Is WealthSimple Safe and Legit? Is WealthSimple a Scam? (2024)

Is WealthSimple Safe?

Wealthsimple, based in Toronto and New York, has established itself as a financial services provider, though it no longer operates in the US.

If you're curious about Wealthsimple's reliability, keep reading for more details.

A Brief on Wealthsimple

Wealthsimple was founded in 2014 and originally served both U.S. and Canadian clients. In 2021, it sold its U.S. operations to Betterment, focusing now primarily on Canadian clients. However, Americans can still invest as overseas clients.

Wealthsimple offers a comprehensive range of services including brokerage, cryptocurrency trading, and tax-related services, aimed at simplifying investing, banking, and portfolio management through advanced technology like robo-advisors.

The Safety of Wealthsimple

For U.S. residents, it's important to note that Wealthsimple no longer maintains operational licenses in the U.S., which might raise concerns about its trustworthiness.

Despite this, Wealthsimple is a reliable firm, adhering to all necessary regulations and insurances to safeguard customer interests.

Wealthsimple's Insurance Measures

Wealthsimple is protected by two major Canadian insurance bodies: the Canadian Investor Protection Fund (CIPF) and the Canada Deposit Insurance Corporation (CDIC). The CIPF provides up to 1 million Canadian dollars in securities coverage, similar to the U.S.'s SIPC, while the CDIC covers banking deposits up to $100,000 per insured category.





These safeguards protect against brokerage failures, ensuring that even if Wealthsimple were to close, investors' assets would remain secure.

Open WealthSimple Account

Open WealthSimple Account

Is Wealthsimple Legitimate?

Wealthsimple is regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Securities Administrators (CSA), ensuring fair pricing, transparent operations, and data protection. While it’s not registered with the SEC or FINRA, U.S. investors benefit indirectly through the stringent standards required to service them.

Wealthsimple Reviews

Checking customer reviews on platforms like BBB, Trustpilot, and app stores provides additional insights into Wealthsimple's service quality.

Reviews are mixed but generally positive.

Wealthsimple's BBB Rating

Wealthsimple isn’t accredited by the BBB and currently holds an F rating due to unaddressed complaints, likely during its transition period selling its U.S. operations. This low rating reflects issues in complaint management rather than the overall quality of service.

Wealthsimple Google Play and App Store Reviews

In contrast, Wealthsimple's mobile app ratings are high, with a 4.6/5 on Google Play from over 3,000 reviews and a 4.7/5 on the Apple App Store from nearly 125,000 reviews.

Final Thoughts on WealthSimple's Safety

Overall, Wealthsimple is a trustworthy platform, well-regulated and backed by significant Canadian insurance safeguards. While it has faced some complaints, these do not detract from its status as a safe choice for investors.

Open WealthSimple Account

Open WealthSimple Account