News Summary

Toronto-based Wealthsimple has launched a new margin trading feature, allowing investors to borrow money against their portfolios to make larger trades. This move democratizes a high-risk, high-reward investing tool previously limited to wealthy investors, making it accessible to more Canadians. With one of the company’s largest waitlists ever, eligible clients have already borrowed over $40 million. Margin trading in Canada has seen significant growth, with $38 billion traded in 2024 alone, marking a 50% increase in under four years. Wealthsimple offers competitive interest rates, 1% to 2% cheaper than traditional banks, and eliminates hidden fees commonly charged by other brokerages. The company has also introduced a margin health tracker to help users manage risk by monitoring account risk daily and issuing warnings before a margin call. In addition, Wealthsimple provides educational guides to ensure investors understand both the potential rewards and risks of margin trading. This launch is part of a broader trend of Canadians exploring advanced financial strategies beyond traditional stocks and bonds.