Is WealthSimple a Safe Broker?

Wealthsimple is a financial services company with offices in Toronto and New York. Even though it has a presence in the U.S., it does not offer services inside the United States.

Is Wealthsimple reliable? Read on to find out.

Wealthsimple Overview

The company began providing services in 2014 and was active in both the U.S. and Canada until 2021, when it sold its American branch to Betterment.

Wealthsimple has its own brokerage, crypto exchange, and tax preparation service, and it offers help with investment advice, banking and cash services, portfolio management, and automated investing.

These days, Wealthsimple is mainly active in the Canadian market, but people in the U.S. can still use its offerings as international investors.

Is Wealthsimple Safe?

Anyone in the U.S. who looks into Wealthsimple will notice that the company recently ended its U.S. licenses. This might raise questions about whether Wealthsimple is safe and can be trusted.

The short answer is yes, Wealthsimple can be trusted. It follows regulations and has the proper licenses and insurance to protect customers.

Here are the details.

Is Wealthsimple’s Insured?

Wealthsimple uses two kinds of insurance to shield its clients. They are the Canadian Investor Protection Fund (CIPF), which works like the American SIPC, and the Canada Deposit Insurance Corporation (CDIC), which is similar to the FDIC.

Is Wealthsimple safe?

Like what happens in the U.S., the CIPF covers clients’ assets up to 1 million Canadian dollars, and the CDIC protects the money in bank accounts up to $100,000 per category.

Both types of coverage defend investors if something goes wrong with the broker. If Wealthsimple closed down, people’s investments would remain protected.

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Is Wealthsimple Legitimate?

Wealthsimple is overseen by the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Securities Administrators (CSA).

These regulators watch over how the company does business, requiring fair prices, clear policies, and data security.

Although Wealthsimple isn’t registered with the SEC or FINRA anymore, U.S. customers still have some indirect protection from them. Canadian brokers must meet certain rules if they want to serve American clients.

Wealthsimple Customer Reviews and Ratings

Besides checking a broker’s licenses and insurance, it can help to see what users say. The BBB, Trustpilot, and app stores often share how satisfied customers are.

What do people think about Wealthsimple? There are mixed opinions, and you’ll find both positive and negative comments about the company.

Let’s dig deeper.

Wealthsimple Better Business Bureau (BBB)

Wealthsimple isn’t accredited by the BBB, but there is a rating and some feedback on the BBB site. It has the BBB’s lowest grade (F) and a single star.

However, BBB scores reflect how a broker replies to user issues, among other factors. For Wealthsimple, there were seven unhandled complaints at the time of its U.S. business deal with Betterment. It’s possible that Wealthsimple didn’t address those issues after the merger.

Is Wealthsimple legit?

Application Marketplace Reviews

Unlike the low score on BBB, more than 3,000 customers on Google Play rate the Wealthsimple Invest app 4.6/5 stars. The Apple App Store has a similar outcome, with almost 125,000 reviews averaging 4.7/5 stars.

Is Wealthsimple a scam?

Is WealthSimple Safe Final Thoughts

In short, Wealthsimple is safe. It has had a few complaints, but it’s regulated and licensed. Because of its oversight, trading on the platform and how data is handled are both fair and open. Also, investors’ money is always protected by two of Canada’s main insurance providers.

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