Best online brokers 2015 canada
Unfortunately, answering this question can be complicated because each broker has his or her own unique way of charging fees. This means that different brokers will cost more depending on how the individual uses the account.
In particular, I will look into three popular Canadian brokers - Questrade , Interactive Brokers , and Virtual Brokers - to see which one of the three would end up being the least expensive, taking earnings into consideration. Before we go on, I must disclose that I receive affiliate income from Questrade.
The following list spells out the exact assumptions I used in my analysis. Note that Virtual Brokers has different commissions structures, so I chose to use the "Classic" commission structure for comparison.
Out of the three brokers, trading stocks cost the most with Virtual Brokers. This wasn't the case up until recently, when they used to charge just 1 cent per share for each trade. However, they have since changed commission structures to court more active traders.
Questrade's trading costs are half that of Virtual Brokers. That means a trade would only cost 1 cent per share if you buy between and shares. The biggest drawback of Interactive Brokers is their inactivity fee. If you pay less than 10 USD in trading fees each month, they will charge the remainder as an inactivity fee. Furthermore, they will charge this amount per account. Lastly, whereas it costs nothing to register an RSP account with either Questrade or Interactive Brokers, it can cost substantially more if you want to hold U.
While an RSP account that can only hold Canadian dollar investments costs nothing, an account that can hold U. Under Virtual Broker's old commission structure, determining which broker was cheapest wasn't so straightforward. But with the commissions changes, I believe Questrade is currently the cheapest out of all the major discount brokerage firms that offer registered accounts.
Broker Interactive Questrade Virtual. The Canadian Discount Brokerage Review continues to expand. The main categories are:. The firms' percentage score is based on the availability of its offerings as compared to the number one peers in each category. The review continued to use usage-based criteria questions with a commission model that analyses over 12, individual trades.
The study was conducted in June and July of using Surviscor's most recent Canadian online and mobile brokerage features, functionality and service data to support the conclusions. The methodology and results were jointly produced by Surviscor and MoneySense.
CLICK on any firm for more detailed information and educational content. Additional Canadian brokerage firms not mentioned as well as all Canadian banking firms can be found by clicking: Top Pick and Honourable Mention: Questrade and TD Direct Investing. Questrade and Qtrade Investor.