Wealthsimple unveils commission-free stock trading service
The chief executive of Wealthsimple says an initial public offering could be part of the financial technology company’s future.
When asked in an interview with BNN Bloomberg Thursday about the prospect of taking Canada’s largest robo-advisor public, Michael Katchen said he’s “certainly” considering it but the time isn’t right at the moment.
“I think our long-term ambition is to create the next great independent financial services business in Canada and [an IPO] would be on our road map,” Katchen said.
“We’re not focused on that right now,” he added. “We’ve got a long way to go to keep building the company … But certainly we’ll reevaluate that over the coming years.”
Katchen’s comments came after Wealthsimple launched what the Toronto-based company says is the first zero-commission stock-trading service in Canada. The new service, Wealthsimple Trade, provides clients with access to unlimited zero-commission trades of more than 8,000 publicly-traded stocks and ETFs listed on major Canadian and U.S. exchanges.
“This is just one of many products we plan to launch in the next 24 months,” Katchen said. “Clients out there can expect more and more of this from us.”
In February, Wealthsimple received another $65 million from investment giant Power Financial Corp., which it first struck a strategic partnership with in 2015. Power Financial’s total investment in Wealthsimple now totals $165 million.
Wealthsimple currently has 100,000 clients in Canada, the U.S. and the U.K., and manages more than $2.5 billion in assets.
With files from The Canadian Press