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Worth watching but account management can't be free. There will be preparation of tax slips, reporting of IIROC regulated items, etc. that requires human oversight. Revenue will have to come from somewhere to pay for those minimum services.
 

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Discussion Starter · #4 ·
Who wants to pay 10 dollars or 7 dollars or 5 dollars per stock trade regardless of your account size . Unless you don't mind wasting money.
 

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Who wants to pay 10 dollars or 7 dollars or 5 dollars per stock trade regardless of your account size . Unless you don't mind wasting money.
Someone who wants a large and solvent brokerage, for one. Personally I am willing to pay trade fees to use a big bank brokerage for the added safety, stability and experienced staff (calling in & various services provided).

$10 a trade is a pretty insignificant cost when you're placing a couple trades a year and maintaining large positions.
 

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Wealthsimple is apparently a division of: https://www.shareowner.com/
Wealthsimple is 77% owned by Power Financial through PWF, IGM, etc. Power Corp's way of saving their Power Financial group as IGM hits the skids with decreasing longevity. Wealthsimple bought ShareOwner in 2015.

Added: Venture Capitalists own the rest. Founder is Michael Katchen with an equity interest.
 

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Worth watching but account management can't be free. There will be preparation of tax slips, reporting of IIROC regulated items, etc. that requires human oversight. Revenue will have to come from somewhere to pay for those minimum services.

this robo is probably receiving kickback fees from the ETFs that they recommend & sell

similar to how zero-MER ETFs & low-fee ETFs collect fees ranging up to 5% of mark-to-market value for lending out the securities they are allegedly "holding" in their funds to shortselling hedge funds
 

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Discussion Starter · #8 ·
Your funds will be insured as per Wealth Simple so I don't see stability or solvency being a problem. If you are only making two trades an year then yes it won't impact you much. There are others who make more trades and the fees add up. It depends how you invest and trade. Also I never call my brokerage I do everything online so that service doesn't mean much.
 

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I just watched an interview on BNN and the Wealthsimple guy said they're going to charge a foreign exchange fee if you're making trades on another exchange such as the US. That could add up quick, but for trades in Canada it might be a good option.
 

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Questrade is quite cheap too but you read a lot of not only negatives reviews, but nightmare experiences. I will wait for the reviews. I think they are not being transparent about how they make their money. It has to be more then foreign exchange transactions. They will probably start off free, lure in the customers then charge a fee.

I also agree the big banks have more money to put in security.
 

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Clearly it is a wait and see for most of us, both in execution and platform. Early adopters can keep us up to date. Will not make a difference to me since I only do 3-5 trades per year, and thus won't be moving under any circumstances.
 

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Your funds will be insured as per Wealth Simple


^^ this is pretty much meaningless, no?

every financial institution is supposed to back its products. Every financial institution will say that it backs its products.
 

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Do they offer GICs?

Do they allow limit orders? If not, we already know where they are collecting their fees.

How well are they routing their orders? Do limit orders get as good fills as on say TD or RBC? The big bank brokerages, and Interactive Brokers, get excellent fills by routing your orders to multiple exchanges, not just TSX but also Alpha, NASDAQ CX2, TriAct.

Well established brokerages have sophisticated order routing and do well at filling both large and small odd lot orders. These systems require constant refinement. Is WealthSimple on par with these? If you're not going to have your orders routed and filled well, then this also represents additional hidden costs. For example if they only route to TSX, then already you're at a big disadvantage versus big brokerages.
 

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Those posters at redflag deals are lapping it up. They've all signed up for the waitlist so we'll hear from them. They say it will only be available in unregistered accounts to start and you can only trade 1000 per transaction.
 

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Questrade is quite cheap too but you read a lot of not only negatives reviews, but nightmare experiences.

never been a questrade client but my understanding is that "nightmare experiences" are a thing of the long-ago past. In our times we're not hearing about nightmares.




I think they are not being transparent about how they make their money.

one hypothesis goes that questrade functions as a wholesale shorting house, ie it lends out stock from clients' accounts for shorting purposes to other brokers for a fee. Everyone who shorts knows that one's own broker may be able to borrow shortable stock from another broker if their own loan post doesn't happen to have a sufficient inventory. In fact there seems to be a very efficient network offering an inventory of shortable stocks that operates privately among brokers, so they can rapidly borrow from each other.

the questrade short wholesaler hypothesis arises because questrade offers only margin accounts. Other than registered accounts, there are no cash accounts at questrade. Once margin is impaired, anything can be borrowed out of a client's account, up to the extent of the margin impairment.

no one will ever know exactly how the back side of questrade operates because the business is privately owned, therefore is not required to disclose anything. No one, for example, can ever know the true capitalization of the firm. No one can know who their bankers are.

here in cmf forum, one doesn't see too many hi-value members who are questrade clients.


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We opened an account for their ETF robo-advisory service at the beginning of the year. Essentially anyone can get 10,000 "managed" for one year without additional fees. I'm waiting until next year to see how the tax documents get processed. If they do a good job with that, I wouldn't mind being more active with deposits. We are also Power Corp shareholders. Wealthsimple's present value is in the order of $100 million if you go by the metric of say 1/20th AUM.
 

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charging an FX fee on CAD/USD transactions & not offering the opportunity to gambit the currencies are reasons enough to avoid wealthsimple.

the fact that they won't reimburse a client for the $150 transfer fee of an investment account from another broker is another nail in coffin. Not a defining nail, just a small tack, but still these negative tacks do add up.
 
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