Wealthsimple Inc. is launching a free stock trading app in Canada.
A Toronto-based start-up, Wealthsimple currently offers investing and savings products to customers. But the company says it is now launching a new stock trading platform with no commissions for Canadian users.
"We’re trying to build this ecosystem of products around our clients," said Wealthsimple Chief Executive Officer Mike Katchen in a written statement.
Starting on August 16, a group of customers will be invited to start using a beta version of the platform and encouraged to share feedback with the company before it undertakes a broader rollout. The trading platform will only be available in Canada to start, although Wealthsimple does currently offer some of its products in the U.S. and the U.K.
The new Wealthsimple trading app will start by offering the ability to buy and sell shares of more than 8,000 Canadian and U.S. stocks and exchange-traded funds, and says it plans to keep adding to that number in the future.
Wealthsimple has raised $125 million U.S. in funding and manages more than $2 billion for about 100,000 customers. While the company is one of the most well-known Canadian fintech startups, it will face stiff competition if it launches its trading products in the U.S.
Robinhood Markets Inc., a Menlo Park, California-based start-up that offers a free trading app, was founded in 2013 and now counts four million accounts. Wealthsimple won’t be offering a premium service at first but says its offerings could change between the current beta period and its official launch, based on user feedback.
The company will collect money on the cash sitting in customer accounts and will also charge a fee to convert currencies if, for instance, someone buys U.S.-listed shares of Apple Inc. and it needs to be converted into Canadian dollars.
