Wealthsimple Review January 2024 (For Canadians Only)

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What is Wealthsimple? 

In short, Wealthsimple is a Canadian-founded financial tech company that offers many financial products:

1. Robo advisor (Wealthsimple Invest – You’re reading the review now)
2. Self-directed investment platform (Wealtshimple Trade – Read Review Here)
3. Crypto platform (Wealthsimple Crypto – Read Review Here)
4. Online tax-filing software (Wealthsimple Tax – Read Review Here)
5. Pre-paid cash card (Wealtshimple Cash – Read Review Here)

At the end of this article, I outline summary reviews of Trade, Crypto, Tax, and Cash, but for the purpose of this in-depth analysis, we are going to focus on Wealthsimple’s founding product back in 2014, its robo advisor – Wealtshimple Invest.

As a long-time user of Wealthsimple since early 2018 (when I transferred my Scotiabank TFSA to Wealthsimple), I can attest to it being an amazing platform, which will be covered throughout this article.

Because let’s just be honest, investing can feel like an alien universe riddled with jargon and complex mechanisms when you first start. And because of this, it’s not uncommon for potential investors to feel daunted and turn away from it altogether.

But this is exactly where Wealthsimple comes into the picture.

So let’s get into it.

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Wealthsimple Invest Review | Comprehensive Analysis

As a Wealthsimple investor since early 2018 (February), it was the only product offered at the time, so I’ve seen the company and products grow and innovate in real-time.

In this upcoming section, I’ll break down my rating and dive into specific factors that clarify why Wealthsimple Invest has earned me such a solid 4.5/5 score.

1. Fees (4.5/5)

2. Usability (5/5)

3. Account Types (5/5)

4. Cool Features (4.5/5)

5. Mobile App (4.5/5)

6. Portfolio Performance Options (5/5)

Wealthsimple also offers Halal and SRI (Socially Responsible Investing) portfolio types. Each portfolio type, including Halal^[7] and SRI^[8], further encompasses conservative, balanced, and growth portfolios, resulting in a total of nine portfolio options.

These additional portfolio types allow investors to align their investment choices with their ethical and religious considerations, further enhancing the flexibility and inclusiveness of Wealthsimple’s offerings.

Below are the asset allocations for classic portfolio types:

Growth

Asset Class	Allocation
Global equities	10.00%
Emerging market equities	14.00%
Gold	2.50%
International equities	20.00%
U.S. equities	26.00%
Canadian equities	10.00%
Canadian short-term bonds	1.00%
Government bonds	16.50%

Balanced

Asset Class	Allocation
Global equities	10.00%
Emerging market equities	8.70%
Gold	3.75%
International equities	10.50%
U.S. equities	14.62%
Canadian equities	6.18%
Canadian short-term bonds	9.00%
Government bonds	26.00%
Canadian aggregate bonds	11.25%

Conservative

Asset Class	Allocation
Global equities	10.00%
Emerging market equities	6.09%
Gold	2.50%
International equities	5.80%
U.S. equities	8.88%
Canadian equities	4.23%
Canadian short-term bonds	8.00%
Government bonds	17.00%
Canadian aggregate bonds	37.50%

7. Security and Credibility (5/5)

8. Higher Tier Plans (4/5)

Core	Premium	Generation
> $1 in assets	> $100,000 in assets	> $500,000 in assets
Benefits	Benefits	Benefits
Trade stocks with no commission fees	Core Plan Benefits Plus…	Premium Plan Benefits Plus…
Management fee of 0.5% on all managed accounts	Only 0.4% on all managed investment accounts	Comes with a management fee ranging from 0.2% to 0.4%.
Receive instant deposits of up to $50,000	Goal setting with an advisor	Team of advisors who are committed to helping you
Assistance from a live customer support representative	Earn 4% interest on your cash balance	Can earn a 4.5% interest rate.
	USD accounts available	Custom portfolios for clients.
		Customized asset location

9. Customer Support (4/5)

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Wealthsimple Invest Fees

Wealthsimple Invest’s main appeal, in my opinion, is its simplicity.

Yet, like any financial institution, Wealthsimple generates revenue, and they do this through a fee structure applied to their client’s portfolios.

Understanding these fees is crucial to make informed decisions about your investments. So let’s break down Wealthsimple Invest’s fees in a digestible way.

Fee Structure

Wealthsimple Invest’s fees depend on how much you have invested on the platform. The service provides three tiers:

1. Core
2. Premium
3. Generation

Here’s the breakdown of the annual management fees for each tier:

Plan	Total Invested	Management Fee
Core	$1 onwards	0.5%
Premium	$100,000	0.4%
Generation	$500,000	0.2% – 0.4%

The annual fees are charged on a monthly basis.

How it Works

Let’s illustrate this with an example. If you have invested $50,000, you fall into the ‘Core’ tier, and your fees would be calculated as follows:

• $50,000 x 0.5% = $250

So, you’d pay a $250 management fee over a year, equating to approximately $20.83 each month.

For the ‘Premium’ tier, with an investment of, say, $150,000, the fee calculation is as follows:

• $150,000 x 0.4% = $600

This implies an annual fee of $600 or around $50 monthly.

For the ‘Generation’ tier, let’s consider a $1,000,000 investment with a management fee of 0.3%. The fees would be:

• $1,000,000 x 0.3% = $3,000

In this case, you’d pay an annual fee of $3,000 or $250 monthly.

These fees are automatically deducted from your account balance.

Viewing your Fees on Wealthsimple Invest

To view your Wealthsimple Invest fees, navigate to your account’s “Activity” section.

Here, you’ll find a row titled “Fees and Reimbursements”. This section will detail all charges associated with your account, providing a transparent overview of the costs of managing your portfolio.

So as you can see, Wealthsimple Invest’s fees are fairly straightforward, with a tiered approach based on your total invested amount.

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Who Should Use Wealthsimple Invest?

If you’re still unsure whether Wealthsimple Invest is the right investment platform for you, consider my section below on who I think Wealthsimple Invest is best and worst suited for.

You Should Use Wealthsimple Invest if…

Wealthsimple Invest Might Not be For You if…

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My Experience with Wealthsimple Invest

Over the last 5-6 years, I’ve tested, experimented and used dozens and dozens of fintech platforms. And with all the different products I review, I think Wealthsimple Invest is probably the one I can speak on most confidently.

Not only did I first sign up for an account with them back in 2018, but I’ve continued to have my money invested with them for the last 5+ years.

I know every little thing you can know about the platform – not because I’ve tested it for a month or two, but because I’ve really used the product and watched my wealth grow with them over time AND witnessed how the software (and the company) has innovated and advanced every year.

So it shouldn’t surprise you when I say I’ve had a fantastic experience with Wealthsimple Invest so far over the last half-decade.

With everything I discussed above about Wealthsimpe, the thing I like the most about the platform is its user-friendliness for beginners, its lack of high fees, and lastly, it’s its transparency from a company and an investment perspective.

When you speak with customer support, you don’t feel like you are being sold to or viewed as a “prospect”. They just try to help you solve your problem as quickly as possible, and from my experience, they are always super pleasant and helpful.

And lastly, as someone who likes things to be easy, I love how Wealthsimple just makes everything so simple – from the signup process to connecting your bank account to investing and viewing your returns, it’s really SO much easier and quicker than setting up and managing a TFSA with say a Scotiabank or RBC.

So at the end of the day, I give Wealthsimple Invest a glowing review and a 4.5/5 star rating for everything mentioned above. If you’re on the fence about signing up, I would say there is no harm (or cost) in signing up.

If it works for you, then great.

If not, it takes 1 minute (and no money) to delete your account and move on – but hey, at least then, you’ll know one way or another.

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How To Sign Up For A Wealthsimple Invest Account

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Wealthsimple Trade Review

Wealthsimple Trade is Wealthsimple’s self-directed investment platform. In other words, if you wanted to buy or sell individual stocks or ETFs, such as Tesla or Apple, you would open a Wealthsimple Trade account.

Wealthsimple Trade puts all the control in the hands of the investor, whereas with Wealthsimple Invest, you just set your risk level, and then Wealthsimple does the rest.

Check out my article Wealthsimple Invest Vs Trade 2023 | Which Is Right For You? for a full breakdown and comparison of the two Wealthsimple products.

Below is my summary review of Wealthsimple Trade – for my full, in-depth analysis, check out my article Wealthsimple Trade Review 2023: Pros, Features And Fees

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Wealthsimple Crypto Review

Wealthsimple Crypto is a solid platform for any Canadian new to cryptocurrency investing, offering a user-friendly interface and easy access to mainstream cryptocurrencies.

This platform is a good fit for beginners and those preferring a secure, regulated environment for crypto trading.

Not only that, but the platform has been super proactive in adding new features as the years go on – and for those prioritizing simplicity and security over complex crypto tools, Wealthsimple Crypto would be a great fit for you.

Check out my article here for my full review of Wealthsimple Crypto. But for my summary review, you can read the section below.

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Wealthsimple Tax Review

Wealthsimple Tax is a game-changer for Canadians looking for a simple, cost-effective solution to file taxes online.

In my personal experience, it’s been refreshingly straightforward to use.

The platform takes full advantage of advanced algorithms to ensure that you’re not leaving money on the table, and it works diligently to maximize your tax refunds and find every eligible credit and deduction.

One aspect of Wealthsimple Tax I truly appreciate is the error-catching feature. So before you hit that daunting ‘submit’ button, Wealthsimple Tax has your back and scans for errors or inconsistencies.

In other words, it helps keep those anxiety-inducing audit fears at bay.

And here’s where it gets really interesting. Wealthsimple Tax integrates smoothly with your Wealthsimple Crypto wallet if you have one and pulls in the necessary data automatically, which is super convenient considering the often confusing tax implications that the world of crypto brought along with it.

With all that being said, though, Wealthsimple Tax may not be everyone’s cup of tea. If you’re old school and prefer face-to-face interactions with a tax professional, or your tax situation is extremely complex, you might want to explore other options.

But, if simplicity, accuracy, and cost-effectiveness rank high on your list, Wealthsimple Tax should be a solid contender for you.

For more of my insights, check out my full review here. It’s a thorough, personal walkthrough of my experience with Wealthsimple Tax.

But if you only have a minute, I briefly summarize my full review below.

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Wealthsimple Cash Review

Wealthsimple Cash is a real asset for those seeking a smart way to manage their daily expenses. From personal experience, I’ve found this platform awesome to use.

With Wealthsimple Cash, you get to tap into the power of modern banking technologies and manage your everyday spending through a prepaid credit card that earns you cash rewards.

Sounds good, doesn’t it?

Another benefit, and one close to my heart, is its potential to curb overspending and credit card debt, as pre-paid credit cards are basically just like spending on a debit card, as you have to upload the money to the card before spending on it, so it’s your own money your spending, but you now get some great rewards for spending, unlike a traditional debit card.

Also, if you’re like me and already use other Wealthsimple platforms like Invest, Trade, or Crypto, integrating Wealthsimple Cash can help streamline your entire financial life.

However, in saying alll this, Wealthsimple Cash might not tick all the boxes for everyone.

For example, you may be disappointed if you’re chasing high-tier rewards like those from AMEX. Or if you prefer interacting face-to-face with a bank teller as opposed to over a live chat or email, you also may be disappointed.

Also, remember that while using a Wealthsimple Cash card won’t dent your credit score anyway, it won’t boost it either.

Finally, in the spirit of full disclosure, I’ve noticed a few bugs since Wealthsimple Cash’s app merged with the Invest, Trade, and Crypto app in 2022. But, honestly, it’s a minor gripe against the convenience and simplicity of having everything under one digital roof.

All things considered, I give Wealthsimple Cash a 4.5/5.

Despite a few hiccups, it’s a platform I use daily, and I plan to continue doing so.

Curious to know more? Then check out my in-depth analysis here as it’s packed with my personal experiences and insights into Wealthsimple Cash.

But again, if you’re short on time, keep reading for a brief summary of my full review.

Summary

Platform	Key Takeaways	Pros	Cons	Rating
Wealthsimple Trade	– User-Friendly – Mobile App – Fractional Shares	– No Commission Fees – Fractional Shares Available – No Minimum Balance Required	– No Margin Accounts – Currency Conversion Fees – Deposits Can Take Up to 3 Days to Process	4.5/5
Wealthsimple Crypto	– Beginner Friendly – Crypto Wallets – Great Coin Selection	– Limited Platform Fees – $0 Minimum Balance – Access to Crypto Wallets	– Wallet Transfers Not Supported by All Coins – Only Supported In Canada – Funding Restricted to CAD	4.5/5
Wealthsimple Tax	– Pay-What-You-Want – Cool Features – Safe and Secure	– Pay-What-You-Want Pricing – NETFILE Certified Tax Software – Fast Refunds	– No Expert Review Option – Limited Customer Support – Requires Basic Tax Literacy	4.5/5
Wealthsimple Cash	– Cash Back Rewards – Innovative Feature – Good for Budgeting	– 1% Cash Back on Spending – Instant Deposits – Round-up Spending Feature	– 2.5% Fee for Instant Withdrawals – Daily Spending and ATM Limits – Not All Merchants Accept Prepaid Cards	4.5/5

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My Final Verdict

So there you have it – a deep dive into Wealthsimple Invest.

For the reasons stated throughout this article, if you’re a Canadian looking to start investing but are unsure where to start, Wealthsimple Invest would be a great option for you.

Or, even if you’re already investing your money somewhere but want an easier, more transparent (and modern) way to manage your investments, Wealthsimple Invest is, without a doubt, a platform you should at least take for a test drive.

With all of that said, though, it is worth noting the importance of conducting your own due diligence before making any investment decisions.

While this review provides an in-depth look at Wealthsimple Invest’s features, benefits and drawbacks, every investor’s needs are unique, so it’s always important to assess your financial goals, risk tolerance, and investment horizon before diving in.

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FAQs about Wealthsimple