Wealthsimple is planning to launch what the robo-advisor says is the first zero-commission stock-trading service in Canada.
The financial technology company says users of Wealthsimple Trade will have access to unlimited zero-commission trades of more than 8,000 publicly traded stocks and ETFs listed on major Canadian and U.S. exchanges.
Subject to regulatory approvals, Wealthsimple Trade will be offered by IIROC member Canadian ShareOwner Investments Inc., a release says. The company didn’t provide a launch date but said it has set up a waiting list for those interested in the service.
People will be able to buy, sell and track stocks and ETFs through an app, which is currently in a private beta testing phase, with no account minimum or fees.
Wealthsimple Trade will offer instant trade execution and a “watchlist feature” to monitor stocks without buying them, a company press release says.
“In addition to letting users execute trades, the app will educate them about investing and the risks associated with picking stocks, and encourage responsible investment behaviour,” the release says.
There are some other online platforms that offer commission-free trading, but may also charge monthly flat rates and require a minimum balance.
Wealthsimple says its new service is the first of its kind in the country and the Wealthsimple Trade app will be rolled out to users by invitation leading up to a public launch, potentially later this year.
With no commissions, Wealthsimple Trade will earn money on currency exchange for U.S. trades and by eventually launching “premium features” that will carry fees, the company says on its website, adding a “clear pricing and fee schedule” will be published before the product is available.
The company currently has 100,000 clients in Canada, the U.S. and the U.K., and manages more than $2.5 billion in assets.