Two (2) of Canada’s leading financial products are Wealthsimple and Tangerine. Both of them offer an array of products for investors and consumers alike. They may be similar in some aspects, but these investment products also have differences that may or may not be dominant over the other, but indeed makes each of them unique in their particular way. Today, we will talk about each Canadian financial brand and find out which one has the best options in terms of banking and investment goals. So fasten your financial seatbelts, and let’s get started!
Tangerine VS Wealthsimple
Now, let’s see how Wealthsimple and Tangerine Bank stack up side-by-side. Through this following comparison, we’ll show their features. Since trusting these fin-tech companies is very important to you as someone who values their finances, we hope that you’ll have a clearer perspective of things through this comparison.
Although, for the record, we can’t go comparing every single feature out there. But we can guarantee accuracy at the time of writing this article. But this comprehensive list we’ve come up with isn’t enough. You need to complete your homework by doing your research. We suggest that you visit each site of these two (2) fin-tech companies and see what they promise to offer. Now, without further ado, here’s the comparison between Wealthsimple and Tangerine:
- Account Minimum – Wealthsimple has $0 while Tangerine needs $10 to open an account, requiring $1000 for opening investment accounts.
- Fees – For amounts ranging from $0 to $100,000, Wealthsimple has a 0.5% fee and 0.4% for amounts more than $100,000. Meanwhile, Tangerine has a fixed 1.07% worth of fees.
- When talking about features like financial advice and planning, portfolio reviews, and expert advice from financial advisors, both Wealthsimple and Tangerine offer such services to their customers.
- When transferring funds from their accounts to another financial institution, Wealthsimple has no transfer fees, while Tangerine charges a fixed $45 fee for transferring.
- Wealthsimple offers Social Responsible Investing, while Tangerine does not.
- Halal Investing is available for Wealthsimple but not with Tangerine.
Wealthsimple: App Overview
Wealthsimple is a Canadian financial services company mainly focused on the process of automated investing and also investing in stocks for retailers. Their line of products consists of an array of cash and savings accounts with high interest, Robo-investing, and a commission-free platform for stock trading. Let’s briefly cover each of them.
Wealthsimple Products
Wealthsimple Invest
Simple investments could be the best way to eventually grow the money you have with you today towards a future you want: a financially stable one. This idea could mean that you are not trying anything that could beat the current market; instead, you ensure that your money grows steadily and sturdy. Learning more about this idea can help you better your finances, so if you want to learn more about this investing type, check out our post today and continue reading.
Robo-investing in Canada is a financial service that involves automated investment where, aside from signing up, you don’t have to do anything. After giving Wealthsimple Invest all of your information, like your bank account number, they do the investing of your money for you. Then, using algorithms, they decide what they think would be the best and most profitable for you and your money’s worth.
In addition, Wealthsimple provides “My Investment Planner,” a free online tool helping you see how much potentially you could earn using their unique service. They also offer chequing accounts, tax-free savings accounts, and non-registered accounts. Can I day trade in my TFSA? Yes, but you need the product we will talk about next.
Wealthsimple Trade
In the recent years that lead to today, trading stocks have significantly gained popularity. With their significant investment in advertising and free stock promo, Wealthsimple was ultimately pushed to the forefront in Canada. Wealthsimple Trade provides a free trading platform, commission-free, called Wealthsimple Trade. This feature allows users to buy and sell stocks without paying any fees. In addition, Wealthsimple gives two ways to trade stocks with them:
- First, you can create brokerage accounts that cost an amount of trading fees of $9 monthly. With this account option, you can only trade US stocks.
- Another option is to use the free platform. Although this option doesn’t need a brokerage account, it still allows you to trade US and Canadian stocks.
Wealthsimple Banking
Wealthsimple Cash
Cash accounts under the Wealthsimple brand are very similar to the standard high-interest savings account. However, these cash accounts are used explicitly for spending money. In addition to that, you can even make withdrawals of money from these Wealthsimple Cash accounts! You may also get Cash Bonus incentives.
Wealthsimple Save
What’s remarkable about this feature on savings accounts is that it allows you to start saving money based on each need for specific purposes. So, for example, if you want to begin saving for a house’s down payment, you could set aside a particular amount of money monthly and put it into a savings account.
Wealthsimple: The Good and the Not-So-Good
PROS:
- User-friendly and very easy to use for everyday banking.
- Doesn’t require any minimum deposit.
- It is free of charge – no annual management fees or any transaction fee for any transactions or ATM withdrawals.
- You can use their mobile app to manage your portfolio even on the go.
- Offers many features like harvesting lost tax, automatic rebalancing, and tools for risk management.
- They have a customer support team that’s available all the time – 24 hours a day, seven days a week.
CONS:
- For their brokerage accounts, you need to pay a monthly fee of $9.
- They have no physical branches you can go to when needed.
- Some users have experienced issues with fund transfers between accounts.
- You need to be eligible first before using their Robo-advisor feature.
- They are only available in the US and have no international coverage.
Tangerine: App Overview
Launched in 1997, Tangerine Bank was first known as ING Direct Canada, pioneered by the ING Group, based in the Netherlands. Tangerine Bank is a product that offers its users some banking services like investments, credit cards, checking accounts, mortgages, and loans.
Husband-and-wife John and Linda Rogers founded the company. John Rogers, who previously worked at Citibank, left after getting frustrated and experiencing the lack of innovation and technology the financial industry had during those times. Then, in 1998, he and his wife Linda Rogers started working and helping each other develop the idea that eventually became the Tangerine Bank we are now experiencing today. They both created this new type of bank that provided customers with a much better experience than traditional banks’ knowledge. Later, Tangerine Bank received its first round of funding in 1999. This initial funding was from the famous venture capital firm Kleiner Perkins Caufield & Byers. From then on, Tangerine Investment Fund has become a leading innovator in the Canadian financial scene and has already raised over $100 million in funding to date.
Tangerine Products
Online bank
Tangerine Bank is known to offer low-interest rates. So it was a disruptor in the industry when it launched its savings account with no fees but rates higher than those provided by the bigger traditional banks.
Investment funds and GICs
In terms of investment options, Tangerine offers GICs or Guaranteed Investments that have great rates and are guaranteed safe and secure as ways of helping you reach for your long-term financial goals. Furthermore, they offer GICs that are non-redeemable and non-registered, with rates that belong to some of the most competitive rate offers in Canada. In addition, Tangerine also offers non-redeemable GICs for those that have registered retirement savings plans, or RRSP; tax-free savings accounts, or TFSAs; and registered retirement income funds, or RRIFs.
Credit Products and Loans
Tangerine’s Lines of Credit is an intelligent way of borrowing money. They offer low variable interest rates with no annual fee and are there if you need them. You can pay off your balance at your terms and your own pace even by only making minimum payments as you go. Tangerine’s Line of Credit is a source of funds you can use with available credit when you need it. This feature provides simple online banking convenience. You can apply online in minutes, giving you easy access to your funds online, whenever you want to, and while on the go.
Tangerine: The Good and the Not-So-Good
PROS:
- They have an easy-to-use app and website available to their users.
- No hidden charges or fees.
- No minimum balance or even limits for transactions.
- Their investment plans are automated.
CONS:
- They don’t have trading accounts.
Time to Decide – Wealthsimple or Tangerine?
After everything is said about these two fin-tech companies, we can now do some decision-making. Tangerine and Wealthsimple have some essential features that are common to them. Both offer easy access to customers who need support; they have unique features that automate your contributions; they also have portfolio rebalancing and dividend reinvestment that helps keep all your investments on track and secured on safe platforms. Although, the most significant difference between the two is their fee structures and the respective investment portfolios we offer each of them. Nevertheless, each can significantly help you with any financial burden, especially in terms of savings and investments. Now, it’s time to experience everything for yourself. Try one first and if it doesn’t suit your financial needs, try the other one. You’ll find the best assistance you’ll need for your finances in no time.
Wealthsimple VS Tangerine
When asked which of these four platforms should you recommend to your friends and family, the answer is Wealthsimple Investing Robo. If you sign up today for free, the easiest way to turn a part of your paycheck into a diversified portfolio within a month is to sign up for $10,000. Suppose you choose between Questrade, Wealthsimple or other discount brokers and robot advisers from Canada. In that case, you need to decide whether the DIY Discount Broker model is more of a practical model for your style. To make this decision, you can compare apples with apples to Questrade as a discount brokerage and Wealthsimple as a fully traded Questrade portfolio or Wealth simple as an investment-by-Robo advisor. For additional comparison options, I recommend our article QTrade vs Wealthsimple.
Anyone looking for the best Robo-adviser in Canada should look at Wealthsimple. Wealthsimple is the leading Robo-adviser in Canada, with over 175,000 clients and more than $5 billion in assets under management (AUM).
Robo-advisors have gained popularity in recent years in Canada and the US because of their effective system of investing in low-income exchange-traded funds (ETFs). In addition to its passive Robo-adviser offerings, Tangerine also offers private investment portfolios. Like Wealthsimple, it has ethical funds and cleantech that can be added to your portfolio.
Tangerine Bank is well known for having one of Canada’s best high-interest savings accounts and offers Tangerine index funds. This is the easiest way to invest and minimize the fees you pay. Tangerine investment funds are expensive compared to Robo-advisers or ETFs, but I think they are a great product.
The Tangerine Global ETF portfolio is not as good as investing through a Robo-adviser such as Wealthsimple or managing your ETF portfolio through a brokerage such as Questrade. Nonetheless, it is still a solid investment product, a step up from tangerine funds. Read on to find out if Tangerine’s investment fund suits you.
Tangerine also offers a good cashback credit card and a tremendous fee-free checking account. While Tangerine’s investment funds have some appeal, a Tangerine Chequing and Savings account are for holders who prefer to keep everything under one roof.
Tangerines Global ETF Portfolio has three different investment funds in exchange-traded funds (ETFs) that allow you to diversify your investments over a range of stocks and bonds. If you want more control over your investments and a discount brokerage is the way to go for lower fees, you can recommend the TD monthly income fund performance or TD E-Series Index Fund Solutions ETF portfolio on Questrade vs Wealthsimple.
It is unusual for Tangerine to brand mutual funds as ETF portfolios. However, the company has been offering investment funds since its inception, and it is a bank in Canada, so no surprise.
While typical Robo-advisers such as Wealth Simple and Justwealth use ETFs as investment vehicles, Tangerine is a State Street investment fund manager who buys individual companies and bonds and manages a portfolio. For example, to gauge the growth potential of the US stock market, the Tangerines portfolio holds 500 US companies in the S & P 500 index, the most popular and widely deployed on the market.
Tangerine Investment Fund and Wealthsimple Invest have some critical things in common. These features allow customer service functions that automate your contributions, portfolio balancing and dividend reinvestment to keep your investments on track. In addition, the four core Tangerine investment portfolios combine the broad market of US, Canadian and international equities.
The difference between Tangerine and Wealthsimple is that. Wealthsimple offers various portfolios, including Halal and Responsible Investing, while Tangerine creates portfolios with in-house index funds. For example, Mandarin Portfolio is designed using in-house index funds that attempt to replicate the index.
They take the wind out of the investment process using proprietary algorithms and computer software to determine investors’ investment profile, risk tolerance, investment certainty, investment horizon, financial goals, age and wealth. In addition, Wealthsimple Invest is committed to saving customers money by enabling them to invest in a variety of low-cost exchange-traded funds (ETFs). Wealthsimple uses technology to invest its capital in a diversified portfolio of low-cost ETFs, a model based on the modern portfolio theory of Nobel laureate Harry Markowitz.
When Tangerine launched its Streetwise family of investment options in 2008, it secured a place in the hearts of passive investing advocates. Of course, many people quickly point out that several Robo-advisers offer more responsible investment options (see our guide for details). Unfortunately, Tangerine does not provide any of these. Nevertheless, if you love the company for its excellent checking accounts and high-interest savings accounts, it’s worth pursuing its investment options in the name of simplicity.
Tangerine, for example, charges $125 if you transfer your registered investment account to another institution and $50 if you transfer your TFSA, RIF or RRSP to another provider. You can also buy funds in a TD branch, but additional paperwork is required if you hold funds in many discount brokerage accounts (more on this later in the day). On the other hand, the portfolios of the E-Series TDs are fully loaded, meaning there are no fees when you buy.
For new investors with less than $5,000 and who want the lowest investment options available, Tangerine offers zero-fee mutual funds on unconditional ETFs (here’s a Globe and Mail article on the best options that will save you more than $5,000 ). It is not a brokerage and does not offer a trading app for selling and buying shares but is considered an alternative to opening a brokerage account. It is the most recommended option for Canadian couch potatoes, and option one is often described as the easiest way to start index investing.
Wealthsimple Questwealth Portfolio CI Direct Investment Welcome Offer 75% Bonus $500 Minimum deposit No $10K Managed free per year Management fees: 0.4%-0.25% per year 0.35%-0.06% / year Apply under our link if you open a fund in a new Wealthsimple Investing account, there is a minimum deposit of $5.00. Wealthsimple will link your bank account, and you can deposit anything you feel comfortable with into your Wealthsimple investment account, which you can then conveniently deposit into your portfolio.
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