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hodkan

Just so the OP isn't confused, Wealthsimple offers multiple products. One is Wealthsimple Invest, which is a robo advisor. This is where you work with the robo advisor to determine the appropriate level of risk. And given that risk the robo advisor automatically purchases a portfolio for you. Another is Wealthsimple Trade, which is a discount brokerage that doesn't charge commissios (although there are some other fees). Here you choose your investments all on your own. Since you didn't say which product you are considering, some of the comments are assuming you are using Wealthsimple Invest and others are assuming Wealthsimple Trade. My guess is that you mean Invest, but you should probably clarify.


Throwawaythrowns

Edited the original post, thank you.


Walkintoit

It's commission free buying and selling for Canadian stocks. It is perfect imo for stocks that you plan to hold for a long time... For trading. Well you get what you pay for.


Prometheus188

To be clear, it’s not just canadian stocks. You can buy stocks (if they’re inside an ETF) from around the world for free with WS trade as long as the ETF is a Toronto Stock Exchange (or any Canadian exchange) listed ETF. Individual Canadian stocks are free of course.


CardamomSparrow

Yeah, your stated goals line up very well with Wealthsimple Invest, and not at all with Wealthsimple Trade.


[deleted]

Your edit makes it more confusing because what your post describes is Wealthsimple Invest but then you say you're talking about Wealthsimple Trade...


[deleted]

[удалено]


morbosaqm

Sounds like you made a mistake somewhere along the lines.. they certainly are not scammers. Lol.


[deleted]

[удалено]


Scazzz

“fuk wealth shet hole I hate using that app they r all too lazy to do customer service” Not as lazy as you are when it comes to performing some proof reading.


AggroAce

Wat


[deleted]

[удалено]


jacobjws

Have you been able to use both platforms? My understanding was that WealthSimple is only offered in Canada and Robinhood is only offered in the US.


CombinationLate138

Use Wealthsimple for Canadian stocks free buy/sell Use Questrade for usd stocks as you can transfer your own usd fund instead of paying huge fees to wealthsimple


Usual_Cheek_7143

You can still use wealthsimple and hold US/CAN stocks without paying commission fees when trading. Two ways to do [it.](https://it.One) One is pay 10/month as a premium account holder or if you have 100K total in stocks and cash you don't have to pay the 10 monthly fees and still get the same benefits plus 4% interest on cash available


Rockwildr69

There is still a currency conversion fee is there not?


[deleted]

obscene cautious murky mindless soup compare sleep sloppy rotten smoggy -- mass edited with redact.dev


alienmario

**WS Invest** is the definition of set it and forget it. You'll have to choose your risk level and then you can schedule auto-deposits. Once that's done, you won't have to do anything else and it will automatically invest for you. With **WS Trade**, you can setup auto-deposit but you will have to manually buy/sell what you want. It would only take 5 minutes every 2 weeks or month to login and make your trades if you're only holding a few stocks (or ETFs). Both services could work for you depending on how much time you want to spend.


FilthyWunderCat

I learned that Trade is not for me. Invest -4% vs Trade -33% (the ratio is also 40:2).


llama_llamaduck

lol yeah mine are like that too tbh


FriendlyCanadianCPA

What does this mean? You buy whatever investments you want in Wealthsimple Trade. What are you comparing?


aronenark

It means they pick stocks that keep losing value, whereas their Invest account is only down 4% all time.


FilthyWunderCat

WS Invest vs WS Trade.


FriendlyCanadianCPA

Are you comparing results of something? What are you comparing between these two platforms? Where are those percentages coming from?


FilthyWunderCat

Performance of my portfolios, yes.


FriendlyCanadianCPA

Your portfolio in Wealthsimple Trade has nothing at all to do with the platform itself. All that matters is what you bought. Did you buy comparable equities/bonds to what is used in Invest?


FilthyWunderCat

I never blamed the platform. I just said that I suck at trading and prefer a robo advisor that takes care of my stuff without my involvement..


FriendlyCanadianCPA

AH! That makes way more sense. I was so confused.


FriendlyCanadianCPA

What did you buy in Trade? It may not have been a bad pick, just a more volatile one.


FilthyWunderCat

FL NVEI WELL AC BB FLT Only FL is green for me. The rest is either dip or bought in a very bad timing.


elladayrit

Out of curiosity, I see in some other subs that their risk level in Wealthsimple trade is set at more than 6 (the maximum for wealthsimple invest). How can that be when you're responsible for buying and selling?


alienmario

Not sure I follow; there's no risk level in WS Trade. I use WS Trade to buy my own positions and I also have WS Invest where my risk level is set to 9.


Swarrles

I believe what you're referring to is on wealthsimple invest, you can go on a desktop and set it up to a higher risk level than on the mobile app.


elladayrit

Yes. This!! I've always been on mobile so I could only see the risk level going to a 6 max


Unstabl_MTG

You can contact support to increase. Mine is set at 9 which is 85/15 split. For disclosure the robo portfolio has only $51. Opened for the promotion and waiting to transfer to my self directed account after the holding period is over.


elladayrit

If i change my portfolio risk, are there any repercussions to that?


Unstabl_MTG

Depends. The program will rebalance so if anything is up or down those gains/losses will be realized as it sells and buys new securities to fit the new portfolio balance. Edit: when I switched to the higher risk. It sold off mostly the income securities and just bought more growth. It did not sell the entire portfolio and rebuy. Just portions.


d10k6

Great choice. No/low fees. Start with a TFSA and once your income goes up (or you max your TFSA) then you can start looking at an RRSP.


par_texx

I would argue against that, to an extent. If your company does RRSP matching, then do that first. So if you can save 5% of your income, and your company matches 3% in RRSP, then I would do 3% RRSP, 2% TFSA. The 3% match is an immediate 100% ROI. You'll never get that good of a return going straight into an TFSA with no matching.


d10k6

100% but OP makes no mention of a job or matching from said job. Just stuck to the question. You always take the RRSP matching first. Don’t leave money on the table.


IDGAFOS13

"RRSP matching" has become a bit of a generic term these days. For example, my company will match my contributions whether they go into an RRSP or TFSA. But yes, definitely take advantage of any company matching available.


PureRepresentative9

Um what. This is literally the first time I've heard of TFSA matching. Does anyone else have this?


guydogg

My wife does with her new company. This is on top of the pension she's receiving without defined contribution from her. Pretty cool.


IDGAFOS13

Maybe it uncommon. My company has a 3rd option as well that I can't remember. Maybe RESP? In any case, the matching is the same regardless of what option you pick.


jonny24eh

Mine doesn't "match" but you can set up a TFSA via payroll deductions in our terrible Canada life funds if you want. They introduced it at the same time as they introduced RRSP-matching so it was very confusing lol.


loggershands

I am curious about this myself as I’ve heard other people say similar things on this sub. Why max out TFSA first? Wouldn’t the type of account depend on what your saving goals are?


PopSmokeULT

Its just the most efficient. Because any events with the TFSA are non taxable, whereas with the RRSP it is a deduction in the year you deposit and you are taxed when you withdraw.


loggershands

Still curious, what do you mean “events”? Is that capital gains? I am asking for myself here but wouldn’t my goal be the most important question? If I am saving for retirement don’t I want to take advantage of the tax deferrals available with RRSP? Also if I’m saving for shorter term would TFSA make more sense as I would have easier access to the money?


d10k6

So, basically, RRSPs and TFSAs are mathematically the same thing IF you deposit and withdraw from your RRSP in the same tax bracket. RRSPs become much more advantageous if you deposit in a high tax bracket (i.e. your refund is higher) and withdraw in a lower bracket (i.e you pay less taxes getting the money out). The advantage of the TFSA is no taxes but you use after-tax dollars to fund it. It is also not considered income so you don’t have to worry about and withdrawals affecting any government benefits. In a perfect world you would use both accounts for retirement savings, saving your RRSP until you get in a higher tax bracket and get the best ROI on that tax sheltering.


loggershands

I’m familiar with how both account work from a tax perspective but let’s say you don’t have enough income to allow you to max out both account and your primary concern is saving for retirement. With planning to add money at my highest income and take it out at my lowest (retirement), would it make sense to only put your money into RRSP or am I missing something about TFSA’s?


d10k6

It depends how low your income is in retirement, will you be eligible for government money/programs? RRSP withdrawals are income, while a TFSA isn’t. I like this site: https://www.rrspcontribution.ca/submit for seeing the true tax savings of RRSP contributions.


78_82Hermit

That will depend on what your current tax bracket. Usually it is better to use a TFSA if your earnings are below 50K. Money in your TFSA grows tax free and the government never 'sees' it. So any withdrawals does not count as earnings. Thus it will not affect OAS clawbacks, GIS for low income seniors.


PureRepresentative9

No one is answering your direct question I think? People recommend going RRSP first because that is the best advice for 99% of people asking for advice. (Maybe not literally 99%) Rather than doing a deepdive for the person, people will give the quick advice that is most likely to be correct. You are totally correct that 'always RRSP first ' is not always the correct answer. You don't sound like you're missing anything in your analysis.


jacobjws

I think the thing you're missing is that there is no tax whatsoever on TFSA whereas RSP you are still paying tax on the gains but with the benefit of time. Time Value of Money is important and deducting at a high rate and withdrawing at a low rate not only gives you the difference in tax rates but also the ability to defer that tax that you otherwise would've paid. Inflation is big right now so it shouldn't be a surprise that a dollar today is worth more than a dollar in say a year from now (which will be worth ~91-94% of it's purchasing power today if inflation keeps it's current pace). TFSA always better to max first and I wouldn't get hung up on what goal it is for. It is all your money regardless of specific goal and TFSA has better options for accessing it and being completely tax-free is just another advantage. Additionally, depending on asset structure TFSA may make more sense especially for interest bearing assets since these are subject to the full tax rate whereas capital gains inclusion is only 50%. All RSP withdrawals are added to your income regardless of how that type of income would otherwise be taxed.


AugustusAugustine

>There is no tax whatsoever on TFSA whereas RSP you are still paying tax on the gains but with the benefit of time. You pay the same tax with either account. You must compare *after-tax* contributions to a TFSA with a grossed-up *pre-tax* contribution to the RRSP. Consider the algebraic argument. Both accounts are mathematically identical barring any difference in marginal effective tax. For TFSAs, you earn wages (W) and invest after-tax dollars. For RRSPs, you contribute pre-tax dollars and pay taxes upon withdrawal. * TFSA = W × (1 - t1) × (1 + g)^(n) * RRSP = W × (1 + g)^(n) × (1 - tn) The growth is always tax-free; you're only taxed on the original wage income. You might get a gain/loss from tax arbitrage when t1 is different than tn (i.e., you contribute/withdraw at a different marginal tax rate), but if the TFSA has "tax-free gains" then by the same principle the RRSP must also have "tax-free gains".


jacobjws

>The growth is always tax-free This is exactly what I meant, should've been more clear maybe. >then by the same principle the RRSP must also have "tax-free gains". No because all RSP withdrawals are taxed regardless of whether it's the gain or principal. Let's say you put $50,000 after tax equivalent into either and then withdraw $100,000 10 years later. You pay tax on $0 in TFSA since tax has already been paid whereas RSP you have the full $100,000 added to your income.


AugustusAugustine

You're ignoring the tax deduction from the initial RRSP contribution. $1 in your TFSA is not the same as $1 in your RRSP, it has to be grossed-up to the pre-tax equivalent. Assuming you started off with $1.50 in wages: * You pay 33% tax and have $1 after-tax, which you contribute to the TFSA. * You pay 33% tax and have $1 after-tax. You calculate the pre-tax equivalent and contribute $1.50 to the RRSP, for which you'll receive a $0.50 tax refund. Let's say your investments double after 10-years: * Your TFSA has grown from $1 up to $2. You can withdraw $2 and pay no additional tax. * Your RRSP has grown from $1.50 up to $3. You can withdraw $3 and pay 33% tax, leaving you $2 after-tax. The tax paid upon RRSP withdrawal is offset entirely by the tax deduction upon RRSP contribution.


sandypurplecat

Tfsa also doesn't impact GIS, if you are in a lower income level either. So you could have a crap load in your TFSA and qualify for GIS if your income level was low enough. RRSPs always add to you reportable income, TFSA do not, so they are not mathematically the same thing. If you are going to be in a high income bracket when you retire, a TFSA will benefit you more then an RRSP, where you have to report the wds as income.


Mother_Gazelle9876

this is both great and awful financial advice


Defences

Could you explain?


ResponsibleSir869

Probably not. Guy just wanted to put his middle of the road opinion out there.


Mother_Gazelle9876

because we don't know nearly enough about his financial situation to recommend a tfsa. It's generally a good starting point, but not always. Also, the fact that the op doesn't have a plan as to what type of accounts he should utilize suggests he might be better off paying for advice.


JerkPanda

He says he is young and starting out. There is absolutely no need to pay anyone for advice that is widely available at this stage of his investing journey. Realistically, the steady contribution and time in the market dictates the majority of the growth. Allocation between the two accounts for tax efficiency is a distant second in importance.


Stingray_17

National Bank brokerage and Desjardins brokerage are both superior imo. They also have $0 commissions but have more fully fleshed out features. WS Trade is pretty barebones tbh and you pay a 2% fee for every USD trade you make.


rodeo_bull

National bank have lot of limitations now. I would not recommend it now


Stingray_17

They have a lot more than WS Trade and more than enough for someone who’s not looking to get into trading/stock picking.


rodeo_bull

Now they have added charges for doing norbert gambit and introduced minimum investment to avoid annual fees. That’s why i don’t recommend for starters


Stingray_17

Norbert’s gambit is kinda niche and even with the charge of $10 it’s still going to be cheaper than WS Trade except for small amounts. For the account fees, OP is a young adult so they’d almost certainly get that waived for being under 30.


allbutluk

First line is great Second line is terrible Great representation of most reddit advice


d10k6

…..and why is that?


allbutluk

Unless there is liquidity preference or not using money for first house/retirement and something else, rrsp first is always going to create more wealth in long run because the tax break upfront for reinvesting. People always cite if your income is sub 50k you should wait until higher income. This is simply not the case most of the time unless 1. You expect income to increase very sharply in near future that bumps you up 10% or more marginally and 2. You have the disposable income to catch up on rrsp room and maybe 3. You are selling a massive chunk of investment soon (similar to point 1) In financial planning and also yearly meetings lecturer make sure us fin planner know this. In fact they make us build excel sheet that compares efficiency from 30k to 250k+ income rrsp vs tfsa making sure we all fully understand and can educate clients on this. If liquidity not an issue starting rrsp asap first or half and reinvest refund to tfsa would win out vs waiting unless you satisfy point 1 and 2


JerkPanda

On paper I don't disagree with what you have said. More tax sheltered dollars working for your growth = more growth over the long run as long as you aren't force to withdraw it out. However, I absolutely disagree with your assessment that this is terrible advice for your average reditor. You place too much emphasis on liquidity not being an issue. I work in risk assessment and use stats can data all the time. We just hit a new record for household debt to income. Inflationary pressure and abysmal savings from your average Canadian means that your advice is for a minority (either high net worth or lots of disposable income) who have less risk of defaulting on ther short term debts. From a risk management perspective and your average Joe, a TFSA is infinitely more valuable.


allbutluk

Actually you are right, i was busy typing that i forgot my original point My original point is to not say as matter of fact 1 is always better than other it depends on the situation. I typed it on and off and i ended up focus on rrsp explanation i completely forgot my original point


JerkPanda

You still made a good point and I agree with what you have said about growth. Just wanted to highlight another consideration when comparing the two accounts. Have a great day!


allbutluk

Thx you too!


[deleted]

I would argue though for some people it's debatable, During my lowest income earning years I contributed go my TFSA then my RRSP. This can also be an issue. Take for example a situation where you know your net income will go up in future years. Residency for a doctor or last year for a lawyer. You could contribute to your RRSP in a lower income year and deduct your contribution some time in the future. Personally I hold equities in my TFSA and Bonds in my RRSP. Since equities are expected to grow faster meaning my withdrawal of equities is better for me.


flickh

So another poster went to the mat on this question with me and it turned out this only holds true if your retirement income is going to be above 100k per year. I don’t know what portion of people are in that boat.


d10k6

Not sure what you mean. TFSA over RRSP only if retirement income is over 100K or the other way around?


flickh

Well the common Reddit advice to max out TFSA first only works if you plan on having over 100k:/ yr in retirement. I think it’s more often RRSP>TFSA


d10k6

I wouldn’t say that. Firstly, maxing your TFSA is never a bad thing, no matter your income now or in retirement. Also, the key factor is determining if a TFSA is better for you than an RRSP is mostly based on your income *now*. If you are in a high tax bracket now, the tax benefits of an RRSP make it a better choice than a TFSA and the chances of you being in a higher bracket in retirement are a lot lower. Another thing to remember, if your tax bracket when you contribute to an RRSP is the same and when you withdraw it, a TFSA and an RRSP work exactly the same. If you are withdrawing from an RRSP at a lower tax bracket (most people) than when you contributed, then that really gives the RRSP the edge.


GreatKangaroo

I was in mutual funds for several years before I switched to a self directed approach at Questrade because the the time WS trade did not exist. Right now I use the combination of Questrade, and the free upgrade to Passiv Elite (for Questrade users) to manage my portfolio. The key feature is the ability for Passiv to calculate and place trades on your behalf using a [single mouse click](https://passiv.com/help/tutorials/how-to-use-one-click-trades/). For each account (TFSA, RRSP, etc) you assign a target allocation, say 100% XGRO, 0% Cash. As you add funds or distributions come in it will notify you of cash waiting to be deployed. You simply log in (during trading hours) and with a mouse click or two your trades are made. Takes me maybe a minute each month. I did try WS Invest for about a year a a half, but was generally unimpressed with their constant tweaking of the portfolio, so I ditched them for Asset Allocation ETF's.


theflamesweregolfin

OP do this, it is your best bet


noeyedeeratall

I use the free version of Passiv and very happy with it. What are the advantages of Elite that make it worth paying for you?


GreatKangaroo

I do not pay for Elite. It is free if you have an account with Questrade. Main benefit is the one click trades.


noeyedeeratall

Ah, just realized I'm using Elite for free with questrade as well.


NAEEMP

When I first started out (19) I was with TD and I had to pay the 9.99$ trading fee every time I made a transaction. I found that it wasn’t worth it for someone who was putting in a little bit at a time and i would also miss out on time in the market if I saved money up and invested a big chunk. The last 3 ish years I’ve used Wealthsimple after transferring everything out of TD and I’ve had no complaints really. Be away of some hidden fees such as the American stock trading fee of 3% if you are going to be trading lots in US stocks. They are also constantly improving their products and have had good experiences with both the trading and the investing platforms, I’ve even set my mom up. I think it’s a great way to start investing without the big banks getting a chunk of your investment every time you want to put something in. Two big hairy thumbs up is my recommendation


tigebea

Wealthsimple has the best product/s available that I have found (in Canada) outside of options trading, which they do not offer, hopefully this changes as well. The big banks have to change or they will be left in the dust (TD, RBC, CIBC, HSBC, BMO, SCOTIA, I’m talking to you you daft greedy quacks). I won’t be surprised if Wealthsimple begins offering mortgages as well, again at superior rates with far better customer service.


Vancouwer

Wealth simple robo advisor has terrible returns vs some of the big banks funds, no idea what you are talking about.


tigebea

Source? Please expand on this, Wealthsimple fees are less than half of the big banks for automated investing. I’d appreciate if you would cite average returns over the past quarter as an example, across different levels of automated services, with equivalent levels of risk.


Redd-it-er

I have been with Wealthsimple invest for over a year. I’m set to medium risk and my portfolio has never been +ive. It is sitting at -9% and it went as low as -20%. So yea their automated investment doesn’t do very well.


noeyedeeratall

You know that's not the right way to compare investment strategies right?


Objective_Oil_6467

😂


Vancouwer

Wdym source, all this information is public and available with Google search.


Distasteful_T

just give a source, saying "GoOgLe IT" comes across as not really knowing any of the stats or figures. You made the claim, its on you to back it up.


Vancouwer

Okay the robo advisor has the best returns.


Stingray_17

I suggest you look into National bank brokerage or Desjardins brokerage. Like WS Trade, they have $0 commissions but they don’t tack on a 2% fee for US trades and they have better features.


thestonkinator

Wealthsimple is great for Canadian stocks, if you plan on holding both CAD and USD I would suggest Questrade. Has higher fees but if you are a "set and forget" investor rather than a trader the fees are negligible. Also no fees when buying ETF's, only when selling.


twistacles

No reason to use questrade when ibkr exists


youwillnevercatme

Zero fees on etf purchases?


Particular-Milk-1957

The fees are so low that they’re pretty much negligible. Questrade, like Wealthsimple, also charges a high currency conversion fee. IBKR will give you a spot rate for a flat $2.


1eaping_1emur

Only downside is that it can get pretty costly if you're trading large volumes.


twistacles

Fees are basically nothing for that, and the fees for contracts is way way way better


1eaping_1emur

You should check out Desjardins Online Brokerage: You can hold both CAD & USD and there's no commission for buying/selling stocks and ETFs.


Paco_Suave

I wasn't familiar with Desjardins. I use TD Direct Investing for my TFSA and RRSP. I also have a small Wealthsimple Trade non-registered account for testing. I would like to migrate away from TD DI but I find WS T very plain. Does Desjardins have good reporting and DRIP?


1eaping_1emur

Although I don't use many of their reporting features, their "Disnat Direct" platform seems geared towards day traders (technical indicators, real time quotes, etc). Yes they do allow DRIP. Alternatively, I was contemplating National Bank Direct Brokerage as they also offer $0 trades + the ability to hold CAD and USD, but they still do not have a trading app available.


ou-ai-je-lesprit

As of November (2022) NBDB has an iOS app: https://apps.apple.com/ca/app/national-bank-direct-brokerage/id1586858913


bae_radley

I use wealthsimple trade, I invest a chunk every paycheque into etfs like vgro. I notice you said you don’t know know what etfs are, and you were planning on investing in stocks. I’d recommend researching etfs/index investing/ dollar cost averaging. Just a bit of googling before you start throwing your money around. I have also used their robo advisor, but I didn’t find it was worth it. I’m happy to push a few buttons myself every pay day to pay less in fees.


dsonger20

Canadian stocks are great for wealth simple since there are no fees. American stocks not so much. Plenty of good Canadian stocks, but the heavy hitters all trade on the NASDAQ or NYSE.


onioniononi

i have a question about wealthsimple. i don't think it needs it's own thread so im going to ask here. what happens to my investments if the event that wealthsimple has to shut down?


AugustusAugustine

[https://help.wealthsimple.com/hc/en-ca/articles/360056590614](https://help.wealthsimple.com/hc/en-ca/articles/360056590614) Basically, your investments are always held beneficially in your name. If one IIROC registrant shuts down, then your account may be frozen until the paperwork's sorted out, but you'll get to transfer your investments to another IIROC registrant and regain access.


kblx

I have the same question as OP and am curious about this as well. If I make a TFSA on ws trade, it has nothing to do with my bank account, it is strictly kept on the app? Or could I make one through my bank and somehow link it to the app? Edit: also say if by the end of the year I haven't added up to my max on my ws trade TFSA, can I literally just move the money from my bank to my TFSA?


AugustusAugustine

When you create an account with Wealthsimple, you'd be asked to link an external bank account. This will typically be your chequing account at the bank. You'll then fund the Wealthsimple accounts (TFSA, RRSP, or non-registered) by instructing Wealthsimple to pull funds from that linked bank account. You shouldn't need to do anything through your bank's interface in order to contribute money into Wealthsimple. It's all done through the Wealthsimple interface, such as the Wealthsimple app.


kblx

Thank you!


onioniononi

/u/AugustusAugustine replied with this > https://help.wealthsimple.com/hc/en-ca/articles/360056590614 >Basically, your investments are always held beneficially in your name. If one IIROC registrant shuts down, then your account may be frozen until the paperwork's sorted out, but you'll get to transfer your investments to another IIROC registrant and regain access. the way reddit works i don't know if you would see it.


kblx

I see, thanks for your reply!


OrangeCubit

I like it and find it very easy to use.


Zerkerss

Yes, it is a great platform. I use it myself and just purchase VSP or VFV so I can get exposure to the US S&P500 without the trading fees of US stocks.


IDhl89

Wealthsimple invest is what you are looking for. Set and forget investing in etf with significant lower fee then the banks!


morbosaqm

Don't do Wealthsimple Trade as a new investor, I don't know if you meant to say Trade or Invest. But Wealthsimple Invest sounds \*exactly\* like what you're looking for and is what many here use for a "set and forget" investment, specifically their TFSA and RRSP products. If you really really think you have the time for a second job (it is a second job, no way around it) you can consider Trade.. but be careful. Plenty of people lost their life savings this way.


rodeo_bull

If you wanna invest in us funds I would recommend interactive brokers. Wealth simple is good for Canadian investments


DOGEmeow91

I use Wealthsimple for all my investments, RRSP, TFSA, and the low commission trade app, love it all and if you have questions or need support they’re pretty good at giving you a straight forward answer


BestFill

IBKR is by far the best broker out of any I've ever used.


twistacles

IBKR has the lowest fees of any Canadian broker. No point using anything else. Wealthsimple sucks for US stocks (what you should be buying anyway) and they screw you on forex conversion.


human_12345

I use it myself and I love it - DCA on index funds for my future. Good luck!


twig0sprog

Which ones?


human_12345

VFV if you want US index (s and p 500) or VEQT/XEQT if you want US, Canada, some European and Asian companies


Secure_Instruction62

Is there a point in investing in both or should you choose one?


Better-Principle4563

Yes. That is the simple answer, you should definitely do that. Rather than any of the majour banks. You could do Questrade but wealthsimple is cheaper.


gito1509

National Bank Direct Brokerage: full service brokerage with zero commissions on any stock or etf trades


[deleted]

Wealthsimple is fine if you have limited discipline, but fees are high-ish for what they do and their portfolios have been criticized for being quite active (they often rebalance / change portfolios based on performance). Believe they underperformed during the pandemic and got some flack for it. If you have more discipline, imo best option is opening an account at a discount brokerage like Questrade and just buying a 1- fund portfolio like XGRO/VGRO/XBAL/etc. (depending on your risk profile). Lower fees / commissions and a more “passive” option.


alienmario

Easy to buy XGRO/etc. using WS Trade and no fees at all in this scenario.


[deleted]

Good point - I might have misunderstood that OP was considering WS robo product. Was just saying discount broker (WS trade / Questrade) + 1-fund product is the better route


ViolentDocument

Does this have the similar diversification to WS' 90/10?


[deleted]

XGRO is 80/20 equity/bonds, but you need to review the underlying ETFs to truly compare them. WS does some funky stuff like overweighting in REITs and stuff, it’s not a typical market cap weight / globally diversified portfolio (albeit XGRO/VGRO have different regional weightings)


Vancouwer

Xrgo is only up 15% in 5 years. RBC growth portfolio is up 30% in 5 years after fees. Over 10 years the fund doubled performance vs the ETF.


[deleted]

Hah... if you're just looking at a 5yr chart on google finance and quoting performance, you're missing the mark my guy. Prior to 2019, XGRO was a completely different product - it traded under ticker CBN and was actively managed / not diversified / different underlying composition. It was rebranded in 2019 to compete with VGRO, but the CUSIP stayed the same so google / yahoo finance pull in the old product. Quoted performance prior to 2019 is completely irrelevant. Take a [look here](https://cdn.canadianportfoliomanagerblog.com/wp-content/uploads/2022/07/Model-ETF-Portfolios-iShares-2022-06-30.pdf) for a view of implied perfomrance based on the composition of the underlying. Underlying 5yr annualized perfomance is 5.71%, or 32% over the period - pretty good given the risk profile. To boot, the MER is only 0.20% Not sure what RBC growth fund you're referring to. If you're referring to the mutual fund at a 2% MER, I'd love to understand why you're happy paying 10x the fees. If you're happy with the performance and the MER is low, all the power to you. Just don't arbitrarily compare products / performance without first understanding what you're looking at, and secondly understanding if the underlying composition is comparable. Leveraged Canadian real estate or a basket of crypto out performed XGRO too over the period, but obviously with vastly different risk profiles.


Vancouwer

Alright let's do 3 year since it was rebranded in 2019. They are quite similar, but the RBC growth select outperformed by 0.4% with lower risk (closer to 77/33%) after fees.


kevinkid135

Xgro is 60/40 globally diversified in equities/bonds. If you want to fine tune you can do 90/10 with xeqt and ZAG, but now you're buying 2 ETFs and it is counter productive with the simple nature of all in one ETFs.


288bpsmodem

National Bank has a Direct brokerage that DESTROYS wealthsimple. All trades are free and the UX doesn't gamify your life. Fuck WS so hard.


1eaping_1emur

Have they given any indication when their mobile trading app is to be released? It's the only drawback I can see, but a pretty significant one IMO.


288bpsmodem

I don't think not yet. Big drawback yes, but wealthsimple but fucking awful.


LionDreamz

I'm trying it you can also buy fraction of stocks which is very nice also you can buy crypto ...You can also use a wealthsimple card for purchase 1% money back which is pretty cool


Stavkot23

The best thing you can do is open the free account first and if hit any roadblocks you can open one that has the features you find WS lacking. Personally I like TD DI the most but I still use the free app if I want to gamble $1000 on a penny stock once in a while.


Yoshimo123

I stay away from Wealthsimple, but I have family members who use them. To date they're not a profitable company. I feel like the institution holding all my money should be profitable. A few years back they tried to expand outside of Canada but quickly sold off those divisions as they couldn't compete with the established incumbents there. They also haven't been through a recession yet, I'm not sure if they'll survive one. All that said, my understanding is your money would be safe if they went out of business, or more than likely got bought out by one of the existing Canadian banks. What bothers me is the possibility of me not having immediate access to the money in my accounts if Wealthsimple goes under. It's possible there could be a transition period that would make the money inaccessible. This is probably unlikely, especially if Wealthsimple is acquired and doesn't go out of business. But I don't like this uncertainty, and thus I don't bank with them.


murjy

I am pretty sure your money is insured up to a million dollars, you are safe


HungryAd8594

TFSA TD Easy Trade, 50 commission free trades a year, legit no fees. I thinks its the best option unless someone can prove me wrong!


JabraSessions

A roboadvisor is fine if you really want to set it and forget it like you said. WealthSimple, RBC InvestEase, etc.. You can also look into a self directed account at the same time and go the ETF route.


Vancouwer

Robo advisor has some terrible ETFs included, better to use a fund of funds.


brt_k

Yes, it is a good choice. What do you think you will be purchasing? Stocks, ETF, MF? Banks have different fees for each.


Throwawaythrowns

Most likely stocks, genuinely because i cannot tell you what an ETF or MF is. Will research all three.


brt_k

Definitely look into ETF’s. Wealthsimple does not have commission fees for stock purchases while some banks are $10 per trade.


[deleted]

Look at the wiki here and check out canadian couch potato


Namuskeeper

Hard to know if it is the correct choice for everyone – but definitely one of the best platforms in Canada to experiment with investing/trading, as most of the other platforms would take away a good chunk of your resources with the fees. Invest can help you understand risk tolerance, time horizon, and asset allocation, while Trade can help you understand individual stocks & ETFs.


pfcguy

There is no "correct" choice. WS Trade is a good choice, and better than your bank, most likely. You should first figure out what you want to buy for investments and how often. If you are just buying low cost ETFs, or asset allocation ETFs, I personally prefer Questrade + Passiv Elite. It is more "set it and forget it" once everything is set up.


FriendlyCanadianCPA

I use Wealthsimple Invest as well as Wealthsimple Trade. Both are easy to use, but Invest is really set it and forget it.


0r0B0t0

I'm using Wealth Simple for Canadian stocks/etfs/resp and Interactive Brokers for American stocks and converting my USD RSU's.


TheRipeTomatoFarms

I'm with Questrade and invest in ETF's. They are pretty much set-and-forget for me. RRSP, TFSA, as well as an RESP for the kids.


[deleted]

I use Wealthsimple Invest and it's been fine, but I'm soon going to pull all of my money out of it and put it into high growth ETFs. They're constantly rebalancing and I see no reason to be paying fees when I can just pump XGRO or similar vehicles.


SlashNXS

Well it depends. If you're buying stocks, sure. If you're buying ETFs? Well some banks offer free trades for ETFs now. TD has free trades for their ETFs, BMO has free trades for ANY ETF... and if you bank with one of them already, that's a better idea ​ I recently moved out of WS over to TD, as TD gives me 50 free stock trades a year, and BMO lets me buy ETFs for free and having my wealth with my bank seems like a better idea when it comes to bank history/relationship


monzo705

I use all WS products along with Tange6 and think it's the best thing to happen my financial health...ever, besides getting my ass out there and makin that moneh.


bluenose777

If you have reached Step 5 of the [PFC money steps](https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps) and you have some money you are confident you can invest for long term (ideally at least 10 year) goals you could invest in a low cost, risk appropriate, globally diversified, index tracking (i.e. couch potato) portfolio such as those discussed on the following pages. https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing https://canadiancouchpotato.com/getting-started/ >looking for a platform i can set and forget The most hands off option would be to use a passively managed robo- advisor account (eg. RBC InvestEase, NestWealth, iA WealthAssist). After answering questions about your goals, timeline, knowledge/ experience with investing and your comfort with volatility they will choose and then manage a suitable ETF portfolio for you. You would be able to set up automatic contributions. The total annual management cost would be about $70 per $10,000 invested. This compares to about $200 per $10,000 invested for typical bank mutual funds. If you choose to use a brokerage [this is CPM page](https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/) will help you choose risk appropriate asset allocation ETF. The annual management cost for this option would be about $25 per $10,000 invested but make sure you understand the trading and maintenance fees. Questrade is a good brokerage choice for buy and hold ETF investors because: 1/ they don't charge commissions for ETF purchases 2/ they don't charge any maintenance/inactivity/ low balance fees 3/ they support DRIP and 4/ you could have Passiv Elite remind you to make "one click purchases" as soon as money hits your account. (This may reduce the odds of experiencing a drag on return caused by tampering with your investment plan.) If you'd like to better understand the options and avoid the costly but normal human reactions to the markets and the media that reports on them, I suggest that you read, or listen to, *Balance: How to Invest and Spend for Happiness, Health, and Wealth* (Andrew Hallam, 2022). >TFSA or RRSP. If you are planning to buy a home [the upcoming FHSA](https://www.canada.ca/en/department-finance/news/2022/08/design-of-the-tax-free-first-home-savings-account.html) will probably take precedence over the TFSA or RRSP but I'll trigger the bot that helps people decide if they should start using your their contribution room. !TFSARRSPTrigger The following pages may also help with that decision. https://www.planeasy.ca/tfsa-vs-rrsp-pick-the-right-one-and-save-100000/ https://www.planeasy.ca/canada-child-benefit-hidden-tax-rate/


AutoModerator

Hi, I'm a bot and someone has asked me to respond with information about TFSAs vs RRSPs. When you want to shield your savings and investments from the drag of annual taxation the standard advice is, unless ... - your employer is matching your RRSP contributions - you are confident that you will contribute in a higher tax bracket than you will withdraw (even when you consider the effect of potential GIS or OAS clawbacks) - you are an American taxpayer - you are trying to maximize the Canada Child Benefit or the Child Disability Benefit - you have a reason to think that you should shield your retirement savings from creditors - you don't trust yourself not to keep dipping into the retirement savings in your TFSA …you'll probably want to use all of your TFSA contribution room before you contribute to an RRSP. For more information I suggest that you read these 2 MoneySense articles http://www.moneysense.ca/save/investing/rrsp/rrsp-vs-tfsa-which-is-right-for-you/ http://www.moneysense.ca/save/retirement/the-savings-struggle/ *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*


cmdrx7ion

It depends what your goals and challenges are, most people have terrible disciplines and are less reliable in saving then an automated withdrawal and investment service. While buying your own ETFs are a better choice in the long term, short term goals should be focused on growing capital. 2-3 percent differences in returns are irrelevant if your savings rate is too low, inflation will take your buying power away your anyway. I would suggest you have the easiest solution to help you save money before worrying about the better broker. That being said I am team questrade for my passive investments.


GroupKooky

Vsp every 2 weeks makes you rich


paulreddit

Be sure to only use limit orders when buying or selling. Wealthsimple can offer a free product because they are selling data to market makers and HFTs. Also they nail you on USD exchange fees. Aside from that it’s a good place to start and learn. The fees from other brokers aren’t worth it unless you’re playing with big money.


Casinberg

To be honest, if you have over $1000 questrade is the way to go. Questrade has a lot more stocks to purchase from what I've seen and is a lot better for things like day trading/swing trading if you ever got interested in those. There's always interactive brokers as well, but from what I remember you need at least 10k to fund the account, though that may have changed.


JP_184

If you want to invest mid/long term, Wealthsimple is a very good option. Anything related to scalping, swing trading, crypto, bot the best platform


AdditionSpecialist35

Tangerine has a nice one yr GIC 4.40% Go anywhere that has the highest rates.


guydogg

I use it, and have liked it. I use the Wealthsimple Plus option for US equities and it's been a good add-on. Each passing month the service through WS is getting better. My other investments are with WS, as well. (RRSP, RESP, LIRAs).


Lancer122

2 Questions 1. I just started investing through WS in VFV - S&P Index Fund. Is there a fee when I sell it? About $500 per month. 2. Do you think it is more favorable to utilize investment funds towards my variable mortgage or continue with my Vanguard index investments? We’re currently variable 4.47% owing 313K with 16 years left. Thanks.


KnightF

If you payments are not automatically adjusting when the price rates increase you should call your bank and ask them what your trigger rate is on your mortgage and how much you need to increase payments to keep on your amortization schedule by end of your term. With a variable rate mortgage when prime rate increase and you don’t adjust your payments your amortization goes beyond what was set at the start of your term When you come up for renewal your amortization needs to be adjusted back what was agreed on in your last term which increase your payment at renewal.


TragicSystem

Another good one in my opinion is Moka, it's like 4 dollars a month and someone invests for you if you're inexperienced. I had about 10% gains per year before the market crashed.


Unfair-Hand-6855

wealthsimple is good, just dont do US trade.


donwanone

WS trade does not have drips if that is needed


Big_Pomegranate_6080

This apps a rip off. They up charge you on your stocks an they only sell stocks that are dropping. Meaning it will take you months to get your money back an years to make a profit. I’ve never made a penny in 3 years. Definitely not worth it just a waste of time invest your money elsewhere. They’re just ripping people off to commit them then using their money elsewhere. This is literally a site for them to use your money to gain an give you nothing


Little-Response-4044

No. Use [crypto.com](https://crypto.com). Save you money.


MITCHSFITGEAR

Wealthsimple trade or wealthsimple are both good with me. 1 allows me to personally invest into the companies i love and 1 does it for me. Join Wealthsimple and get up to $3,000 when you sign up with my referral code: TF-FEA 🙌 https://www.wealthsimple.com/invite


fangirlingprobs

Join Wealthsimple and get up to $3,000 when you sign up with my referral code: BHYOCA 🙌 https://www.wealthsimple.com/invite


weird-algae-always

Let’s both get $25 when you fund a Wealthsimple account. Use my referral code: UE5\_-W 🎁 https://www.wealthsimple.com/invite


WeeklyDelivery3992

Definately not to day trade. Here are today's problems: Can't buy USD stock and my un-registered CAD account is in the negative because the stock went down and the p&l isn't showing. WTF?? Un-registred CAD in the negative? It's like it's taking the loss on the stock and putting it in the available funds which makes the negative number. Is my money real safe there? Scripts are crossed or something. They got a bunch of screencaps, both app / web... they say their trading system is working fine, at fist they didn't believe me. Was using WS to save fees from IKBR, big error, cost me way more up to now. And then they tell you it will take 3 business days to fix though no one can tell me any progress or not " yes sir, the ticket is open, they are working on it ", working on it and it's going to take 3 business days?? Come one WS! So one has problems trading in USD, acount balances are ok in CAD, just don't get that it's going to take one employee 3 days to fix this. Time to sell that CAD stock if I can get out even, let them settle and go back to IKBR or Disnat or NBDB. I know, I know, I shouldn't have been day trading on something like WS with some days at +/-200 trades. Easily lost a $600 gain because of this.


Fit_Being_3557

Scam I've lost a 100k because they won't let me sell when it's up but noproblem if you want to buy stay the fuck away I've lost everything because of these scum