You may adopt a passive investing approach with the help of a Robo-adviser platform because they do most of the leg work for you. Wealthsimple is a Robo-advisor that uses passive investing methods grounded on modern portfolio theory to help you amass wealth over time.

The way a portfolio is constructed is more important than any one investment. Wealthsimple takes this idea and teaches you how to invest your money regularly to create financial security. Wealthsimple is widely regarded as the leading automated investment service in Canada.

Nonetheless, the business has broadened its offerings to encompass a commission-free stock trading app for mobile devices, a cryptocurrency trading platform, free tax preparation software accessible online, and more.

What is Wealthsimple?

As an online investing platform, Wealthsimple was established in Canada. More than 3 million Canadians have put their trust in Wealthsimple, which has more than $15 billion in assets under management. Trading stocks and ETFs, purchasing and selling cryptocurrencies, receiving professional investment advice, adjusting your portfolio automatically, reinvesting dividends, and taking advantage of tax losses are just some features it offers.

Wealthsimple is also the only cryptocurrency trading platform in Canada to be licensed by the government, so you can rest certain that you are getting a fair market price and that your cryptocurrency will be kept secure during the transaction. If that wasn't enough to reassure you, the Canadian Investor Protection Fund further guarantees your Wealthsimple account.

Wealthsimple's Robo adviser services have helped thousands streamline their financial processes for over a decade. Wealthsimple's appeal stems partly from the fact that it is a perfect place to start investing, thanks to its user-friendly interface, the $0 minimum opening balance, and the wide variety of products it provides without requiring a significant financial commitment.

How Does Wealthsimple Work?

Wealthsimple aims to help customers save money by providing easier access to low-cost exchange-traded funds (ETFs). During signup, you'll be asked to complete a questionnaire exploring your risk tolerance, how long you have till retirement, and the specifics of your retirement savings plan.

In Wealthsimple Invest, you answer questions that help the app determine which investment strategies (conservative, balanced, or growth) best suit your risk tolerance and investment goals. When deciding on a portfolio, you can also select the type of investment account you'd like to use.

Wealthsimple Invest provides clients with a wide range of investment options, including tax-advantaged retirement savings accounts (IRAs) and tax-free savings accounts (TFSAs), as well as socially responsible investing portfolios that avoid oil and firearms companies in favor of those that put human rights, carbon emissions, and clean technology at the forefront of their business practices.

Pros:

• An important feature that makes Wealthsimple appealing to the general public is the absence of a required minimum initial deposit. Anyone can begin going, regardless of their financial situation.
• Aside from the MER assessed by Wealthsimple Invest, Wealthsimple does not levy any other fees. No yearly or inactivity fees apply.
• For clients who place a premium on ETF bundles that are congruent with their principles, Wealthsimple constructs portfolios with socially responsible assets or Halal investments.

Cons:

• It may take up to three business days for the cash to appear in your Wealthsimple account after being transferred from another bank.
• When compared to its rivals, Wealthsimple Invest has a higher MER.

Wealthsimple Fees

To sign up with Wealthsimple or purchase, you won't have to pay any hidden or upfront costs. Wealthsimple does not charge a commission on individual purchases but rather a management fee equivalent to the portfolio's worth once per year.

Wealthsimple has three levels of account access, with reduced charge percentages applied to higher-value accounts. No margin trading is available on Wealthsimple at this time. Due to this, it may not be the best choice for day traders or those looking to capitalize on market fluctuations.

Can Anyone Use Wealthsimple to Make Investments?

Everyone is welcome to utilize the Wealthsimple Invest platform. As a result of the hands-off approach that it takes to investing, it is particularly well-suited for the novice or inexperienced investors who are typically daunted by the stock market and don't have a solid understanding of how it operates. It is because of the hands-off method that it takes.

Wealthsimple is also an excellent match for experienced investors who wish to have some percentage of their portfolio devoted to passive investing to save time. It may be accomplished using Wealthsimple's automated investment feature.

The greatest aspect is that there is no requirement for a minimum deposit to start investing, which makes Wealthsimple Invest more accessible to people of all financial situations. To be eligible to use Wealthsimple, you must either be a citizen of Canada, a permanent resident of Canada or in possession of a current and valid visa to enter Canada.

In addition, you are required to have a Social Insurance Number (SIN), have reached the age of majority as determined by your province, have a physical address in Canada, and be able to satisfy all of the requirements for identification verification.

Conclusion:

Wealthsimple is a hybrid Robo-advisor that allows investors to "set it and forget it." Invest automatically, have Wealthsimple round up your credit card transactions to the closest dollar, and enjoy the compounding effect of your long-term savings using one of Wealthsimple's many prebuilt, diversified portfolios.

If you have ethical or religious investment preferences, you can choose among portfolios that adhere to those standards. Wealthsimple is designed for inexperienced investors. Thus it doesn't provide a wide variety of investment possibilities. Wealthsimple is great if you want to start investing from your computer or smartphone, but it may use some education and customer support improvements.