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, there was an increase of 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 were Questrade and Wealthsimple.
Questrade vs Wealthsimple
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.
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.
Both companies offer similar services, but Wealthsimple is the better choice because it doesn’t charge commissions.
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 at any time. In addition, there are no transaction costs or minimum balance requirements. Users also get free educational resources about personal finance.
What is Wealthsimple?
Wealthsimple is a Robo-advisor that provides customers with a suite of tools designed to help them automate their finances. All of the information needed to run your finances is available online. You can track your spending budget, save for retirement and much more.
You can connect your bank accounts and credit cards to transfer your transactions into your Wealthsimple account automatically.
You can also link your RRSPs, TFSA and pension plans. If you’re eligible, you can contribute directly to these accounts.
There are no hidden fees when using Wealthsimple. Instead, customers pay a flat 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.
How Does Wealthsimple Work?
Wealthsimple uses artificial intelligence to analyze your spending habits and create a personalized financial plan. Your unique situation will recommend how much you should allocate to different asset classes such as stocks, bonds, cash, and cryptocurrency.
Your account manager will then monitor your progress and provide regular reports. They will also answer any questions you may have about your finances.
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 so that you’re notified every time your net worth drops below a
Wealthsimple offers; Wealthsimple Save, Wealthsimple Invest, Wealthsimple Trade, and Wealthsimple Tax. They have a full suite of personal financial software products.
Wealthsimple Save – It’s 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 Invest – It’s a Robo-adviser that allows investors to invest in a diversified portfolio of ETFs. There are no commissions or transaction costs associated with this service.
Wealthsimple Trade – This tool allows users to buy and sell shares in over 100 companies. Users can use this feature to trade stocks, exchange-traded funds, commodities, and cryptocurrencies.
Wealthsimple Tax – This is a tax preparation app that allows users to file their taxes easily. You can download forms and fill out your returns online.
Pros & Cons
The pros of Wealthsimple are:
- 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
The cons of Wealthsimple are:
- Limited access to certain securities
What is Questrade?
Questrade is an online 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 website is user-friendly and provides customers with all the information needed to make informed decisions.
They offer many different types of accounts, such as margin accounts, cash accounts, retirement accounts, and more.
Questrade offers TFSA trading accounts, margin accounts, Questrade Edge trading platform, RRSP accounts, mortgages, automated investing with Questwealth Portfolios.
Regardless of the trading account you open, you can utilize Questrade’s state of the art trading platform, Questrade Edge (which works best on your PC or Mac)
Questwealth Portfolios is Questrade’s answer to Robo-advisors, a mostly automated investment management service with a personal touch from an advisor.
Fees vary depending on the type of account. For example, margin accounts have higher fees compared to other 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.
Margin rates start at 2% per annum for short-term loans (up to 90 days) and 3% per annum 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 they may require monthly maintenance fees.
Pros & Cons
The pros of Questrade are:
- Easy to use
- User friendly
- Consistent performance
The cons of Questrade are:
- High fees
- It doesn’t offer free trades
Robo-advisors vs online brokers
Robo-advisors are different from online brokers; they help people manage their finances. 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 enables you to 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 Robo 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.
Why Use An Online Broker?
An online broker can save you time and effort. For example, you won’t need to go to a bank every time you trade your stocks or invest your money.
An online broker has lower fees than traditional brokers. This means you’ll pay less when you trade.
Questrade vs Wealthsimple: Online broker
Questrade is a better online broker because of its access to securities, trading platforms and low-cost trades. Wealthsimple does have free trading but has limited access to securities.
Questwealth vs Wealthsimple: Robo-advisor
Wealthsimple is the better Robo-advisor as they have lower fees and purchase some of the same ETFs. Questwealth offers a more personalized approach but has higher fees along with it. 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 an online broker, Questrade is the best option.
If you’re looking for a Robo-advisor, Wealthsimple is the best choice.
Questrade Vs Wealthsimple Canada
Before choosing Questrade or Wealthsimple (or any other discount broker and Robo-advisor from Canada), you should first determine if the DIY discount broker model or a more practical model is suitable for you. Comes 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.
To discuss a simple review comparison between Questrade and Wealthsimple, we’ll take a look at the different services they offer, their fees, investment strategies, investment products you can trade, account options, benefits, and their 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 their 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.
Wealthsimple is my pick as the best robotics 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).
For active traders who want to save money and obtain reliable market data and research opportunities, Questrade is an undisputed online broker. Headquartered in Toronto, Questrade enables Canadians to manage their investment portfolios by providing low-cost ETF transactions and commission-free purchases. Questrade has been in development for more than 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, create account alerts and instant deposits and transactions, up to $3,500 per day.
Wealthsimple Trade offers zero commission (buy/sell) trading for ETFs, stocks, and cryptocurrencies (as part of Wealthsimple Crypto). Questrade charges a minimum commission of $ 4.95 per trade to sell ETFs and buy or sell stocks.
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.
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.
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 to 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 and low commission stocks, options and other products.
The primary and most popular product of Wealthsimples is its Robo-advisor service. Still, Wealthsimples is also an excellent online 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 any fees. In addition, Wealthsimple is the only trading platform in Canada that can trade cryptocurrency and stocks simultaneously.
However, Wealthsimple is Questrade’s main competitor and is regarded by most investors as Canada’s best Robo-advisor. Overview Comparative research and simple wealth can be complex because both financial institutions provide Canadian investors with access to some of the best investment platforms in the country. I use these two services. My comparison between Wealthsimple and Questrade shows that both financial institutions provide Canadian investors with access to some of the best investment platforms in the country.
Since its establishment in 2014, Wealthsimple has been the trading platform of choice 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 for you.
Wealthsimple offers several services, such as different types of accounts, including Registered Retirement Benefit Plans (RRSP), Tax-Free Savings Account (TFSA), unregistered accounts, and more. In addition, Wealthsimple offers self-sustaining and proactive portfolio management options for investors of all classes.
As far as Wealthsimple is concerned, the products available for investment are stocks and ETFs. 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 (U.S. and Canada), ETFs, mutual funds, guaranteed investment certificates (GICs), international stocks, initial public offerings (IPOs), precious metals and others. Options.
Overall, 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.
Questrade is Canada’s leading low-commission brokerage firm that allows you to buy ETFs without commission. Indeed free trading fees are a crucial benefit when you are just starting and want to make good use of your recurring fees. Wealthsimple Trade clients do not have to worry about inactivity fees on the first launch and do not have to incur commission when selling ETFs to rebalance their portfolios.
Questrade Wealthsimple Trade offers a Robo Investing portfolio option Yes, via Questrade wallets Yes, via Wealthsimple Invest USD accounts Users can store U.S. and Canadian currencies in registered accounts such as RRSP and TFSA Not available Live Market Data Yes No, I Wealthsimple Data Trades are delayed by about 15 minutes Internet and mobile access Yes Yes Investment and research tools Yes.