Wealthsimple Says Ottawa Is Finally Banning the Fee to Leave Your Bank

Canadians have paid $73 million CAD in fees this year alone to move their savings to Wealthsimple, according to Michael Katchen, head of Wealthsimple, who said that the federal government has moved to ban exit fees at federally regulated banks.

Katchen said the move is a step toward fulfilling a promise in Budget 2025 to ban fees for transferring investment and registered accounts. He thanked Finance Minister François-Philippe Champagne for the federal government’s action, calling the move an important first step.

The federal budget previously said Canadians pay an average of $150 CAD per account to move their investments. A review released by the Financial Consumer Agency of Canada on October 23, 2026, provided more details about those charges.

According to the review, banks charge between $50 CAD and $150 CAD to move all assets out of a registered account. Partial transfers can cost between $25 CAD and $75 CAD.

The federal government’s move targets federally regulated banks but does not yet extend to provincially regulated financial institutions. Katchen called on provincial governments and the broader financial industry to follow Ottawa’s lead, arguing that Canadians should not face financial penalties simply for switching providers.

Katchen described the charges as a “tax on choice” and said Wealthsimple has never charged customers an exit fee. The Toronto-based fintech has long reimbursed customers any transfer fees charged by big banks.

The comments come during a period of expansion for Wealthsimple, which recently reached a valuation of $13.8 billion CAD. The company has also been expanding its financial products, including new credit card rewards for Turo rentals.

Meanwhile, traditional banks are also making it a bit easier for customers to move money between institutions. Last week, TD introduced a feature allowing customers to pull money from other banks through its mobile app.