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 otc stock brokers for day trading in Canada 2024. You can compare their features and trading conditions.
1
Questrade - Best for day trading in Canada
Questrade Inc. is a reliable broker that has been providing services since 1999. The company offers a wide range of trading instruments: currency pairs (Forex), stocks, ETFs, CFDs, options, bonds, mutual funds, and individual investment instruments. The main office is located in Toronto and this broker opens 200,000 new accounts each year. Questrade Inc. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and a member of the Canadian Investor Protection Fund (CIPF). Learn about Questrade Canada
👍 Advantages of trading with Questrade for traders from Canada:
•A wide range of instruments, access to the stock markets of 18 countries.
•The broker is regulated by the Canadian IIROC.
•Instruments for passive investments.
•Various professional trading platforms.
•Low fees for ETFs.
•Fast account opening, especially for Canadian citizens.
👎 Disadvantages of Questrade for traders from Canada:
•Relatively high commissions for Forex traders.
•Restrictions for Non-Canadian Customers.
•Limited choice of payment systems for deposits and withdrawals.
2
Interactive Brokers - Best for day trading 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
Fidelity - Best for day trading in Canada
Fidelity Investments is a large American financial services company. It was founded in 1946 by American businessman and lawyer Edward Crosby Johnson II. It provides services to traders in trading securities and commodity assets and allows investors to invest in mutual funds and investment funds, form portfolios for a variety of instruments, including bonds and annuities with fixed income. The company has received several awards: according to Barron's, Investors Business Daily, Kiplinger, and Stock Brokers. Fidelity Investments is recognized as the best online broker of 2020.
👍 Advantages of trading with Fidelity for traders from Canada:
•availability of its own trading terminal for active trading, Active Trader Pro, with advanced analytics from experts and a wide range of technical analysis tools;
•no brokerage fee for consulting services with an account balance of up to $10,000, and only $3 if a larger deposit is made;
•there is the possibility of individual planning for investors, while the cost of the service is 0.5% of the size of the deposit for each month of use.
👎 Disadvantages of Fidelity for traders from Canada:
•lack of localization;
•there are no active bonus programs; nor is there an opportunity to receive additional profit for attracting new customers;
•margin trading is possible if the account balance exceeds 250 thousand dollars;
•the demo account is limited in functionality and involves working only with investment portfolios.
4
BGL BNP Paribas - Best for day trading in Canada
The BGL BNP Paribas (hereinafter also referred to as “BBP”) broker is a subsidiary of the French financial conglomerate BNP Paribas Group, which is registered and operates in Luxembourg. The broker operates under the supervision of the European Securities Market Supervision Authority (ESMA). Its clients have the opportunity to invest in stocks, bonds, ETFs, precious metals, funds of the BNP Paribas Group, and funds of other issuers. The BBP group offers a wide range of banking, brokerage, and investment services, as well as financial advice and wealth management.
👍 Advantages of trading with BGL BNP Paribas for traders from Canada:
•No deposit fees for Luxembourg citizens or foreign residents.
•Provides a sample of funds that BBP thinks are reliable.
•Possibility of round-the-clock placement of orders for trades on European and American exchanges (21 exchanges are offered).
•Participation in the FGDL (Fonds de Garantie des Dépôts Luxembourg) deposit guarantee scheme, which involves payments of up to €100,000 for each investor.
•Assistance by a personal consultant when contacting by phone or in a Web bank chat.
•Opening a savings account to manage financial services is available in 11 currencies.
•Access to the dynamic investment of deposits from a savings account.
👎 Disadvantages of BGL BNP Paribas for traders from Canada:
•High requirements for the size of the minimum deposit, which must be at least €50,000.
•There is no fixed brokerage fee.
•The site lacks quality training on the basics of stock market trading.
5
Vanguard - Best for day trading in Canada
Vanguard is a large investment holding company founded back in 1975. Its clients can invest in stocks, bonds, certificates, options, as well as exchange and investment funds of Vanguard and third-party companies. Private and institutional investors have access to financial planning advice, wealth management services, and retirement and savings accounts for education and tuition. Currently, more than 30 million clients from the United States and 23 other countries invest in stock market assets through Vanguard.
👍 Advantages of trading with Vanguard for traders from Canada:
•No minimum deposit on investment and retirement accounts.
•Low fees for mutual funds, zero fees for trading stocks and ETFs.
•FINRA regulation and participation in the SIPC insurance fund.
•The ability to trade with margin using funds borrowed from a broker.
•Broad geography of services because all investment products and services are available not only to US tax residents but also to traders from Europe and Asia.
•Availability of accounts for investment and financial planning with tax incentives.
•Top-notch tutorials for beginners and cutting-edge research tools for seasoned investors.
👎 Disadvantages of Vanguard for traders from Canada:
•Options fees are far cry from the lowest among US brokers.
•There is no online chat or chatbot on the official website. Also, no email is specified for sending emails.
•Clients do not have access to any bonuses and partner rewards.
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.
Questrade Commissions and Fees
Traders Union’s specialists analyzed the trading and non-trading fees of Questrade. For Forex trading, the broker offers specialized Forex & CFD accounts, they detain a spread as a brokerage commission for trading currency pairs. For EUR/USD, the average spread is 1.9 pips, the minimum is 0.8. Accounts are opened and closed free of charge. There are no fees for an inactive trading account.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Forex & CFDs |
from $8 |
Yes |
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 |
Fidelity Commissions and Fees
The size of commissions for this broker varies depending on the traded instrument and for all types of accounts, ranging from 0 to 0.03% from every $1000 of turnover, plus $0.65 for each option contract. When trading medium-term and long-term US government bonds, a brokerage fee of $19.95 to $250 is charged for the entire volume of the trade. For Treasury securities maturing within a year, the commission is a maximum of $50.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Traditional IRA |
From $2 |
No |
|
Rollover IRA |
From $2 |
No |
|
ROTH IRA |
From $2 |
No |
|
Brokerage Account |
From $2 |
No |
|
Brokerage and fund management |
From $2 |
No |
|
Account «529» |
From $2 |
No |
|
Fidelity Go |
From $2 |
No |
|
Fidelity personalized management and consulting |
From $2 |
No |
BGL BNP Paribas Commissions and Fees
Analysis of the trading conditions offered by BBP shows that the maintenance of a trading account for Luxembourg citizens is free of charge. However, for foreign customers there is a subscription fee of €3 or €15 per month, depending on the type of account. Wealth management services will cost 0.5% + 17% VAT on the investment per year. There is no commission for withdrawing funds to BBP bank accounts (including SEPA). Transferring money not via SEPA and to accounts of other banks costs from €0.75 to €5 per payment. Brokerage commissions are calculated as a percentage of the trade amount and are 2% for precious metals and 0.75% for other instruments, but not less than 50 EUR per transaction.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Direct Invest+ |
From €50 |
Applied to certain international payments |
|
Direct Invest+ International |
From €50 |
Applied to certain international payments |
|
Self Invest |
From €50 |
Applied to certain international payments |
|
Self Invest International |
From €50 |
Applied to certain international payments |
Vanguard Commissions and Fees
Vanguard's analysis of trading conditions showed that the broker does not charge fees for online trading in stocks, ETFs, or investment funds. However, for transactions with ETFs, stocks, and mutual funds, made by phone, there is a charge of $25 if less than $1 million is invested. Also, for some Mutual Funds, Vanguard deducts special fees (from 0.25% to 1.00% of the transaction amount) for a purchase or sale, which are then paid directly to the funds. The trading fee per trade when trading options online and by phone is $0. However, the broker charges a fee for each contract: when investing less than $1 million, it’s $1 per contract; from $1 to 5 million, it’s $0 for the first 25 transactions and $1 per contract after that; and for more than $5 million, it’s $0 for the first 100 transactions and $1 per contract starting from the 101st deal. The broker does not charge any fees for bank transfer withdrawals via ACH.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Brokerage Margin Account |
From $1 |
No |
|
Brokerage Cash Account |
From $1 |
No |
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 otc stock brokers for day trading 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 OTC Stock Brokers For Day Trading in Canada
| Questrade | Interactive Brokers | Fidelity | BGL BNP Paribas | Vanguard | |
|---|---|---|---|---|---|
|
Overall score |
2.55 |
7.45 |
7.21 |
5.08 |
5.53 |
|
Execution of orders |
5 |
8.8 |
8.4 |
5.94 |
6.59 |
|
Investment instruments |
0.81 |
9.4 |
9 |
6.36 |
7.01 |
|
Withdrawal speed |
4.71 |
9.2 |
8.8 |
6 |
6.65 |
|
Customer Support work |
3.67 |
9 |
8.6 |
6.3 |
6.95 |
|
Variety of instruments |
4.35 |
8.7 |
8.3 |
5.78 |
6.43 |
|
Trading platform |
3.91 |
9.5 |
9.1 |
6.52 |
7.17 |
|
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FAQ
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.
Is it possible to work with offshore brokers?
It is best not to work with offshore brokers. However, if you have chosen such a company, you need to check and analyze it very thoroughly. There are offshore brokers with good reputations. Before you start working with such a company, deposit the minimum amount and start trading. Once you’ve worked with the broker for a little while and checked how it operates and how quickly it processes withdrawals, you can start depositing higher amounts.
What factors are important when you are choosing a broker?
When you are choosing a broker, it is important to make sure it is a reliable company, consider its fees, the list of trading instruments, deposit and withdrawal methods and other factors. It is important to study a broker in detail, before opening an account with it.
What commissions and fees should I take into consideration when I am choosing a broker?
The commissions and fees in the financial markets are divided into trading and non-tradings ones. Trading fees are the fees that are charged directly during trading (spread, commission per lot, etc.), while non-trading fees are the ones charged outside the trading process (for example, account fee, inactivity fee, deposit and withdrawal fee).
Best OTC Stock Brokers For Day Trading by Countries
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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.