Wealthsimple bets on prediction markets as Kalshi partner

Prediction markets are coming to Canada through a Wealthsimple app built with the US exchange Kalshi. Canadian law limits the bets to climate, economic, and financial-market outcomes for now.

The move puts Wealthsimple ahead of Questrade, which has signaled interest, and Interactive Brokers Canada, which already offers prediction trading. Wealthsimple would be the first to bring the format to a mainstream Canadian audience legally.

The timing follows Robinhood's entry into Canada. Robinhood has seen a significant revenue boost from prediction-market trading and competes directly with Wealthsimple for retail clients.

Wealthsimple co-founder and chief product officer Brett Huneycutt acknowledged that futures trading is not for everyone. That is why the company is building a separate app, keeping retirement savings disconnected from wagers. He drew a line on certain markets: Wealthsimple will "never offer" bets on violence, terrorism, or death, he said.

The industry has drawn criticism. Users in the US have placed suspiciously well-timed bets on military actions, including the capture of Venezuelan president Nicolás Maduro and airstrikes in Iran. The majority of registered accounts lose money, according to industry data. Some Wealthsimple customers have voiced opposition on X and Reddit. Cohere co-founder Nick Frosst called prediction markets "bad for Canada."

Wealthsimple's vice-president of payments strategy and chief compliance officer, Hanna Zaidi, sits on BetaKit's board of directors.

For a company that markets simplicity, Wealthsimple is entering a complex and controversial industry. The app's launch date has not been announced.