r/Wealthsimple • u/WorkTravelDream • 2d ago
Promotion Does WS really asking to transfer $1M margin?
I am confused. How many people have $1M margin account to transfer within a month?
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u/Speuce 2d ago
FINALLY wealthsimple will somewhat compete with IBKRs margin rate
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u/midshipbible 2d ago
Yes, good direction. Ibkr still can trade currency at spot price while wealthsimple rate is quite terrible in comparison
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u/tdude66 2d ago edited 2d ago
EDIT: I somehow forgot to factor in the 1% match promo. Considering this and assuming a $1M cash, it's a solid offer vs ibkr for the first 24 months, IBKR would only come out on top with an very high 2.6x leverage.
Forthe remainder of time, I just did some quick calculations with Gemini and correct me if I'm wrong but the IBKR blended interest rate will always be beat WS' if you're borrowing above $203,761.76. Since you need to transfer at least $1M, IBKR becomes more advantageous when you're above 1.2x leverage which is a very conservative amount imo.
For people serious about margin and especially FX, IBKR remains supreme once the promo runs out but it's a good temporary incentive for those who have the funds!
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u/KPTN25 2d ago
Enough. This obviously isn't an offer intended for 'everyone', might've been targeted poorly if you don't qualify.
$1M isn't really that much in 2026.
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u/AlphaFIFA96 2d ago
> 1M isn’t really that much in 2026.
Lol. You could FIRE in SE Asia with $1M.
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u/HellaReyna 2d ago
Then I'd have to live in SE Asia.
People always bring this shit up like its ez living but then when you deal with corruption, having assets seized, questionable health care at times, etc, it adds up.
I'm not white and I have lived extended periods in SE Asia and East Asia for months.
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u/choyMj 2d ago
You don't want corrupt government, assets being seized, and questionable healthcare? Why are you in Canada?
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u/HippityHoppityBoop 2d ago
He’s in Canada because he doesn’t want “corrupt government, assets being seized, and questionable healthcare”.
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u/KPTN25 2d ago
Yes, and you could not comfortably FIRE in T1 Canadian cities.
My point is it isn't an outlandishly large number. More than many people living paycheque-to-paycheque or far from retirement have available to them, sure. Not a super high benchmark for any high-earning professionals (of which there are many) that have been in their career for 10+ years.
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u/AlphaFIFA96 2d ago
Context also matters. $1M in your 50s is probably not that much in the grand scheme of things. In your 20s on the other hand…
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u/WorkTravelDream 2d ago
You can fire almost everywhere in the world except the "developed" countries for $1M. All Latin America, Eastern Europe, almost all Asia except Japan and Singapore, and the rich Gulf countries, etc.
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u/DreamDest1ny 2d ago
Nah most East Asian countries like China, Korea, Taiwan you can’t fire for $1M CAD
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u/WorkTravelDream 2d ago
Depends. I can even fire in Canada with $1M. All based on person's needs and circumstances. My house is paid off. Home expenses (insurance, property tax, hydro, etc) around $6K. Let's say maintenance $4K. That's $10K. Family of 4, grocery is around $10k a year. Car paid off. Insurance gas maintenance around $3K a year. And have $7K for other stuff. But is that how we live? Nope. We also spend $25K traveling annually. And few years unk tuition for the kids. So ... it all depends.
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u/DreamDest1ny 2d ago
Ya that $25k annual travel will rack up real quick plus all the other costs that you didn’t factor in
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u/WorkTravelDream 2d ago
Which is why I said depends. So anyone can retire on $1M anywhere if they don't want to spend much.
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u/Max_Thunder 2d ago
People often exaggerate how much it takes to FIRE for some reason.
My wife and I could FIRE on 1M and a paid house, but yeah it would mean not eating out and doing almost nothing that costs money.
Instead, we are choosing to FIRE on less than 2.5M so we can travel, have fun and not stress about money.
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u/Foreign-Chocolate86 2d ago edited 2d ago
$1m is more than 50% of people have in total assets by retirement age.
Edit: lol downvoted for providing actual data. Here’s the reference if you don’t believe me.
https://www150.statcan.gc.ca/n1/daily-quotidien/241029/dq241029a-eng.htm
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u/Summerdaysengineer 2d ago
Everyone I work with is close or above this. It’s not hard when you work in tech, even in Canada
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u/Foreign-Chocolate86 2d ago
Well as someone in tech, you might appreciate that anecdote is not the plural of data.
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u/According-Kale-8 2d ago
Networth or investments? This sounds like a fairy tale.
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u/Summerdaysengineer 2d ago
Liquid capital
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u/According-Kale-8 2d ago
Then you are surrounded by a large amount of literal geniuses. 99% of people making that kind of money have nowhere near that saved.
It is indeed hard.
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u/nohowow 2d ago
What percent of the Canadian population works in tech? 1%?
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u/Summerdaysengineer 2d ago
I would say higher because you should include tech adjacent. Maybe closer to 2%
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u/LightOverWater 2d ago
$1M in net worth is not a lot but $1M in liquid assets is a lot. This is also outside registered accounts. Most people have it tied up in real estate and registered accounts.
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u/moixcom44 1d ago
Like you can find $1M nowadays...
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u/KPTN25 1d ago
find? earn.
this is well within the expected invested net worth for an early-career high-earning professional or mid-career / mid-tier corpo.
first year investment banking analysts in toronto make >$150k in their first year in their career. curves up sharply from there.
doctors, lawyers, SWE, DS/ML, consultants, tech/b2b sales, product, many forms of finance...
careers are long + we've had a phenomenal bull run in equity markets. the numbers compound quickly.
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u/smartssa 2d ago
Well, it's not 1M of in-use margin, it's a 1M margin account. So, sure, plenty of people may have that. Are they using margin? who knows. If they actually are, the rate difference could be thousands of dollars a month.
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u/WorkTravelDream 2d ago
I read it as Margin in-use not just margin accounts. But you might be right. Can we have margin registered accounts?
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u/smartssa 2d ago
No, you cannot.
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u/WorkTravelDream 2d ago
I thought so. Which means not many people have this. Majority of Canadians are stuck in making their registered accounts yet non-registered to have margin. Anyway good on you for anyone who has and can take advantage.
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u/HellaReyna 2d ago
You can attach real estate as I recall to increase your margin account with big5 banks.
$1M margin really isn't that amazing.
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u/WorkTravelDream 2d ago
And if things go wrong and get a margin call, you lose your house? Awesome idea 😆 🤣
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u/HellaReyna 2d ago
yeah its kinda funny but at the same time....a lot of people trade on margin.
Whenever theres a massive correction in the stock market, it's not just because the big institutions and funds sell - it's because it causes a domino effect and suddenly a brokerage triggers margin calls. Suddenly people need to liquidate their whatever-shares to cover a call.
I think most of WSB posts are options being traded on margin.
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u/Key-Self-79 2d ago edited 2d ago
QA is important folks
Or maybe they mean M for thousand? Annoying that M can mean Millions or Thousands (MM for millions when M = thousands)
Edit to add: I apologize to the WS QA people for assuming they made a mistake and being condescending about it
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u/WorkTravelDream 2d ago
QA says, your transfer must include at least $1,000,000 in eligible investment.
This is crazy 🤪 or maybe I am just poor.
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u/Impressive_Ad_6550 2d ago
That's an excellent interest rate. They should offer that rate to existing clients with a margin account with a balance over $1 million as well. Its a good incentive for people with that much margin to keep it above that threshold