Can I Invest $100 in Wealthsimple? A Simple Answer

Wealthsimple is a Canadian online investment management service that has been gaining popularity over the last number of years. It offers a range of investment products and services to help individuals grow their wealth. One question that often comes up is whether it’s possible to invest just $100 in Wealthsimple.

The answer is yes, you can invest $100 in Wealthsimple. In fact, Wealthsimple has a minimum investment requirement of just $1, making it accessible to anyone who wants to start investing. However, it’s important to understand that investing such a small amount may not lead to significant returns in the short term.

Investing $100 in Wealthsimple is a good way to get started with investing, especially if you’re new to the world of investing.

It allows you to dip your toes in the water and get a feel for how investing works without risking a lot of money. However, it’s also important to keep in mind that investing always carries some level of risk so it’s important to do your research and understand the risks involved before making any investment decisions.

Understanding Wealthsimple

What is Wealthsimple

Wealthsimple is a Canadian robo-advisor that offers a range of investment products and services to help people invest their money. The company was founded in 2014 and has since grown to become one of the largest private financial institutions in Canada, with over $15 billion in assets under management.

Wealthsimple’s mission is pretty clear, it’s to make investing simple and accessible to everyone, regardless of their level of experience or wealth. The company offers a range of investment products, all of which I use, while we won’t get into each one here in depth, I will leave links to my reviews of each of their main products below:

1. Robo advisor (Wealthsimple Invest – Read my Review Here)
2. Do-It-Yourself Investment Platform (Wealtshimple Trade – Read my Review Here)
3. Crypto Platform (Wealthsimple Crypto – Read my Review Here)
4. Online Tax Software (Wealthsimple Tax – Read my Review Here)
5. Pre-Paid Mastercard (Wealtshimple Cash – Read my Review Here)

Wealthsimple also offers a range of account types, including HISAs (high-interest savings account), RRSPs, TFSAs, and RESPs, which allow investors to save for their retirement, education, or other goals. The company’s investment portfolios are designed by a team of experts who use a mix of passive and active investment strategies to help investors achieve their goals.

Features of Wealthsimple

Wealthsimple offers a range of features that make it easy for investors to invest their money and manage their investments.

Some of the key features of Wealthsimple include:

• Low fees: Wealthsimple charges some of the lowest fees in the industry, with management fees starting at just 0.5% for its basic portfolio.
• Automatic rebalancing: Wealthsimple’s investment portfolios are automatically rebalanced to ensure they stay aligned with investors’ goals and risk tolerance.
• Tax-loss harvesting: Wealthsimple offers tax-loss harvesting ^[1]. , which helps investors minimize their tax bill by selling losing investments and using the losses to offset gains.
• Socially responsible investing: Wealthsimple offers socially responsible investing options, which allow investors to invest in companies that align with their values and beliefs.
• Mobile app: Wealthsimple’s mobile app makes it easy for investors to manage their investments on the go, with features like account monitoring, goal tracking, and more.

Overall, Wealthsimple is a great option for investors who want to invest their money in a simple, low-cost, and hassle-free way. With a range of investment products and services and a commitment to making investing accessible to everyone, Wealthsimple is a great choice for anyone looking to invest their money.

I’ve personally been using Wealthsimple since 2018 and started with not much more than $100, so I know firsthand that investing $100 in Wealthsimple is totally possible.

Investing $100 in Wealthsimple

In this section, we will discuss how exactly you can invest $100 in Wealthsimple and the potential returns.

How to Start

Investing $100 in Wealthsimple is a straightforward process. Here are the steps to follow:

1. Open an account: The first step is to create an account on the Wealthsimple website. You will need to provide some personal information, such as your name, address, and social security number. This is where you’ll choose if you want to open a Wealthsimple Invest or Trade account.

2. Choose an investment portfolio: Wealthsimple offers a range of investment portfolios that are designed to meet different investment goals and risk tolerance levels. You can choose a portfolio that suits your investment objectives and risk tolerance.

3. Deposit $100: Once you have chosen your investment portfolio, you can deposit $100 into your account. You can do this by linking your bank account to your Wealthsimple account.
4. Monitor your investments: Wealthsimple will manage your investments for you. You can monitor your investments through the Wealthsimple website or mobile app.

Potential Returns

The potential returns from investing $100 in Wealthsimple will depend on a variety of factors, such as the investment portfolio you choose, the performance of the stocks or ETFs you invest in, and of course, the length of time you hold your investments.

Wealthsimple’s investment portfolios are designed to provide a diversified mix of investments that can help reduce risk and maximize returns. The portfolios are managed by a team of investment professionals who use a combination of passive and active investment strategies to achieve the best possible returns.

Quick Note: A passive investment strategy, similar to passive income, refers to an investment strategy where you, the investor, don’t have to do a lot, and everything is managed for you.

Historically, the stock market has provided an average annual return of around 7%. This means that if you invest $100 in a Wealthsimple portfolio that tracks the stock market, you could potentially earn around $7 in a year. There absolutely is no guarantee that the stock market will perform as well in the future as it has in the past.

I really think even starting with $100 in Wealthsimple is a great investing strategy to start with for people who don’t have a lot to invest. With Wealthsimple’s simple and easy-to-use platform, you can start investing in just a few minutes.

The potential returns will depend on a variety of factors, but Wealthsimple’s investment portfolios are designed to provide a diversified mix of investments that can help reduce risk and maximize returns.

Risks of Investing in Wealthsimple

Investing always comes with risks, and Wealthsimple is no exception. Here are some of the risks to consider before investing in Wealthsimple:

Market Risk

One of the most significant risks of investing in Wealthsimple is market risk. The value of your investments can fluctuate depending on how markets move. Wealthsimple offers a range of portfolios with different risk levels, but even the most conservative portfolio can still be affected by market volatility.

Currency Risk

Another risk to consider is currency risk. If you invest in a portfolio that includes foreign securities, the value of your investments can be affected by changes in exchange rates. Wealthsimple offers portfolios that are hedged against currency fluctuations, but this can come at an additional cost.

Interest Rate Risk

Interest rate risk is another factor to consider when investing in Wealthsimple. If interest rates rise, the value of your fixed-income investments can decrease. Wealthsimple offers a range of fixed-income investments, but it’s important to keep in mind that they are not immune to interest rate risk.

Platform Risk

Finally, there is platform risk to consider when investing in Wealthsimple. While Wealthsimple is a reputable company, there is always the risk that the platform could experience technical issues or security breaches that could affect your investments.

Overall, investing in Wealthsimple comes with risks, but these risks can be managed by diversifying your investments and choosing a portfolio that aligns with your risk tolerance and your short and long term goals. It’s important to do your own research and consult with a financial advisor before making any investment decisions.

Alternatives to Wealthsimple

While Wealthsimple is a popular choice for Canadian investors, there are other investment platforms available that may better suit the needs of some investors. Here are a few alternatives to Wealthsimple:

Questrade

Questrade is a Canadian online brokerage that allows investors to buy and sell shares, ETFs, mutual funds, and other securities. Like Wealthsimple, Questrade offers commission-free ETF trading ^[2], but it also offers a wider selection of securities, including bonds, options, and IPOs. Questrade has a desktop and mobile app for trading, and its fees are generally lower than traditional banks.

TD Direct Investing

TD Direct Investing is an online brokerage that offers a variety of investment options, including individual stocks, ETFs, mutual funds, and bonds. TD Direct Investing also offers a robo-advisor service, which provides investors with a professionally managed portfolio of ETFs. TD Direct Investing has a desktop and mobile app for trading, and its fees are generally lower than traditional banks.

Interactive Brokers

Interactive Brokers is a US-based online brokerage that offers a wide range of investment options, including stocks, options, futures, forex, and bonds. Interactive Brokers is known for its low fees and advanced trading tools, which are geared towards experienced investors. Interactive Brokers has a desktop and mobile app for trading.

CIBC Investor’s Edge

CIBC Investor’s Edge is an online brokerage that offers a variety of investment options, including stocks, ETFs, mutual funds, and bonds. CIBC Investor’s Edge also offers a robo-advisor service, which provides investors with a professionally managed portfolio of ETFs. CIBC Investor’s Edge has a desktop and mobile app for trading, and its fees are generally lower than traditional banks.

Investors should consider their investment goals and risk tolerance before choosing an investment platform. It is important to compare fees, investment options, and trading tools before making a decision.

The Bottom Line

Investing in Wealthsimple with $100 is a great way to start investing. Wealthsimple is a low-cost robo-advisor that offers a range of investment options to suit different investment goals and risk profiles. The platform is user-friendly and easy to navigate, making it ideal for beginners who are just starting out in the world of investing.

One of the key advantages of investing with Wealthsimple is its low fees. The platform charges a management fee of just 0.5%, which is significantly lower than the fees charged by traditional investment advisors. This means that investors can keep more of their money invested and working for them, rather than paying high fees to a financial advisor.

Another advantage of investing with Wealthsimple is its focus on diversification. The platform offers a range of investment portfolios that are designed to spread risk across different asset classes, including stocks, bonds, and alternative investments. This helps to minimize risk and maximize returns over the long term.

Overall, investing $100 in Wealthsimple is a smart move for anyone who wants to start investing but doesn’t have a lot of money to spare. With its low fees, user-friendly platform, and focus on diversification, Wealthsimple is a great option for beginners who want to dip their toes into the world of investing.

Frequently Asked Questions

What’s the minimum amount required to open a Wealthsimple Investment Account?

You can open a Wealthsimple Investment Account with no minimum requirement. In fact, even an amount as modest as $1 is acceptable, allowing many to kickstart their emergency fund.

Is it Feasible to Begin Investing with just $100?

Absolutely, investing with just $100 in Wealthsimple is possible. Remember, investing early on in life often pay dividends in the long run, and starting with $100 is a step in that direction.

Where’s the best place to invest $100 in Canada?

For those in Canada with $100, considering robo advisors like Wealthsimple is a wise choice. These platforms offer an easy introduction to investing, and Wealthsimple, in particular, is user-friendly for novices wanting to grow their emergency fund.

How much would the fees be for investing $100 in Wealthsimple?

For investments under $100,000 in a Wealthsimple brokerage account, a management fee of 0.5% applies. Thus, with a $100 investment, your yearly fee would be $0.50.

Is it secure to use Wealthsimple for a $100 investment?

Yes, Wealthsimple is a reliable platform for your $100 stock market investment. As a member of the Investment Industry Regulatory Organization of Canada (IIROC) and registered with the Canadian Securities Administrators ^[3], its safety measures are top-notch. Plus, its bank-level security ensures the protection of your data.

What advantages does Wealthsimple Premium offer for a $100 investment?

While Wealthsimple Premium is tailored for those with over $100,000 in assets, offering perks like financial planning and tax-loss harvesting, a $100 investment is best suited for Wealthsimple Basic. However, using robo advisors like Wealthsimple can feel like free money due to the convenience and tools they offer, even with smaller investments.