Compare Best Online Brokerages in Canada

An online broker is a digital platform that allows you to buy and sell investments such as stocks, ETFs, mutual funds, options, and fixed income products. Unlike traditional advisors, online brokers let you manage your investments directly through a web or mobile platform.

Online brokers typically generate revenue through:

• Trading commissions
• Foreign exchange spreads
• Account management or inactivity fees
• Margin interest
• Payment for order flow in certain cases
• Premium account tiers or subscriptions

Even if trading is advertised as commission free, brokers may earn revenue through currency conversion or spread pricing.

Look beyond the advertised trading commission and review:

• Stock and ETF trading fees
• Options contract fees
• Foreign exchange conversion fees
• Account maintenance or inactivity fees
• Registered account fees
• Margin interest rates
• Real time data or advanced platform fees

The lowest commission does not always mean the lowest total cost.

Some brokers offer commission free trading on certain securities such as ETFs or Canadian stocks. However, there may still be costs related to currency conversion, options contracts, margin borrowing, or premium features.

Always review the full fee schedule before opening an account.

Most Canadian online brokers offer:

• TFSA
• RRSP
• RESP
• RRIF
• Non registered accounts
• Corporate or joint accounts

Some brokers may not support all account types, so use the account type filter to narrow your options.

Not all brokers support dual currency accounts. If you plan to trade US stocks frequently, a USD account can help you avoid repeated currency conversion fees.

Check whether the broker allows you to hold US dollars directly.

A self directed broker allows you to choose and manage your own investments.

A robo advisor builds and manages a diversified portfolio for you based on your risk profile. Robo advisors typically charge a management fee in addition to underlying ETF fees.

If you want full control over stock selection and trading, a self directed brokerage is more appropriate.

Platform quality can significantly impact your investing experience.

Consider:

• Ease of use
• Research tools
• Order types available
• Mobile app functionality
• Real time quotes
• Charting and analysis tools
• Customer support availability

Active traders may require more advanced features than long term investors.

Most regulated Canadian brokers are members of the Canadian Investment Regulatory Organization and are covered by the Canadian Investor Protection Fund.

CIPF protection covers up to certain limits if the brokerage becomes insolvent. It does not protect against investment losses due to market fluctuations.

Always verify regulatory membership before opening an account.

Minimum deposits vary by broker. Some allow you to start with as little as one dollar. Others may require higher initial funding depending on account type or promotional offers.

Yes. Most Canadian online brokers support full or partial account transfers from other institutions.

Your current broker may charge a transfer out fee. These fees can vary by account type and institution.

Some receiving brokers may offer to reimburse transfer fees, but this is not guaranteed and may depend on the account size or promotion.

Before initiating a transfer, it is worth asking the new broker whether they can reimburse any transfer fees. Even if it is not advertised, some firms may offer this on request.

Always review the terms and conditions and confirm how your assets will be transferred before proceeding.

Margin trading allows you to borrow money from your broker to invest more than your available cash balance.

This increases both potential gains and potential losses. If your investments decline in value, you may lose more than your initial deposit. You may also be required to deposit additional funds quickly to meet a margin call. If you fail to do so, the broker can liquidate your positions without notice.

Margin accounts also charge interest on borrowed amounts, which increases your total cost and can reduce returns over time.

Margin trading is high risk and may not be appropriate for most investors. It is generally suited only for experienced investors who fully understand leverage, volatility, and liquidation risk.