The standard commissions that are charged by the platform cannot be evaded but you can save some of the additional charges in exchange fees or advance market data charges, you can get a full rebate on the market data charges by generating a certain amount of brokerage every month.
Questrade is a Canadian online stock broker that provides various accounts for individuals as well as entities. The platform charges a fixed-based fee for trades divided into two commission plans named, ‘Self-Directed Investing’ and ‘Active Trader’ plans. Apart from these plans, the platform also levies some additional fees for access to the advance ‘Data package’ as well as some additional exchange fees, that you can easily avoid.
You can save additional fees on Questrade in 2 segments:
While placing a trade there are two places where you can end up paying more fees than usual. It is the ECN (Electronic Communication Networks) fees or ATS (Alternative Trading Systems) fee. These are the middlemen who connect the broker to the market.
There are two types of orders that you place, in one you tend to add liquidity or take liquidity on the other. While placing a Limit order you tend to add liquidity and it is exempt from any additional charges, whereas there is a small extra charge for a market order, where the minimum and maximum price limit is not specified. For such an order type you are charged an extra of $0.0035 per share for Canadian securities over $1 and $0.0008 per share for securities under $1.
You can also attract ECN fees if your buy/sell order is not in the multiple of 100s or 50s. As 100 is the standard lot, hence no additional charges will be levied if you place an order for 100 or 200 shares. Similarly, if you place an order for 40 shares, you might be liable for an additional ECN fee.
The other significant fee which you can avoid is the data package fees. You will have to pay, $89.95 per month in order to acquire all the advanced features such as Live Streaming Data, etc. You can save this fee by spending on trading. If you place trades and generate a total commission of $48.95, then you are eligible for a partial rebate of $19.95 on the data package.
On the other hand, if you are able to generate a total commission of $399.95, the complete fee of $89.95 will be waived off for you. In this way, you can avoid a substantial amount every month by simply placing more trades.
There are several choices available to Canadians who want to invest in the stock market online. Questrade ranks higher a sone of the best stock trading site for a beginner in Canada, offering access to both the Canadian and American stock markets.
This is a tricky question and does not have an exact answer. However, an average Canadian is likely to invest less than $2,000 in stocks. This number is not fixed and may go up or down based on an individual's earning, saving, expenses and financial gaols.
No, Virtual Brokers is not completely free. Only the account opening and maintenance is free but there are multiple other charges that you will have to incur. There are platform charges for using the advanced trading platform that it offers. Similarly, you will have to pay commissions on the trades that you execute on the platform. Apart from that, there are also some additional administrative and market data fees that you will have to pay while using Virtual Brokers.
No minimum amount is required to open a brokerage account in Canada. However, if the balance is less than $20,000, you will be charged $100 annually as an account fee.
You cannot open a TD Ameritrade account in Canada unless you are an American or have US citizenship. So, if you are a Canadian citizen, you cannot open account with this US stock broker.
Questrade is a low-cost online broker that does not charge any account opening fee or maintenance fees. The Tax-Saving Savings Account (TFSA) and Retirement Savings Plan (RSP) are completely free and do not require any charges. Apart from these, there are some charges like data streaming charges, etc that have to be paid after the account opening.
Fractional Shares are a great way of innvesting into major companies and diversifying portfolio through buying parts of a company's share. Wealthsimple Trade allows its users to invest in fractional shares through their platform by visiting the "Fractional Shares" window.
No, Thinkorswim is not completely free in Canada. Thinkorswim is powered by TD Ameritrade, a commission free US brokerage firm. The stock broker charges $0 commissions on online US stocks and ETFs. You have to bear some cost on option trades.
Based on our analysis, Questrade seems to be the best day trading broker in Canada. It offers a dedicated intra day trader tool which enables you to be well-informed about the markets.
No, you cannot use Robinhood in Canada. Only United States citizens, US permanent residents or those with a valid United States visa can sign up for a Robinhood account.