The alternative of Robinhood in Canada is Wealthsimple Trade. With Wealthsimple, you can invest in a professionally managed low-cost portfolio without needing a six-figure investment budget.
Wealthsimple Trade is the Canadian answer to the popular Robinhood app in the United States.
What is Robinhood?
Robinhood is a Menlo Park, California-based tech startup that created a popular stock, ETF, options, and cryptocurrency trading app for iPhone and Android devices.
You won’t pay any fees to use Robinhood trading, including setting up and maintaining a brokerage account or transferring money for investments.
A broker-dealer with FINRA approval, Robinhood has 15.9 million active users and $93 billion in assets under custody. Additionally, there are about 22.8 million funded accounts overall.
Foreign no-commission trading platforms like Robinhood have been unable to develop a foothold in Canada due to the law that forbids brokers from using market-makers to execute transactions for a charge.
Alternative of Robinhood in Canada: Wealthsimple Trade
An alternative to Robinhood in Canada is Wealthsimple Trade. You can have trades executed on your behalf without paying a commission using Wealthsimple Trade.
The best part is that you can opt to start a TFSA or a personal investment account and there is no account minimum or paperwork required. Start using our mobile app in only a few taps.
Wealthsimple is not a startup that pops up overnight. The business secured a large CAD $750 million investment in May 2021 from some of the biggest banks in the world, including Meritech and Greylock.
Numerous Canadian celebrities, including Michael J. Fox, Ryan Reynolds, and Drake and his business DreamCrew, also contributed money to this round.
Wealthsimple’s valuation increased to CAD $5 billion following this fundraising round. The startup had received over 900 million dollars in funding over nine rounds as of June 2022.
Is Wealthsimple the same as Robinhood?
No, even though they both offer to trade in equities, ETFs, and cryptocurrencies.
Both Wealthsimple and Robinhood provide commission-free stock trading, and neither service has a minimum investment required to get started.
However, before selecting one, be careful to conduct your own research and choose which option best suits you. Also, keep in mind that Canadian investors cannot use Robinhood.
Does Wealthsimple Trade have any limitations?
On Wealthsimple, real-time market data is not accessible.
There is no minimum deposit needed to open an account with Wealthsimple Trade. However, there is a $50,000 maximum cap on deposits. If you want to deposit more than $50,000, you’ll have to get in touch with customer service.
Less than $1,500 in deposits are accepted right away, and this limitation is re-set every three business days. If you deposit more than $1,500, your money will be deposited in your account in 3 business days.
If you upgrade to a premium subscription, instant deposits will rise to $5,000 every three working days.
Final Thoughts
Regardless of wealth, every client at Wealthsimple receives cutting-edge technology. So why are you still waiting? Get registered for Wealthsimple Trade right away.