Most of the investors at brokerages usually get dinged with trading fees whenever they purchase and sell ETFs, stocks, or any other financial instrument. The fees can be quite high getting to $9.99 for every trade. This is known to put off many self-directed investors.
Wealthsimple Trade is considered to be one of the best DIY platforms for investors in Canada since it completely solves high fee problems which put off many traders as it allows clients to trade exchange-traded funds and stocks for free.
It means one can purchase as little as one share of the stock or a single unit of the ETF using a small cash amount they have in their portfolio.
In this review, we will be looking at how Wealthsimple Trade is making self-directed investing easier.
What is Wealthsimple Trade?
Wealthsimple is considered to be among the best Robo advisors in Canada. It manages more than $5 billion in assets across the world. The platform was first launched in March 2019 and had the aim of introducing zero-commission stock trading in Canada. It is still the first and only zero-commission stock trading platform in Canada.
Wealthsimple Trade clients can purchase and sell ETFs and stock on major exchanges in Canada and the US for free. At first, it used to offer only the non-registered (Taxable) accounts but has progressed to providing TFSA and RRSP accounts as well.
Wealthsimple Trade Fees
Currently, there are no trading fees on Wealthsimple Trade. Opening and closing of accounts, purchasing and selling stocks or ETFs, receiving electronic statements, or withdrawal of funds will cost you $0. You will not incur any fees even when your account is inactive!
- Commission Free Trading: Wealthsimple Trade is the first and only commission-free ETF and stock trading platform. You can purchase and sell thousands of ETFs and stocks on major US and Canadian exchanges.
- Diverse Accounts to match your financial goals: Wealthsimple Trade supports TFSA, RRSP, and non-registered accounts with the promise of more types of accounts soon.
- Easy to Sign-up: All you have to do is download the Wealthsimple Trade app and click on the ‘Get started button.
- No Account Minimums: You can start trading with as little as $1.
- Mobile App: Trading using the Wealthsimple Trade app has never been easier. You will search and track your stocks easily and start trading with just a few taps on your mobile phone.
- Fees Transfer is covered: The online brokerage will always reimburse you any transfer fees larger than $5,000.
- Promo: You will be awarded a $50 cash bonus and $0 commission trades immediately you open a new Wealthsimple Trade account.
How Wealthsimple Trade Works
Wealthsimple Trade is meant for self-directed investors. Investors can purchase and sell ETFs and stocks from this platform. It is similar to what is being offered by the top discount brokerages in Canada. All you will be required to do is download the app onto your tablet or mobile phone.
After getting a stock you are interested in, you can always add it to your mobile phone app watchlist feature. When you are ready to purchase, the stock will be yours with just a few taps on your mobile phone. The process of selling stock is very straightforward.
Pros and Cons
- Mobile accessible: Very intuitive and easy to use trading platform on your tablet or phone
- Commission-free trading: There are no trading fees for purchasing or selling the ETFs and stocks
- One has the freedom of choosing from thousands of ETFs and stocks from exchanges in Canada and the US.
- CIPF-protected accounts for up to $1,000,000.
- State of the art security: The app will require a secret PIN and your date of birth will be fully encrypted.
- Perfect for investors interested in self-directed online investing as they do not have to worry about fees.
- Mobile- Only: You can only use the app on your tablet or mobile phone.
- Limited account offering: The Wealthsimple Trade clients are limited to opening RRSP and TFSA and non-registered accounts.
- Lack of resources/research for investors: It is a no-frills platform that lacks in-depth stock information features like automatic ETF or stock purchases and automatic deposits.
- Quotes of the stocks are never updated in real-time.
Wealthsimple Trade is a very simple, straightforward, and no-frills trading app that is very easy to use and offers no mission fees. However, there are no major drawbacks when using it provided you exercise the caution and due diligence you would with any stock trading platform.