Wealthsimple vs Questrade: Which is the Right Broker for you?

If you are considering opening a brokerage account with either Wealthsimple or Questrade, you’re in the right place.

We compared the two companies in regards to their account types, offerings, fees, and safety to give you the complete picture before you go with either.

The good thing about Wealthsimple and Questrade is that they have more differences than they have similarities. That will make it an easy feat for you to choose between them.

Let’s start with a table that shows those differences and then we’ll dive a bit deeper into each aspect of this Wealthsimple vs Questrade comparison guide…

Wealthsimple vs Questrade: A Head-to-Head Comparison

Wealthsimple vs Questrade: At a Glance

While both Wealthsimple and Questrade are considered Canadian brokers, they are very distinct from each other due to their main value proposition. This makes it easy for anyone interested to choose between the two.

Wealthsimple is best described as a wealth management service, while Questrade is, first and foremost, a brokerage firm. Both companies can be described as either because they are both, of course.

But Wealthsimple is more focused on people who need help getting started with investing and managing their portfolios. And Questrade is your traditional online broker.

Wealthsimple was founded in 2014 and as of November 2021 it holds over C$15 billion in assets under management. Questrade was founded back in 1999 and it has $25 billion under management as of January 2022.

It’s obvious that even though Questrade is the oldest broker here, Wealthsimple got to manage a lot of money in a much shorter period of activity.

Taking that into account, it’s safe to say that you can’t really go wrong with any of the two brokers here. They’re both prominent enough in their own way.

Wealthsimple vs Questrade: Account Types

Let’s now take a look at the accounts that you can open with each broker. We will first see the registered account types that are available with both of them and the ones that each broker offers but the other does not.

Wealthsimple and Questrade’s Common Account Types

• Tax-Free Savings Account (TFSA)
  
  An investment account that you can use to invest and not get taxed on your gains
• Registered Retirement Savings Plan (RRSP)
  
  A retirement account that you can invest through and reduce your taxes by subtracting  your contributions from your income
• Registered Education Savings Plan (RESP)
  
  An account that is specifically for putting money aside for a child’s education

Wealthsimple (Account Types that Questrade Doesn’t Offer)

• Spousal Registered Retirement Savings Plan (Spousal RRSP)
  
  A retirement account that a couple can use to lower the tax they would be paying if they’re in a different tax bracket
• Locked-in retirement account (LIRA)
  
  A retirement account that can be used to transfer a pension plan’s funds to

Questrade (Account Types that Wealthsimple Doesn’t Offer)

• Individual Margin Account
  
  A brokerage account that allows you to use leverage to invest by borrowing money against the investments in your account

If this is the first time opening a Questrade account, you will get $50 in free trades after you fund your account with at least $1,000.

Wealthsimple vs Questrade: Offerings and Fees

Let us now examine the offerings/assets that each broker provides. Again, we will first talk about the ones that both brokers offer and then what is exclusive with each broker in regards to the comparison between the two.

Wealthsimple and Questrade’s Common Offerings

Everything that Wealthsimple offers regarding trading securities falls under the Wealthsimple Trade category (if you’re opening an account for the first time, you’ll get $50 if you trade at least $150). Questrade doesn’t categorize the assets it offers because it doesn’t provide as many different financial services as Wealthsimple.

Trading ETFs and stocks will cost you nothing at all with Wealthsimple, while Questrade charges $4.95 to $9.95 per transaction.

Currency conversion is 1.5% with Wealthsimple and 1.5% to 2% with Questrade.

As for real-time quotes, Wealthsimple charges $3 per month while Questrade grants you access for free.

Wealthsimple (Offerings that Questrade Doesn’t Have)

Wealthsimple Invest

Wealthsimple’s most famous offering, Wealthsimple Invest, is its main wealth management service. It will create a personalized portfolio for its customers and invest their money into Exchange Traded Funds (ETFs). Wealthsimple will also give you a $50 bonus when you open and fund your first Wealthsimple Invest account with at least a $500 initial deposit.

If you have less than $100k to invest, this service will cost you a 0.5% management fee that will be applied annually. For more than $100k, the fee is 0.4%.

Wealthsimple Cash

The company also offers a money transfer service called Wealthsimple Cash and it costs nothing at all.

Wealthsimple Crypto

Those who want to trade crypto will be able to do so through the broker’s Wealthsimple Crypto service.

Just keep in mind that you won’t have access to every cryptocurrency out there; only the most prominent ones. Wealthsimple charges 1.5% to 2% of the total sum invested per transaction.

Note: While Questrade doesn’t offer crypto, you can buy ETFs that get you exposure to cryptocurrencies.

Questrade (Offerings that Wealthsimple Doesn’t Have)

Preferred Stocks

Buying and selling preferred stocks costs the same as trading common stocks.

Options

Trading options with Questrade will cost you $9.95 per transaction and $1 per contract, which is a bit high.

Bonds and Canadian Guaranteed Investment Certificates

Buying bonds and Canadian Guaranteed Investment Certificates with Questrade requires a minimum investment of $5,000.

International Equities

International equities will cost you 1% of the trade value and the minimum required investment is $195. Note that exchange or stamp fees apply as well.

Precious Metals

When it comes to precious metals, Questrade charges US$19.95 per transaction.

Mutual funds

Trading mutual funds will cost $9.95 per transaction.

IPOs

IPOs cost the same as if you trade any stock, except for when you invest $5,000 or more per transaction, which in this case the service is free.

Wealthsimple vs Questrade: Safety

When it comes to safety, you won’t have to worry about either broker.

Wealthsimple Invest and Wealthsimple Trade accounts are held by ShareOwner Inc. which is a Canadian Investor Protection Fund (CIPF) member and is regulated by the Investment Industry Regulatory Organization of Canada (IIROC).

This means that if Wealthsimple goes bankrupt, your money is insured up to $1 million per account by CIPF.

The same applies to Questrade, but this broker also has private insurance and ensures up to $10 million per client, on top of the $1 million insurance that CIPF provides.

Conclusion: Which is the Right Broker for you?

As you can see, Wealthsimple is more for those who want to invest in a hands-off way and don’t want to be bothered with things like dividend re-investing and rebalancing on their own.

If you intend to buy some prominent stocks and ETFs, the $0 commission is a plus you need to consider when it comes to Wealthsimple.

Questrade, on the other hand, is ideal for those who are looking for access to a greater variety of assets like preferred shares, international stocks, mutual funds, precious metals, bonds, and options. But you will have to be prepared for the high fees that come with some of these offerings.

Did you find this Wealthsimple vs Questrade comparison useful? If so, please consider sharing this post with others who may be torn between the two brokers. Also, leave a comment down below if you have any questions…

Open a Questrade account or Wealthsimple account today.

Don’t forget that whatever broker you decide to go with, it’s a good idea to connect your brokerage account with the rest of your assets to always have the complete picture of your finances.

That’s why we created Wealthica; to help people like you who have (or are going to have) multiple accounts that their net worths are tied to.

Wealthica is a free financial data aggregator that will connect all of your accounts and give you access to what most people don’t have; a definite idea of where you are financially so you know where to go.

Sign up to Wealthica today and get control of your finances…

Wealthsimple vs Questrade: FAQ

Should I use both Questrade and Wealthsimple?

You should use both Questrade and Wealthsimple if you are looking for a wealth management/money transfer service and you also need access to more offerings like international stocks, mutual funds, options, etc.

Is Questrade the same as Wealthsimple?

Not exactly the same. Both companies differ in regards to what their main offering is. Questrade is, first and foremost, an online brokerage firm, while Wealthsimple is more focused on wealth management services.

Can I transfer stocks from Wealthsimple to Questrade?

Yes. Wealthsimple states that it will move your account to another institution, with no fees charged. Questrade also states that it accepts account transfers from other institutions and it won’t charge you a fee for the service.