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    • Best Online Brokerages and Trading Platforms in Canada (2023)

    Best Online Brokerages and Trading Platforms in Canada (2023)

    Online brokers in Canada empower investors with direct access to financial markets, enabling them to trade stocks, ETFs, options, and other financial instruments for their portfolios without the need for intermediaries. This self-directed approach can significantly save on commissions and fees. Let’s explore the top online discount brokerages in Canada for both beginners and experienced investors.

    Top Online Discount Brokerages in Canada for 2023

    1. Questrade

    Questrade, established in 1999, is a prominent Canadian discount brokerage service with over $30 billion in assets under management. It’s one of the fastest-growing stock trading platforms in Canada, attracting more than 200,000 new accounts annually. Questrade offers a variety of investment products, including stocks, ETFs, options, GICs, bonds, and more. Notably, ETF purchases are free, although trading fees apply when you sell. Key features include robo-advisor services via Questwealth, advanced trading tools, and private insurance coverage of up to $10 million.

    Pros:

    • Diverse range of investment products available.
    • Free ETF purchases.
    • Robo-advisor services via Questwealth.
    • Active traders can receive trading fee rebates.
    • No inactivity fees.
    • Access to advanced trading tools and market data.

    Cons:

    • Requires a minimum of $1,000 to start trading.

    2. Wealthsimple Trade

    Wealthsimple Trade, owned by the popular online portfolio manager Wealthsimple, stands out as Canada’s commission-free stock trading app. It offers seamless buying and selling of thousands of stocks and ETFs listed on major Canadian and U.S. exchanges without charging any commissions. Wealthsimple Trade also provides a Premium upgrade with real-time market data and USD accounts for a monthly fee. Additionally, users can access a high-interest savings account through Wealthsimple Save.

    Trading Platforms Canada

    Pros:

    • Zero trading commissions on buy or sell transactions.
    • No account minimums.
    • User-friendly mobile app.
    • Access to a Premium upgrade with additional features.
    • No quarterly inactivity fees.

    Cons:

    • Limited to three types of investment accounts.

    3. Qtrade

    Qtrade is recognized as one of the top online brokerages in Canada, known for excellent customer service. It offers a wide array of investment options, including stocks, ETFs, mutual funds, bonds, GICs, and options. Qtrade stands out with its excellent customer service, a variety of supported investment products, and a newly launched mobile onboarding experience.

    Pros:

    • Excellent customer service.
    • Diverse investment product offerings.
    • Waived inactivity fees for eligible accounts.
    • Transfer fee waivers for qualifying transfers.

    Cons:

    • Inactivity fee for accounts that don’t meet eligibility requirements.

    4. CIBC Investor’s Edge

    CIBC Investor’s Edge, the brokerage platform for the Canadian Imperial Bank of Commerce (CIBC), provides access to a wide range of investment assets, including stocks, ETFs, options, mutual funds, and more. With a flat trading fee of $6.95 per trade, it offers an affordable trading option for investors.

    Pros:

    • Access to various investment options.
    • Mobile app available.
    • Discounted trading fees for active traders and students.

    Cons:

    • Annual account maintenance fee for low balance accounts.

    5. TD Direct Investing

    TD Direct Investing, the online brokerage service for Toronto Dominion Bank, is a versatile platform offering a broad range of investment accounts and products. It’s particularly suitable for options trading, with the “thinkorswim” feature being beneficial for complex U.S. options trading.

    Pros:

    • DRIPs available.
    • Discounts available to waive the quarterly account maintenance fee.
    • Suitable for options trading.

    Cons:

    • Quarterly inactivity fee for accounts with low balance.

    6. CI Direct Trading

    CI Direct Trading, formerly Virtual Brokers, is known for its cost-effective approach, charging minimal fees based on a per-trade or per-share model. It offers a 14-day demo account for users to familiarize themselves with the platform before committing.

    Pros:

    • Affordable trading fees.
    • Offer of a 14-day demo account.
    • Active traders can enjoy a flat fee per trade.

    Cons:

    • Inactivity fee for low-balance accounts.

    7. Scotia iTrade

    Scotia iTrade, affiliated with the Bank of Nova Scotia, offers a standard trading fee for various investment products. It provides access to a variety of investment accounts and products, including commission-free ETFs.

    Pros:

    • Commission-free ETFs available.
    • Practice account available.

    Cons:

    • Quarterly maintenance fee for inactive accounts.
    • Relatively high commission rate for trades.

    What is an Online Broker?

    An online broker provides a trading platform for investors to buy and sell financial assets independently, such as stocks, ETFs, options, and more. Also known as discount brokerages, these platforms eliminate the need for traditional middlemen, enabling investors to trade directly, thus reducing commissions and fees.

    It’s important to note that online trading platforms require investors to take on the responsibility of managing their own trades, portfolio allocation, and rebalancing. While this offers cost savings, it also necessitates a good understanding of the stock market and investment strategies.

    How To Choose The Best Online Broker in Canada

    When selecting an online stock trading platform in Canada, several factors need consideration:

    • Fees and Commissions: Assess the trading fees and commissions, ensuring they align with your trading habits and preferences. Look for platforms that offer commission-free trading or waive fees based on account balance.
    • Account Minimums: Consider the minimum deposit required to open an account. Choose a broker that aligns with your investment budget.
    • Investment Needs: Ensure the platform offers the investment assets and account types you intend to trade. Check for features like real-time market data, order types, and available trading tools.
    • Customer Service: Evaluate the customer support options provided by the broker. Accessibility and responsiveness to inquiries are vital.
    • User-friendliness: Review the trading interface for ease of use and intuitive navigation. A user-friendly platform can enhance your trading experience.
    • Security: Verify the security measures and regulatory compliance of the platform to ensure the safety of your investments.
    • Additional Features: Explore additional features offered by the platform, such as banking integration, high-interest savings, and portfolio management capabilities.
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