Beanstox’s investing platform enables investors to curate sector-specific diversified portfolios using automation for a fixed fee.
Presently, Beanstox is not available to Canadians.
While Beanstox may not be accessible to Canadians, there are a number of options that allow investors to create diversified portfolios with a similar cost structure.
Beanstox’s platform features a flat fee structure capped at $5/month which cannot be beat, however the below platforms have robust execution capabilities making them a reasonably good alternative to Beanstox.
3 Alternatives to Beanstox in Canada
A low-fee platform that offers access to a variety of asset classes. A great option for advanced traders, as the platform offers a variety of technical tools and market research.
- Ability to purchase fractional shares.
- Low commissions, especially for high-frequency traders.
- The platform is not as user-friendly as other options.
- The pricing structure is complex, and understanding commissions may be difficult at first.
Wealthsimple Invest offers automated diversified portfolios that can be set up based on users’ inputs and risk profile. These robo portfolios are provided for a flat fee as a percentage of assets managed. Such portfolios can be highly passive once invested and have lower fees as a result.
- Wealthsimple has a selection of different portfolios that can be chosen based on an investor’s goals and objectives. For new investors, there are no management fees for up to $10,000.
- Wealthsimple offers this as either a registered or a non-registered account, thereby increasing the product’s tax efficiency.
- Wealthsimple’s portfolios, while great for new investors or for those not wanting to actively manage their investments without compromising on returns, can be vanilla and less active or less discretionary which may not be well-suited for those that want a more hands-on approach.
Questrade’s Questwealth Portfolios offers a selection of diversified, index automated portfolios for a flat fee. These funds can be actively managed based on how the fund is set up and investors can get expert advice from their in-house portfolio managers.
- Questwealth Portfolios are great as they combine automation and active portfolio management that aims to monitor investor portfolios’ and rebalance investments based on market conditions, making it customizable and less of a one size fits all approach. Further, the platform has cashback and other incentives which can cultivate a savings habit for new investors and redirect those savings into long term investments.
- Questrade’s portfolios are reasonably priced, but other products offered such as equity and options trading have a higher commission structure and may make the platform an unattractive ecosystem for active investors that may find value in Questwealth portfolios, but stay away from the rest of the platform.
Interactive Brokers is a great alternative for Canadians.
The costs of trading are extremely low, and there are several different pricing structures to choose from depending on the type of trader you are.
The fixed pricing structure offers trading for as low as $0.005 per share of US equities, with a minimum of $1 and a maximum of 1% of the trade value.
For the tiered structure, pricing starts at $0.0035 for the first 300,000 shares and drops to $0.0005.
As you can see, high-frequency traders are likely to benefit the most from the Interactive Brokers pricing structure.
Aside from stocks, investors also have access to a wide range of other assets, including ETFs, options, futures, FOPs, warrants, structured products, SSFs, currencies, commodities, indices, fixed income, and mutual funds.
Interactive Brokers offers their Canadian clients a variety of account options.
Both registered and non-registered accounts can be created in just a few simple clicks.
TFSA, RRSP, Spousal RRSP, margin, and various trust accounts are all available through the trading platform.
Interactive Brokers also offers the ability to trade fractional shares, except in RRSP and TFSA accounts.
This feature has been highly requested, as it allows for traders operating with small sums of money in their accounts to buy stock in companies with high individual share prices such as Amazon.
The investment platform offers both a mobile application and a desktop application, both of which have an initial learning curve to them.
However, once users get a grasp of the interface, there are a variety of useful features that can be used to conduct research to make better financial decisions.
Wealthsimple is one of the most popular investing platforms amongst investors in Canada.
They provide Canadians with the ability to invest in automated portfolios at a low fee cost structure, making them very attractive against actively managed mutual funds charging significantly higher management fees.
Wealthsimple Invest provides registered and non-registered accounts that can invest in automated portfolios at a low fee cost structure, making it very attractive vs actively managed mutual funds charging significantly higher management fees.
Wealthsimple does a good job of having educational resources available on the platform and other value-added services are available as part of the core offering.
Questrade & Questwealth Portfolios
Questrade is a Canadian investment platform that provides access to US and Canadian financial markets.
Questwealth Portfolios offer automated diversified portfolios for a flat fee as a percentage of assets invested with portfolio managers actively adjusting your portfolio to maximize gains.
As market conditions change, portfolios are also dynamically rebalanced in real-time bringing together a combination of technology and human expertise to minimize risk while maximizing returns.
Trading equities has a minimum charge of $4.95 and a maximum charge of $9.95.
Similar to equities, options can be traded for $9.95 + $1 per lot fee.
While these might be steep for active traders, long-term investors looking to build self-directed passive portfolios can transact in ETFs and fixed income without any commissions.
Is Beanstox Coming to Canada?
At present, Beanstox has limited ambitions to provide access to Canadians on their platform until there is a material shift in the regulatory and compliance landscape.
What is Beanstox?
Beanstox provides a customizable investing portfolio based on a range of user inputs while maximizing diversification and providing low-cost index funds.
Beanstox charges users a flat fee of $5/month regardless of the account size, thereby being substantially cheaper than other investing platforms which charge fees based on a percentage of assets under management.
Further, the platform looks to maximize tax savings using various tax harvesting methods.
Frequently Asked Questions
- Is Beanstox Investing available in Canada?
Beanstox Investing is not available to Canadians.
- How does Beanstox make money?
Beanstox is a fintech providing personalized investing solutions for a flat fee. Their platform is extremely scalable and can provide services to new users at relatively low costs. Furthermore, investors buying low-cost diversified portfolios, usually stay invested in the market for the long term and therefore pay fees over the course of that period.
- How is Kevin O’Leary associated with Beanstox?
Kevin O’Leary invested in the second round of funding for Beanstox as he is a strong believer in the power of low-cost diversified funds and he believes that Beanstox reflects how he invests his family’s personal wealth.