Lisa MacColl is a writer, investor and former compliance consultant in the group retirement and individual wealth management fields. Lisa has written about personal finance for 14 years and currently writes about investing and investment providers for Wealthsimple. Lisa's past work has been published in Canadian Money Saver, Advisor’s Edge, CBC, and CreditCards.ca. She was a nominee for the 2015 Oktoberfest Women of the Year, Professional Category. Lisa holds an M.A. and B.A. from the Wilfrid Laurier University.
We believe that making smart choices with your money shouldn't be hard. To help you choose, we compared Vanguard Personal Advisor Services, Fidelity Go and Weathsimple Invest. Then we created this handy comparison for you to show how we stack up in terms of key features, accounts and pricing.
Your trust is important to us. That's why we always do our best to be fair and provide complete and accurate information. We also do our best to provide up-to-date information. You should know that any of Vanguard, Fidelity or Wealthsimple may change their product features or fees at any time. To complete your homework, we recommend visiting our competitor's site to continue your research.
About Vanguard, Fidelity & Wealthsimple
Vanguard is one of the world's oldest financial firms whose first fund, the Wellington Fund was launched in 1929. Vanguard Personal Advisor Services is their robo-investment platform, which offers a full range of investment products including mutual funds and Exchange-Traded Funds.
Fidelity is a multinational financial services company that offers a full range in stocks, bonds and mutual funds to both individual and institutional clients. It has approximately $2.6T assets under management globally and offers financial planning, trading and brokerage services and online investing. Its online managed portfolio platform is known as Fidelity Go.
Wealthsimple is an online investment manager that combines smart technology with expert financial advice. We allow you to put your money in a managed portfolio (Wealthsimple Invest) or put your money in a high-interest savings product (Wealthsimple Save). We've been in business since 2014, and have over $3 billion in assets under management.
How Vanguard Personal Advisor Services compares to Fidelity Go and Wealthsimple Invest (Managed portfolios)
|Fidelity Go||Vanguard Personal Advisor Services||Wealthsimple|
|Overall Rating on Nerd Wallet||4/5||3/5||4.5/5|
|Social Responsible Investing||No||Yes||Yes|
|Minimum Balance To Start Investing||$10 (accounts with balances of less than $10 are kept in short-term investments or cash)||$50,000||None|
|Financial Planning/Portfolio Review||Yes||Yes||Yes|
|Management Fees||0.35% of portfolio annually||0.30% on assets under $5M, 0.20% on assets from $5M-$10M, 0.10% on assets from $10M-$25M and .05% for assets over $25M. There may also be an account service fee of $20 for mutual funds only or brokerage accounts with less than $10K in assets who chose mail delivery. Accounts with over $10K or who choose electronic delivery of statements and fund updates do not pay the fee.||0.5% on $0-$100k and 0.4% for amounts over $100k|
|Transfer Fees (to another financial institution)||No||No||No|
Comparison of accounts offered (Managed portfolios)
Here's a list of the accounts that Vanguard Personal Advisor Services, Fidelity Go and Wealthsimple offer in the US:
|Account||Vanguard Personal Advisor Services||Fidelity Go||Wealthsimple|
|Rollover IRA||Yes||Cannot transfer securities in-kind. Only cash rollovers are permitted.||Yes|
The bottom line
Vanguard Personal Advisor Services, Fidelity Go and Wealthsimple have some things in common. Each provider offers an array of investment products that aim to make money work harder for investors.
But our biggest difference is in our approach and account minimum. At Wealthsimple, we allow you to invest in a socially responsible and a Halal friendly way. Vanguard allows you to invest in a socially responsible way. Neither Vanguard or Fidelity offer Halal investing. You will need $50,000 to start investing with Vanguard, $10 with Fidelity Go. Wealthsimple has no account minimum, you can get started with as little as $1.
Investment fees are important as they take away from any gains that you make. Vanguard's fee of 0.3% is less than Wealthsimple's fee of 0.5%. However, if you like getting paper statements and have less than $10,000, there's an additional fee of $20 per account. Fidelity's fee of .35% is also lower than Wealthsimple, however, you are limited to a slate of funds that may not meet your investment goals. You should make sure to compare the service you are getting in exchange for the fees you pay. Sometimes it's worth spending a little more to help your money work harder for you.
When it comes to education and advice Wealthsimple provides educational content Investing 101 and Wealthsimple Magazine and gives you access to a financial planner. Fidelity and Vanguard also have investment tools, information and the ability to access to an advisor.
Finally, in a review conducted by Nerdwallet.com, Wealthsimple scored 4.5/5 stars while Vanguard scored 3/5 and Fidelity scored 4/5.
Wealthsimple offers state-of-the-art technology, low fees and the kind of personalized, friendly service you might have not thought imaginable from an automated investing provider — start investing now.
What to consider when choosing an investment provider
Comparing investment providers doesn't have to be hard. Here's some advice to get you started:
Pay attention to account minimums Choose a provider that makes sense for what you can invest now - and in the future. Some investment providers require you to deposit as much as $100,000 to get started. And, in some cases you could face nasty penalties for dropping below the account minimum - or be forced to close your account.
Watch out for hidden fees * *
Nothing eats away at long-term gains quite like fees. And we're talking about more than just management fees (though they're important, too). Account transfers and trading fees can also add up. The best investment providers are upfront with what it costs to invest with them.
Look out for human support
When you need to make sense of a mysterious number in your monthly statement, nothing compares to talking to a fellow human. In the competition to offer the lowest possible management fees, some robo-advisors are quick to cut customer support. Before you commit to a provider, see what support is available - you never know when you'll want it.
Find out if you have access to a financial advisor
No two people are alike - and neither are their financial situations. But investment platforms vary in terms of how much access you get to professional advice. Keep an eye out for providers that offer access to a financial advisor. There are only a few who offer advice when you need it, regardless of how much money you have in your account.
Understand how much freedom you have * * Relationships end - even when you're investing for the long term. Before you commit, find out what happens if you need to withdraw your funds or want to move on to a new investment platform - and whether there are any penalties involved.
What makes Wealthsimple different to other investment providers
We do the work for you
Using Wealthsimple is, well, simple. In just a few minutes, we'll build you a custom portfolio that makes sense for your risk tolerance and investment timelines. And we'll do the maintenance for you, with automatic rebalancing and dividend reinvesting. All you have to do to get started is answer a few simple questions. And then you can sit back and tell all your friends how smart you were with your money.
No account minimums or hidden fees
You can start investing with as little as $1. Our fees are also really, really low. We charge 0.5% on $0-$100k and 0.4% on anything above $100k. Plus, you can make a withdrawal any time you want. So you can always count on your money being there when you need it. Start investing now.
Our financial advisors are fiduciaries, which is a fancy way of saying that they have a legal obligation to provide financial advice that's in your best interest - not ours. They're standing by to answer your questions and provide support whenever you need it. All you have to go is drop us a line by phone, email or even Skype. Get started.
More than 150,000 people love using Wealthsimple
See the reviews for yourself:
1.5k ratings in the Apple app store
2019 Top Robo Advisor (NerdWallet)
5 Stars - Simple.Thrifty.Living
Ready to give Wealthsimple a shot?
Put your money to work in a smart portfolio, designed to help you get closer to your financial goals. Start investing now and get access to our state-of-the-art technology, low fees, and access to advice from real humans whenever you need it.
The information on this page was compiled by Wealthsimple in March 2019. In order to uncover this information, we looked at Fidelity and Vanguard's websites, press releases and third-party sites. The information collected relates to features, accounts and pricing. The information is provided for comparison purposes only, as at the time of publication. The comparison is only intended for US investors.
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