Wealthsimple Self-Directed Investing Review

Wealthsimple offers commission-free trading in its Self-directed Investing account, which is powered by technology and allows for low-cost execution. This approach differs from other brokerages that charge fees for trading stocks and ETFs. Wealthsimple's focus on technology and low costs provides an attractive option for investors looking to manage their investments efficiently. However, it's important to consider the limitations of the platform, such as the lack of research tools and financial statements, which may not be suitable for all investors. 1. **Commission-Free Trading**: Wealthsimple's Self-directed Investing account allows for commission-free trades, which is a significant advantage over other brokerages that can charge up to $10 per trade. This cost-saving feature is made possible by the company's digital-first approach and the low cost of executing trades for brokerages. 2. **Technology-Powered Platform**: Wealthsimple's brokerage is low-cost due to its digital-first approach, which enables the company to keep trading costs low. This is a key differentiator for the firm, which aims to provide an affordable financial solution for its customers. 3. **Limited Research and Tools**: While Wealthsimple offers commission-free trading, the platform lacks certain features that more experienced investors may require, such as research tools, financial statements, and analyst reports. This minimalist approach may not appeal to active traders or investors seeking in-depth market analysis. 4. **Currency Conversion Fees**: Wealthsimple charges a 1.5% currency conversion fee on USD investments in its self-directed investing platform. Customers can upgrade to a version with no conversion fees for an additional $10 per month. This fee is an important consideration for investors making international investments. In conclusion, Wealthsimple's commission-free trading and low-cost platform make it an attractive option for investors looking to manage their investments efficiently. However, the lack of research tools and the currency conversion fee are important factors to consider. Wealthsimple is best suited for investors who prioritize simplicity and cost-effectiveness over extensive research and advanced trading capabilities.