What we like:
Full Extended Hours Trading
SIPC protected upto 500K
Trade Stocks, Options, ETFs & ADRs
Wealthsimple is an online investment management service with headquarters in Canada and offices in London and New York. The Wealthsimple UK company prides itself on building the most human financial platform through automated investing. The platform manages over £3 billion in assets with over 300,000 clients globally.
One of Wealthsimple UK products is the Individual Savings Account (ISA). The ISA account enables users to hold cash and investments.
Individual Savings Account (or ISA) is a form of investment that exempts UK-based investors from taxes on profits. The amount of money invested in ISAs each year is limited, with the total permitted amount changing yearly.
What is Wealthsimple ISA and how does it work?
With Wealthsimple you have the option to invest in the portfolio via a Wealthsimple Stocks and Shares ISA, Junior ISA, via a pension or via a general trading account outside of any ISA wrapper.
The Wealthsimple ISA allows customers to invest up to £20,000 per year. The account contains equities rather than cash, making it perfect for ordinary individuals to take part in the stock market.
Investors can also put their money in unit trusts, a group of stocks and bonds. Investors can also consider a diversified portfolio of Exchange Traded Funds (or ETFs). All profits made from this account are tax-free. The tax treatment of Stocks and Shares ISA and a Wealthsimple Pension relies on a customer’s circumstances and may be subject to change in the future.
Elsewhere, the Junior ISA is individual savings account for those aged under 18. The account can be set by either a parent or guardian. The annual JISA allowance for 2019/2020 is £4,638 per year while the 2020/2021 allowance is £9,000. Notably, the accounts do not attract any taxes on growth. Users within an existing ISA can transfer it to the Wealthsimple ISA conveniently at no extra cost.
With the pension account, the investment portfolio will be based on the risk profile.
Opening a Wealthsimple ISA account
To open an account users need to be:
- 18 years old UK citizen;
- Not have taken out other Stocks and Shares ISA this year;
- Have both a Cash ISA and Stocks and Shares ISA in the same tax year;
- Only invest the annual limit set by the state each year. The 2020’S limit is £20,000.
Read Wealthsimple Review 2020
Open Wealthsimple Account
Is Wealthsimple ISA safe?
To keep the customer’s money safe, Wealthsimple deploys the state of the art security, two-factor authentication, and encryption, and assets are secured by the Financial Services Compensation Scheme.
Wealthsimple Pricing and Account Features
Opening an account does not require a minimum amount. Customers do not pay any costs for trading, account transfers, or rebalancing.
The Wealthsimple Basic account allows individuals to deposit between £0 – £100,000. The account attracts a fee of 0.7%, additionally the fund fees average 0.2%. The account also has a customized portfolio, expert investment advice, automatic rebalancing, dividend reinvesting, and Direct Debit contributions.
The Wealthsimple Black account allows users to deposit over £100,000 with 0.5% in fees, in addition, to fund fees with an average of 0.2%. The account comes with all basic features, lower fees, and portfolio reviews.
Wealthsimple ISA Customer Experience
There are two primary options for how you can reach Wealthsimple support. Users can create a support ticket or make a direct call.
Wealthsimple ISA Pros
- Profits are not taxed;
- Trading underlying assets (stocks and ETFs);
- Access to human advisors;
- Free portfolio analysis;
- Socially responsible investment options;
- No account minimum;
- Users within an existing ISA can transfer it to the Wealthsimple ISA conveniently at no extra cost;
- Globally recognized service provider.
Wealthsimple ISA Cons
- Account management fees could be a bit lower;
- Limited personal finance tools;
- With the investment, your capital is at risk.
Please note: Wealthsimple offers other products like Wealthsimple Invest, Wealthsimple Cash, and Wealthsimple Trade. Notably, Wealthsimple customers can use a combination of the products. Read our in-depth Wealthsimple review and learn what is auto investing and why more and more people use such a solution.