Today’s investors have myriad choices when it comes to managing their portfolios, thanks to online brokerages.
These platforms allow people to trade a variety of financial instruments such as stocks, options, futures, currencies and bonds from the comfort of their own homes. Online brokerages offer a host of benefits, including lower fees, greater control over investments and access to a wealth of research and analytical tools.
In this article, we will explore the top five online brokerages in Canada, starting with a global powerhouse in the industry.
Online Brokerages
Key Takes
What’s Next
- Trade stocks, ETFs, U.S. spot gold, and U.S. economic events globally from a single account
- Invest in 150 markets in 34 countries and with 27 currencies with low fees
- Multiple platforms for beginners, intermediate traders, and seasoned traders
- Wide choice of forex trading platforms with 650+ instruments
- Ability to create & trade instruments
- Qualified online support in 19 languages
- Trade more than 9,000 stocks and ETFs for free
- High-interest chequing account at 4%
- Excellent robo-advisor
- Retirement planning tools
- Strong on research providers
- Commission-free stock, options, and ETFs
- Canada’s largest independent online brokerage with no inactivity fee
- Low portfolio management fees at 0.25%
- Offers tax-free first home savings account (FHSA)
Interactive Brokers Group Inc. (NDAQ:IBKR) stands out as a leading online brokerage with a global reach, serving clients in more than 200 countries and territories. Through its platform, investors can trade a vast array of financial instruments, including stocks, options, futures, currencies and bonds across 150 global markets. This broad access is made possible through a single unified platform, enabling clients to manage their portfolios with unparalleled efficiency and sophistication.
Interactive Brokers caters to a diverse clientele, including individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. The firm’s focus on technology and automation has resulted in a highly advanced trading platform that offers competitive execution prices, comprehensive risk and portfolio management tools, robust research facilities, and a wide range of investment products – all at low or no cost.
The recent launch of IBKR Desktop combines the best features of the company’s flagship Trader Workstation with new, customizable tools in a streamlined, intuitive interface that allows trading of stocks and exchange traded funds (ETFs) globally from a single account.
The company has earned it numerous accolades from industry sources such as Barron’s, Investopedia and Stockbrokers.com.
Interactive Brokers offers several key platforms to suit different trading needs:
- Trader Workstation: Designed for seasoned traders, this provides powerful trading features across multiple products.
- IBKR Mobile: Offers the flexibility to trade on the go with advanced tools and order types.
- IBKR GlobalTrader: A user-friendly platform for beginners and intermediate traders, allowing investment in global stocks with as little as C$1.
- IBKR Client Portal: An easy-to-use web platform for managing accounts and trading.
Interactive Brokers also offers specialized programs such as the Stock Yield Enhancement Program, allowing clients to earn extra income on fully paid shares by lending them out, and the IBKR GlobalAnalyst, a tool for identifying undervalued stocks worldwide.
Its wholly owned subsidiary, ForecastEx LLC began operations in July 2024, providing Interactive Brokers clients from eligible countries access to its services. For instance, if investors anticipate that the U.S. Consumer Price Index will rise above a certain threshold, they can opt to buy a “yes” contract. On the other hand, if they believe the event won’t occur, they can acquire a “no” contract. The prices for these contracts vary between $0.02 and $0.99.
With low commissions, tight spreads and access to a wide range of markets, Interactive Brokers is a top choice for investors looking for a comprehensive, low-cost brokerage solution.
IFC Markets Corp. is one of the top names in forex (foreign exchange) and CFD (contracts for difference, a financial agreement that stipulates the buyer pays the difference between the current value of an asset and its value at contract time).
This online brokerage offers its own unique range of trading instruments for Canadians, including stocks, commodities, indices and ETFs.
IFC Markets is known for its user-friendly platforms, competitive spreads and extensive educational resources, making it an attractive option for novice and experienced traders.
It does not provide services to residents of the United States, Russian Federation, British Virgin Islands or Japan.
Since 2019, Wealthsimple Technologies Inc. has been a “no frills” online investment platform that allows self-directed investors to trade stocks and ETFs for free.
Two ways to get the most out of this platform make it suited for hands-on traders who want to actively manage their portfolios and for those who need a cost-effective way to start trading.
Smart investing meets personalized advice:
- Managed investing: Custom portfolios designed by experts. The team can diversify your investments intending to maximize returns and minimize risk.
- Self-directed investing: Allows for full control of your trades with commission-free stocks and ETFs.
High-interest chequing with savings:
- Cash: Canada’s highest interest chequing account with a 4 per interest rate and no, monthly fees and exclusive perks.
- Savings: Earn more on your everyday earnings with low-fee investing and high-interest savings.
Fidelity is a well-known global brokerage firm that offers a wide range of investment products, including stocks, bonds, mutual funds, ETFs, mutual funds, certificates of deposit (CDs), and the rest.
Its Canadian subsidiary provides investors with access to popular trading platforms, in-depth research and analysis tools, and excellent customer support.
- Brokerage services: Fidelity operates a brokerage firm, allowing investors to manage their own investments. They provide free resources to assist with do-it-yourself investing.
- Retirement planning: Tools for those who want to handle retirement planning independently or seek guidance. It offers retirement accounts for tax-free growth.
- Wealth management: Fidelity partners with advisors to create customized plans for growing and protecting wealth.
- Robo investing: The robo advisor, Fidelity Go, handles investments automatically with no account minimums.
- Investment products: Fidelity offers mutual funds, ETFs, fixed income bonds, and CDs.
Fidelity also made a name for itself thanks to its low-cost index funds and extensive retirement planning resources, making it a top choice for long-term investors.
Canada’s largest independent online brokerage, Questrade offers a range of services, including stock trading, ETFs, mutual funds and others. It is also popular for its low trading fees and no annual fees for registered accounts. Questrade also provides a suite of advanced trading platforms and comprehensive research tools.
Customers are offered a choice between self-directed and pre-built investment portfolios. Here are the key points:
Self-directed:
- Build your own portfolio: Questrade allows you to create your investment portfolio with a self-directed account. You can trade stocks starting at C$1/share (minimum C$4.95 to maximum C$9.95 per trade).
- Low fees: Fees are kept fees low, with no opening fees, no annual RRSP or TFSA account fees, and commission-free ETF trading.
- Pricing transparency: Fewer fees mean more savings, and they compound in returns over time.
Questwealth portfolios:
- Pre-built portfolios designed by experts that offer intelligent, lower-fee investment options.
- Annual fees start at 0.25 per cent (0.20 per cent after C$100,000).
In April 2023, Questrade introduced the Tax-Free First Home Savings Account (FHSA), a registered savings account that lets you contribute up to C$40,000 towards your first home tax-free.
In 2022, Questrade launched QuestMortgage, an online service for people looking to purchase a home or renew their mortgage.
Why chose an online broker?
Online brokers offer convenient, round-the-clock access to financial markets, allowing investors to manage their portfolios from anywhere at any time.
They typically provide a wide range of investment options often at lower fees and commissions compared with traditional brokerage firms. Online brokers also offer valuable tools and resources, such as research reports, real-time market data, and educational materials, empowering investors to make informed decisions and develop effective investment strategies.
As the online brokerage landscape continues to evolve, these top five firms provide Canadian investors with a variety of options to suit their individual trading needs and preferences.
Whether you are a beginner or an experienced trader, these brokerages offer the tools, resources, and support necessary to help you achieve your financial goals.
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