Two trading firms in Canada are reportedly facing a class-action lawsuit following allegations that their platforms charged millions of dollars in fees despite claiming to be commission-free.
According to the lawsuit that A Globe and Mail reported, Wealthsimple Technologies and Shakepay Inc. made millions of dollars in profits while misleading clients about the true cost of utilizing their respective platforms. Each organization is being sued for CA$10 million in damages by the law firm LPC Avocat.
Globe and Mail reportedly mentioned that Joey Zukran of LPC Avocat said,
“I think these companies took advantage of what many have called a crypto gold rush during the pandemic.”
Analytics platforms noticed more trades into 2020 and 2021 even while COVID-19-related uncertainty was higher.
We have always been honest about what we charge for our services – that’s our promise to our clients, but Wealthsimple representative Rachael Factor has refuted the claims.