Want to choose the right investment platform? In Canada, there are some great options. But you can end up being confused. So, here is Questrade vs Wealthsimple, a simple comparison to make the task easier.
About Wealthsimple
Wealthsimple is famous for offering brokerage-free services in Canada. Also, it is the only one doing so. Users are allowed to have one RRSP and a TFSA account. You know why it’s great? Let’s see:
- The sign-up process is free.
- No annual fees.
- No paperwork is needed.
- No minimum trade requirement.
You can trade in ETFs, stocks, 50+ cryptocurrencies, and even options. Some people also consider it to be a great Robinhood alternative. With no minimum limit, you are allowed to trade with even $1. The major perk of zero commission is that buying and selling is free. Thus, more fun and more profits.
About Questrade
Questrade is a complete giant in Canada with the lowest commissions. Since 1999 to now it has managed over 8bn+ assets. Keeping the competition in mind, it has made buying and trading in an ETF free of brokerage.
What other features does Questrade have? RRSP and TFSA account opening, mobile app for trading user-friendly, free ETFs, users can hold Canadian and US dollars in their account, in case of inactivity no fee is charged and transactions are allowed via VISA cards.
Pros and Cons of Questrade vs Wealthsimple
Before comparing both these platforms right away, let’s figure out the pros and cons of each of them.
1. Wealthsimple
Here are the Pros and Cons of Wealthsimple.
Pros
- They have Zero commission rates.
- No minimum account balance is needed.
- The Website interface is simple and attractive.
- You get a $25 cash bonus and many promotional offers.
Cons
- The variety of accounts is limited.
2. Questrade
Here are the Pros and Cons of Questrade.
Pros
- No charges on ETF purchases.
- You can open multiple types of accounts.
- You can put $50 in free trade.
Cons
- When selling an ETF the brokerage is very high. It starts from $4.95-$9.95. The same goes for stocks.
- The minimum balance requirement is $1,000, which is way too high for beginners.
Comparison between Questrade vs Wealthsimple
In order to compare both we must look for the common features and then decide which one wins. So here is a comparative table showing the results.
| Features | Questrade | Wealthsimple | Result |
| Account Types | TFSA, RRSP, LIRA, Margin, LIF, Joint, Corporate and non-registered | Non-registered, TFSA and RRSP | Questrade is better, as it has more options. |
| Investment instruments | Mutual Funds, stocks, bonds, options, gold, silver, forex and ETFs | Canadian/US stocks & ETFs, crypto and tokens | Questrade is better as it has more investible instruments. |
| Brokerage/Commission/Fees | $0 for ETFs | $0 for every trade | Wealthsimple wins this as their zero commission model is worth it. |
| Conversion fee | CAD to US exchange fee is charged via 175 basis points. | Corporate tax plus 1.50% of the exchange from CAD to US dollar. | Questrade takes the lead as it is more simple. |
| Minimum Account Deposit | You must have at least $1000. | No minimum deposit required. | Wealthsimple takes the upper hand in this. For beginners it is perfect. |
| User Satisfaction | It is easy to find relevant information, navigate across the website, do trade as well as market research. | The platform provides a very sleek interface with all the basic features, activities, performance as well as customer service. | It is a tie. It depends from user to user which platform they prefer more. |
| Mobile App | Yes, there is a questrade mobile app. | Wealthsimple too has a mobile application. | Again it is a tie as both provide multiple access platforms like mobile and a website. |
| Cryptocurrency | No, as of now Questrade doesn’t offer crypto. | Yes, Wealthsimple allows crypto trading. | Wealthsimple is better if you want to trade in crypto and stocks both. |
| Market research & Data | It provides some snaps and quotes of market data to all the users. | Real-time market information is given to all in free. | Questrade is a bit better because the snaps and quotes are sufficient. In wealthsimple the data is in bulk. |
Questrade vs Wealthsimple: Which is better?
Is Questrade the market king or Wealthsimple? This Questrade vs Wealthsimple topic is definitely bugging you. Both these platforms have great features which is why the customers are happy and satisfied. But who is the reigning?
Considering the facts and the prices, Questrade has an edge over Wealthsimple. But we cannot ignore the no brokerage part of Wealthsimple. It distinguishes it from the rest. So, what’s the final verdict?
It totally depends on the user and his needs.
What do you think about Questrade vs Wealthsimple? Comment down your views.