How Does Wealthsimple Make Money With Free Trading?

By Remitbee - Jul 27, 2021

Many smart Canadian investors trade in US stocks. The world’s largest stock exchanges are in the US, as well as some of the biggest companies worldwide.

However, out of those investors using Wealthsimple, many have now realized that the fees and hidden charges may be eating into the profits they make on their investments.

Are you looking for Wealthsimple alternatives? Or want to find out how Wealthsimple makes its money with “free trading”? Keep reading, this guide will tell you exactly what you need to know.

How does Wealthsimple Makes Money

Firstly, how does trading US stocks with Wealthsimple work?

Wealthsimple makes money on the exchange rate when its customers buy US stocks. When you trade American stocks with Wealthsimple they charge you a 1.5 percent currency conversion fee.

What this means is that in addition to the exchange rate they use, which may not be the best available, there is also a conversion fee on top of that. While this may seem small, when you do regular trading, those dollars really add up. Your US dollar investments could be shrinking just due to your choice of using Wealthsimple as your platform for buying US stocks.

The platform is not set up for US accounts or trading, so instead every trade done is done in CAD at the exchange rate Wealthsimple sets. If you use the platform, there’s no way around paying that fee on every single transaction. Or is there?

An alternative to Exchanging Currency with Wealthsimple to buy US stocks

Anyone looking for a choice of US currency exchange should know about Remitbee.

So what is Remitbee Currency Exchange? Put simply, Remitbee is the best way to exchange CAD to USD in Canada. It’s done entirely online and all it requires is that you have a USD account with a Canadian bank.

If you live in Canada, it is really straightforward to get a USD bank account. More than likely, your current bank has a USD account that you can open in minutes online.

How it Works

Exchanging CAD to USD with Remitbee is simple. Send us the money using a bank account and we'll take care of the rest. Remitbee will make a direct transfer, in US dollars, into the bank account you choose. That will be your USD account with your Canadian bank. The process can be broken down into three easy steps.

  1. Create an account for free and fill out some basic personal information.
  2. Verify your information so that we can safeguard your identity.
  3. Finally, exchange money ASAP!

You can trade up to a maximum of 50,000 CAD per day once you've completed verification.

Buying stocks with USD after using Remitbee

In order to buy US stocks with your USD, you will need to use another stock trading service, not Wealthsimple. We’ve covered how to use Remitbee’s great exchange rates to buy US stocks with services like TD Direct Investing, QTrade, and CIBC Investor's Edge among others.

With most brokerages, you are locked in whatever exchange rate they want to offer when you buy US stocks. Usually, they add a margin to the real rate in order to make a profit. Using the right tactics, Remitbee could save you a lot by skipping that unfavourable exchange rate.

A brokerage like Interactive Brokers, for example, allows you to trade with US funds. So all you have to do is use Remitbee to change your Canadian cash into USD at a great rate, then fund your brokerage account with that USD and buy the American stocks that way. It’s simple and saves you a lot in the long run.

Start saving on Wealthsimple by checking out Remitbee now

Every dollar matters when it comes to investing. Except for its CAD to USD rates, Wealthsimple was one of the best sites for Canadians to trade US stocks. But smart investors have a choice now.

Remitbee Currency Exchange, a new venture from a popular money transfer company, is an alternative method of exchanging your money. It enables you to save money when trading US stocks by giving you a clear and simple exchange rate upfront.

Remitbee is regulated and audited by the Canadian government agency FINTRAC, so you can rest easy knowing your money is protected. We post our rates every single day on the front page of our website.

We do not charge hidden fees or costs, unlike your bank or other currency exchanges.

Think of all the money you’ll save on fees!

You can reinvest it and make even more, or just keep it for yourself. Our service is also really quick. In just two business days, you'll have your money.

Don’t take our word for it. Check out Remitbee Currency Exchange now and see how you can start saving on Wealthsimple trades today.


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