Rant: Everyone treats Wealthsimple like it's the only option for Canadian investors

I keep seeing people in this sub acting like Wealthsimple is the end all be all for fintech in Canada. Sure, they have a slick app and no commission trades, but their currency conversion fees are brutal if you ever want to buy US stocks. I lost about $150 last year just on exchange rates with them before I switched to Questrade for my USD holdings. The thing is, Wealthsimple makes it easy, but easy isn't always cheap. I know a guy who runs a small fintech startup in Toronto and he told me their margin on forex is way higher than what Questrade or IBKR charge. Why does nobody talk about the hidden costs of convenience? Has anyone else tried mixing platforms to save money or am I the only one who noticed this?

3 comments

3 Comments

adamthompson2d ago

Man, I totally get your frustration. I actually listened to a podcast with some Canadian finance blogger where he broke down Wealthsimple's hidden fees, and it was shocking how much they nickel and dime you on forex compared to places like IBKR. It's like they lure you in with the free trades and then hit you on the currency exchange (which is practically robbery if you trade US stocks regularly). I've been using a mix myself - keeping my CAD stuff in Wealthsimple for the easy interface, but moving my USD holdings over to IBKR just to avoid that brutal conversion spread. The convenience tax is real, and it's annoying how few posts here mention that the slick app comes with a cost. Honestly, I wish more people would do the math before piling everything into one platform.

riley432d ago

Fair enough, you just changed my mind on that.

black.jake2d ago

Is that really cheaper overall when you factor in Questrade's inactivity fees though?