Wealthsimple Invest vs Trade 2024 | Which is Right For You?

Written byNoel Moffatt Updated on
Reading time: 24 mins

If you’re new to Wealthsimple, you might be a little confused by their product offerings when it comes to the difference between Wealthsimple Invest vs Wealthsimple Trade.

So, as a user of both Wealthsimple Invest and Trade for many years, let me first clarify this for you.

To put it simply, Wealthsimple Invest is Wealthsimple’s managed investment platform, which is also referred to as a robo-advisor, whereas Wealthsimple Trade is Wealthsimple’s do-it-yourself trading platform where the investor makes the decision on what stocks and ETFs they want to invest in.

For the rest of this article, I will expand on the main differences between Wealthsimple Invest vs Trade and give you more insight into which platform might be best for you (maybe both!). I’ll also speak on my own experience with both platforms over the last number of years and break down their pros and cons.

Wealthsimple Invest vs Trade | Simply Explained

So as mentioned above, Wealthsimple Invest is a platform you would use if you just wanted to deposit your money and let Wealthsimple invest your money for you. I’ll talk about this more later, but you’d basically just set your risk level on a scale of 1-10 and then let Wealthsimple manage the rest.

Wealthsimple usually refers to Wealthsimple Invest as their “Managed Investing” plan.

Wealthsimple Trade, on the other hand, is managed by you, the investor.

So you would open an account, and deposit money into it, which would then sit in your account as cash until you decide to invest this cash into either stocks or ETFs (or both). If you don’t actively buy anything, the money will just sit in cash in your trade account like it would a bank account.

So if you’re a Canadian investor and you wanted to buy for example Facebook stock, or maybe stock in a company like Tesla or Apple, then you would want to open a Wealthsimple Trade account.

What Wealthsimple said when I asked:

could You explain to me the difference between Wealthsimple Invest and Trade?

Wealthsimple Invest is our managed account platform. Here, Wealthsimple manages your portfolio for you. In other words, any funds you deposit will be invested on your behalf and the account managed for you. Wealthsimple trade on the other hand is the self directed accounts where you are able to invest in stocks, ETFs and crypto yourself. Here, you choose the securities you want to invest in and do so yourself. With Invest, a 0.5% management fee applies, however, there is not management fee for Trade
Sal
Wealthsimple Customer Support Team

Comprehensive Comparison

In A Nutshell

Wealthsimple InvestWealthsimple Trade
Best Suited ForInvestors who want to take a more hands-off approach – “set-and-forget.”Investors who want full control over what they’re investing in – “do-it-yourself.”
Investing Fees0.4% – 0.5% of Your PortfolioCurrency Conversion Fees
Minimum Deposit Required$0$0
Performance OptionsConservative, Balanced, GrowthPersonalized by Investor
Account TypesPersonal, TFSA, RRSP, Spousal RRSP, LIRA, Crypto, RESPPersonal, TFSA, RRSP, Crypto
Portfolio ThemesClassic, Socially Responsible, HalalPersonalized by Investor
Other Platform Features– Risk Tolerance Slider
– Automatic Portfolio Rebalancing
– Dividend Reinvesting
– Tax Loss Harvesting		– Fractional Shares
– Crypto Platform
– Price Alerts
Services OfferedPortfolio Managers, Customer SupportCustomer Support
Higher Tier PlansWealthsimple Black and Wealthsimple GenerationWealthsimple Trade Plus

1. Best Suited For

Wealthsimple Invest is definitely best suited not just for beginner investors but also for investors of any experience level that just don’t want to manage their portfolio. For example, I’m not an expert, but I wouldn’t consider myself a beginner, but I have an RRSP open with Wealthsimple Invest because I don’t want to actively manage that myself.

Wealthsimple Trade, on the other hand, is better suited for investors looking to buy and sell their own stocks and ETFs based on their own research and goals. Now, some people may think Wealthsimple Trade is better suited for “experienced investors”, but that’s really not the case.

Wealthsimple Trade is a great self-directed trading platform for first-time investors who want to get in the game. For example, when I first opened a Wealthsimple Trade account in 2019, I was definitely a beginner, and I only had a few hundred dollars to invest, and the platform was great for that.

And my last point of this is that you might be best suited for both of these platforms. Personally, I have an RRSP open with Wealthsimple Invest for the reasons discussed above, but I have a TFSA open with Wealthsimple Trade.

So remember, it’s not one of the other!

As you can see in my portfolio here, I have close to 65% of my portfolio in Managed Investments (Wealthsimple Invest), 31% in a Wealthsimple Save account, and that 3% in my DIY Stocks, Options and ETFs account, which is Wealthsimple Trade, and then 1.4% in Crypto.

So don’t look at Wealthsimple Invest versus Trade and think Invest is for beginners and Trade is for experts because that’s not the case at all. Wealthsimple Invest is for people who don’t want to actively manage things like dividend reinvesting and portfolio rebalancing, whereas Trade is better for those who want to have a more active, hands-on approach, regardless of their experience level.

TLDR: Wealthsimple Invest is for passive investors, while Wealthsimple Trade is for those who want to actively manage their own portfolio. Both platforms can suit investors of any experience level.

2. Investing Fees

When it comes to fees, Wealthsimple has always been transparent in what they charge investors for their services.

Wealthsimple Invest management Fees

Wealthsimple Invest charges a 0.5% annual management fee for clients who have under $100,000 in account deposits. Once you hit $100,000 or more in deposits, your annual management fee will drop to 0.4%.

To calculate how much this is in terms of dollars, you multiply your portfolio balance by 0.5% (0.005) and then divide it by 12. You divide it by 12 because even though the 0.5% management fee is annual, Wealthsimple will take their cut from your portfolio on the last day of each month.

So, for example, if you had $1,000 in your Wealthsimple Invest account, you would be charged $0.42 on the last day of the month. ($1,000 x 0.5% = $5 and then $5/12 = $0.42).

Above you’ll see an image of my Wealthsimple Invest Activity dashboard, where Wealthsimple clearly documents the amounts taken out each month.

Wealthsimple Trade Currency Conversion Fees

Wealthsimple Trade’s fee structure differs from Wealthsimple Invest because with Wealthsimple Trade, you are managing your own money, and therefore there is no management fee like there is for Wealthsimple Invest.

Unfortunately, Wealthsimple Trade still has some fees you’ll want to know about.

But when you buy a US-listed stock with Wealthsimple Trade, you’ll be required to pay what’s called a currency exchange fee of 1.5%. Wealthsimple Trade’s 1.5% currency conversion fee is charged every time you buy and sell US stocks. This fee is basically charged to convert your Canadian dollars to USD in order to buy the US-listed stock.

It’s also important to note that when buying Canadian Stocks or ETFs like Scotiabank or Telus, you won’t have to pay any fees as there is no currency conversion required when buying Canadian equities.

Step #1 – Determine the total price of your investment in USD.

Step #2 – Google the Current USD to CDN exchange rate.

Step #3 – Multiply the current exchange rate by 1.5%.

Step #4 – Multiply the number you get in Step #3 by the total price of your investment in USD (from Step #1).

Step #5 – Multiply the current USD to CDN exchange rate by your total price of investment in USD (from Step #1).

Step #6 – Subtract the number your get in Step #5 from the number you get in Step #4.

Step #7 – This is the conversion fee you will pay. It will automatically be included in your total cost of order.

Example of Currency Conversion Fees

Say you have $1,000 CAD that you want to invest in a U.S. stock. At the current CAD/USD exchange rate (.79), that $1,000 CAD would be worth roughly $790 USD. However, Wealthsimple Trade takes 1.5% of this conversion rate.

This would make the conversion rate you receive .77815 (.79 X .985). Therefore, instead of getting $790 USD, you would only get $778.15.  Now, say that your investment appreciates to where it reaches an even $1,000 USD, and you decide to sell your shares.

Instead of getting the current USD/CAD conversion rate of 1.27, you will only get 1.25095 (1.27 X .985). Therefore, instead of getting $1,270 CAD, you will only get $1,250.95.

On the surface, you made $250.95 off of your initial $1,000 investment. This is good for an impressive 25% ROI. However, when you factor in the conversion fees of roughly $30.90 CAD, it’s not quite as impressive as this $30.90 represents 12.3% of your total profit.

As a result, if you are the type of trader who likes to make frequent, low-margin trades, then the conversion fees for dealing in U.S-based stocks can be prohibitive. If you are more of a buy-and-hold type of investor and are looking for big, long-term gains, then it may not be as much of an issue.

In saying all of this, Wealthsimple Trade does have a premium plan for those investors who don’t want to pay these conversion fees every time they buy or sell stocks or ETFs. That plan is called Wealthsimple Trade Plus, but we will talk about that in the Higher Tier Plans section below.

TLDR: Wealthsimple Invest charges a management fee of 0.5% for accounts under $100,000 and 0.4% for accounts over $100,000. Wealthsimple Trade has no management fee, but charges a 1.5% currency exchange fee when buying US-listed stocks. No fees are charged for buying Canadian stocks or ETFs.

3. Minimum Deposit Required

Regarding minimum deposit requirements, Wealthsimple Invest and Trade have always had a no minimum deposit requirement to open an account, so you can literally start investing with as little as $1.

Now, investing $1 isn’t going to do much for you, but a lot of people who are just getting started might want to start with maybe $50 a month, and with Wealthsimple, Invest or Trade, you can do this, which is really great for new investors who might not have thousands of dollars to invest from the start.

TLDR: Wealthsimple Invest and Trade have no minimum deposit requirements to open an account, allowing investors to start with as little as $1.

4. Performance Options

If you decide to go with Wealthsimple Invest, even though you’ll have less control over your investments, you’ll still have some control.

Wealthsimple Invest lets you, the investor, choose between three performance options:

  • Conservative [Less Equities and More Fixed Income]
  • Balanced [Equal Mix Between Equities and Fixed Income]
  • Growth [More Equities and Less Fixed Income]

So from a risk perspective, the growth option is the riskiest, and the least risky is the conservative option.

Now you’ll be asked to set your risk level when you first sign up for a Wealthsimple Invest account, but you can easily change and adjust it after with a super user-friendly slider. As you’ll see in the video I created and added below, as you adjust the risk tolerance slider, your equities to fixed income percentages change to reflect your risk preferences.

Wealthsimple Trade, on the other hand doesn’t offer any sort of performance options, or risk sliders or anything like that because Wealthsimple is not managing the portfolio like does with Wealthsimple Invest, you are.

So at the end of the day, whatever the investor invests on Wealthsimple Trade will dictate their risk level and potential performance.

TLDR: Wealthsimple Invest lets investors choose between 3 performance options, allowing some control over their investments. Wealthsimple Trade doesn’t offer performance options, and it’s up to the investor to make decisions on his risk levels based on his investment choices.

5. Account Types

Wealthsimple offers Canadian investors a wide range of account types for them to open, but not all account types are supported by Wealthsimple Invest, while other accounts are not supported by Trade.

In short, Wealthsimple Trade supports Personal, TFSAs, RRSPs and Crypto accounts but doesn’t support Spousal RRSPs, LIRAs, or RESPs. Wealthsimple Invest, on the other hand, supports all the accounts listed above EXCEPT for Crypto.

So if you want to invest in Crypto, you’ll need to open a Wealthsimple Trade account and if you want to invest in either a Spousal RRSP, LIRA or RESP, you’ll need a Wealthsimple Invest account.

Account TypeAvailable for Wealthsimple InvestAvailable for Wealthsimple Trade
PersonalYesYes
RRSPYesYes
TFSAYesYes
CryptoNoYes
Spousal RRSPYesNo
LIRAYesNo
RESPYesNo

TLDR: Wealthsimple Invest and Trade differ in their supported account types. Wealthsimple Trade supports Personal, TFSAs, RRSPs, and Crypto accounts but not Spousal RRSPs, LIRAs, or RESPs. Wealthsimple Invest, on the other hand, supports all of the accounts listed above EXCEPT for Crypto.

6. Portfolio Themes

The following important distinction between Wealthsimple Invest vs Trade is that Wealthsimple Invest offers investors the option to select from unique portfolio themes, which include:

  • Classic – Your investment portfolio will include multiple asset classes and from various geographic regions, providing investors with the potential for higher returns while managing risk. [1]
  • Socially Responsible Investing (SRI) – Your investment portfolio will include ETFs that have been screened for environmental and social impact, all while maintaining a diversified portfolio that’s designed to maximize performance. [2]
  • Halal – Your investment portfolio will not only optimized for performance but also for companies and investments that adhere to Islamic law.[3]

I personally just go with Classic, but it’s really up to the investor and their beliefs and values.

And then, similar to performance options, Wealthsimple Trade doesn’t offer these prepackaged portfolio themes because it’s a self-directed investment platform, and it’s 100% up to the investor on the types of stocks and ETFs they want to invest in.

TLDR: Wealthsimple Invest offers three portfolio themes for investors to choose from – Classic, Socially Responsible Investing, and Halal. Wealthsimple Trade is a self-directed investment platform and, therefor doesn’t offer these themes and it’s up to the investor on how they want to invest.

7. Other Platform Features

Other distinctions between Wealthsimple Invest vs Trade are made in some of the additional platform features offered by each one that the other doesn’t.

Wealthsimple Invest

  • Automatic Portfolio Rebalancing – As mentioned earlier, when you set your risk level, your investments will be split between equities and fixed income. The more risk you are willing to embrace, the more you’ll invest in equities. For example, my risk level is set to 8/10, so Wealthsimple has 80% of my portfolio in equities and 20% of it in fixed income. But what about when my investments start doing really well (or poorly) and increasing (or decreasing) in value? Well, these percentages are going to start impacting my equity/fixed income ratio. So, Wealthsimple Invest will continually rebalance your portfolio based on your portfolios fluctuations to maintain your desired risk tolerance.
  • Risk Tolerance Slider – As shown above in my video, Wealthsimple Invest has a risk tolerance slider that makes it really easy for investors to set the preferred risk levels – it literally takes a matter of seconds. Wealthsimple Trade does not have this feature, as investors who use the Trade platform indirectly set their risk tolerance when buying whatever stocks or ETFs they wish to invest in.
  • Dividend Reinvestment Plan – Similar to the automatic portfolio rebalancing, Wealthsimple Invest also automatically reinvests any dividends you earn. So let’s say you earn $100 in dividends in May; these cash dividends will automatically be reinvested back into your account to help grow your account even more.
  • Tax Loss Harvesting – Tax loss harvesting is a bit of an advanced topic, but it’s basically a tax optimization strategy that involves selling securities or investments that have decreased in value to offset taxes on capital gains from other securities or investments that have increased in value. The whole idea behind tax loss harvesting is to reduce the amount of taxes owed on capital gains by realizing losses to offset those gains. And lucky for you, if you have over $100k in net deposits with Wealthsimple Invest, they’ll help you maximize your tax efficiency to help put money back in your pocket. This plan is only available for Wealthsimple Black Clients. [4]

So with Wealthsimple Invest, these are some of the additional features you’ll get that Wealthsimple Trade won’t offer you. But on the flip side, Wealthsimple Trade also has some additional features that Wealthsimple Invest clients won’t be able to take advantage of.

Wealthsimple Trade

  • Fractional Shares – With Wealthsimple Trade, you can buy fractional shares in your favourite companies in which you might not be able to buy a whole share. For example, you could buy 10% of a share of Tesla or Amazon. Now since Wealthsimple Invest invests your money solely in pre-selected ETFs, you won’t get this feature on the platform.
  • Crypto Platform – Wealthsimple Trade has a crypto platform, “Wealthsimple Crypto,” integrated into it, so when signing up for a Wealthsimple Trade platform, you’ll automatically get access to their crypto exchange too. It used to be a separate platform all together, and you’d need to sign up for it separately, but now it’s all in one, which I really like as it helps keep more of my money in the same app as opposed to having multiple logins. Wealthsimple Invest currently doesn’t offer any way to get direct exposure to the crypto markets. So if you want to invest in crypto, you’ll want to use Wealthsimple Trade/Crypto.
  • Price Alerts- With Wealthsimple Trade, as you’re analyzing what stocks or ETFs to buy, you can set price alerts to notify you when a certain threshold is met. Alerts could be for a price being met, a percent increase or decrease in price, 52-week highs/lows or daily volatility thresholds. I really enjoy these alerts as it helps keep me in the know on certain assets I may be interested in investing in. Due to the nature of Wealthsimple Invest’s platform, where the investor doesn’t control the assets that will be invested on his behalf, it does not offer this feature.

TLDR: Wealthsimple Invest offers automatic portfolio rebalancing, a risk tolerance slider, a dividend reinvestment plan, and tax loss harvesting support. Wealthsimple Trade offers fractional shares, a crypto platform, and price alerts for self-managed investors. Each of these features is unique to each platform and not supported by the other.

8. Services Offered

Similar to Wealthsimple’s safety features, Wealthsimple Invest and Trade have very similar offerings, which doesn’t come as much of a surprise because, at the end of the day, it’s all one company. You can reach the support team of both platforms through live chat or phone from Monday-Friday from 8 am – 8 pm (ET) or Saturday & Sunday from 9 am – 5 pm (ET)].

Additionally, they have a support email address which you can email 24/7. I’ve used the support team many times, and I can attest from first-hand experience how helpful, responsive and friendly they are.

However, the main difference between the services offered by the two platforms is that Wealthsimple Invest offers a service called Portfolio Reviews.

This service allows current or potential Wealthsimple Investor investors the opportunity to schedule a meeting with one of Wealthsimple’s fiduciary portfolio managers, who will conduct a comprehensive review of their entire financial situation. During the meeting, the portfolio manager will offer a holistic review, diagnose fees, set goals, and recommend ways you can lower taxes. [5] Here is the link to the meeting for making your appointment.

TLDR: Wealthsimple Invest and Trade have similar services, with a support team available via chat, phone, and email. However, the main difference in the service offering by each platform is that Wealthsimple Invest offers Portfolio Reviews to its current or future clients.

9. Higher Tier Plans

Wealthsimple offers premium plans for both its Wealthsimple Invest and Wealthsimple Trade clients.

Wealthsimple Invest

For Wealthsimple Invest, the premium plans are Wealthsimple Black and Wealthsimple Generation. As discussed earlier, Wealthsimple Black is available to clients with net deposits of $100,000 or more in their Wealthsimple Invest & Save accounts.

Clients with Wealthsimple Black status receive a lower management fee of only 0.4%, 4% interest on their Cash account, access to tax-efficient features, priority service, and expert advice. Clients will also get six months of free medical care and a discount on their first online will. [6]

Now for the super rich – Wealthsimple Generation. Wealthsimple Generation is available to clients with net deposits of $500,000 or more in their Wealthsimple Invest & Save accounts. In addition to the benefits of Wealthsimple Black, Wealthsimple Generation clients receive a personalized financial report customized to their goals, 50% off Medcan’s Comprehensive Care plan, and unlimited financial planning sessions with experienced portfolio managers. [7]

Wealthsimple Trade

Now moving on to Wealthsimple Trade’s premium plan, which we’ve discussed already in this article – Wealthsimple Trade Plus. For $10 a month, clients get access to USD accounts, no foreign-exchange fees on trades, unlimited price-change alerts, and instant deposits up to $5,000.

I’ve personally been using Plus for over a year now, and I really enjoy it. I don’t like paying currency conversion fees every time I buy and sell US-listed stocks as I sometimes make frequent trades.

It’s important to note that these premium plans are only available for their selected platforms. So there is no such thing as Wealthsimple Black or Generation for Wealthsimple Trade clients, even if they meet the net deposit thresholds, and there is no such thing as Trade Plus for Wealthsimple Invest for obvious reasons.

TLDR: Wealthsimple Invest has two higher-tier plans – Wealthsimple Black and Generation. Wealthsimple Trade has one premium plan called Plus. As outlined above, all three of these accounts have unique feature offerings that the basic versions of Invest and Trade don’t offer.

Which is Right For You – Invest or Trade?

In this next section, I give 6 personas that best represent the type of investor best suited for either Wealthsimple Invest or Wealthsimple Trade. It’s also very possible you might be suitable for both platforms.

For example, I have an RRSP open with Wealthsimple Invest, as I don’t want to rely on my investment skills for my retirement fund, but I have my TFSA open with Wealthsimple Trade because I genuinely enjoy researching and investing in stocks myself.

Let’s start with Wealthsimple Invest.

Wealthsimple Invest is Right For You If…

  • You are a complete beginner to the world of investing. If you’re just looking to open up an RRSP or TFSA to start preparing for your financial future with a hands-off approach, Wealthsimple Invest is definitely right for you.
  • You like the idea of investing in diversified funds instead of individual stocks. Wealthsimple Invest puts your money to work by investing it in ETFs, which are baskets of various assets such as stocks and bonds.
  • You’re looking for a simple, accessible way to invest in the stock market. Wealthsimple Invest is a great option for those who want to invest in the stock market but don’t have the time or knowledge to manage their own portfolio.
  • You don’t mind paying a small fee to have your portfolio managed. Depending on how much money you have invested, you’ll pay 0.4% to 0.5% in annual fees to Wealthsimple for managing your funds for you.
  • You want to start investing with a low minimum investment. Wealthsimple Invest has a minimum investment of only $1, making it accessible to investors of all levels.
  • You want to invest in socially responsible companies. Wealthsimple Invest offers socially responsible investing options, allowing you to invest in companies that align with your values.

Why Customers use wealthsimple Invest

Don’t Just Take my Word For It

Great for Passive Investors

I’ve been using Wealthsimple [Invest] for a few years now and they’ve been great. I don’t have time to manage my own portfolio and as a robo investor they’ve been able to deliver great returns with low fees and allow me to have the peace of mind without all of the up selling hassles of being with a big bank or a broker paid on commission.
Thomas Costa
Source: Trust Pilot

Takes the Stress Out of Investing

I have invested with Wealthsimple for almost two years now. Despite some only to be expected market ups and downs in that period, the fund is now comfortably up. Advice when I have asked for it has been patient and sensible for a novice investor and above everything else saves me the time and effort required to make sensible investment decisions. All transactions in to my account have been handled efficiently and quickly.
Elliot Goran
Source: Trust Pilot

Would strongly recommend if you don’t want to get too involved in the fund management.

 I wanted a simple, medium risk managed fund with little intervention from me and Wealthsimple can provide this. Their app for checking the performance of my fund is very simple to use, which is just what I wanted.
Gary Cole
Source: Trust Pilot

Easy to use, Low Fees

I have been using Wealthsimple roboadvisor account for over 3 years now. I have TFSA and RRSP plans in there. Very easy to use, low fees and I am loving it.
Sakthi P
Source: Trust Pilot

8% returns

Started using Wealthsimple in June 2018, so far I have seen an 8% return on my mid-risk sustainable investment. So far so good, would recommend
Brett Easton
Source: Trust Pilot

Wealthsimple Trade is a Better Fit for You if…

  • You want to have full control of what assets you’re investing in. If you want to buy and sell stocks and ETFs yourself, you should use Trade over Invest.
  • You don’t want to pay any fees for having your money managed. With self-directed investing, you don’t pay anyone to manage your money; therefor, there are no management fees.
  • You want to buy stocks. Wealthsimple Trade is great for anyone wanting to buy stocks in their favourite companies like Google, Tesla or Amazon. And, with their fractional shares feature, you don’t need to buy the entire share.
  • You’re interested in investing in Crypto assets. Wealthsimple Crypto is held under the same user interface as Wealthsimple Trade, so by signing up for a Trade account, you’ll automatically get access to the crypto markets.
  • You want to be able to deposit funds and invest quickly from your account. Wealthsimple offers instant deposits to its investors up to a specific limit.
  • You like checking and monitoring your performance on a mobile device. I would argue that Wealthsimple Trade’s mobile application is better than their desktop experience.

Why Customers use wealthsimple Trade

Don’t Just Take my Word For It

Highly recommend!

I have to admit my experience with WealthSimple has been wonderful thus far! I can fund my TFSA through my Simplii account and buy stock within minutes. Easy peasy! Fingers crossed I won’t have any issues going forward. Great customer service as well. Highly recommend this user friendly trading service.
Amira Jacobs
Source: Trust Pilot

Been with Wealthsimple for a year now…

Been with Wealthsimple for a year now both with Wealthsimple Trade and investing. Good returns for the past year and I have to say, it does not get any better buying stocks for $0 charge. 
Ingo Knowles
Source: Trust Pilot

Easy to use, great customer service

I don’t think any other trading app offers the choice to trade without any fees!
Vero Hunt
Source: Trust Pilot

Great!

I use their robo advisor and their trade app. Both work great. Has enabled me and my family to save and invest at our place. Looking forward to seeing how they grow their product.
Luke Griffin
Source: Trust Pilot

Great user experience and no fee trades…

Great user experience and no fee trades for Canadian securities. Have been using it for a year now. Love it so far 🙂
Liz C
Source: Trust Pilot

Pros and Cons of Wealthsimple Invest

Pros

  • Very Beginner Friendly
  •  Low Management Fees
  • No Minimum Deposit Required
  • Variety of Account Types
  • Super Modern User Interface
  • Free to Sign up and Deposit and Withdrawal Funds

Cons

  •  Limited Control of Your Investments
  •  Withdrawals Can Take a Few Days
  • Minimum Personalization

Pros and Cons of Wealthsimple Trade

Pros

  • No Commission Fees
  •  Investors Can Buy Fractional Shares
  •  No Minimum Balance Requirements
  • Beginner Friendly App and Desktop Platform
  •  Investors Can Trade within TFSAs and RRSPs
  • Access to the Crypto Markets

Cons

  •  Desktop Platform Can be Glitchy
  •  Deposits Can Take Up to 3 Days to Process
  •  No Margin Account Offering
  • Currency Conversion Fees
  •  Not Able to Short Stocks
  •  No RESP Account Offering

Key Takeaways and Final Thoughts

The main difference between Wealthsimple Invest and Trade is that Wealthsimple Invest is a managed portfolio investing service, so they will take care of investing for you, while Wealthsimple Trade is for investors who want to buy and sell stocks and ETFs themselves.

For this reason, Wealthsimple Invest and Trade have very different fee structures, Wealthsimple Invest charges a management fee, while Trade charges currency conversion fees. At the end of the day, that is the core difference between these two Wealthsimple platforms.

So if you’re trying to decide which account to open, ask yourself, do you want to manage your investments actively, or do you want someone to do it for you? Or maybe both? As mentioned earlier in this article, I have an Invest and Trade account open, which works for me. I have my retirement fund (RRSP) open with Invest and a TFSA open with Trade.

Regardless of which platform you go with, just know both platforms are incredibly reputable and safe to use, and I’m confident you’ll have a great experience with either of them – you just need to decide which one suits your investment needs and then jump in.

FAQs When Comparing Wealthsimple Invest and Trade

Can You Have Both a Wealthsimple Invest and Trade Account?

Absolutely. I know this because I have both an Invest and Trade account. I have an RRSP open with Wealthsimple Invest and a TFSA open with Wealthsimple Trade.

Can You Transfer Funds Between Your Invest and Trade Accounts?

Yes, you certainly can. However, some exceptions apply. For example, due to its tax implications, you can’t transfer funds from an RRSP into another Wealthsimple account. For an entire breakdown of what types of accounts you can transfer money to and from and the time it will take for the transfer to go through, check out Wealthsimple’s Help Center article here.

Can I Use The Same TFSA for Wealthsimple Invest and Trade?

No, you cannot. With that said, it is completely okay to open two TFSAs, one with Wealthsimple Invest and the other with Wealthsimple Trade, but just know they’ll be separate accounts.

Can I Open Two TFSAs within either Wealthsimple Invest or Trade?

No, you cannot. As mentioned above, you can open one with both Invest and Trade, but you cannot have more than one opened in each.

Author

  • Noel Moffatt

    Noel Moffatt is an SEO Strategist based in Newfoundland, Canada and the founder of noelmoffatt.com. As a long-time user of Wealthsimple and many other financial technologies, Noel's mission is to help simplify Canada's most popular fintech platforms to help Canadians adapt to the modern world of personal finance.

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