Product I Love: Wealthsimple

This was originally published on the Connected blog in 2019. Connected was acquired by Thoughtworks in April 2022.

The first time I was introduced to Wealthsimple was through an advertisement on TV. I have to say, they do a great job marketing their product. Their angle is that they greatly simplify the confusing field of investing while retaining the nuances and opportunity for profit. This was backed up by a lot of my friends who constantly recommended it to me, explaining how intuitive it was on your phone and how you didn’t need a lot of prior financial knowledge to use it.?

Wealthsimple provides a suite of products that brings investing to the consumer. Instead of going to your bank, you can go online and put your money into an investment account where their cutting-edge robo-advisory technology invests for you based on your financial goals . Immediately after you sign up, you get a survey that asks what your goals are. Wealthsimple will then set up a portfolio to help you achieve those goals.?

Simple to Use

Robo-advisory is the latest trend in investment management that uses highly specialized software to do the job of wealth managers or investment advisors – people who decide what type of investments you should be making and then work with those investments over time. With this product, they are taking away the high fees that you would normally pay a human to do while saving you time.?

When you open an account with a robo-advisor there are two main advantages. The first is lower fees where the investor is only charged 0.5%. Secondly, as the market changes, robo-advisors can automatically rebalance your portfolio for free using specialized software to do the job of investment advisors.

I first started using Wealthsimple about a year ago to dip my toes in the financial world. I created my first Tax-Free Savings Account (TFSA) with them and use it to this day. I think the thing that sets Wealthsimple apart is that you don’t need to have a deep understanding of investing and finance to use it. In fact, most people don’t know the intricacies and specifics of TFSAs and RRSPs which can make them anxious about investing. Wealthsimple cares about its customers which you can see through their business practices, low fees, and perks.?

For example, if you have a TFSA with a bank but want to bring your money to Wealthsimple, they will cover the transfer charges. They also have mechanisms in the app that will notify you if you are over-contributing to your TFSA. In addition, their customer service is top notch – whether it be through email, on their website, or on the phone their customer service representatives do a great job of answering your questions or addressing any problems you may have.?

When you compare Wealthsimple with other investment firms, you typically have to meet with an actual human or look at a giant book and try to figure out what you want. Wealthsimple removes both of those factors and allows for an easy onboarding to use your services.

Great Canadian FinTech Product

There are many similar products that exist in the United States but this is one of the few that was founded in Canada. I love supporting Canadian tech and, in my mind, Wealthsimple being a Canadian company makes it more trustworthy. It gives Canadian users peace of mind because they know that Wealthsimple understands the Canadian market.?

Compared to many other countries, Canada has one of the highest investment management fees. Wealthsimple’s biggest selling point for me was that its fees are minimal. This is the best starting point for people who don’t know much about investing. The fee charge is lenient because they’ve already established portfolios, essentially the fee is around 0.5% for your first $100,000. When you sign up for their products, everything is taken care of online. Since using Wealthsimple, I’ve seen how powerful investing can be. If you keep your money sitting in a bank it will gain minimal interest and lose value. What people should realize is that you can take that money and derive increasing value from it.?

Financial Investment Resources

While my money was working for me in my TFSA, I did my homework to become more knowledgeable about finance and investing. I read a lot of Reddit threads on personal finance ; specifically, I found an archive on first-time investing to be very helpful. I also read a few books that I highly recommend called The Value of Simple and Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School , assuming that you have no knowledge of investing. All of this research built my confidence and inspired me to take an active role in my financial planning. Sidenote: The Value of Simple has a Canadian perspective on investing. I really care about what I spend on now and how to be more efficient with my money . I’ve never really had an interest in investing until I used Wealthsimple. Hands down, my last piece of advice is to make your money work for you.?

The statements and opinions expressed in this article are those of the author(s) and do not necessarily reflect the positions of Thoughtworks.