Startup launches exchange with zero commission

The fee structure is stripped down. The platform charges no commissions on trades, requires no minimum account balance, and imposes no fees on deposits or withdrawals. Most existing crypto platforms load multiple charges onto their customers: trading commissions, transfer fees, blockchain network costs. WealthSimple's approach cuts all of this. The reason for the minimal offering, supporting only Bitcoin and Ethereum, likely stems from the company's ability to maintain zero fees with a smaller product line. Both cryptocurrencies sit at the top of the market by capitalization, making them the natural starting points. WealthSimple declined to comment on whether other tokens might join later.

On the security front, WealthSimple brought in Gemini Custody to handle safekeeping of customer assets. Gemini is a qualified digital asset custodian that stores holdings in secured offline vaults rather than internet-connected hot wallets. The company operates under heavy regulatory supervision and has extensive experience in the industry. The partnership includes up to $200 million in insurance protection on held assets.

Michael Katchen, who leads WealthSimple as CEO, addressed the company's push into crypto in recent comments. "Crypto is already super popular and growing in its popularity, and growing in its credibility. And the reality in Canada is that there aren't that many options to buy and trade cryptocurrencies in a safe and secure platform," Katchen explained.

The timing reflects a shift in broader market conditions. Interest in cryptocurrency peaked in 2017, then declined as investors became skeptical of the asset class. Pressure from the U.S. government, aimed at driving down prices, dampened investor interest further. WealthSimple's entry into crypto targets millennials, the demographic the company was built for, as potential new buyers. Unlike Bitcoin futures contracts, which track price movements without giving investors actual token ownership, this platform provides direct exposure to real bitcoin and ethereum holdings.