Is there Commission-free trading in Canada?
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- Updated On:29-Nov-2022
- Replies:1
Short Answer
Yes there are a number of platforms that offers commission free trading in Canada. Let's dig deeper into which are the brokerage firms offering zero commission trading to Canadian investors.
Detailed Answer
What is a commission free trading account?
When traders buy or sell a share or an ETF, the broking account generally charges a fixed dollar amount or a percentage of the transaction known as a transaction fee or a brokerage. Whereas, a commission-free trading account charges no cost for the trades you do.
Is there Commission-free trading in Canada?
Although Canada was slow to adopt a zero-dollar trading account, when compared to the US, there are now a number of trading platforms in Canada that charge you nothing on your trades.
1. Wealthsimple:
This trading platform offers commission free trading accounts as well as zero account-keeping fee accounts. However, when the trade is done in US denominated stocks, you are charged a commission. In fact, Wealthsimple was the first to launch commission free trading in Canada.
Disnat:
It offers free share trading and it is the only trading platform that is owned by a credit union that offers free trading to its clients.
National Bank Direct Brokerage:
This brokerage platform is the first bank backed trading platform that started to waive trading costs.
Following the National Bank Direct Brokerage TD Easy Trade has recently entered the arena of zero commission trading offer.
Why does a trading company offer a commission-free trading account?
It is one of the marketing strategies that is used by the trading companies to lure clients to open trading accounts with them. Only when a person looks deeper into the offer can one find out, if the platform is really suitable to him:
- Timing the market is crucial in trading. It is claimed that the market research and data are displayed 15 minutes late on Wealthsimple’s free trading account.
- Disnat charges $30 if your account is inactive.
- You must have a minimum balance of $20,000 to do free trades with National Bank Direct brokerage.
- TD Easy trade limits its free trade offer to 50 trades per year.
Commission-free Trading in Canada
Commission free trading does look appealing at the first sight. However, it is important to look into other features such as availability of educational programs, account keeping fees, inactivity fees, account closure fees, technical analysis tools, secured firewall, etc.
Further, the ease of use of the trading site, minimum deposits, customer care system, availability of real time information and quotes and investment options available before opening an account with the trading company.
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Discussion (0)
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