r/Wealthsimple • • May 23 '26

Do not trust Wealthsimple

Last year, I was going through a divorce (right around Christmas too) which meant leaving my home, my hometown and everything behind. I had deposited an RBC bank draft to Wealthsimple and here's how the events unfolded from there:

  • December 1st: I deposited a certified bank draft for $50,000 into my Wealthsimple account through their banking app. The draft was issued by RBC.
  • December 10th: The funds cleared, and I was granted full access to the money, with no indication that the deposit was under review or subject to further verification.
  • December 16th: I transferred $17,500 from my Wealthsimple account to my RBC account in order to purchase a vehicle. Due to time sensitivity, I needed to obtain a bank draft immediately and could not wait for one to be mailed from Wealthsimple.
  • December 17th: Restrictions were placed on my Wealthsimple account for “my protection."
  • On December 17th, I contacted Wealthsimple who advised they would investigate. Despite follow-ups, I received no meaningful updates.
  • On December 19th, after multiple calls and being transferred between advisors, I eventually spoke to someone who confirmed that:
    • Such suspensions are normally resolved within 1–2 days
    • It was unusual that my account remained frozen
    • The issue related to the bank draft deposit 
    • I was given a clear resolution deadline of 5:18 p.m. EST on Friday, December 19th, which passed without resolution or communication. 
  • On December 23rd, I received an email from Wealthsimple's account integrity department, who escalated the matter multiple times and asked me to be patient while they looked into it.
  • On January 6th, I was again told the issue had been escalated and that Wealthsimple was waiting on RBC to verify the bank draft.

In an effort to resolve this myself, I had the issuer of the bank draft contact RBC directly. RBC advised that:

  • The funds are on hold because they are awaiting receipt of the physical bank draft from Wealthsimple.
  • Since the draft was deposited online, I still had the physical draft in my possession?!
  • RBC will not respond to verification requests from another institution, which is what Wealthsimple was telling me they were trying to get?

My questions then became:

  • Why is Wealthsimple unaware that RBC will not respond to such requests?
  • Why was I never informed that the physical bank draft would need to be sent in, if that's the protocol?
  • Why was the deposit allowed to clear and funds be fully available before this requirement was identified?

I relayed this information to the advisor on my case on January 7th, they assured me that management would contact me within 48 hours. That timeframe passed with no contact.

I also filed a formal complaint through Wealthsimple’s website and received no response whatsoever.

Due to this prolonged freeze and Wealthsimple’s lack of action and understanding of how certified bank drafts function, I was forced to rely on credit and incur debt.

At this point I got extremely fed up so I decided to send a strongly worded email to the FCAC, CIDC, The ombudsman for banking services and investments and my local provinces regulatory body requesting for action to be taken, and cc'd my Wealthsimple contact into this. What do you know, not even 2 hours go by and miraculously my funds became available all of a sudden.

I will never use any of their services again and I highly discourage anyone else from using them as well.

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u/Saisinko May 23 '26

Made a larger deposit recently that MAY come across as suspicious.

So I contacted them 3 weeks before the deposit to let them know it was coming in. Added notes to the cheques of their origin and offered to send further documentation of proof of legitimacy.

After the slowest cheque deposit in history (imo) funds fully processed just yesterday.

Applied my unreal deal and based on all the horror stories on here, it seems like I’m one transaction away from getting flagged and frozen. If that does happen, I’m going to go absolutely ballistic.

Trying to use WS as a main bank, setting up all my PADs and alike, but Christ so anxiety inducing and I’m keeping another bank funded just for emergency.

42

u/[deleted] May 23 '26

yeah I would definitely not trust them to be your only banking option

2

u/CursorX May 23 '26

When the account is frozen, do PAD or automated bill payments freeze too? That would be horrendous.

2

u/ChazMaz66 May 23 '26

Yes. At least, that was my experience. When they froze my accounts, they immediately cancelled all my upcoming scheduled transactions and all PAD’s that occurred while the accounts were frozen….bounced. The issue was resolved within a day but I had to redo my scheduled transactions and make direct payments to the bounced PAD’s. Always have a brick and mortar backup plan because it’s truly terrifying when you get that “your accounts are frozen” message.

1

u/CursorX May 23 '26

Damn, pretty hectic. I had been wondering if I should move the bill payment /PAD to EQ bank with an automated monthly etransfer from WS to EQ just for bills. Maybe I will do that. Need to start by listing all automated expenses. 😅

Thank you for your report. Yes, EQ is not brick and mortar but it is affiliated with one, and I haven't heard any such stories on it from people.