Is Beanstox Investing App Available in Canada?

| June 8, 2022
✓ Verified by Harshil Dhanky

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

Interactive Brokers

Summary

Interactive Brokers is an investor-friendly platform offering attractive margin accounts packaged with a low-fee global trading platform offering seamless fixed income, currencies, commodities, and equities execution.

Pros

  • While Interactive Brokers isn’t commission-free, it has one of the best execution capabilities and offers users the ability to trade over 150 global markets.
  • Interactive Brokers provides margin accounts enabling greater buying power which can be utilized to increase leverage, execute derivative transactions and other more sophisticated investment strategies such as long/short investing and event-driven trading.

Cons

  • Interactive Brokers may appear complex at first to new investors with all the different investable markets and asset classes.
Wealthsimple Invest

Summary

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.

Pros

  • 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.

Cons

  • 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

Summary

Questrade’s Questwealth platform offers a selection of diversified, 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.

Pros

  • 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.

Cons

  • 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

Interactive Brokers is a low-cost broker providing access to 150+ markets globally.

Fees are determined by the specific product and volume traded.

Active traders get preferred rates and a discount based on their frequency of trading.

Further, Interactive Brokers offers margin accounts, providing borrowed funds at very attractive rates (sub 2%).

This allows experienced investors to utilize leverage to augment returns.

Overall, besides the initial learning curve, Interactive Brokers comes strongly recommended by experienced market participants.

Wealthsimple Invest

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.

Both registered and non-registered accounts can be used to deploy funds via through Wealthsimple.

Questrade

Questrade is a Canadian investment platform providing access to the 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.

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.

Lady on tablet using trading platform

Frequently Asked Questions

  • Is Beanstox Investing available in Canada?
  • How does Beanstox make money?
  • How is Kevin O’Leary associated with Beanstox?

Sid Mohapatra is an energy trader based out of Toronto working in power and natural gas trading. Prior to working in commodities, Sid worked at a top Canadian bank’s fixed income and derivatives business. He possesses strong fundamentals in asset allocation, global macro thematic investing and physical commodities.

As a graduate of McMaster University, Sid specialized in Finance and has taught numerous sessions on Investing, Financial Securities and Trading courses. He led and managed the Horizon’s Trading Center at McMaster University.

Sid’s unique experience brings a breadth of institutional knowledge to the retail investing universe. He covers equity derivatives, structured credit instruments and tax harvesting techniques to help Canadians make better financial decisions in the ever-changing landscape of financial markets and investing.