Whether you’re investing using a robo advisor or financial advisor, you probably realize that you’re paying a chunk of change in fees and add-ons.

To cut costs, you can manage the money yourself by signing up with one of the best online brokerage in Canada like Questrade (which is our top pick).

To help you get started, we’ve put together a handy guide detailing Canada’s best online brokers, as well as some tips on how to choose the best one for you.

An online broker lets you buy and sell stocks online within your trading account. They are often called “online brokerage or discount brokerage” because this method of buying and selling stocks is more cost-effective than a traditional brokerage.

Online brokers operate on the same principle of investing for growth as mutual fund managers and robo advisors. Online brokers offer investment options that are both higher risk and higher return than savings accounts or GICs, and these higher returns help you save for retirement over the long term.

Where online brokers differ from mutual fund managers and robo advisors is how they deliver that service. Mutual fund salespeople and robo advisors rely on a questionnaire and sometimes an in-person meeting to help them determine your ideal asset allocation, and then build a portfolio for you.

It’s all DIY with online brokers. Online brokers leave asset allocation and portfolio building to you, and instead of offering oversight and advice, they offer a low-fee environment for you to invest your money.

Online brokers are ideal for investors who follow the Couch Potato Portfolio strategy because it lets them build their ideal portfolios easily with a handful of low-cost ETFs. You can use your online broker as little as four times per year to build your portfolio and rebalance your asset allocations.

1. Questrade: Best for Low Fees and Best Trading Platform in Canada Overall

Questrade is one of the lowest cost online brokerages in Canada. They charge no annual fees no matter what your account size, and you don’t pay any fees to purchase ETFs.

This means that you can build an ETF based portfolio for $0 by using Questrade. Their other trading fees range from $4.95 to $9.95, and their account minimum is $1,000.

When you move an investment account from another brokerage, Questrade will reimburse transfer fees up to $150 per account.

Questrade offers a variety of platforms to help you trade, along with a mobile app that is responsive and easy to use. The Canadian Investment Protection Fund covers Questrade, so your money is in safe hands.

Questrade has been operating in Canada for 20 years, and with more than 50,000 online account sign-ups in 2019, they’re one of Canada’s fastest-growing brokerages. It’s why Questrade is our top pick for the best overall online brokerage in Canada.

Read our full Questrade review.

What We Like:

• Lowest trading fee
• No Annual Fees
• Free ETF purchases
• Pays transfer fees
• Multiple trading platforms
• Solid reputation in Canada
• $0 inactivity fee: Questrade no longer charges inactivity fees.
• Young & Thrifty’s promo: Start investing and get $50 in free trades

What We Don’t Like:

• Need a minimum of $1,000 in your account to start investing

2. Wealthsimple Trade: Best for New Investors

Wealthsimple is best known as Canada’s top robo advisor, but they’re quickly making a name for themselves in the discount broker space with the launch of their mobile trading platform, Wealthsimple Trade.

Its unique selling proposition is commission-free stock and ETF trading. That’s right, you can buy and sell stocks and do ETFs trading on any North American exchange, free of charge.

This is ideal for new investors who want to make smaller, frequent contributions without getting hit with trading fees for each transaction.

Wealthsimple Trade does not have an account minimum, so you can open an account for free and add funds when you’re ready.

Wealthsimple Trade accounts are CIPF-protected for up to $1,000,000. The platform currently supports RRSP, TFSA, and non-registered accounts.

Now is a great time to sign up because Wealthsimple Trade is offering Young and Thrifty readers an exclusive deal: get a $50 cash bonus and $0 commission trades when you open a new Wealthsimple Trade account. All you have to do is deposit and trade at least $250. Sign-up today to take advantage of this exclusive offer.

Read our full Wealthsimple Trade review.

What We Like:

• Commission-free trading
• $0 Annual Fees
• Seamless account sign-up
• Reimburses transfer fees for investment transfers that are greater than $5,000 in value
• Beautifully designed and easy to use

What We Don’t Like:

• No web platform (mobile only)
• Limited account types (RRSP, TFSA, non-registered)

3. Qtrade: Best For Customer Service

Qtrade is a good alternative to Questrade and has a reputation for amazing customer service. The company is trustworthy too: operating since 2001, Qtrade has $11.5 billion in assets and is a member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada.

If you’re interested in purchasing mutual funds yourself, Qtrade is one of the few discount brokerages with the ability to do so – and you won’t pay any fees or commissions when buying them.

Maintaining an account with Qtrade is slightly more expensive than Questrade, but still very cost effective, setting you back $100 per year for RRSPs and TFSAs with less than $25,000 in combined assets. You’ll pay $8.75 per trade with Qtrade, and there are no account minimums. If you incur fees when transferring your assets to Qtrade, they will cover up to $150.

To better understand what you get with Qtrade we suggest to read and compare Qtrade vs Questrade in our review.

What We Like:

• Reasonable fees
• Mutual fund purchases
• Stellar customer service
• Pays transfer out fees

What We Don’t Like:

• Fees for accounts smaller than $25,000

4. Virtual Brokers – Best for Research

Virtual Brokers is one of the most competitive discount brokerages in Canada, with offerings on par with Questrade and Qtrade.

Virtual Brokers offers free ETF trades, which is perfect for index investors, and they charge $9.95 for trades on regular stocks. There is a $25 per quarter fee on accounts with balances under $5,000.

Virtual Brokers has several trading platforms to choose from and a huge research center to help you stay ahead of the curve when making trades. Read full review

What We Like:

• Free ETF purchases
• No fees for accounts over $5,000
• Excellent research tools for beginner to advanced investors

What We Don’t Like:

• $1,000 minimum account balance

5. BMO InvestorLine Self-Directed – Best for User-Friendly Interface

BMO InvestorLine is an excellent choice for anyone looking to get started with an online discount brokerage but wants an intuitive and informative online and mobile platform.

’s user-friendly portal, along with their impressive library of third-party research and solid customer service will help you invest with confidence whether you are a seasoned investor or a complete beginner.

BMO InvestorLine isn’t the least expensive discount brokerage, with fees on accounts under $25,000, and fees to purchase ETFs, but their zero minimum balance requirement and award-winning platform are enough to overcome the drawbacks. Read full review

What We Like:

• Excellent online and mobile app
• Great third-part research
• Excellent customer service
• Zero minimum account balance for RRSPs and TFSAs

What We Don’t Like:

• Fees on ETF purchases
• $100 for account balances less than $25,000

6. Scotia iTrade – Best for Larger Deposits (Over $50,000)

Scotia iTrade is the online brokerage arm of the Bank of Nova Scotia and is a good choice for investors who want to keep money with an institution with name recognition. The bank has a long history in Canada dating back to 1837 and has hundreds of brick-and-mortar branches.

Scotia iTrade recently re-structured its fee system, making it way more affordable than it used to be.

The new fees start at $9.99 per trade and are reduced to $4.99 per trade if you make more than 150 trades per quarter.

You’ll also pay account fees when you open RRSPs and TFSAs through Scotia iTrade. Expect to pay $100 until your accounts reach a $25,000 balance; higher balances pay no fees.

You can build a portfolio of ETFs with Scotia iTrade using their 49 commission-free ETFs.

This platform isn’t the most cost-effective for investors with small account balances.

What We Like:

• Part of an esteemed Canadian bank
• Good customer service
• Fees are manageable for balances over $50,000
• Scotia iTrade ETFs are commission-free

What We Don’t Like:

• Trading fees eat into smaller accounts (under $50,000)

7. TD Direct Investing – Best for Passive Investing  Approach

Another big player in the online brokerage market is TD Direct Investing, a division of TD Bank.

This platform offers an excellent way to build a low-cost passive investing portfolio also offers trading fees that are in line with the smaller online brokerages. Also, their customer support has gotten rave reviews.

TD Direct Investing has a lower minimum account threshold than other large online brokerages, meaning that an account balance of $15,000 will waive the $100 account fees.

There is no minimum account size when opening a TD Direct Investing account, and you’ll pay basic trading fees of $9.99 per trade. Read full review

What We Like:

• Excellent for couch potato investors
• Moderate trading fees

What We Don’t Like:

• $25 per quarter on accounts smaller than $15,000

When using an online broker, you’re the boss: you make the investment decisions and choose what to purchase. While you can purchase individual stocks and bonds through your online broker, most DIY investors opt to build their portfolios out of ETFs. This strategy lets you build a highly diversified portfolio without having to go to the trouble of purchasing dozens of individual stocks.

These Canadian couch potato model portfolios can help you get started. Each includes different asset mixes, and you can pick one that’s best suited to your risk tolerance. For instance, you could build a portfolio with ETFs that is 60% equities and 40% fixed income:

• BMO Aggregate Bond Index ETF (40%)
• Vanguard FTSE Canada All Cap ETF (20%)
• iShares Core MSCI All Country World ex Canada Index ETF (40%)

If you invest your money through an online broker in these three ETFs, you will have a globally diversified balanced portfolio.

We’re big fans of passive investing, meaning we prefer to invest in index funds or ETFs that track broad market indices. As passive investors, we learn to accept that earning market returns, minus a small fee, is the best way to grow your portfolio over the long-term.

Unfortunately, during periods of extreme volatility like we’re experiencing during the COVID-19 global pandemic, markets have crashed 30% or more – taking passive investors along for a stomach-churning ride.

If you’re new to investing, now is a great time to start building a passive investing portfolio in a self-directed portfolio using ETFs, or with a robo-advisor using their personalized portfolio of index funds. Smart investors stand to profit during a market downturn: think of the market as being “on-sale” right now, and as a net buyer of stocks for the next few decades, you’ll be taking advantage of today’s discounted prices.

Current investors are getting a real-time look at their risk tolerance as they watch their portfolios drop in value. Here are two things I’m doing to keep my wits and stick to my plan:

• Avoid checking my portfolio too often: It’s tempting to sneak a peek at your portfolio value, especially after a bad day in the market. But it can be psychologically draining to see your portfolio lose money. I use Wealthsimple Trade, which is a mobile-only platform. I hide the app in a folder I rarely use on my phone to limit the temptation to check on my investments.

• Set-up automatic monthly contributions: You’re probably hearing all kinds of strategies during these tumultuous times, from selling everything and waiting out the storm, to backing up the truck to go all in with your investments. As for me, I’m sticking with my regular investing schedule by having my contributions automatically taken from my chequing account. By doing this, I’ll avoid any regret that might come selling or buying too much during this market crash.

Bear markets don’t last forever. As a long-term investor, learn to tune out the noise and stick to your investing plan.

What is the benefit of purchasing your own investments directly and rebalancing manually when your investments slip out of their ideal asset allocation? There is one thing that draws in DIY investors: low fees.

The reason that most DIY investors choose to work with an online broker is to minimize the management expense ratio (MER) they pay on their investments. MERs are the management fees associated with individual funds. MERs are expressed as a percentage of your assets and vary depending on the style of investing you choose.

Mutual funds in Canada have some of the highest MERs in the world, at an average of 2.5%. Robo advisors offer a lower MER, usually less than 1%. DIY investing offers the lowest MER possible. The portfolio above has a MER of 0.14%.

The differences in these fees may not seem like much, but they can erode thousands, or even hundreds of thousands of dollars from your portfolio, given a long enough time horizon.

When choosing an online broker, it’s important to consider how you’ll use the online broker and choose the broker that will best suit your needs. Here are some examples of factors to consider:

Trading Fees

If you plan to build a passive index investing portfolio using only ETFs, choose an online broker that offers commission-free trades or free ETF purchases and low overall fees. In contrast, if you are planning to be a high-volume trader, making up to the minute decisions on which stocks to purchase, a discount brokerage with high-quality software platforms and access to third-party research should be a priority.

Account Fees

Consider your account size when choosing an online broker. If you have a portfolio that is already over $25,000, you’ll be unlikely to pay fees at any of the brokerages listed. If you are just starting out and only have $500 to invest, some online brokers will not be an option due to account minimums, while others will eat into your returns with steep quarterly fees.

Customer Service

If you’re new to investing online, choosing an online broker with excellent customer service and an easy to use interface should be a priority since you’ll probably have a few questions at the beginning. Seasoned investors may be able to forgo good customer service in favour of excellent research and trading platforms.

Per Trade ETFs

If you’re planning to build your portfolio using ETFs, it’s important to pay attention to how much you’ll pay every time you make an ETF trade. Keeping your per trade fees low is key to minimizing your overall fees, especially if your portfolio is small.

Per Account Fees

Many online brokers charge quarterly fees on smaller accounts, usually around $25 per quarter on accounts smaller than $25,000. If you have a modest nest egg, you should choose an online broker that does not charge these fees, because they will significantly erode your annual returns.

Free ETF trades

For portfolios built with ETFs, the ideal scenario is an online broker that does not charge for ETF purchases. There are several online brokers on this list that offer free ETF purchases, and some offer free ETF trades on certain ETFs. Usually, you’ll still have to pay to sell your ETFs, but you’ll usually only need to do this a maximum of two or three times per year.

Reimbursed transfer fees

When you transfer an investment account from another financial institution to an online broker, the original institution will often charge a transfer fee to move your money. Some online brokers will pay these fees. For instance, you can transfer almost any type of investment account over to Questrade—for any amount and for as many accounts as you like. Questrade will cover the transfer-in fees, for up to $150 per account.

ECN fees

ECN fees are fees that you pay when you place an order with an online broker for either stocks or ETFs, and that order is fulfilled immediately instead of waiting for the price of the stock or ETF to reach a certain point. The fees originate from the exchange networks that fulfill the orders and are usually a fraction of a cent per share. ECN fees vary from broker to broker and could add a few cents to a few dollars on your purchases. For average investors, ECN fees are not significant, and you shouldn’t worry about them.

When it comes to getting the most out of your portfolio, the best option is to invest your money yourself, cutting out the middle person and vastly reducing the fees you’ll pay over the lifetime of your investments. While using an online broker to invest your money may seem intimidating at first, a simple portfolio built out of ETFs will give you the growth needed to reach a comfortable retirement, while keeping you in the driver’s seat of your money.

All of the online brokers listed above are good choices, but each has strengths and areas for improvement. However, if you’re looking to take the hassle out of DIY investing plus save big on fees, Questrade is your best bet and our top choice for the best online brokerage in Canada. Ultimately, the right one for you depends on your financial situation, but it’s not a question of if you should switch to an online broker to manage your money – it’s when.

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