In order to trade successfully, it is very important to choose the right broker. in Canada, a large number of companies provide access to trading and you will have to choose the one for you among them. It is important to work only with reliable brokers providing all the required instruments for trading based on your trading strategy. TU analysts have selected the best etf brokers for fractional shares in Canada 2024. You can compare their features and trading conditions.
1
Revolut - Best for fractional shares in Canada
Revolut is a British fintech company that has been providing investors with accounts for trading precious metals, cryptocurrencies, and stocks listed on U.S. exchanges since 2015. The broker offers its clients access to investing in stocks and ETFs on European stock exchanges. For organizations and private clients, the company offers a multi-currency account with the possibility of exchanging currencies at the current inter-bank exchange rate. Revolut is supervised by the Financial Services Authority (FSA).
👍 Advantages of trading with Revolut for traders from Canada:
•In addition to stock trades, customers can trade cryptocurrencies and precious metals.
•The broker offers commission-free trading plans.
•The minimum number of shares to buy is 0.00000001.
•There are no minimum deposit requirements.
•Social trading is available, which allows newcomers to the stock market to copy trades of successful traders.
•Communication with the support service via chat is available in the mobile application 24 hours a day.
•There is no fee for opening and maintaining a trading account.
👎 Disadvantages of Revolut for traders from Canada:
•Stock trading is currently only available to UK residents.
•Operations in precious metals and cryptocurrencies are not regulated by supervisory authorities.
•The company does not offer fiduciary management of its investment portfolio.
2
Interactive Brokers - Best for fractional shares in Canada
Interactive Brokers is among the best-known US investment companies, operating since 1977. The broker offers to trade currency pairs, but its basic instruments are stocks, CFD, indices, metals, ETF, futures, and other exchange market assets. The company is regulated by the US Securities and Exchange Commission (SEC), the US Financial Industry Regulatory Authority (FINRA), the UK Financial Regulatory Authority (FCA, 208159), and other international financial regulation commissions. In 2020, the broker was awarded the "Best Online Broker” (Barron's) and "Best Broker for Economical Investments" (NerdWallet) titles and got five stars in the Online Stock Trading for Traders category (Canstar). Also, the broker is popular in other countries. Here you can read reviews of Interactive Brokers in Canada, Singapore, Australia, Hong Kong, Ireland.
👍 Advantages of trading with Interactive Brokers for traders from Canada:
•wide range of training materials;
•access to 135 markets in 33 countries;
•a huge subset of trading instruments.
👎 Disadvantages of Interactive Brokers for traders from Canada:
•website interface is only partially translated into other languages;
•you have to pay for an inactive account;
•Support service does not work on Saturday and Sunday;
•long and complex registration procedure;
•no cent accounts for novice traders.
3
AJ Bell - Best for fractional shares in Canada
AJ Bell is a stockbroker that facilitates traders to efficiently achieve their investment goals. The company is regulated by the UK Financial Conduct Authority (FCA 155593) and cooperates with the FSCS Compensation Fund. Stocks, mutual and investment funds, as well as bonds, securities, IPOs, and ETFs are the main trading instruments of AJ Bell.
👍 Advantages of trading with AJ Bell for traders from Canada:
•Accounts for adult and minor clients.
•You can trade on your own or contact the company's employees via secure fax, phone and messages.
•The broker offers Islamic savings accounts that take into account the specifics of Sharia law.
•The company provides investment offers to help clients achieve their financial goals.
•You can trade through a web terminal or a mobile application.
•In the event of the company's bankruptcy, AJ Bell’s clients will get financial payments from its compensation fund.
•If necessary, you can apply to open a joint account.
👎 Disadvantages of AJ Bell for traders from Canada:
•There is no option to verify trading terms on a demo account.
•It is not possible to trade stocks outside of business hours on the UK market.
4
Easy Equities - Best for fractional shares in Canada
Easy Equities (EasyEquities) is a US stock broker providing financial services in the international market. The company opens access to South African, American and Australian markets and provides an opportunity to trade fractional shares. Investors can choose an individual or corporate account and there are also accounts for children. EasyEquities is a part of two licensed financial services companies — First World Trader and Purple Group.
👍 Advantages of trading with Easy Equities for traders from Canada:
•Demo accounts with two base currencies to choose from: USA and ZAR.
•Low trading commissions and zero non-trading fees.
•An account for children under age.
•No required minimum deposit amount.
•A possibility to invest independently or use investment offers of the broker.
•Residents of the majority of countries can open an account with the broker.
•Fractional shares are among trading instruments available to traders.
👎 Disadvantages of Easy Equities for traders from Canada:
•Deposit and withdrawal take several days.
•The broker offers very few methods of contacting customer support.
•There is no information about the authorities regulating the operation of Easy Equities.
5
Qtrade - Best for fractional shares in Canada
Qtrade is a Canadian stock broker that has been providing financial services in the market for over 20 years. Its operation is overseen by IIROC, and the company is also a member of the Canadian Investor Protection Fund (CIPF), which provides financial insurance for Qtrade clients in case the broker files for bankruptcy. Qtrade specializes in providing access to trading stock exchange assets: stocks, bonds, options, exchange-traded funds (ETFs), mutual funds, and securities. The broker’s trading conditions are designed to suit both professional investors and novice traders. Over the years of operation, the broker received many awards, including Best Online Brokerage (The Globe and Mail), Best Online Brokerage Experience (Surviscor) and Best Independent Online Broker (MoneySense).
👍 Advantages of trading with Qtrade for traders from Canada:
•Before opening a live account, investors can test the broker’s trading conditions on a free demo account.
•The company offers accounts for the clients with different needs, including retirement accounts.
•The broker does not have a minimum deposit requirement: the trader chooses the amount to deposit on the account.
•Qtrade clients can trade using their PC or mobile device, through the Qtrade application.
•The company provides instruments that allow users to assess portfolio effectiveness and possible risks.
•Wide selection of instruments provides for an opportunity to build a diversified portfolio.
•Clients’ equity is protected, as the broker is a member of the Canadian Investor Protection Fund.
👎 Disadvantages of Qtrade for traders from Canada:
•Only the residents of Canada, residing in the territory of the country, can open an account on Qtrade.
•The broker does not have featured passive income programs or a partnership program and bonuses for trading.
•Opening an account can take from 2 to 7 days depending on the company’s workload.
Commissions & Fees
Brokerage fees are the amount of money that you pay for using the services that a brokerage offers in order to perform trading and manage investments. The brokerage fee structure and regulations vary from broker to broker, and there are two primary fee types which are:
Trading Fees: This type of fee is only charged when you perform a trade. It can be a conversion fee, margin rate, financing rate, spread, or commission.
Non-Trading Fees: This type of fee isn't directly related to your trading activity, and it can include inactivity fee, withdrawal fee, deposit fee, etcetera.
Revolut Commissions and Fees
During our analysis of trading conditions, it was found that Revolut limits the number of trades without commissions. Depending on the account type, 1-5 transactions per month are free. There is a monthly subscription fee of £2.99-£12.99 on different accounts, which can be reduced by 20% if you pay in advance for a year. The broker charges a fee of 1 USD for additional orders. Since stocks listed on American exchanges are offered for investment, the fees are calculated in USD and then the funds are converted to the account currency at the current exchange rate. For transactions in cryptocurrency, the commission is 1.5-2%, and for transactions in precious metals, it’s 0.5-1.5% of the transaction volume. The amount of interest depends on the selected trading account. No additional hidden commissions were revealed.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
From £2.99 |
No |
|
Plus |
From £2.99 |
No |
|
Premium |
From £2.99 |
No |
|
Metals |
From £2.99 |
No |
Interactive Brokers Commissions and Fees
Traders Union analysts have verified Interactive Brokers for hidden fees and assessed the commission level in the company. The company charges $20 for an inactive account if there is less than $2,000 on the account and $10 if there is more than $2,000. You can withdraw funds for free once a month; if you withdraw funds more often, you’ll have to pay a commission, the amount of which varies depending on the base currency of the account and the payment system.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Real |
From $2 |
Depending on the currency and withdrawal method |
AJ Bell Commissions and Fees
Specialists at the Traders Union have verified the trading terms of AJ Bell, as well as verified the broker for any hidden or explicit commissions. The broker charges a commission for making transactions. There is a commission of £1.50 for the purchase and sale of equity assets (including mutual funds, OEIC), and the commission is £9.95 per transaction for trading in stocks, ETFs, bonds, securities, and investment funds. The commission is £4.95 for shares and other assets for which the trader has placed orders over 10 times in the previous month. There are no fees for account maintenance, withdrawals, inactivity, or the use of mobile applications.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
SIPP (self-invested personal pension) |
from £1.50 |
No |
|
Stocks and Shares ISA |
from £1.50 |
No |
|
Lifetime ISA |
from £1.50 |
No |
|
Dealing account |
from £1.50 |
No |
Easy Equities Commissions and Fees
Traders Union analyzed Easy Equities trading and non-trading commissions and fees. Easy Equities does not charge non-trading fees (for funding the account, using the trading platform, account servicing). Trade execution fee is 0.25%, minimum commission is USD 0.01. Withdrawal fee depends on the base currency of the account. Specifically, traders who use ZAR as their base currency do not pay a withdrawal fee, while for international withdrawals in USD the fee is set by the bank.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
ZAR |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
|
USD |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
|
AUD |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
|
TFSA |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
|
RA |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
|
EasyProperties |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
Qtrade Commissions and Fees
Traders Union analysts analyzed Q trade to determine the actual size of trading and non-trading commissions and also concealed fees. The information about trading and non-trading commissions is provided to investors in full. The broker charges USD 8.75 commission for trading stocks, USD 8.75 + USD 1.25 per contract for trading options. The broker provides investors access to 100 free ETFs; the commission for trading ETFs that are not on the list of free ones is USD 8.75. Trading mutual funds is commission free, while the commission for exchange bonds and bonds with fixed income is USD 1 per each USD 1,000 (nominal value is taken into account). For investors who chose the Investor Plus plan, the commission is reduced from USD 8.75 to USD 6.95. There is also a non-trading commission. If an investor closes the account during the first 12 months, the broker will charge USD 100 commission; there are also administrative fees for physical certificate withdrawal, certificate safekeeping, cheque requests, etc. The administrative fee is not charged only in case the client has at least USD 25,000 on the account balance or if the trader participates in the young investor program (aged 18-30).
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Cash |
From USD 6.95 |
Electronic transfer – free |
|
Margin |
From USD 6.95 |
Electronic transfer – free |
|
TFSA |
From USD 6.95 |
Zero fee |
|
RSP (RRSP) |
From USD 6.95 |
Zero fee |
|
LIRA/LRSP |
From USD 6.95 |
Electronic transfer – free |
|
RESP |
From USD 6.95 |
Electronic transfer – free |
|
RIF (RRIF) |
From USD 6.95 |
Electronic transfer – free |
|
LIF |
From USD 6.95 |
Electronic transfer – free |
Summary
Many brokers are available for traders from Canada, but not all of them offer good conditions. In this review, TU experts chose the Best etf brokers for fractional shares in Canada 2024. These are the most trusted companies that offer the best conditions for traders. You will also be able to review the general assessment of each broker.
Overall score of the best ETF Brokers For Fractional Shares in Canada
| Revolut | Interactive Brokers | AJ Bell | Easy Equities | Qtrade | |
|---|---|---|---|---|---|
|
Overall score |
7.69 |
7.45 |
5.11 |
4.78 |
4.93 |
|
Execution of orders |
9.2 |
8.8 |
5.99 |
5.44 |
5.69 |
|
Investment instruments |
9.8 |
9.4 |
6.41 |
5.86 |
6.11 |
|
Withdrawal speed |
9.6 |
9.2 |
6.05 |
5.5 |
5.75 |
|
Customer Support work |
9.4 |
9 |
6.35 |
5.8 |
6.05 |
|
Variety of instruments |
9.1 |
8.7 |
5.83 |
5.28 |
5.53 |
|
Trading platform |
9.9 |
9.5 |
6.57 |
6.02 |
6.27 |
|
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FAQ
Can you earn passive income in the financial markets?
Yes, the best brokers in Canada offer passive income options. These could include copy trading, PAMM accounts, managed portfolios, etc.
What learning instruments can a broker offer?
Brokers offer various educational options. These include full-fledged educational courses, or video tutorials, articles, and books. Companies also often hold seminars and webinars.
What are the risks of trading in the financial markets?
Any trading in the financial markets carries risks of losing your money due to asset volatility. Therefore, it is important to develop the rules of risk management in your strategy and strictly follow them.
How much money do I need in order to start working in the financial markets?
The initial capital depends on the assets you plan to trade. However, in the majority of cases, $300-500 is a good amount for a start.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.