Wealthsimple and Questrade are a popular pair of online brokers with a variety of products. They have do-it-yourself investing, robo advisors, and more.
Either of thes products will help your investments grow faster, and the fees are nice and low too.
Here's our comparison – Questrade vs. Wealthsimple, to help you decide which one may be better for you.
Key Takeaways
- Wealthsimple and Questrade are 2 popular online brokers in Canada.
- Both brokers offer self directed and robo advisor platforms.
- Each of them also offers an assortment of other products.
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At a glance – Wealthsimple vs. Questrade
First, here are the various products that both Wealthsimple and Questrade offer.
| Wealthsimple | Questrade | |
|---|---|---|
| Self-Directed Investing | Wealthsimple Trade | Questrade Self-Directed |
| Robo Advisor | Wealthsimple Invest | Questwealth |
| Other Products Offered | Wealthsimple Crypto Wealthsimple Tax Wealthsimple Cash |
Questrade Mortgage |
What is self-directed investing?
Self-directed investing is as the name implies. You are in charge of your investments – you buy the funds you want, and make adjustments as you go.
Because you’re the one doing all the work, knowing the basics of investing will tell you the fees are quite low.
What is a robo advisor?
A robo advisor, on the other hand, has a computer at the controls. When you fund your account, a computer takes over, and purchases the funds for your pre-defined portfolio.
There are some additional costs over what you would pay with self-directed investing, but it’s far lower than paying an actual financial advisor to handle your investments.
So what are you paying for? Basically, with a robo advisor, it’s set and forget. it’s set it and forget it. You simply set your portfolio to auto-fund, and a computer takes over funding and balancing your account.
You don’t have to do anything but sit back and watch your money grow.
Wealthsimple vs. Questrade robo advisors
Let’s start with looking at robo advisors. Wealthsimple offers Wealthsimple Invest, while Questrade has Questwealth.
| Feature | Wealthsimple Invest | Questwealth |
|---|---|---|
| Minimum balance | None | None |
| Portfolios | * Classic * Socially Responsible * Halal |
* Questwealth Portfolios * Questwealth Socially Responsible |
| Management Fee Structure | * 0.5% on up to $100,000 in deposits * 0.4% between $100,000 to $500,000 in deposits * 0.2% to 0.4% afterwards |
* 0.25% on balances up to $99,999 * 0.2% afterwards |
| MERs | * Classic: 0.12% – 0.15% * Socially Responsible: 0.21% – 0.23% * Halal: 0.25% – 0.5% |
* Questwealth Portfolios: 0.17% – 0.22% * Questwealth Socially Responsible: 0.21% – 0.35% |
| Account Types | * RRSP * TFSA * Personal * RESP * RRIF * LIRA * Joint * Business |
* RRSP * TFSA * Cash * RESP * RRIF * LIRA * RLIF * Joint |
| Other features | * Covers transfer fees * Wealthsimple Premium and Generation for even more features |
None |
Here’s a closer look at what these robo advisors are offering.
Minimum balance
Many investment accounts require a minimum deposit before getting started. Without it, you won’t be able to start anything.
But that’s not the case here. Both Wealthsimple and Questrade have no minimum deposit requirements, meaning you could start investing with as little as $1.
Fees
There are 2 types of fees that come with robo advisors – management fees and Management Expense Ratios, also known as MERs.
Here’s what both Wealthsimple and Questrade will charge you for fees.
Management fee structure
First, we have the management fee. This is what Wealthsimple and Questrade will charge you for having an account with them.
While a computer is doing most of the work, there are still people who have to design algorithms and oversee everything to make sure everything is working properly.
Based on maintaining a balance of $10,000, here’s what you would pay to each of them in one year.
Questwealth has a bit of an advantage here, having a management fee that’s half of what Wealthsimple offers.
MERs
Just like with robo advisors, besides management fees, the other fees to pay are MERs, or Management Expense Ratios. This is the fee the fund collects to manage it.
You don’t pay this directly. To get the amount needed to maintain the fund, the fund company takes out their expenses from the total value of the fund.
It basically serves to lower the actual return of the fund. Many mutual funds in Canada can be 2% or more.
Luckily, Wealthsimple and Questrade use low cost ETFs (exchange traded funds), and have low MERs.
Here’s the range for each of them, based on their standard portfolios.
You’re looking at a slightly lower number for Wealthsimple. And of course, these numbers can change if Wealthsimple and Questrade change the funds inside their portfolios.
Investment options
Both Wealthsimple and Questrade offer a few different options for investments.
They both offer a standard portfolio, but they have a few more options than that.
They both offer socially responsible investing. These portfolios have funds that invest in companies that have high ethical standards and have low carbon emissions.
Here’s what Questrade focuses on for their socially responsible portfolio:
Wealthsimple offers one more option. They have a Halal portfolio which only has investments that comply with Islamic law.
Account types available
When it comes to different account types, both Wealthsimple and Questrade have a full suite of options.
Whether you want a basic account, or want a registered account, like an RRSP or TFSA, these companies have you covered.
Questwealth
Wealthsimple managed investing
Wealthsimple vs. Questrade self-directed investing
If you’re the hands-on type, and want to be in full control of your investments, then you can get into self-directed investments.
Both Wealthsimple and Questrade have self-directed investment platforms.
| Feature | Wealthsimple Trade | Questrade |
|---|---|---|
| Minimum Balance | None | $1,000 |
| Account Types | TFSA, RRSP, personal | * TFSA * RRSP * Spousal RRSP * LIRA * RIF * LIF * RESP * Many others |
| ETF Fees | None | Free to purchase, 1 cent/share to sell, with a minimum of $4.95 to a max of $9.95 |
| Stock Fees | None | 1 cent per share, minimum of $4.95 to a max of $9.95 |
| Other Investment Fees | No other investments available | * Mutual funds: $9.95 per trade * Options: $9.95 pre trade + $1 per contract * Precious metals: $19.95 USD per trade * Bonds & GICs: No cost, but need a min purchase of $5,000 * Foreign currency, commodities: varies * International equities: 1% of the trade value |
| Inactivity Fees | None | None |
| Other Features | For a $10 monthly fee, can buy/sell stocks in USD without paying foreign exchange fees, and get access to an increased instant deposit of $5,000 | Can pay up to $89.95 to get enhanced data streaming |
Investment options
Each of these services offers different investment types.
Wealthsimple keeps it basic. You can only buy and sell ETFs and stocks.
If you want more than that, you’ll have to turn to Questrade.
Here’s what you can invest in:
- ETFs,
- stocks,
- options,
- mutual funds,
- bonds,
- GICs,
- foreign currency,
- commodities,
- precious metals, and
- international equities.
Questrade has a huge advantage in this department – more choices for your investment dollars.
Investment fees
So that’s what you can invest in, but what about pricing?
Wealthsimple has a major advantage – they don’t charge anything for buying and selling ETFs and stocks.
Questrade on the other hand, will charge you between $4.95 to $9.95 when you buy and sell stocks. ETFs are free to buy, but you’ll be charged $4.95 to $9.95 when you go to sell them.
But what about Questrades other options? Here’s the cost for each of them.
| Investment | Cost |
|---|---|
| Mutual Funds | $9.95 per trade |
| Options | $9.95 per trade + $1 per contract |
| Bonds & GICs | No cost, but requires a min purchase of $5,000 |
| Precious Metals | $19.95 USD per trade |
| International Equities | 1% of the trade value |
| Foreign Currency And Commodities | Spreads as low as 0.08 pips |
Lots of different fees here, but if any of these investment options interest you, you’ll be able to access them.
Other fees
With investment accounts, there are other fees to pay besides purchasing funds.
Inactivity fees
If you don’t make a trade within a certain time period, many investment brokers will charge you an inactivity fee.
Wealthsimple and Questrade won’t do that. They won’t charge you any inactivity fees. So if you stay away for a while, there won’t be any surprise fees waiting for you when you log back in.
Account fees
What about actually holding an account?
Again, both platforms won’t charge you a fee for keeping an account open.
But, they both offer paid options with more features.
Wealthsimple offers Plus. For $10 per month. You won’t pay any foreign exchange fees on U.S. trades, and you’ll get an increased instant deposit limit of $5,000.
Questrade offers a few different packages. You can pay between $19.95 to $89.95 and get advanced data tracking.
Want to learn more about direct investing fees? Here’s what they are, and what the banks charge.
Account types available
When it comes to the different types of accounts available, the options are like the investments you can get – one has plenty of options, and the other keeps it basic.
For Wealthsimple, you get 3 choices – TFSA, RRSP, and personal accounts.
With Questrade, you get this long list of options:
- TFSA,
- RRSP,
- spousal RRSP,
- LIRA,
- RIF,
- LIF,
- RESP, and
- many more.
Questrade
Wealthsimple Self-Directed Investing
Other products available with Wealthsimple and Questrade
Wealthsimple and Questrade offer more than just self-directed investing and robo advisors.
Here are the other products offered.
Wealthsimple Crypto
Looking to invest in crypto currency? Wealthsimple Crypto offers a long list of crypto currencies you can invest in. Whether you want basics like Bitcoin or Ethereum, or some unique hard-to-invest-in currency, Wealthsimple has you covered.
As for the fees? There is no fee to open an account. You’ll simply pay a fee of between 1.5% to 2% when you make a transaction.
Just note that you can only open a non-registered account – registered accounts like a TFSA or RRSP aren’t available.
Wealthsimple Crypto
Wealthsimple Tax
Looking for help doing your taxes? Wealthsimple has just the tool for you with Wealthsimple Tax.
It’s a free service that can handle the tax return of a typical Canadian. They can draw your info from the CRA, and can make the whole process of filing your taxes simple.
All they ask for at the end is for a donation. If you feel like leaving one, you can do so.
Wealthsimple Tax
Wealthsimple Cash
Wealthsimple also offers a top-notch savings account with Wealthsimple Cash. You'll earn 2.5% interest on your balance. If you're a Premium or Generation client, your rate is even higher.
This account also comes with a prepaid card for easy access to your money. You'll pay no foreign exchange fees on any purchases not made in Canadian dollars, and they'll reimburse you for any fees you may pay at any ATM worldwide.
All this is for no monthly or annual fees. Just note there are no registered versions of this account.
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Questrade Mortgage
Questrade Mortgage is exactly as it sounds. Questrade can offer anyone a mortgage, with competitive rates and terms to choose from.
They also offer generous prepayment terms, and an easy online experience.
Questrade or Wealthsimple – which one for you?
So the big question – which of these services is better for you?
There are definitely situations when one is better than the other.
When to choose Wealthsimple
For self-directed investing, as long as you’re simply interested in the basics of ETFs and stocks, Wealthsimple is your better option, for the simple fact there are no trading fees – period.
As for the robo advisor, Wealthsimple Fees are a little higher. However, if you can make more than $100,000 in deposits, you’ll get comparable fees when accounting for MERs and get some more advanced features. Plus, if you want to invest according to Halal principles, Wealthsimple is your only choice.
When to choose Questrade
For the self-directed investor, Questrade’s big advantage is the different types of investments you can get.
If you want more than just ETFs and stocks, Questrade is your answer, with far more investment types for you to consider.
For most people, it’s also the better robo-advisor, simply because they have lower fees.
With all this said, you can’t go wrong with either of them.
A big bank online investment firm
The big banks also offer self-directed investing. Let’s take a look and see what one of them has to offer – CIBC Investors Edge.
First, here are the types of investments they offer:
- stocks,
- ETFs,
- options,
- mutual funds,
- GICs,
- fixed income,
- precious metals,
- structured notes, and
- IPOs
How much does it cost to trade? Here’s the costs for various investments. CIBC Investors’ Edge also offers active trader pricing. You’ll qualify for a lower price if you make at least 150 trades in one quarter.
| Investment Cost | Regular Cost | Active Trader Cost |
|---|---|---|
| Stocks and ETFs | $6.95 per trade | $4.95 per trade |
| Mutual Funds | $6.95 per trade | $6.95 |
| Options | $6.95 + $1.25 | $4.95 + $1.25 |
As for the types of accounts you can open, all the standard types are here, plus some extras:
- TFSA,
- RRSP,
- RESP,
- RRIF,
- LRSP,
- PRIF,
- LIRA,
- LRIF, and
- cash.
WIth that said, there are some annual fees to maintain an account. How much you’ll have to pay depends on the account type.
For TFSA and RESP accounts, there are no annual account fees.
For all other registered accounts, as well as non-registered accounts, you’ll pay $100 if your balance is less than $25,000. If your balance is more than that, there is no annual fee.
All told, CIBC has a competitive offering when it comes to self-directed investing, especially if you’re a frequent trader.
CIBC Investor's Edge
Bottom line on Wealthsimple and Questrade
Wealthsimple and Questrade are superb choices for anyone who wants to get into investing.
Whether you’re looking for self-directed investing or a robo advisor, Questrade and Wealthsimple are 2 choices you should be seriously looking at.
Do you invest with either of these platforms? What have your experiences been?
Let us know in the comments below.
FAQ
What is Wealthsimple?
Wealthsimple is an online investing platform. They offer a variety of products, including
- self-directed investing,
- robo advisor,
- crypto currency exchange, and
- a free tax service.
What is Questrade?
Questrade is an online investment broker, and they offer both self-directed investing and a robo advisor. Questrade also offers mortgages.
How do Wealthsimple and Questrade compare?
Wealthsimple and Questrade are somewhat similar. They charge low fees and offer a variety of products and services. When it comes to extra products, Wealthsimple offers tax services and a crypto exchange, while Questrade offers mortgages.
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