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Investment is often considered a reliable long-term ally that requires minimal effort but offers substantial benefits. However, the complex terminology surrounding investment, such as brokerage, screener, day-trading, and discount brokerage, can make it difficult to understand how the stock market operates. The stock market is a platform where companies seeking to borrow money and individuals looking to invest money come together through various securities, including equities, hedge funds, exchange-traded funds, penny stocks, commodities, futures, and mutual funds. This is where the question of Wealthsimple Vs Questrade comes into play for Canadian investors.
For most people, navigating the world of online investing can still be overwhelming, which is where financial services companies come in. Through their online portals, these companies simplify the investing process and assist users in building a solid investment portfolio. When selecting an online platform or broker, investors should consider the advantages and disadvantages of each, regardless of their experience level.
While many online investing portals are available, including Charles Schwab, Ameritrade, Vanguard, and Robinhood, Wealthsimple, and Questrade are the leading contenders in Canada’s financial services industry, specifically in the online investment sector. To decide on their selection as digital investors, let’s examine what these two portals offer.
Wealthsimple Vs Questrade Review
Wealthsimple Vs Questrade Review: Which Broker is Better In 2023
About Wealthsimple
Wealthsimple, launched in 2014, is an automated investment advisor designed for Canadian investors seeking a tailored investment experience based on their financial goals. The platform prioritizes providing low-cost, long-term passive investment solutions, promoting Do-It-Yourself (DIY) investing. In 2019, the company launched Wealthsimple Trade, Canada’s sole no-trading fee investment platform.
As investment trends have evolved, the company has adapted to the changing landscape by introducing new services, such as Wealthsimple Crypto and Wealthsimple Cash. Wealthsimple offers a range of straightforward investment options to simplify the investing experience for users. Additionally, the company guides investors who aim to make a positive societal impact by presenting them with investment opportunities in the social services sector.
About Questrade
Established in 1999, Questrade is an online brokerage platform that offers financial services and trading across various trading accounts. The company has established itself as one of the top brokers and online brokers in the financial services industry and has emerged as an independent brokerage in Canada.
Questrade is primarily geared towards investors who prefer active investing and desire complete control over their investment portfolio and instruments. The platform’s popularity can be attributed to its low fees, various investment products and services, and solid trading platform.
Let’s understand how these two are similar or different with the help of specific parameters.
Account Types
The kind of accounts each company offers should be considered when choosing between Wealthsimple and Questrade. Both trading platforms provide a wide selection of goods and services but have accounts catering to more specialized saving and investment requirements.
Tax-Free Savings Accounts (TFSA), Registered Retirement Savings Plans (RRSP), Registered Education Savings Plans (RESP), Joint Accounts, and Individual Accounts are the five main account categories available through Wealthsimple.
In addition to TFSA, RRSP, RESP, and Individual Accounts, Questrade also provides Locked-In Retirement Accounts (LIRAs) and Locked-In Retirement Income Funds (LRIF).
Funding Options
The procedure for funding the investing account may differ from one platform to another. Users can finance their Wealthsimple account with a credit or debit card, bank transfer, or both. The procedure is easy to understand.
Questrade, on the other hand, provides a few more choices for account funding. The user can finance their profile in addition to using bank transfers and credit/debit cards with the help of a wire transfer or an e-check.
Then, by connecting them to their chequing account, one can finance their Wealthsimple or Questrade Portfolio accounts. One can manually deposit funds into their investing accounts or set up automated monthly contributions.
Asset Types
The kind of asset types that a platform offers form a significant point of discussion while considering investing options. While one can offer general asset types such as securities, bonds, etc., the other can diversify the investment portfolio using ETFs, hedge funds, and cryptocurrency.
With stocks, cryptocurrency trading, and ETF trading available, Wealthsimple has fewer assets and investments than Questrade.
On the other hand, Questrade provides trading in stocks, fixed income, mutual funds, options, foreign currency, precious metals, and CFDs.
Trading Fees
The most crucial factor that drives the decision of a user whether to invest in which platform is the trading fees that a particular platform charges on different types of transactions.
The following tables will give a clear and concise idea on what are the different trading fees on these platforms:
Wealthsimple Trading Fees
| Investment products | Fees |
| Annual Account Management Fees | 0.5% for accounts under $100,000 and 0.4% for accounts exceeding $100,000 |
| Currency Conversion Fees | 1.5% currency conversion fee between USD and CAD |
| Crypto Trading Fees | 1.5% fee for crypto transactions |
| Wire Transfer Fees | $30 |
| Stock Trading Fees | No fees on Canadian stock and Canadian ETF transactions |
Questrade Trading Fees
| Investment products | Fees |
| Annual Account Management Fees | 0.25% |
| Currency Conversion Fees | 1.45% average over the proceeding business year between USD and CAD |
| Crypto Trading Fees | 1.5% fee for crypto transactions |
| Mutual Funds Trading Fees | $9.95 per transaction |
| Options Trading Fees | $9.95 (plus $1.00 per contract) |
| Stock Trading Fees | $4.95 per trade or $9.95 per 1,000 trades and buying free for ETF, selling @ $4.95 per sale of ETF. |
Which one to choose – Wealthsimple or Questrade
We have discussed the primary factors investors should consider while selecting an investment platform, but there are other criteria to keep in mind. In terms of availability, both Wealthsimple and Questrade are accessible on Android and iOS devices. When it comes to minimum investment, Wealthsimple does not have a specific requirement, whereas Questrade mandates a minimum investment of $1000 to open an account.
Regarding security and legality, both platforms are registered and are members of the Canadian Investor Protection Fund, adding an extra layer of security for their users. After comprehensively comparing both platforms and highlighting their respective features, the decision ultimately rests with the investor. Both platforms are different from the others, as each offers solutions tailored to specific investor needs. Wealthsimple is an excellent choice for those seeking an easy investment platform in the Canadian and US markets. In contrast, investors seeking to diversify their portfolios in the global market should consider Questrade. Although a detailed analysis has been conducted, the decision between Wealthsimple and Questrade ultimately rests with the investor.
Investment accounts are a crucial component of personal finance, and online trading platforms make it easy for investors to start investing in the financial industry. However, beginners should be mindful of market volatility and consider developing a diversified investment strategy. Online brokerage firms offer a range of investment options, including the ability to trade stocks, buy and sell stocks, and trade options. Full-service investment firms offer personalized investment advice and research tools to help investors make informed decisions. Regardless of the platform, investors should consider their investment goals and risk tolerance when selecting an online trading platform.
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