Wealthsimple Review 2022

Bob Haegele By: Bob Haegele

January 27, 2022

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Wealthsimple

4.5/5

4.5 rating based on 5 ratings

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In a nutshell: Wealthsimple is a robo-advisor that offers some unique portfolios for those who want to leave their financial portfolio to reliably grow over time but with a focus on certain investment goals. With no account minimums and an easy set-up for new investors, this Wealthsimple review can help you get a stable footing on your finances.

Account FeesAutomationAccount Minimums
0.5% For basic subscribersAutomatic portfolio re-balancingNo account requirements

Pros & Cons

Pros

  • Management Fees
  • Lack of Intricate Tools
  • Personal Interaction

Cons

  • Retail Roundup
  • Portfolio Advice
  • Fractional Shares

In This Article

What Makes Wealthsimple Different?

Wealthsimple advertises itself as “democratizing”, giving the tools to financial success and independence to everyone. Wealthsimple’s corporate philosophy is focused on allowing everyone to accumulate wealth.

The firm dedicates itself to making the financial world, what was once a bastion of esoteric knowledge to an opportunity that everyone can access, regardless of age, education level, or investable income.

The Toronto-based company has become especially popular with younger retail investors. It features some investing strategies based around various social causes, from climate change to assuring that Muslim investors can be certain that all of their assets are halal.

Wealthsimple’s profits made from RESP management fees even go to Canada’s Wealthsimple Foundation, a philanthropic organization helping youth achieve funding for their educations.

Wealthsimple Pros:

  • Simplicity – Investors can get started as easily as providing one’s social insurance information, answering some basic questions about your current financial holdings and investment interests. Your portfolio ratio will then be determined by selecting your risk tolerance through several options.
  • Moral Investing – Customers who care about more than simply making money can find a great platform in Wealthsimple. The firm is very open about contributing to society while helping users achieve their financial goals. Individuals who want their money to do good will be happy with Wealthsimple.
  • Varying Plans – Whether you have $1 or $1,000,000 to invest in the market, Wealthsimple has a subscription plan for you. From the basic plan to the “generation” option, investors Wealthsimple caters to users of every level of market engagement.

Wealthsimple Cons:

  • Management Fees – While not astronomical compared to brick-and-mortar investment companies, Wealthsimple’s account fees start at 0.5% (0.4% for those investing over $100,000) Betterment’s managerial charges are slightly higher compared to other robo-investors.
  • Lack of Intricate Tools – Some may appreciate Wealthsimple’s streamlined design. This makes it great for beginning investors who won’t feel intimidated by the platform’s simplicity, but experienced investors who want every piece of market information they can get their hands on might yearn for more analytical data.
  • Personal Interaction – Unless you have a lot of funds to invest, Wealthsimple does not offer a lot of personal interaction for its users. The company has no physical branches, so you can’t just walk in and sit down with an advisor on a whim. There is a virtual help center, but basic members do not have access to personal financial advisors.

Extra Features:

  • Retail Roundup– After connecting your credit or debit card to the Wealthsimple application, you can exercise the option to round every purchase you make with a given card to the next dollar. These extra savings are then added to your portfolio every week. Rather than waiting for a rainy day to bring in a jar of change, you can put that money to work for you right away.
  • Portfolio Advice– All you have to do is upload your most recent portfolio statement, and Wealthsimple’s help center will give professional analysis on your asset ratios, tax efficiency, and how on track you are based on your overall goals and time horizon. This service comes free of charge for everyone.
  • Fractional Shares– A very useful feature for those working with a limited investment pool, Wealthsimple has started offering fractional shares. This means that users can purchase pieces of a blue-chip stock that might be out of their price range in other circumstances. Everyone can invest in Disney and Apple without the cost-prohibitive nature of the price of an entire share.

Is Wealthsimple Worth It?

Wealthsimple does a great job at targeting young, socially conscious investors, and the company does an excellent job of backing up its advertisements. The firm is especially useful for committed Muslims, as it is one of the only robo-investors that offer portfolios that make sure funds are invested in a way that is halal and in accordance with Sharia Law.

As long as subscribers can stomach the slightly elevated managerial fees, Wealthsimple offers subscription plans no matter how much money you have to invest. You can make sure that your funds are going to a good cause while you prepare for retirement, your child’s education, or anything else you’d like to achieve.

Wealthsimple offers plenty of features that keep it in league with other popular robo-investors, but there are some one-of-a-kind features available to certain investors. Observant Muslims and socially-conscious activists can find a platform that supports both their moral, societal and financial goals in Wealthsimple.

If you’d like to break into the market while helping the world, then you can start right here!

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Bob Haegele

About the Author:

Bob Haegele is a personal finance writer, entrepreneur, and dog walker. Bob has been writing about personal finance for three years and now manages several personal finance sites, including The Frugal Fellow, Modest Money, and Blooming Wealth. You can also find him contributing to popular websites such as Yahoo! Finance, MSN Money, and GOBankingRates. You can see more of his work on Muck Rack and Contently, or connect with him on LinkedIn.