Frequently Asked Questions About Tej Wealthsimple Beginner Investing Setup
21 answers covering everything from basics to advanced usage.
// Basics
What is a TFSA on Wealthsimple and why start with it?
A TFSA (Tax-Free Savings Account) is a registered Canadian account where all investment growth and withdrawals are tax-free. It's the first account type Tej demonstrates because it offers the most flexibility for beginners: you can invest, grow tax-free, and withdraw without penalty. If you have unused TFSA contribution room, it's usually the best starting wrapper.
What is self-directed investing on Wealthsimple?
Self-directed investing is Wealthsimple's low-fee mode where you personally buy and sell stocks and ETFs inside any registered or non-registered account, rather than handing control to a managed Portfolio. It keeps costs down and decisions in your hands. When opening an account, you select 'Self-Directed Investing' instead of 'Portfolios' to enable this control.
What is the Move section on Wealthsimple used for?
The Move section is Wealthsimple's money movement hub covering CAD ↔ USD currency conversion, Interac e-Transfer, international wire transfers, bill payments, cheque sending, and bank draft ordering. It effectively replaces most traditional bank branch functions, letting you handle nearly all banking tasks without visiting a branch or holding a separate chequing account.
What's the difference between a registered and non-registered account?
Registered accounts (TFSA, RRSP) offer special tax treatment: TFSAs grow tax-free, RRSPs are tax-deductible with deferred growth. Non-registered accounts are standard taxable accounts with no contribution limits and no tax sheltering. The account wrapper you choose determines your tax outcome, so decide this before selecting any investment.
What's the very first thing I should do after logging in?
Orient yourself on the dashboard by confirming you can see all three zones: the top portfolio balance (with time filters), the bottom list of open accounts, and your holdings and watchlist. This orientation prevents confusion later. Only after you understand the layout should you tap Add Account to open the correct account type.
// How To
How do I set up a recurring transfer on Wealthsimple?
In the Add Money flow, after linking your bank and entering a dollar amount, choose a recurring frequency such as weekly or monthly instead of one-time. For example, set $50 weekly. This automates your contributions so you build an investing habit through a system rather than relying on willpower to deposit manually.
How do I sell a stock on Wealthsimple?
From the stock's page, tap 'Sell', select your order type (e.g., Market Sell), choose to sell in dollars or shares, and enter the amount. Tap Next, review the order summary, then Submit. The proceeds land back in the same account where the position was held, ready to withdraw or reinvest.
How do I transfer investments from another Canadian brokerage?
Go to Add Money → Transfer Account and click Get Started. Select the source institution and its specific sub-broker (for example, Scotiabank > iTrade), sign in with your existing credentials, and follow the in-app prompts. The transfer moves positions in-kind, so you don't need to sell first. Your holdings then appear under the matching account type.
How do I order a bank draft through Wealthsimple?
Navigate to Move → Order Bank Draft and complete the on-screen form with the payee details and amount. This replaces visiting a physical bank branch and is more reliable than a personal cheque for large transactions. It's the recommended option when a landlord or seller requires guaranteed funds.
// Troubleshooting
Why did my trade cost more than expected?
Likely because the stock is US-listed and settled in USD, triggering currency conversion from your CAD balance. US stocks like Nvidia don't trade in CAD. Always check the currency field on the order review screen before submitting, and use the CAD ↔ USD conversion tool in the Move section proactively to control your effective cost.
I accidentally bought in the wrong account. What now?
Wealthsimple defaults to a pre-selected account on the buy screen, so it's easy to buy in an RRSP when you meant a TFSA. The fix depends on the accounts involved and may have tax implications, so avoid this by always verifying the source account before submitting. Contact Wealthsimple support before attempting to move positions to understand any tax consequences.
My bank won't link to Wealthsimple. What should I do?
Use the 'Add New' option in the Add Money flow and sign in directly to your bank, following the prompts carefully. If direct linking fails, you can fund via Interac e-Transfer as an alternative funding path. Ensure your bank credentials are correct and that your account supports the connection before retrying.
Why can't I see all three dashboard zones?
The dashboard has a top section for total portfolio balance (filterable by 1Y, YTD, 6M, 3M, 1M), a bottom section listing all open accounts, plus visible holdings and a watchlist. If you can't see all zones, you may need to open your first account first, since an empty dashboard shows fewer elements until you add an account.
// Comparisons
How does Wealthsimple compare to a traditional bank brokerage like iTrade?
Wealthsimple offers commission-free stock and ETF trading and a modern app-first experience, while traditional bank brokerages often charge per-trade commissions. Wealthsimple also bundles banking functions (e-Transfer, bill pay, bank drafts) via the Move section. You can transfer holdings in-kind from iTrade to Wealthsimple without liquidating, consolidating everything in one lower-fee platform.
Should I use Wealthsimple self-directed or Managed Portfolios?
Use self-directed if you want to pick your own stocks and ETFs at the lowest fees and are willing to research order types. Use Managed Portfolios if you prefer automated, professionally allocated investing and don't want to make individual buy decisions. Beginners comfortable buying broad ETFs often start self-directed to avoid management fees.
How does a market order compare to a limit order on Wealthsimple?
A market order executes immediately at the current price with no price control, making it the simplest but potentially unpredictable in fast-moving markets. A limit order only fills at your specified price or better, giving control but no guarantee of execution. Tej uses market orders as the default example but stresses understanding all types before trading.
Is a bank draft better than a personal cheque for large payments?
Yes, for large or high-stakes payments a bank draft is more reliable because the funds are guaranteed by the issuer, unlike a personal cheque that can bounce. Wealthsimple lets you order bank drafts digitally through the Move section, so it's both safer and more convenient than writing a cheque or visiting a branch.
// Advanced
How should I structure contributions across TFSA and RRSP?
Generally prioritize your TFSA first for tax-free flexibility, then use the RRSP for retirement savings and tax deductions, especially in higher-earning years. Once both registered accounts hit their contribution limits, direct overflow into a Non-Registered account. Because each wrapper has different tax rules and limits, decide allocation before deploying capital, not after.
Can Wealthsimple fully replace my everyday bank?
For many users, yes. The Move section handles Interac e-Transfers, international wires, bill payments, cheque sending, and bank drafts, while the Checking and Spending/Saving accounts cover daily banking. Treating Wealthsimple only as a stock app misses these bank-replacement features. Confirm your specific banking needs are supported before fully switching over.
When should I manually convert CAD to USD before trading?
Convert proactively when you plan to buy multiple US-listed stocks and want to control your exchange rate and avoid per-trade conversion. Use Move → currency conversion to hold a USD balance, then buy US stocks directly from it. This can reduce surprises on the order review screen and gives you visibility into your true effective cost.
Does the in-platform Tax tab replace filing my full return?
The Tax tab enables in-platform tax filing directly through Wealthsimple, but it's a separate workflow from the investing setup. Tej treats it as its own process with a dedicated video. If your tax situation is straightforward, the Tax tab can handle your return; for complex situations, follow the dedicated tax filing sequence or consult a professional.