"At first, I thought traditional banks were automatically the best choice. Until I realized that fees were eating up a significant portion of my small investments."
At first, I was investing with RBC and other traditional financial institutions. Honestly, I didn't really know the differences between brokerage platforms at the time. In my mind, "real banks" were automatically the best choice.
Over time, I realized there were often transaction fees. And when you start investing with small amounts, those fees can become very discouraging.
The problem with fees on small amounts
Someone investing $1,000 at once will feel less impact from a $9.99 commission. But when you start with $50 or $60 at a time, that same fee takes up an enormous share.
The real impact of fees on $50
"The most important thing is to start investing, even with small amounts. Even $50 can double and more over several years."
That's mainly why I chose Wealthsimple. The fact that there's generally no commission on transactions helped me stay consistent in my investing.
Platform comparison in Canada
| Broker | Stocks | ETFs | Notes |
|---|---|---|---|
| Placements directs TD | 9,99 $/transaction | Some free | Fees if low balance |
| RBC Direct Investing | 9,95 $/transaction | Similar fees | Balance conditions |
| Disnat (Desjardins) | $0 online | $0 online | Inactivity fees |
| Questrade | Some free | ETFs commission-free | Admin fees |
| Wealthsimple | 0 $ | 0 $ | Simple and accessible |
Why Wealthsimple for small investors
When someone sets aside money regularly — say $50 every two weeks — fees make an enormous difference over the long term.
About two years ago, I decided to gradually leave traditional bank platforms to centralize my investments on Wealthsimple. For someone who is starting out, who wants to invest little by little and keep things simple, this is personally a platform I recommend.
In summary, Wealthsimple has made investing much more accessible, especially because I could invest regularly without feeling that fees were "eating up" my small amounts.
I am not a financial advisor. This article shares my personal experience. The Wealthsimple link is a referral link — you receive a bonus when you sign up.