Does Wealthsimple Have Fees?

Questions & AnswersCategory: WealthSimpleDoes Wealthsimple Have Fees?
Nico asked 2 years ago
Does Wealthsimple have fees?

1 Answers
Francesca Staff answered 2 years ago

The first and only commission-free trading platform in Canada is Wealthsimple Trade. Using Wealthsimple Crypto, customers may create a free non-registered (taxable) account and buy and sell stocks, ETFs and cryptocurrencies without paying any commission fees.

You do not have to pay any fees, minimums, or paperwork to get started with this trading platform. Fee-conscious investors with just modest trading requirements should use it.

How Much Does It Cost to Open a Wealthsimple Account?

When trading US stocks or ETFs in Wealthsimple Trade, a Wealthsimple account costs money, whereas Wealthsimple Invest automatically charges a 0.5 percent annual management fee. There is no inactivity fee for Wealthsimple accounts.

Trading and investing are two of the most important features of the two basic Wealthsimple products. Traders may use Wealthsimple Trade to buy and sell EFTs and stocks independently.

As an alternative to this, Wealthsimple offers a portfolio in which Wealthsimple will invest money in various assets in return for a fee.

On withdrawals, Canadian stock and ETF trades, and deposits, Wealthsimple charges no fees. Wealthsimple Trade charges a 1.50 percent fee to trade US EFTs and stocks. The ETFs inside Wealthsimple Invest charges an annual cost of 0.2 percent and a 0.5 percent management fee.

Wealthsimple Invest bills a management fee of around 0.7 percent of each client’s portfolio value. This equates to a yearly cost of $7, or $0.58 per month, on an investment of $1,000. An economical S&P 500 index fund costs less than a tenth of a percent of the S&P 500 average annual expense ratio.

The kind of account you establish and whether you live in Canada or the United Kingdom will influence which entity you use for commissions and fees at Wealthsimple.

There are no fees associated with self-directed trading. You will be paid a management fee and an annual percentage rate of your account balance if you utilize Wealthsimple Invest — a robo-advisor. Depending on the size of your account, the amount might change.

RESP, RESP, RRSP, TFSA, and RRIF, Wealthsimple Canada provides five types of retirement and other tax-efficient accounts (LIRA).

Residents of Canada can sign up for a Wealthsimple Plus membership. Snap, US dollar holdings, and rapid transfers up to $5,000 are all included in the $10 monthly charge (instead of $1,500 for the basic account).

Are the Fees Charged by Wealthsimple Worth It?

When trading EFTsand Canadian stocks, Wealthsimple’s $0 costs are worth it. 1.50 percent charge on US stock and ETF trades may come off as expensive compared to $9 on other platforms, especially when trading more than $500.

The 0.5 percent management charge for Wealthsimple Invest is less expensive than other mutual funds.

Fees for Wealthsimple Tax-Free Savings Account Holders

For Canadian assets, there are no costs, whereas, for US assets, there is a 1.5% fee. However, the annual maintenance cost for Wealthsimple’s TFSA account is just 0.5 percent. You can withdraw funds at any time from both Wealthsimple tax-free savings accounts.

Fees for Electronic Funds Transfer System Offered by Wealthsimple

Wealthsimple Trade account charges a 1.5 percent fee for electronic funds transfer system trades, but there aren’t any costs for the Canadian electronic funds transfer system. In addition, some ETFs have annual fees ranging to 0.80 percent, depending on the ETF. Wealthsimple Trade bills an average of 0.20 percent for its ETFs.

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