Wealthsimple Trade and Scotia iTrade are among the top online brokerages in Canada that offer No-commission ETFs. Wealthsimple Trade is an independent online broker, while Scotia iTrade is owned by a top-five Canadian bank.
In this Wealthsimple Trade vs Scotia iTrade comparison, I delve into their investment account/products, trading fees, trading features/tools, security, promotions, customer service, and more.
What is Wealthsimple Trade?
Wealthsimple Trade is one of the best online trading platforms in Canada that offers commission-free trading.
It was launched in 2009 by its parent company, Wealthsimple, a top wealth management firm in Canada that boasts over $15 billion in assets under management, with over 2 million customers using its investment products and tax services.
Wealthsimple Trade makes investing for Canadians easier by offering a simple, easy-to-use stock trading platform to allow DIY investors to trade stocks, EFTs, and crypto in one place at no extra trading commissions & fees.
Hands-off investors can take advantage of Wealthsimple Invest, a Robo Advisor that helps you meet your investment goals with expertly customized and managed low-cost portfolios.
Wealthsimple Trade
Trade stocks, ETFs, and options
Excellent trading platform for beginners
Deposit $150+ to get a $25 cash bonus
Transfer fees waived up to $150
What is Scotia iTrade?
Scotia iTrade is a stock trading platform owned and operated by Scotiabank. In 2008, the bank acquired E*Trade Canada and rebranded it to Scotia iTrade in 2009.
Scotiabank has been in operation since 1832, so you get the confidence of investing with one of the largest banks in Canada that has stood the test of time.
Scotia iTrade makes investing for Canadians easier by offering a robust online trading platform packed with advanced trading features and charting tools to allow self-directed investors to research, evaluate, trade, and track their investment portfolios.
The platform offers a wide selection of investment products, and users can choose to invest with registered, non-registered, or personal accounts.
However, Scotia iTrade trading commission & fees run higher than average. The platform also levies many admin and account maintenance fees, which may be a turnoff for beginners and cost-conscious investors.
Read my full Scotia iTrade review.
Wealthsimple Trade vs Scotia iTrade: Investment Accounts
Scotia iTrade offers more investment accounts than Wealthsimple Trade. While Wealthsimple Trade offers only 3 account types, Scotia iTrade offers over 8 investment accounts.
Wealthsimple Trade accounts include:
- Tax-Free Savings Accounts (TFSA)
- Registered Retirement Savings (RRSP)
- Taxable personal accounts
Scotia iTrade account types include:
- Tax-Free Savings Accounts (TFSA)
- Registered Retirement Savings Plan (RRSP)
- Registered Retirement Income Fund (RRIF)
- Registered Education Savings Plans (RESP)
- U.S. dollar registered accounts
- Cash accounts
- Margin accounts
- Cash Optimizer Investment Account (COIA)
It also offers non-personal accounts, including corporate partnerships, sole proprietorships, Investment clubs, Trusts, Estates, and unincorporated organization accounts.
Plus, Scotia iTrade offers a risk-free demo account to allow you to test the platform and put your trading skills to the test without risking real money.
Wealthsimple Trade vs Scotia iTrade: Investment Products
Scotia iTrade offers more investment products than Wealthsimple Trade. Wealthsimple Trade offers only 3 investment products, while Scotia iTrade offers about 7 market securities.
Wealthsimple Trade investment products:
- Stocks
- ETFs
- Cryptocurrencies via the Wealthsimple Crypto app
Scotia iTrade investment products:
- Stocks
- ETFs
- Mutual funds
- Bonds
- Options
- New issues
- Guaranteed Investment Certificates (GICs)
No-Commission ETFs
Commission-free ETFs offer a great option to diversify your portfolio, minimize risk, and maximize return by reducing trading costs.
Both Wealthsimple Trade and Scotia iTrade offer commission-free ETF trading. ETFs are free to trade on Wealthsimple Trade, and you won’t pay a dime when buying and selling Canadian and US ETFs on the platform.
Scotia iTrade offers a selection of 100+ commission-free ETFs across Canadian and US markets that you can buy and sell at $0 fees, but the standard fees apply when trading other ETFs.
Trading Fees
Wealthsimple Trade is a fee-free trading platform. The platform offers commission-free trading of stocks and EFTs, and users can fund, trade, and withdraw earnings without worrying about extra charges.
However, there’s an FX fee of 1.5% on US trades for Basic users and $10/month if you subscribe to Wealthsimple Plus, a service that gives you instant deposits up to $5000 and no FX fees on US trades.
Scotia iTrade fees are among the highest in the industry. The standard fee is $9.99, while active traders making 150+ trades/quarter enjoy a discounted fee of $4.99. You’ll also pay an additional fee of $65 if you call their representatives to place a trade via telephone.
| Commission & Fees | Wealthsimple Trade | Scotia iTrade |
| Stocks & ETFs | Free | $9.99/trade $4.99/trade for active traders |
| Options | N/A | $9.99+$1.25/contract $4.99 + $1.25/contract for active traders |
| Mutual funds | N/A | $9.99 |
| Fixed income securities | N/A | $1 per $1000 Face Value ($24.99 min, $250 max) |
Admin & Other Fees
Wealthsimple Trade doesn’t charge any account maintenance fees, transfer charges, or deposit/withdrawal fees.
Scotia iTrade, on the other hand, levies a myriad of admin and account maintenance fees, which can quickly add up.
The top ones include:
- $100/year for accounts with less than $25,000 and fewer than 12 commissionable trades per year
- $25/year for accounts with less than $15,000
- $300 Canadian Controlled Private Corporation (CCPC) set up fees
- Certificate deposit fee: $100
- Account transfer out fee: $150
- Mutual funds not distributed by Scotia iTrade: $50 per quarter per account
- Low Activity Account Admin fee: $25/quarter
- Wire transfer out: $25
- Unclaimed account fee: $60 per quarter
- Stop payment request: $25
- Returned customer cheques/deposits: $25
- Full-deregistration of plan: $125
- Partial de-registration: $50
- Monthly paper account statement: $3
- Paper trade confirmation fee: $2
Trading Platform and Tools
The Wealthsimple Trade offers a basic, easy-to-use trading platform and mobile app to allow users to quickly buy/sell stocks/ETFs and doesn’t support advanced trading features/charting.
Scotia iTrade, on the other hand, offers 3 trading interfaces to cater to different users. They include:
- Scotia Online: Offers stock screeners, research reports, charting tools, and bank account integration.
- FlightDesk: A premium online trading platform that offers in-depth analysis, real-time up-to-minute data & quotes, research, news, customizable web-based workspaces, analytics, charting, and advanced trading strategies to manage multiple stock and options orders from different accounts.
- Scotia iTrade mobile app: Allows you to check watchlists, news, balances, access market information, and trade online anytime on the go.
Customer Service
Wealthsimple Trade offers customer support via phone, virtual assistant chat, and email, and you can reach them out Monday-Friday from 8 am to 8 pm, and 9 am to 6 pm on weekends.
Scotia iTrade offers customer support via phone or email, and you can reach them out Monday-Friday from 8 am to 8 pm.
Are They Safe?
Both Wealthsimple and Scotia iTrade are regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and are members of the Canadian Investor Protection Fund (CIPF), which protects your accounts against insolvency up to $1M.
Wealthsimple uses 2FA to ensure secure account access, and state-of-the-art data encryption to prevent data breaches.
Scotia iTrade offers a security guarantee against online and mobile banking fraud, and you will receive 100% compensation when funds or securities are fraudulently transferred out of your account.
Promotions
If you open a Wealthsimple Trade account and deposit $150+, you receive a $25 cash bonus.
For current Scotia iTrade offers and those from other brokerages, you can check out this page.
Wealthsimple Trade vs Scotia iTrade: Table Breakdown
| Feature | Wealthsimple Trade | Scotia iTrade | Questrade |
| Standard trading fees | $0 | $9.99 | $9.95 |
| Active Trader fee | $0 | $4.95 | $4.95 |
| Commission Free ETFs | Yes; ETFs are free to buy and sell | Yes; Offers a selection of $100+ commission-free ETFs | Yes for buy orders; fees apply when you sell. |
| Maintenance fees | $0 | $100 for registered accounts if balance is less than $25,000; $25/year for non-registered accounts if balance is less than $15,000. | $0 |
| Account types | TFSA, RRSP, taxable personal accounts | TFSA, RRSP, RRIF, RESP, dollar accounts, cash, margin COIA, and no-personal accounts. | TFSA, RRSP, RESP, RRIF, LIRA, and non-registered accounts. |
| Investing products | Stocks, ETFs, crypto | Stocks, ETFs, Mutual funds, Bonds, Options, New issues, GICs. | Stocks, ETFs, options, FX, IPOs, CFDs, mutual funds, bonds, GICs, precious metals, International Equities. |
| Minimum investment | None | None | $1000 |
| Platforms | Basic web interface and mobile app | Advanced web interface and mobile apps | Advanced web platforms and mobile apps |
| Promotion | Deposit $150 to get a $25 cash bonus | – | Invest $1,000+ to get $50 in free trades. |
Wealthsimple Trade vs Scotia iTrade: Conclusion
Although Wealthsimple Trade offers only three account types and three investment products, it does well with its commission-free, easy-to-use platform, which is excellent for beginners and cost-conscious investors.
Scotia iTrade is excellent for active, experienced traders and investors looking for advanced trading features/charting tools, multiple account types, and a more comprehensive selection of market securities to diversify their portfolios.
However, you’ll have to contend with its high trading fees and account maintenance/admin fees, especially if you don’t actively trade on the platform.
How do brokerage firms decide which funds to offer as commission-free?
@Mark: I am not sure if they have a process/metric for picking them.