What are some good cheap online discount brokers in Canada?

Answer 1

Most of the major Canadian online brokers charge very similar fees (why am I not surprised!) For example the TD-Waterhouse minimum trade is $29.00, which I find too expensive. There seem to be two alternatives - "Questrade" and "Canadian Interactive Brokers". The basic web-based platforms of these two appear cheaper than the other major players like TD-Waterhouse, Disnat-Direct, E-Trade, BMO, CIBC, etc. Of the two, CIB is probably slightly cheaper, but the Questrade web-site seems easiest to understand and their fee-structure is simpler. A minimum trade costs about $20.00 ($17.95 + other fees). For stocks over $3.00 this flat fee applies for up to 5,000 shares, which is way better than most of the others. Either way, these two online brokers appear to be the best value for money.

I agree with the above information, however, while the major Canadian banks charge around Cdn.$29.00 per trade, you have to ask yourself a few questions.

a. Who do you want to trust to hold your money and stocks; a discount broker or an established bank?

b. If you plan to be an active trader i.e. up to 30-40 trades over a three month period, the banks offer rates in the $10.00 dollar range. i.e. Action Direct (Royal).

c. If you plan to be a buy and hold investor, frankly, I would stick with the bank of you choice, that you feel confident with.

Simply check out all the banks and discount brokers and examine their rates.

Good luck,

G

I have a Questrade brokerage account and my per trade costs are $4.95 minimum and a penny a share thereafter up to $9.95 per trade. As for trust, I prefer dealing with my online broker than with a (gouging) established bank.

Stoney