Then, account fees might enter the equation. The silver lining is these maintenance fees can often be rebated if you tick the right boxes. As highlighted above, brokerages with account fees do usually provide more in the form of analytics tools and dashboards to help inform your investment strategy. Some discount brokerages e.
Questrade even offer the ability to upgrade your account and gain access to more analytics tools in exchange for an additional fee. Be sure to confirm which account options a brokerage offers ahead of time.
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Nowadays most online brokerages, including those from the big banks, let you open an account and begin investing with any amount of money. That said, a few still require you to provide a minimum initial investment e.
Commissions — the amount you have to pay to perform each trade — is easily one of the most important factors that should dictate your choice of brokerage. Commissions are either calculated on a per-share basis, a percentage of your overall trade, or a flat rate. An ETF is a hugely popular investment product and represents a diversified collection of equities that tracks the performance of a certain market segment or index e. Currently, Wealthsimple Trade is the only platform in Canada to charge absolutely no commissions when buying or selling ETFs, making it the go-to option for ETF traders and passive investors.
In most cases, the cost of buying and selling Canadian stocks is similar to commissions for ETFs covered above. When buying U. Depending on the brokerage, foreign exchange fees can hover between 1. Commission fees can vary considerably for mutual funds versus equities like stocks and ETFs. Meanwhile, Qtrade and most of the big banks eliminate commissions for buying and selling mutual funds, making them the clear option for mutual fund investors. The volume of shares you buy and how often you buy and sell can have a big impact on the amount in commissions you owe too.
Certain brokerages, like Interactive Brokers, even offer a choice of flat or tiered rates to cater to different types of investors. In other cases, brokerages like Qtrade and Scotia iTRADE even offer reduced commission rates for high-volume traders who perform at least trades per quarter.
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Whenever you buy equities listed on the U. This is particularly valuable for traders who buy large volumes of U. Most brokerages do offer a range of analytics tools, with Questrade even offering a suite of tools designed by third-party partners like VectorVest for stock analysis, Passiv for easier DIY index investors, and Wealthica dashboards. Do your research to ensure your brokerage has the tools you need. Each brokerage has different options for beginners, so be sure to compare your options. Most brokerages allow for quick and easy movement of money between your brokerage and personal bank accounts.
Though, admittedly some are quicker than others. In the case of Wealthsimple Trade, for instance, it can take up to 3 business days to deposit funds and even 5 business days in some cases and you have to manually set up each deposit. Meanwhile, Questrade allows you to set up automatic recurring deposits, and if you already bank with Scotia you can move money between different accounts almost instantly. Are you looking to invest in more than just stocks, ETFs, and mutual funds? Do you want to buy IPOs and Options? How about precious metals? In short: compare brokerages both in terms of the range of investments they offer as well as their commission rates for buying and selling each investment type.
Canada's Best Online Brokers 2021
And with the explosion in interest around investing, the impact of COVID, and to some degree, the increase in market volatility, you may have to wait on hold for a while before speaking with someone over the phone or live chat regardless of the brokerage. Acknowledging all that, some brokerages are better than others in the customer service department. For instance, some brokerages like Scotia iTRADE offer phone-assisted trades at a higher commission rate while both QTrade and Virtual Brokers are known to have some of the shortest phone wait times according to investment consulting firm Dalbar Canada with average wait times of 28 minutes and 7 minutes respectively.
Wealthsimple Trade, for example, has a sleek and bare-bones mobile-first platform that makes buying and selling equities super easy for beginners, meanwhile TD Direct Investing has made great strides to offer a sleeker experience and Questrade offers dedicated desktop and mobile applications with the ability to customize your dashboard.
QTrade on the other hand offers great tools but lacks customizability and has an outdated look. Exchange and ECN fees may apply. Terms and conditions are subject to change without notice. Power award information, visit jdpower. Find quick answers about RRSPs, taxes, or how to trade.
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