Are you a Canadian investor thinking to commence your investment journey? Are you looking for useful information on stock market? Grab this list of Best Online Stock Brokers in Canada. Compare the features, pricing, details on their products, services, trading platforms and tools.
Canada is known for its extensive natural resources and that is why it’s Toronto Stock Exchange (TSX) – the eighth largest stock exchange in the world by market capitalization – houses more energy companies compared to other exchanges in the world.
Online stock brokers are becoming more and more popular in the past decade as they are cheaper, faster and more secure. So, its better to gather more information on any of the
Best 5 Online Stock Brokers in Canada
Let’s start with our list now:
With transparent pricing, free ETF trades, no annual fees and great tools for both desktop and web-based platforms, Questrade is Canada’s best online stock broker for the year.
Questrade is a member of both the regulators i.e. IIROC and CIPF.
You can trade stocks, bonds, options, MFs, ETFs, metals along with FX and CFDs under a variety of its account types. Clients are also provided the flexibility to trade all US based securities on NASDAQ and NYSE as well.
Take a look at its two pricing plans:
- Democratic pricing (for casual traders) and
- Questrade Advantage (for active traders).
|Stocks||$.01 per share|
|(min $4.95 / max. $9.95)|
|Options||$9.95 + $1 per contract|
|The Questrade advantage:-|
|Variable Plan||Fixed Plan|
|Stocks||$.01 per share||flat $4.95 per trade|
|(min $.01 / max. $6.95)|
|Options||$6.95 + $.75 per contract||$4.95 + $.75 per contract|
Questrade’s trading platforms IQ Web and IQ Edge offer you to customize things according to your needs with great tools provided for active traders. They are very user friendly, have great themes and provide clear and clean chartings and its widgets really act as cherry on the top.
To perform research, it has great tools like Market Intelligence and Intraday Trader. Leading research data providers like Morningstar provide you with the best fundamental analysis for ETFs and equities as a third party.
So, Questrade is a clear winner when it comes to transparent pricing and easy in trade.
Qtrade is also popular among traders for its robust stock research, user-friendly interface, and tools for portfolio analysis.
You can trade equities, options, ETFs, Mutual Funds, Fixed income and Exchange traded debentures. Take a look at its two pricing plans- Investor pricing (for casual traders) and Investor Plus (for active traders).
|Options||$8.75 + $1.25 per contract||$8.75 + $1.25 per contract|
|ETFs||Some selected are free||Some selected are free|
|Others- $8.75||Others- $8.75|
Regulated by IIROC, it is secured and is also supreme when it comes to stock research centres. It assists you with asset allocation while building customized portfolios and provides streaming quotes in real-time. Fundamental analysis becomes more robust by partnering with Morningstar. Amazing educational resources will always help you in your watchlists, decision making and good earnings.
Though it has $25 maintenance/ inactive charges per quarter, it is a good platform if used meticulously.
3. Interactive Brokers
This is one of the popular online stock brokers in Canada. Interactive Brokers is best known for its access to global markets. while offering trade and its plenty of order types which it provides to its customers.
Non-acceptance of payment for order flow executes quality order. Interactive Brokers offers 2 primary plans: IBKR Lite (for casual investors) and IBKR Pro (for professionals). Users are offered margin rates as low as 0.75% with the condition that they hold more than a million dollar with the brokerage.
As the broker’s spreads, margins and tools are all beneficial to high volume traders, that is why its core clientele are institutional investors and professional traders. This is the key reason behind the popularity of Pro Plan.
Let’s look at the pricing:
|Particulars||IBKR Pro Price||IBKR Lite Price|
|Stock Trade Fee (per trade)||$.005/ share with min. of $1.00 and a max. of 0.5% of trade value||$0.00|
|ETF Trade Fee||$0.005||$0.00|
|Options Base Fee||$0.00||$0.00|
|Options Per Contract Fee||$0.65||$0.65|
|Mutual Fund Trade Fee||$14.95||$14.95|
|Broker Assisted Trades Fee||$30.00||$30.00|
Interactive Brokers’ flagship platform TWS (Trader Workstation) offers best trading tools like Algo trading, Market Scanner, Volatility Lab, etc. It is recognized and popular in the industry.
The AI technology called IBot is available in TWS mobile executes your requests. So, it’s now quite faster and smooth as execution follows just a few seconds after you speak.
Interactive Brokers have dozens of great tools like scanning and back-testing along with a variety of third-party researches. Although its mobile trading is well supported with all customizations you need and robust charting, the problem lies in its high nature of technicalities and low user friendly interface.
4. TD Direct Investing
TD Direct is the most expensive among all stock brokers, but still it is worthy for many active traders. It offers diverse stock trading tools and research, and its apps provide a clean experience.
Let’s look at the pricing:
|Particulars||Standard Rate||Active Trader Pricing|
|Stock Trade Fee (per trade)||flat $9.99||flat $7.00|
|ETF Trade Fee||$0.00||$0.00|
|Options Base Fee||$9.99||$7.00|
|Options Per Contract Fee||$1.25||$1.25|
|Mutual Fund Trade Fee||$0.00||$0.00|
For Active Trading Pricing, you must have 150+ trades per quarter. A short-term redemption may also apply sometimes in case of Mutual funds.
Abundant research resources and great education tools, it provides you cutting edge charting and trading tools.
Its mobile app is very efficient when it comes to trading capabilities with news streams and commentaries which will enhance your trading experience.
As TD Direct is owned by a bank, it offers you to manage multiple accounts and products through its platform.
Cutting-edge technology, best educational and research tools, self-directing investing apps and user-friendly interface made it popular among traders despite being expensive.
5. Wealthsimple Trade
Wealthsimple trade is getting popular because of its nil account fees, commission free trades for stocks and ETF and user-friendly app. It is also luring customers by providing a $10 cash bonus to users who add and trade for $100.
Let’s look at the pricing:
|Particulars||Wealthsimple Trade Fee|
|Stock Trade Fee (per trade)||flat $0.00|
|ETF Trade Fee||$0.00|
It currently allows users to trade in a RRSP, TFSA or non-registered personal investment account.
Wealthsimple Trade can be operated only by your smartphones and is not at all for active investors as the advanced tools demanded by them are missing here.
Casual users also have to do their own research before investing as the app provides you with only basic tools and charts. In-depth research will not be found here.
So yes, this trading app is very basic and with minimal fees, still it is recommended to new users.
These are the best 5 online stock brokers in Canada, but still there are some good brokers that could not reach the top 5. They are popular and better in some or the other feature.
Other Best Online Stock Brokers in Canada
We are listing them below with short descriptions:
6. CIBC Investor’s Edge:
CIBC Investor’s Edge is best known for its transparent pricing. With no account opening fees and no minimum account size, it also provides students the benefit of lower commission rates. Freedom to access and manage products from its banking arm gives CIBC an edge over others.
7. National Bank Direct Brokerage
National Bank Direct Brokerage charges zero commission on all ETFs whether you buy or sell in Canada or US. This makes it a preferred broker as compared to others who charge fees on selling ETFs.
8. BMO InvestorLine
BMO is popular for its good mobile experience despite having an older design. It is considered as one of the original firms who provided mobile capabilities and it is still a strong player when it comes to providing market data via mobile.
Online Stock Brokers in Canada
So, selecting a stock broker completely depends on the needs and priorities of the customer whether he wants low-cost trade commissions, good trading platform, user-friendly mobile app or education is the purpose.
For example, if we consider user experience, Qtrade and Questrade should be preferred but if we consider data and research, TD Direct is best.
As each broker’s strength is different, thus we need to decide our priority of needs, read reviews and then decide which is best for you.
You may also like to explore the Best Online Banks in Canada
Which one do you prefer from the list of best online stock broker in Canada? Do share your experiences and feedback thereon.