Investing in the stock market has traditionally been seen as something only accessible to those with deep pockets and extensive knowledge. However, with the advent of technology and user-friendly apps like Wealthsimple Trade, the world of investments has become open to a much broader audience. In this post, we’ll unpack everything you need to know about the Wealthsimple Trade app – from its inception to its features, benefits, and how it’s changing the investment landscape in Canada.
What is Wealthsimple Trade?
Wealthsimple Trade is a commission-free stock trading app launched by Wealthsimple, a renowned Canadian online investment management service founded in 2014. Building on the company’s philosophy of making investing easier and more accessible, Wealthsimple Trade debuted in March 2019, offering a sleek, easy-to-use platform for trading stocks and ETFs (Exchange-Traded Funds) directly from one’s smartphone or computer.
Key Features of Wealthsimple Trade
- Commission-free trades: One of the app’s primary attractions is the absence of fees for buying and selling stocks and ETFs, a game-changer for investors accustomed to paying per transaction.
- No minimum account balance: Users can start trading with as much or as little as they wish, eliminating another barrier for novice investors.
- User-friendly interface: Wealthsimple Trade boasts a minimalist, intuitive design that makes navigating the world of investing straightforward and stress-free.
- Access to Canadian and US markets: Users have the ability to buy and sell stocks listed on major Canadian and U.S. exchanges, catering to a diverse investment portfolio.
- Real-time quotes and notifications: The app provides up-to-the-minute market data and sends alerts on stock movements, keeping investors informed.
- Registered accounts support: It also offers the ability to trade within TFSA (Tax-Free Savings Account) and RRSP (Registered Retirement Savings Plan) accounts, providing tax efficiencies for retirement and general investment funds.
- Safe and secure: Wealthsimple Trade is CIPF protected and regulated by the Investment Industry Regulatory Organization of Canada (IIROC), ensuring user funds are treated with the utmost security.
Advantages of Using Wealthsimple Trade
Affordability
The most evident advantage of using Wealthsimple Trade is the cost savings. The lack of commission fees enables investors, especially those who trade frequently or with smaller amounts, to save substantially over time.
Accessibility
The app lowers the barrier to entry for first-time investors. Its straightforward design and the absence of minimum balances make it an excellent starting point for those interested in the stock market.
Flexibility
Its support for both Canadian dollar and U.S. dollar accounts and the ability to trade on multiple exchanges provide users with enhanced flexibility in managing their investment portfolios.
Mobile and Web Platforms
Wealthsimple Trade is available on both major smartphone platforms (iOS and Android) and as a web application, allowing traders to access their accounts from virtually anywhere.
How to Trade Using the Wealthsimple App on Mobile: A Step-by-Step Guide
Navigating the world of investing can feel like an overwhelming task, particularly for beginners. However, with intuitive platforms like Wealthsimple Trade, buying and selling stocks has become more accessible than ever before. This mobile app puts the power of investing right in your palm, making trading simple and commission-free. In this comprehensive guide, we’ll walk you through how to use the Wealthsimple Trade app on your mobile device, so you can start building your investment portfolio today.
Step 1: Download the Wealthsimple Trade App
The journey begins by downloading the Wealthsimple Trade app, available on both iOS and Android. You can download the app by clicking on this link https://www.wealthsimple.com/invite. Once the app is downloaded, open it to begin the registration process.
Bonus: To Earn a $25 welcome bonus use the referral code HZBSKW when you create the account.
Alternatively, you can create the account on the Wealthsimple website by clicking on this link.
Step 2: Create Your Account
Once the app is opened, you’ll be prompted to create an account. This process involves entering some basic information about yourself, including your name, address, and social insurance number (for tax purposes and identity verification). You’ll also answer a few questions about your financial situation and investment goals, which helps Wealthsimple ensure the platform meets your needs.
Step 3: Link Your Bank Account
To fund your trades, you’ll need to link your bank account. Navigate to the “Funding” section within the app, select “Link an Account,” and follow the on-screen instructions. Wealthsimple uses bank-level encryption to keep your information secure, so you can do this with peace of mind. Transferring funds may take a few days, so patience is key here.
Step 4: Understand Your Dashboard
Before diving into trading, familiarize yourself with the Wealthsimple Trade dashboard. Here, you’ll find your portfolio’s current value, performance over time, and any holdings you may have. Spend some time exploring the app’s features, like the “Discover” tab, where you can view market trends, and the “Watchlist,” where you can monitor specific stocks.
Step 5: Start Trading
With your account funded, you’re ready to make your first trade. Follow these steps:
Searching for Stocks or ETFs
- Tap the magnifying glass icon at the bottom to search for a specific stock or ETF. You can also browse available investments by sector.
Placing a Trade
- Once you’ve found an investment you’re interested in, select it to view more details. Then, tap “Trade” > “Buy”.
- Enter the amount you wish to invest or the number of shares you want to buy. Wealthsimple will calculate the other value automatically.
- Review your order. You can choose between a “Market Order,” which executes the trade immediately at the current market price, or a “Limit Order,” which lets you set a specific price at which your order should be executed.
- Tap “Confirm” to place your order. Orders can be reviewed or canceled until they are executed.
Step 6: Monitor Your Investments
Now that you’ve made your first trade, it’s important to keep an eye on your investments. Use the app to check the performance of your portfolio regularly, but try to avoid the common pitfall of micromanaging your investments. Remember, investing is often a long-term game.
Step 7: Stay Informed
Wealthsimple Trade provides financial news and personalized content within the app. Utilize these resources to stay informed about market trends and potentially lucrative investment opportunities.
Closing Thoughts
Wealthsimple Trade demystifies the trading process, making it accessible to novice investors while offering the depth required by those more experienced. By following this guide, you’re now equipped to navigate the Wealthsimple Trade app with confidence. Remember, all investments come with risks – ensure you’re making informed decisions by researching and considering how each trade fits into your broader financial strategy.
Happy trading!
Disclaimer: This blog post is for informational purposes only and should not be taken as professional financial advice. Always consult with a financial advisor before making any investment decisions.
