Wealthsimple is Canada’s most popular robo-advisor with over 175,000 clients and more than $5 billion in assets under management.
Wealthsimple’s promotional offer gives new clients an opportunity to invest up to $10,000 and have it managed for free for 1 year.
This is in addition to all the other benefits and perks you enjoy when you utilize their online investment management service.
For an in-depth look into the services, products, fees and financial planning offered by the company, read my complete Wealthsimple review.
What is Wealthsimple?
Wealthsimple is the largest digital registered portfolio manager (robo-advisor) in Canada based on the number of clients and assets under management. Their headquarters is in Toronto and they also have offices in New York and London.
Wealthsimple provides everyday investors with access to diversified portfolios that are modelled after Nobel Prize-winning strategies. In addition, you enjoy:
- Very low investment management fees (as low as 0.4% compared to over 2% when you invest in mutual funds).
- Portfolios customized to suit your investment objectives, return expectations and risk tolerance.
- Automatic rebalancing.
- Dividend re-investing.
- Free expert financial advice.
- Low-cost ETF portfolios and more.
Even better, you can sit back and not worry about your portfolio because they take care of all that stuff!
Wealthsimple Accounts and Products
You can invest in a variety of accounts with Wealthsimple. They offer:
- Registered accounts like TFSA, RRSP, RESP, RRIF, and LIRA
- Personal non-registered investment accounts
- Joint accounts
- Business investment accounts
As a client, you also have access to their various innovative products and services including:
1. High-Interest Savings Account: The Wealthsimple Cash Account pays a 2.40% interest rate that is one of the best in Canada and easily beats what the big banks are offering. This account will also offer No FX fees and free ATM withdrawals (coming soon).
2. Stock Trading: Wealthsimple Trade is a commission-free stock trading app that enables you to buy and sell thousands of stocks and ETFs for free.
3. Socially Responsible Investing: Access to investment portfolios that line up with your values. For example, you can invest in ETFs that are environment-friendly or those that feature only companies with a positive human right and corruption record.
4. Roundup Investing: This feature of Wealthsimple invest makes it easy for you to automatically invest your spare change.
5. Halal Investing: Investors who adhere to the Islamic faith can invest in a smart portfolio that complies with Islamic Law.
6. Tax Returns: They recently purchased Simple Tax, a “pay what you can” online tax return software.
One of the reasons why robo-advisors have increased in popularity is due to the lower fees they charge for managing your money.
At Wealthsimple, the fees are:
- $0 to $100,000 portfolio balance: 0.5% fee per year.
- $100,000 or more: 0.50% fee per year.
Using a calculator on the site, on a $100,000 portfolio, you could easily save $36,268 in fees over 20 years compared to an average mutual fund.
Wealthsimple Referral Program
When you sign up for a new Wealthsimple account using this referral link, you get $10,000 managed for free for one year.
As a client, you can share your custom referral link with friends and family. When they sign up, you get an additional $10,000 managed for free for 12 months for each person that funds their account.
Your referrals also get free management of up to $10,000 for one year.
Other Wealthsimple Rewards
1) Download the mobile app and get an additional $100 managed for free for 12 months.
2) Turn on auto-deposits and deposit $50 or more per month to get an extra $1,000 managed for free.
3) Transfer an investment account of at least $5,000 from another institution to Wealthsimple and get $10,000 managed for free for 12 months.
4) Get an extra $100 managed for free when you activate two-step verification for your account.
Is Wealthsimple Legit and Safe?
Wealthsimple Inc. is a registered portfolio manager in all of Canada and they offer investment products via ShareOwner which is a member of the Investment Industry Regulatory Organization of Canada (IIROC).
Clients of Wealthsimple are protected by the Canadian Investor Protection Fund (CIPF) up to $1 million if the firm becomes insolvent.
The company is backed by several well regarded financial institutions including Allianz X and Power Financial.
Wealthsimple Frequently Asked Questions
These are answers to some of the more common Wealthsimple FAQs:
Is Wealthsimple Free? New clients who sign up using a referral link can invest up to $10,000 free for 12 months. After the initial 12 months, a 0.40% to 0.50% management fee applies.
What happens if Wealthsimple goes out of business? Wealthsimple’s investment products are provided through Canadian ShareOwner Investments Inc. which is a member of IIROC and client accounts are protected by CIPF up to $1 million if the firm becomes bankrupt.
Can you lose money on Wealthsimple? Yes, as with any other investment (including mutual funds), there’s always a risk that you can lose your money.
Where can I compare robo-advisor fees? I have written a detailed article comparing robo-advisor fees in Canada.
How does Wealthsimple make money? They charge a standard management fee of 0.4-0.5% per year depending on your portfolio size.
Can you buy stocks with Wealthsimple? If you are a self-directed investor who wants to buy and sell individual stocks, you can do so using Wealthsimple Trade, their free online brokerage service.
Can I transfer my TFSA and RRSP to Wealthsimple? Yes, you can transfer your existing investment accounts elsewhere to Wealthsimple. They reimburse any transfer fees incurred on accounts exceeding $5,000 in value. Read more about Wealthsimple TFSA accounts.
What is Wealthsimple Managed Free? This refers to their referral program. You can invest up to $10,000 for free for every friend who signs up using your referral link. Your friend also gets to invest up to $10,000 free for 12 months.
Who is behind Wealthsimple? Wealthsimple was founded in 2014 by Michael Katchen. Since then, the company has grown significantly and is backed by Power Financial Corporation.
How long does it take to withdraw money from Wealthsimple? Withdrawals take up to 5 business days to be completed.
Wealthsimple $10,000 Promotion Offer
Wealthsimple is Canada’s most popular robo-advisor. Enjoy this Wealthsimple promotional offer and invest up to $10,000 for free for 12 months. This promo is available through our special Wealthsimple referral link.