choose an Online Broker
Minimum Size
You need to keep a minimum balance in your account to avoid paying annual or quarterly account fees. Those fees kick in automatically once your balance falls below the minimum, but otherwise are waived.
Ask your family if they have online broker accounts - if you open your broker account with the same provider, you may share a family minimum requirement.
- For bank-owned online brokers, you need around $15,000 to $25,000 to start investing.
- For independently owned brokers, it can be lower - $9,000-$10,000.
- Find out how to calculate the minimum investment size you'll need.
Updated September 2, 2022
Use our table as a guide and remember to do some research on your own.
Commission
- Usually quoted per trade, no matter how much money you are investing, and expressed in dollars.
- Can be reduced or entirely avoided. Some brokers waive commission when you buy (and sometimes buy and sell) certain ETFs.
- Generally, lower commission is better.
Consult the most recent online broker rankings. Here are a few examples.
- The Globe and Mail’s annual ranking of online brokers (subscription required)
https://www.theglobeandmail.com/globe-investor/online-brokerage-ranking-carrick/article37997437/
- Blogs, like
Million Dollar Journey https://www.milliondollarjourney.com/review-canadian-discount-brokerages.htm
Money Sense https://www.moneysense.ca/save/investing/canadas-best-online-brokers-2018/
- JD Power Canadian Self Directed Investor Satisfaction Survey. The entire survey has to be purchased but highlights are press-released for free
http://www.jdpower.com/business/press-releases/jd-power-2017-canadian-self-directed-investor-satisfaction-study
Key Features
We’ve done some research for you comparing online brokers
Consider other features that may be important to you:
- Is the platform easy to navigate?
- Does it link well to your chequing / savings accounts?
- Do transfers take as little time as advertised?
- Are monthly statements easy to follow?
- Is support accessible and helpful? What kind of support is available - live chat, phone, e-mail? Is there a mobile app? Is it useful?
- Are there discounts or educational tips for young investors?
- Sign-up bonuses are nice, but don’t let them sway you. Focus on the regular offer.
- How much spare cash will be earning in the account while waiting for you to rebalance the portfolio and invest it?
Selection and pricing of GICs. At times, GICs are a reasonable substitute for fixed income ETFs. The cheapest option is to buy GICs directly from issuing banks, but for convenience you may choose to buy them in your online broker account (the "would be a lower yield than you can get for the same GIC directly from the issuer).
Consider a demo or a practice account with the platform you’re considering before you decide
- Some online brokers allow you to open a practice account for a short period of time, like 30-90 days. Bank-owned online brokers may offer this service for clients only – so ask your banker (who may be able to do a demo for you in the branch).
- Check out the TMX stock trading simulator https://www.tmx-edu.com/
When you research providers, make sure to ask if their online broker accounts can be easily connected to either your chequing or savings account. You want to make sure it's quick and easy to transfer money to / from your investment account. It's can be quite difficult if your investment account is at a different institution than your chequing / savings account.