regulations.

Cons

• Guided investing can be pricey
• Account types are limited
• Forex fees associated with conversions while trading stocks

Background

Wealthsimple, the company, started its operations in 2014 under the leadership of Michael Katchen. Canadian ShareOwner Investments eventually acquired this Canadian platform and in 2016, established a partnership with Mint — a budget-tracking application.

As of 2023, the credibility of Wealthsimple seems to have reached new heights, all thanks to the user base of 3+ million and an AUM of CA $25 billion.

Wealthsimple, over the years, has created an extensive suite of products. These include the Wealthsimple Invest, Trade, Crypto, Tax, and Wealthsimple Cash.

Regarding the regulatory framework, the Canadian regulations are handled by the IIROC and the CIPF, whereas the U.S. functionality is taken care of by the SEC. In the United Kingdom, Wealthsimple has an FCA regulating the same.

Platforms and interface:

In case you already want to try Wealthsimple, I urge you to wait before you get a clearer picture of the platforms to access. Wealthsimple comes with a dedicated iOS and an Android app, with each having a handful of unique traits. Let us take a closer look at each:

Wealthsimple iOS app

• Access to real-time notifications
• Compatibility with the entire Apple ecosystem, including iPads
• Quick access to account monitoring tools
• Instant access to educational content
• User-friendly interface

Wealthsimple Android app

• Access to real-time data
• Easy to use
• Compatibility with every other Android device
• Access to portfolio management services
• One-stop crypto staking functionality

Wealthsimple’s Android app has had over 1 million downloads followed by a standard rating of 4.4.

Getting started with Wealthsimple

To get started, you can quickly scan and install the Wealthsimple app. Or, if you do not want to go with the application, you can use the web interface. Once you sign up using your email ID, you get to choose the right product from the extensive selection.

Imagine me selecting the “Invest” product. Once there, you need to fill in the details, verify your identity using any legible national ID, utility bill, or bank statement, and get started.

You can select the trading option featuring stocks, crypto, and ETFs, fill in the personal details, and get started by depositing funds. And you must note that not every feature is available on the web interface while signing up.

Features and services

The majority of the Wealthsimple features are focused on its products. Let us now take a quick gander at each:

Wealthsimple Invest

You can consider this a robo-advisor service meant for individuals who want to use this trading platform for wealth creation. Leading the pack is the Managed Investing suite with options like the Classic Portfolio, Socially Responsible Portfolio, and more.

Wealthsimple allows you to invest in a Shariah-compliant Exchange Traded Fund, helping you build a Halal Portfolio vetted with a Fund Fatwa.

Another element of Wealthsimple Invest has to be the trading or self-investing element. This feature lets you invest in or trade stock and ETFs and even indulge in Options trading.

As for stocks, Wealthsimple lets you buy and sell shares listed on the Toronto Stock Exchange, NYSE, and even NASDAQ.

Some of the options include:

TSX shares

• Royal Bank of Canada (RY)
• Toronto-Dominion Bank (TD)
• Canadian National Railway (CNR)
• Enbridge Inc. (ENB)
• Shopify Inc. (SHOP)

NYSE shares

• Coca-Cola Company (KO)
• Johnson & Johnson (JNJ)
• Exxon Mobil Corporation (XOM)
• Pfizer Inc. (PFE)
• JPMorgan Chase & Co. (JPM)

NASDAQ shares

• Apple Inc. (AAPL)
• Amazon.com, Inc. (AMZN)
• Microsoft Corporation (MSFT)
• Tesla, Inc. (TSLA)
• Facebook, Inc. (FB)

As far the ETF exposure is concerned, Wealthsimple lists funds otherwise managed by the likes of Blackrock via iShares and even Vanguard. Some of the Wealthsimple listed ETF options are as follows:

• Vanguard S&P 500 ETF (VOO)
• iShares Core S&P 500 ETF (IVV)
• Vanguard Total Stock Market ETF (VTI)
• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares MSCI Emerging Markets ETF (EEM)
• Vanguard Total International Stock ETF (VXUS)
• SPDR Gold Shares (GLD)
• Vanguard Real Estate ETF (VNQ)
• Technology Select Sector SPDR Fund (XLK)

Wealthsimple crypto

You can trade cryptocurrencies on Wealthsimple. And that’s not it. The platform even lets you stake crypto for an APY of up to 12%. Plus, Wealthsimple makes it easy for you to securely store the crypto assets.

Wealthsimple cash

Another Wealthsimple product is the chequing account, which acts like a Savings account, allowing you to generate returns as high as 4.5%. Also, there are no charges associated with keeping the account active. And there are no foreign exchange fees associated with chequing account usage as a form of cross-border payment.

Diverse accounts

Another feather in Wealthsimple’s cap is the ability to create a diverse range of accounts. For instance, you can open a personal account with zero deposit and withdrawal limits, a tax-free savings account, Spousal RRSP, Locked-in retirement accounts, Education savings plans, corporate accounts, and more.

Here is a list to get you started in the right direction:

Tax-filing benefits

Besides the extensive trading and investing suite, Wealthsimple can also make it easier for individuals to stay up to speed with their tax obligations. Some of the built-in features include auto-return filling, a smart searching facility, crypto-based profit declaration, return optimization, and more.

And the tax-filing functionality is completely free. However, if you are happy with the services, you can tip any amount you deem fit post getting your returns.

Fee structure and overheads

Wealthsimple follows a tiered yet transparent pricing system that doesn’t require you to pay anything upfront but is based on your asset value. The basic plan, or rather the Core plan, allows you to get started with $1 in terms of assets. And even with the Core plan, you can trade stocks without having to pay any commission.

Also, if you opt for managed investing support, as per the Core plan, you need to pay a 0.5% fee. The crypto trading fee for the core plan is set at 2%. In case you have a minimum of $100,000 in assets, you get access to the Premium plan, and for $500,000, you get access to the Generation plan.

When it comes to the deposit and withdrawal fee, Wealthsimple doesn’t levy any charges. Plus, you can transfer up to $10,000 per week or start with as low as $1, depending on your preferences. However, this is a general ballpark, and the deposit and withdrawal limits depend on the type of asset you are working with.

All Wealthsimple limits explored

There are several elements to using Wealthsimple’s services. For instance, while trading stock and crypto, the daily transaction limit — deposit and withdrawal limit is set to $250,000 CAD. Similarly, for managed accounts, the daily transaction limit is $1.5 million CAD.

Also, the minimum trading limit, or rather the lot size, is set at $1. And if you are unsure about the payment methods while handling deposits and withdrawals, Wealthsimple supports Direct deposits, wire transfers, e-transfers, card transfers, and more.

Security standards and customer support

In case you are concerned about how Wealthsimple manages your funds and data, the following security implementations are worth considering:

1. Encryption standards
2. Two-factor authentication
3. Secure servers
4. Regular audits
5. Secure payment processing.

Regarding customer support features, Wealthsimple makes room for a data-rich help center, a dedicated “Learn” section for educating users, and a host of tools for every season.

Plus, there is a live chat interface, email support, phone support, and priority issue handling for the more premium clients. When it comes to financial tools, the platform features the TFSA, RRSP, Retirement, Fee, and Tax calculators.

Is Wealthsimple the right financial ecosystem for you?

If, as a person seeking wealth creation, you are confused about making the most of your funds, you should definitely give Wealthsimple a try. As a financial wealth management service provider, Wealthsimple lets you invest, trade, earn, stake, and even take care of the eventual tax obligations — all under one roof.

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