which on-line investing service is best for you? (2024)

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Possibly you wish to strive on-line investing or change on-line brokers or robo-advisors. Both means you’ve landed right here since you narrowed down your decisions to Wealthsimple or Questrade. Each are good choices for Canadians that might enable you to develop your investments.

Whereas the 2 fintech platforms have comparable services—for instance, the 2 do provide self-directed and managed funding companies—they aren’t an identical. The platform that’s best for you will rely in your state of affairs and preferences, together with whether or not you like to handle your individual investments or would moderately let a robo-advisor construct your portfolio and handle your investments for you.

So, let’s get into the variations between Questrade and Wealthsimple so you’ll be able to determine on one of the best investing platform for you.

Questrade and Wealthsimple are Canadian funding platforms, and each provide helpful investing services. However the branding for each could be complicated.
Questrade is each the title of the corporate and the brokerage service, but its robo-advisor is named Questwealth Portfolios.
Wealthsimple used to have a separate app for DIY investing referred to as Wealthsimple Commerce) and its managed funding robo-advisor was referred to as Wealthsimple Make investments. Now, although, all its funding merchandise—shares, ETFs, crypto, choices, and the robo-advisor—can be found on one complete app, aptly and easily referred to as Wealthsimple.

Now that we’re clear on the names, let’s dive in and examine the 2 corporations and their companies.

What’s Questrade? How does it work for Canadian buyers?

Questrade* first gained recognition as a low-cost supplier of brokerage companies in 1999, lengthy earlier than the time period “fintech” turned the factor to do. In the present day, it presents virtually each sort of funding—together with shares, bonds, exchange-traded funds (ETFs), mutual funds, assured funding certificates (GICs), choices, preliminary public choices (IPOs) and treasured metals—with reasonably priced buying and selling charges, in comparison with that of conventional brokerages, banks or different monetary establishments. (Learn our full Questrade evaluate for much more data on the platform.)
Wealthsimple, alternatively, entered the brokerage market extra not too long ago, in 2019 with its cellular app Wealthsimple Commerce. It made a splash with its zero-commission trades on ETFs and shares listed on the NYSE, NASDAQ, TSX or TSX-V exchanges.

For Wealthsimple customers, the trade-off of no charges, nevertheless, was the comparatively restricted funding merchandise. As an alternative of buying and selling commissions, Wealthsimple made its cash by means of a 1.5% foreign money conversion payment utilized to Canadian-to-U.S. greenback conversions (and vice-versa). That is vital, as a result of ordinarily Wealthsimple Commerce holdings—together with U.S. shares—are in Canadian {dollars}. So, the foreign money conversion charges can rapidly add up for buyers excited about U.S. shares and ETFs. And on high of that, if an asset is a dual-listed safety, which means it’s listed on a U.S. alternate and a Canadian alternate, solely the Canadian-listed asset is out there. (Learn much more in our Wealthsimple evaluate).

Though, initially solely obtainable as a smartphone app, Wealthsimple’s buying and selling companies are actually obtainable for browser as properly. And it has expanded its funding choices to incorporate ETFs and shares on further exchanges CBOE Canada, CSE, and restricted securities on BATS). It additionally presents near 60 cryptocurrencies (bitcoin, ethereum, dogecoin and others); and was the primary Canadian platform to supply buying and selling in fractional shares of a restricted variety of U.S. and Canadian corporations (Shopify, Google, Amazon, Tesla). However Wealthsimple nonetheless doesn’t provide worldwide (non-U.S.) equities or different funding belongings that one can discover on Questrade.

As for account sorts, Wealthsimple presents private (non-registered) accounts, TFSAs and RRSPs—and that’s it. Cryptocurrency could be held in non-registered accounts solely—nevertheless, crypto ETFs could be held in registered accounts. Know, although, that Questrade’s presents many alternative registered accounts, together with RRSPs, TFSAs, registered schooling financial savings plans (RESPs), locked-in retirement account (LIRA), retirement earnings fund (RIF), life earnings fund (LIF) and first residence financial savings account (FHSA). Questrade was the primary monetary instiution to supply FHSAs, really. It additionally presents taxable non-registered accounts (margin and overseas alternate market accounts). Nonetheless, Questrade doesn’t but provide crypto buying and selling.

One other huge distinction between Questrade and Wealthsimple? Entry to market information and analysis instruments. Questrade presents free real-time market information, whereas Wealthsimple has as much as a 15-minute delay on quotes. This implies the value for an funding you see displayed in your display is probably not what you really pay/get if you execute your commerce. Questrade additionally presents a set of free and paid information packages for mutual funds, IPOs, intraday buying and selling and stuck earnings merchandise.

However a giant similarity is that Questrade and Wealthsimple additionally adividend reinvestment plans (DRIPs), which mechanically reinvests your dividend funds. Moreover Questrade presents free Elite Membership to the Passiv app, which helps you to automate deposits and purchases of shares and ETFs.

Each Questrade and Wealthsimple Commerce have immediate deposit options that enable buyers to make trades instantly after depositing funds, as much as sure limits. Questrade presents immediate deposits of as much as $10,000. (Our in-depth evaluate of Wealthsimple Commerce right here.)

How do Questrade and Wealthsimple examine?

Right here’s an in depth breakdown of how the 2 on-line brokerages examine:

Backside line: Ought to DIY buyers select Questrade* or Wealthsimple Commerce*?

For cost-conscious buyers in Canada, the draw of commission-free trades could also be purpose sufficient to signing up for Wealthsimple. Add to {that a} user-friendly and intuitive platform, the flexibility to commerce cryptocurrencies and a leading edge money/financial savings account (with spending card) that seamlessly integrates together with your investing accounts, then Wealthsimple can look like the plain selection. Nonetheless, Questrade often is the higher possibility for self-directed buyers who:

• Wish to commerce U.S. shares and ETFs. Wealthsimple’s 1.5% foreign money conversion payment makes investing in U.S. shares and ETFs expensive. Whereas, technically, Questrade additionally expenses a foreign money conversion payment, it doesn’t apply so long as you retain these investments in U.S.-dollar belongings indefinitely. Wealthsimple, alternatively, requires all belongings to be held in Canadian {dollars} (until you pay $10 per thirty days for a U.S. greenback account), which suggests you incur the foreign money conversion payment with each relevant commerce. (Learn this, for a deeper dive on Questrade’s charges when it launched its app.)
• Are retired or have younger kids/grandchildren. These buyers might wish to open retirement earnings funds (RIFs/LIFs) or RESPs, which aren’t but provided by means of Wealthsimple.
• Desire a wider selection of investments. As talked about above, Wealthsimple inventory and ETF choices are restricted, and it doesn’t provide different belongings that Questrade does, reminiscent of mutual funds, bonds, GICs, worldwide equities or treasured metals. Questrade’s sturdy funding and account choices make it the dealer of selection for buyers who need a full slate of choices obtainable to them.
• Desire to arrange automated companies. Questrade’s free Passiv membership permits buyers to take a comparatively hands-off method to their DIY investments—successfully permitting them to imitate a robo-advisor service for his or her investments.
• Need actual time granular information. For those who’re an energetic commerce or an intermediate to superior investor who loves sifting by means of information and funding analysis, Questrade’s information and evaluation instruments may make the platform much more engaging to you.

Examine one of the best on-line brokerages in Canada>

Robo-advisor comparability: Wealthsimplevs. Questwealth Portfolios

Wealthsimple launched its a robo-advisor, which is its managed investing service in 2014 (it then referred to as Wealthsimple Make investments). That was the identical yr Questrade added its personal providing of “pre-fab” portfolios for buyers, referred to as Questwealth Portfolios. Shoppers for both spend a couple of minutes on-line, submitting solutions to questions on their age, funding targets and danger urge for food. Based mostly on the solutions, the algorithm recommends the portfolio of diversified low-fee ETFs it deems to be essentially the most appropriate.
One main distinction between the 2 robo-advisor choices is that, whereas Wealthsimple presents three core portfolio choices (progress, balanced and conservative), Questrade presents 5—aggressive, progress, balanced, earnings and conservative. Each companies additionally provide socially accountable funding (SRI) variations of every portfolio. These portfolios are meant for belongings in corporations that prioritize environmental and social considerations and have a optimistic file on human rights and corruption. As well as, Wealthsimple presents Halal portfolios, for many who want to adhere to Islamic legislation with their investments. (Learn our article on Halal investing in Canada.)

The distinction between every portfolio is the ratio between higher-risk investments, reminiscent of Canadian, U.S. and worldwide fairness ETFs, and lower-risk fixed-income ETFs, reminiscent of bonds and GICs. An aggressive portfolio could be weighted towards riskier investments (which additionally provide the opportunity of better returns), whereas a conservative one will embody extra low-risk investments. That can assist you keep that strategic asset allocation, each companies periodically rebalance the portfolios for you.

Each provide the gamut of account sorts for his or her robo-advisor companies.

Thus far, it’s same-same, proper? There are, nevertheless, just a few main variations between Wealthsimple and Questwealth Portfolios:

• Not like Wealthsimple, which depends 100% on algorithms and automation to watch and rebalance your portfolio when mandatory, Questwealth has precise human specialists who handle your portfolio for you, with out the excessive charges that almost all portfolio managers cost for this service. This can be thought of or a foul factor, relying in your standpoint. Whereas some might recognize the human contact, others might want purely passive investing, the place funding choices are automated based mostly on an algorithm with none human intervention.
• Financial savings instruments are one other level of distinction. Wealthsimple has a few high quality companies which can be free and could be useful for these struggling to avoid wasting. The primary permits you to mechanically make investments the 1% rewards out of your Wealthsimple Mastercard. And, for those who deposit your paycheque into your Wealthsimple money account, you’ll be able to arrange automated investments from there.
• Lastly, let’s have a look at their charges. To know how a lot every service prices, you need to have a look at each the general administration payment (which is a share of the full amount of cash you will have invested) in addition to administration expense ratios (MERs), that are decided and charged on every particular person ETF by the ETF supplier—not by the robo-advisor.

• Comparability chart of Wealthsimple and Questwealth Portfolios charges

Right here’s how the charges break down, together with just a few different similarities/variations:

Must you use Wealthsimple or Questrade?

The 2 robo-advisors are good choices for Canadians who wish to outsource energetic determination making for his or her funding portfolio.
When you have no less than $1,000 to take a position chances are you’ll wish to think about Questwealth Portfolios as a result of offers you extra portfolio and account sort choices of the 2.
However for many who don’t have $1,000 available, Wealthsimple is an effective, easy, easy-to-use possibility . And, whereas each provide SRI variations of their portfolios, for many who need a Halal choices, it must be Wealthsimple.

Examine one of the best robo-advisors in Canada >

Comparability of different companies: Wealthsimple Money, Wealthsimple Tax, QuestMortgage

Wealthsimple Money

Wealthsimple Money launched in January 2020, providing purchasers the comfort of an unlimited-transaction, no-fee chequing account, a rewards Mastercard mixed with the advantages of a high-interest financial savings account.

The distinctive proposition of this service is the flexibility to mechanically funding the 1% money again you obtain on spending with the Mastercard—in shares, ETFs or crypto. Additionally engaging is the no-fee facet of the money account: There’s no minimal deposit required, no month-to-month account payment, and you may ship and obtain cash without spending a dime with out the necessity for any safety questions. You may even obtain your paycheque in and pay your payments out of your money account and Wealthsimple Money can be the primary Canadian product Twitter has built-in with its Tip Jar, a characteristic that lets customers of the social media app ship cash to one another. (Take a look at our article on how you can generate income on social media, even for those who’re not a “creator.”)

Different options which can be deliberate for Wealthsimple Money haven’t but come to market as a result of pandemic. These embody:

• Invoice funds
• Digital card
• Direct deposits
• Pre-authorized debit
• Apple/Google Pay
• No FX charges on purchases
• Money card
• ATM money withdrawals

Deposits in a Wealthsimple Money account are protected for as much as $300,000 by the Canadian Insurance coverage Deposit Company (CDIC)—that is 3 times the everyday deposit insurance coverage protection. Wealthsimple is ready to provide this to its prospects as a result of they maintain the money in belief with as much as three distinction banks—every of which gives you as much as $100,000.

Deposits in a Wealthsimple Money account are protected by the Canadian Insurance coverage Deposit Company ().

Questrade doesn’t presently have a comparable service.

Wealthsimple Tax

In early 2021, Wealthsimple launched a free tax prep and submitting service referred to as Wealthsimple Tax after buying software program maker Easy Tax. You don’t must be an current Wealthsimple shopper to make use of the service.
If you want, you’ll be able to pay $30 to “improve” your return, which entitles you to precedence e-mail responses from Wealthsimple’s help group and extra help if the CRA elects to audit your return. (For extra data, see our full Wealthsimple Tax evaluate.)

Questrade doesn’t presently have a comparable service.

QuestMortgage

Questrade now presents current purchasers mortgage companies offered by Group Belief Firm. Launched in March 2021, QuestMortgage boasts low charges (4.89% to five.85% as of mid-June 2023) and beneficiant prepayment privileges (lump sum funds of as much as 20% of the unique steadiness yearly; and doubling up on mortgage funds at any time).
The applying course of for a brand new or refinanced mortgage is finished completely on-line, with a group of mortgage advisors obtainable to assist.
Wealthsimple doesn’t presently have a comparable service.