We've reviewed many investing and personal finance services. We want to help you make the best decision of which service best suits your needs.
This comparison we review Wealthfront and Wealthsimple.
From our research, annual fees, minimum deposit, and 401(k) support the most important features which choosing a robo advisor. Let's look at how Wealthfront and Wealthsimple stack up against each other on these features.
To start, we will compare the fees for trading with both robo advisors. Wealthfront has annual fees at 0.25% fee per year. In contrast, Wealthsimple has annual fees of 0%.
When it comes to fees, Wealthsimple wins by not charging anything to use their service.
Let's consider the minimum investment that's required to use both Wealthfront and Wealthsimple.
At $0, Wealthsimple requires a smaller minimum deposit.
When it comes to supporting 401(k) plans, there is a clear line of division. Wealthsimple does offer support for 401(k) plans, while Wealthfront does not. If you are someone who wants input on your employee-sponsored retirement account, Wealthsimple will be your option.
|Review||Wealthfront Review||Wealthsimple Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Tools & Resources|
|Promotions||$15k Managed for Free||Up to $100 Bonus|
|Account Fees||First $10k managed free; 0.25%/year for $10k+||Under $5k – FREE; $5k-$100k – 0.50%/year; $100k+ – 0.40%/year|
|Accounts Available||Taxable, Joint, Roth IRA, Traditional IRA, Rollover IRA, SEP IRA, Trusts, Non-Profit, 529||Taxable, Joint, Roth IRA, Traditional IRA, Rollover IRA, SEP IRA, Trusts|
Does the robo-advisor offer assistance with your employer sponsored retirement plan?401(k) Guidance
|Tax Loss Harvesting||Yes — All Taxable Accounts||Yes — All Taxable Accounts|
|Retirement Planning Tools||Yes||No|
|Automatic Deposits||Weekly, Biweekly, Monthly and Quarterly||Weekly, Biweekly and Monthly|
|Clearing Agency||RBC||Apex Clearing|
|Socially Responsible Investing||Yes||Yes|
|Invests in Commodities||Yes||No|
|Invests in Real Estate||Yes||Yes|
How can you access the sevice? Website only? Via smartphone app?Access
|Website, iOS App, Android App||Website, iOS App, Apple Watch, Android App|
More security to prevent unauthorized access to your account.Two-Factor Authentication
|Customer Service||Phone: M-F 7A-5P PT; Email||Phone: M-F 9A-5:30P ET; Email|
|Assets Under Management||$10B||$1B|
|Number of Accounts||226K||50K|
|Sign Up||Sign Up|
Wealthfront is a robo advisor that emphasizes low fees and automated investing. The service shines when you have a taxable account, and the service is free for accounts under $10k. The negative is it doesn't support fractional shares.
Wealthsimple is a solid addition to the current slate of robo advisors available. The service offers a socially responsible investment option, as well as assistance from a live representative. However, compared to other firms their fees are on the high side.