Wealthsimple and Mylo are two of the best autopilot fin-tech companies in Canada. Wealthsimple has a slight edge over Mylo when it comes to the number of investors and the overall functionality of the platform. In simple words, Wealthsimple is undoubtedly the #1 fin-tech autopilot investing platform in Canada. But, hold on a second here, Mylo is equally good too. There is a certain edge when it comes to Mylo. Let’s compare that in detail here.
In this article, I will be comparing Wealthsimple vs. Mylo – Two of the best financial technology companies. Both these apps, help you save money, automate investing through spare change; which in the modern world especially with the millennials is so much more important. The concept to start investing money early.
Let me unveil everything about Mylo and Wealthsimple, including detailed feature and benefits review, pros and cons and final verdict. Let’s get started.
Mylo and WealthSimple – Introduction
Let me keep it simple – Mylo and Wealthsimple are two of the best-automated investments in Canada.
Nowadays automated savings and investments with lower fees are slowly increasing media presence and popularity.
The concept of round-ups and investing your spare change is not really new and has been around for many years now. The best part is you don’t have to do anything, the system does it all for you.
You just have to link your bank accounts to the individual apps – Mylo and Wealthsimple in this case.
What Is Mylo?
Mylo is an app that helps you save and invest. Mylo automatically rounds up every purchase you make and invest the spare change. There’s no investment knowledge required, and you don’t have to change your lifestyle. With Mylo, you turn your spending habits into saving habits.
What Is A Mylo Roundup?
A roundup is what Mylo calls the spare change on your credit and debit card transactions.
Automatically investing roundups is an easy way to save, and they add up quickly! Simply link your chequing account (funding source) and your debit and credit cards (roundup sources) to your Mylo account, and the system automates the process for you.
For example, If you spend $3.25 on a coffee using a linked credit or debit card, Mylo’ll automatically round up your purchase to the nearest dollar ($4.00) and put 75 cents aside in your Mylo account.
Every week on Monday, Mylo will add up all your roundups from the previous week, withdraw the total from your funding source (debit and credit card), and invest the money in your investment account. If you activate the in-app multiplier, you can accelerate your savings by multiplying your roundups by 2X to 10X.
Mylo – Case Study
Let me give you another example here. Just to make sure you understand what Mylo is all about.
When you buy a coffee you’ll pay 1.30 or 1.50. These auto investment apps will round up to the nearest dollar amount, in this case, $2. So, the system automatically adds $0.70 to your investment portfolio.
Again, that’s the basic plan I’m talking about – rounding up your purchases. You have other advanced levels where you can increase the round-ups and also bump up money every now and then.
Now just imagine, this keeps happening with all transactions throughout the day on all your bank accounts linked – you can link more than one bank account and multiple accounts within a single bank account – debit, credit cards etc.
You’ll never realize how soon your money will grow with the compounded interest you’ll earn through investments.
Oh, by the way, did I forget to tell you – Your money is pretty much in safe hands with an investment portfolio manager. Also, another point to mention here is – your money is invested in low-cost ETFs and is managed actively.
The best part of doing this – you can withdraw money from Mylo anytime you need, there’s no minimum threshold or something like that.
Your Investments at Mylo are managed by Tactex Asset Management.
The Mylo app is free to use, but your portfolio manager, Tactex Asset Management, will charge a low, flat fee of $3 a month for access to unlimited registered accounts, including TFSAs, RRSPs and any accounts made up of Socially Responsible Investment (SRI) portfolios.
That’s it. No matter how much you invest.
To make investing affordable and accessible to all, Tactex Asset Management invests in exchange-traded funds (ETFs). The companies that manage these funds typically charge a Management Expense Ratio (MER) that range from 0.05% to 0.37% for regular portfolios and 0.20% to 0.60% for SRI portfolios.
These MERs are among the lowest in the industry. Mylo does not make any money from MERs and Tactex Asset Management always invest your money in the most efficient investment vehicles.
Mylo – Pros
Each portfolio at Mylo is built to reflect various risk-reward profiles and aims to help you achieve your financial goals.
Your portfolio manager uses the information collected during your sign-up process to provide you with an investment profile and assigns you one of five diversified portfolios comprised of a mix of stocks, bonds and savings funds, suited to your personal goals.
|Conservative||Conservative – Moderate||Moderate||Moderate – Aggressive||Aggressive|
|Mylo Money Market|
|Mylo Fixed Income|
You can always see your Investor Profile in the Mylo app, under Account > Investor Profile.
Here are the ETFs currently being used to construct Mylo’s portfolios. Please note these are subject to change.
|High-Interest Savings ETF||PSA||0.16%|
How Safe Is It Investing In Mylo?
There is some level of risk associated with any investment. Tactex Asset Management invests your money in a diversified portfolio of low-cost ETFs, so your investment is far less volatile than it would be if you were picking specific stocks.
The ETFs that you are investing in are held in trust by a custodian that is insured by the Canadian Investor Protection Fund. The custodian for these funds is Fidelity Canada Clearing and the trustee is TMX Trust, a wholly-owned subsidiary of the Toronto Stock Exchange Group. Please note that while the funds in your account are insured, your investment account itself is not itself CIPF insured.
Mylo is audited by an international accounting firm annually.
Why Does Tactex Asset Management Charge A Monthly Fee?
Your investment account has implied costs, so your portfolio manager, Tactex Asset Management, charges a low, monthly fee to allow them to provide outstanding service. You will never be charged hidden fees or surprise costs, unlike other investment services.
How To Cancel Your Mylo Account?
Send Mylo an email or connect with them in the app to delete your account.
Please include the email address associated with your account.
Wealthsimple is an auto-pilot investment program based out in Toronto, Canada. The good thing to note here is that they have physical presence and offices across Canada.
Now you may be wondering what makes Wealthsimple better than Mylo?
Let’s talk about some facts here, Wealthsimple is the most trusted and the #1 auto-pilot investment program in Canada. Period.
I’ve personally been using Wealthsimple for many months now and its too good to be true! The app is extremely simple to use, signing up takes hardly a few minutes, security features are great, setting up investments and withdrawals is dead simple. Also logging in is through face id (I mean it has all the advanced yet simple UX design)
In a nutshell, Wealthsimple is simple, intuitive and investing is so much easier be it with spare change or into your TFSA’s and RRSP.
Comparing it with something like Mylo, makes it look way superior.
Now don’t get me wrong here, Wealthsimple is light years ahead of Mylo in every department. No wonder Canadians love it and have made it the #1 on charts.
So, with Wealthsimple Invest, you basically have three account types based on the investment amount you plan to invest or move your existing investments over to Wealthsimple.
Let’s look at each of WealthSimple’s account types.
Now, this is the basic account type for newbies into the investment world or for the ones who are planning to explore more on how wealthsimple’s platform works before pumping in more money into the system.
Benefits and Features Of The Wealthsimple Basic
Deposit Range – 0 – 100K CAD
You’ll pay 0.5% in management fees
You get expert financial advice when required and in need of
Auto-rebalancing of your portfolio (Without your intervention)
Auto Deposit money from your checking and credit cards from multiple banks
Dividend Reinvesting – Wealthsimple takes care of this. All of your deposits are reinvested into the growth mode and that’s the compounded effect we are talking about
First of all, the Wealthsimple black account if not for investment beginners. You need to invest at least $100,000 in deposits or transfer from an existing TFSA or RRSP account. The advantage you get is, you’ll pay lower fees and get premium benefits when you invest $100k+ across your Wealthsimple accounts.
Also, another thing to note here is – All of the WealthSimple Basic plan features are included. In addition to the Basic Plan, you’ll also :
Pay lower fees – Deposit more, pay less. When you net $100,000 or more in deposits across your accounts, your Wealthsimple Invest management fee drops to only 0.4%.
Maximize your tax efficiency – Get a break on your taxes with access to tax-efficient features like tax-loss harvesting and tax-efficient funds
Access VIP airline lounges – Travel in style with access to more than 1,000 airline lounges in over 400 cities with a complimentary Priority Pass membership.
Wealthsimple Account Types
I’m listing the 9 account types that can be opened at Wealthsimple for your reference.
Here’s the complete list:
1. RRSP: A registered retirement savings plan (RRSP) is an account designed to help Canadians save for retirement. While the investments are held in your RRSP, you won’t have to pay tax on any interest, dividends, or capital gains you earn. There is a limited amount you can contribute to an RRSP every year.
2. Spousal RRSP: A spousal registered retirement savings plan (Spousal RRSP) is often used to lighten the tax load for couples with big income disparity as it avoids a higher-income earner from having a large pile of retirement savings in his RRSP while the lower-income earner has a small pile. The limit to the amount you can contribute to an RRSP remains the same even if you have an RRSP and a Spousal RRSP to contribute to!
3. TFSA: A tax-free savings account (TFSA) encourages long-term savings by providing tax benefits: any income earned in a TFSA is tax-free, even when you withdraw it. There’s a limit to how much you can contribute each year.
4. Non-Registered Account: A personal (or joint) account in which you can contribute as much, or as little, as you like. All the interest, dividends, and capital gains earned in a non-registered account will have tax considerations. You would most likely have this type of account once you’ve maximized the contribution room in your RRSP and TFSA.
5. Smart Savings: A savings account with interest that compounds monthly.
6. RESP: A Registered Education Savings Plan can be used to save for a child’s education. You can contribute a lifetime maximum of $50,000 per child, and the government will match a certain amount.
7. RRIF: Your RRSP must be converted into a Registered Retirement Income Fund (RRIF) by the end of the year you turn 71.
8. LIRA: You would have a Locked-In Retirement Account (LIRA) if you have a pension from a former employer but are not retired. You can’t contribute to a LIRA, but you do have control over the investments in your account.
9. Corporate: A corporate investment is opened under your business’s name and, much like a personal account, allows your business to invest money so it can grow.
Wealthsimple – Pros
Over $5B and counting – More than 175,000 people trust over $5 billion with Wealthsimple companies
Everything is encrypted – We use state-of-the-art data encryption when handling your financial information and two-factor authentication (2FA) protection
Insurance and protection – All of our accounts have standard insolvency and deposit protection
Powerful backing – Wealthsimple is backed by $265M in investment from some of the world’s largest financial institutions
Wealthsimple and Mylo are two of the best financial technology born and proudly Canadian products.
I personally feel that Wealthsimple is miles ahead when compared with Mylo. However, also note that Mylo is really good. It all depends on your personal taste and needs. But, I personally would go with Wealthsimple any day for all of my investments.
You know the best part of these investments, you won’t even realize you are investing, especially with the spare change. Also, with the compounded growth of your investments, your money will grow multiple folds within a short span of time.
Definitely give the app of your choice a try! You won’t regret for sure. Its savings after all and it is like loving yourself all over again, by treating yourself by saving money.
Please let me know your thoughts and comments below.
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Wealthsimple vs Mylo
- Mylo is great for passively saving for small, short-term, financial goals such as a vacation or your ‘fun fund.’ Your little savings add up.
- The Wealthsimple app is very versatile and has received great reviews. You can invest using registered (TFSA, RRSP, RESP, RRIF, LIRA) and non-registered accounts.
- Wealthsimple and Mylo have mobile apps. While you can also access your Wealthsimple account on a desktop through their website, Mylo is completely mobile-app based.
- Wealthsimple's Two Pricing Tiers to manage money
- Mylo's Premium Tier comes with a price tag of $3 every month
- Mylo is currently available to Canadians only. Wealthsimple is available in Canada, the U.S., and the U.K.