Summary: Wealthsimple is a Canadian multi-asset trading platform that supports several types of financial instruments, which include stocks, ETFs, and crypto. We recommend avoiding this platform for buying crypto as it charges extremely high fees and a small selection of tokens. The best method is using a digital asset exchange overseen by the Canadian Securities Administrators (CSA) that accepts CAD deposits.
Following a detailed assessment of the leading Canadian exchanges, our team found that Kraken is the best option due to its user-friendly interface, multiple CAD deposits, and low fees. It operates under the strict regulatory frameworks of both CSA and FINTRAC. Boasting a comprehensive portfolio of over 200 cryptocurrencies ready for trading and staking.
- Instant and free CAD deposits via Interac e-Transfer, credit cards and more.
- Trade and stake over 200 crypto assets with industry-leading fees and tight spreads.
- Founded in 2011 and trusted by over 9 million investors.
Kraken is a registered Money Services Business with FINTRAC (MSB Registration No. M19343731).
Can I Buy Bitcoin with Wealthsimple?
The short answer is yes, Wealthsimple offers 50 different cryptocurrencies to buy, sell, and trade. Unfortunately, the costs are very high and range between 2% - 5% for trading fees, and an additional 2% spread is applied to every trade. We recommend using a CSA-licensed digital asset exchange in Canada dedicated to crypto, as they offer a wider range of tokens and considerably lower costs.
How to Buy Crypto with Wealthsimple Alternative
For those keen on exploring digital asset investment through Wealthsimple, we suggest using a compliant exchange like Kraken. This platform is overseen by the CSA, facilitating quick and fee-free deposits in CAD from Canadian bank accounts. It offers various deposit methods, including Interac e-Transfer, wire transfer, and both debit and credit cards.
Wealthsimple customers can follow this step-by-step guide to securely buy cryptocurrency:
- Account Setup: Begin the process by creating an account on Kraken and verifying your identity.
- Currency Selection: Opt for your preferred deposit currency (CAD) on the Kraken platform.
- Deposit of Funds: Pick your most convenient payment method (for example, Interac e-Transfer, wire transfer, or credit card) and finalize your deposit.
- Digital Asset Purchase: Choose the cryptocurrency you want and complete your trade.
Wealthsimple Cryptocurrency Policy
As previously mentioned, Wealthsimple directly offers cryptocurrency on its platform, but the selection is limited, fees are high, and the platform is unregulated. For these reasons, we recommend that Canadian investors use a digital asset exchange regulated by the Canadian Securities Administrators (CSA) to maintain regulatory compliance in the country.
For those interested in a more hands-on trading experience, Kraken is a recommended platform. It is under the regulatory purview of the CSA and holds a Money Services Business (MSB) registration with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) under registration number M19343731.
Digital Asset Investing Fees
Grasping the fee structure for investing in digital assets is essential for maximizing your financial returns. Kraken offers cost-effective rates that can positively impact your overall earnings. Here's a simple guide to the expenses associated with digital asset transactions:
- Transaction Costs - Kraken uses a graduated pricing system for trades, starting at 0.16% to initiate a transaction and 0.26% to complete it. As you increase your trading activity, these fees reduce, enhancing your potential profits.
- Deposit Charges - Adding cryptocurrency to your account comes at no extra cost. However, if you're depositing fiat money, a small fee may apply. This charge varies depending on your chosen payment method, like credit cards or Interac e-Transfers.
- Withdrawal Fees - The costs for taking out funds are competitive and differ based on the specific digital asset you're transferring. For instance, withdrawing Bitcoin will set you back 0.0005 BTC.
Kraken's transaction costs are easy on the wallet and decrease as you expand your trading volume. The platform's rates for deposits and withdrawals are also highly competitive, making it an attractive choice for investors aiming to improve their financial outcomes.
What is Wealthsimple?
Wealthsimple is an online investment platform offering various products and services. It is licensed and regulated in Canada by the Investment Industry Regulatory Organization of Canada (IIROC). Products and services include investment accounts (RRSP, TFSA, RESP, non-registered), crypto trading, and Wealthsimple Black, a high-yield investment account with no management fees.
It has a simple and user-friendly interface and is a good choice for investors new to online investing or those who want to consolidate their investment accounts into one place. Another strength of Wealthsimple is its low fees compared to other online brokerages. Trading is available through the Wealthsimple Trade app, which can be downloaded for free from the Apple App Store or Google Play Store.
To wrap up, Wealthsimple’s offering might not be suitable for experienced crypto traders as the selection is small, and the fees can be quite high compared to other platforms. For those looking for a more cost-effective way to get involved in crypto trading, Kraken is an excellent option. It offers free and instant CAD deposits to buy, sell, trade and stake over 200 cryptocurrencies.