Our bottom line
Wealthsimple wants to make wealth just that: simple. This investing solution utilises technology and uses experienced advisers to help customers’ investments grow. Central to its ethos is passive investing; tracking the market over time using a diversified portfolio. Customers benefit from a custom portfolio built around their level of risk, and the higher your balance the lower your fees. Added to that, there are no fees for withdrawals, transfers or leaving your account open with a zero balance, helping to keep the cost of investing with Wealthsimple as low as possible.
What kind of solution is Wealthsimple?
Wealthsimple aims to keep your costs as low as possible and to let your money grow gradually. Its approach of passive investing means it favours a diversified portfolio, which will track the market over time.
Portfolios are built around your level of risk, and take into account how old you are and what you are saving for. And if you change your mind at any point, there are no transfer or withdrawal fees. You won’t even be charged for leaving your account open with a zero balance.
Remember, if you’re ever unsure about the suitability of an investment for your own circumstances, please seek independent financial advice first.
Wealthsimple’s top features
This investing platform tries to make it simple for investors in an area of the financial world that is not always clear cut. Therefore, the ability to have a custom portfolio built for you around your level of risk is a big advantage.
The platform has three different risk levels: conservative, balanced and growth. Once you have opened your account, you will be contacted by one of the team to discuss what your savings goals are and therefore what sort of portfolio would suit you best.
Another big plus of Wealthsimple is its clear fee structure. You don’t have to worry about being charged for withdrawals or transfers, or even if you leave your account with nothing in it. And Wealthsimple will even cover the administrative transfers fees of another company if you transfer any account worth more than £5k to it.
As a digital investing solution, Wealthsimple also uses technology to its customers’ advantage. You will be able to benefit from automatic rebalancing, dividend reinvesting and tax loss harvesting, all without lifting a finger.
How do the fees work?
Fees depend on which pricing plan you are on. And this depends on how big your deposit is.
The Basic plan is for deposits up to £100k and charges 0.7% plus additional charges averaging 0.2%.
For deposits of £100k plus, then you will move to the Black plan and your platform fee will drop to 0.5% plus additional charges averaging 0.2%. You will also benefit from a financial planning session with one of Wealthsimple’s expert advisers.
If your deposits go over £500k, you will end up on the Generation plan where you benefit from the reduced fee of 0.5% plus additional charges averaging 0.2%. You will also have a dedicated investment adviser, ongoing portfolio monitoring, as well as portfolio and pension review.
There are no fees for withdrawals, transfers or leaving your account open with a zero balance.
Your Wealthsimple account will be managed by an in-house team of investment advisers and tailored to your financial goals. As an intelligent digital solution, the platform will also automatically rebalance your portfolio, reinvest dividends and conduct tax loss harvesting.
You can access your platform online or through the mobile app. The app helpfully groups your accounts together and gives you a breakdown of how your portfolio is performing. You can easily move funds and view upcoming deposits.
There are also rewards available in the app. These include £100 managed for free for 12 months if you turn on two-step verification, or £1k of your assets managed free if you have active regular contributions of at least £100 a month.
What are the risks?
Wealthsimple is a relatively low-cost, managed investment solution. You could potentially get lower fees if you were willing to do the legwork yourself, but by paying a fee you are handing that responsibility to someone else.
You have full visibility on how your portfolio is investing through the online and mobile platform. However, don’t get too bogged down in monitoring this every day as investments can go up and down. There are no guaranteed returns and Wealthsimple looks for growth over a long period of time, not through short-term gains.
The big benefit of Wealthsimple is that there are no fees for withdrawing money or for even leaving your account balance at zero. Which means you can extract yourself easily if it all feels too risky.
How accessible is Wealthsimple?
Simple in name, simple in nature. It only takes five minutes to set up your account with Wealthsimple and it can all be done online.
Once this is done, you will be contacted by a member of the team to talk through your risk appetite and therefore what type of portfolio would suit your needs.
All accounts are actively managed, which makes it suitable for novice investors.
Service and support
As mentioned, when you open your account you will speak to a member of the team about your financial goals and risk appetite.
If you have any questions at any point, you can contact a member of the Client Success Team. And the website features a Help Centre which has an extensive range of news articles on lots of different types of investment queries.
Is Wealthsimple right for you?
If you are a novice investor looking for a full managed, low-cost portfolio then Wealthsimple could be a good fit. Its clear and simple pricing is competitive, and the lack of exit fees makes it easy to change your mind if you want to.
The ability to build portfolios around your risk appetite makes it a straightforward solution to start investing with. And its online and mobile platform mean that you have full visibility over how your portfolio is performing.
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