Questrade reclaims the top spot in our annual ranking, while National Bank Direct takes the No. 2 position for the first time.
In the past year, Canadian investors have embraced online brokerage services at rates not seen since the early 2000s. The surge makes sense, given that COVID-19 pandemic lockdowns have forced many of us to navigate life from behind a computer screen. If you’re working, socializing and shopping online, why not invest online, too? Fewer hours spent commuting and going out probably also played a part, since time—to increase knowledge and perform transactions—has always been the main barrier to self-directed investing. Then there’s the cost-savings angle, with the message that DIYers can save a bundle on fees finally going mainstream.
While pricier full-service investment options provided by financial advisors and bricks-and-mortar firms have their place—as do robo-advisors with their affordable hands-off portfolios—DIY investors who want the greatest selection of assets at rock-bottom fees can’t do better than online brokers. Of course, with a growing number of online brokerage services now available in Canada, it is hard to know which one is best for your needs.
That is where the annual MoneySense Best Online Brokers ranking comes in. Now in its ninth year, the ranking again relies on analysis provided by Surviscor, a leading Canadian research and consulting firm specializing in digital and direct financial services’ customer experiences. Customized for MoneySense to include hundreds of data points—including price, customer service, product offerings and mobile capabilities—Surviscor’s deep-dive into the Canadian online brokerage marketplace is second to none.
| Rank | Broker | Total points | Basic stock-trading commission | Minimum non-registered account size for no annual/inactivity fees | Mobile app/mobile responsive website |
|---|---|---|---|---|---|
| 1 | Questrade* | 36 | 1 cent per share ($4.95 min/$9.95 max) | None | Yes |
| 2 | National Bank Direct Brokerage | 31 | $0 | $20,000 across all accounts OR 5 trades per year | Yes |
| 3 | TD Direct Investing | 25 | $9.99 | No annual fees | Yes |
| 4 | Qtrade Direct Investing* | 22 | $8.75 | $25,000 across all accounts OR 5 other conditions OR $50 per month deposit for Young Investors | Yes |
| 5 | BMO InvestorLine | 9 | $9.99 | $25,000 for RRSPs; $10,000 for non-registered | Yes |
Here’s a closer look at the top three overall winners.
Questrade, which slipped to No. 2 last year after placing first in 2019, has reclaimed the top spot with a score of 36 points. Why the move back to No. 1? There are several reasons, not the least of which is Questrade’s consistently high level of customer service, an area where it continues to outperform its industry peers. (Be sure to read the individual category reviews below.) In addition, Questrade maintains its top standing in the mobile experience category and leads our new customer onboarding category, which explores the overall process and experience of becoming a client. Having said that, even the top firms have holes in their offerings and Questrade is no different. As in previous years, it still lags in terms of the market data it provides, and loses marks for having commission fees that aren’t always as low as advertised.
Learn more about Questrade Accounts* >
√ Industry-leading customer service responsiveness
√ Initial customer experience (transparency on offerings and fees, account opening experience, etc.)
√ Mobile experience is similar to online experience
√ Industry influencer (progressive; dedicated to improving the service for customers)
√ Commitment to financial literacy
x Charges electronic communication network (ECN) fees, an additional per-transaction fee that can considerably increase stated commission costs
x Charges commissions on ETF sell orders
x Depth and breadth of market information
National Bank Direct Brokerage entered our top three for the first time in nine years with a score of 31 points. Then, after our initial June 2021 publication, it went one better in late August and reduced its commission fee for online trades of Canadian and U.S. stocks $0 from $6.95. ETF trading was already free for both buys and sells, with unlimited inventory availability. National Bank’s brokerage is one of Canada’s most well-rounded offerings, catering to both the novice and sophisticated DIY investor through multiple programs, with what we believe is the most competitive overall commission structure in Canada. That said, like all other firms, it’s not all roses; the process of becoming a customer is not as slick as with some competitors.
√ $0 commissions on Canadian and US equities, and ETFs
√ Overall equity investing process, including fees and market data
√ Overall ETF investing process, including unlimited inventory, no fees and depth of market data
√ Mobile experience is similar to online experience
√ Depth and breadth of market data provided to all customer segments
√ Educational material
x Service responsiveness is amongst the worst in Canada
x Process of becoming a customer
x Overall platform design and user experience
TD Direct Investing, the largest discount brokerage firm in Canada, rounds out the top three for the fourth straight year with a score of 25 points. (It narrowly edges out last year’s overall winner, Qtrade Direct Investing*, which has an overall score of 22 points.) TD’s major strengths are its depth and availability of market data (including quotes, charts, technical analysis, research, and market notifications), its commitment to financial literacy and its overall equity investing experience, making it the winner in each of those categories. The troubling reality for TD Direct Investing is that the main areas where it misses the mark, namely customer service and fees, are critical to investor satisfaction.
Things we like:
√ Initial impression (good integration of discount brokerage service within bank-based site)
√ Depth and breadth of market data
√ Commitment to financial literacy
√ Industry pioneer and influencer since the early days of self-directed investing
Needs improvement:
x Unexplainable lack of commitment to customer service responsiveness
x Fees and commissions tend to be on the high side
x Confusing banking/brokerage integration (once user delves beyond the initial impression)
Some online brokers excel in areas that may be important to certain customers. Explore each category below:
Much of the marketing you see for online brokerage firms tends to focus on fees—and with good reason. Given that most charge somewhere between $5 and $10 per trade, it is a massive savings over the $80 to $150 per trade that full-service brokers once charged their clients.
Unfortunately, those advertised fees do not always tell the whole story. For example, many low-cost firms charge an ECN (Electronic Communication Network) fee that can double your commission costs, while others exclude some popular stocks from their investment offerings. Then there are platform fees for enhanced quote data, which can run investors an extra $30 per month, but may be worth it. The overall message is buyer beware.
To get a clearer picture on fees, we analyzed more than 13,000 individual trades using five different trade-volume related investor profiles. We compared fees for stock, options and ETF trades. (This year, for simplicity’s sake, we decided to ignore account interest rates and general account fees, as they tend to be insignificant factors when trying to differentiate between firms.)
Of course, it’s important to understand that lowest is not always best when it comes to fees. You should also consider what you’re getting for your money. Even if you are a conservative or passive investor, paying a few extra dollars (or pennies, as the case may be) per trade is worth it if the service includes access to free tools and resources such as unlimited quotes and depth of data. Even at $10, an average trade of 500 shares of a bank stock could be hundreds of dollars cheaper than with a full-service advisor, so weighing your “extras” is the key.
Don’t fall for shiny marketing messages. Do your homework and ask yourself: “Do I really believe that a firm is willing to pay for my fees and lose money doing so just so I can be a customer?” (See “What does $0 commission really mean?”in the “Online brokerage fast facts” section below.)
1. National Bank Direct Brokerage
National Bank Direct Brokerage is our fees winner, with zero commissions on all ETF buy and sell orders in both Canada and the U.S. (Other online brokers either charge commissions on ETF sales and/or have a limited number of ETFs to choose from.) In addition, in August 2021 it dropped its standard rate of $6.95 per trade on other equities to $0, and its active trader fee structure of $0.95 a trade is hard to beat.
How can the only firm in our ranking that has an advertised rate of $0 end up in second place for fees? The No. 2 spot is to drive home the point that there’s no free lunch in life—Wealthsimple Trade’s $0 commissions come with conditions and tradeoffs that should be noted. First off, many popular U.S. stocks are not available through the platform, most notably Disney. Second, while Wealthsimple Trade advertises that it has chosen the list of ETFs clients can invest in, online brokers are not qualified to dictate anyone’s investment journey. The whole point of an online broker is to let self-directed investors make their own decisions. Lastly, there is much industry debate as to whether a DIY investor is receiving the best available price when placing a trade with Wealthsimple Trade, as the limited and delayed market data provided—quotes can be delayed by as much as 15 minutes—may lead investors to act based on inaccurate price information. But $0 commissions should be attractive to those who understand the potential hidden implications of a no-fee trade.
If you ask me, customer service is the key differentiator between firms and should never be taken lightly. Our position over the past 20 years has always been to look at the way firms treat potential customers to evaluate how committed they are to service. The general pushback we get from lagging firms, most of which are banks, is that they treat existing customers better than potential customers. Assuming that’s true, what does it say about these banks? In today’s competitive times, each firm needs to put its best foot forward to gain a client’s initial trust. Don’t be fooled by big brand names and assume a firm is better because it’s big, or because it’s a bank.
In our analysis, we focused on firms’ average response time to service enquiries over the 12 months ending March 31, 2021, the various types of contact and hours of service provided, as well as service levels from individual days of the week. For the record, we did not evaluate the numerous system outages that plagued the industry in the last year because they affected all firms and are simply too hard to objectively evaluate. (While one could argue that COVID-19 has had a major impact on the current state of customer service, our research over the past two decades indicates that service levels were dropping well before the world stopped moving.)
1. Questrade*
In a repeat of last year’s results, Questrade is again our top choice for customer service. It has shown its commitment to clients with a consistent track record of responsive service (typically around four hours) even through the COVID-19 crisis to date. In addition, Questrade offers live chat and correspondence via social media for investors who prefer those channels.
2. Canaccord Genuity Direct
Our runner-up is one of the new brands in town, Canaccord Genuity Direct, formerly known as Jitney Trade. While we do not see this online broker as a suitable choice for Canadian DIY investors (it appears the firm has re-branded using a stronger corporate name, but with no other differentiating factors) we must give Canaccord Genuity props on its service responsiveness. With a turnaround time of 10 hours, it pales in comparison to Questrade, but provides a far better first impression than the 75 hours at BMO InvestorLine, 96 hours at Scotia iTRADE and 108 hours at CIBC Investor’s Edge. (See our brokerage comparison table for each firm’s response times.)
For decades, Canadians turned to mutual funds for diversification. As regulations changed and fees became more transparent, exchange-traded funds (ETFs) became the security of choice. Like mutual funds, an ETF is a basket of investments, but one that tracks an entire market instead of relying on fund managers to select the assets they think will perform well. As a result, the fund management fees (called a management expense ratio, or MER) for ETFs are much lower than for mutual funds.
Now, with several online brokers offering no-fee ETF purchases and/or trades, ETF investing is even more popular. The difficult part, of course, is choosing the right ETFs for your needs, since they range from broad index ETFs, tracking a market index such as the S&P 500; to more recent pandemic-recovery themed ETFs, which group together assets expected to perform well during the COVID-19 recovery, including airlines, cruise lines, resorts and gaming companies. (For a comprehensive guide to choosing ETFs, check out MoneySense’s Best ETFs in Canada.)
For this category ranking, we looked at the overall experience of investing in an ETF, including the availability of commission-free products, research (such as screeners and market information) that can help investors make decisions and the general experience of placing a trade through any digital platform.
1. National Bank Direct Brokerage
National Bank Direct Brokerage, which placed second in the category last year, is this year’s most competitive firm for ETFs. It offers no-commission buying and selling on all available North American ETFs (with minor trading restrictions, including a minimum amount of 100 shares, placing non-phone trades, and subscribing to electronic statements). The drawbacks are its research tools and general trading experience.
Qtrade Direct Investing* was awarded to be the best online self-directed brokerage experience by Surviscor. The firm not only provides investors with a complete analysis of the ETF market so they can make more informed decisions, but also offers free purchases, sales on a list of 100 ETFs, and you can instantly access the account once you create it (which used to take up to three days).
Learn more about Qtrade Direct Investing* >
If we talk about ETFs, then we must also talk about stocks, which represent the core of self-directed investing. One could argue that our whole report is geared toward stock investing, but this new category will narrow in on the stock investing process, just as we’ve done with ETFs.
For this category ranking, we looked at the overall experience of investing in a stock, including the availability of marketplaces, research (such as screeners and market information) that can help investors make decisions, and the general experience of placing a trade through any digital platform.
1. TD Direct Investing
TD Direct Investing is the inaugural winner in this new category, as it provides investors with a wide array of market analytic components used for evaluating the current, past, and future values of a stock. In addition, it also provides important supporting research, analyst views and a clean trading process for all levels of DIY investors.
2. National Bank Direct Brokerage
National Bank Direct Brokerage is the runner-up for stock investing, thanks to its strong fundamental and technical information, competitive commissions, and its ability to provide a seamless process and access to information regardless of the digital platform in play.
What does self-directed, do-it-yourself investing really mean? Choosing your own investments, of course, but also conducting research so you can make informed investment decisions. As mentioned in the introduction, time and knowledge have been the traditional roadblocks to DIY investing, so this new category is designed to demonstrate which firms support a client’s journey through investor education.
For this ranking, we highlight areas where a firm is providing educational guidance to both potential and existing customers through all its digital platforms. The areas of support include instructional and educational videos on platform usage or general investing subjects, seminars, webinars and articles.
1. TD Direct Investing
TD Direct Investing is the inaugural winner for financial literacy, as it provides both seasoned and beginner investors with a large variety of educational materials on markets and products, as well as interactive help sections to educate DIY investors.
2. RBC Direct Investing
RBC Direct Investing is the runner-up in the financial literacy category, piggybacking on the strength of RBC Royal Bank to provide digital users with an abundance of educational material that supports the customer journey.
User experience, also referred to as UX, covers a broad range of factors that influence how it feels for investors to use an online brokerage service. This includes website/app design, customization features, account information, account management, navigation, notifications, and placement of trade orders.
We’ve found that independent firms, which have more autonomy in building and designing their sites, are typically leaders when it comes to UX. Bank-owned firms, on the other hand, tend to overlook the fact that paying a bill and placing a trade are quite different experiences. Moreover, their newest designs seem to be less intuitive and more directed at driving cross-sales, instead of improving overall account management, trading experiences and educational content for DIY investors.
1. Questrade*
Questrade, this year’s top firm for UX, has an intuitive online platform and corresponding mobile experience with industry-leading customization features and functionality. This means investors can tailor their experience to their personal preferences. Questrade is also a leader for transactional experiences, making it easy for investors to buy and trade equities, ETFs and options.
Despite an older design, Qtrade Direct Investing* is a UX leader given its breadth of data, which is both easy to locate and to use. The firm also offers strong trading experiences, easy-to-find usage policies and exceptionally good account management tools such as its portfolio analytics lineup: Portfolio Score, Portfolio Simulator, and Portfolio Creator.
Learn more about Qtrade Direct Investing* >Back to categories
We are often asked why we place so much value on market data in our assessments of online brokers. The answer is simple: for DIY investors, everything starts with a quote. When an investor decides it’s time to buy or sell a security, its price determines the trade contract. In addition, understanding the price patterns and surrounding factors of a price quote are even more important.
Our evaluation considers the overall experience of obtaining relevant market information, which includes the depth of a quote, general market information, analyst views, supporting charts, industry research as well as both fundamental and technical analysis through any digital platform.
1. TD Direct Investing
Market data has always been a strength at TD Direct Investing, as far back as the 1980s when it forged the path in Canada’s discount brokerage industry as TD GreenLine. Today, an investor can expect superior depth of information for quotes, charting and technical analysis, research, and industry-leading market notifications or alerting. The availability of market data for both individual securities and overall market analysis again makes TD our top choice in this category.
2. National Bank Direct Brokerage
Our market data runner-up, National Bank Direct Brokerage, provides investors with strong quote depth and fundamental stock information along with interactive charting, technical analysis, and equity research. Plus, for a nominal cost, investors can choose to use Market Q for an even more dynamic market data experience.
We love the saying, “You never get a second chance to make a first impression.” Truth be told, it’s a sentiment we have used annually to identify how well online brokerage firms introduce their offerings. This year, we decided to instead narrow in on how easy it is to become a customer, and to expand into more accounts.
In other words, this revised category focuses on the process that online brokerage firms call onboarding. We did not discriminate between becoming a new customer or broadening an existing relationship, and we even looked at all the avenues and digital platforms available to a DIY investor to complete the process. What did we learn? That not all firms are alike—which should really come as no surprise.
1. Questrade*
Questrade is the inaugural winner in our new customer onboarding category, as it offers both potential and existing customers a clear, streamlined, and supported account opening process regardless of device preference. The main drawback with Questrade is that there are a lot of choices to make due to the availability of many different account structures. The good news is that an initial choice can always be altered.
Qtrade Direct Investing* is a close second when it comes to customer onboarding. Like Questrade, the process is clear and quick, and is supported to maximize the experience. An example of this is Qtrade offering its customers a full analysis of the ETF market, this gives investors the ability to make accurate investment decisions. Plus, the account is active immediately after it’s been created (the process previously took three days). The onboarding process, however, comes up short when an investor uses a mobile device.
A note-worthy perk: When new and existing clients open a new Qtrade account and deposit/transfer at least $5,000 in assets (by March, 2022), they can earn up to $5,000 cash back.
Learn more about Qtrade Direct Investing* >
Each year we say the same thing: The Canadian discount brokerage industry was late to the financial services mobile party, and it still lags both its Canadian banking counterparts and discount brokerage firms south of the border.
With the current sophistication of mobile devices, investors expect to have the same experience on their phones as they would on a desktop or laptop. The days of satisfying mobile users with access to quotes, basic account information and trades are over. Some progressive online brokers do have a near-full account experience via mobile, offering all the same tools and analysis investors would find on their computers. But, in general, most Canadian firms are far from that level.
1. Questrade*
The seamless integration between its online and mobile platforms makes Questrade* last year’s category winner, our top choice again for mobile experience. This platform integration makes the service as robust on a smartphone as it is on a desktop, providing the transactional, account and market data tools and experiences that are issing from most firms’ mobile offerings.
2. National Bank Direct Brokerage
National Bank Direct Brokerage is our mobile experience runner-up with a new fresh and crisp design that allows for a seamless transition from online to mobile, coupled with in-depth market data and account information. The platform has room for improvement and will evolve but the new design is a great first step.
Online brokers allow self-directed investors to pick, buy and trade assets such as stocks, bonds and exchange traded funds (ETFs) on their own, without the guidance or assistance of an advisor or trading agent. Because online brokerages cut out the middleman, the trading fees do not have to account for a professional’s commission, so you save the difference. This significant cost savings is the reason why online brokers are also known as discount brokers.
While all Canada’s dozen or so legitimate online brokers provide roughly the same basic DIY investing and trading services, the platforms, fees, and access to investing information can differ.
For everyday investors in Canada, the low (and sometimes $0) fees charged by online brokers have been a boon. Scroll down this tableto see the commissions and fees charged by all 15 Canadian online brokerages.
So, you may be wondering how online brokers make enough money to stay in business. As this article in Bloomberg Businessweek notes, “Brokerages can make money from simply lending out the cash you aren’t using. And once you sign up for free trades, they have a chance to sell you other services.” Other costs, such as foreign exchange fees, help to ensure that online brokerages stay profitable.
No doubt, $0 commissions are attractive. Who doesn’t want free transactions? But before you rush to move your money to a no-commission firm, ask yourself: “Why is this firm, which is clearly in the marketplace to make money, willing to absorb all of my costs?” After all, even a not-for-profit business still has operating costs to cover, including wages, systems upkeep and general operations.
Simply put, if there are no commission charges, then the brokerage is earning fees elsewhere. Perhaps it’s through inflated foreign exchange rates, limited or delayed market data, or orderflow partners (where the firm gets paid for each order they send to a partner for processing). Take, for example, U.S. online investing platform Robinhood, which was recently called out for its trade routing and discretionary stock availability while receiving compensation for its order flow (industry talk for earning fees in exchange for directing clients’ orders for execution).
Furthermore, a poor execution price due to delayed market data might make you wish you paid the $5 to $10 commission instead. For example, buying or selling GameStop over the past few months on a platform with delayed pricing (on average 15 minutes delayed) could have meant hundreds of dollars in price changes. Consider the math. Although rare, trading even one share when there was a price movement of $50 in that delayed period would have easily cost more than an average industry commission fee. (And in the case of GameStop there were actually swings of $100 to $200, during periods where investors flew blindly.)
Personally, I understand why a novice investor would consider a zero-commission platform but—and it is a rather larger but—the platform and the cost savings of a few dollars per trade, in my opinion, is not worth the lack of guidance, education and market depth required by a novice or average DIY investor. If anything, an experienced DIY investor is more suited to these missing elements, as they would typically locate key data points from other industry sources.
This is a good time to repeat that all investing comes with risk. Unlike deposits in banks and credit unions, which are protected, up to specified amounts, by the Canada Deposit Insurance Corporation (CDIC) or provincial deposit insurance organizations, there is no coverage for investment losses.
As an example, let’s say you decided to sock away $50,000 in a high-interest savings account at a CDIC-protected bank. In that case, you are guaranteed to get your $50,000 back, even if the bank goes out of business. On the other hand, if you invest $50,000 in various stocks, and the market value of those stocks declines by 15% by the time you need access to that cash, you’ll get only $42,500 (minus any commissions or fees payable to the brokerage you used) when you sell. That is the reality of investing.
Having said that, there is some protection for the property you hold within an online brokerage, including securities you own (such as stocks or ETFs) and cash. The Canadian Investor Protection Fund (CIPF), which was created by the investment industry in 1969, exists to ensure your property is returned to you, at the current market value, should your investment dealer go under.
The scoring methodology and the depth of the analysis makes our review the most comprehensive and investor-relevant study in Canada. We tell it like it is, and do not suggest that only the top firms should be considered.
On that front, you may notice a few new firms in the rankings. We listened and added Wealthsimple Trade, which now has an online platform to complement its basic-at-best mobile launch, and Canaccord Genuity Direct (formerly Jitney Trade), despite its non-differentiating business concept and lack of mobile capabilities. Once again, Interactive Brokers Canada has been left out due to its U.S.-centric platform that is designed more for traders than investors and the fact it does not appear to be fully committed to Canadian clients, as seen through its U.S.-focussed marketing messages; additional details can be found on the Surviscor website.
Our goal is to provide you with the facts to help you make an informed choice of a potential discount brokerage. If you already use an online broker and have noticed a change in the relationship or longer wait times for service, don’t feel sorry for them. Instead, challenge yourself to explore other firms’ offerings, as there are many.
Whether you’re new to self-directed investing or a seasoned veteran, the Best Online Brokers in Canada for 2021 will give you valuable insight into Canada’s ultra-competitive discount brokerage industry, and help you get the most out of DIY investing.
Looking for more information? You can find detailed reviews of each of the 14 firms on the Surviscor website. Simply click on the name of the firm you wish to learn more about.
This list is presented in alphabetical order:
Canaccord Genuity Direct Review
Desjardins Online Brokerage Review
Laurentian Bank Discount Brokerage Review
Surviscor representatives completed a features and functionality questionnaire of nearly 8,000 questions for each firm in the survey, covering both online and mobile platforms, while performing hundreds of typical investor tasks on each individual online platform. They also analyzed the firms’ cost of services over five trade-related investor profiles and reviewed 161 service interactions over a 12-month period ending March 31, 2021.
Each firm was assigned a score based on its ranking within the seven sections of review (5 points for first; 4 for second; 3 for third; 2 for fourth; and 1 for fifth), and the overall score was the sum of the awarded sections.
Glenn LaCoste, president and CEO of Surviscor Group, is considered a leading Canadian spokesperson and analyst in the online and mobile brokerage and banking industries in Canada. He has more than 30 years of experience in financial services and has been actively involved in Canadian financial services ratings and ranking reviews since 2003. LaCoste is often quoted in Canadian financial services articles, and provides professional insight on brokerage and banking as an occasional television guest on the Business News Network (BNN). He has held executive positions at CT Securities and Datek Canada (formerly Ameritrade Canada). After starting his career at TD GreenLine and prior to founding Surviscor in 2006, he served as the primary consultant for Gomez Canada and subsequently Watchfire GomezPro Canada.
If a link has an asterisk (*) at the end of it, that means it's an affiliate link and can sometimes result in a payment to MoneySense (owned by Ratehub Inc.) which helps our website stay free to our users. It's important to note that our editorial content will never be impacted by these links. We are committed to looking at all available products in the market, and where a product ranks in our article or whether or not it's included in the first place is never driven by compensation. For more details read our MoneySense Monetization policy.
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I need to know which online brokers willingly provide hard copy T etc. income tax documents sent through Canada Post at no extra charge to their clients.
March 25th, 2020: I have been a customer of TD Waterhouse for many years but they are currently having extremely serious technical problems with little evidence of any progress on a solution. It’s so serious that customers have had problems with basic account access, order execution and reaching customer service by phone!
Note that TD’s problems have nothing to do with COVID-19 and the current market volatility, it’s there own web access and technical issues. I have personally lost thousands and thousands of dollars because I can’t access my own account! Please do not even consider doing business with this company as you are risking the loss of significant amounts of money.
See the other posts, on various websites, describing TD Waterhouse’s problems…
What a crazy and stupid reviews. you have failed to disclose the interest rate on margin. After I searched in depth, the Interactive broker was the best. Just look at the MARGIN INTEREST RATE. The interest on your margin is 1.87% and other brokerage are minimum 7.9 till 9% with considering prime interest rate is almost 0%. also all of them they ding you for each trade, there goes your profit, Interactive broker charge 0.01 Cent for each share or $1 for 100 shares, others almost $10. there you go, this is the honest opinion. Qtrade, TD, RBC, and BMO are for the kids to play, not for serious investor. I can go on…. regarding other stupid charges that Qtrade and others charge.
What about data? I’ve been with questrade for a decade and I’m fed up with the fact that they do not offer up to the minute data for free and quotes are delayed by 15 min. Each time I place an order I have to open up yahoo finance to get a real time quote. How ridiculous is it that a broker where I am paying commissions wants to charge for data that is FREE though a search engine?
No one ever mentions the ECN fees at Questrade. Cost me $25.70 to sell 4500 units of an etf. I am firing them.
Please take note everyone that these results are from April 2019 despite the misleading title. As the leading contributor to this article I would like full transparency thus this note. We have reached out to MoneySense to resolve the title issue.
anyone knows which broker provides online access to the whole PM & AH trading online. currently i’m with Questrade and i can only trade and hour before the market opens and an hour after it closes. thx.
I was a little surprised that you didn’t include margin loan rates at the various brokers (apart from WealthSimple), in your review. Surely that would be of interest to your readership.
I too have had problems with TD’s web broker since they decided to move to a 2 step verification. For me, it amounts to discrimination as I have a profound hearing loss. The 2 step requires a security code sent to a cell phone. I don’t use a cell phone because I find it hard to hear. A security code sent to my landline is problematic because I can not understand a computer voice and there is no way to have it repeated in a different manner, nor am I able to repeat back to know that it was what I heard. When I try repeatedly to get a representative to help me it only works for a password reset. Then when I log in the next time I go through the same drill even though I have the setting checked off that I only want to have a security check when web broker wants to verify that it is me. Back to square one.
It is hard to give up TD’s data but it isn’t much good if you can’t access your account.
I trade with TD Can Trust, unfortunately ! If I log in too often a robot advises me with an option to get a temporary password via a text message or phone call. I am 92 WITH A HEARING IMAIRMENT and do not understand the robot who answers. if it takes too long then a robot asks me if I forgot my user name o password. I say no and eventually I am informed that my
account is blocked and phone an 800 number to get a new password. This takes up to an hour for a real person to answer. I just got a new password the day before that does NOT work. I have an account to invest with TD, but I spend hours being blocked and NOT being able to trade. I cannot get this blockage uninstalled by a robot so I constantly miss opportunities to invest. This is constant frustration. Any advise anyone ?
Why isn’t Interactive Brokers Canada is not rated ?!? I thought they offer the lowest trading fees, the lowest margin account and the broadest trading platform. Being a global brokerage should also offer longer hours ?
Hello Robert, thank you for your comment. We will keep all suggestion in mind for the future, in the meantime feel free to take a look at our methodology.
Surviscor representatives completed a features and functionality questionnaire of nearly 4,000 questions for each firm in the survey, while performing hundreds of typical investor tasks on each individual online platform. They also analyzed the firms’ cost of services over 10 different investor profiles, and reviewed more than 160 service interactions over a 12-month period ending May 31, 2020.
Each firm was assigned a score based on its ranking within the seven sections of review (5 points for 1st, 4 for 2nd, 3 for 3rd, 2 for 4th and 1 for 5th), and the overall score was the sum of the awarded sections.
As an option trader, I am quite disappointed with CIBC Investors Edge’s online functions for option trading. After over a year’s wait and several delay, they have finally implemented uncovered option trading. But recently it appeared they have cancelled that function. To compound that, reaching an option trader by phone is almost impossible. In addition, for covered call transactions, be aware that their system does not permit a user to write another call option until the following Tuesday. Equity options expire on Saturday and usually you can write a new option again on the following Monday.
I am more concerned about the USD / CAD exchange rates than the trading fee.
Canadian online traders make more money with “criminal” CAD / USD / CAD exchange rates than with trading commissions… and that’s where the investor can easily loose from 3 to 5% of the investment… the trading fee (2X – buying + selling) is mostly less than 1%.
Does anyone have any analyses and exchange rates for these online traders?
Samuel Kavanagh — your July 29, 2020 response at 1:11 pm to Robert Korchinski’s July 27th comment doesn’t answer the question,
Why wasn’t Interactive Brokers Canada included in the survey ?
How many questions, etc those covered were asked is irrelevant.
What was the reason Interactive Brokers Canada wasn’t asked the same questions, etc?
I too would like to know.
Response from the MoneySense editorial team:
Hi Patricia, thank you for your comment. We are reaching out to Surviscor at the moment and will share their rationale when we hear back from them.
Why would Scotia I-trade make this list they are impossible to get in touch with, by phone or emial, over an hour wait time on the phone, and 10 days to respond to an email, there mobile app is not very good wonce you explore other apps, and as with ALL canadian platforms there are fees, why is it free in the USA but not here. Scotias responce is because of the tools and research available while if your not using them why am I still charged 9.99 a trade…
I’ve had nothing but difficulties with Qtrade. From a very lengthy account opening to very long waits on order submission to them actually submitting the orders.
I’ve also had numerous issues that I had to call in for. Multiple times. Promised follow ups don’t happen.
These guys are awful. Ignore this ranking and go with TD or RBC.
I’ve yet to find a good on-line broker.
BMOInvestorline doesn’t provide a statement of capital gain/loss at tax time, which means hours and hours of spreadsheet work for me. Phone staff are miserable.
RBCDirectInvesting staff were great but you can’t buy USD fixed income.
TD Direct Investing wouldn’t let me transfer in my LVMH ADR shares but would take Nestle ADR shares. What’s the diff? Never received an answer… and never received a phone call to alert me to a problem, I had to phone.
Why Interactive Brokers are not mentioned here? Are they not qualified for *online* broker or what?
I guess it may not fit your definition, but how about mentioning Wealthsimple Trade next time. It’s only on mobile, sure, and it lacks certain features. But for smaller accounts, when trading only a few shares at time (when doing weekly contributions in a TFSA like I do, for instance), it can’t be beat on price. I guess if Questrade was deciding to add free ETF sales, that would be a game changer.
When I click on Questrade in the above alphabetical list, I get info on National Bank Brokerage. Please fix the link. Thank you
Thanks for letting us know.
For years, MoneySense has been positive on its review of National Bank Discount Brokerage. As a client of NDB for 3 years, I agree that their call center rarely keeps you waiting. They also do not charge commission on ETFs, but some of their policies* and lack of flexibility in applying them has convinced me is time to transfer out.
(e.g. since 2020 NDB doesn’t allow switches between DSC funds even if the MF company does, they put obstacles to reimbursing transfer in fees and last, look out for some steep transfer out fees if you have an account where the investments are segregated in CAD and USD as the 150$ +tax fee is applied to each account currency).
Thanks for the great article and information.
I registered with TD and although they have some great tools, I found their customer service terrible if you try to reach by telephone. Literally on hold for hours and then they close for the day. After numerous calls, I finally gave up.
I sent a complaint in by email, and it was responded to promptly but with no resolution except an apology.
Trying to get a hold of a human being at TD Web Broker is getting harder by the day. The online interface will not allow you to transfer USD from a cash account to a TFSA USD account but it will allow you to transfer to a CDN account. Another issue is dividends , they are not registering on the day that they are supposed to be in the account , especially one US stock that I own.
There response via electronic mail is pathetically slow and it’s usually of generic in nature. I was on hold on the phone for four hours one day and three the next and never got through. I’ve been with TD since the late 1980s and it has just gotten worse year after year for customer service. I have accounts at Q trade as well and though not perfect at least you can get a hold of someone in a reasonable amount of time.
One dimension that isn’t examined: how large are breakup or withdrawal fees? For example, NBDB charges CAD 50 for _any_ cash withdrawal from a registered account; this is an issue if you have now retired. Should you wish to transfer assets they charge $150 per account _per currency_, so almost any transfer will be a minimum charge of $300 per account and potentially more.
Also a question about jurisdiction. We have some DSC funds (long story) where the fund issuer allows no-charge transfers to another DSC fund. NBDB refused to process the transaction, saying no sale allowed on DSC funds, even though the issuer said it was good. Ontario based brokers have no problem with this… is this a Quebec thing?
It appears that Questrade has a stranglehold on the companies that do the ratings.
I am a long-standing customer with Questrade and my experience is terrible. Notwithstanding the disruptions caused by Covid-19, their Customer Responsiveness does not deserve a “1” on a scale of 1 to 10, where 10 is “As expected”. This has been and continues to be a long-standing issue.
99.97% of the time, the need to contact Questrade is due to a mistake that they made. Resolving a problem is a horrendous, time-consuming process.
So, if Questrade is in the top 3, then in Canada, we have a serious problem.
Perhaps those of us who are having similar experiences with Questrade and other on-line broker services, will ban together and head over to the “Investment Industry Regulatory Organization of Canada (IIROC) (https://www.iiroc.ca/Pages/default.aspx) to make our dissatisfactions known and understood.
Just maybe, if there is enough of us, IIROC will open an investigation and hopefully corrective measures will be taken.
I was surprised that Virtual Brokers was not on this list. The $0 commissions on etfs and penny per share for equity trades is amongst the lowest trading cost out of all the platforms.
I agree with Mike G from December 9, 2020. I’ve been with Virtual Brokers for over 10 years. They have the lowest fees. I get good customer service. Yet, MoneySense never seems to acknowledge them. Maybe, they are to tied up with partnering up with Questrade.
Edit to previous post. ” to ” on 2nd to last line should read ” too “.
Thanks to the editors for having a comments area. I think I learned as much there as the article. Thanks to the comment posters; however, many of the posts level serious criticisms but are short on viable alternatives. As a person who is about to open a trading account my impression is that no broker is perfect and that I should be prepared to encounter challenges and disappointments. I live in Ontario and want to trade specific stocks on the TSE, NYSE, and Nasdaq. At the moment, I think I will start with Questrade. I suppose everyone would agree that starting somewhere is better than not starting at all?
I’m reviewing self-directed brokerage companies as I once again wait a ridiculous amount of time on hold for BMO Investorline to check re status of a request. I’m not able to check the status online. The wait before the pandemic was long enough, however, during the pandemic I’ve had to call in 3 times. The first 2 calls I was on hold for over 1 hour. This call has been over 30 minutes so far – still waiting! Pathetic customer service – which they say in their recorded message they’re trying to rectify – but still no progress on resolving the incredibly long wait times to speak with someone…Just ‘food for thought’ if you’re looking for a self-directed brokerage company.
TD has NO service. Over the last 4 days I have spent at least 8 hours waiting for someone to answer the phone. Do they actually have people working?
I found some of the responses to be silly. Like, why do people think they don’t have to pay CAD/USD conversion fees with their brokerage? Major banks charge the same rates. Imagine what it’s like for Canadians who work in the US. Which brokers offer hard copy of tax forms? Well, they’re discount brokerages and will offer them online by default. Did the customer ask for them? Let’s see, what else, whining about margin interest rates? Did the person expect them to be as low as a HELOC? Why do people think that there shouldn’t be fees in general? We are retail investors. It costs money to handle your money. Banks have billions of dollars to invest at all times. Complaining about below average service over the phone? These are DISCOUNT BROKERAGES. Want better service? Switch to a full service brokerage, and pay higher fees.
A category on best online brokers that accept in coin transfer of tfsa and rrsp would have been appreciated.
I have been a platinum client with BMO Investor Line for some time. I hope that your next review will reflect the conundrum and chaos respecting their customer support or lack thereof. Traders stories coming out of BMO in the past year are terrifying. I am starting to migrate my services elsewhere slowly.
I will not recommend BMO to anyone. They are way over their heads and cannot support the platform so much so that every now and again clients get general emails apologizing for the chaos and their recorded message while being placed on hold, is a lame vm by the president of Investor Line apologizing and explaining them being unable to provide support. Absolutely shameful.
I opened a QuestTrade account last year, based on the strength of the reviews from this and other sites. Big mistake; their website is the worst. You execute a trade and your mobile version will show the trade as complete but the desktop version might not show the trade for days. Even it did, it won’t show the value of the trade including the commission so you are left in the dark trying to figure out what you paid. If you want research, simple answer, there isn’t any. Pay up for a full service broker, skip the crappy discounters.
Stay away from the thieves at National Bank Direct Brokerage. If you set up a DRIP they
a) Keep a portion of the fractional amount after the whole shares and paid for instead of paying it into your account, and
b) Take from 7-11 days to process the drip after the dividend has been received.
I have complained to them about both practices and they don’t care.
Stay away from the thieves at National Bank Direct Brokerage. If you set up a DRIP they
a) Keep a portion of the fractional amount after the whole shares are paid for instead of paying it into your account, and
b) Take from 7-11 days to process the drip after the dividend has been received.
I have complained to them about both practices and they don’t care.
I have accounts with both TD Direct and Questrade. On the administrative side, both have serious and numerous problems. But, how you can rate Questrade’s customer service Number One is a mystery. There used to be hundreds of negative Google review on Questrade, many of them related to customer service. Take a look – Questrade has removed its Gooogle reviews.
I am quite happy to pay higher fees to use TD Direct. After having an account with Questrade for several years, its only advantage is the ability to buy F series mutual funds.
Am I missing something here? How do you do an all broker comparison using this article?
I deal with iTrade and they took 4 months to answer an email request sent by a “priority” customer to a priority email address regarding a RIF payment change that I couldn’t resolve myself. Non existent phone service also to a priority line waited 3 hours. A letter to the Office of the President got me a canned response that said “Dear (insert customer name)!!!!
Just wondering if you included the hidden fees in your analysis, such as spread?
I have used TD Waterhouse Brokeridge for several years now and I am happy with their online brokerage having experienced very few problems. I joined them on the recommendation of a family member who also hasn’t had many problems either, he did say there was great statistical data and resources available and an easy platform to navigate which is why I should go with it. Around 10 years ago I had an account with Scotia McLeod (at the time), but I noticed throughout the ensuing years their services declined. I’m glad to see that TD Waterhouse has always been in the top three rated brokerage houses out there, caveat – I did have a problem getting through to them several months ago and I found that a bit perturbing but I eventually resolved it through a TD branch as a go between.
Qtrade is awful. Their research reports are always out of date.
I have had very bad customer service experience with TD Direct investing this year. I requested TD to open my RIF and LIF accounts in Septemeber last year and terminate my RRSP accounts as I turned 71 last year. I had no issue with the opening of RIF accounts (CDN and US dollar) and my stocks and cash were transferred correctly. However they completly screwed up with my LIF account. I had to go 8 times to the TD bank to open the same account again and again during the Epidemic period but they failed to activate any of the eight accounts. This phenomenon continued from Dec 2020 to April 2021 while I was on the phone for several hours/day and talked to dozens of supervisors and agents over the phones. I lost over 45K for not able to do any trade and sell some stocks ontime. Even now, although LIF account is active for trading but it has all incorrect information regarding the minmium payment and schedule information. I am totally exhausted getting it right. Complaints to the highest level fell on the deaf years.
I’m a small investor with Modern Advisor app (Credential) and am happy with them. Did they make the list at all??
Should discount brokerages be asking potential clients for their banking account username and password? Is this standard procedure and how risky is it? Thanks.
Due to the large volume of comments we receive, we regret that we are unable to respond directly to each one. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with a qualified advisor.
Questrade’s 4.95 and free ETF trading is a sham, as they add on a per share fee supposedly charged by the exchange. I was charged $30 for a 3000 share trade instead of $9.95 at BMOInvestorline for example.
Secondly, they provide horrendous feedback when applications have issues. They don’t explain where the problem is, just that there is a problem. Corporate applications are worse. You upload documents their staff don’t look at.
Transfers between brokerages are even worse. In the US, there is an electronic method and transfers can take place in a few days. Here it takes weeks. This isn’t Questrade’s fault but a systemic problem, just saying.
There are two important categories that are missing from your list.
2-factor authentication Considering the fact that you entrust these companies with the entirety of your life savings you want to be sure they protect their interface with a solid system. Most banks only offer SMS 2FA which is incredibly insecure.
The other important factor is a read-only API that allows you to integrate with services like Mint or Wealthica without sharing your login credentials. I know that Questrade and Wealthsimple offers this.
I am surprised that Questrade scores so highly. I switched most of my accounts from Q-trade to Questradem and I’m sorry that I did. Qtrade’s research and reports are far superior. For example, Questrade does not provide a summary by account of individual stocks showing profit and loss by dollar value and percentage. I am looking to find another broker.
I’m surprised Questrade is so high. Their app is one of the worst I have ever seen. Constantly having to sign in the moment I put my phone to sleep and try to use it a few minutes later and often it would just hang and be stuck/frozen. I’m in the process of moving everything over to NBDB as the commission free is a game changer plus I get to hold US dollars.
I believe in Canada, Interactive Brokers is by far the best broker.
I don’t see how it’s “US centric”. Laughable. I trade mostly Canadian stocks. The benefits on IB are enormous. When you want to trade US stocks, that’s where IB really pulls away from the pack. Not only are the commissions the lowest (there is no such thing as free commissions, you will pay some other way, google it) but you could actually convert USD for spot and withdraw USD. Try converting CAD to USD with another broker and get fleeced by about 1%.
Also, with IB, you will never have to do your cap gains calculations ever again. IB does it for you in their T5008.
TD Direct is okay, but the commissions are too high. They don’t calculate your cap gains for you.
I tried Questrade, but there is a problem with their platform. On two occasions the system wouldn’t let me make a trade and had it wait to talk to a rep, which is usually a long time. The second time was the last straw.
Their $0 etf commission is a lie. You have to pay ECN fees.
^Forgot to add, IB also has 24/7 phone support.
BMO Investorline TFSA making it hard to withdraw my money!
These reviews would do well to explore how easy it is to get your money _out_ of the account. I’ve been w/ BMO Investorline for a number of years. But have no BMO bank accounts. Getting money into my TFSA is as easy as setting up a bill payment with my bank and sending the money over. Easy peasy.
Getting it out? Not online. Because it’s a TFSA and because I don’t have a BMO bank account, the _only_ option is to PHONE (ugh – hello wait times, translation errors, transcription errors) and ask for a paper cheque (! what era are we living in?) to be mailed by regular post (! no red flags there) and just for icing on the cake – a $10 plus GST service charge for the privilege.
If I could access the cheque requisition screen myself, and if the default was some kind of traceable courier, the $10 fee might be tolerable.
But why they cannot setup the ability to do a bank transfer from the cash account is beyond me.
Questrade has been nothing but a lousy experience & the account is NOT a small account. They offer chat that is hopeless & usually too busy, you can never get through on the phone & your email communications get the rote response that it was received & then you are ghosted. After a year I’m still trying to get a small balance they left on an old RRSP when they moved all funds to the required RRIF.
Their several web-site changes have made it more & more difficult to find performance & just basic information regarding your portfolio.
Questtrade? Guys are you kidding me. They are literally the WORST for customer service. I have been in the financial industry myself with 5 different companies for over 20 years. And doing something simple like uploading an RESP withdrawal request and getting it processed correctly is almost as tough as Elon Musk building a starship to go to Mars with. If they are an ‘industry leader’ in customer service we are all in a huge heap of trouble. Don’t even get me started on the failed messages every time I try to get a PAC done.