Best 5 Wealthsimple Alternatives in Canada 2024

Have you heard of Wealthsimple, one of the popular online investment platforms in Canada? No doubt, it is a top choice for beginners and self-directed investors! But, if you look around, you can find some decent Wealthsimple alternatives. And, that’s what we will be discussing here.

About Wealthsimple

Wealthsimple is a Canadian discount stock broker known for its wide presence, simplified user experience and versatility. Founded in 2014, It is one of the largest asset management companies based in Toronto. No minimum investment requirement and a user-friendly platform make it rank high in the list of Best Robo Advisors in Canada. The company has more than $15 billion of assets under management. WealthSimple Trade is a collection of various financial products. However, there are various Wealthsimple alternatives available in the Canadian markets.

Role of A Stock Broker

But first of all, let’s learn about the role and importance of a stock broker or brokerage firm.

A broker is one of many major participants between the investor or trader and the stock exchange. A broker is a type of middleman who is responsible for making buying and selling transactions of the shares owned by the account holder, on its order. When an investor or a trader makes a buying or selling request on the broker portal, the broker forwards the request ahead to the particular stock exchange it is registered with and hence the placed order is executed.

Importance of a Stock Broker

A broker is important in various ways while making transactions in the market some of which are :

1. Brand Name and the Trust associated:

A broker should be capable enough to handle transactions worth millions done by various over their portal. Trust is the building block of any broking company such that the people authorise it to make their transactions in the market.

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2. User Experience Design:

The user interface of the broking company’s portal also plays an important role. A simple and minimal user interface helps the user avoid confusion in between placing orders and thus improves the overall rating of the broker.

3. Brokerage Charges and Taxes:

The broker company should clearly specify all the charges included in making various transactions on the stock exchange. The commission or brokerage charges should be according to the standard market rate.

5 Best Wealthsimple Alternatives in Canada

The trending Wealthsimple alternatives include the following :

1. TD Direct Investing:

TD Direct investing mainly deals with investments and trading of securities which include individual stocks, exchange-traded funds or ETFs, and mutual funds. It offers various types of resources for the educational purpose of its users like research reports and information about goal-based investing. It has different plans for all types of investors and traders.

It provides different types of accounts to its users like a cash account, a tax-free savings account and a registered retirement savings plan account which serves different purposes for various users. It also provides its services on both mobile and desktop apps.

2. Questrade:

Questrade is a discount broker based in Canada which is in business in the Canadian market for the last 22 years and manages assets of about $30 billion. It is regulated properly by Investing Industry Regulatory of Canada (IIROC) and the Canada Investors Protection Fund (CIPF).  More than 250k accounts open with Questrade annually, it charges no account opening fees and is known for its industry standard and transparent pricing.

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It also provides the facility of pre-built portfolios termed Questwealth Portfolios, where the users can directly invest their capital and the research is carried out by the Questrade portfolio managers for a small fee.  

3. Interactive Brokers:

Interactive Brokers is a low-cost online brokerage platform that allows trading of stocks, stock futures and options, mutual funds and Exchange Traded Funds (ETFs), currencies, and bonds on about 150 international markets. Interactive brokers manage total assets of value up to $12.2 Billion and are regulated by Investing Industry Regulatory of Canada(IIROC).

It also allows the users to issue loans on stocks owned by them. Interactive Brokers is listed on NASDAQ as IBKR and its advanced modern-day technology and detailed portfolio analysis help improve profits and increase trading speeds. Their platform has 2.2 million accounts active and they have earned various awards and recognitions for the same.

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4. CIBC Inverstor’s Edge:

CIBC stands for Canadian Imperial Bank of Commerce. CIBC Investor’s Edge is an online web and mobile trading platform. It helps the account holder to build their portfolio on low commissions. It is suitable for all types of traders, it is easy to get started even for new traders. It has a large number of tools and resources to help the investor to make knowledgeable and informed decisions.

It is suitable for individuals with all kinds of financial goals for any time period. It has various account types based on the user’s requirement and only charges less than $6.95 or less per stock or ETF trade. It supports powerful screening tools to find the right investments and the user can build personalized watchlists for any stock.

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5. QTrade Direct Investing:

QTrade Investing is a Canadian discount brokerage service which offers a wide variety of features to its users like a watchlist for monitoring stocks, financial calculators to plan and meet your goals accordingly, etc. It offers an easy-to-use dashboard experience hence enabling new users to use the platform without complications. It also offers a portfolio creator which helps you create a portfolio according to the user’s specific interests.

Also, helps the individual to gain knowledge of specific topics which are basic prerequisites of the sector the individual is about to invest in. Hence it is a good option for a brokerage account.

Wealthsimple Alternatives

Hence, as many Wealthsimple alternatives exist in the Canadian markets for traders and investors, the above five examples are the best known for their services and their vast market share in the Canadian brokerage industry. The individuals can look up to these alternatives and consider any of them as per the requirement and technicals of the services the broker provides to them and open a brokerage account keeping all the factors in mind as opening a trading and brokerage account is a long-term decision.

A certified and trusted broker ensures the safety of the stocks and securities held in the brokerage account for the long term and short term by an individual.

Now, that you have gone through the collection of Wealthsimple alternatives in Canada, which one is your favourite? Do you have any other Wealthsimple alternative to add to the list? Which stock broker you prefer investing with and why? Feel free to share your opinion.

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