Wealthsimple Expands Offerings to Cater to Active Traders
Toronto-based fintech innovator Wealthsimple is embarking on its most ambitious venture into active trading to date. On May 1, the company unveiled a comprehensive array of new tools designed to equip everyday Canadian investors with features typically reserved for professional traders.
This announcement coincided with The Trade Show, a significant event that attracted over 100,000 trading enthusiasts, both online and in person.
This strategic timing was underscored by a recent survey conducted by Wealthsimple in partnership with Angus Reid, which revealed that 38% of Canadian DIY investors engage in frequent trading.
Alarmingly, nearly half of the respondents opined that traditional banks and brokerages are faltering in their service offerings.
Moreover, approximately one in four indicated that Canadian platforms are trailing behind their international counterparts, a sentiment that swells to 35% within the active trader demographic.
Introduction of Futures Trading
The standout feature in Wealthsimple’s offering is the introduction of futures trading, currently in beta with a broader rollout anticipated in June.
Canadian investors will have the opportunity to trade some of the globe’s most liquid markets, encompassing the S&P 500, oil, and gold, nearly 24/7 for as little as $1 per contract.
Wealthsimple asserts it is the sole Canadian broker presenting futures with zero market data fees. Additionally, it provides an educational hub and in-app tutorials for those eager to expand their knowledge before committing financially.
“Forty-three percent of traders in Canada have explored futures, yet only 9% actively trade them,” commented Matthew Karasz, Senior Director of Product at Wealthsimple. “This illustrates a pronounced demand in the market.”
Options Trading Revolution
In a pioneering move, Wealthsimple is now the exclusive platform in Canada to offer options trading without commissions or contract fees.
The platform supports all four option levels, including naked puts and calls, complemented by a profit and loss visualizer.
Moreover, it grants access to U.S.-listed options on Canadian firms, thereby eliminating the necessity of maintaining separate accounts across multiple brokerages.
Launch of Trade Plus
Another notable enhancement is the introduction of Trade Plus, a sophisticated web interface that consolidates all trading activities on a single screen.
This platform offers real-time charting down to one-minute intervals, various candlestick views, and technical indicators such as moving averages, RSI, and VWAP.
Traders can place orders directly from the charts and manage stock and options positions seamlessly without the need to switch views.
Active Trader Incentives
Beginning this month, Wealthsimple is launching a rewards program that emphasizes trading activity over account size.
Clients who execute 50 or more trades monthly will benefit from priority support, access to a dedicated trade desk where representatives can execute trades on their behalf without charge (a service typically valued at $45 per trade), early access to new features, and a 3% transfer match, triple the standard rate of 1%, for as long as active trader status is upheld.
Since launching its trading platform in 2019, Wealthsimple has reportedly saved clients more than $4 billion in fees and achieved the most rapid growth in asset and trading volume among Canadian online brokerages last year.
These recent enhancements appear firmly targeted at retaining high-volume traders who might otherwise consider shifting their focus to international platforms.
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