Questrade Vs Wealthsimple

Questrade vs Wealthsimple: Which One Is Right For Your Money?

As time goes by, people can get their hands on things more manageable than ever before. Increasingly, Canadians are turning to online investment platforms for their financial needs. During the coronavirus outbreak in early 2020, nearly half a million new online trading accounts opened each month. Many Canadian investors want to invest their funds without going through an investment advisor.

Two platforms which got a lot of attention for online investing were Questrade and Wealthsimple. Both platforms offer a personal investment account to suit your needs wherever you are in your investing journey.

Key Takeaways:

  • Questrade vs Wealthsimple comparison has to consider both the Robo-advisor and trading brokerage features.
  • Wealthsimple vs Questrade as a Robo-advisor, Wealthsimple wins.
  • Questrade vs. Wealthsimple Trade as an online discount broker; Questrade wins due to features.
  • Both offer many ways to manage your personal finances and investment accounts.
  • Both Wealthsimple and convenient platforms on desktop or mobile apps for online investing.
  • Both offer self-directed trading accounts as well as Robo Advisor services.
  • Questrade offers more account types.

Before choosing Questrade vs Wealthsimple (or any other discount broker and Robo-advisor from Canada), you should determine if you would like a passive investing strategy or actively trading. If you would like self-directed investing, using a broker is the obvious choice; where does this leave Questrade vs Wealthsimple?

It comes down to Questrade Discount Brokerage vs Wealthsimple Trade or Questrade Portfolios vs Wealthsimple Invest Robo-advisor. Read on to see the details of our comparison of the Questwealth and Wealthsimple Invest portfolios in our Robo Expert Advisor Clash and points of our comparison of Wealthsimple Trade and Questrade Brokerage in our Duel of Discount Brokers.

Wealthsimple vs Questrade Canada

The comparison of Questrade vs Wealthsimple used to be null, but now the question of Questrade vs Wealthsimple is legitimate as they offer many of the same services.

Wealthsimple was initially classified as an automated savings tool & Robo-advisor only, but they have recently expanded to offer more services such as Trade and Tax.

Questrade started as an online discount broker, the first of its kind in Canada. They have expanded to a full suite of accounts and services.

Both companies offer similar services, but Wealthsimple is the better choice because it doesn’t charge commissions. However, when choosing, you must take into account management fees.

Questrade is a brokerage offering a Robo-advisor under the name Questwealth Portfolios. It’s an automated investment service where you set up your account, choose your investments and let them do all the work for you.

Similarly, one Wealthsimple product, Wealthsimple Trade, is a digital financial platform that allows users to invest their money through ETFs, stocks, bonds, real estate, cryptocurrencies and other assets. You have complete control over your portfolio and can make changes anytime. In addition, there are no transaction costs or minimum balance requirements. Users also get free educational resources about personal finance.

To discuss a simple comparison between Questrade and Wealthsimple, we’ll look at their different services, fees, investment strategies, investment products you can trade, account options, benefits, and pros and cons. This Questrade vs Wealthsimple comparison will explore their different services, fees, investment strategies, investment products you can trade, account options, benefits, and pros and cons. Of course, this post wouldn’t be complete without our exclusive coupon codes and links to save money on both services if you open an account.

What is Wealthsimple?

Wealthsimple is a financial services company, originally a Robo-advisor, that provides customers with tools designed to help them automate their finances. All of the information needed to run your finances is available online. You can track your investments, buy and sell securities, complete your tax return, save for retirement and much more.

You can automatically connect your bank account to transfer your transactions into your Wealthsimple account.

You can also open RRSPs, TFSA and pension plans under Wealthsimple. If you’re eligible, you can contribute directly to these accounts.

There are no hidden fees when using Wealthsimple. Instead, customers pay a monthly fee plus taxes (based on the province/territory where they live).

There are no minimum balances required to start investing. For example, you only need $5 to open an account.

Wealthsimple is my pick as the best Robo-consultant in Canada, offering access to human financial advisors, a wide range of investments, automatic tax-loss collection for premium clients, and an elegant and intuitive platform. In addition, Wealthsimple is my top choice for automated investing in advisor robots and offers Canada’s only free discounted online brokerage service (Wealthsimple Trade).

Since its establishment in 2014, Wealthsimple has been the trading platform for beginners, hobbyists and experienced investors. Wealthsimple also provides many educational resources to help users learn more about investment to use features such as Wealthsimple Trade while gaining more knowledge and confidence in investment management. If you are investing for the first time and want to understand the stock market directly and straightforwardly, Wealthsimple may be a good choice.

What is Wealthsimple Trade vs Wealthsimple Invest?

Wealthsimple Trade is the online brokerage and trading platform, whereas Wealthsimple Invest is the automated Robo-advisor.

The Wealthsimple Trade platform allows users to buy and sell shares in over 100 companies. Users can use this feature to trade company stocks, exchange-traded funds, commodities, and cryptocurrencies. In addition, they often have promotions for one free stock for signing up.

Wealthsimple Invest is a Robo-adviser product that allows investors to invest in a diversified ETF portfolio. There are no direct commissions or transaction costs associated with this service, just the management fees.

Wealthsimple Invest offers several services, such as different types of accounts, including Registered Retirement Benefit Plans (RRSP), Tax-Free Savings Account (TFSA), a personal non-registered account, and more. In addition, Wealthsimple offers self-sustaining and proactive portfolio management options for investors of all classes. It’s incredibly straightforward to start a Wealthsimple Invest account.

The primary and most popular product of Wealthsimples is its Robo-advisor service. Still, Wealthsimples is also an excellent broker, providing independent investors with opportunities to invest and trade stocks in Canada.

The difference between Wealthsimple Trade is that it is the only Canadian broker that offers commission-free trading, at least for now. Wealthsimple Trade was launched in March 2019. The company decided to go beyond robotic advisory services to allow Canadians to buy and sell stocks and ETFs on major Canadian and U.S. exchanges without paying fees. In addition, Wealthsimple is the only trading platform in Canada that can trade cryptocurrency and stocks simultaneously.

How Does Wealthsimple Invest Work?

Wealthsimple Invest uses artificial intelligence to analyze the top ETFs to create personalized financial investment plans based on your risk tolerance. Your unique situation will recommend how much you should allocate to asset classes such as stocks and bonds ETFs. They create low-cost ETF portfolios with the options for socially responsible investing or Halal investments.

Wealthsimple Invest account clients do not have to worry about inactivity fees on the first launch and do not incur a commission when selling ETFs to rebalance their portfolios.

Your account manager will then monitor your progress and provide regular reports. They will also answer any questions you may have about your finances.

How Does Wealthsimple Trade Work?

A Wealthsimple Trade account is commission-free and the same as other online brokerages. The only downside is they don’t offer access to all of the same securities as some other brokers, and they have a currency conversion fee for exchanging Canadian for US funds.

As far as Wealthsimple is concerned, the products available for investment are stocks and ETFs, as well as cryptocurrencies. These include ETFs, GICs, bonds, stocks, mutual funds, initial public offerings, and other options. Depending on your level of investment comfort, investment objectives and risk tolerance, you can trade stocks (US and Canada), ETFs, mutual funds, guaranteed investment certificates (GICs), international stocks, initial public offerings (IPOs), precious metals and others. Options.

With the Wealthsimple Trade app, customers can view their entire portfolio online. In addition, they can see what’s going on with their investments at any time.

Customers can also set up alerts to let them know when certain conditions occur. For example, you could set up an alert to notify you every time your stocks or investments trade at high volume and if they increase or decrease significantly. There is a foreign exchange fee for converting currencies when purchasing international equities; this conversion fee is something Questrade doesn’t have.

Other Wealthsimple services:

Wealthsimple offers; Wealthsimple Save, Wealthsimple Invest, Wealthsimple Trade, Wealthsimple Crypto and Wealthsimple Tax. They have a full suite of personal financial software products.

Wealthsimple Save (Now Wealthsimple Cash) – A savings app that allows users to set up automatic transfers from their checking and savings accounts to their Wealthsimple accounts. The app also lets you set up recurring payments. Wealthsimple cash offers a decent interest rate of 1.5% currently.

Wealthsimple Tax – This tax preparation app allows users to file their taxes easily. You can download forms and fill out your returns online.

Pros & Cons

The pros of Wealthsimple are:

  • Free trades
  • It has a simple interface
  • It has a lot of features
  • It’s easy to use
  • No minimum balance requirement
  • The ability to invest in many assets, including stocks, bonds, ETFs, gold, real estate, etc.
  • No transaction fees or transfer fees

The cons of Wealthsimple are:

  • Limited access to certain securities
  • No direct access to a financial advisor
  • 1.5% currency conversion fee

What is Questrade?

Questrade is an online discount broker that specializes in trading Canadian securities. It was founded in 1999 by John O’Connor and David Baskin.

In 2006, Questrade acquired the brokerage firm Tradewind Financial Group Inc., established in 1997. In 2007, Questrade acquired the investment management company, Quest Investment Management Corp., established by Mr. O’Connor and Mr. Baskin in 2000.

In 2009, Questrade launched its first mobile application called “Questrade.”

Questrade features various services and is considered one of the best online brokers in Canada. Their user-friendly website provides customers with all the information needed to make informed decisions.

They offer various account types, such as margin, cash, retirement, and more.

Since then, they have increased their offering with Questwealth portfolios.

For active traders who want to save money and obtain reliable market data and research opportunities, Questrade is the undisputed winner. Headquartered in Toronto, Questrade enables Canadians to manage their investment portfolios by providing low-cost ETF transactions and low management fees. Questrade has been developing for over two decades and now operates more than $9 billion in assets. With Questrade, investors can trade almost any stock, hold U.S. dollars and use a broader range of tools to monitor their performance, analyze and research stocks and ETFs, and create account alerts and instant deposits and transactions, up to $3,500 per day.

To start trading with Questrade, you need a minimum of CAD 1,000, but you can open an account for less. After registering with Questrade, you can invest in one or more available accounts.

Questrade services:

Questrade offers many account types; TFSA trading accounts, joint cash accounts, margin accounts, Questrade Edge trading platform, RRSP accounts, mortgages, and automated investing with Questwealth Portfolios.

Questrade offers both registered and non-registered personal investment accounts and corporate investment accounts. In addition, you can choose between non-registered personal accounts or corporate non-registered accounts.

Questrade is Canada’s leading low-commission brokerage firm that allows you to buy stocks & ETFs with low commissions. Indeed a low trading fee is crucial when you are just starting and want to use your recurring fees well.

You can also buy precious metals contracts, mutual funds, and participate in options trading.

Questrade Edge:

Regardless of your trading account, you can utilize Questrade’s state-of-the-art trading platform, Questrade Edge (which works best on your PC or Mac). In addition, you can access all of your investing accounts easily within the platform.

QuestWealth Portfolios:

Questwealth Portfolios is Questrade’s answer to Robo-advisors, a mostly automated investment management service with a personal touch from a financial advisor based on your risk tolerance. Questwealth Portfolio accounts require a minimum deposit but a more personalized experience.

Questrade Fees:

The trading fee will depend on what asset class you are trading and also vary depending on the type of account you use. For example, margin trading will have higher fees than other accounts because of the interest.

One great feature of Questrade is there is no currency conversion fee, as you can hold both US and CAD funds.

Compared with other popular brokerage platforms such as Direct Investing and Scotia iTrade, Questrade’s services have always paid very low fees, with stocks trading at 1% per share. Although Questrade requires a minimum investment of $1,000 and has a higher fee than Wealthsimple Trade, its fee is still lower than many other online platforms.

Due to its advanced features (comparable to the online platforms provided by Canada’s top five banks) and low fees, Questrade remains one of Canada’s most popular online discount brokerage platforms. In addition, Questrade and Wealthsimple offer trading platforms and Robo-advisor products that Canadian investors can use to achieve their financial goals.

Types of Questrade Brokerage Accounts:

Margin Accounts:

Margin accounts allow traders to borrow against the value of their investments. You will be charged interest on the amount borrowed with a margin account. These accounts can only be used with non-registered accounts.

Margin rates start at 2% per annum for short-term loans (up to 90 days) and 3% for long-term loans (over 90 days).

Other Account Types:

Other account types include Cash accounts, Retirement Accounts, and Mortgage accounts.

These accounts do not charge fees but may require monthly maintenance fees.

Pros & Cons

The pros of Questrade are:

  • Easy to use
  • User friendly
  • Consistent performance
  • Ability to open non-registered accounts

The cons of Questrade are:

  • High fees
  • It doesn’t offer free trades

Robo-advisors vs Online brokers in Canada

Robo-advisors are different from online brokers; they help people manage their finances, and Robo-advisors provide financial advice through software programs.

Many people don’t know what a Robo advisor is, so let’s explain how it works.

A Robo advisor helps you invest your money into the markets. The Robo advisor does most of the work for you and lets you choose the right portfolio.

You can also get access to your portfolio anytime you want. You can check your balance at any time and see how much you’ve earned or lost over time.

If you decide to move your money from one advisor to another, you won’t lose anything because the Robo advisors have built-in transfer platforms. So there’s no need to worry about losing your money when you switch.

Online brokers are just like regular banks or credit unions. They sell stocks and bonds and act as middlemen between investors and the market. Online brokers don’t buy or sell anything, so there’s no risk involved.

Can I Buy Mutual Funds With Online Brokers?

You can invest in mutual funds with a financial brokerage.

Does the Canadian investor protection fund certify Questrade & Wealthsimple?

Yes, both brokers are protected by the Canadian investor protection fund. This is because both are considered a financial institution in Canada.

Why Use An Online Broker?

They can save you much time and effort compared to traditional brokers. For example, you won’t need to go to a bank every time you trade your stocks or invest your money.

A discount broker has low-cost trading commissions than traditional brokers. This means you’ll pay less when you trade.

The target customers of Wealthsimple and Questrade are interested in actively participating in their investment and transaction management, but whose functions and benefits are different. In addition, the pre-designed ETF investment portfolio also provides DIY investors with commission-free Wealthsimple Trade online brokerage services to buy and sell thousands of stocks and ETFs. In addition, their brokerage service offers free ETF purchases, low-commission stocks, options, and other products.

Wealthsimple vs Questrade: Online broker

Questrade is a better discount broker because of its access to securities, trading platforms and low-cost trading fees. Wealthsimple does have free trading but has limited access to securities.

Wealthsimple Trade offers zero commission to buy or sell ETFs, stocks, and cryptocurrencies (as part of Wealthsimple Crypto). Questrade charges a minimum commission of $4.95 per trade to sell or buy stocks and ETFs.

You can purchase many more asset classes, such as precious metals futures, with Questrade.

Questwealth vs Wealthsimple: Robo-advisor

Wealthsimple is the better Robo-advisor service as they have lower fees and purchase some of the same ETFs. Questwealth offers a more personalized approach but has higher fees. For easy automated investing, choose Wealthsimple.

Should you use both Questrade and Wealthsimple?

Yes! Both Questrade and Wealthsimple are great options. However, if you’re looking for a discount brokerage, Questrade is the best option.

If you’re looking for automated investing, Wealthsimple is the best choice.

However, Wealthsimple is Questrade’s main competitor and is regarded by most investors as Canada’s best Robo-advisor. Overview Comparative research can be complex because both financial institutions provide investors with access to some of the best investment platforms in the country.

Questrade offers a more reliable trading platform for most investors; however, you need to fund your account with at least $1000 to get started. Aside from trading fees, Questrade offers many more features that benefit DIY investors. For example, if you are convinced that the commission is less than 1% of the total commission value every time you make a trade, I think Questrade is the best broker for Canadian DIY investors.

Questrade can also be a good choice if you want to hold U.S. dollars or buy and sell U.S. stocks because you don’t have to convert Canadian dollars to U.S. dollars on every transaction.

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