Wealthsimple Trade is an app that allows you to Trade Stocks and ETF’s with no trading commissions. The app is similar to the popular Robinhood trading app that is only available in the U.S.
Currently, this is the only commission-free brokerage in Canada, and it will soon become the leading trading platform for Millenials.
Sign up process
The sign-up process is fairly straightforward. After downloading the app, you’ll be prompted to log in or sign up. If you already have an account with Wealthsimple Invest, your information will be used for logging in. The whole process takes about 5 minutes. Use this link and receive 2 free stocks.
Features
- Wealthsimple trade charges no commissions. Big banks and other brokerages usually charge $4.95-$9.99 commission per trade. This is great news for anyone who is trying invest on a budget.
- The app has a clean user interface that caters to both experienced and novice investors.
- Thousands of stocks and ETF’s (Exchange-traded funds) from Toronto Stock Exchange (TSX), TSX Venture Exchange (TSXV), New York Stock Exchange (NYSE), NASDAQ, NEO, Canadian Securities Exchange (CSE) – limited securities available and BATS Exchange – limited securities.
- There is a feature section that showcases the most popular stocks categorized by industries. (Sections that can be seen include Restaurants, Mobile, Fashion and Jewelry, Oil and Gas, Consumer Products, and Newly Listed.)
- Accounts offered include TFSAs (Tax-free savings account), RRSPs, and non-registered accounts.
- The app also allows you to trade cryptocurrencies. Read more on that here.
- Get 2 free stocks to trade when you use this link.
The bad
- The only way to fund your account is through bank wire transfers that take a long time. It can be quite annoying having to wait for a deposit that can take 2-5 days. That is lost time that can negatively impact your trading decisions. This might be the platform’s Achilles heel. On the other hand, the app allows you to deposit an instant transfer of $250 without a hold. If you deposit more than $250 then you will have to wait 3 days to fund your account. If you sign up for a premium account, you can raise your instant deposit to $1000 for 3$ a month. (NOTE: If you deposit more than $50,000 your funds will be available within 5 business days) It would have been nice to have more funding options, however, money laundering might be the issue with that.
- Quotes are not real-time and they have a 15-minute delay. Wealtsimple provides a 5% collateral to protect you against last-minute price changes. Nevertheless, if you wish to access real-time quotes, you’ll have to subscribe to the premium account for 3$ a month.
- No auto deposits.
- No mutual funds or IPO’s.
- Wealthsimple charges a 1.5% exchange rate conversion fee when buying US stocks.
- Can’t automate dividend reinvestments. However, dividends are added back to your cash f
What's the catch?
How exactly does Wealthsimple trade make money? According to their website, a 1.5% currency exchange fee is charged when trading U.S.-listed securities.
Is it secure?
Weathsimple trade is very safe to use and I highly recommend it to anyone who is interested in investing. The platform is CIPF (Canadian Investor Protection Fund) protected and regulated by the IIROC (Investment Industry Regulatory Organization of Canada). Just make sure to do your research and risk assessment before picking stocks. Sign up with Wealthsimple Trade here!
