Wealthsimple Launches Margin Trading—If You Can Stomach the Risk

Toronto-based Wealthsimple is now offering margin trading, a feature that lets investors borrow money against their portfolio to make bigger trades. This move makes a super high-risk, high-reward investing tool—once limited to the wealthy investors—available to more Canadians.

Wealthsimple says margin trading had one of its biggest waitlists ever, and eligible clients have already borrowed over $40 million. Margin trading in Canada has surged in recent years, with $38 billion traded in 2024 alone—a 50% jump in under four years.

To make borrowing easier, Wealthsimple lowered interest rates, offering rates 1% to 2% cheaper than banks while eliminating hidden fees that other brokerages charge. However, margin trading comes with serious risks—while it can boost profits, it can also magnify losses.

To help users manage risk, Wealthsimple built a margin health tracker that monitors account risk daily and sends warnings if an investor is close to a margin call (where they have to add money or sell assets to cover losses). The company is also rolling out educational guides to help investors understand how margin trading works.

Wealthsimple’s latest feature is part of a trend where Canadians are looking beyond stocks and bonds and using more advanced strategies to grow their money. But for those using margin trading, knowing the risks is just as important as knowing the rewards.

Click here to sign up for Wealthsimple and get $25 free. The app-based service is also available on the web. Last month, the company launched a 2% match promo for RRSP transfers and more and previously a free Apple promo to lure over more people from traditional big banks.

Disclosure: Wealthsimple is an affiliate partner and allows readers to help support independent media.