Questrade vs. Wealthsimple (Review Comparison) – Things Your Should Know

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A review Comparison on questrade vs. wealthsimple, may a difficult one as the two financial institutions both offer Canadian investors access to some of the best investment platforms in the country. Both of them also help to save on fees.

 

Now let’s get a quick review Comparison of the two financial institutions to let you in on some of the advantages one has over the other. Wealthsimple is the top choice if you are in need of automated Robo-advisor investing and it offers the only commission-free online discount brokerage service in Canada.

Questrade is the best choice if you are in search of online brokerage for active traders who want to save on fees while getting access to robust market data and research capabilities. Questrade now offers its own highly competitive Robo-advisor service in the form of Questwealth Portfolios.

 

Questrade vs. Wealthsimple

 

To discuss the simple review comparison that is of Questrade vs. Wealthsimple, we will explore the various services they offer, their fees, investment strategies, investment products you can trade, account options, perks, and their pros and cons. Using the following points below;

  • What is wealthsimple
  • What is Questrade
  • Questrade vs. Wealthsimple

 

What is Wealthsimple?

 

Before we go into comparing questrase vs. wealthsimple we ought to know what these two Platforms are and what they do. In this part of the article, we are going to be briefing explaining to you what wealthsimple is.

Wealthsimple is Canada’s most popular online wealth management service aka robo-advisor. Founded in 2014, the company now manages more than $10 billion in assets and also operates in the United Kingdom. Wealthsimple’s managed investment portfolios utilize a passive strategy that is designed to follow Nobel Prize-winning research.

The low-cost ETF portfolios utilized by Wealthsimple are built to cater to investors with varying risk tolerances. So, whether you want a conservative, balanced, growth, or aggressive portfolio, there’s something for everyone. And, it is hassle-free. Simply set it up and they take care of the rest, year after year.

In addition to their pre-designed ETF portfolios, they also offer DIY investors a commission-free online brokerage, Wealthsimple Trade, where you can buy and sell thousands of stocks and ETFs.

More recently, Wealthsimple introduced their Wealthsimple Cash service, a free hybrid account that offers saving and chequing account features that are a pretty rare combination in Canada. The company offers many other account options and perks that will be discussed below and you can find out more in this guide to Wealthsimple.

 

What is Questrade

 

Now that we know what wealthsimple is, we are now going to be giving a brief explanation of what questrade is, before we can go ahead into a review comparison of the two financial institutions.

Questrade has been around for over 20 years and introduced the concept of low-cost trading commissions for everyday investors in Canada. With more than $25 billion in assets under management and 200,000+ new trading accounts every year, Questrade is considered to be the fastest-growing independent brokerage in the country.

Their brokerage service offers access to free ETF purchases and low commissions on stocks, options, and other products. Questrade recently introduced its robo-advisor service, Questwealth Portfolios, which has one of the lowest management fees among the robo-advisors we have reviewed. Questwealth utilizes an active management style. You can learn more about the company in this detailed Questrade review.

 

Questrade vs. Wealthsimple – Detailed Review 

 

We are now going to look into a brief review comparison of both questrade and wealthsimple, using a few key features of the two financial institutions, at the same time comparing Questrade vs. wealthsimple using these features.

 

  1. Trading Fees

Wealthsimple Trade has no fees for buying and selling stocks and ETFs. That’s right, $0, and a first in Canada. One exception to this is when you make a USD trade, you pay a 1.50% currency conversion fee (exchange rate fees are typical for brokerages).

Questrade charges a $4.95 minimum fee per trade to sell ETFs and buy or sell stocks. You pay $19.95 USD for precious metals and $9.95 + $1 for options. ECN fees apply to some trades. Purchasing ETFs is free.

 

  1. Investment Products

Questrade offers popular investment products including ETFs, stocks, GICs, mutual funds, options, initial public offerings, and bonds.

As for Wealthsimple Trade, the only products available are stocks and ETFs. While there are thousands of these assets on the Wealthsimple Trade app, not all Canadian and U.S. stocks and ETFs are listed.

 

  1. Account Options

Both Wealthsimple Trade and Questrade offer the three most popular investment accounts i.e. personal non-registered accounts, RRSP, and TFSAs.

Questrade also offers trading in RESPs, LIRA, LIF, RRIF, corporate investment, and margin accounts.

 

  1. Minimum Investment

You can start trading on your Wealthsimple Trade account with $100. Actually, they do not have a minimum account balance requirement, and you can technically open an account with $1.

For a Questrade trading account, you need a minimum balance of $1,000 to start trading.

 

  1. Trading Platform

Wealthsimple’s Trade app has racked up a 4.6/5 rating on the App Store from 18,600+ reviews. Simply put, it has a clean interface and is very easy to navigate for beginners.

Their trading platform is also available on desktop, although, it is totally separate from the Wealthsimple Invest account i.e. their robo-advisor service.

Questrade offers a web app (IQ Web) that functions across all devices, a mobile app, and IQ Edge which is a desktop downloadable software.

Questrade’s mobile app is not as positively rated as Wealthsimple’s, however, their web platform is excellent.

 

  1. Market Data

A basic Questrade account comes with free access to snap quotes. Snap quotes are real-time data that need to be refreshed to update it. Clients can pay $19.95 to $89.95 per month for access to their streaming real-time data.

Wealthsimple Trade offers free stocks and ETF price data with a 15-minute delay. You can upgrade your account to premium (costs $3 per month) and get access to snap quotes and up to $1,000 instant deposits.

 

  1. Are They Safe?

Trading accounts with Questrade and Wealthsimple Trade are protected against insolvency through the Canadian Investor Protection Fund (CIPF).

 

  1. Other Features

Questrade allows you to trade U.S.-listed stocks and ETFs without the need to convert from USD to CAD. This can lead to significant savings in currency conversion fees.

Wealthsimple Trade now offers fractional shares and you can easily buy portions of expensive stocks like Google, Amazon, Tesla, Shopify, Microsoft, Facebook, and more.

 

  1. Promotions

Questrade will give you a $50 credit in free trades when you sign up for a new account or enter the promo code SAVVY50 during signup. To be eligible, you must deposit at least $1,000 in your account.

Wealthsimple Trade offers a $50 sign-up bonus when you open a new account (no promo code required with the link) and deposit and trade at least $150 in stocks.

In summary, investors who are new to trading stocks and ETFs on their own would enjoy the clean, intuitive interface offered by the Wealthsimple Trade phone app.

You can simply look up a stock or ETF symbol, buy or sell it, and be done. There are no trading commissions unless you are converting CAD to USD and you can start trading with as little as $150.

Questrade has a more versatile platform. Active self-directed traders can pay to access in-depth streaming market data and research, and they have a lot more investment products and accounts to choose from.

Also, if you trade U.S. stocks and ETFs, you can save on USD-CAD currency conversion fees by funding your account with USD.

Overall, Questrade offers a more robust trading platform for most investors, however, you will need to fund your account with at least $1,000 to get started.

 

Questrade vs. Wealthsimple User Review In Table Form

 

Wealthsimple Trade Questrade
Fees $0 to trade stocks and ETFs (no commissions) Stocks and ETFs ($4.95 to $9.95), ETF purchases are free;
$9.95 for mutual funds; min. of $5,000 purchase for bonds,
GICs and IPOs; 1% fee for Intl. equities;
$19.95 USD/trade for precious metals
Accounts available TFSA, RRSP, non-registered accounts RRSP, RESP, TFSA, Margin, LIRA, LRSP, RIF, LIF, non-registered personal
& business accounts
Minimum investment $0 $1,000
Device platforms Web, iOS, and Android Web, iOS, and Android
Promotions $50 cash bonus when you trade your first $150 $50 in free trades on new accounts with min. $1,000
Other fees 1.5% currency conversion fee for USD-CAD trades $19.95 quarterly inactivity fee and ECN fees when applicable
Market data Market data is delayed by up to 15 minutes (real-time snap data available at a $3 monthly fee) Multiple market data packages available (free & paid)
Types of orders Market orders, limit orders, and stop-limit orders Market order, limit order, stop-loss order, stop-limit order,
trailing stop order, trailing stop-limit order, limit on open order, limit on close order
Stock exchanges supported TSX, TSXV, NYSE & NASDAQ TSX, TSXV, NYSE, MX, PINX, BATS, CNSX, etc.
DRIPS Not currently available Available

 

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CONCLUSION

 

Furthermore, wealthsimple or questrade, you can’t really go wrong with whatever one you decide to use.  If your aim is to save on management fees you by quit your bank. Why compare Questrade vs. Wealthsimple, if you love the two you can use Wealthsimple for your business and Questrade for your personal investment account.

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