Wealthsimple, a Toronto-based online financial services company, is set to introduce prediction markets to Canadian retail investors this summer. The company is currently beta testing an app called Wealthsimple Predict, which will grant clients access to event contracts via the U.S. prediction market Kalshi.
This move comes after Canadian regulators granted limited approval for trading in prediction markets related to economic indicators, financial markets, and climate trends. However, these markets will not cover sports, elections, or pop culture. Brett Huneycutt, co-founder and chief product officer of Wealthsimple, emphasized the rapid growth of prediction markets in the global financial landscape.
Prediction markets function similarly to financial exchanges, enabling users to place bets on event contracts, which are essentially simple yes-or-no or higher-or-lower wagers on real-world outcomes. Historically, Canadians faced restrictions in accessing prediction markets, prompting some to resort to using VPN services to circumvent geographic limitations.
Wealthsimple aims to educate users on the inherent risks associated with these trades, including the potential for complete loss of investment. The industry leaders, Kalshi and Polymarket, have witnessed remarkable growth over the past couple of years. Reports indicate that the top five prediction markets saw approximately $100 million in bets in 2024. By April 2026, Kalshi and Polymarket collectively boasted a monthly global trading volume of about $24 billion.
Kalshi’s popularity surged due to its focus on sports-related bets, accounting for an estimated 90% of its trade fees. The platform has also gained visibility through collaborations with major media outlets like CNN. On the other hand, Polymarket garnered attention through partnerships tied to events like the Golden Globes and coverage by prominent shows like 60 Minutes on CBS News.
Apart from sports, Kalshi and Polymarket offer markets on various topics such as pop culture, politics, international conflicts, cryptocurrency, scientific advancements, and economic indicators. However, Wealthsimple’s users will be limited to trading in economic indicators, financial markets, and climate-related contracts, as approved by the Canadian Investment Regulatory Organization.
Andrew Kim, a psychology professor specializing in gambling and addictions at Toronto Metropolitan University, expressed relief that sports events and pop culture are excluded from Canada’s prediction markets. Kim believes that without these categories, the appeal to most gamblers would be limited.
While some experts acknowledge the potential benefits of prediction markets in gauging the collective wisdom of investors, concerns persist regarding insider trading vulnerabilities. Notably, there have been instances of suspicious trades on prediction markets, including a controversial bet made on the capture of former Venezuelan leader Nicolás Maduro in early 2026, allegedly involving classified information from a U.S. military mission.
In light of these developments, Wealthsimple is gearing up to provide nearly 4,000 event contracts through Kalshi’s platform upon the launch of its prediction markets app. The company aims to offer a controlled environment for users to engage in these unique financial instruments, ensuring transparency and risk awareness.
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