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

  • Asked By
  • Updated On:
    29-Nov-2022
  • Replies:
    1

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
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
Related FAQs
What is the Best Online Stock Trading Site for a Beginner in Canada?

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.

What are best alternatives to WeBull in Canada?

Are you a fan of WeBull, a US based stock broker and looking for similar alternatives in Canada? Grab list of best stock brokers offering various products & services.

How to buy an ETF in Canada?

Are you looking forward to buying an ETF in Canada? You simply have to open an account on the trading platform of your choice that offers ETFs and start investing.

How to buy Vanguard ETF in Canada?

Are you planning to buy Vanguard ETF in Canada? You can open an account with the trading platform of your choice, that offers Vanguard and start investing.

What is Interactive Brokers or IBKR fees in Canada ?

Fees vary depending on the type of account, the products traded, and the volume of trades. For equity trades, a flat rate of CAD 0.005 per share, with a minimum of CAD 1.00 and a maximum of CAD 0.5% of the trade value. For options trades, the fee is CAD 1.00 + CAD 0.75 per contract. There is also an annual account management fee of CAD 10.00.

Is Merrill Edge available in Canada?

No, Merrill Edge is not available in Canada. Currently, it offers services only in the United States of America. Let's gather some more insights, Merrill Edge alternatives in Canada for traders and investors.

Is TD Direct Investing good?

TD Direct investing is good for investors who are pro in trading and investing, those is in need of real time market data to do research and construct tailored portfolios.

What are Thinkorswim alternatives in Canada?

There are many alternatives to Thinkorswim in Canada. Some noteworthy platforms are Questrade, Wealthsimple & Scotia iTrade.

Is Virtual Brokers safe?

Yes, Virtual Brokers is a safe online trading platform. Let's analyze the safety and security features that make the Virtual Brokers a popular platform.

Is Zacks Trade available in Canada?

No, Zacks Trade is not available in Canada. Let's explore the list of countries where Zacks Trade platforms offers its services.