When you’re deciding where and how to invest your money, research is key. You want to consider all your options and make sure you end up with the solution that works best for you. And that’s where articles like this Wealthsimple vs TD comparison really come in handy.

TD is an established bank (one of the largest in North America) with over 100 years of tradition. It offers a high-end wealth management and investing service, plus a sideline in DIY investing through TD Direct Investing. Wealthsimple is a fintech company with over 1.5 million customers. They offer the best Canadian robo-advisor as well as a DIY online broker (Wealthsimple Trade).

Wealthsimple Trade vs. TD Direct Investing Quick Comparison Chart

Since online DIY investing is where the two companies have the most overlap, here are the details of TD’s and Wealthsimple’s investing platforms, side-by-side so you can get a clear picture of their different offerings.

TD Direct Investing

Wealthsimple

Investment Options

Stocks, ETFs, Mutual funds, Money markets, Bonds, GICs, Options, IPOs, T-Bills

Stocks and ETFs only

Free ETFs

No (but free mutual funds, bonds, GICs, T-bills, money markets)

Free to buy and sell all ETFs

User Experience

Recent upgrades to platforms (multiple platforms available)
Web platform can be buggy. The app is streamlined but lacks resources and some functionality.

Customer Service

Decent customer service, major push to improve response time.

Almost nonexistent customer service. Next to no support.

Trading Fees

$9.99/trade (standard) $7.00/trade Active Trader Pricing (150+ Trades/Quarter) Free mutual funds, fixed-income investments, and IPOs
None
ECN Fees
None
None
Account Options
Margin accounts, cash accounts, TSFA, RRSP, RESP, RIF, LIRA, LIF, RDSP
Personal, TFSA, RRSP

Account Fees

$25/quarter (fee can be waived in several ways)

None

Research Tools and Education Materials

Excellent app and resources with free real-time stock info.

Basic “How to invest” video resources on their site. No analytics or in-depth asset information. Stock info is 15 minutes old.

Safety

CIPF insured, IIROC regulated

CIPF insured, IIROC regulated

Mutual Fund Purchases

Promo Offer

$50 sign-up bonus

Sign Up

You can also check out our Wealthsimple Trade review and our TD Direct Investing review for even more specifics and our full opinion.

Wealthsimple vs. TD: Safety and Security

Both Wealthsimple Trade and TD Direct Investing are legit services that are IIROC regulated and CIPF insured for up to $1 million. Wealthsimple’s accounts are held in trust at a CDIC member institution, while TD is a CDIC member institution.

They both use high-level encryption and bank-standard security to protect your data. Basically, you can trust both Wealthsimple and TD with both your money and your information.

Wealthsimple vs. TD: Account & Trading/ETF Fees

Wealthsimple Trade’s big claim to fame is that it’s commission-free. They don’t charge fees to buy or sell stocks or ETFs, and they don’t have account fees. It was the first company to offer a commission-free model (National Bank Discount Brokerage followed their example).

No-fee investing sounds amazing, we know, but keep a couple of things in mind:

  • If they’re not getting money from you directly, they’re getting it some other way, like from selling your investment information.
  • You often get what you pay for. Just saying.

TD, in contrast, has some of the highest fees of any DIY brokerage. You pay $9.99 per trade unless you’re one of their Active Traders and make over 150 trades a month. That’s…a lot of trades, so you’re probably looking at paying the higher fee.

TD does offer commission-free trading on some investments including:

  • Mutual funds
  • Bonds
  • Strip Coupons
  • GICs
  • T-Bills
  • Other money market products

But the rest of your trades will incur the $10 fee.

TD also charges $25/quarter for account maintenance. It’s not a huge deal because it’s fairly easy to get out of (if your balance is over $15,000, or if you qualify for their TD Household Program, the fee is waived).

Really, when you compare fees for Wealthsimple Trade and TD Direct Investing, you’re looking at the highest and lowest ends of a spectrum. And, to be honest, neither is the best. Wealthsimple has the lowest fees, but brokerages like Questrade have low fees and a phenomenal platform to go with it. You can read more in our Questrade vs Wealthsimple comparison.  

Wealthsimple vs. TD: RESPs, RRSPs, TFSAs, and More

Continuing the theme of “you get what you pay for,” Wealthsimple Trade has an extremely limited selection of account options. You can open a TFSA, an RRSP, and a personal non-registered investment account. That’s it. Nothing else.

TD, like most other DIY online brokers, offers a more complete range of accounts, including:

  • Margin accounts
  • Cash accounts
  • TFSA
  • RRSP
  • RESP
  • RIF
  • LIRA
  • LIF
  • RDSP

As well as personal, joint, corporate, and trust versions of many accounts.

Wealthsimple vs. TD: Stocks and ETFs

Our theme continues as we look at Wealthsimple and TD’s investment options. Wealthsimple Trade offers stock and ETF purchases only. Meanwhile, TD offers the full range of investment options including:

  • Stocks
  • ETFs
  • Mutual funds
  • Money markets
  • Bonds
  • GICs
  • Options
  • IPOs
  • T-Bills

Wealthsimple Invest, their robo-advisor branch, gives you access to more than just stocks and ETFs, so this limited selection is clearly a choice Wealthsimple made in order to keep trades simple and fees low.

Wealthsimple vs. TD: ETFs vs Mutual Funds

Every ETF or mutual fund charges a Management Expense Ratio (MER). Although you don’t see a direct charge for them on your account, they’re still being taken out behind the scenes, and you should therefore still be aware of them.

Wealthsimple Trade allows you to purchase ETFs commission-free, as we’ve said, but an MER is still deducted from your account.

TD offers a commission-free alternative to ETFs, and that’s TD e-series mutual funds. These index funds track the performance of specific markets just like ETFs. While they’re commission-free like Wealthsimple Trade’s investments, the TD e-series funds have an MER over 0.3% across the board, and as high as 1.38% in some cases.

That makes them cheaper than many mutual funds but far pricier than most ETFs, including the ones you can buy through Wealthsimple Trade.

Wealthsimple vs TD: Available Promotions

TD Currently does not offer any promotions for opening a new account. Wealthsimple, on the other hand, has a pretty generous promo offer that applies to all of their services (both robo advisor and brokerage).

You get a $50 cash bonus when opening a Wealthsimple Trade or Wealthsimple Crypto account and deposit and trade at least $150.

Wealthsimple vs. TD: Mobile App & Advanced Investing Tools

Wealthsimple Trade has a dedicated trading app, which is free to download from the app store of your choice. We find their trading platform to be clunky to work with, and the information it provides is not so much streamlined as inadequate.

Serious traders will be turned off by the fact that basic Wealthsimple Trade account holders have to make do with 15-minute-old stock data (Wealthsimple Premium members pay $3/month for real-time snap quotes).

TD Direct Investing is built into the TD app, which is ranked #6 in the Apple App Store. It’s been recently upgraded and features free real-time snap quotes, plus additional investment data.

Some customers are sad that the recent app update eliminated the pretty background image, but on the whole, customers seem to be happy with the actual functionality of the app (which is what matters most in our books).

Wealthsimple vs. TD: Customer Support

Wealthsimple Trade is a discount DIY platform, and that goes for customer service as well! You can search their Trade Help Centre yourself and contact an email address if you really can’t find the info you need.

It’s bare-bones, to say the least (remember when we talked about getting what you pay for?).

By contrast, TD Direct Investing prides itself on excellent and fully featured customer service. They added 35% more licensed investors over the past 18 months to help improve customer wait times. They also provide investors with high-level analytics and real-time data to help them make the best possible decisions.

Wealthsimple or TD FAQ

Wealthsimple vs. TD: The Verdict

So now that we’ve looked at all the details, which of these platforms wins the crown for the best DIY broker?

Honestly? Neither of them.

Wealthsimple Trade is way down on our list of online discount brokers. The lack of account and investment options, the lack of support, and the lack of real-time data far outweigh the savings on commission.

TD Direct Investing has a fully developed DIY trading platform with excellent customer service and analytical tools to die for. But their trading fees are among the steepest out there. You’ll probably be happy with the service and resources- just know that you’re paying for them!

There are many excellent DIY online brokers out there with a range of options, fees, and services, but the best in our books is Qtrade or Questrade.

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Meg

Meg Goodmanson is a writer, editor, virtual assistant, credit card expert, and lifelong learner-of-things. A self-proclaimed nerd, Meg’s favourite thing is collecting information and presenting it in an interesting and helpful way—especially if it helps her travel for free!
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