Wealthsimple Crypto Review (Feb 2024): Why We Don’t Like It

May 1, 2023
Reviews

Wealthsimple Crypto is the cryptocurrency exchange run by Wealthsimple. It uses a third party custodian for increased security, charges zero deposit or withdrawal fees, and has a user-friendly interface, but due to two main drawbacks—terrible customer support and high trading fees—I can't recommend using Wealthsimple Crypto in good faith.

The best crypto exchange in Canada is Kraken, both for its high level of security and for its extremely low fees. Kraken charges 10-20x less than other Canadian exchanges, so if you're looking for a secure, cost-effective way to buy and sell crypto in Canada, I can't recommend Kraken highly enough.

What Is Wealthsimple Crypto?

Wealthsimple Crypto provides automated investment services as well as tax plans and portfolio rebalancing to help people reach their financial goals through simple, low-cost investments. Wealthsimple also offers a brokerage platform, Wealthsimple Trade, which allows customers to trade stocks and ETFs at no cost.

The Wealthsimple Crypto and Trade apps are linked and work in tandem, meaning that they can be used on a mobile app and in desktop format. This makes using Wealthsimple Crypto quite convenient for existing Wealthsimple Trade users, and vice versa.

Wealthsimple Crypto Features

1. Third-Party Custodian

Gemini Custody, a third-party custodian, keeps your coins on this platform. The Winklevoss brothers (Facebook co-founders) founded it, and Gemini Custody is also regulated by the New York State Department of Financial Services (NYSDFS).

Gemini has $200 million in cold storage insurance. This increases safety because it means that even if the site were to be hacked, your coins would still be safe.

2. No Fees To Deposit Or Withdraw Funds

You won't have to worry about high minimum deposits when creating a Wealthsimple Crypto account. In fact, you can start investing with little as a single dollar.

Wealthsimple Crypto also doesn't charge any fees for depositing or withdrawing money. All you have to do is use an Electronic Funds Transfer (ETF) to move funds from a Canadian bank account to your Wealthsimple Trade app.

3. Beginner-Friendly Interface

The Wealthsimple Crypto user interface is very friendly to beginners, which is perfect for those who are just starting out in the world of cryptocurrency.

An intuitive user interface is also helpful for experienced crypto investors because it makes it easier to navigate, and it also makes trading a lot faster.

Cryptocurrencies on Wealthsimple Crypto

You can buy and sell 44 cryptocurrencies using fiat currency (Canadian dollars) on Wealthsimple:

Bitcoin (BTC)Chainlink (LINK)Cosmos (ATOM)Dai (DAI)
Ethereum (ETH)Uniswap (UNI)Decentraland (MANA)Enjin (Enjin)
Bitcoin Cash (BCH)Yearn. Finance (YFI)Fantom (FTM)Filecoin (FIL)
Litecoin (LTC)Maker (MKR)Gala Games (GALA)Loopring (LRC)
Dogecoin (DOGE)Compound (COMP)Maker (MKR)Polkadot (DOT)
Aave (AAVE)Curve (CRV)Polygon (MATIC)Ren (REN)
Basic Attention Token (BAT)Kyber Network (KNC)Shiba Inu (SHIB)Stellar (XLM)
Balancer (BAL)Synthetix (SNX)Solana (SOL)SushiSwap (SUSHI)
0x (ZRX)1inch (1INCH)Terra (LUNA)Tezos (XTZ)
ApeCoin (APE)Avalanche (AVAX)The Graph (GRT)The Sandbox (SAND)
Axie Infinity (AXS)Cardano (ADA)Uma (UMA)USD Coin (USDC)

Wealthsimple Crypto Fees

Wealthsimple Crypto does not charge any fees for deposits or withdrawals, nor do they charge any fees when creating or terminating an account. They also do not charge for electronic statements or trade confirmations.

However, be aware that there's a spread that is added to the price that can vary between 1.5% and 2% whenever you place a buy or sell order, making trading with Wealthsimple as expensive as with other high-cost platforms like Newton and Shakepay.

Why I Can't Recommend Wealthsimple Crypto

Despite its user-friendliness, I can't recommend Wealthsimple Crypto for two major reasons.

  1. Terrible customer support: Trust me when I say that trying to solve a problem with Wealthsimple is next to impossible. On multiple occasions, it's taken me months just to reach someone on their team who's capable of solving my issue, and in the end, that person just told me they're too busy to look into it. I've rarely experienced such poor customer support from any company, let alone a crypto exchange.
  2. Very expensive: Wealthsimple Crypto's fees and trading spreads are significantly higher than other exchanges like Bitbuy and CoinSmart, making it a poor choice for long-term or frequent investors.

Taking these factors into consideration, I instead recommend that you consider using Kraken. Here are a few reasons I recommend it over Wealthsimple Crypto.

Introducing Kraken: Our #1-Rated Crypto Exchange In Canada

Best In Canada
Kraken

Total Fees: ~0.16%
Security: Best in class
Customer Support: Excellent

By far the lowest fees in Canada.

★★★★★

Rated 4.9/5

Based in the U.S. and regulated by FINTRAC in Canada, Kraken is undoubtedly the best crypto exchange in Canada. Founded in San Francisco back in 2011, Kraken outperforms the smaller Canadian crypto exchanges due to its significantly lower fees, better customer support, and superior overall trading experience.

For starters, Kraken's fees are far lower than any Canadian exchange, with most users paying 0.16% per transaction (fees decrease down to 0% if you trade high volumes). Kraken's spreads are also absurdly low, typically around $0.10 per Bitcoin, which is 0.0003%. Compare that with the other Canadian exchanges—which routinely charge up to 2% in commissions plus an additional 2% or more in spreads—and it's easy to see why Kraken is such a popular exchange.

Kraken also has better customer support than any other Canadian exchange, and is the only exchange in Canada offering telephone support (available in English, French and Spanish). It supports 100+ cryptocurrencies and has a world-class trading platform and mobile app that's powerful yet easy to use.

If that wasn't enough, Kraken's trading platform is far more professional and robust than its Canadian peers, offering features like NFT trading, staking and support for a wide range of fiat currencies including CAD, USD, EUR, and more.

Overall, Kraken is the best fit for most Canadian crypto investors because it has lower fees, better support and a better trading platform overall. If you're looking to start trading crypto in Canada, we strongly recommend Kraken.

Features

  • Extremely low trading commissions (0.16%)
  • Extremely low spreads (0.0003%)
  • Trade 100+ cryptocurrencies
  • Stake 100+ cryptocurrencies
  • Simple, intuitive user interface
  • Kraken Crypto Watch allows you to keep track of the crypto market
  • NFT trading inside the Kraken app
  • 24/7 customer support via phone, email and live chat
  • Plenty of free educational resources available to users
  • 95% cold storage policy
  • Regulated by FINTRAC

Cost

  • Trading Fees: 0.16% (spot trades cost 0.26%)
  • Spreads: 0.0003%
  • Fiat Deposit Fee: 0%
  • Fiat Withdrawal Fee: $10 CAD

Best For

Canadian cryptocurrency investors looking to trade with the industry's lowest fees.

In Summary

Wealthsimple Crypto is a cryptocurrency exchange run by Wealthsimple. It uses a third-party custodian for increased security, charges zero deposit or withdrawal fees, and has a user-friendly interface, but due to two main drawbacks—terrible customer support and high trading fees—I can't recommend using Wealthsimple Crypto in good faith.

The best crypto exchange in Canada is Kraken, both for its high level of security and for its extremely low fees. Kraken charges 10-20x less than other Canadian exchanges, so if you're looking for a secure, cost-effective way to buy and sell crypto in Canada, I can't recommend Kraken highly enough.

Wealthsimple Crypto FAQs

How to withdraw from Wealthsimple Crypto?

To withdraw funds from your Wealthsimple Trade & Crypto account, all you need to do is follow these steps:

1. Web Browser

  1. Sign in to your Trade & Crypto account.
  2. Select the “Move funds” option on the top menu bar.
  3. Click on the “Withdraw funds” option.
  4. Select the account that you want to withdraw funds from.
  5. Choose the bank account that you want to move your funds into.
  6. Choose a withdrawal amount.
  7. Click Continue.
  8. Review the withdrawal details and click Submit withdrawal.

2. Mobile App

  1. Sign in to your Trade & Crypto account using the Wealthsimple Trade app.
  2. Tap the Move tab at the bottom of the screen.
  3. Choose the “Withdraw funds” option.
  4. Select the account that you want to withdraw funds from.
  5. Choose a withdrawal amount.
  6. Choose the bank account in which you will receive the funds.
  7. Review the withdrawal details and click Submit withdrawal.

Is Wealthsimple Crypto safe?

Yes. For starters, Gemini Custody, a cryptocurrency exchange and custodian that is licensed by the New York State Department of Financial Services, holds Wealthsimple Crypto's digital assets.

Wealthsimple Crypto is also offered through the CSA's Regulatory Sandbox under a time-limited regulatory approach, which makes it even safer.

However, considering your crypto funds are not covered by the Canadian Investor Protection Fund (CIPF) or Canada Deposit Insurance Corporation (CIDC), you will not get any reimbursements if Wealthsimple Crypto were to become insolvent.

Is Wealthsimple Crypto legal in Canada?

Yes. Wealthsimple Crypto is offered under a time-limited regulatory approach by the CSA's Regulatory Sandbox, which means that it is legal to use in Canada.

Is there a Wealthsimple Crypto referral code?

Wealthsimple recently stopped offering Wealthsimple Crypto referral codes, so unfortunately you're out of luck. Instead, we recommend opening a Bitbuy account instead while its $50 signup bonus still lasts (offer ends February 23, 2024).

Does Wealthsimple Crypto report to the CRA?

Yes, Wealthsimple Crypto is offered under a time-limited regulatory approach by the CSA's Regulatory Sandbox. As a result, it must disclose large transactions to the CRA at the end of the fiscal year.

Earn $347 From Our First Email