Wealthsimple Launches Crypto Trading with Unlimited, Commission-Free Trades
Image courtesy of Wealthsimple.

Wealthsimple Launches Crypto Trading with Unlimited, Commission-Free Trades

Will other robo advisors follow suit?

One of the key indications of the growing popularity of cryptocurrency is the increased accessibility of crypto trading resources. This is now evident in Wealthsimple, a Canadian financial services company, that will launch cryptocurrency trading. According to a July 17, 2020 report, the company will be launching a new feature dubbed Wealthsimple Crypto.

Wealthsimple to Launch Cryptocurrency Trading

Canada-based robo advisor Wealthsimple specializes in helping its customers conduct automated investing. The company does this by creating a low-cost portfolio for its users and investing for them. Michael Katchen, the co-founder and CEO of Wealthsimple, has stated that their goal is to facilitate a more inclusive financial world.

This means letting everyone, regardless of age or net worth, trade easily. The expansion into cryptocurrency was apparently a natural one for the company, as Katchen explained that there is a significant interest in the market within Canada. Despite the interest, he says, there were a number of entry barriers to trading digital assets on Canadian platforms.

Wealthsimple’s Commission-Free Crypto Trading

The solution to this is their new Wealthsimple Crypto platform. This gives Canadians the ability to trade easily and securely while on the go. Some interesting features of this new development include unlimited commission-free trading at any time of the day.

Besides this, users of Wealthsimple Crypto will get real-time quotes in order to aid their trading decisions. When they do trade, however, withdrawals and deposits will be made in Canadian dollars. At the same time, not all are overly optimistic about this new development.

Karl Schamotta, the chief market strategist at Cambridge Global Payments, has quipped that this move is more of a short-term revenue plan than a long-term investment. He likened the buying of cryptocurrency to collectibles in that it is bought with the hope that others will rebuy it at a higher price and not because of its inherent value. He feels that while cryptocurrency was created to address issues in the current economic systems, it has flaws of its own.

These flaws, according to him, include the fact that transactions are irrevocable. Furthermore, the economy will not widely accept a currency that is not centralized. The previous strikes in cryptocurrency value were due to speculation, he says, but cannot be maintained long-term.

Wealthsimple Extends to Digital Assets

This is not the only development that has taken place for Wealthsimple in 2020. In fact, the company has been on an active mission to expand for a while now. In January 2020, it was confirmed that the company had registered three new businesses.

The three new registered businesses were Wealthsimple Digital Assets, Wealthsimple Payments, and Wealthsimple Cash. Their CEO had been open about the desire to expand Wealthsimple into a full-stack financial services company. By his account, the company could be split into three pillars: saving and investing, responsible credit, and smart insurance.

In February 2020, just as COVID-19 fears were getting more prevalent, the company appeared to take a level-headed approach to the situation. That month, an email was sent out from the Wealthsimple portfolio management team to clients. The email urged them not to make emotional decisions in light of the outbreak.

The emails sent out were in a bid to reassure customers that they were still being taken care of. Allen advised that investors not pay too much attention to momentary speculation regarding the markets to avoid rash actions.

Just a few months later, the company announced a partnership with Mackenzie Investments to launch their first Exchange Traded Funds (ETFs). The funds in question were the Wealthsimple North America Socially Responsible Index ETF (WSRI CN) and the Wealthsimple Developed Markets ex-North America Socially Responsible Index ETF (WSRD CN), which came with management fees of 0.20% and 0.25% respectively.

Robo Advisors and the Future of Cryptocurrency Trading

This development is interesting not only because of its implications for cryptocurrency trading but also for the top robo-advisors in the world of investing. Robo-advisors are one of the recent innovations in fintech that allow for inclusivity and ease of transactions.

Wealthsimple is commonly portrayed as the leading robo-advisor in Canada. Yet regardless of country, the platform is deemed a leading robo advisor for high net investors.

Robo-advisors can not only allow real-time trading advice, but also aid the process for both high-net-worth individuals as well as ordinary people. Furthermore, they help in ensuring socially responsible investing by offering investment opportunities in line with customer values. With the success that Wealthsimple has seen thus far, we can expect this sort of feature to become even more commonplace.

Do you think this feature will be popular in the long-term? What do you think of robo-advisors? Let us know your thoughts below.

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