Wealthsimple vs Questrade: Which One Is Better in 2024?

Looking to invest but not sure where to start? Feeling overwhelmed by all of the investment options and jargon out there? You’re not alone.

Despite the momentary confusion, investing is one of the smartest things you can do with your money. Why? Because over time, investments have the potential to grow much faster than savings alone. To help you out, I’ve narrowed down your options to two of the top contenders in my Wealthsimple vs Questrade review.

Let’s get started!

Pros and Cons

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Highlights

Feature	Wealthsimple	Questrade
Commission Fees	None	1 ¢ per share (min. $4.95 to max. $9.95)
Account Types	Registered and Non-Registered	Registered and Non-Registered
Minimum Investment	None	$1.000
Investing Options	Stocks, Crypto, EFTs	Stocks, EFTs, Options, Foreign Exchange, Mutual Funds, Bonds, Precious Metals
Platforms	Desktop, Android, iOS	Desktop, Android, iOS

About Wealthsimple

Wealthsimple in Canada is an investment robo-advisor launched in 2014. It’s one of the biggest and most popular automated online wealth management platforms in the country. The service’s goal is to use technology to provide low-cost, passive investing solutions for its clients.

The company’s low-cost EFT portfolios are automatically rebalanced and diversified to help minimize risk while maximizing returns. In this way, it’s a great option for hands-off investors who want to invest in a simple, straightforward way. The company also offers a socially responsible investment portfolio for those interested in making a positive impact with their money.

About Questrade

Questrade in Canada is an online brokerage that provides self-directed investors with access to invest in stocks, options, ETFs, mutual funds, and more. The company was founded in 1999 and has since grown to become one of the largest independent brokerages in the country.

Questrade is a great option for active investors who want to have more control over their investment decisions. The company offers a variety of investment products and services, as well as a robust trading platform. They also have low fees, which is always a bonus.

Wealthsimple vs Questrade: 2022 Comparison

If you’re on the fence about whether Questrade or Wealthsimple is the right investment platform for you, this side-by-side comparison will help you make a decision.

Trading Fees

Perhaps the most important factor to consider when choosing an investment platform is the fees. After all, you want to be sure that you’re not overpaying for the privilege of investing your hard-earned money.

On that note, Wealthsimple has no commission fees in place for any of the assets that it offers. This is great news for investors, as it means that you can buy and sell without incurring any additional costs.

In contrast to the non-existent Wealthsimple trading fees, Questrade does charge a commission on trades. For stocks and options, the fee is $4.95 per trade. If you’re trading mutual funds, the fee is $9.95 per trade.

Moreover, the Questrade currency conversion fees are 1.5% for any currency that isn’t USD. So, if you’re looking to invest in international markets, be aware that you’ll incur this additional charge.

Account Types

When it comes to account types, both Wealthsimple and Questrade offer a variety of options to choose from. This includes registered accounts such as RRSPs, TFSAs, and RESPs, as well as non-registered accounts. Both brokerages also offer joint accounts, which is ideal if you’re looking to invest with a partner or spouse.

On the one hand, Wealthsimple offers five different account types: Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), Registered Education Savings Plan (RESP), JointAccount, and Individual Accounts.

On the other hand, Questrade offers six account types: Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), Registered Education Savings Plan (RESP), Locked-In Retirement Account (LIRA), Locked-In Retirement Income Fund (LRIF), and Individual Accounts.

Types of Assets

The kinds of assets that you can trade on an investment platform can also vary. For example, some brokerages only offer stocks and options, while others will also allow you to trade cryptocurrencies, forex, and other types of assets.

When it comes to asset types, Wealthsimple offers a pretty good selection. This includes stocks, crypto and EFTs. All of these can be exchanged without an accompanying Wealthsimple fee.

In contrast, Questrade has a greater range of assets available for trading. You make take part in stock sharing, EFTs, options, mutual funds, bonds and many more. The one downside is that Questrade does charge a commission on all of its transactions, which can add up over time.

Funding

The process of funding your investment account can also differ from one platform to another. When it comes to Wealthsimple, you can fund your account via bank transfer or by using a credit or debit card. The process is simple and straightforward.

Conversely, Questrade offers a few more options when it comes to funding your account. In addition to bank transfers and credit/debit cards, you can also fund your profile with a wire transfer or by using an e-check.

Minimum Investment

The minimum investment required to open an account may differ depending on the specific platform you choose. Wealthsimple has no minimum investment requirement, which means that you can open an account with as little or as much money as you want.

As for Questrade, the minimum investment required to open an account is $1,000. This may be a bit higher than some other brokerages, but it’s still relatively low in terms of the industry standard.

Platforms

A major consideration when choosing an investment platform is the type of platform that is offered. Some platforms are more user-friendly than others, and some may offer more features and functionality.

Both Wealthsimple and Questrade offer web-based platforms, which can be accessed from any internet-connected device. They also offer a mobile app for both iOS and Android devices.

It’s worth noting that the Questrade app is somewhat easier to use than its Wealthsimple equivalent. This is largely because it’s more streamlined and accessible, with a more comprehensive user interface.

Promotions

The sign-up bonus or promotion is normally one of the first things that people look at when they’re considering an investment platform. A good bonus can give your account a boost, and it’s always nice to get something for free.

Wealthsimple currently offers a $50 cash bonus when you open a new account and deposit at least $150 in stocks. This is a pretty good bonus, especially if you’re looking to start small.

Similarly, Questrade’s bonus also rounds out at $50, as long as you’ve deposited a minimum sum of $1,000 in your account. However, the bonus is in the form of commission-free trades, rather than cash.

Safety and Security

When it comes to safety and security, both Wealthsimple and Questrade are members of the Canadian Investor Protection Fund (CIPF). This organization provides coverage for up to $1 million in case of broker insolvency.

In terms of account security, both platforms offer two-factor authentication. This adds an extra layer of protection by requiring you to enter a code, in addition to your username and password, when logging in to your account.

Management Fees

Investment platforms typically charge management fees in order to offset the costs of running the business. These fees can vary depending on the platform you choose.

Wealthsimple charges a 0.5% fee on balances under $100,000, and a 0.4% fee on balances over $100,000. For Questrade, the costs come in at 0.25% for anything under $100.000 and 0.2% for balances upwards of $100,000.

Customer Service

With any investment platform, it’s important to have access to good customer service. It’s inevitable that you’ll have questions at some point, and it’s helpful to know that there’s someone there to answer them.

Both Wealthsimple and Questrade offer customer service via telephone and email. They also have an extensive FAQ section on their website.

In terms of response time, Wealthsimple seems to be slightly faster, with most queries being answered within 24 hours. For Questrade, the average response time is 48 hours.

User Reviews

When you take a closer look at the customer reviews on reputable sites such as Trustpilot, you’ll notice some interesting details.

People generally seem to be happy with Wealthsimple, praising its no-commission trading, favourable fees, and easy-to-use platform. They also appreciate the company’s focus on socially responsible investing.

Things don’t seem so rosy when it comes to Questrade though. With an average rating of 1.4/5 stars, it’s clear that people are not happy with the platform. Complaints include hidden fees, poor customer service, and glitches with the trading platform.

Final Verdict

And that concludes my Questrade vs Wealthsimple trade review. Which one is better in the end? Well, the answer depends on what you’re looking for.

While both platforms share some similarities, there are also some key differences that you’ll want to take into account. Wealthsimple might be more suitable if you’re looking for an easy-to-use platform with no commission trading. On the other hand, Questrade could be a better option if you’re looking for a more comprehensive platform with access to foreign markets.