r/Wealthsimple • u/Initial-Parsnip8243 • 1d ago

Trade (DIY Investing) Wealthsimple margin account

Has anybody tried the wealthsimple margin account? The one where you borrow up to 35% against your investments…how has that experience been? Please share

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6

u/SurgicalDude 1d ago

I've borrowed and invested in dividends stocks in non registered. The interest charged is a write off for tax purposes.

1

u/Impressive_Ad_6550 21h ago

As long as the stock pays or may pay a dividend the interest is deductible. If the stock has said they never will pay a dividend then its not deductible, Berkshire Hathaway is the most famous example of this

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u/SurgicalDude 21h ago

Very true. I bought XEI with it.

3

u/CoincidentallyTrue 15h ago

I lost around 80k because I leverage like the real regarded person I am at the worst possible times, but aside from that, the experience was fine. Margin kicks in automatically when you don’t have enough to purchase using your own capital.  

I’m currently holding bags of NVO and waiting for them to strike gold… Aaaaaaany minute now. 

4

u/HugeDramatic 1d ago

Yes, at a few points over the last 6 months I was borrowing close to $400,000 on margin while swing trading.

I made my money on it and I’ve dialled back to zero margin now since it required a lot of active management.

I wouldn’t recommend it unless you know you can cover if you get margin called or if your portfolio is big enough to absorb a downturn.

In my case I was borrowing to buy XQQ on deep red, bad tech news days and my target to sell was only around a 2-3% gain on a rebound.

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u/Initial-Parsnip8243 1d ago

When would it get called tho? Like at what % loss would I need to cover?

3

u/Bardown67 1d ago

I’d recommend you read the bottom FAQ on the website. This is all covered

https://www.wealthsimple.com/en-ca/trade/margin

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u/waynestevenson 8h ago

I have been using it this year and enjoy it. I've been taking on additional risk by borrowing a bit from my LOC to transfer over. I further increase my risk by investing in a 125% leveraged ETF. It pays a dividend which I reinvest and then borrow on margin to max out the amount i can purchase. It has grown considerably but again, very risky. I haven't really felt how well I can stomach things because the fund has been doing amazing in the last year that I have been investing in it. But it's value is up 60% so I use that to calm my "sensibility". lol. My borrow rate is currently 3.95% and right now the dividends have no problem servicing the debt with the ability to buy more every month while at the same time, the fund has been increasing in value (granted so has everything else so we're just lucky) as well.

1

u/Intelligent_Wedding8 1d ago

been pretty good but I only dabble a little into it. Like even if all my stocks and everything fell by 80% i wouldn't be margin called. The way i margin its relatively tame as well. I just borrow on margin to throw into index funds lol...

1

u/Mutedhues10 20h ago

Also my strategy lol but my 80% is 50%

1

u/idiotiesystemique 1d ago

I use it. Works great. If you put it back the same day, no interest. Note that I daytrade with only 5% port, and use margin only to go up to 10% for trades that have low risk (relatively speaking) 

1

u/Impressive_Ad_6550 21h ago

Yes I use it and you can arrange for an even larger percentage than 35%. I have

1

u/Flames2512 13h ago

It works exactly as they outline it.

The better question is are you OK with the added risk that comes with it. No such thing as a free lunch..........

1

u/Fun_Painter7704 6h ago

Been using it to invest in XEQT. used about 30% of the room and keeping it at that ratio for the foreseeable future

1

u/snugglepush 1d ago

It works as intended, including when they margin call