You’ve probably heard of Robinhood, a popular and affordable US-based trading platform. But does Robinhood work in Canada? Unfortunately, no – you must be a US resident to use Robinhood. However, there are plenty of comparable trading platforms available to Canadian investors.
What is Robinhood?
Robinhood is a US trading platform founded in 2013 that offers zero commissions on stocks, options and ETFs. Its low fees and range of trading options have made the platform popular among traders.
The app allows users to also trade stock options and other assetsX. This is a higher-risk form of trading because both your profits and losses are amplified.
Robinhood faced heat from its users when it halted trading on trading stocks like GME and AMC, when their prices surged due to an ongoing battle between hedge funds and the retail investors using trading apps like Robinhood.
Robinhood’s main features:
Commission-free trading
User-friendly app and web platform
No minimum balance
Supports fractional share trading
Offers margin accounts
Alternatives to Robinhood in Canada
The good news is that Canada has a number of popular discount brokers that operate completely digitally through user-friendly apps and websites. We break down the Canadian alternatives to Robinhood below.
Wealthsimple has a highly rated, user-friendly trading app. Wealthsimple is a great alternative because, like Robinhood, it offers $0 commissions on trades. There is no limit on the number of trades you can make and no annual fees or minimum balances. Wealthsimple is one of the most affordable options for Canadian investors.
Like Robinhhood (which is limited to taxable accounts), Wealthsimple does not support all account types. Additionally, not all asset types are available to trade – only stocks and ETFs – and there is no ability to trade on a margin. There is also a fee for currency conversion, as Wealthsimple does not allow users to hold USD.
Asset types: Stocks, bonds, options, ETFs, currencies and futures
Account types: Cash and margin, TFSA, RRSP, personal, corporate, joint, trust and more
Trading fee: min $1.00, max 0.5%, free for many ETFs
Access: Mobile and desktop
Like Robinhood, Interactive Brokers offers leverage for trading through margin accounts. It also supports options trading and has access to global exchanges. Depending on the tier of the platform you use and the assets you are investing in, Interactive Brokers has many commission-free investment options, though it is not entirely commission-free.
Similar to Robinhood, Interactive Brokers offers a range of research tools. However, it is geared more towards experienced traders, so its app and website are less beginner-friendly. If you are looking to open a margin account, you will need a minimum deposit.
Asset types: Stocks, bonds, options, mutual funds, ETFs, GICs, international equities and precious metals
Account types: Cash and margin, TFSA, RRSP, RESP, RIF, LIF, corporate, sole proprietorship, partnership, trusts, personal and more
Trading fee: $4.95 to $9.95, free for buying ETFs
Access: Mobile and desktop
Questrade is another popular option for Canadian investors looking for a digital discount broker. Even though there are trading fees, ETFs are free to buy. Questrade offers a ton of asset types and research tools, and supports margin accounts. Plus, there are no annual fees and the platform is suitable for beginners and experts alike.
Unlike Robinhood, Questrade has a minimum required deposit of $1,000 and some investments also require a minimum trading amount.
Account types: Cash and margin, TFSA, RRSP, personal, joint
Trading fee: Between $6.95 and $8.75 (+$1.25 per contract), free for 100 different ETFs
Access: Mobile and desktop
Qtrade Direct Investing is another affordable alternative to Robinhood with very low trading fees (free if you are trading mutual funds). It offers lots of different accounts and asset types, and has no minimum balance requirements. Like Robinhood, Qtrade Direct Investing allows for margin accounts, so you can short sell and trade options. The platform is user-friendly and suitable for beginners or experienced investors.
Unlike Robinhood, Qtrade Direct Investing charges a quarterly fee for accounts under $25,000, but this can be waived if you are trading and contributing to your account regularly.
Compare all Canadian trading platforms
1 - 6 of 6
Bottom line
While Robinhood is not available in Canada, there are many equivalent platforms for Canadian investors who are looking for a digital discount brokerage. You may want to compare the Canadian platforms to Robinhood before you sign up, including commissions, fees, minimum deposits, account types and assets available. Before proceeding with a trading platform, you’ll also want to consider your financial needs, goals and personal trading experience.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
Frequently asked questions
You’ll want to consider things like your experience, goals and budget. Certain platforms are better suited for beginners whereas other platforms are designed for experts. Some platforms support lots of different assets and offer various account types, while others are more limited. You may prefer a platform that is more user friendly, or one that has extensive research tools. Cost is also a major factor, because commissions and fees vary across brokers – even the discount brokers.
Another factor could be the type of provider. You might want to have all your money within your bank, or you might want to use a more affordable digital option.
If you keep these in mind and do your research, you’ll be able to find a trading platform that suits your needs.
Regulated online stock brokers are safe, but unregulated platforms are usually unsafe. Canadian investors buying and selling stocks and other assets should confirm platforms are regulated before trading. The Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF) are the two major regulatory bodies in Canada. All of the brokers mentioned in this article are regulated platforms.
Veronica Ott was a writer at Finder. She's written for numerous finance and business websites including Loans Canada, Borrowell and Fresh Start Finance. She previously worked as a professional chartered accountant in the private equity and advertising industries. See full bio
A failed SPAC deal pulled the plug on this vertical farming company’s plans to go public. But you can buy stock in other sustainable farming companies.
Everything we know about the Reddit IPO plus information on how to buy in.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.