My Wealthsimple Review After 8 Years Of Using It!
I’m Mark, and I test out Canadian financial products to help you make better financial decisions to live happy, healthy, and wealthy lives.
This is my Wealthsimple review where you’ll get the pros and cons of their app and all their products (investing, high interest savings, crypto, and tax). I’ve been using Wealthsimple for over 8 years now!
The no-fee simple solution to finances in Canada
If you have not watched my full Wealthsimple review on YouTube, you should! Wealthsimple might just be the only solution Canadians need for everyday finance needs. These are my favourite features:
No-fee self directed investing accounts with TFSA, RRSP, and FHSA account types
High interest savings accounts & the best tax filing software in Canada!
Earn 1% cash back with all spending
$0 account fees & $0 trading fees
No foreign exchange fees (great for travelling)
Corporate / small business savings & managed investing accounts available
E-transfers, direct deposits, auto contribute cash back into your investment accounts, and bill payments all possible!
Your cash is held in trust with a CDIC member institution. Which means you have $300k of deposit insurance on your money.
There are some downsides
WS is maybe the oldest fintech companies in Canada. That’s allowed them to overcome a lot of barriers. Plus they’ve made some significant changes since my last Wealthsimple review, that have really improved the product and limited the cons.
No way to create multiple savings accounts – you only get 1 high interest savings account.
Cash account is quite limited in terms of features. No spending analysis, no savings accounts, no savings features like round ups, and you can’t even open more than 1 account, so there’s no ability to create “goals”
Remarkably complex to use – for an app that has “simple” in the name.
Trying to be the “go to” finance app for Canadians, but lacking in the spending & insights
Wealthsimple Review FAQ’s
Is Wealthsimple safe?
Using Wealthsimple and having your money with them is safe to do so. Wealthsimple Investments is Canadian Investment Regulatory Organization and their cash / save account is held securely in trust with a single or multiple members of the Canada Deposit Insurance Corporation.
However, it’s important to know that investing your money always comes with some risks, consult a professional financial advisor before investing any of your money.
How does Wealthsimple make money?
WS prides themselves on being a no fee investing alternative, but they do have to still make money. They primarily make revenue from their managed investing portfolios, by taking a management fee from all your investments. They also make money when you exchange CAD for USD in your investment accounts (1.5%).
Plus they make a bit of money from spending with the Wealthsimple cash card, and have recently launched a private equity fund which they will be making a handsome management fee on too. You can find more details on their true fees here.
How do you get $25 for free with Wealthsimple?
By using my referral code KBYLNW you will get $25 when you signup for Wealthsimple.
Wealthsimple Investing Best Features
They provide robo investing managed funds for you to invest in. They also have a new product called private equity, however I have not invested in this yet, so can’t speak to it.
Self Directed Investing
My favourite feature, the self-directed investing accounts let you open an TFSA, RRSP, FHSA, and a non registered trading accounts.
Low-Cost Index Funds
Low cost index funds like VOO, VGT, and VTI are some of the best investments you can make. Wealthsimple easily lets you buy these in all your investment accounts.
One of my favourite features with Wealthsimple is the ability to automatically re-invest your dividends, re-invest your cash back, and setup auto deposits.
Putting your money to work, on autopilot.
My Favourite Wealthsimple Feature, taxes
Wealthsimple bought the Canadian company “simple tax” a few years back. After putting their simple interface on top of simple tax’s powerful software. I believe they have now created the best tax filing software in Canada.
$0 tax filing – pay what you want with their free / by donation tax filing system.
Auto-pull your government filed docs and inputs them into your taxes with 1 click.
Optimization tips maximize your tax return with their optimization tips.
High interest savings & debit card for spending
Wealthsimple Cash (Savings & Spending)
Get a debit card and virtual card
Get 1% cashback on all your spending – auto deposit it t
$0 monthly fees
E-transfers & direct deposit available!
High interest savings account (the highest in Canada!)
CDIC protected up to $300,000
No foreign exchange fees
New to Wealthsimple – Crypto
Wealthsimple is most likely the safest way in Canada to buy cryptocurrency. They do not offer access to every sh*t coin out there. But do have a large selection. In my opinion the selection is not important as long as you can buy the top 3 coins.
Stake your ETH – you can stake your owned ETH coins and earn a dividend on it.
Auto-invest your earned ETH right back into the market to buy more crypto
2% or lower fees when you buy
Money With Mark’s Final Thoughs:
My Personal Thoughts on Wealthsimple
Investing and banking in Canada has been broken for decades. The big banks price gouge us, make billions off of the hard working backs of Canadians by sneaking fees for everything you do.
Wealthsimple started by offering a no fee investment platform. Now they’ve expanded into tax software, debit cards, high interest savings accounts, and crypto. It’s probably the most complete single fintech solution available in Canada. I not only highly recommend it, but it has become my go-to app for all my financial needs.