What are the different types of Online Trading Platforms in Canada?

Short Answer

There are a number of types of online trading platforms available in Canada. Let's checkout what kind of trading portals are available for Canadian users and the benefits these offer in general.

Detailed Answer

What is an Online Trading Platform?

An online trading platform is software that is primarily used to buy and sell financial instruments such as shares, ETFs, managed funds, bonds etc. The platforms also have market information, research details, historical information of the asset for you to analyze and decide.

They are financial intermediaries between the buyer and the seller. For their service, they charge transaction costs, account keeping fees etc.,

Types Of Online Trading Platforms in Canada

The popular online trading platforms are listed:

1. Based on the Users:

It is classified as a proprietary trading platform and a commercial trading platform.

Proprietary trading platforms are meant for the use of big businesses that replicate the trading model of electronic brokerage systems.

Commercial trading platforms are those that are meant for retail investors and intra-day traders.

2. Based on Trading Experience:

The platforms are robot advisers and self-directed trading platforms:

Robo Adviser :

This has a default set of portfolios. The platform asks you to fill up a questionnaire for it to analyse your investment time frame, tolerance to risk, goals and objectives. Based on your responses, your funds are invested in the default investment portfolios the platform offers.

The well-known robot-advisors in Canada are Wealthsimple, CI Direct investing, Questwealth, RBC invest ease, Justwealth etc., This kind of platform is widely used by beginners to trading and those who do not have the time to analyse market conditions.

Self-directing Platforms:

This is where you can get access to real-time market information, historical trends, latest news etc., complete your own analysis and buy and sell assets manually. You can devise your own portfolio based on your needs and goals.

The well-known trading platforms in Canada are Questwealth, Wealthsimple, CIBC Edge, RBC Direct investing, TD direct investing, Qtrade etc.,

3. Based on the Device you are using:

It is classified as follows:

  • Mobile app to trade on the go
  • Web-based platform that does not eat up your storage space and
  • Desktop app to trade in a larger screen.

Online Trading Platforms in Canada

It is important that you compare the different types of platforms, analyze your own investment needs and choose a service provider that best suits you. Which is your preferred online trading platform in Canada? Do share your feedback.

Tagged With: online trading platformstrading platforms canadatrading canadarobo adviseronline trading canada
Categories: Stock Market
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