A Wealthsimple review for 2024

Wealthsimple is one of Canada’s first robo-advisors and a popular tool for individual investors. Its 3 million customers have invested more than $20 billion through its investment platform, over a million have filed their taxes using Wealthsimple Tax, and thousands are making use of its chequing account alternative, Wealthsimple Cash.

As Canadians get more and more options for online investing, Wealthsimple has worked hard to stay competitive. But is it still the best robo-advisor in Canada in 2024? This review takes a look at the ins and outs of Wealthsimple to help you decide whether it’s the right platform for you.

What is Wealthsimple?

Wealthsimple is Canada’s largest financial technology (“fintech”) company, founded on the principle of smart, simple investing that’s more affordable and easier to use than traditional investment managers.

Simply put, it is a digital wealth management platform that offers managed and self-directed investing, a free chequing-like cash account and free tax filing software. 

The institution operates in Toronto, Canada. Since 2014, Wealthsimple has established itself as one of Canada’s leading wealth management platforms.

Wealthsimple provides an opportunity for people of all financial backgrounds to increase their wealth and secure their financial futures. There is no requirement of extensive knowledge on how investing or the stock market works. That’s what makes the investing service so appealing to passive investors.

Today, Wealthsimple offers four main products that help Canadians manage their money:

• Wealthsimple Invest. This original robo-advisor service makes it easy to build and maintain a diversified investment portfolio. 
• Wealthsimple Trade. Wealthsimple’s self-directed online brokerage offers stock, ETF and options trading as well as cryptocurrency trading.
• Wealthsimple Cash. Combining the features of a savings account and chequing account in a single app with no monthly fees or transaction fees, Wealthsimple Cash is an ideal tool for everyday spending and saving.
• Wealthsimple Tax. This free tax preparation software makes it fast and easy to file your taxes, and is certified by the CRA.

Wealthsimple Invest Review

Wealtsimple’s primary robo-advisor product has been elegantly branded as “managed investing.” The platform makes it easy to build and maintain an investment portfolio to help meet your goals.

The managed investing service works by matching you with a pre-defined portfolio of exchange traded funds (ETFs) that align with your preferences and risk tolerance. You can choose from one of three themes (classic, socially responsible investing, and Halal) and set a risk level from 1 to 10. The platform will then recommend a portfolio of equity, fixed income and gold holdings to suit.

You can link your bank account(s) to transfer money to your Wealthsimple portfolio with the option to set up recurring deposits. As time goes on, Wealthsimple managed investing will automatically buy and sell shares to keep your portfolio balanced. It will also automatically invest your cash deposits, reinvest dividends and sell assets when you want to withdraw.

As a managed investing client, you always have access to Wealthsimple’s human advisors who can provide unbiased expert advice. Clients with over $100,000 invested get access to a dedicated advisor.

Registered accounts

Wealthsimple Invest offers several different account types to take advantage of tax-sheltered savings programs. You can use the platform to invest in:

• Registered Retirement Savings Plans (RRSPs), which allow you to defer income tax on the money you save for retirement. Wealthsimple also supports Spousal RRSPs and Locked-In Retirement Accounts (LIRAs) and Registered Retirement Income Funds (RRIFs).

• Tax-Free Savings Accounts (TFSAs), which eliminates income tax on a limited amount of investments.

• Registered Education Savings Plans (RESPs), which reward you with government grants for saving for a child’s education.

• First Home Savings Accounts (FHSAs), which allow you to save up to $40,000 tax-free to help with the cost of buying your first home.

You can also use an unregistered account, the gains on which are subject to income tax at your marginal rate.

Fees and Features

Wealthsimple charges fees based on three minimum deposit tiers: Core, Premium, and Generation. Each deposit level offers specific investing features and advantages. 

Core

• Deposit Requirement: $1 to $100,000
• MER: 0.5%

Investors with up to $100,000 invested receive basic features including automatic portfolio rebalancing, dividend reinvestment, and automatic deposits. This level offers customer support and educational content, but no on-demand access to a human advisor.

Premium

• Deposit Requirement: $100,000 to $500,000
• MER: 0.4%

Investors with assets between $100,000 and $500,000 receive preferential pricing including a reduced management expense ratio of 0.4%, priority support and goal setting advisor sessions.

Generation

• Deposit Requirement: $500,000 +
• MER: 0.2% - 0.4%

With $500,000 or more in investments, you get access to truly customized portfolios and Wealthsimple’s asset location service that optimizes your registered accounts for maximum tax savings. This tier also entitles you to a dedicated team of advisors and more comprehensive financial planning.

Wealthsimple Trade review

Wealthsimple Trade is a suite of user-friendly online tools that make it easy to buy and sell individual investments including stocks, ETFs, and cryptocurrency.

Stocks & ETFs

If you want more granular control over your portfolio, Wealthsimple provides low-fee DIY trading of stocks and ETFs with no commission fees.

The best feature of Wealthsimple stocks & ETFs is that there are no fees for buying or selling shares. Clients with less than $100,000 invested pay a 1.5% foreign exchange fee for USD trades, or can opt to open a USD account for $10 per month.

The platform provides access to stocks and ETFs listed on the TSX, NYSE, NASDAQ, NEO and CSE exchanges. The platform allows you to invest with as little as one dollar and purchase fractional shares of a limited number of stocks.

While the option to buy and sell individual stocks is nice to have, the platform is by no means perfect. Advanced users will find frustration with the lack of immediate data and occasionally inaccurate information. 

Options

In addition to stocks and ETFs you can use Wealthsimple to invest in options, a type of security that let you make money by speculating on the future value of a stock or ETF. 

If you’re not an advanced investor, the Wealthsimple app features a helpful walkthrough so you can wrap your brain around the concept.

If you are an advanced investor, Wealthsimple currently only offers options trading on stocks and ETFs on the NYSE and Nasdaq exchanges. Currently, the platform only supports long call and long put options and trades can only be made using the mobile app.

Options trading with Wealthsimple costs between 75¢ and $2 per contract, plus regulatory fees, which is not as competitive as one would expect given the platform’s relative lack of capabilities.

Crypto

If you want to invest in cryptocurrency, which I don’t personally recommend, Wealthsimple crypto is Canada’s first regulated cryptocurrency platform that lets you trade over 50 different coins including Bitcoin, Ethereum and Dogecoin. It also offers the ability to stake the Ethereum, Solana, Cardano and Polkadot currencies, earning up to 12% per year.

The platform is “built with regulatory guidance” as a “restricted dealer through the Canadian Securities Administrators' Regulatory Sandbox.” Its offline storage partners are insured for $75-million each and its online, or “hot,” storage is protected by CoinCover. However there is no CDIC or CIPF insurance on these investments.

There are no fees for depositing or withdrawing coins to another wallet. The platform charges a fee ranging from 0.5% to 2% per transaction when exchanging crypto for dollars, which it says covers the cost of safe storage, insurance, liquidity providers, and operational expenses.

Private credit

Investors with at least $100,000 in assets can invest in private loans offered by Wealthsimple to medium-sized companies. The private credit product is offered through a partnership with the credit management company, Sagard, and claims to target a 9% rate of return, net of fees.

Wealthsimple Cash review

Wealthsimple Cash is a spending and saving account that combines features of traditional savings and chequing accounts into a free alternative.

Chequing features

Similar to a chequing account, Wealthsimple Cash allows you to move money back and forth between your other accounts and have paycheques directly deposited into your account. It supports pre-authorized and one-time bill payments and Interac e-Transfers. 

Wealthsimple Cash also lets you make purchases in stores and online, and withdraw cash from ATMs everywhere Mastercard is accepted. Purchases are rewarded with 1% back in your choice of stock, cryptocurrency or cash. And there are no additional foreign exchange fees when you make purchases in US dollars.

There are some limitations to the chequing features that fall short of traditional no-fee chequing accounts. The service doesn’t support joint accounts, physical cheques, scheduling recurring payments or scheduling Interac e-Transfers. It also doesn’t have an overdraft feature, although it helpfully declines to charge an NSF fee if you should happen to run out of money.

Savings features

In addition to its useful features for everyday spending, Wealthsimple Cash competes with some of the best high-interest savings accounts in Canada.

Wealthsimple Cash pays 4% interest on all deposits with no minimum balance, increasing to 4.5% for clients with at least $100,000 invested and 5.0% for clients with at least $500,000. And because deposits are spread across up to three different financial institutions, your savings are CDIC insured for up to $300,000.

And of course, it’s easy to transfer money to and from your other Wealthsimple accounts with a few taps. Clicks are excluded as Wealthsimple Cash can only be accessed using the mobile app.

Wealthsimple Cash Fees

Wealthsimple Cash is completely free to use. There are no monthly fees, no transaction fees and no NSF fees.

Wealthsimple doesn’t charge a fee for ATM withdrawals, although you may have to pay a fee to the ATM provider for using an out-of-network card. It also doesn’t charge an additional foreign transaction fee on US dollar purchases, but you will be on the hook for the payment network’s fee, which is usually hidden in the conversion rate.

Wealthsimple Tax review

Wealthsimple acquired the free tax filing software SimpleTax in 2019 and rebranded it as Wealthsimple Tax. The software has been used by over 1-million Canadians to do their taxes.

Wealthsimple Tax features

Wealthsimple Tax makes it fast and easy to do your taxes. It’s authorized by the CRA and Revenu Quebec, and offers many of the features you would expect from a premium tax software solution. The platform walks you through a step-by-step guide to fill in your return, and then gives you complete freedom to make changes and adjustments as you see fit.

• Auto-fill. Wealthsimple Tax allows you to import your tax slips electronically from the CRA and Revenu Quebec to automatically fill in your return.
• Smart search. The platform offers full access to every form you need, and you can use its integrated search feature to find what you’re looking for quickly.
• Crypto wallet linking. If you invest in cryptocurrency, you can link wallets from multiple exchanges to automatically calculate and apply your capital gains or losses.
• Return optimization. Deductions that can be split with a spouse, like medical expenses and donations, are calculated automatically to maximize your tax savings. 
• Netfile. When you complete your return, you can submit it electronically to the CRA using Netfile.
• Audit support. If your return is re-assessed, you can use Wealthsimple’s audit support program for a $30 fee.

If you need help with your taxes, Wealthsimple Tax offers access to customer support representatives who can answer general questions and help you use the software. It doesn’t, however, offer any professional tax advice like you would get from a full-service tax firm.

Wealthsimple Tax Fees

Wealthsimple Tax is completely free for personal use. You can prepare and submit tax returns for your entire family at no cost.

If you feel so inclined, you may pay what you want when you file your return. Audit support can be purchased for $30, and is offered free to those who elect to pay $30 or more.

The Pros and Cons of Wealthsimple

Many benefits come with this wealth management platform, including top-notch user experience, no balance requirements, excellent customer services, ethical investing options, tiered rate options and perks, and mobile and desktop accessibility.

Pros

Wealthsimple offers several unique and celebrated features, most of which are listed below.

• No minimum investment requirement. There is no minimum deposit required to sign up and start using Wealthsimple. If you’re just getting started, you can start investing with as little as one dollar.
• Exceptional user-experience and interface and web interface and mobile app. Wealthsimple stays true to its name with a user interface that makes it easy to manage your investments on desktop and mobile. 
• The details are taken care of. With Wealthsimple Invest, the complex job of choosing investments is done by experts based on your preferences. Things like buying and selling shares, rebalancing your portfolio and reinvesting dividends are all handled automatically so you don’t have to worry about it – or pay someone a big fee to do it manually.
• Outstanding customer service. Wealthsimple’s customer service is noted to be among the best available from any financial institution in Canada. Reviews commonly agree that the wealth management service provides excellent telephone and prompt e-mail customer service.
• Access to experienced financial advisors. Wealthsimple offers financial advice from (human) finance experts that can answer all of your investing questions and provide insight into your future goals. They are also fiduciary, meaning they are required to provide the best, most honest financial advice to their clients.
• Socially responsible and Halal investing options. The Socially Responsible Investing (SRI) portfolio allows you to avoid investing in things that conflict with your values. Its SRI funds eliminate the top 25% of carbon-emitters in each industry and companies with fewer than three non-male directors. You can also choose a Halal option which is certified by Islamic scholars and prevents your investments from being used for alcohol, tobacco, pork and other haram activities.
• Low fees. Wealthsimple charges relatively low fees for its services, especially when compared with some alternatives like traditional investment advisors. Its managed investments have low expense ratios and invest in low-cost ETFs. You can buy and sell individual stocks and ETFs with no commission fees. You can eliminate fees on your daily banking. And you can file your taxes for free.
• CDIC and CIPF insurance. Deposits and investments using Wealthsimple are protected by insurance to keep your money safe no matter what.

Cons

Wealthsimple has excellent tools for novice investors, as well as people who want to save money and time when it comes to wealth management. As such, there are some trade-offs to be made that primarily come at the expense of more advanced investors who want the features that Wealthsimple has, well, simplified.

Some of the downsides of using Wealthsimple include:

• Limited managed investing options. While Wealthsimple’s managed investing platform is easy to use, it doesn’t allow you to make adjustments to its pre-set portfolios. Intermediate investors have to choose between sticking with what’s offered or going with a completely self-directed option unless they have over $500,000 to invest.
• Limited features for self-directed trading. Users report that Wealthsimple Trade lacks features when compared to other online trading platforms, and that transactions can be slow to complete. This is compounded by the limited number of stocks and ETFs available on the platform.
• The app can be buggy. Users on Android and iOS complain that the mobile app can be slow to load and isn’t always made better by updates.
• Lack of personal advice. Proper financial advice is restricted to Wealthsimple’s wealthiest clients who have $500,000 or more invested. While access to a financial advisor is available at lower levels, some people may find they can’t get the help they need.
• CIPF insurance limited to $1-million. It would be a nice problem to have, but if your investments exceed $1-million you may be taking on unnecessary risk.
• Promotes investing in cryptocurrency. Unlike money, materials and stock investments, cryptocurrencies have no underlying value which makes them a particularly risky investment. Novice investors who are attracted to Wealthsimple for its ease of use should be cautious to avoid this purely speculative asset.

Is Wealthsimple right for me?

Wealthsimple may be right for you if you want to invest your money for the long-term, save money on fees when compared with a human financial advisor, and have the details taken care of for you. These features make it especially attractive to novices, people with modest-to-moderate savings, and folks with specific financial goals like homeownership and retirement.

It may also be the right choice if you want to do a small amount of self-directed investing in stocks or ETFs, and want the ability to participate in options or buy cryptocurrency.

You may also choose Wealthsimple if you want to take advantage of free daily banking and higher than average interest rates on cash savings, or do your own taxes for free.

Wealthsimple may not be right for you if you’re a more advanced investor who wants granular control over your portfolio. You may also want to look for different options if you’re primarily interested in active trading, more advanced options trading, or have a high net worth.

You may want to use a traditional no-fee chequing account if you want a joint account or need to write cheques. A paid bank account may be best for you if you rely on teller assistance for daily banking.

And when it comes to your taxes, Wealthsimple might not be right for you if you need tax advice from a certified professional or you’re not comfortable with doing your own taxes with only limited support.

Also read

• The best online brokerages in Canada
• Online investing: robo-advisors vs. online brokerages