Last Updated on May 4, 2022
First of all, I would like to say thank you for checking my Is Wealthsimple a Scam review. Investing for sure is one of our main priorities in life. This is a way of getting ready for our future without any hassle. I know that the reason why you are checking on this review is you have heard about the opportunity to invest with Wealthsimple, and you want to know how legit they are.
Don’t worry, with this review, I will make sure to answer all the questions that you have in your mind. So I don’t want to keep you waiting, let’s get into details.
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What is Wealthsimple?
Wealthsimple is a Canadian robot advisor that offers accounts in Canada, the United States and the United Kingdom to investors. This operates only in early 2014, but already has more than 100000 clients with funds managed in excess of 3 billion dollars. Wealthsimple constructs portfolios as robot advisors using low cost, index-based traded funds (ETF) on the basis of Modern Portfolio Theory (MPT). This helps them through a small handful of funds to create portfolios which include thousands of securities.
The service includes automatic rebalancing, reinvestment of dividends and collecting tax losses. Moreover, financial advisors from Wealthsimple are available to you whenever you need them. This can be an exceptional opportunity, especially for new and small investors who have traditionally struggled to provide access to these services.
Who is behind Wealthsimple?
The founder and CEO of Wealthsimple is a Canadian named Michael Katchen, he is a successful entrepreneur and that the age of the early 20’s he was able to successfully established this company.
Michael Katchen, has been designated as one of Toronto’s top 50 Toronto Life managers by the Financial Post and a change agent by Canadian business magazine. He has received the EY Entrepreneur Of The Year Award for 2016.
How Does Wealthsimple Work?
Like what I have mentioned earlier, the investment approach of Wealthsimple is based on the theory of modern portfolios. This is a Nobel prize winner economist Harry Markowitz’s theory on investment that has shown that by diversifying your investments, you are able to reduce risk and maximize returns.
Wealthsimple does not have any minimum investment compared to its competitors which will require you to have a big investment in their company. However, if you want to invest in their new portfolio which is Socially Responsible Investing (SRI), you need to have a minimum investment of $5000.
How to set up Wealthsimple account?
Signing up for an account with Wealthsimple is very easy. You just need to complete the online application form and answer some basic questions like some of your personal information as well as your past investment experience. Next is having an electronic signature on the Investment Management Agreement and last is verifying your bank information through an online account, you will be asked to enter your account information.
And when it comes to their application process, the process includes a short risk assessment survey to determine your first risk profile and then once the assessment is done you will be given a recommendation on what portfolio you should have. It is a way for them to determine which one is good for you. The portfolio that they are going to recommend you will be based on your financial goals, risk tolerance, and your level of investment knowledge.
But you also have the right to change it anytime you want. You may have different accounts from them which can have different portfolios as well. They are really open when it comes to this, they are more open for email or call to discuss your portfolio and change it the way you want it.
Is Wealthsimple FDIC insured?
Based on what I researched about this, Wealthsimple is not insured, however, it is CDIC insured which means all of your investment is deposited with a Canada Deposit Insurance Corporation or CDIC member institution. Within each type of insured, the CDIC insures up to $100000 of qualifying customer deposits per member entity.
Can You Make Money With Wealthsimple?
I know that most of us the question is if it is really true that we can make money with Wealthsimple. If I am going to base this from what I research over the internet, I can say that you can really earn money from them through investing. It will only depend on the type of portfolio you will have and how much is the money that you will invest with them, that is where it is going to depend on how much you can earn.
How much does Wealthsimple cost?
In this case, it will depend on how much is your budget for investing. Because Wealthsimple offers two different accounts that you can have and the only difference is your initial investment. If you are going to invest less than $100000 you will be recommended to have Wealthsimple Basic account which offers all you need to invest in a diverse portfolio at an annual fee of 0.5% plus you will have a signing bonus of $50 if you use someone’s link which somehow works as an affiliate program.
If you will invest $100000 and up, you will be recommended to have a Wealthsimple Black account. Wherein you will have a lower annual fee of 0.4% plus you have a lot of benefits as well as the following.
- Financial planning with a professional consultant.
- Access to benefits of tax efficiency such as tax losses and tax-efficient assets.
- VIP Special access to over 1,000 airline lounges in more than 400 cities for both you and a friend.
This kind of way to earn money may not work for everybody especially if you don’t have thousands of dollars to invest. But don’t worry you have a lot of alternative ways to earn money online.
What I Don’t Like About Wealthsimple.
After all the reviews and research I read about Wealthsimple, there are things that I know you should somehow think of first. Here are the things that I don’t like about Wealthsimple.
They have high annual fees.
Since the lowest annual fees of Wealthsimple is 0.4%, however, if you are going to check the competitors that they have like Betterment they only have an annual fee of 0.25% which way lower than Wealthsimple currently have. So if you are looking for a lower fee, it would be best to check other companies who offer the same services.
All about investing.
I know for sure that some of us are not capable of doing investment especially if that will require to have thousands of dollars to really say that you can earn. There are a lot of ways to earn money rather than investing in a company like this which is also secured and much convenient for you to use.
What I Like About Wealthsimple.
There are still some things that you may be excited about Wealthsimple. Here are the things that I like about Wealthsimple.
No minimum investment.
It is a good thing that they don’t have a minimum investment, so if you are someone who wants to try Wealthsimple you can start at a very low cost which will suit your budget.
Free stock trading for Canadians.
Canadian investors are now paying $0 in fees to Wealthsimple commercial stocks. This is I believe good news for Canadians who want to try Wealthsimple.
Easy application.
Their application or registration process is smooth and simple as answering an application online. This is also convenient since everything will be processed online including your signature.
Is Wealthsimple a Scam? My Final Verdict.
After all the research I had for this review, I can say that Wealthsimple is not a scam. They are a legit company that gives financial advice to their clients. Maybe because of how they work as a company people think that they are a scam, especially in the kind of niche that they have and will require you to invest a big amount of money, people are only after their safety.
If you think that this will not work for you, you can check on my Wealthy Affiliate Review and discover more ways to earn money online that will not require you to invest a big amount of money.
I hope that this “Is Wealthsimple a Scam” review serves its purpose to you if you have any concerns or suggestions feel free to leave that on the comment box below. Cheers!
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