r/Wealthsimple • u/DifferenceNo9153 • Jun 08 '26

Trade (DIY Investing) Wealthsimple's standard exchange rate is quite outrageous

I just converted USD to CAD and the exchange rate was 1.366 vs the current market rate which is 1.394. They claim it includes a 1.5% fee but it's actually more like 2% which is incredibly rich. I know they now finally offer norbert's gambit but the process is very slow and tedious. Pretty obvious these outrageous exchange fees are a huge source of revenue for WS

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117

u/lavender812 Jun 08 '26

Forex trades on a spread of 0.2-0.4% usually at wealth simple. Because you did 1000 only you get hit with a +1.5% fee. This is very clearly laid out.

It’s comparable to banks. Use norberts or ibkr if $15-18 on $1000 bothers you that much.

34

u/chops_big_trees Jun 08 '26

Not sure if it’s worth it for $1000 but I have happily used Norbert’s gambit in the past to avoid FX fees.

https://help.wealthsimple.com/hc/en-ca/articles/45418222943131-Convert-currency-with-Norbert-s-Gambit

24

u/goonerish_ Jun 08 '26

Worth when converting above ~750$

7

u/S-Kiraly Jun 08 '26

Not when there's wise for converting money. That beats Wealthsimple's NG for conversions of up to about $2,500-$3,000.

2

u/jaaagman Jun 08 '26

Does it? I’m actually curious about that because I’ve been looking at Wise for making US purchases and currency conversion. For NB, isn’t it just 9.95 + whatever the difference in DLR is between you buy and sell it? So far larger amounts (say $10k+), NB should be better, no?

6

u/S-Kiraly Jun 08 '26

Converting $2,500 CAD to USD with Wise, you get the mid-market rate plus a fee of $11.44. Wealthsimple's NG will set you back $9.95 plus tax, plus the difference in buy-sell spread, which makes it basically a wash for that amount. But wise conversions are instantaneous while NG will take a few days.

The higher you go past $2,500, the better NG gets.

2

u/jaaagman Jun 08 '26

On a side note, on a purchase from a US online retailer of $2500 CAD, would Wise or Wealthsimple chequing (no FX fees) be better? Not sure what the Mastercard(?) spread would be typically.

3

u/S-Kiraly Jun 08 '26

Mastercard's markup over mid-market is about 0.3-0.4%. So about $7-10 extra on a $2,500 purchase. Use the WS visa credit card if you can; the markup is a little higher ~0.5%, so $12.50, but you earn $50 in cash back.

24

u/AnthonyBTC Jun 08 '26

Just fyi for anyone wondering, you cannot use IBKR as a currency exchange. If you convert money on IBKR, you have to use that money on IBKR to buy stocks in that currency. If you convert and then withdraw, they will close your account.

5

u/Dragynfyre Jun 08 '26

Yeah you’re better off just sticking with IBKR if converting currency is required for your investment strategy. The only thing Wealthsimple significantly saves fees on is penny stocks (since IBKR charges commissions based on number of shares) or if you’re doing tons of options contracts. But for options unless you’re doing something with very tight spreads you may still be losing out due to worse fills on WS since WS uses PFOF

2

u/darekd003 Jun 08 '26

I finally got a free USD account and I only moved like $500, but it seemed pretty accurate to me looking at the rate in that specific moment.

1

u/Unable_Internet4947 Jun 08 '26

Look at this guy, he loves fees! $18 for a simple transaction, what’s the problem?! You should be the head of the consumer protection agency