To use the service, download the Wealthsimple Cash app, claim a unique Dollar $ign (your username for the app), and add funds to your wallet. You’ll have access to a virtual Wealthsimple card immediately, and a physical card will be sent to you in the mail. The card is also compatible with Apple and Google Pay.
Funds in a Wealthsimple Cash account are protected by the Canadian Insurance Deposit Corporation (CDIC) up to specified limits, and you can even get free cash for inviting your friends to use the app.
What is Wealthsimple?
Wealthsimple is a Canadian financial services provider that offers a suite of online products. Wealthsimple Invest is a robo-advisor that offers beginners or investors who prefer to be hands-off a choice of investment portfolios to suit their risk tolerance and financial goals. Wealthsimple Trade is a discount online brokerage, geared towards people who want to be hands-on with their investments. And Wealthsimple Cash is a money-transfer and spending app.
Who owns Wealthsimple?
Millennial entrepreneur and self-described “boring investor” Michael Katchen launched Wealthsimple in September 2014 as a low-cost, low-effort approach to investing. Since then, CEO Katchen has seen his company transform from a humble Toronto startup to the largest online-only financial services company in Canada, with more than 2 million clients, $15 billion in assets under management and international offices in New York and London.
Wealthsimple is primarily owned by Power Corporation of Canada, under the subsidiary Power Financial. The nearly 100-year-old international management and holding company has over $470 billion in assets, as well as Power Financial, IGM and Pargesa, focusing on insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms. Described as a “Canadian financial giant,” Power Financial also has majority stakes in Great-West Lifeco and Portag3.
Is Wealthsimple safe?
The short answer is: Yes. If you’re honest about your risk tolerance, then your money should be invested in a way that suits your needs. And that’s the case with whatever investment service you choose. Wealthsimple is built to cater to a wide set of clients, so if you don’t need that one-on-one care, but want a simple way to create and build a portfolio with little to no maintenance, then it could be for you.
Another good thing to note: Wealthsimple is insured by the Canadian Investor Protection Fund (CPIF), meaning that if Wealthsimple goes out of business, your investments are protected. Wealthsimple is also affiliated with Canadian ShareOwner Investments and is a member of the Investment Industry Regulatory Organization of Canada.
What can I do with my money at Wealthsimple?
Wealthsimple is best known for its robo-advisor service, Wealthsimple Invest which is a “set-it-and-forget-it” portfolio of low-fee exchange-traded funds (ETFs). In a nutshell, ETFs allow you to invest your money across an entire market—such as Canadian stocks, high yield bonds, real estate, etc.—instead of trying to pick and choose the winning companies in each market. In this way, Wealthsimple provides an easy solution for clients to diversify their portfolios and earn decent returns on their investments over the long term, with minimal risk.