Best Brokerage in Canada: The Best Self-Directed Stock Brokers by Category

Best brokerage in Canada: Summary of the best brokers by category. Low commissions, best trading platform, best for research, and best value. This post contains affiliate links and ads by Monumetric.

To be clear, this is a review of the 4 stock brokerages in Canada I have personal experience with:

Questrade | RBC Directing Investing | CIBC Investor’s Edge | WealthSimple

I will not be discussing brokerages I do not have experience with.

Frankly, it’s difficult to say which is the absolute best brokerage in Canada, anyways. Each online broker has its own strengths and weaknesses.

As such, this post will highlight the best brokerage in Canada by its individual strength.

By the end of this post, you will know who the best brokerage in Canada is for the following categories:

Best brokerage in Canada for low CAD commissions.
Best brokerage in Canada for low USD commissions.
The Best Trading Platform.
Top broker for research.
The Canadian broker that provides the best value.
Best brokerage in Canada for free ETFs.
Best brokerage in Canada for zero commissions.

Let’s get started.

Best Brokerage in Canada: The Best Self-Directed Stock Brokers by Category - Dividend Income Investor (1)

What is a Self-Directed Stock Brokerage?

A self-directed stock brokerage is an account that allows you to buy and sell stocks or other securities.

They can also be referred to as ‘discount brokers’ or ‘online broker’ because it is a less expensive option than traditional brokerages.

With a self-directed investment account, you are entirely responsible for your own investment decisions. You trade stocks on your own.

There is no financial advisor to guide you, and it’s not managed automatically like ETFs or mutual funds.

Simply put, if you want to invest in a self-directed brokerage account, you must do your own research.

Best Brokerage in Canada

There are plenty of different brokerages in Canada.

Each brokerage has strengths and weaknesses.

Although there are more options to consider, I only need four online brokers in Canada to cover the categories in this post:

Best brokerage in Canada for low CAD commissions.
Best brokerage in Canada for low USD commissions.
The best trading platform.
Top broker for research.
The Canadian broker that provides the best value.
Best brokerage in Canada for free ETFs.
Best brokerage in Canada for zero commissions.

Ultimately, investors want zero commission trading, modern software to execute trades, and research tools.

Depending on your investment strategy, one of these categories could matter more.

Best brokerage in Canada for low Canadian commissions: WealthSimple

Commission: $0

WealthSimple is the best brokerage in Canada for low commissions.

They offer zero commission trading so it literally costs nothing to buy Canadian dividend growth stocks.

However, it is not the best option for USD stocks because there is a 1.5% conversion cost.

The other downside is that it takes 3 business days to transfer from your bank account to your WealthSimple account.

But free trading is too important to ignore.

I can increase my annual returns just by eliminating commission costs. Plus, reinvesting dividend income goes a lot further.

If you are buying Canadian dividend stocks or Canadian growth stocks, you should invest in a WealthSimple TFSA.

Best brokerage in Canada for low USD Commissions: Questrade

Commission: $4.95 to $9.95

Although they do not offer free commissions, Questrade has the second lowest commissions in Canada.

Typically, each trade cost between $4.95 to $9.95 maximum and ETFs are free.

Because the cost of conversion is lower at Questrade compared to WealthSimple, it makes sense to invest in USD stocks in a Questrade account.

Overall, your expenses would be the lowest with Questrade.

Furthermore, the Questrade platform is much more advanced for trading.

The Best Trading Platform: Questrade

Commission: $4.95 to $9.95

If you are more interested in trading stocks than holding them, you should invest with Questrade.

Simply put, they have the best trading platform that is the most customizable. Their platform provides the best order status information. You will know the exact moment your order is filled, whereas, most other brokers will require you to flip between multiple pages to find out if your order has been filled.

For anyone that has traded stocks, you would know how vital up-to-date information is.

The Best Value Canadian Stock Broker: CIBC Investors Edge

Commission: $6.95 per trade.

If you are looking for a brokerage that has everything you need at a decent price, CIBC Investor’s Edge is the broker for you.

Trades are priced fairly at $6.95 per trade, you can trade USD and CAD, and they offer a lot of research tools.

In addition, if you have a bank account with CIBC, you can link your bank account for instant transfers. This means you will be able to trade the money you deposit instantly.

In my personal opinion, CIBC Investor’s Edge offers the best value out of all the Canadian brokers.

Top Broker for Research and Customer Service: RBC Direct Investing

Commission: $9.95 per trade

Although they’re not the cheapest broker out there, RBC Direct Investing offers extensive research tools and fantastic customer service.

They offer practice accounts that let you test out the platform, the ability to create watch-lists, and other research tools such as a stock screener to analyze stocks.

Similar to CIBC, you can link your RBC bank account for instant access to trade deposits.

Overall, they provide a lot of value. And that’s why you will be comfortable paying $9.95 per trade.

Best Brokerage in Canada for Free ETFs: Questrade

Commission: $4.95 to $9.95 (Free ETFs)

If you are an ETF investor, look no further. Questrade is the broker for you.

With Questrade, you get a fantastic platform and free ETFs.

But since you are an ETF investor, you might not want to spend a lot of time on research.

If that’s the case, you might want to consider WealthSimple instead, because it’s simpler and more modern.

Best Brokerage in Canada for Zero Commissions: WealthSimple

Commission: $0

In truth, I still can’t believe zero commission brokers exist.

I worked for a stock brokerage when trades were $28.95 per trade. They dropped to $9.95 while I was there. But still it’s hard to believe.

For those that are investing beginners, zero commission trades make a big difference.

It becomes so much easier to make money.

So if you are looking to buy stocks for free, open a WealthSimple account.

Best Brokerage in Canada – Final Thoughts

Ultimately, there is no best brokerage in Canada.

A better way to put it would be that there is a stock brokerage for everyone.

There are many different ways to make money through investing.

For example, there are dividend income investors, growth investors, and speculators.

Depending on your investment strategy and financial situation, the best brokerage in Canada is the broker that is best suited to your investment strategy.

How to Monitor Your Investments: 9 Foolproof Ways to Stay On Top of Your Portfolio

High Dividend ETF Payers for Passive Income Investors

Dividend Growth Stocks: The Top 9 Dividend Growth Stocks for 2021

I am not a licensed investment or tax adviser.All opinions are my own.This post may contain advertisem*nts by Monumetric.This post may also contain internal links, affiliate links to BizBudding, Amazon, Bluehost, and Questrade, links to trusted external sites, and links to RTC social media accounts.