Wealthfront is one of the leading robo-advisors in the United States.
Like Betterment, a competing online investment service, it offers hands-free investment portfolios at a low cost.
Is Wealthfront available in Canada? Learn about alternative platforms like Wealthsimple and Questwealth that offer similar features.
Is Wealthfront Available in Canada?
Unfortunately, Wealthfront is not available to Canadians. As per its website:
No, we currently require all Wealthfront clients to have a U.S. social security number, a permanent U.S. residential address, and currently reside in the U.S. due to financial regulations. We cannot support clients residing outside of the U.S., including U.S. citizens residing abroad.
Wealthfront.
In addition, users of the platform must be at least 18 years old and have a U.S. phone number.
Simply put, you cannot use Wealthfront as a Canadian resident.
What is Wealthfront?
Wealthfront was founded in 2008 by Andy Rachleff and Dan Carroll. It has more than 450,000 clients and over $26 billion in assets under management.
The company’s core business revolves around automating investing through the use of broadly diversified low-cost Exchange-Traded Funds (ETFs).
In addition to investing, you can also open high-interest cash accounts that offer savings and checking features and a line of credit.
Wealthfront is a member of FINRA and SIPC, and its main competitors include Betterment, Personal Capital, and Robinhood.
How Wealthfront Works
When opening your Wealthfront account, you must answer a short questionnaire so the system can assess your risk tolerance and recommend an appropriate portfolio.
You can customize this portfolio further if you wish by adding or removing specific ETFs or changing their allocations.
Features of a Wealthfront investment account include:
Low management fees: A 0.25% annual advisory fee applies. In addition, the ETFs held have management expense ratios ranging from 0.05% to 0.29%.
Multiple accounts: You can open a Roth IRA, traditional IRA, SEP IRA, 401(K) rollover, and taxable investment account.
Tax-loss harvesting: Taxable accounts benefit from strategies to minimize taxes by harvesting losses when applicable.
Automatic rebalancing: Your portfolio is automatically rebalanced for free.
In addition to investing, you can also open a:
Wealthfront Cash Account: This account currently earns 0.10% APY (October 2021) on your entire balance and has these features:
- FDIC insurance up to $1 million
- No fees
- Supports check deposits and bill payments
You can also apply for the Wealthfront debit card (fees apply to ATM transactions).
Wealthfront Line of Credit: You can use this portfolio Line of Credit to borrow against your investments.
Alternatives to Wealthfront in Canada
The two main alternative robo-advisors to Wealthfront in Canada are Wealthismple Invest and Questwealth.
1. Wealthsimple Invest
Wealthsimple is the most popular digital wealth manager in Canada, with over $15 billion in assets under management.
Like Wealthfront, Wealthsimple clients enjoy low management fees, dividend re-investing, automatic rebalancing, and access to other services.
The key features of Wealthsimple Invest include the following:
Diversified portfolios: Invest in a personalized portfolio made up of ETFs.
Hands-free investing: Dividends earned in your portfolio are automatically re-invested, and assets are rebalanced as needed throughout the year.
Multiple accounts: Offers non-registered and registered accounts, including the RRSP, TFSA, RESP, RRIF, LIRA, and others.
SRIs: You can opt for socially responsible investing portfolios that do not violate your social and environmental values.
Spare-change investing: A roundup feature makes it easy to invest your spare change.
CIPF protection: Your account is protected against insolvency (up to $1 million) by the Canadian Investor Protection Fund (CIPF).
Low fees: Pay an annual 0.50% management fee. When your account balance exceeds $100,000, this fee drops to 0.40%. Extra fees of up to 0.20% apply in ETF MERs.
Tax-loss harvesting: Clients with deposits exceeding $100k get additional benefits, including tax-loss harvesting and financial planning sessions. Learn more in this review of Wealthsimple Black.
Free financial advice: You can speak to an advisor by phone to ask questions about your portfolio.
Promotion: Our readers get a $25 bonus when they open an account and fund it with $500 or more.
In addition to managed investing, you can also use Wealthsimple for the following:
Self-directed investing: Buy stocks and ETFs directly and manage your own portfolio using Wealthsimple Trade.
Crypto investing: Trade 50+ cryptocurrencies using the Wealthsimple Crypto platform.
File your tax return: Wealthsimple Tax is one of the best tax software in Canada.
2. Questwealth Portfolios
Questwealth Portfolios is a great alternative to Wealthfront.
Using active management strategies, the company invests your money in an ETF portfolio that matches your risk tolerance.
Here’s some of what you get:
Low fees: The standard management fee on Questwealth is 0.25% per year. If your investment account exceeds $100k, your annual fee drops to just 0.25%. In addition to the management fee, ETF MERs ranging from 0.17% to 0.22% apply.
Automatic rebalancing: Your portfolio management is set-it-and-forget. It is automatically rebalanced as needed depending on market conditions.
Tax efficiency: Tax-loss harvesting techniques are used to lower your capital gains tax. Also, dividends are automatically reinvested.
Multiple accounts: Questwealth offers RRSP, TFSA, RESP, LIRA, LIF, and other popular registered and non-registered accounts.
CIPF protection: Your account is protected against insolvency by CIPF.
Promotion: Get free management on up to $10,000 invested in your first year. Note that a minimum of $1,000 is required to open an account.
Self-directed investors can use Questrade instead to buy stocks, ETFs, mutual funds, GICs, CFDs, etc.
3. Justwealth
Justwealth is a Canadian online portfolio management company founded in 2016. Like Wealthfront, you can use Justwealth to automate your investment plan.
Its top features include:
- Automatic rebalancing
- Tax loss harvesting
- Canadian dollar and U.S. dollar accounts
- Personal investment and financial planning
Fees: Justwealth’s management fee is 0.50% for the first $500,000 you invest and 0.40% on amounts exceeding $500k. In addition, average ETF MERs of 0.20% apply.
Security: Your Justwealth investment account is protected by CIPF via BBS Securities Inc.
Wealthsimple vs. Wealthfront vs. Questwealth
| Wealthsimple | Wealthfront | Questwealth | |
| Available in? | Canada and U.K. | United States | Canada |
| Account minimum | $0 | $500 | $1,000 |
| Management fee | 0.40-0.50% | 0.25% | 0.20-0.25% |
| ETF fees | 0.20% average | 0.05 to 0.29% | 0.17% to 0.22% |
| Accounts offered | RRSP, TFSA, LIRA, RESP, LIF, and non-registered accounts | Traditional IRA, Roth IRA, SEP IRA, and taxable accounts | RRSP, TFSA, LIRA, LIF, RESP, corporate, margin, etc. |
| Automatic rebalancing | Yes | Yes | Yes |
| SRIs | Yes | Yes | Yes |
| Tax-loss harvesting | Yes | Yes | Yes |
| Savings account | Wealthsimple Save | Wealthfront Cash | N/A |
| Self-directed account | Wealthsimple Trade | N/A | Questrade |
| Security | CIPF protection | SIPC protection | CIPF protection |
| Promotion | Get a $25 bonus | N/A | Invest $10K free for 1 year |
| Visit Wealthsimple | – | Visit Questwealth |
Wealthfront Canada FAQs
Yes, Wealthfront is a legit company. It is a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).
Wealthsimple is the best robo-advisor in Canada when you consider its overall service package, features, and fees.
Wealthfront Canada 2022: Alternatives to Wealthfront in Canada
Overall
Summary
Is Wealthfront available in Canada? Learn about alternative Wealthfront investment platforms in Canada, including Wealthsimple and Questwealth.
