If you are looking for an online investing service in Canada, you may have come across Questrade and Wealthsimple. These two platforms are among the most popular and reputable options for Canadian investors who want to save on fees and access a variety of investment products.
But how do they compare? What are their strengths and weaknesses? And which one should you choose based on your investing goals, preferences and budget?
In this article, we will review Questrade and Wealthsimple in terms of their products, services, fees, account options, platforms and customer support. We will also highlight some of their pros and cons and provide some tips on how to decide between them.
What are Questrade and Wealthsimple?
Questrade is Canada’s largest independent online brokerage that has been in business since 1999. It offers access to stocks, ETFs, options, bonds, mutual funds, currencies, precious metals and other products through its web-based platform or mobile app. It also offers a robo-advisor service called Questwealth Portfolios that automatically invests your money in low-cost ETF portfolios based on your risk profile.
Wealthsimple is Canada’s leading robo-advisor that was founded in 2014. It offers a managed investing service called Wealthsimple Invest that automatically invests your money in diversified ETF portfolios based on your risk profile. It also offers a commission-free online brokerage service called Wealthsimple Trade that allows you to buy and sell stocks and ETFs through its web-based platform or mobile app. In addition, it offers other products such as Wealthsimple Crypto (a cryptocurrency trading platform), Wealthsimple Tax (a tax-filing service) and Wealthsimple Cash (a hybrid savings account).
How do Questrade and Wealthsimple compare?
Products
Both Questrade and Wealthsimple offer a range of investment products for different types of investors.
Questrade has more product offerings than Wealthsimple as it allows you to trade various securities such as stocks, ETFs, options, bonds, mutual funds etc. through its self-directed platform. You can also access market data, research tools and educational resources to help you make informed decisions.
Wealthsimple has fewer product offerings than Questrade as it mainly focuses on ETFs through its managed investing or commission-free trading platforms. However, it also offers some niche products such as crypto trading (through Wealthsimple Crypto), tax filing (through Wealthsimple Tax) and hybrid savings (through Wealthsimple Cash).
Services
Both Questrade and Wealthsimple offer different types of services depending on your investing style.
Questrade caters to both DIY investors who want to trade securities themselves using its self-directed platform or active traders who want to use advanced features such as margin accounts or contract for differences (CFDs). It also caters to passive investors who want to use its robo-advisor service called Questwealth Portfolios that automatically invests their money in low-cost ETF portfolios based on their risk profile.
Wealthsimple caters mainly to passive investors who want to use its robo-advisor service called Wealthsimple Invest that automatically invests their money in diversified ETF portfolios based on their risk profile. It also caters to DIY investors who want to trade stocks
and ETFs themselves using its commission-free trading platform called
Wealthsimple Trade.
Fees
Both Questrade and Wealthsome charge fees for their services but they differ significantly in how they charge them.
Questrade charges commissions for trading securities such as stocks, ETFs etc. through its self-directed platform. The commissions vary depending on the type of security traded but they start from $0.01 per share with a minimum of $4.95 per trade up to a maximum of $9.95 per trade. However, it does not charge commissions for buying ETFs but only for selling them. It also charges management fees for using its robo-advisor service called Questwealth Portfolios which range from 0.20% to 0.25% per year depending on the size of your portfolio.
Wealthsome does not charge commissions for trading stocks and ETFs through its commission-free trading platform called Wealthsome Trade. However, it does charge currency conversion fees when trading U.S.-listed securities which amount to 1.5% per transaction. It also charges management fees for using its robo-advisor service called Wealthsome Invest which range from 0.40% to 0.50% per year depending on the size of your portfolio.
Account Options
Both Questrade and Wealthsimple offer various account options for different types of investors.
Questrade offers more account options than Wealthsimple as it allows you to open registered accounts such as RRSPs, TFSAs, RESPs, LIRAs, RRIFs etc. as well as non-registered accounts such as margin accounts, corporate accounts, trust accounts etc. through its self-directed platform or robo-advisor service.
Wealthsimple offers fewer account options than Questrade as it allows you to open registered accounts such as RRSPs, TFSAs and RESPs as well as non-registered personal accounts through its commission-free trading platform or robo-advisor service. However, it does not offer other types of accounts such as margin accounts, corporate accounts etc.
Platforms
Both Questrade and Wealthsimple offer user-friendly and intuitive platforms for accessing their services.
Questrade offers a web-based platform that can be accessed through any browser or a desktop platform that can be downloaded on your computer. It also offers a mobile app that can be used on iOS or Android devices. The platforms have various features such as market data, research tools, charting tools etc. that can help you trade securities efficiently and effectively.
Wealthsimple offers a web-based platform that can be accessed through any browser or a mobile app that can be used on iOS or Android devices. The platforms have various features such as goal setting, portfolio breakdowns,
performance tracking etc. that can help you invest your money wisely and easily. It also offers a desktop platform (currently in beta) that has similar features to its web-based platform.
Customer Support
Both Questrade and Wealthsimple offer customer support for their clients but they differ in how they provide it.
Questrade offers customer support through phone, email or live chat from Monday to Friday from 7:30 am to 8:00 pm ET. It also offers an online help centre that has various articles and videos that can answer common questions and issues.
Wealthsome offers customer support through phone or email from Monday to Thursday from 8:00 am to 8:00 pm ET and on Friday from 9:00 am to 5:30 pm ET. It also offers an online help centre that has various articles and FAQs
that can answer common questions and issues.
Pros and Cons
Both Questrade and Wealthsimple have their advantages and disadvantages depending on your investing needs and preferences. Here are some of their pros and cons:
Questrade Pros
– It offers a wide range of investment products and account options for different types of investors
– It offers low commissions for trading securities and free ETF purchases
– It offers a robo-advisor service that has lower management fees than Wealthsimple
– It offers robust market data, research tools and educational resources for DIY investors
– It offers various platforms that have advanced features and functionalities for trading securities
Questrade Cons
– It charges commissions for selling ETFs and trading other securities
– It charges inactivity fees for accounts with less than $1,000 or no trades in a quarter
– It charges currency conversion fees for trading U.S.-listed securities
– It does not offer niche products such as crypto trading or tax filing
– It does not offer a hybrid savings account
Wealthsimple Pros
– It offers commission-free trading for stocks and ETFs through its online brokerage service
– It offers a robo-advisor service that has diversified ETF portfolios based on your risk profile
– It offers niche products such as crypto trading, tax filing and hybrid savings account
– It does not charge inactivity fees or minimum account balances for its services
– It offers user-friendly and intuitive platforms that have simple features and functionalities for investing your money
Wealthsimple Cons
– It offers fewer investment products and account options than Questrade
– It charges higher management fees than Questrade for its robo-advisor service
– It charges currency conversion fees for trading U.S.-listed securities through its online brokerage service
– It does not offer market data, research tools or educational resources for DIY investors
– Its desktop platform is still in beta testing mode
How to Decide Between Questrade and Wealthsimple?
The decision between Questrade and Wealthsimple depends on your personal situation, goals and preferences. There is no one-size-fits-all answer as both platforms have their strengths and weaknesses.
However, here are some general tips that can help you choose the best option for you:
If you are a passive investor who wants to invest your money in low-cost ETF portfolios without worrying about managing them yourself, you may prefer Wealthsimple Invest over Questwealth Portfolios as it has more diversified portfolios and lower minimum investment requirements. However, if you want to save on management fees and don’t mind having less portfolio options, you may prefer Questwealth Portfolios over Wealthsimple Invest as it has lower fees and similar performance.
If you are a DIY investor who wants to trade securities yourself using a self-directed platform, you may prefer Questrade over Wealthsimple Trade as it offers more product offerings, account options, market data, research tools and platform features. However, if you want to save on commissions and trade stocks and ETFs commission-free, you may prefer Wealthsimple Trade over Questrade as it offers free trades and simple platforms.
If you are an active trader who wants to use advanced features such as margin accounts or contract for differences (CFDs), you may prefer Questrade over Wealthsome Trade as it offers these features while Wealthsome Trade does not. However, be aware that these features involve higher risks and fees than regular trading.
If you are interested in niche products such as crypto trading, tax filing or hybrid savings account, you may prefer Wealthsome over Questrade as it offers these products while Questrade does not. However, be aware that these products may have different risks and fees than regular investing products.
Ultimately, the best way to decide between Questrade and Wealthsome is to try them out yourself. Both platforms offer free trials or promotions that can help you test their services before committing.
Conclusion
Questrade and Wealthsimple are two of the most popular and reputable online investing platforms in Canada. They both offer various products, services, fees, account options, platforms and customer support for different types of investors.
However, they also have some significant differences that can make one platform better than the other depending on your personal situation, goals and preferences.
Questrade is better for DIY investors who want to trade securities themselves using a self-directed platform or active traders who want to use advanced features such as margin accounts or contract for differences (CFDs). It also offers a robo-advisor service that has lower management fees than Wealthsimple but less diversified portfolios and higher minimum investment requirements.
Wealthsimple is better for passive investors who want to invest their money in diversified ETF portfolios without worrying about managing them themselves using a robo-advisor service. It also offers a commission-free trading platform that allows you to trade stocks and ETFs without paying commissions but with currency conversion fees. It also offers niche products such as crypto trading, tax filing and hybrid savings account.
The best way to decide between Questrade and Wealthsimple is to try them out yourself using their free trials or promotions and compare their features, fees, performance, and customer support and see which one suits your needs better.
We hope this article has helped you understand the differences between Questrade and Wealthsimple and how to choose the best option for you. Happy investing!