investing
Wealthsimple vs Big 5 Banks 2026: Should I Switch?
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For Canadians weighing the move from a Big 5 bank brokerage to Wealthsimple, the math is brutal: on a typical $100,000 portfolio, the Big 5 costs $1,500-$3,000+ MORE per year in fees. After 12 months of running comparisons across RBC, TD, BMO, CIBC, Scotia, and Wealthsimple Trade, here’s the honest breakdown.
Quick answer: For 85% of Canadians, switching to Wealthsimple saves $500-$2,000+ per year. Use referral code BKCF8W for $175-$5,075 transfer bonus on top.
The simple cost comparison
| Trading commissions | MER (mutual funds) | MER (ETFs) | Total annual cost | |
|---|---|---|---|---|
| Wealthsimple Trade | $0 | N/A (ETFs) | $200 (0.20% MER on XEQT) | ~$200 |
| RBC Direct Investing | $238.80 ($9.95 × 24) | $1,800 (RBC funds avg 1.8% MER) | $200 if XEQT | $2,000-$2,500 |
| TD Direct Investing | $239.76 ($9.99 × 24) | $1,900 (TD funds 1.9% MER) | $200 if XEQT | $2,100-$2,500 |
| BMO InvestorLine | $238.80 ($9.95 × 24) | $1,750 (BMO funds 1.75% MER) | $200 if XEQT | $2,000-$2,500 |
| CIBC Investor's Edge | $166.80 ($6.95 × 24) | $1,900 (CIBC funds 1.9% MER) | $200 if XEQT | $1,900-$2,300 |
| Scotia iTRADE | $238.80 ($9.95 × 24) | $1,950 (Scotia funds 1.95% MER) | $200 if XEQT | $2,000-$2,400 |
Net savings switching from a Big 5 mutual fund portfolio to Wealthsimple Trade with XEQT: ~$1,500-$2,300 per year on $100K. Over 10 years of compounding, that’s $20,000-$35,000 of extra retirement wealth.
Where the Big 5 actually wins
The Big 5 isn’t worse at everything. Here’s where they genuinely beat Wealthsimple:
1. Branch access + phone support
Walking into an RBC branch and talking to a human banker about your portfolio is genuinely valuable for some Canadians. Wealthsimple is 100% digital. If you have a complex multi-asset, multi-currency, business-account situation, the Big 5 provides services Wealthsimple doesn’t.
2. USD account
TD Direct, RBC Direct, and BMO InvestorLine all offer free USD accounts where you can hold USD without forced conversion. Wealthsimple Trade charges 1.5% on USD conversions (waivable with Premium $10/mo or USD account). For active US-stock traders, the Big 5 actually saves money vs Wealthsimple free tier. Questrade also has a free USD account.
3. Banking-brokerage integration
If you bank with RBC AND invest with RBC Direct, transfers are instant and free. Wealthsimple requires Interac e-Transfer or EFT for funding (free but takes 1-3 days). For people who actively rebalance based on daily cash flow, the Big 5 integration is faster.
4. Options trading (some Big 5)
TD, RBC, and BMO support options trading at $9.95 + $1.25/contract. Wealthsimple Trade doesn’t support options yet (2026). If you trade options, you need Questrade, Interactive Brokers, or a Big 5 brokerage.
5. Royal Circle / equivalent premium tiers
RBC’s Royal Circle (clients with $250K+ in banking relationships) gets free trades and waived account fees. Same with TD Private Wealth, BMO Premier, CIBC Imperial Service. For high-net-worth Big 5 clients, the integrated package is meaningful.
The Wealthsimple transfer bonus math
Wealthsimple’s tiered referral bonus pays:
| What you transfer | Wealthsimple pays you | |
|---|---|---|
| $50K TFSA from any Big 5 | $50,000 | $275 bonus + $150 transfer-fee reimbursement |
| $100K RRSP from any Big 5 | $100,000 | $575 bonus + $150 transfer-fee reimbursement |
| $250K combined TFSA + RRSP | $250,000 | $1,275 bonus |
| $500K large RRSP | $500,000 | $2,575 bonus |
| $1M+ HNW transfer | $1,000,000+ | $5,075 bonus |
Step-by-step: move your Big 5 account to Wealthsimple
- Open Wealthsimple Trade or Invest using referral code BKCF8W
- Open matching account types inside Wealthsimple (TFSA, RRSP, FHSA — whatever you want to transfer)
- Inside the app: Transfers → Transfer-in from another institution → select your Big 5 bank, account number, and upload your most recent statement
- Wealthsimple files all the paperwork with your Big 5 — Form T2033 (RRSP), TFSA transfer form, etc.
- Wait 7-14 business days. During transit, the holdings are between trustees — you can’t trade them.
- Once arrived: sell your Big 5 mutual funds (if any) and buy XEQT, VFV, or whatever ETFs match your strategy.
- Claim the bonus + fee reimbursement — bonus auto-pays 30 days after transfer completes; reimbursement requires emailing Wealthsimple support a copy of your old broker’s statement.
Detailed guides per account type:
Common objections (and the honest answers)
“But my Big 5 bank is safer than Wealthsimple.”
False. Both are CIRO-regulated and CIPF-insured up to $1M per account category. Wealthsimple has $50B+ AUM and 4M+ clients. The Big 5 has more total assets but the same CIPF cap applies to your individual accounts.
”I’ll lose my mortgage discount if I move my investments.”
Usually false. Mortgage rates at most Big 5 banks are tied to your borrowing relationship, not your investment balance. Moving investments to Wealthsimple usually doesn’t affect your mortgage. Confirm with your specific banker, but it’s rarely an issue.
”I won’t be able to talk to a human.”
Partially true. Wealthsimple has email + in-app chat support. Response times are typically 24 hours. They don’t have phone or branch support like the Big 5. If you need to talk to a human regularly about your investments, this is a real downside.
”What if Wealthsimple goes out of business?”
CIPF covers you up to $1M per account category. Your holdings are held in segregated accounts at CIPF-member custodians. In the unlikely event of Wealthsimple insolvency, your assets would be recovered through the CIPF process — the same as if a Big 5 brokerage failed.
Bottom line
If you have your TFSA, RRSP, or FHSA at a Big 5 bank and you’re invested in bank mutual funds, switching to Wealthsimple Trade and holding XEQT (or similar ETFs) saves $1,000-$3,000+ per year on a $100K portfolio. Over 10-30 years, that compounds to tens to hundreds of thousands of dollars.
The Big 5 wins for: branch service, USD trading, options, integrated banking-brokerage, ultra-high-net-worth clients on premium tiers. For everyone else, Wealthsimple wins.
Sign up + use the BKCF8W code to claim the transfer bonus: wealthsimple.com/invite/BKCF8W
Frequently asked questions
Should I switch from RBC Direct Investing to Wealthsimple?
For most Canadians, yes. Wealthsimple Trade charges $0 per trade vs RBC's $9.95. On 24 trades per year, that's $238.80 saved. Plus you can move money from RBC mutual funds (typical 1.8-2.2% MER) into Wealthsimple ETFs (0.20% MER) — saving another $1,500-$2,000/year on a $100K portfolio. Use referral code BKCF8W during signup for the transfer bonus. The downsides: you lose RBC's USD account simplicity (Wealthsimple charges 1.5% FX on USD trades on free tier), and you can't walk into a branch.
Wealthsimple vs TD Direct Investing — which is cheaper?
Wealthsimple by a lot. TD Direct charges $9.99 per trade with no exceptions. Wealthsimple charges $0 on Canadian stocks and ETFs. For a buy-and-hold investor making 12 trades per year, the savings are ~$120/year. For an active investor making 100 trades per year, the savings are ~$1,000/year. TD wins ONLY if you bank with TD and want integrated banking-investing in one login.
Will my TFSA / RRSP transfer from Big 5 to Wealthsimple cost me anything?
Your Big 5 bank will charge a transfer-out fee ($135-$150 typically). Wealthsimple reimburses up to $150 of that fee — net cost to you is usually $0. The transfer itself preserves your contribution room (it's a direct trustee-to-trustee transfer, not a withdrawal). Wealthsimple handles all the paperwork via Form T2033 (RRSP) or equivalent (TFSA, FHSA).
Are Big 5 banks safer than Wealthsimple for my investments?
Functionally identical safety. Both Wealthsimple and Big 5 brokerages are CIRO-regulated and CIPF-insured up to $1,000,000 per account category. CIPF coverage caps at $1M regardless of which broker you use. For balances under $1M per account, safety is the same. Above $1M, split across two brokers regardless of which two you choose.
What about Big 5 mutual funds vs Wealthsimple ETFs?
Big 5 bank mutual funds typically charge 1.5-2.5% MER per year. Wealthsimple Trade ETFs (XEQT, VFV, VEQT) charge 0.09-0.24%. On a $100,000 portfolio over 30 years at 7% return: Big 5 mutual fund at 1.8% MER ends at ~$430,000. Same portfolio in XEQT at 0.20% MER ends at ~$760,000. Same returns, just $330,000 less in compounded fees.
Can I keep my Big 5 chequing account if I move my investments to Wealthsimple?
Yes. Many Canadians do this — they keep RBC, TD, CIBC, BMO, or Scotia for chequing (mortgage relationship, branch access, payroll setup) and move investments to Wealthsimple for lower fees. You can also pair Wealthsimple Cash (free, 2.75% interest) with a Big 5 chequing if you want a separate high-interest savings.
What's the absolute best Big 5 brokerage if I refuse to use Wealthsimple?
Among Big 5 brokerages, RBC Direct Investing has the cleanest mobile app and best research tools, BMO InvestorLine has the strongest free-stock-research access via S&P Capital IQ, and Scotia iTRADE has acceptable pricing tiers for active traders. All five charge $9.95-$9.99 per trade with no exceptions. For most retail Canadians, Wealthsimple still wins on raw cost — but if you're certain you want to stay in the Big 5 ecosystem, RBC Direct is the strongest.
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