6 Best Trading Platforms in Canada 2024

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The role that a trading platform plays in the successful journey of a trader is humongous. Traders should focus on choosing reliable, safe, and commission-free trading platforms that offer seamless trading experience. The discount stockbrokers help you reduce the costs associated with trading to a large extent. The residents of Canada have access to several trading platforms to choose from. Traders Union (TU) evaluated several trading platforms in Canada to check if they are safe and reliable to conduct trading. The assessment helped TU shortlist the 6 best trading platforms in Canada in 2023. This guide offers a brief overview of the 6 best trading platforms and explains the process of choosing a suitable trading platform.

Start trading or investing in stocks right now with Interactive Brokers!
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Interactive Brokers Canada – Best Choice of Assets and Professional Trading Platform

Interactive Brokers Canada is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). The registered office of Interactive Brokers Canada is located in Montreal, Quebec, H3A 3J6, Canada. Interactive Brokers offer trading services through four trading platforms, which include Client Portal, Trader Workstation, IBKR Mobile, and IBKR API. All these four platforms facilitate trading in instruments, such as stocks, ETFs, options, futures, currencies, and mutual funds.

Interactive Brokers charge a minimum commission of CAD 1.00 per order and a maximum commission of 0.5% per trade value on stocks, ETFs, and Warrants. For options trading, Interactive Brokers charge a minimum of CAD 1.50 per order. The margin lending rates of Interactive Brokers Canada are the lowest in the industry. It offers a margin lending rate of 1.633% for the margin amount lesser than CAD 130,000. The margin lending rate goes down to 0.633% if the margin amount is higher than CAD 13 million.

Interactive Brokers received several awards for its range of assets and professional trading platform. For instance, Interactive Brokers was named the best online broker in Barron’s Best Online Brokers 2023 The customer service of Interactive Brokers is available 24x5 on phone, email, and chat.

Questrade – Leading broker in Canada

Open an account
Your capital is at risk.

Questrade is a member of IIROC. This stockbroker has a registered office in Toronto, Canada. It facilitates trading in a broad range of assets, including stocks, indices, ETFs, options, futures, currencies, and mutual funds.

Questrade in Canada is highly popular for its self-directed investment account that charges a commission of 1 cent per share. Questrade charges a minimum of $4.95 and a maximum of $9.95 per trade on stocks. Buying ETFs through Questrade is free; however, it charges a minimum of $4.95 and a maximum of $9.95 per trade on ETFs. Options trading attracts a charge of $4.95+$075 per contract with Questrade. The spreads on Forex and CFDs start from 0.8 pips. If you are a novice investor, you may opt for Questrade’s portfolio management service that builds and manages the portfolio based on your long-term financial goals and risk appetite for a management fee of 0,25%.

Questrade is popular for its real-time data and live streaming. Though the basic real-time market data package is free, the user needs to pay anywhere between CAD19.95 and CAD 89.95 for live streaming of data.

Qtrade – Best for Retirement Accounts

Qtrade is a leading Canada-based trading platform. It is a member of IIROC and CIPF. Qtrade claims that it is named the #1 trading platform 16 times in the last 23 years. It facilitates investing in stocks, bonds, ETFs, and mutual funds. Qtrade offers two trading accounts which include the cash account and margin account. Users can also choose registered accounts such as Tax-free Savings Account, Retirement Savings Plan, and Retirement Income Fund. Qtrade also offers a 30-day risk-free paper trading account.

Investors, who execute over 150 traders per quarter, are categorized as the Investor Plus Segment. Investing in equities and ETFs attract a fee of $8.75 for the regular investor segment and $6.95 for the investor plus segment. The charges on options trading are $8.75 + $1.25 per contract for the regular investor segment and $6.95 + $1.25 per contract for the investor plus segment. Investing in mutual funds is commission-free for both segments. However, it charges a minimum of $45 on selling or switching mutual funds held for less than 90 days. Qtrade regularly updates its education section on the website with various guides, trading strategies, and trading themes.

RBC Direct – Best for Trading in Canada Shares

RBC Direct is the brokerage division of Royal Bank of Canada. It is also a member of IIROC and CIPF. RBC offers a wide range of assets including tax-free savings accounts, stocks, mutual funds, ETFs, fixed income securities, and cash account. RCB Direct facilitates investments through a wide variety of accounts which include cash account, Tax-free Savings Account, Retirement Savings Plan, and Margin Account. It allows trading on stocks and ETFs of Canadian and U.S Exchanges.

RBC Direct charges a fixed commission of $9.95 flat per transaction on stocks and ETFs for orders placed using RBC Direct’s mobile or web application. However, this commission would go down to $6.95 per transaction for traders who execute over 150 trades per quarter. The options attract a fee of $8.75 + $1.25 per contract; this would also be reduced to and $6.95 + $1.25 per contract for clients who execute over 150 trades per quarter. The margin lending rate for investment account is 4%. However, the margin rates start from 2.75% and go up to 4% for Royal Circle Investment Account.

The customer service of RBC Direct is available Monday through Friday from 7 AM to 8 PM ET on a toll-free number, 1-800-769-2560.

CMC Markets – The Best for Demo Account

CMC Markets Canada Inc. is a member of IIROC and CIPF. CMC is one of the largest stockbrokers that facilitate investing in 35,000 shares and mutual funds across geographical locations, including Canada, the United States, and Japan. With 3 decades of experience as a stockbroker, CMC enjoys the loyalty of over 1 million traders worldwide. CMC allows investments and trading in assets such as equities, ETFs, mutual funds, options, warrants, forex, cryptocurrencies, commodities, and other interest rate securities.

In Canada, it facilitates trading in 591 shares, with a commission of CAD 8 per trade or 1 cent per share whichever is higher. CMC facilitates trading in 338 Forex products, 12 cryptocurrencies, and 117 commodities. The typical spread of USD/EUR is 0.7 pips. CMC also offers a free demo account that helps beginners’ gain a sufficient understanding of trading conditions. The demo account would help active traders test their trading strategies.

CMC facilitates trading on its proprietary trading platform, CMC Next Generation and MT4. This stockbroker has a huge library of videos, reading material, e-books, and articles on investing and trading. Its customer support is available 24X5 on email and phone.

Forex.com – The Best for Stock CFDs

Forex.com Canada Limited is also a member of IIROC and CIPF. It allows the residents of Canada to trade the world’s markets which include Forex, commodities, shares, and ETFs.

Through Forex.com Canada, the residents of Canada can trade:

  • 1

    Over 80 currency pairs with a typical spread of 0.8 pips

  • 2

    Over 220 US and UK company stocks

  • 3

    CFDs across American, European, Asian, and Australian markets

  • 4

    15 of the world's largest indices

Forex.com Canada also offers a demo account that enables users to experience its trading platform for 90 days, risk-free. Forex.com claims that it is the world’s largest MetaTrader broker.

Forex.com Canada runs an Active Trader Program that offers cash rebates to high-volume traders. The benefits of the Active Trader Program include reduced trading costs by up to 15%, reimbursement on bank fees for wire transfers, and one-on-one support from Market Strategists. Forex.com Canada offers three trading accounts which include Standard Account, MT4 Account, and Direct Market Access Account.

Forex.com Canada offers broad educational content that covers trading strategies, trading themes, risk management, fundamental analysis, and technical analysis. The content is segregated based on the experience level of the user. The customer support is available from Sunday 10 AM to Friday 5 PM ET.

Share Trading Platforms in Canada Comparison

Broker Minimum Deposit Regulated in Canada Canadian Shares US Shares

Interactive Brokers Canada

$0

Yes

Yes

Yes

Study review

Questrade

$1,000

Yes

Yes

Yes

Open an account

Your capital is at risk.

Qtrade

$0

Yes

Yes

Yes

Study review

RBC Direct

$0

Yes

Yes

Yes

Study review

CMC Markets

$0

Yes

Yes

Yes

Study review

Forex.com

$100

Yes

Yes

Yes

Study review

How to Buy Stocks in Canada?

Not all brokers are reliable and safe. An investor should choose a safe and reliable broker that offers a commission-free trading service. The following are the steps involved in the process of buying stocks in Canada. We have used Interactive Brokers (IBKR) Canada as an example to show the steps involved in the process.

Step 1: Registration

A brokerage account is mandatory to start the investment journey. You can get a brokerage account by registering with a stockbroker like Interactive Brokers. Most stockbrokers ask investors to use their mobile phone number or email address to sign-up with the trading platform. The stockbroker asks for documents such as a national identity card to verify your identity.

Step 2: Demo Account

We suggest investors use the demo account to gain knowledge on the trading environment as well as the features of the trading platform Interactive Brokers offers a free demo of IB Trader Workstation (TWS) on the Windows platform.

Step 3: Link Bank Account and Transfer Funds

Investors need to deposit money to purchase shares. Most brokers allow their users to deposit money through wire transfer, debit cards, and credit cards.

Step 4: Create a Watchlist

Creating a watchlist is an important step in the process of buying stocks. A watchlist comprises a list of stocks that an investor wants to closely monitor. We suggest investors create a watchlist of at least 50 high-quality stocks. If you are using Interactive Brokers, you may need to click “+” on the top right corner and select Watchlist from the drop-down menu.

Step 5: Choose a Stock from Watchlist and Make a Purchase

Choose the desired stock from the watchlist, specify the number of shares you want to purchase of the stock and select the market order to execute the transaction at the current market price.

How to Choose the Best Trading Platform in Canada?

Investors can use the following algorithm to choose the best trading platform in Canada.

Test Platform in Demo: Do not jump into investing or trading without having sufficient knowledge of the trading platform. Instead, test the platform with the help of the demo account to analyze its features and understand the trading conditions.

Safety and Security: Traders must register with a stockbroker who has relevant licenses from regulatory bodies. The residents of Canada should check if the trading platform they plan to use is regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF).

Read Reviews: We recommend investors read reviews from expert traders and investors about the trading platform they want to choose. Investors may also read reviews written by Traders Union on various trading platforms to make an informed decision.

Tools and Analytics: The role of technical indicators, tools, and educational content in enhancing the capabilities of an investor is undeniable. We suggest investors choose a trading platform that offers tools, technical indicators, and educational content free of cost.

Explore Automation Tools: Most beginners don’t have experience in investing and trading. They may need the help of automation tools, such as Expert Advisor, Copy Trading, PAMM, and LAMM to generate a decent return on investment during the initial stages of their investing career.

Summary

A handful of stockbrokers operate in Canada. However, most of them are not reliable and safe. Investors should carefully evaluate the licenses, commissions, fees, customer service, margin lending rates, and educational content while choosing a suitable trading platform. The availability of a demo account should also be considered. The 6 trading platforms reviewed in this guide are members of IIROC and CIPF. They also facilitate investing in companies listed on both Canada and US stock exchanges.

FAQs

What is the average return I can expect from investing in stocks?

Equity investing does not guarantee fixed returns to investors. The S&P 500 index delivered an annualized return of 13.6% over the last 10 years. So, you may expect an annualized return of over 10% from equity investing if you stay invested with quality companies for the long term.

Which is important, fundamental analysis or technical analysis?

Both have their merits and demerits. If you want to become an equity investor, you may need to be proficient in fundamental analysis. Traders need to know technical analysis as it helps identify signals of entry and exit for the trade.

Can I use Copy Trading?

Yes, copy trading is legal in Canada. You can choose any broker that facilitates copy trading to copy the trading strategies of professional traders.

Which is the best trading platform for beginners in Canada?

You may choose a stockbroker who offers a $0 minimum deposit. The stockbrokers like Interactive Traders, Qtrade, RBC Direct, and CMC Markets fit the criteria.

Team that worked on the article

Peter Emmanuel Chijioke
Contributor

Peter Emmanuel Chijioke is a professional crypto, blockchain, NFT, Metaverse and Web3 writer, and a contributor to the Traders Union website. With a background as a top programmer and a computer science graduate, Peter has been writing articles related to crypto, blockchain, and related technologies since 2018.

Olga Shendetskaya
Author and editor at Traders Union

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.

Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.

Olga’s motto: Do well and you’ll be well!

Mirjan Hipolito
Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.