“It’s exciting to say we don’t have a minimum and there’s no catch.”
Those are the words of Mallory Greene, marketing manager at Wealthsimple, after the company took the decision to become the first investing service in Canada to have no minimum requirement.
The move follows on from last year’s acquisition of brokerage firm ShareOwner which allowed the company to gain end-to-end control over its’ clients’ investment experience, including trade execution, custody, portfolio construction and advice. Using its technology, it was able to build a portfolio using fractional shares.
So, whereas in the past, for example, investors that had around $100 to invest would be able to buy one share of VTI (Vanguard Total Stock Market index), now they can buy $10 of VTI plus a mix of other investments to build a fully diversified portfolio.
According to Greene this is a move that its clients have been looking for: and one that should offer the company a significant competitive advantage.
“We have clients of all ages and net worths, but for those just starting to build wealth, it made sense to remove the minimum,” she said. “Our goal from the beginning has been to make investing accessible and we’re going to keep removing the barriers that people are presented with when it comes to investing.
“We’re currently the only investing service in Canada with no minimum requirement. This will allow Canadians to try out the platform, and when they fall in love they can deposit more. Starting early is one of the most important rules of investing and there’s huge potential for every millennial looking to put a bit of money aside.”
Wealthsimple currently has more than $400 million in assets with more than 10,000 Canadians using it service.