Introduction
Investing in the stock market is a great way to build wealth over time, but it can be overwhelming for beginners. That’s where online brokers come in. In Canada, two of the most popular online brokers are Questrade and Wealthsimple. In this article, we’ll compare the two and see which one is better for your needs.
Background
Questrade was founded in 1999 and is headquartered in Toronto. It’s known for its low fees and extensive investment options. Wealthsimple, on the other hand, was founded in 2014 and is headquartered in Toronto as well. It’s known for its easy-to-use platform and socially responsible investing options.
Fees
When it comes to fees, Questrade is the clear winner. It offers free ETF purchases and has some of the lowest trading fees in the industry. Wealthsimple, on the other hand, charges a 0.5% management fee for its basic account and a 0.4% management fee for its premium account.
Investment Options
Both Questrade and Wealthsimple offer a wide range of investment options, including stocks, bonds, ETFs, and mutual funds. However, Questrade has a more extensive selection of investment options, including options trading and forex trading.
User Experience
When it comes to user experience, Wealthsimple is the clear winner. Its platform is easy to use and has a clean and modern design. Questrade, on the other hand, has a more complicated platform that can be overwhelming for beginners.
Mobile App
Both Questrade and Wealthsimple offer mobile apps for trading on the go. However, Wealthsimple’s app is more user-friendly and has a more modern design.
Customer Service
Both Questrade and Wealthsimple have excellent customer service, with knowledgeable representatives available via phone, email, and live chat. However, Questrade has longer wait times for phone support compared to Wealthsimple.
Security
Both Questrade and Wealthsimple take security seriously and use bank-level encryption to protect customer data. However, Questrade has an additional layer of security with two-factor authentication.
Socially Responsible Investing
Wealthsimple is known for its socially responsible investing options, which allow investors to invest in companies that align with their values. Questrade, on the other hand, does not offer any socially responsible investing options.
Education and Research
Both Questrade and Wealthsimple offer extensive education and research resources for investors. However, Questrade has more in-depth research reports and analysis tools, while Wealthsimple has more beginner-friendly educational resources.
Account Types
Both Questrade and Wealthsimple offer a variety of account types, including registered accounts like RRSPs and TFSAs. However, Questrade also offers corporate accounts and margin accounts, which may not be suitable for all investors.
Investor Protection
Both Questrade and Wealthsimple are members of the Canadian Investor Protection Fund (CIPF), which protects investors against bankruptcy of member firms. However, Questrade also has additional insurance coverage for up to $10 million per account.
Integration with Other Services
Wealthsimple has partnerships with other financial services, such as the Mint budgeting app and the TurboTax tax preparation software. Questrade, on the other hand, does not have any partnerships with other financial services.
Conclusion
Both Questrade and Wealthsimple are excellent choices for Canadian investors, but which one is better for you depends on your individual needs. Questrade is better for advanced investors who want a wide range of investment options and low fees, while Wealthsimple is better for beginners who want an easy-to-use platform and socially responsible investing options.
