Wealthfront is not available in Canada.
Wealthfront’s investing platform enables investors to curate sector-specific diversified portfolios using automation for a fixed fee.
3 Alternatives to Wealthfront Canada
- 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.
- No fees to purchase ETFs.
- Easy to navigate mobile and desktop platform.
- Minimum account balance of $1,000 is required to trade.
- Subscription required to stream real time quotes.
- Large, trustworthy financial institution.
- Offers commission-free stock trades and ETFs.
- Inactivity fees and annual charges for non-maintenance of minimum balances.
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.
National Bank has made inroads into the equities trading landscape by offering zero commission equity trades, making them an extremely attractive alternative to popular online discount brokers.
Their robo-investing service also helps investors make automated, systematic investments into diversified long-term holdings.
Is Wealthfront Coming to Canada?
At present, Wealthfront 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 Wealthfront?
Wealthfront provides a customizable investing portfolio based on a range of user inputs while maximizing tax savings.
Some of the most popular portfolios using automated investing focus on Sustainability, Diversity and Equity.
Wealthfront Cash is great at managing excess liquidity and keeping such funds parked in high-interest savings accounts.
They also offer portfolio loans.
Frequently Asked Questions
- How trustworthy is Wealthfront?
Wealthfront’s investing portfolios are trusted by more than 450k investors and they have $26bn in assets under management. Furthermore, Wealthfront’s Cash platform is FDIC-secured, which means deposits are insured by the Federal government. This lends greater credibility to the platform.
- Is Wealthfront a US company?
Yes, Wealthfront is a US company founded by Andy Rachleff and Dan Caroll as a fintech designed to disrupt the personal investing and wealth management space.
- Is Wealthfront good for beginner investors?
Wealthfront is a great choice for new investors as they can peek under the hood to understand what goes into creating diversified portfolios and minimizing company-specific risk for long-term investing. Investors can also get exposure to broad index categories that they may not have thought to invest in themselves but will learn by using the Wealthfront platform.