Best stock trading platforms for online trading

Eight best stock trading platforms in Canada

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Wealthsimple Trade

$0
Stock Trading Fee

$0
Account Fee

$0
Minimum Deposit

• Info
• Pros and Cons
• Details

Wealthsimple Trade is all about low fees. It does not charge any commissions on trades. And you can make as many trades as you like, free of charge. There are no annual fees or account minimums. It is one of the lowest-cost trading options available to Canadian investors. Wealthsimple Trade stacks up favourably against the other platforms we looked at when it comes to educational resources and tools, with various savings calculators, articles and investor masterclass videos to teach you the basics. If there is a catch, it's that you are limited in the types of securities you can trade, as Wealthsimple Trade offers mostly stocks and ETFs. You can open a non-registered account, RRSP or TFSA. There is a mobile and web platform, and the app received some of the highest user ratings among platforms we looked at.

• Go with this platform if you are just starting out with investing and want a commission-free option for buying standard securities like ETFs.

• Look elsewhere if you want to trade more complex securities like options or if you want to hold USD in your account.

Asset Types	Stocks ETFs
Minimum Age	18
Stock Trading Fee	$0
Option Trading Fee	N/A
Account Fee	$0
Inactivity Fee	$0
ETF Transaction Cost	Free

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Questrade

$4.95-$9.95
Stock Trading Fee

$0
Account Fee

$1,000
Minimum Deposit

• Info
• Pros and Cons
• Details

Questrade is one of the cheapest places to buy and sell securities online in Canada. Compared with Wealthsimple, it offers a much larger selection of securities you can trade, including options, foreign currencies and commodity futures. Questrade does not charge an annual fee and you don't pay any commissions when you buy ETFs. Other trading fees range between $4.95 and $9.95. Questrade offers both a web platform and a mobile app. The latter has not been well received by users, judging by the ratings it has received in app stores. Users complained about prices quoted on the app lagging actual markets and long loading times.

• Go with this platform if you want low fees and the ability to trade various types of securities.

• Look elsewhere if you want low fees but you aren't ready to start buying anything other than stocks and ETFs.

Asset Types	Stocks Bonds Options Mutual Funds ETFs GICs International Equities Precious Metals
Minimum Age	18
Stock Trading Fee	$4.95-$9.95
Option Trading Fee	$9.95 + $1 per contract
Account Fee	$0
Inactivity Fee	Free with $1,000+ combined equity, otherwise $24.95/quarter
ETF Transaction Cost	Free

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Interactive Brokers

Max. 0.5%
Stock Trading Fee

$0-$10
Account Fee

$0
Minimum Deposit

• Info
• Pros and Cons
• Details

The fact that Interactive Brokers promises to take your investing to the next level signals the type of investors the platform wants to attract. In short, it is well suited to those with plenty of experience in online trading and with plenty of money to trade. It offers access to stock markets in 33 different countries and 68 different order types, including stocks, options, currencies and bonds – far more than other brokerage platforms we looked at. Interactive Brokers has a tiered pricing structure when it comes to commissions. Basically, the more you trade the cheaper it becomes. There is a minimum commission of $1 per trade and a maximum of 0.5% of the total trade value. The Interactive Brokers web portal has a detailed educational section, with webinars, videos and even a Traders' Academy. It also offers analytical tools to help you make better trading decisions. The offering is so detailed it may be daunting for beginners. Interactive Brokers even lets you borrow money to buy shares, something a beginning investor should be very wary about doing. You must maintain a balance in your account of $100,000 (or spend $30 in commissions each month) or you may be hit with inactivity charges of $20 per month.

• Go with this platform if you are an experienced investor and want reams of information and fancy analytical tools to help you trade.

• Look elsewhere if you are a new investor.

Asset Types	Stocks Bonds Options ETFs Currencies Futures
Minimum Age	18
Stock Trading Fee	Min. $1.00, Max. 0.5% of trade value
Option Trading Fee	$1.50 min. per order
Account Fee	$0 (if monthly commissions are greater than or equal to US$10.00)
ETF Transaction Cost	Min. $1.00, Max. 0.5% of trade value

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Qtrade Investor

$6.95 - $8.75
Stock Trading Fee

$0 - $25
Account Fee

$0
Minimum Deposit

• Info
• Pros and Cons
• Details

A well-known investment broker, Qtrade Investor offers an easy-to-use online platform and a mobile trading platform. With low and competitive commissions, you'll also be able to trade 100 ETFs commission free. Plus, you'll get access to a nice mix of independent research tools and online tutorials designed to help you make more-informed decisions about your investments.

• Go with this platform if you want competitive commissions and access to educational tools and online tutorials.

• Look elsewhere if you aren't planning to have a minimum of $25,000 in your account or fund it regularly (since you will incur a quarterly fee).

Asset Types	Stocks Bonds Options Mutual Funds ETFs GICs
Minimum Age	18
Stock Trading Fee	$6.95 - $8.75
Option Trading Fee	$6.95 - $8.75 + $1.25 per contract
Account Fee	$0 if conditions met, otherwise $25/quarter
ETF Transaction Cost	$0 - $8.75

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Scotia iTRADE

$4.99-$9.99
Stock Trading Fee

$0
Account Fee

$0
Minimum Deposit

• Info
• Pros and Cons
• Details

Scotiabank is one of Canada's Big Six banks. Commissions start at $9.99 per trade, although this is lowered to $4.99 per trade if you make more than 150 trades per quarter. It charges an annual fee of $100 on accounts with less than a $25,000 balance. Here's a cool thing. Scotia iTrade offers a so-called practice account with a fictional portfolio of $100,000 that lets you use the platform and get your feet wet with different kinds of trades using what is essentially play money. Mobile app users weren't impressed with the UI or the overall speed of the experience.

• Go with this platform if if you are a beginner who wants the comfort of a well-established financial brand.

• Look elsewhere if you want a quality mobile experience.

Asset Types	Options Mutual Funds ETFs GICs International Equities
Minimum Age	18
Stock Trading Fee	$4.99-$9.99
Option Trading Fee	$9.99 + $1.25 contract ($4.99 + $1.25 contract if completed 150 trades or more a quarter)
Account Fee	$0
ETF Transaction Cost	$9.99 ($4.99 if completed 150 trades or more a quarter)

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CIBC Investor's Edge

$4.95 - $6.95
Stock Trading Fee

$100
Account Fee

$0
Minimum Deposit

• Info
• Pros and Cons
• Details

BMO Investorline is not the cheapest, nor is it the most feature-heavy online platform available to Canadians, but it does achieve a nice middle ground. The platform charges a flat fee of $9.95 per trade and slaps annual fees on accounts of less than $15,000. However, there is no minimum account balance requirement. On BMO Investorline you can trade stocks, options, ETFs, mutual funds, GICs and bonds. BMO Investorline has both a web portal and a mobile app, which is not rated well in the big app stores. Users complained about the equity search function not working properly, among other things. Like the other trading platforms affiliated with Canada's big banks, BMO Investorline makes both its own and third-party investment research available to users. This means you can do a lot of reading about the stocks you like if you have the time to wade through it.

• Go with this platform if you want an easy-to-use platform with low trading commissions and plenty of investment options.

• Look elsewhere if you want ayou don't want to pay an annual fee to maintain your account.

Asset Types	Stocks Options Mutual Funds ETFs
Minimum Age	18
Stock Trading Fee	$4.95 - $6.95
Option Trading Fee	$4.95 - $6.95 (+$1.25 per contract)
Account Fee	$0 if conditions met, otherwise $100/year
ETF Transaction Cost	$6.95

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BMO InvestorLine

$9.95
Stock Trading Fee

$100
Account Fee

$0
Minimum Deposit

• Info
• Pros and Cons
• Details

CIBC Investor's Edge is an online brokerage that lets you trade a variety of different investment types through its online trading platform. You'll be able to put your money into registered and non-registered accounts, depending on your preferences. The platform is user-friendly and provides a number of resources to help you get acquainted with using the platform. It also gives you access to plenty of research tools to help you make informed decisions about your investments.

• Go with this platform if you want to be able to trade a variety of securities and are less concerned about trading commissions.

• Look elsewhere if you want low fees.

Asset Types	N/A
Minimum Age	18
Stock Trading Fee	$9.95
Option Trading Fee	$9.95 + $1.25 per options contract
Account Fee	$100

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TD Direct Investing

$9.99
Stock Trading Fee

$100
Account Fee

$0
Minimum Deposit

• Info
• Pros and Cons
• Details

There is nothing that makes TD Direct Investing really stand out from the other trading platforms we looked at. Like BMO Investorline and Scotia iTrade, it is affiliated with a large, long-established Canadian bank. It charges a standard commission of $9.99 to trade Canadian and US stocks and an annual fee of $100 for accounts with a balance below $15,000. This is the priciest commission rate among platforms we compared, though it does list mutual funds as being commission-free. TD Direct Investing lets you invest with a non-registered cash account, as well as TFSAs and RRSPs. It also offers margin accounts that let you borrow money to invest. TD Direct also makes the equity research from TD's investment banking operations available to users. TD Direct Investing doesn't have a dedicated trading app, but the functionality is built into TD Bank's main app. For this reason the ratings below are not entirely comparable with those for the other trading platforms.

• Go with this platform if you don't plan on making a lot of trades.

• Look elsewhere if you want low fees.

Asset Types	N/A
Minimum Age	18
Stock Trading Fee	$9.99
Option Trading Fee	Between $7 and $9.99 (+$1.25 per contract)
Account Fee	$100

How to find the best online stock trader or trading platform for you

When searching for the best stock trading platform for you, ask yourself the following questions:

• What type of stock trader am I? Are you a casual trader, an active trader or an experienced investor? From the user-friendliness of a platform to the level of market research and educational tools that come with your account, it’s important to find an investment service that works with your trading needs.
• How often will I trade? If you buy or sell shares infrequently — say, 1-2 times per month or less — you’re likely more of a casual investor. With a higher trading frequency comes the need for an online investing platform that offers an affordable tier structure and an extensive range of features.
• What will I be trading? While stocks are a very commonly-traded security, you may also want to buy and sell other securities such as bonds, CFDs, currencies, options and futures. Also consider whether you want to trade domestic securities, international securities or a combination of the two.
• What will it cost me? Besides ongoing management and account maintenance fees, consider trading fees and whether you can get these fees waived or reduced if you satisfy certain criteria.

How to compare the best stock trading platforms

Before signing up for a brokerage account, consider factors that include:

• Fees. This is the big one. Look beyond what trading commissions a platform charges and ask about account minimums, transfer fees and costs for other securities.
• Available securities. Some platforms offer a wide range of securities, while others specialize in only one or two. Make sure the platform you pick can cater to your trading interests.
• Research tools. Beginners may want a platform with educational resources, while active traders will need robust analytics tools.
• Types of trades supported. Consider the options available when you are buying or selling shares. In addition to present-time trades, can you also hedge against risks by placing market orders, limit orders or stop orders?
• Mobile support. Most trading platforms offer mobile trading support, but apps typically aren’t as robust as the desktop version of the platform. If you prefer to trade on your mobile device, check investor feedback in Google Play and the App Store.
• Customer feedback. Explore customer feedback in places like the Better Business Bureau and Reddit to find out what investors really think about the platform.
• Your personal needs. If you’re just a casual investor, do you really need an investment platform that offers a lot of bells and whistles? On the other hand, some platforms aimed at beginner traders may not have all the features an experienced investor needs.
  

How do I compare costs?

Most online trading platforms will either charge you a commission on the trades you make or charge various other service fees. That said, some online stock brokers now let you trade for free, depending on what you are buying or selling.

But as noted above, comparing these costs can quickly become confusing. For example, discounts on the number of trades over a certain amount don’t apply to people making a few trades a year. There are also minimum balance fees and differing commissions depending on the type of security you are buying or selling.

It’s probably best to first decide what kind of investor you want to be. Do you have a lot of money to start investing with? How many trades will you make each year? Are you going to buy securities like ETFs, which people tend to buy and hold? Or are you seeking more complex securities like options and commodity futures?

I’ve found the best stock trading platform. How do I apply?

Once you’ve found the best stock trading platform to make online investments, it’s usually pretty easy to apply to open an account. If the platform is run by your bank and you can access online banking services, you can usually initiate or even complete the application process by logging into your online banking portal. If approved, you’ll likely be able to access online investment services through this portal as well.

When applying for an account with an investment services provider, you’ll typically need to provide the following:

• Your name, address and contact details
• Proof of identification (scanned and electronically sent to the investment company) such as a valid driver’s license or passport
• Proof of your income or the source of the funds that you plan to invest
• Employment details like where you work, how much you earn and how to contact your employer
• Proof that you have reached the age of majority in the province in which you live (either 18 or 19 years old)
• Proof of any any prior financial trading experience (if required). Platforms geared towards more experienced investors may require you to prove that you know what you’re doing, but many platforms are open to brand new investors.
• Your bank account details to support transfers to and from your regular bank account and your investment account(s)

Once you’ve deposited funds into your account you’re ready to start trading. Note that a minimum deposit amount may apply.

Bottom line

The right trading platform for you depends on what kind of investor you are. Before you open an account, be sure to compare basic fees. But also look at what other resources and features a platform offers and how its cost structure matches up with your own trading needs.

Frequently asked questions about the best stock trading platform

• What is the best online brokerage in Canada?

  It really depends on your needs and your experience level with stock trading. From Finder’s list of partners, here’s some direction. For ease of use and for beginner traders, Wealthsimple Trade is a good choice, but it doesn’t offer a lot of research options like some other platforms, and it only offers access to stocks and ETFs at this time. For advanced trading and research, Inteteractive Brokers provides access to market data 24 hours a day, six days a week and can be used to invest in global stocks, options, futures, currencies, bonds and funds from one single account. And finally, if you’re a trader looking for pre-built portfolios, Questrade is an ideal platform choice, where you can buy stocks, bonds, options, mutual funds, ETFs, GICs, international equities, IPOs and precious metals.

• Does it cost anything to open an account with an online broker?

  Generally speaking, no. But you’ll need money to fund your account and some platforms require you to have a minimum balance in your account.

• What is a paper trading account?

  A paper trading account allows you to make hypothetical trades through a virtual stock exchange. Investors can practice trading strategies without putting any real money at risk.

• What is a robo-advisor?

  A robo-advisor is a computer-based portfolio management service. Robo-advisors use algorithmic trading strategies to make investment suggestions based on your risk tolerance and investment goals.

• Is day trading legal in Canada?

  Yes. But this is definitely not for the faint of heart and even more definitely not for inexperienced investors. Day traders buy and sell stocks on the same day. It can be lucrative, but also extremely risky. You should also consult with a professional about the tax implications in Canada of money earned from day trading.

• What's the difference between a market order and a limit order?

  When you place a buy or sell order, you will need to select whether you want to place it ‘at market’ or ‘at limit’. Market orders will be executed at the best available price on the market at the time the order is lodged, while limit orders allow you to set a maximum (when buying) or minimum (when selling) price limit for your transaction. If your limit price is never reached on the market, your order will not be executed.

• Can I try out stock trading platforms before applying for an account?

  Yes, many providers will allow you to open a demo account and perform fake stock trades to get a feel for how the system works. This can be a great way to determine whether a certain platform is right for you.

• How do I make money from buying and trading stocks?

  There are a couple of ways in which you can generate wealth through stocks:

  • Buying a selling. You earn a profit by selling stocks for more than you paid to buy them. A key stock trading skill is knowing how to find and buy (1) undervalued stocks that you can sell for a higher price or (2) stocks issued by companies with strong financial futures in the hopes that these stocks will rise in value.
  • Holding stocks that pay dividends. You earn money on stocks issued by companies that regularly pay dividends, or a portion of its profits paid to shareholders.

• What does it mean to diversify my stock portfolio?

  “Diversifying” your stock portfolio is a risk-reducing strategy in which you buy stocks across a wide range of industries, markets and investment opportunities. If one stock investment fails, you still have other stock investments to rely on. Whereas, if you invest in one company or industry alone, and that company or industry takes a down turn, you could lose a lot, or even all, your money.

• Is stock trading complicated?

  Trading stocks is a fairly straightforward process. Getting used to the tools and resources that let you do so can be complicated, depending on which platform you use. Some investment platforms have a steeper learning curve than others. The best stock trading platform for you will depend on the time and effort you’re willing to put into managing your investments yourself.

  If you really don’t want to have to deal with the learning curve, look for online investment services that offer professional help. Robo advisors provide an excellent way to “set and forget” your investments by using algorithms to determine an the best investment strategy for you and automating the maintenance of your account.

• Do online brokers provide advice on which shares to buy?

  Yes, depending on the stock trading platform you choose and possibly on the level of membership you choose, you may very well be able to access expert stock recommendations.

• Can I trade international stocks?

  Yes, many online stock trading platforms provide access to international securities. But not all do, so if you’re interested in buying and selling international stocks, make sure you verify this before registering for an account.

• Can I open a joint investment account with my spouse?

  That depends on the investment service provider you go with. Some offer joint accounts, while others don’t, so check with your provider to find out for sure.

• Can I cancel or change an order after I have placed it?

  You can, as long as the order is still open and has not been executed (processed). However, keep in mind that market orders are placed instantly, so this option only realistically applies to limit orders.

• How do I learn more about stock trading?

  The best approach to improve your trading skills is to expose yourself to information from a wide variety of sources. From trading strategies to financial news, company announcements and market activity, staying up to date with anything related to any industries or companies you’re interest in — or to the domestic and international economy at large — will help you know what decisions to make.

  Consider taking an investment course offered by places like Udemy, Morningstar’s Investing Classroom or Skillshare. These types of courses of often taught by licensed, experienced professionals with years’ worth of knowledge to pass on. Make sure you only study with a trusted educational institution or training organization.

• Can I borrow money to buy stocks?

  Yes, there are 2 main approaches to borrowing money to purchase stocks:

  • Margin lending is offered by some banks and large stockbroking firms and involves using your existing, shares or managed funds as security.
  • Using the equity in your home to take out a loan for investment purposes.
  • Unsecured loans, although these will have high-interest charges.

  However, remember that there are many risks associated with borrowing money for an investment on which returns are far from guaranteed. Generally, you should avoid borrowing to invest unless you’re an experienced investor and are sure that you can repay the loan if your investment fails.