How to Set Up DRIP in Canada (Questrade & Wealthsimple Users)
If you’re investing in Canadian dividend stocks or ETFs, one of the smartest moves you can make is turning on DRIP (the Dividend Reinvestment Plan).
Instead of getting dividends as cash, DRIP automatically uses them to buy more shares of that same stock or ETF. This way, your money keeps working for you without lifting a finger.
Let’s walk through how to set it up with Wealthsimple and Questrade, the two most popular platforms for young Canadians.
🔄 Step 1: Understand What DRIP Does
Dividends you earn are automatically used to buy more shares.
No commissions or trading fees
Helps your portfolio grow faster through compounding
👉 Example: Own 100 shares of TD. They pay you ~$0.96/share = $96. Instead of cash, DRIP automatically buys more TD shares with that money. Next quarter, you own more shares → you earn more dividends. That’s the snowball effect.
📱 DRIP with Wealthsimple Trade (Fractional Shares)
Wealthsimple makes DRIP super simple because it supports fractional shares.
That means 100% of your dividend payout gets reinvested, no leftover cash.
How to set it up:
Log in to your Wealthsimple Mobile app.
Tap your Self-Directed Investing account
Tap the Settings (gear) icon in the top right corner
Select Dividend Reinvestment and toggle it ON.
Choose which accounts (TFSA, RRSP, Non-Registered) you want DRIP active in
From now on, every dividend payout will automatically buy fractional shares of that same stock or ETF. No cash left behind.
FYI for Wealthsimple:
Keep in mind that you must own shares of the stock or ETF at the time of receiving dividends for the dividends to be reinvested.
You can't activate or deactivate dividend reinvestments for an individual stock in your portfolio. The setting applies to your entire account portfolio.
Activating dividend reinvestments is only available in the mobile app.
Joint non-registered accounts aren't eligible for dividend reinvestments at this time.
🖥️ DRIP with Questrade (Whole + Fractional Shares)
Questrade supports DRIP too, but it works a little differently.
If you hold fractional shares of a stock/ETF, DRIP will reinvest dividends into fractional shares (so almost all your cash gets used).
If you don’t hold fractional shares, DRIP buys as many whole shares as possible, and any leftover dividend cash stays in your account. (Important: leftover cash doesn’t “roll over” into future DRIPs.)
How to set it up:
Download and complete Questrade’s DRIP Application Form (one per account).
Choose whether to apply DRIP to all eligible securities or just specific ones.
Upload the form to your Questrade account.
Wait 2–3 business days for processing (apply before a dividend ex-date if you want to catch the next payout).
✅ Pro Tip: DRIP works best with lower-priced ETFs or stocks (e.g., $20–30 per share) where your dividend is more likely to buy full shares.
📝 Things to Remember
TFSA: Dividends are tax-free.
RRSP: Dividends are tax-deferred (and U.S. dividends inside RRSP avoid the 15% withholding tax).
Non-registered account: You’ll owe taxes, but Canadian dividends qualify for the dividend tax credit.
You can cancel or adjust your DRIP anytime by contacting Questrade or toggling settings in Wealthsimple.
Not all securities are eligible (penny stocks, U.S. securities in some accounts may not DRIP).
🎯 In Short
Use Wealthsimple if you want easy, automatic DRIP with fractional shares (no leftovers).
Use Questrade if you want more control and don’t mind filling out a form… but remember, unless you already hold fractional shares, some cash may sit unused.
Either way, DRIP is one of the best beginner moves to grow your portfolio automatically.