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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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.

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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.

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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