Finding a brokerage platform in Canada that has high utility and relatively low trading fees is often far and few between. In addition, some platforms are better suited for different investing experience levels.
Fortunately, the research has already been done for you. Here are the three best platforms to trade stocks in Canada.
Wealthsimple (for Beginners)
Wealthsimple is Canada’s most user-friendly brokerage platform for passive investors. Through the platform—either Wealthsimple Invest for Robo-advising or Wealthsimple Trade which is self-directed—investors can trade stocks and ETFs with zero fees. Moreover, the brokerage offers RRSPs, TFSAs, and RESPs accounts.
Users of the brokerage can also purchase stocks listed in the United States and utilize the vast library of research-based content to understand the basics and intermediate levels of investing. The platform’s user experience is generally perceived as easier to understand than some of its competitors.
However, Wealthsimple is not recommended for Canadians who are looking to actively trade equities, either day or options trading, since the lack of technical features could limit trading capabilities.
Questrade (for Intermediate Investors)
Questrade is one of Canada’s leading brokerage platforms which enables investors to trade stocks listed in Canada, the United States, and other foreign markets. Within the brokerage, there are two account options.
Self-Directed Investing: In this account, the pricing and features are compelling. Each trade requires a minimum trading fee of $4.95, or a maximum of $9.95 when over 995 shares are traded within a single order. ETFs however, at least when being bought, don’t have any fees associated until an investor places a sell order. This can assist many new investors who want a diversified investment portfolio and wish to hold over the long term.
Active Trader: This account is best suited for day traders who want to ride with the momentum of the market. Under this account, investors must subscribe to an advanced market data offering from Questrade. Afterwards, pricing is dependent on the fixed or variable rate model chosen by the investor, which has its own advantages. The fees incurred during options trading are either $4.95 or $6.95 depending on fixed or variable plans.
With either option, Questrade makes it easier for both investors and active traders to invest. However, some experience is definitely recommended to understand the vast amounts of market data.
Interactive Brokers (for Professionals)
Last but not least is Interactive Brokers. This brokerage offers a wide variety of features for professional or expert-level investors with past experience in the market. Interactive Brokers is best known for its international exposure, which gives investors the opportunity to invest in stocks listed on 135 market exchanges in 33 countries.
Depending on the account, either IBKR Lite or Pro, fees are $0 or a $1 minimum on stock trading. IBKR Lite is optimal for more casual traders and investors who still want a technical advantage, while Pro provides a vast network of trading tools and market data. The only downside to the Lite account is that trade executions may be lower-quality since payment for order flow (PFOF) is Interactive Brokers’ primary source of revenue for Lite.
Regardless, Interactive Brokers is the clear winner for active traders who want to utilize options, futures, and 68 different order types.
Which Platform to Choose?
Whether you’re a beginner or an expert at trading, either platform will work out well. However, it’s recommended to go in order if you’re a beginner since the hurdles of grasping investing concepts could be easier starting with Wealthsimple, as opposed to Interactive Brokers.
