Best Online Brokers in Canada

The United States and Canada share commonalities — including a booming economy and stock market. The Toronto Stock Exchange (the largest in Canada) is the 12th largest stock market in the world. Locals and looking to trade from overseas can take use one of the many online brokers in Canada, like IFC Markets, to invest with instant execution and in some cases no commission.

The Toronto Stock Exchange has a market cap of $4.23 trillion. Through an abundance of natural gas and energy resources, an agricultural market that dominates in the production of wheat and grains and a newly thriving legal cannabis market, more and more investors are looking north for future profits. If you aren’t a native Canadian, you may still buy and sell stocks on the Toronto Stock Exchange (TSX).

However, you’ll first need to understand the differences between trading stocks in the United States and Canada, and of course select a Canadian or international brokerage firm to help execute trades on your behalf. Luckily, we're here to help: Here's what you need to know about investing in the Canadian market and our selections for the best platforms for locals and overseas traders, following months of testing.

Quick Look at the Best Online Brokers in Canada:

• Best for Sophisticated Investors: IBKR
• Best for Instant Execution and No Hidden Commissions: IFC Markets
• Best for Momentum Traders: CenterPoint Securities
• Best for Investors: CIBC
• Best for New Investors: Wealthsimple
• Best for Active Investors: moomoo
• Best for Banking and Investing: National Bank of Canada
• Best for Canadian Investors: Questrade
• Best for Active Trading: Scotia iTrade
• Best for Gathering Information: Qtrade
• Best for Self-Directed Investors: BMO Investorline

The Best Online Brokers in Canada

Whether you're a beginner looking to dip your toes into the world of trading or an experienced investor seeking advanced tools and resources, understanding the differences among the best online brokers in Canada can help you make an informed decision. In the following sections, we will explore various brokers that stand out in the market, highlighting their strengths and features to assist you in your investment journey.

1. Best for Sophisticated Investors: Interactive Brokers

Interactive Brokers isn’t a Canadian-based online broker. Instead, it offers a U.S.-based trading suite with international functionality and capabilities.

With an eye towards professional investors, Interactive Brokers’ fees are exceptionally low. You can expect to pay around $0.008 CAD per share for trades of less than 300,000 shares with a minimum commission of just $1 CAD. Interactive Brokers also offers additional discounts for high-volume traders and fees decrease as the volume of the trade increases. Though Interactive Brokers does charge an account maintenance fee for less-active traders that ranges from $10 to $20 per month, this is on the lower end for brokers offering TSX trades.

Why We Picked It: Interactive Brokers aims to keep its fees as low as possible while maximizing offerings. Additionally, you can use this platform to manage portfolios for clients or yourself

2. Best for Instant Execution and No Commissions: IFC Markets

IFC Markets is a popular forex and CFD broker that connects you with these assets better than the average broker. At IFC Markets, you benefit from several options like:

• The GeWorko Portfolio Quoting Method for creating synthetic assets
• 15 years of industry experience
• Insured by AIG Europe

Why We Picked It: IFC Markets offers a specialty quoting method that is an extremely important part of how this platform functions. It also offers a range of pairs and underlying assets that are intriguidng to investors.

3. Best for Momentum Traders: CenterPoint Securities

CenterPoint Securities is ideal for active and momentum traders who need advanced tools and quality customer service. With this platform, you can trade in Canada with better execution, a robust short inventory and advanced trading platform options.

This is a good place for Canadian traders to go if they want to make trading their life or need to manage large portfolios for clients or family.

Why We Picked It: CenterPoint Securities is an excellent platform for both momentum traders and swing traders because to its robust features and tools tailored to meet the needs of active traders. With its advanced trading technology, traders can capitalize on short-term price movements and market volatility, which are essential for successful momentum trading. 

4. Best for Investors: CIBC

For investments, you'll pay a flat fee of only $6.95 per online equity trade with no minimum. You can conveniently trade from anywhere, using CIBC's desktop platform and mobile app. Customize your trading experience with screeners, technical insight, their morning news call, advanced charting, alerts, watch lists, and more.

As for tradable securities, CIBC offers equities, ETFs, options, mutual funds, GICs, fixed income and precious metals.

Why We Picked It: The charting capabilities of CIBC are invaluable for investors and traders who prefer to conduct technical or fundamental analysis. With a user-friendly interface, CIBC's platform allows users to access a variety of chart types and customize them based on their analytical preferences.

5. Best for New Investors: Wealthsimple

Wealthsimple is the most convenient investment platform you can use. As you use this robo-advisor, it automatically invests your money, uses the best strategy for your situation and reinvests your dividends.

A visit to Wealthsimple also allows you to learn how to invest. You can check out the education section where you can study investing and personal finance—with this platform, it is very simple to grow as an investor. Additionally, you can call the customer service team or submit a support ticket when you need assistance.

With additional options for fund allocation, halal, eco-friendly and socially-responsible investments, Wealthsimple helps you get to the heart of the matter in mere moments.

Why We Picked It: Using Wealthsimple to manage large holdings can help you get an idea of how your family portfolio is performing. It is also a good place to go when you need retirement support and advice.

6. Best for Active Investors: moomoo

Moomoo is an intuitive investment and trading platform with a professional set of tools, data and insights. When you sign up with Moomoo and open a brokerage account with Moomoo Financial Inc., features include:

• Real-time Level 2 stock and options market data for funded accounts
• Advanced technical indicators and charting tools
• Advanced order types for all investors
• Full extended trading hours from 4 AM to 8 PM EST
• Multi-market quoting
• Low fees, including $0 commission on U.S. Stocks and ETFs plus $0 equity options contract fees
• 5.1% APY in the Cash sweep program 

You can review the FAQs in the Help Center if you need more information, or you can reach out to the customer support team via email or phone during the trading day.

Some new features from moomoo:

• New User Deposit Bonus: Deposit $100 and receive 7 fractional shares of a star-stocked bundle ("Magnificent 7" at $5 each)
• New User Transfer Bonus: Get a 1.5% cashback on your initial transfer amount (up to $300)
• Referral Bonus: Invite a new user who deposits $100 or transfers in $1,000, and receive 7 fractional shares of a star-stocked bundle ("Magnificent 7" at $5 each)

Why We Picked It: Moomoo provides an exceptional trading experience by offering multiple quoting options, ensuring that you have access to a variety of pricing models tailored to your trading strategies. With its real-time data feature, you can rely on information that is always current, allowing you to make informed decisions promptly.

7. Best for Banking and Investing: National Bank of Canada

While the National Bank of Canada is not a stock broker, it offers several options that allow you to prepare for retirement, save and manage your investments. You can invest in NBI funds and portfolios, try various savings plans, investment plans and retirement plans. Guaranteed Investment Certificates are also available.

This is the best place to go in Canada when you want to work with a traditional bank and invest at the same time. Think of NBC as a place where “total money management” is possible.

Why We Picked It: By pairing your banking and investment accounts, you can effortlessly track your money in one convenient platform, simplifying your financial management. This holistic approach allows you to monitor your savings growth alongside your investment performance, providing a clear overview of your financial health.

8. Best for Canadian Investors: Questrade

Benzinga's 2021 FinTech Awards Winner for Best Canadian Brokerage, Questrade is a low-cost Canadian online broker that offers quite a few fintech innovations. Only available in Canada, you can trade equities, bonds, forex, commodities, options and ETFs on the site with good pricing and a simple interface. Best for active traders and those who wish to control costs, the platform also offers:

• Low commissions
• Greater functionality for ETF traders
• Rebates on active trades
• No annual maintenance fees
• Practice accounts

Why We Picked It: Questrade offers a trading experience that stands out by eliminating traditional trading fees, allowing you to keep more of your money in your pockets. This fee-free structure not only empowers you to maximize your investment returns but also opens the door to greater opportunities for reinvestment.

9. Best for Active Trading: Scotia iTrade

Benzinga's 2021 FinTech Awards Listmaker for Best Canadian Brokerage, Scotia iTRADE is the brokerage arm of Scotiabank. Because it’s part of one of the Big 5 banks in Canada, it works well for active traders, new investors and those who wish to keep self-directed portfolios. Scotia iTRADE also offers:

• Low commissions for active traders
• Multiple trading platforms
• Research tools
• Demo accounts

Because you have access to a massive bank that can provide you with the reach you deserve, it’s much easier to build a portfolio, diversify, research and invest simply rather than keeping multiple accounts across several institutions.

Why We Picked It: Because you can demo your investments with Scotia iTrade, you have time to practice, learn how these investments will work and get an idea of how you want to manage your portfolio

10. Best for Gathering Information: Qtrade

Investing with Qtrade gives you access to stocks, ETFs, options, mutual funds, bonds, GICs and other securities with competitive prices. Investors on Qtrade are using a seamless platform that’s easy to navigate, can gather information quickly and enjoy a simplified trading experience.

Plus, you get:

• Frictionless onboarding
• Competitive incentives
• An industry-leading customer experience
• Intuitive trading options
• Enhanced portfolio analytics
• Low-cost trading options
• Commission-free ETF trading
• Canada’s best online trading support

Why We Picked It: Because onboarding and incentives are powerful on Qtrade, it helps newer investors feel comfortable as they begin investing. Also, the lack of commissions on ETFs helps you double down on your savings because you’re also investing in a long-term asset

11. Best for Self-Directed Investors: BMO Investorline

Benzinga's 2021 FinTech Awards Listmaker for Best Canadian Brokerage, BMO Investorline serves as the Bank of Montreal’s (NYSE: BMO) (TSX: BMO) self-directed investment service. when you use Investorline, you gain access to 3rd-party research and educational tools. Plus, there is a desktop and web trading platform that are paired with a powerful mobile app.

Investorline allows you to trade Canadian-listed stocks, exchange-traded funds (ETFs), stock options, mutual funds and guaranteed investment certificates. The platform works well for active traders who manage their own portfolios. Plus, you can set up a registered savings plan. BMO Investorline also offers:

• Several account types
• Research and educational options for all types of traders
• Flat brokerage fees

Why We Picked It: Investing with a bank like BMO InvestorLine often makes investors feel safer due to the institution's strong reputation, established track record and comprehensive security measures. With BMO being a well-known and trusted financial institution, clients can benefit from a sense of reliability and stability that comes from working with a bank that has been in operation for many years.

What You Need to Know About Trading in Canada

When it comes to trading in Canada, whether you're a seasoned investor or just starting out, there are several key factors to consider that can significantly impact your trading journey. 

Prices are Listed in CAD

When you’re reading stock quotes on Canadian exchanges, most assets will have prices listed in CAD instead of the USD that’s used on Wall Street. Though some trading software programs will allow you to change the viewable currencies, online listings generally default to listing Canadian securities in CAD. Keep a live currency conversion calculator (like the one available for free at XE.com) to help you enhance your trading and quickly convert prices back to your native currency.

Canadian Markets are Less Liquid

Though the Canadian stock market may expand every day, it still pales in comparison to the market that American traders frequent. The total market capitalization of the Toronto Stock Exchange is about $4.23 trillion — compare that number to $30.2 trillion in average daily market capitalization on the NYSE alone.

This means that shares of stock are bought and sold much less frequently on the Canadian stock market when compared to the American market. If you’re planning on day trading through a Canadian brokerage firm, keep this lower level of liquidity in mind when formulating your trading strategy.

This is especially important when it comes to diversifying your portfolio. Yes, you can diversify using Canadian stocks, but you can only go so far. You may need to find other forms of investment—gold, silver, commodities, bonds, crypto, etc.—to fill the gap.

Canadian Accounts Charge Maintenance Fees

In the United States, it’s pretty uncommon to see a brokerage account charge fees for inactivity or maintenance unless the brokerage firm is aimed only at large-scale professional traders. In Canada, the vast majority of brokerages charge account maintenance fees (sometimes referred to as “service fees” or “annual fees”) unless you make a high number of trades or have a very high-value account.

The best online brokerages institute a low account minimum to avoid annual fees, but these minimums may be as high as $5,000 CAD. Don’t be surprised when you see that paying an annual fee is basically unavoidable for most people and consider annual fees when you’re making your final brokerage decision.

Not Every Canadian Broker Offers the Same Equities

In the United States, most brokerages offer a host of equity types to maximize commissions and bring in more high-profile traders. It’s common for brokerage firms that specialize in stock offering to also give traders the option to trade options, futures contracts, mutual funds, ETFs and even sometimes cryptocurrencies and currencies.

In Canada, offerings will vary significantly depending on the broker, so make sure your brokerage offers every type of asset you want to trade before you open an account or make a deposit.  

Canada has Different Tax-Advantaged Account Types

In the United States, we’re used to dealing with multiple account types, from IRAs to 401(k)s to SEP IRAs. When you open an account with a Canadian brokerage firm, you’ll usually be limited to two types of accounts: taxable accounts and Registered Retirement Savings Plans (RRSPs).

If you are under the age of 69 and you regularly pay income tax to the Canadian government, you probably qualify to open an RRSP, which is most similar in tax function to a traditional IRA in the United States. If you aren’t a Canadian citizen, immigrant or permanent alien, you probably only qualify to open a standard taxable account.

What to Look for in a Canadian Online Broker

With a plethora of options available in the Canadian market, it's essential to know what key factors to consider to ensure that your selected broker aligns with your trading needs and goals. 

Great Research Offerings

Like most brokerage firms in the United States, brokers in Canada often offer free trading and educational tools and suites to help new traders learn the ropes and older traders enhance their trades. Though offerings will vary depending on the broker and its client, the best brokers offer free tools to help traders get ahead of the game.

Support for the Assets You Want to Trade

If you only want to trade Canadian securities listed on the TSX, every stock broker that operates online will be able to execute the trades you’re looking for.

However, if you’d also like to trade on other international markets or you’re interested in getting started in forex, options or cryptocurrency trading, you’ll need to double-check and make sure that your broker also offers these services.

Extended Customer Service Options

Most people don’t enjoy racking up hundreds of dollars in international calling fees because of an error on their Canadian brokerage account. Look for an international broker that offers chat and email customer service options in addition to standard calling choices to limit money lost in phone bills.

Account Security Features

Prosecuting fraud and account mismanagement are very difficult to do across national borders. Look for brokers that offer enhanced security features (like two-factor authentication and reCAPTCHA requirements) to ensure that you are the only one who is able to access and use your account.

Mobile App

When you open an account with a Canadian broker, look for a firm that offers a functional and user-friendly mobile app. Mobile apps allow you to invest as you travel, give you instant access to your account and allow you to trade at all hours.

Final Thoughts on the Best Online Brokers in Canada

It’s impossible to name a single “best” online brokerage for Canadian trading because each of our top five picks has its points of strength and points of weakness. If fees and commissions are on your mind, Interactive Brokers should be your first stop.

If you’re searching for a complete suite of advanced trading tools, you’ll fall in love with TD Direct. If you’re young and hungry for information, Qtrade might be right for you. Before you choose a broker, sit down and create a “wish list” of everything that you want in a broker and arrange your priorities by level of importance to you — this will help you pick the perfect match for your individual needs.

See also: How to Trade on the Toronto Stock Exchange

Frequently Asked Questions