Learning how to buy stocks on Wealthsimple is easier than you might think. Wealthsimple Trade has revolutionized stock trading in Canada by offering commission-free trades and an intuitive platform designed for beginners. This comprehensive guide will walk you through everything you need to know about Wealthsimple Trade and how to make your first stock purchase.
What is Wealthsimple Trade?
Wealthsimple Trade is Canada's first commission-free stock trading platform, launched in 2019 by Wealthsimple Technologies Inc. The platform allows Canadian investors to buy and sell stocks, ETFs, and cryptocurrencies without paying traditional brokerage fees.
Features and Benefits
💰 Commission-Free Trading
- • $0 commission on Canadian stocks
- • $0 commission on Canadian ETFs
- • No account minimums
- • No monthly fees
📱 Mobile-First Design
- • Intuitive smartphone app
- • Real-time market data
- • One-tap trading
- • Portfolio tracking
🇨🇦 Canadian Focus
- • TSX and TSX Venture exchanges
- • Canadian dollar accounts
- • TFSA and RRSP support
- • Canadian customer support
🔍 Research Tools
- • Company financial data
- • Analyst recommendations
- • Price charts and trends
- • News and market insights
Account Types Available
| Account Type | Tax Treatment | 2025 Contribution Limit | Best For |
|---|---|---|---|
| Personal (Taxable) | Capital gains taxable | No limit | Active trading |
| TFSA | Tax-free growth | $7,000 | Long-term growth |
| RRSP | Tax-deferred | 18% of income | Retirement savings |
| RESP | Tax-deferred | $50,000 lifetime | Education savings |
Step-by-Step Guide to Buying Stocks on Wealthsimple Trade
Ready to learn how to buy stocks on Wealthsimple? Follow this detailed guide to get started with stock trading onWealthsimple Trade:
Setting Up Your Account
Download the Wealthsimple Trade App
- • Available on iOS App Store and Google Play Store
- • Free download and installation
- • Compatible with most smartphones and tablets
- • Web platform also available at trade.wealthsimple.com
Create Your Wealthsimple Trade Account
- • Provide your email address and create a password
- • Enter your full name and date of birth
- • Input your Social Insurance Number (SIN)
- • Confirm your Canadian citizenship or residency
Complete Identity Verification
- • Upload a photo of your government-issued ID
- • Take a selfie for identity confirmation
- • Provide your address and employment information
- • Answer questions about your investment experience
Choose Your Account Type
- • Select Personal, TFSA, RRSP, or RESP account
- • Consider your investment goals and timeline
- • You can open multiple account types later
- • Review tax implications for each account type
Funding Your Account
Before you can learn how to buy stocks on Wealthsimple, you need to fund your account. Here are the available funding methods:
🏦 Bank Transfer (Recommended)
- • Link your Canadian bank account
- • Instant transfers up to $1,000
- • Larger amounts take 1-3 business days
- • No fees for bank transfers
- • Most secure funding method
💳 Bill Payment
- • Use your bank's bill payment feature
- • Add Wealthsimple as a payee
- • Include your account number as reference
- • Takes 1-2 business days to process
- • Good for larger transfers
⚡ Funding Tips for Success
- • Start with a small amount ($100-500) to test the platform
- • Ensure your bank account is in your name
- • Allow 1-3 business days for first-time funding
- • Check for any daily transfer limits from your bank
Placing Your First Order
Now for the exciting part - learning how to buy stocks on Wealthsimple Trade! Here's the step-by-step process:
Search for Your Stock
- • Use the search bar to find a company
- • Search by company name (e.g., "Shopify") or ticker symbol (e.g., "SHOP")
- • Browse popular stocks or trending securities
- • Filter by Canadian vs US stocks
Review Stock Information
- • Check the current stock price and daily change
- • Review price charts (1D, 1W, 1M, 1Y, 5Y)
- • Read company description and recent news
- • Examine key financial metrics
Choose Your Order Type
- • Market Order: Buy immediately at current price
- • Limit Order: Buy only if price hits your target
- • Dollar Amount: Invest a specific dollar amount
- • Number of Shares: Buy a specific quantity
Enter Your Order Details
- • Specify the dollar amount or number of shares
- • Set your limit price (if using limit order)
- • Choose order duration (day or good-till-canceled)
- • Review estimated total cost
Review and Submit
- • Double-check your order details
- • Confirm you have sufficient funds
- • Tap "Submit Order" to place your trade
- • Receive confirmation of your order
Tips for New Wealthsimple Trade Users
Now that you know how to buy stocks on Wealthsimple, here are essential tips to help you succeed as a new trader:
💡 Smart Trading Strategies
- •Start Small: Begin with $100-500 to learn the platform
- •Diversify: Don't put all money in one stock
- •Dollar-Cost Average: Invest regularly over time
- •Research First: Understand companies before buying
📊 Platform Features to Use
- •Price Alerts: Get notified of price changes
- •Watchlists: Track stocks you're interested in
- •News Feed: Stay updated on market developments
- •Portfolio Tracking: Monitor your performance
🎯 Recommended First Stocks for Beginners
Canadian Stocks (TSX):
- • TDB902 (TD Bank): Stable Canadian bank
- • VTI (Vanguard ETF): Broad market exposure
- • SHOP (Shopify): Canadian tech leader
- • CNR (Canadian National Railway): Defensive infrastructure
ETF Options:
- • VTI: Total US stock market
- • VCN: Canadian total market
- • XAW: Global ex-Canada stocks
- • TDB902: Canadian bond market
Common Mistakes to Avoid
Learning how to buy stocks on Wealthsimple includes understanding what NOT to do. Here are common mistakes new traders make:
❌ Emotional Trading
Mistake: Buying high during market euphoria or selling low during panic.
Solution: Stick to your investment plan and avoid making decisions based on emotions or daily market movements.
❌ Lack of Research
Mistake: Buying stocks based on tips or trends without understanding the company.
Solution: Always research a company's business model, financials, and competitive position before investing.
❌ Overconcentration
Mistake: Putting too much money in one stock or sector.
Solution: Diversify across different companies, sectors, and even countries to reduce risk.
❌ Timing the Market
Mistake: Trying to predict short-term market movements to buy low and sell high.
Solution: Focus on time in the market rather than timing the market. Regular investing tends to outperform.
FAQs on Wealthsimple Trade
Q: Is Wealthsimple Trade really commission-free?
A: Yes, Wealthsimple Trade charges $0 commission on Canadian stock and ETF trades. US stocks have a 1.5% currency conversion fee (1.25% for Premium users), but the trades themselves are commission-free.
Q: What's the minimum amount needed to start?
A: There's no minimum balance required to open a Wealthsimple Trade account. You can start investing with as little as $1, though we recommend starting with at least $100-500 to build a diversified portfolio.
Q: Can I trade US stocks on Wealthsimple Trade?
A: Yes, you can buy US stocks on Wealthsimple Trade, but there's a 1.5% currency conversion fee (1.25% for Premium subscribers). All US stocks are held in a USD account to minimize conversion fees on multiple trades.
Q: How long does it take for trades to settle?
A: Canadian stock trades settle in 2 business days (T+2), while US stock trades settle in 1 business day (T+1). You'll see the stocks in your account immediately, but funds from sales won't be available for withdrawal until settlement.
Q: Is my money safe with Wealthsimple Trade?
A: Yes, Wealthsimple Trade is a member of IIROC (Investment Industry Regulatory Organization of Canada) and is covered by CIPF (Canadian Investor Protection Fund) for up to $1 million per account category.
Ready to Start Trading?
Now you know exactly how to buy stocks on Wealthsimple Trade. Start your investment journey today with Canada's most popular commission-free trading platform.
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