Wealthsimple Review 2024 – A Comprehensive Guide

Is Wealthsimple good for day trading? It’s a good question for new and experienced traders looking to tap into the thriving market. Wealthsimple is a Canadian firm that offers unique assets and facilities for those hoping to build wealth.

Stick around because this article delves into Wealthsimple’s pros and cons for day trading, helping you make an informed choice in a crowded market.

These are some of the questions you’ll answer by reading this article…

• Does Wealthsimple Allow Day Trading?
• Is Wealthsimple Good for Day Trading?
• Is Wealthsimple Available in Multiple Countries?
• Can I Use a Margin Account With Wealthsimple?
• Can I Buy Cryptocurrencies Through Wealthsimple?

What Is Day Trading?

Day trading is the practice of buying and selling financial products like stocks or ETFs within the same day. It’s about making informed, strategic decisions based on market trends, all within a single trading session.

The goal is to make small gains that add up while keeping risk tight. But it’s not a quick way to get rich, and it takes a lot of dedication, research, and focus.

Wealthsimple, a Canadian financial services company, offers a range of platforms for trading. Among them is Wealthsimple Trade, a trading platform that has attracted a lot of attention.

But is it the right platform for day trading? We’ll dig into that.

Day trading is not for everyone. It’s about strategy, quick decisions, and keeping an eye on stock exchanges.

Whether it’s U.S. equities or Canadian stocks, a day trader must have the right tools, from real-time quotes to sophisticated trading platforms. It’s not about guesswork, it’s about informed decisions. And Wealthsimple might be part of that equation.

Does Wealthsimple Allow Day Trading?

Yes, Wealthsimple does allow day trading on its platform, Wealthsimple Trade. Traders can buy and sell shares, ETFs, and even access some cryptocurrency products within the same day.

The platform offers commission-free trades, making it an attractive option for frequent traders.

But here’s the thing: Wealthsimple Trade is a simplified trading platform. It’s designed with the casual trader in mind, not necessarily the professional day trader. While it allows day trading, it may not offer all the features and details that a serious day trader requires.

It’s a solid platform for the occasional day trade, but may not be the best choice for those fully immersed in day trading.

I’ve been in the industry for over a decade. Wealthsimple isn’t my preferred platform. But again, you might have a different strategy and different goals.

Let’s continue … 

Is Wealthsimple Good for Day Trading?

Wealthsimple’s platform has its merits for day trading, but there are some limitations … 

• The platform is user-friendly
• There are commission-free trades
• You can trade on your mobile app or even your laptop
• There’s access to Canadian and U.S. markets
• You can trade stocks and ETFs

However, some features essential for serious day traders might be lacking, like real-time stock quotes. The platform’s delay in price data can be a significant hindrance for day trading where timing is everything.

Additionally, its trading tools and research resources may not be as extensive as those provided by specialized day trading brokerages.

While Wealthsimple offers a range of features for day trading, it’s essential to explore other platforms to find the best fit for your trading style.

There are alternatives … 

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers. I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.

Grab your 14-day StocksToTrade trial today — it’s only $7!

How Do I Start Day Trading on Wealthsimple?

Trading stocks on Wealthsimple Trade is fairly straightforward. First, you’ll need to create an account.

Ensure you have the right account type, like TFSA or RRSP, depending on your trade goals. 

Next, deposit funds into your account. CAD or USD accounts are available, but note the currency conversion fees if you’re trading U.S. stocks.

Then, you’re ready to trade. From Tesla to Shopify, you can purchase shares, sell them, or even explore Wealthsimple Crypto.

But here’s a word of caution: day trading requires experience, strategy, and attention to market trends. Before you jump in, take time to learn, maybe even track a few stocks, and understand your risk tolerance.

Day trading can lead to substantial losses.

A 2019 study called “Day Trading for a Living?” looked at the success rates of Brazilian traders over a 2-year window, and found that 97% of traders with more than 300 days of active trading lost money.

Only 1.1% earned more than the Brazilian minimum wage — that’s only $16 per day!

Make sure your account and platform are optimized for your strategy.

Pros of Day Trading With Wealthsimple

Day trading with Wealthsimple comes with a menu of advantages. First and foremost, clients are greeted with lower commission fees compared to traditional banks.

This makes Wealthsimple an attractive place for those looking to buy and sell assets quickly.

The platform also offers a range of account types, from Cash to TSX. Users can manage their portfolio effortlessly through the desktop site or mobile apps, taking advantage of the platform’s unique tools like watchlist features and charts.

Michael Katchen’s brainchild provides screens, orders, and order types designed to facilitate smooth transactions.

Furthermore, Wealthsimple’s robo-advisor helps manage portfolios, and its securities are protected by CIPF.

Compared to other brokers and trading platforms, the focus on management and client support stands out, making it a viable option for anyone looking to day trade, whether you’re in Canada or exploring international markets.

While discussing the advantages of Wealthsimple, it’s worth mentioning the importance of community insights and research in day trading. Platforms like Reddit have become valuable resources for traders to share ideas, strategies, and market insights.

Engaging with a community of like-minded individuals can enhance your trading experience and provide unique perspectives.

If you’re interested in exploring community-driven insights, you may find value in Reddit’s discussions on penny stocks, a space where traders share their thoughts on potential profit opportunities.

Lower Trading Fees

Wealthsimple offers commission-free trades.

This is a huge advantage for day traders who make frequent trades. Lower trading fees mean more profits stay in your pocket. It’s a discount broker approach that appeals to many.

Easy-to-Use Mobile App

The Wealthsimple Trade mobile app is user-friendly. Whether you’re on Android or iOS, trading is at your fingertips. For the trader on the go, this accessibility can be vital.

Fractional Share Trading

Wealthsimple allows fractional share trading, enabling you to use smaller amounts of money in high-priced stocks like Netflix or Amazon.

It’s a feature that makes trading more accessible to a broader range of traders.

Cons of Day Trading With Wealthsimple

But it’s not all sunshine and roses. Wealthsimple’s appeal might be marred by certain costs and limitations.

For instance, day trading here might involve slightly higher commission fees compared to discount brokerages.

Another aspect to consider is the range of products. Despite a strong list of options, including cryptocurrencies like Ethereum and Bitcoin, some may find the offerings limited in comparison to platforms like Robinhood.

The platform’s trading commissions might not always align with everyone’s budget, especially when trading in large volumes.

The availability of information such as real-time news or IPOs might also be limited, affecting your trading decisions.

Furthermore, factors like the lack of certain bonds or metals could limit your portfolio. And finally, be aware of the security measures in place and how they affect your transactions, from deposits to the actual order placements.

For those interested in a more comprehensive view of the market, TradingView might be an excellent alternative.

With advanced charting tools and community-driven content, it provides a different perspective on day trading. If you’re looking to expand your trading toolkit, consider exploring TradingView for day trading, a platform known for its robust analytics and collaborative environment.

No Real-Time Stock Quotes

Day trading requires real-time information. Unfortunately, Wealthsimple Trade does not offer real-time stock quotes.

This delay can impact decision-making, a critical aspect of day trading.

While Wealthsimple has its limitations, other platforms might cater to specific needs. For instance, Questrade is known for its advanced trading tools and real-time quotes.

If you’re looking for a platform that offers more specialized features for day trading, check out Questrade for day trading.

It provides a range of tools and resources tailored to meet the demands of active traders. It’s not just a new name. These platforms will facilitate your money in the market.

It’s always wise to compare and choose the platform that aligns with your trading goals.

Currency Conversion Fees

If you’re trading U.S. stocks from somewhere else in the world, be aware of currency conversion fees.

These fees can eat into your gains, especially if you’re making frequent trades involving USD.

Tax Implications

Day trading has tax implications in Canada. Your profits may be treated as business income. 

Understanding these rules, or consulting a tax professional, is essential for Canadian day traders.

There are a ton of ways to build trading careers… But all of them start with the basics.

That’s what I start with every day in my Daily Income Trader program. 

Daily Income Trader gives you access to all of the following:

• Premarket Prep with StocksToTrade lead trainer Tim Bohen
• Bryce Tuohey from Small Cap Rockets giving a market-open webinar each day
• Tim Bohen back at noon with his afternoon Double Down review
• Small Cap Rockets’ Matt Monaco in the after-hours sharing his game plan for the next trading day

You get access to StocksToTrade, the subscriber-only trading rooms Breaking News and Small Cap Rockets, the Discord chat, 600-plus webinars, and more…

Daily Income Trader is your key to unlocking the market — check out the webinar here!

Have you used Wealthsimple for day trading? Let me know in the comments!

Frequently Asked Questions

Is Day Trading With Wealthsimple Better Than Questrade?

Comparing Wealthsimple and Questrade for day trading is like comparing apples and oranges. 

Both have merits but cater to different types of traders. Questrade offers more advanced trading tools and real-time quotes, while Wealthsimple offers commission-free trades.

Your choice depends on your trading style and needs. Choose your trading partners carefully.

Can I Buy and Sell on the Same Day on Wealthsimple?

Yes, you can buy and sell on the same day on Wealthsimple. That’s the essence of day trading. 

But remember, it’s not a game, it’s a strategic approach. Understand your limits, your risks, and the platform’s limitations as well.

Is Wealthsimple Good for Day Trading for Beginners?

Wealthsimple may be suitable for beginners looking to dip their toes into day trading.

Its user-friendly interface and commission-free trades make it accessible. However, a lack of real-time quotes and advanced tools might limit its usefulness for more serious day traders.

Is Day Trading Legal in Canada?

Yes, day trading is legal in Canada. But it comes with rules and responsibilities. Your gains may be treated differently for tax purposes, and understanding your obligations is crucial.

Consult with a financial professional to ensure you’re on the right track.

What Is Wealthsimple Invest, and How Does It Differentiate From Other Trading Accounts?

Wealthsimple Invest is an automated investing service offered by Wealthsimple, catering to a range of customers with different savings needs.

Unlike traditional trading accounts that require active management, Wealthsimple Invest uses robo-advisors to create a diversified portfolio, depending on your preferences. The system is suitable for anyone from beginners to seasoned investors looking to grow their contributions without the constant need to monitor market prices.

It’s a viable option for any investment portfolio.

Can I Use a Margin Account With Wealthsimple for Purchasing Stocks and Coins?

Yes, Wealthsimple allows purchases through a margin account. However, it’s crucial to review the terms and understand the risks associated with using borrowed money for trades. 

Utilizing margin amplifies both gains and losses and requires a strong understanding of market dynamics. Always consult with a professional if you’re considering this level of trading.

Is Wealthsimple Available in Multiple Countries, and Are There Any Differences in Services?

Wealthsimple offers its services in various countries, and the offerings may differ depending on local regulations and market conditions.

The availability of retirement accounts, for example, or specific investment options like dividend reinvestments might vary. It is advised to consult the Wealthsimple web platform specific to your region for detailed information on available products.

How Does Wealthsimple Protect My Investments, and What Awards Has the Platform Received?

Wealthsimple prioritizes the protection of client funds through a combination of technological security measures and regulatory compliance.

They have received awards recognizing their innovative approach and commitment to customer satisfaction. Wealthsimple’s dedication to transparency and protection has positioned it as a trusted brand in the financial space.

Among all trading companies, Wealthsimple ranks toward the top.

Can I Set Up Automatic Contributions and a Savings Plan With Wealthsimple?

Yes, you can set up automatic contributions to your Wealthsimple accounts. This feature helps users build a consistent savings plan, taking advantage of dollar-cost averaging to maximize potential gains over time.

By scheduling regular buys, you can align your investments with your long-term financial goals.

Is There a Minimum Amount Required To Open a Trading Account With Wealthsimple?

Wealthsimple has made trading accessible to lots of people by having no specific account minimums. Whether you’re trading thousands or just starting with a small sum from your bank account, you can explore their platform.

This inclusiveness encourages people to start trading at any level, making it a popular choice among various age groups and demographics.

Can I Buy Cryptocurrencies Through Wealthsimple, and What’s the Idea Behind This Feature?

Yes, Wealthsimple allows the purchase of certain cryptocurrencies like Bitcoin and Ethereum. 

The idea behind this feature is to offer clients a diverse portfolio option, keeping up with modern trends. Clients should understand the volatile nature of cryptocurrencies and review the specific terms and potential risks before making any purchases.