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Wealthsimple vs. TD Direct Investing : Key Differences Explained

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When it comes to investing, there are a lot of options to choose from. But if you’re looking for simplicity and fees that won’t eat into your returns, Wealthsimple and TD Direct Investing are two good options to consider.

Both platforms offer a wide range of investment products, from stocks and bonds to mutual funds and ETFs. And neither platform charges commissions on trades.

However, there are some key differences between the two platforms.

So, which platform is the best fit for your needs?

In this article, we’ll compare and contrast these two platforms, so you can make an informed decision about where to invest your money. We also recommend an alternative, Interactive Brokers, which is our personal favorite investment broker.

We’ll look at things like fees, investment options, and customer service, so you can see which platform is the best fit for your needs.

  • Lowest and most transparent commissions
  • Large number of tradable security types
  • Robust suite of research tools
  • Low margin rates, from 0.75% to 1.59%
  • Access to 40,000+ funds worldwide & 7,700+ funds with no transaction fees
INVEST NOW →

Disclaimer
The equity investments are subject to market risks and may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial advisor. So please invest at your own risk.

Let’s get started!

Wealthsimple Vs. TD Direct Investing At a Glance

Wealthsimple business model

Wealthsimple Advantages

  • Offers lower fees than traditional financial institutions
  • User-friendly app so you can start investing with just a few clicks
  • Automatically rebalances as needed to help keep it aligned with your investment goals
  • Access to a financial advisor who can provide personalized advice and guidance

Wealthsimple Disadvantages

  • Offers a more limited selection of investment options than other platforms
  • No direct access to foreign markets

TD Direct Investing Advantages

  • No account minimum so you can start investing with any amount
  • Provides access to a wide range of investments, including stocks, bonds, ETFs, and mutual funds
  • Ability to open both registered and non-registered accounts
  • Offers educational resources that help you stay up-to-date on investing trends

TD Direct Investing Disadvantages

  • Higher fees than other providers
  • Very basic user interface that may be intimidating to beginners
  • No access to a financial advisor.

Winner: Don’t want to read the full article? The editor’s choice is Wealthsimple.

With lower fees and easier access to a financial advisor, Wealthsimple is the better choice for most investors. Plus, it has an easy-to-navigate app that’s perfect for investing newbies.

However, for those who have more experience with investments, we actually prefer Interactive Brokers as they have unrivaled market access as well as the best access to undervalued stocks.

 

Invest now at Interactive Brokers

 

More About Wealthsimple

Wealthsimple is an online investment platform that makes investing easy and accessible for everyone. They offer a wide range of investment options, from stocks and ETFs to savings accounts and retirement plans.

But what sets Wealthsimple apart is their suite of socially responsible investing options.

With these options, you can make your money work for causes you believe in, whether it’s environmental protection or social justice.

And because Wealthsimple is an online platform, you can invest from anywhere in the world.

Their simple platform makes it easy to get started, and their tax-efficient investing means you can keep more of your money in your pocket.

They offer a variety of investment options, so you can find the perfect fit for your goals and risk tolerance. And their excellent customer service means you can always get help when you need it.

So why not give them a try today? You might be surprised at how easy and rewarding investing can be.

 

Try The #1 Trading Platform in Canada

 

More About TD Direct Investing

TD Direct Investing

TD Direct Investing offers a range of options to suit every investor. With both self-directed and managed portfolios, they have something for everyone.

And with a variety of account types, from Registered Retirement Savings Plans (RRSPs) to Tax-Free Savings Accounts (TFSAs), they have the flexibility to meet the needs of any investor.

Plus, with their low fees and portfolio management tools, TD Direct Investing makes investing easy for everyone.
When it comes to customer service, TD Direct Investing is top-notch. They have a dedicated support team who can help with any questions or issues you might have.

So if you’re looking for an easy and convenient way to invest your money, TD Direct Investing is worth considering.

What’s The Difference Between Wealthsimple and TD Direct Investing?

Control Over Finances

One of the features of Wealthsimple is automatic rebalancing.

This feature helps to keep your portfolio in alignment with your investment goals by automatically buying and selling assets in order to maintain your desired asset allocation. Rebalancing can help you stay disciplined in your investing, and it can also help you take advantage of market opportunities.

For example, if the stock market crashes, rebalancing will sell some of your stocks and use the proceeds to buy more bonds, which will help to protect your portfolio from losses.

TD Direct Investing gives investors the freedom to make their own trades and adjustments, giving them the ability to customize their investments to meet their unique needs.

While TD Direct Investing doesn’t offer an auto-rebalancing feature, this allows investors to take a more hands-on approach to manage their portfolio.

Verdict: It’s a tie! Both Wealthsimple and TD Direct Investing offer great features for investors.

Fees

When it comes to fees, there are a few things to consider.

One of the biggest advantages of using Wealthsimple is that there are no trading fees. This makes it an ideal platform for investors who like to trade frequently.

However, it should be noted that Wealthsimple does charge a management fee of 0.50-0.40%.

TD Direct Investing, on the other hand, charges $9.99 per trade but there is no management fee. This makes it a more cost-effective option for those who are looking to invest without incurring high fees.

So, if you’re the type of investor who doesn’t trade often, TD Direct Investing may be the better option for you.
Verdict: When it comes to fees, TD Ameritrade is the best option for investors who don’t trade frequently.

Investment Options

When it comes to investing, there are many different approaches that people can take. Some people prefer to put all of their eggs in one basket, while others like to spread their investments out over a wide number of different asset classes.

For those who prefer the latter approach, TD Direct Investing is the clear choice. TD Direct Investing offers a wide range of investment options, including stocks, bonds, ETFs, and mutual funds. This gives investors the ability to tailor their portfolios to their individual needs and risk tolerances.

Wealthsimple, on the other hand, offers a limited selection of ETFs and mutual funds. While this may be sufficient for some investors, it does not provide the same level of flexibility as TD Direct Investing.

As a result, TD Direct Investing is the better option for those who are looking to diversify their portfolios beyond just ETFs and mutual funds.

Verdict: For investors who want more variety in their portfolio, TD Direct Investing is the way to go.

Customer Service

When it comes to investing, there is no such thing as a one-size-fits-all approach. Some people feel more comfortable managing their own portfolios, while others prefer to have the guidance of a professional.

For those who fall into the latter category, Wealthsimple is a great option. In addition to offering phone and email support, Wealthsimple gives users access to a team of financial advisors who can help them make informed investment decisions.

TD Direct Investing, on the other hand, does not offer access to a financial advisor. However, they do have an online chat feature and plenty of educational resources that can be helpful for DIY investors.

Verdict: Wealthsimple takes the cake for better customer service, with access to a financial advisor and other personalized help.

Resources and Tools

Both Wealthsimple and TD Direct Investing have a wide range of resources and tools that can help you stay informed about the markets.

If you’re looking to get started in investing, Wealthsimple is a great resource. Their investing guide can help you learn the basics, and their educational videos and webinars dig deeper into specific topics.

Plus, if you need more personalized advice, they have financial advisors who can help you figure out the best way to invest your money.

With all of these resources at your disposal, Wealthsimple makes it easy to get started in investing.

TD Direct Investing has its own online library filled with articles and videos on a variety of topics, plus an online forum to connect with other investors.

The site covers everything from the basics of investing to more advanced concepts like portfolio management and risk tolerance.

Verdict: It’s a tie! Both Wealthsimple and TD Direct Investing offer great resources and tools for investors.

Website

When it comes to choosing an investment platform, ease of use is an important consideration.

Wealthsimple has the edge over its competitors in this area. Its website is easy to navigate and understand, making it a great choice for beginners.

The platform also offers a variety of features that make it easy to track your investments and monitor your portfolio. For example, you can set up alerts to let you know when your portfolio reaches a certain value or when a specific stock reaches a certain price.

For investors who are used to more traditional websites, TD Direct Investing can be a bit confusing at first.

However, there are plenty of helpful resources and tutorials available to get you up and running quickly.

The website offers a variety of features and tools that can be incredibly useful for investors of all experience levels.
For example, the site includes stock quotes, market analysis, and even a virtual trading platform that can be used to test out investment strategies.

Plus, TD Direct Investing offers a wide range of investment products, from stocks and ETFs to mutual funds and bonds.

Verdict: Wealthsimple is the clear winner here, with a user-friendly website and plenty of features to help you keep track of your investments.

Mobile App

Wealthsimple’s app is perfect for newcomers to investing. It’s sleek and modern, with an easy-to-understand interface and simple instructions.

You can quickly and easily set up an account, manage your investments, and keep track of your progress. The app also provides helpful tips and advice, so you can make the most of your investment journey. TD Direct Investing is less visually appealing but its user interface is still straightforward and simple to use.

With the app, you can view your account balances, review recent transactions, and even place trades.
It also provides real-time quotes for stocks, bonds, and other securities.

Verdict: Wealthsimple is the better choice, especially for those who are new to investing, thanks to its easy-to-navigate app.

Overall Winner

Although both Wealthsimple and TD Direct Investing offer some great features for investors, Wealthsimple is ultimately the better choice for most people.

One of the biggest advantages that Wealthsimple has over TD Direct Investing is that it doesn’t charge any trading fees. This can add up to a significant amount of savings over time, especially for active traders. Wealthsimple also offers access to financial advisors, which can be a valuable resource for anyone looking to get started in investing.

However, having said this, although Wealthsimple is decent, we much prefer Interactive Brokers. They have incredible access to global markets as well as software to scan for the best undervalued stocks. Clients tend to earn 3.3% USD on their idle balances too.

  • Lowest and most transparent commissions
  • Large number of tradable security types
  • Robust suite of research tools
  • Low margin rates, from 0.75% to 1.59%
  • Access to 40,000+ funds worldwide & 7,700+ funds with no transaction fees
INVEST NOW →

Conclusion

In conclusion, Wealthsimple is the best choice for most investors who are looking for an online investing platform. It offers no trading fees, access to financial advisors, and an easy-to-use mobile app.

Or we also recommend checking out Interactive Brokers, with an even bigger selection of investments. Though there are other platforms out there that may offer more features or slightly lower fees, none of them come close to matching the overall value that Interactive Brokers provides.