I have used 6 different Canadian trading platforms, and it’s a competitive market. One year, one online broker is ahead, and the next year, it is another broker. They catch up and try to outdo each other until they have spent enough money.
Not all online brokers’ reviews are the same, either. They’re often geared toward a new investor with little money rather than a seasoned investor looking for specific features.
While fees are important when you start, other factors become important as your portfolio grows. Below is a breakdown of Canadian discount broker popularity from survey readers.
Choosing a trading platform doesn’t have to be difficult and I have simplified it for you.
What Do You Look For In A Trading Platform?
The obvious is low fees. Nobody wants to pay more than they should. What else?
How do you relate to the following categorization? It summarizes what various investors have in terms of need. I have left out advanced requirements such as options trading.
- Young Investor – This is for new investors, usually under 30.
- ETF Investor – Can you trade free ETFs, which is decisive for young investors as they can have no fees in the end?
- Lower Fees – When trading stocks, does it have lower fees than the norm which is many of the Bank discount brokers at approximately $10?
- Dividend Investor – Can you DRIP shares and get the DRIP discount?
- USD Investor – If you intend to buy US stocks, and convert Canadian dollars to US dollars occasionally.
| Discount Broker | wdt_ID | Young Investor | ETF Investing | Lower Fees | Dividend Investing | USD Investing |
|---|---|---|---|---|---|---|
| BMO Investorline | 1 | No | No | No | Yes | Yes |
| CIBC Investor's Edge | 2 | No | No | Yes | Yes | Yes |
| National Bank Direct Brokerage | 3 | Yes | Yes | Yes | Yes | Yes |
| Qtrade | 4 | Yes | Yes | No | Yes | Yes |
| Questrade | 5 | Yes | Yes | Yes | Yes | Yes |
| RBC Direct Investing | 6 | No | No | No | Yes | Yes |
| Scotia iTrade | 7 | No | Yes | No | Yes | No |
| TD Direct Investing | 8 | No | No | No | Yes | Yes |
| HSBC InvestDirect | 9 | No | Yes | No | No | Yes |
| Wealthsimple Trade | 10 | Yes | Yes | Yes | No | No |
| Discount Broker | Young Investor | ETF Investing | Lower Fees | Dividend Investing | USD Investing |
The only caveat to choosing a discount broker is whether or not you want easy access from your bank account.
The most popular online brokers end up being those tied to where the investor banks. This is primarily why the big bank’s online brokers are not as competitive in terms of pricing aside from CIBC Investor’s Edge and National Bank Direct Brokerage.
There is a new type of investment called CDRs that is interesting for investors. CDRs stand for Canadian Depository Receipts and allows you to get access to foreign stocks in Canadian dollars. It’s an option available and you want to make sure your online broker supports it if that’s of interest.
The Best Dividend Investing Online Platform
For all types of investors, the best online broker is Questrade. Here are the primary reasons for Questrade to receive the honour.
- Free ETF Purchases
- Low Stock Trading Fees
- No Account Maintenance Fees
- No Annual Fees for U.S Stock Trading
- U.S Dollar Account Available
- Most Popular Discount Broker by Canadians
- Excellent Customer Service
Getting set up with Questrade is also the easiest and fastest. It can all be done online. Get started with Questrade now!
Questrade
The best online broker for all investors with free ETFs, and the lowest stock trades with no account fees.
The Second Best Online Platform
Also for all investors, Qtrade is the second-best platform. Why not National Bank Direct Brokerage? Simple, the account creation challenges. Qtrade is a discount broker independent of the banks and is set up to reach any customers whereas National Bank Direct Brokerage is not as easy to transition to if you don’t have access to a physical branch.
Here are the primary reasons for Qtrade to receive the honour of second-best discount broker.
- Free ETF Purchases From Major Funds
- No Account Maintenance Fees
- No Annual Fees for U.S Stock Trading
- U.S Dollar Account Available
- Most Popular Discount Broker by Canadians
- Excellent Customer Service
Qtrade
A very innovative trading platform for seasoned investors. Slightly cheaper than the banks and with many good features.
The 3rd Best Online Broker – The Best From The Banks
Once you are past Questrade and Qtrade, the remaining options are from the banks. TD Direct Investing is the best option from the banks that is globally accessible. Remember that National Bank Direct Brokerage has the lowest fees but is not easy to bank there across the country.
- $15,000 Minimum To Avoid Account Maintenance Fees
- Real-Time Stock Quotes (Not 15 Minutes Delayed)
- Dual Currency Accounts Supported
- DRIP Plans Supported
- Most Popular Discount Broker With The Banks
TD Direct Investing
The trading platform for one of the most popular banks. Convenient and feature-complete but with bank pricing.
Best Trading Platform For Students
As mentioned earlier, not all platforms are suited for everyone at all times. Investing is a long journey but when you start investing, you have no money for fees and very little to invest.
The best platform for students is Wealthsimple with Questrade as the second option. The split comes down to fractional shares. Students don’t have much money to invest and having the ability to own fractional shares is a monumental advantage as every penny you invest works for you.
Here are the primary reasons for Wealthsimple received the honour for the student’s best investing platform.
- Free ETF Purchases
- No Account Maintenance Fees
- Fractional Shares
- Most Popular Discount Broker with Millenials
- Excellent Mobile Platform
Wealthsimple Trade
The best investing platform for students. A mobile-first platform geared towards investing small amounts of money.