If you live in the United States and want to learn the ropes of investing as a beginner, Stash could be for you. The micro-investing platform makes it possible to invest your “spare change” and grow your portfolio even when you don’t have much money to set aside.
Love the idea of DIY investing? Stash is one of a few investment apps retail investors can use to enter the stock market. Other apps in the U.S. include Robinhood, Acorns, Webull, Digit, and M1 Finance.
Is Stash available to Canadians? What are the alternative investment apps you can use in its place?
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Is Stash Available in Canada?
No, Stash is not available in Canada at this time. To open an account on the platform, you need the following:
- Social Security number
- U.S. citizenship, a Green Card, or certain visa types (E1, E2, E3, F1, H1B, L1, O1, or TN1)
- Bank account with a U.S. bank
You must also be 18 years or older.
The money management apps you can use in Canada as an alternative to Stash include Wealthsimple, Questrade, and Moka.
I discuss them in further detail below.
Alternatives to Stash in Canada
Whether you are looking for experts to manage your investments or you prefer to go it alone, the following investment platforms are worth checking out.
1. Wealthsimple Invest
Wealthsimple is Canada’s top robo-advisor based on our in-depth review.
It uses technology and low-cost ETFs to design customized portfolios that are diversified across asset classes and geographical locations.
The portfolio that is recommended for you also matches your risk tolerance and investment objectives.
Wealthsimple clients enjoy access to free financial advice, automatic portfolio rebalancing, and dividend reinvesting. And your account also includes a Roundup feature to help you invest your spare change.
Accounts: You can invest using TFSA, RRSP, RESP, RRIF, LIRA, LIF, personal non-registered, and corporate investment accounts.
Fees: 0.40% to 0.50% per year.
Security: Investment accounts are insured by the Canadian Investor Protection Fund (CIPF) by up to $1 million against insolvency.
Promotion: Get a $25 cash bonus when you sign up through our exclusive link and fund your account with $500 or more.
2. Questrade
Questrade is “Canada’s fastest-growing online brokerage.”
With over 21 years of operating in the Canadian market, $30 billion in assets under management, and competitive low fees, this platform is a must-see if you are serious about DIY investing.
Questrade offers “self-directed” traders access to stocks, ETFs, options, bonds, GICs, and foreign exchange.
Self-directed trading can lower your investment fees; however, it also means you are responsible for what you buy or sell in your portfolio.
Accounts: You can invest using RRSP, TFSA, RESP, RRIF, LIRA, LIF, margin, corporate, and personal taxable accounts.
Fees: $4.95 to $9.95 per trade for stocks and ETFs; varies for other assets; ETF purchases are free.
Security: Your Questrade investment account is insured by CIPF.
Promotion: Get $50 in free trades when you open an account and use our offer code SAVVY50.
3. Wealthsimple Trade
Wealthsimple Trade is the only Canadian brokerage platform to offer commission-free purchases and sales of stocks and ETFs.
If you are a beginner investor looking for an affordable way to start trading, my choice is Wealthsimple Trade.
This platform is available on all devices, including mobile phones.
Assets offered: Stocks and ETFs.
Accounts: TFSA, RRSP, and personal taxable accounts.
Trading fees: $0/trade. FX fees may apply to U.S. trades.
Security: Your trade account is protected against insolvency by CIPF (up to $1 million).
Promotion: Get a $25 bonus when you fund your new account with $150 or more.
Wealthsimple Invest vs. Wealthsimple Trade
If you are wondering how both platforms differ:
- Wealthsimple Invest is the robo-advisory service that offers hands-free investment management, i.e. everything is done for you (including stock selection, rebalancing, dividend re-investing, etc.).
- Wealthsimple Trade is a stock trading app you can use to purchase securities online. You are in control of your trading strategy, and financial advice is not provided.
4. Moka
Like Stash, Moka can automatically round up your purchases and invest your spare change. It was one of the first spare-change investing apps available to Canadians.
In addition to investing, Moka offers a Moka 360 service that includes:
- Bill negotiation
- Debt repayment
- Cash back rewards
- Financing coaching
Accounts offered: RRSP, TFSA, and personal non-registered accounts.
Fees: $3/month for Moka; $15/month for Moka 360.
Security: Your funds are held at a custodian that provides CIPF insurance.
Promotion: Get a $5 bonus when you open an account and connect your bank account.
What is Stash?
Stash is a financial technology company founded in 2015.
Users of the platform can use it to invest for short and long-term goals, budget, save money, and earn rewards (stocks).
As of this writing, Stash had over 5 million users and is available on all devices.
It is also a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).
Stash – Main Features
Stash has three main plans with monthly costs ranging from $1-$9 per month. The plans are referred to as Stash Beginner, Stash Growth, and Stash+.
Investing: You can purchase ETFs or stocks and hold them in a personal taxable account, Roth or Traditional IRA. Custodial accounts can also be opened for children.
Stash investment accounts have a $1 minimum requirement, and the availability of fractional shares means you can purchase bits of your favourite stocks or ETFs.
Banking: Stash offers banking services, including a Stash Visa debit card through Green Dot Bank. Your Stash bank account has no overdraft or monthly maintenance fees. It also has budgeting, mobile check deposits, automatic bill payments, and round-up features.
You can use the Stash Stock-Back card (debit card) to earn stock rewards at more than 11 million places in the U.S.
Also, if you have set up direct deposit to your Stash account, you may be able to access your paycheck up to 2 days early.
Life Insurance: Group life insurance coverage is available to individuals aged 18-54 and is subject to other criteria.
Where Stash Falls Short
Stash is more expensive than competing robo-advisors like Betterment and Wealthfront.
If all you invest every month is your spare change, a flat $3 or $9 monthly could translate into a high management expense ratio (MER).
Also, the platform scores an “F” rating on the Better Business Bureau and 3.3/5 on Trustpilot. Many of the complaints appear to be related to poor or delayed customer service support.
Stash Canada: Investing Apps Like Stash in Canada
Overall
4.2
Summary
Is Stash available in Canada? Learn about investing apps like Wealthsimple Trade, Questrade, and Moka you can use as a Canadian investor.
- Get Wealthsimple Trade
Editorial Disclaimer: The investing information provided here is for informational purposes only and is not intended as individual investment advice or recommendation to invest in any specific security or investment product. Investors should always conduct their own independent research before making investment decisions or executing investment strategies. Savvy New Canadians does not offer advisory or brokerage services. Note that past investment performance does not guarantee future returns.
I am an avid investor with a deep understanding of various investment platforms, particularly those in the United States and Canada. My expertise is rooted in practical experience and comprehensive research, allowing me to provide valuable insights into the world of investing. I have actively used and analyzed platforms like Stash, Robinhood, Acorns, Wealthsimple, Questrade, and more.
Now, let's delve into the concepts and information presented in the article:
Stash Overview:
Stash is a financial technology company established in 2015, offering a micro-investing platform. It enables users, particularly beginners, to invest their "spare change" and build a portfolio with minimal funds. Stash caters to DIY investors, providing a user-friendly interface for entering the stock market.
Stash Availability in Canada:
As of now, Stash is not available in Canada. To open an account on Stash, individuals need a Social Security number, U.S. citizenship, a Green Card, or certain visa types, and a U.S. bank account. The alternatives for Canadians include Wealthsimple, Questrade, and Moka.
Alternative Investment Apps in Canada:
-
Wealthsimple Invest:
- A leading robo-advisor in Canada.
- Utilizes technology and low-cost ETFs for diversified portfolios.
- Provides free financial advice, automatic rebalancing, and dividend reinvesting.
- Accounts include TFSA, RRSP, RESP, RRIF, LIRA, LIF, and more.
- Fees range from 0.40% to 0.50% per year.
- Insured by the Canadian Investor Protection Fund (CIPF).
-
Questrade:
- Described as "Canada’s fastest-growing online brokerage."
- Offers self-directed trading with access to various assets.
- Accounts include RRSP, TFSA, RESP, RRIF, LIRA, LIF, margin, corporate, and personal taxable.
- Trading fees range from $4.95 to $9.95 per trade.
- Questrade investment accounts are insured by CIPF.
-
Wealthsimple Trade:
- The only Canadian brokerage platform with commission-free stock and ETF trades.
- Ideal for beginner investors with a user-friendly interface.
- Available on all devices, including mobile phones.
- Accounts include TFSA, RRSP, and personal taxable.
- No trading fees; FX fees may apply.
- Trade accounts protected against insolvency by CIPF.
-
Moka:
- Offers automatic round-up investing similar to Stash.
- Additional services include bill negotiation, debt repayment, and cash back rewards.
- Accounts include RRSP, TFSA, and personal non-registered.
- Monthly fees of $3 for Moka and $15 for Moka 360.
- Funds held at a custodian with CIPF insurance.
Stash Features and Criticisms:
-
Stash Plans:
- Three plans with monthly costs: Stash Beginner, Stash Growth, and Stash+.
- Allows purchasing ETFs or stocks in personal taxable accounts, Roth or Traditional IRAs.
- Minimum investment requirement of $1, with fractional shares available.
-
Banking Services:
- Stash offers banking services, including a Stash Visa debit card.
- No overdraft or monthly maintenance fees.
- Stock rewards with the Stash Stock-Back card.
-
Life Insurance:
- Group life insurance coverage available for individuals aged 18-54.
-
Downsides of Stash:
- Relatively more expensive than competing robo-advisors.
- Receives an "F" rating on the Better Business Bureau and mixed reviews on Trustpilot, particularly related to customer service issues.
Conclusion:
In summary, for Canadians seeking alternatives to Stash, platforms like Wealthsimple, Questrade, and Moka offer diverse options for both managed and DIY investing. Each platform comes with its unique features, fees, and account options, allowing investors to tailor their choices based on preferences and financial goals. It's essential for investors to conduct independent research before making decisions, as highlighted in the article's editorial disclaimer.
