Best Day Trading Platforms in Canada

Benzinga readers love IFC Markets, CenterPoint Securities or Interactive Brokers as the best day trading platforms in Canada.

Day trading involves buying and selling assets within the same day, taking advantage of small price movements and market fluctuations. However, day trading is not for everyone. It requires significant skill, discipline and knowledge to succeed. That's why choosing the best day trading platform is the first step to success. In this article, Benzinga reviews some of the best day trading platforms in Canada based on factors such as fees, features, customer service and security.

Quick Look at the Best Trading Platforms in Canada:

• Best for Forex Trading: IFC Markets
• Best for Advanced Traders: Interactive Brokers
• Best for Diversified Trading: TD Ameritrade
• Best for Low-Cost Trading: Fusion Markets
• Best for Beginner-Friendly Trading: Questrade
• Best for Momentum Traders: CenterPoint Securities

6 Best Day Trading Platforms in Canada

Not all the many available trading platforms in Canada are suitable for your needs and preferences. To help you narrow down your choices, here are some of the best day trading platforms in Canada.

1. Best for Forex Trading: IFC Markets

IFC Markets is a great option for those looking for a reliable day trading platform to trade forex in Canada. With over 200 markets to choose from, including foreign exchange pairs, stocks, commodities, stock indices and metals, users have plenty of options.

IFC Markets offers competitive spreads and commissions and provides useful research and analysis tools from Reuters, Trading Central and IFC Markets. IFC Markets offer a minimum spread of 0.4 pips for EUR/USD, leverage of up to 1:400 for forex and 1:40 for stocks and a variety of account types to choose from. Start trading with a low minimum deposit of $1 for standard accounts and $300 for net trade accounts. Mobile platforms are also available for Android and iOS users.

Why We Picked It: IFC Markets offers the innovative GeWorko Portfolio Quoting Method, allowing traders to create synthetic assets by combining multiple trading assets. This unique feature provides traders with the flexibility to customize their investment portfolio according to their specific needs and preferences.

2. Best for Advanced Traders: Interactive Brokers

Interactive Brokers is a top-notch platform for advanced day traders. It provides access to more than 135 markets in 33 countries, covering stocks, options, futures, forex, bonds, exchange-traded funds (ETFs), contracts for difference (CFDs) and other assets. Trading platforms available include Trader Workstation (TWS), IBKR WebTrader, IBKR Mobile (available on Android and iOS) and IBKR API.

The platform is known for its low commissions, with spreads starting at 0.1 pips, and reasonable margin rates, as well as advanced trading tools and research resources. Traders can opt for Cash, Margin, Portfolio Margin, IRA, Friends and Family Advisor and Small Business account types. The minimum deposit is $10,000 for individuals and $5,000 for advisors. Amplify your trades with leverage up to 1:50 for forex and 1:4 for stocks. 

Why We Picked It: Interactive Brokers is an ideal platform for investors of all levels, catering to both novice and advanced users. Whether you are just starting in the world of investing or have years of experience under your belt, Interactive Brokers offers unique assets and tools that can be accessed at any time.

3. Best for Diversified Trading: Charles Schwab

Charles Schwab gives you access to over 70 markets, including stocks, options, futures, forex, ETFs, mutual funds, bonds and cryptocurrencies. It offers thinkorswim (desktop and web)and mobile trading platform. Schwab provides a wide range of research and analysis tools and charges no commissions on online stock, ETF and option trades. 

It offers a low minimum spread starting from 0.1 pips, leverage up to 1:50 for forex and 1:4 for stocks and a minimum deposit of $0 for standard accounts and $2,000 for margin accounts. Schwab account types include Standard (individual or joint), TFSA, RRSP, RESP, LIRA and RIF. 

Why We Picked It: Charles Schwab offers a diverse and comprehensive platform for investors. One key advantage is the absence of commissions on online stock, ETF and option trades. In addition, the platform provides a variety of research and analysis tools that can assist users.

4. Best for Low-Cost Trading: Fusion Markets

At Fusion Markets, users can access more than 90 markets, ranging from forex, metals, indices and commodities to cryptocurrencies. It offers MetaTrader 4, MetaTrader 5 and WebTrader trading platforms and some of the lowest commissions and spreads (starting from 0.0) in the industry, as well as fast execution and customer support. 

Fusion Markets offer leverage up to 1:500 for forex and 1:200 for metals. It features two account types: Standard (no commission) with a minimum deposit requirement of $0 and Zero (low commission) with a minimum deposit of $200. The platform supports MetaTrader 4 and MetaTrader 5 mobile for Android and iOS.

Why We Picked It: Fusion Markets stands out as a top choice for traders looking for the lowest trading costs in Canada. Not only that, but Fusion Markets also provides a wide range of tradable markets and products. When it comes to executing trades, Fusion Markets prides itself on fast execution, ensuring that traders can capitalize on market movements promptly.

5. Best for Beginner-Friendly Trading: Questrade

Questrade is a beginner-friendly day trading platform that provides access to over 50 markets, including stocks, options, ETFs, mutual funds, bonds, forex and CFDs. It offers Questrade Trading (web-based), Questrade IQ Edge (desktop) and Questrade Mobile (app) trading platforms.

Questrade has low trading fees and commissions, with minimum spread of 0.8 pips, free ETF purchases and market data rebates. It hosts a considerable amount of educational resources and customer support. The platform offers leverage of up to 1:200 for forex and 1:30 for CFDs and a minimum deposit of $1,000 for margin accounts and $5,000 for registered accounts. Questrade supports various account types like Margin (individual or joint), TFSA, RRSP, RESP, LIRA, RIF and LIF. 

Why We Picked It: Questrade is a standout among investment platforms for its user-friendly and customizable interface. With a range of options for personalization, users can tailor their experience to suit their individual needs and preferences. The platform also provides free ETF purchases and rebates on market data, allowing users to make the most of their investments without incurring unnecessary costs.

6. Best for Momentum Traders: CenterPoint Securities

CenterPoint Securities works very well for momentum traders, short sellers, day traders and more. You gain direct market access, get better order routing, advanced chart options that give you the ability to complete a technical analysis and scanners that help you monitor your portfolio much more closer than before.

Why We Picked It: CenterPoint Securities is a perfect fit for professionals and financial advisors tasked with managing portfolios for clients. The platform offers a robust short inventory that provides traders with unique trading opportunities. Whether it's short-selling strategies or balancing risk in a client's portfolio, CenterPoint Securities caters to the needs of experienced professionals looking to make the most of their trading endeavors.

What is a Day Trading Platform?

A day trading platform is a software tool or service that lets you trade stocks, options, futures, forex and other securities in a single day. It offers a range of features to help you execute your trades, like market data, charts, indicators, order types and risk management. A day trading platform also links you to a broker who acts as a middleman between you and the market. The broker charges you fees and commissions for its services. A great day trading platform should be fast, dependable, secure, easy-to-use and affordable.

How to Choose the Best Day Trading Broker in Canada

Choosing the best day trading platform involves considering several key factors, including:

Regulatory Compliance and Security Measures

Trading platforms must follow the rules and standards established by relevant authorities, such as the Investment Industry Regulatory Organization of Canada (IIROC), the Canadian Investor Protection Fund (CIPF) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). A reliable platform should also have strong security measures like encryption, authentication, firewalls and other technologies. These measures protect clients' personal and financial information from hackers, fraudsters and identity thieves. Choosing a broker that is well-regulated and has solid security measures in place ensures the safety of your money and data.

Cost Structure

Cost structure includes commissions, spreads, account maintenance fees and other charges brokers may charge for their services. As a day trader, these fees can impact profitability, efficiency and flexibility. To help you increase returns, decrease expenses and optimize your trading performance, find a platform with a low-cost structure that suits your trading profile.

Availability of Different Trading Options

The best trading platforms offer a vast selection of trading options, from forex and stocks to futures and cryptocurrencies, that match your interests, objectives and strategies. This will help you access diverse markets and products, hedge your position and improve returns.

Access to Research and Educational Resources

Especially for beginners, platforms that offer comprehensive educational resources and research tools are invaluable. Research tools are features and information the broker provides to help you analyze the market and make strategic decisions. These tools include charts, indicators, news feeds, screeners and scanners. Educational resources include courses, webinars, articles and podcasts. These resources help you stay informed, updated and educated on the market and trading.

Integration with Third-Party Tools and Software

A platform that integrates seamlessly with third-party tools and software, like trading platforms (MetaTrader), trading bots, signals and trading communities, can significantly enrich your trading experience and optimize your results. These applications or services are developed by external providers and complement or enhance the broker's platform by giving users more convenient features and functions.  

Choose an Effective Day Trading Platform

Choosing the right day trading platform is the first step towards successful trading. While several day trading platforms are available in Canada, not all may suit your needs and preferences. By considering important factors such as regulatory compliance, cost structure, trading options and other relevant factors, you can find a platform that aligns with your preferences and helps you achieve your trading goals.

Frequently Asked Questions