Wealthsimple Review: Pros, Cons, and How It Works

Performance: 8
Features: 9
Design: 10
Value: 9

Overall Score: 8.5

Starting from $0/month

Pros:
  • No account minimum
  • Great educational resources
  • Multiple mobile apps
  • Human advisors available

Cons:
  • High account management fees

Our Wealthsimple review will give you an introduction to the company and its services. It will also provide a closer look into the company’s investment plans and products. With no minimum investment required, you can start investing with Wealthsimple today.

What Is Wealthsimple?

Wealthsimple is an online hybrid investment management service that offers automated portfolio management and expert investing advice. The company was founded in 2014 by Michael Katchen and Andrew Wright and is based in Toronto. It offers algorithmic investment and a wide variety of savings programs for Canadian citizens.

Wealthsimple makes it possible for clients to deposit funds, as well as transfer retirement and taxable accounts. Everyone can get started easily, as there is no account minimum. Low-cost exchange-traded funds (ETFs) are used to populate generic portfolios that are later customized using the information you provide.

With Wealthsimple, you can invest, save, trade, and watch your net worth grow without much direct involvement. You can use it to buy shares or build a passive investing ETFs portfolio. The company is quite popular among millennials, as there’s no need to actively participate, with the process being largely automated.

Wealthsimple’s investment philosophy is based on the belief that everyone deserves access to smart, low-cost investing. The company’s mission is to democratize investing and make it accessible to everyone, regardless of wealth or experience.

Wealthsimple Fees

With Wealthsimple, there are no account-opening fees. However, the company will charge you an annual management fee based on the value of your portfolio. There are three account tiers:

  • The Basic tier is offered to clients who invest up to $100,000, with a 0.5% annual management fee.
  • The Black tier require more than $100,000 in your account. Black account holders pay a lower 0.4% annual fee. This plan also includes free financial planning consultations with a financial counsellor and several additional perks.
  • The Generation tier is available to those who reach the $500,000 threshold. Along with all the Black tier perks, your financial planning will be assisted by a team of dedicated professionals.

The Wealthsimple Trade app allows you to buy and sell ETFs and stocks without commission, and there are two plans: Basic and Plus. With Basic, you don’t need to deposit any money to start your portfolio, and you get access to most features. Meanwhile, the Plus plan allows more flexibility in managing your portfolio, but you’ll have to pay a $10 monthly fee.

Wealthsimple Security

At Wealthsimple, security is taken seriously, with multi-layer protection to keep your financial and personal information safe.

  • Encryption – A 256-bit SSL certificate is used to encrypt information that flows between the client’s browser and Wealthsimple’s web servers. The company also employs firewall technology.
  • Backups – Regularly updated backups ensure your information is safe.

Additionally, Wealthsimple adheres to the industry data protection standards, including mandatory two-step verification.

Anyone who wishes to join the world of Wealthsimple investing will also have their money safeguarded by the Canadian Investor Protection Fund (CIPF). With CIPF, investors are protected if their investment dealer is a CIPF member; if it goes insolvent, you might be eligible to get your money back to specified limits (up to $1 million per investment category).

Wealthsimple Customer Service

Customer support is available through email, live chat, and phone. The virtual assistant is available 24/7, and you can talk to a customer service representative from 8 a.m. to 8 p.m. (EST) on weekdays and from 9 a.m. to 6 p.m. (EST) on weekends. The company website also has an extensive FAQ section.

Wealthsimple Education

Wealthsimple offers a variety of educational resources on its website, including articles, videos, and infographics. There’s also the Wealthsimple magazine, which covers topics related to investing and personal finance. Educational content is available to both clients and non-clients.

Wealthsimple Investing Masterclass

You’ll have a chance to watch ten videos that will provide you with a basic understanding of investing and saving. Some of them compare similar aspects of various accounts that future clients might confuse, and offer an insight into the most important definitions that one needs to know if they want to trade and invest.

Personal Finance 101

This resource serves as a comprehensive knowledge base on matters related to saving, taxes, investing, cryptocurrencies, and other subjects.

Wealthsimple Mobile App

There are Wealthsimple apps available for both iOS and Android devices. The apps are well-designed and easy to use. They provide all the features and functionality of the website, including the ability to set up automatic deposits, monitor your portfolio, and track your goals. The apps also include a tax-loss harvesting feature.

There are four Wealthsimple apps for both Android and iOS:  Wealthsimple Tax, Wealthsimple Cash, Wealthsimple Invest, and Wealthsimple.

Wealthsimple Ease of Use

The Wealthsimple website is clean, modern, and easy to navigate, and the Wealthsimple robo-advisor is easy to use, too. Setting the asset allocation is one of the best examples of this. After completing a questionnaire, you’ll be assigned a risk tolerance and eight to 10 ETFs. Additionally, you can schedule automatic deposits from your bank account.

Wealthsimple Products and Services

After you finish filling out the questionnaire with your personal information, you’ll provide answers about your financial goals, past investments, your level of investment knowledge, risk tolerance, and time horizons. This is necessary for generating an ETF portfolio.

You can invest in stocks, ETFs, real estate, bonds, cryptocurrencies, and cash equivalents. Wealthsimple in Canada offers five different portfolios: Conservative, Balanced, Growth, Balanced SRI, or Halal. Standard portfolios contain eight to 10 ETFs, socially responsible use six, and Halal has 50 stocks.

You can choose from a wide range of accounts such as corporate accounts, retirement savings plans, locked-in retirement accounts, tax-free savings accounts, registered education savings plan, registered retirement income funds, joint accounts, and taxable accounts

Wealthsimple offers five financial products. These are Wealthsimple Trade, Wealthsimple Invest, Wealthsimple Cash, Wealthsimple Tax, and Wealthsimple Crypto.

  • Wealthsimple Invest is the company’s flagship financial product. It creates cost-efficient portfolios, combining bonds and equities to suit the client’s needs. It also includes expert advice. After you fill out the questionnaire and get a portfolio, it will focus on the broader market, and there will be no need to pick stocks manually.
    Fees:
      • 0.5% fee for up to $100,000 accounts
      • 0.4% fee for accounts above $100,000
  • Wealthsimple Trade: With this product, you’ll be able to buy and sell stocks with no additional fees. This is the only commission-free trading platform in Canada. No matter which one you decide on, you’ll be protected by the CIPF. However, if Wealthsimple’s terms don’t suit your needs, there are many great trading platforms in Canada that cater to different types of clients.
  • Wealthsimple Crypto: If you’re looking to buy and sell cryptocurrencies, you can do so with Canada’s first-ever regulated crypto platform and rest assured that your funds are safe.
  • Wealthsimple Tax will help you sort out your taxes easily with its pay-what-you-want tax software, which is useful to those who want to learn how to do taxes.
  • Wealthsimple Cash is used for sending and receiving money from your associates. It’s fast, simple, and can be used any time of the day via the mobile app.

Your portfolio and Wealthsimple savings account are managed through diversification across different classes of assets, alongside passive investing, and dividend reinvestment. All this is done based on your feedback.

Conclusion

Wealthsimple is an online investment manager. The company offers a wide range of investment products and services, and has a team of experienced financial advisors to help you make the most of your money. You can consult with them about specifics, such as what stocks would be the best to purchase or how to invest. What’s more, if you’re lucky, this advisor could share tips on improving your credit score.

Overall, Wealthsimple is a great option for anyone looking for a convenient way to invest. However, it is important to remember that all investments come with risk, so be sure to speak with your financial advisor before making any final decisions. If you decide that you want to invest and trade with this platform, make sure to keep your Wealthsimple login details safe, so only you can enjoy its perks.

FAQ

How does Wealthsimple make money?

Wealthsimple profits from currency exchange fees after the clients have deposited funds for trading. Moreover, Wealthsimple makes money from payment processing fees when clients use the Wealthsimple Cash card, as well as from the fees of their robo-managed ETFs. Finally, premium accounts have their own flat fees, so that’s another source of income for Wealthsimple.

Is Wealthsimple good for beginners?

Almost every Wealthsimple review will tell you that this platform is good for beginners. However, it is also suitable for experienced investors. Both groups will have a chance to find features that will help them enjoy commission-free trading. For those who don’t wish to trade manually, a risk-free survey is available, so they can create an automated portfolio with Wealthsimple Invest.

Is it safe to link a bank account to Wealthsimple?

It’s completely safe. Wealthsimple doesn’t store login credentials from your bank account. Additionally, encryption is enabled for securing the data, and your funds are CIPF-protected.

wealthsimple review

Overall Score: 8.5

Starting from $0/month

Milica Milenkovic
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