When it comes to investing in Canada, there are a variety of trading platforms to choose from. Two of the most popular platforms are Questrade and Wealthsimple Trade. In this article, we’ll compare these two platforms to help you decide which one is the best fit for your investment needs.
Overview of Questrade and Wealthsimple Trade
Questrade is a Canadian discount broker that offers a wide range of investment options, including stocks, ETFs, mutual funds, options, and bonds. Questrade is known for its low fees and advanced trading tools, making it a popular choice among active traders.
Wealthsimple Trade, on the other hand, is a Canadian commission-free mobile trading platform that offers access to Canadian and U.S. stocks and ETFs. Wealthsimple Trade is designed to be simple and user-friendly, making it a good choice for new investors.
| Feature | Questrade | Wealthsimple Trade |
|---|---|---|
| Trading fees | Variable, depending on account type and trade volume | Commission-free |
| Investment options | Stocks, bonds, ETFs, options, mutual funds, GICs | Stocks and ETFs only |
| Mobile app | Robust and feature-packed, but can be overwhelming for new users | Simple and user-friendly, but lacks advanced features |
| Security and regulation | Member of IIROC and CIPF, uses encryption technology | Member of IIROC and CIPF, uses encryption technology, but parent company has had data breaches in the past |
| Account types | Registered accounts (RRSPs, TFSAs), margin accounts, corporate accounts | Individual and joint taxable accounts only |
Fees and Account Minimums
One of the most important factors to consider when choosing a trading platform is fees. Both Questrade and Wealthsimple Trade offer competitive fees, but the fee structure is quite different for each platform.
Questrade charges fees based on the type of account you have and the type of investment you’re making. For example, Questrade charges $4.95 to $9.95 per trade for stocks, depending on the type of account you have. Options trading fees start at $9.95 plus $1 per contract.
Wealthsimple Trade, on the other hand, is a commission-free trading platform. There are no trading fees or account minimums with Wealthsimple Trade.
Investment Options
Questrade offers a wide range of investment options, including stocks, ETFs, mutual funds, options, and bonds. This makes it a good choice for investors who want to be able to invest in a variety of assets.
Wealthsimple Trade, on the other hand, offers a more limited range of investment options. Wealthsimple Trade clients can only invest in Canadian and U.S. stocks and ETFs. However, Wealthsimple Trade is constantly adding new assets to its platform, so it may expand its investment offerings in the future.
Trading Tools and Features
Questrade is known for its advanced trading tools and features, which include real-time quotes, charting tools, and customizable dashboards. Questrade also offers a mobile app that allows you to trade on-the-go.
Wealthsimple Trade, on the other hand, is designed to be simple and user-friendly. The platform does not offer as many trading tools or features as Questrade, but it is easy to use and navigate. Wealthsimple Trade’s mobile app is also very user-friendly and allows you to trade on-the-go.
Customer Support
Both Questrade and Wealthsimple Trade offer customer support options, including email and phone support. Questrade also offers live chat support, while Wealthsimple Trade does not. However, Wealthsimple Trade’s customer support team is known for being responsive and helpful.
Mobile App Comparison
Both Questrade and Wealthsimple Trade offer mobile apps that allow you to trade on-the-go. However, the user experience differs between the two apps.
Questrade’s mobile app is known for being robust and feature-packed. The app offers real-time quotes, customizable dashboards, and advanced charting tools. You can also use the app to place trades, manage your account, and track your portfolio. However, the app can be overwhelming for new users who may find the interface cluttered and confusing.
Wealthsimple Trade’s mobile app, on the other hand, is designed to be simple and user-friendly. The app is easy to navigate and offers a straightforward trading experience. However, the app lacks some of the advanced features offered by Questrade’s app, such as customizable dashboards and advanced charting tools.
Security and Regulation
Security is a top priority when it comes to investing, and both Questrade and Wealthsimple Trade take security seriously.
Questrade is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). These regulatory bodies provide protection for investors in the event that a brokerage firm fails. Questrade also uses advanced encryption technology to protect its clients’ personal and financial information.
Wealthsimple Trade is also a member of the IIROC and CIPF, and uses encryption technology to protect its clients’ information. However, Wealthsimple Trade’s parent company, Wealthsimple Inc., has had some data breaches in the past. While the breaches did not affect Wealthsimple Trade’s clients, it is something to keep in mind when considering the platform’s security measures.
Account Types
Both Questrade and Wealthsimple Trade offer a variety of account types to suit different investment needs.
Questrade offers several types of accounts, including registered accounts (such as RRSPs and TFSAs), margin accounts, and corporate accounts. Each account type has its own fees and features, so it’s important to choose the account type that best fits your investment needs.
Wealthsimple Trade, on the other hand, only offers two types of accounts: individual and joint taxable accounts. While this may be limiting for some investors, it also means that the platform is more streamlined and easier to navigate.
Wealthsimple vs Questrade FAQs
What investment options are available on Questrade and Wealthsimple Trade?
Questrade offers a wider range of investment options, including stocks, bonds, ETFs, options, mutual funds, and GICs. Wealthsimple Trade, on the other hand, only offers stocks and ETFs. If you’re looking for a platform that allows you to diversify your portfolio with different types of assets, Questrade might be the better option for you.
Which platform is more user-friendly?
Both Questrade and Wealthsimple Trade have user-friendly interfaces, but they differ in terms of complexity. Questrade’s platform offers more advanced features, which can be overwhelming for beginners. Wealthsimple Trade, on the other hand, has a simpler interface that’s easy to navigate, but lacks advanced features. Ultimately, the platform that’s more user-friendly for you will depend on your experience level and personal preferences.
Are there any hidden fees or costs on either platform?
Wealthsimple Trade is a commission-free platform, meaning there are no fees for buying or selling stocks and ETFs. However, there are currency conversion fees if you trade US-listed securities. Questrade, on the other hand, charges fees for different account types and trade volumes, but these fees are transparent and clearly stated on their website. It’s important to read the fine print and understand all the fees associated with each platform before making a decision.
Final Thoughts
Overall, both Questrade and Wealthsimple Trade are solid trading platforms for Canadian investors. Questrade offers a wider range of investment options and advanced trading tools, making it a good choice for active traders. Wealthsimple Trade, on the other hand, offers a commission-free trading experience and a user-friendly mobile app, making it a good choice for new investors.
Ultimately, the choice between the two platforms comes down to your investment goals and preferences. If you’re looking for a robust trading platform with advanced features, Questrade may be the better choice. If you’re looking for a simple and easy-to-use platform with no trading fees, Wealthsimple Trade may be the way to go.
