Online brokerage reviews 2014 canada
A discount brokerage is a business, registered as an investment dealer,  that allow investors to buy and sell securities online.
Discount brokerages, also called online brokerstypically offer both registered accounts and non-registered accounts. The types of products that can be purchased in these accounts include exchange-traded fundsstocksbondsGICsmutual fundsand others.
Therefore, discount brokerage accounts are suitable locations to build investment portfolios for retirement or educational purposes. Discount brokerages usually allow their clients to trade for their own account with little or no action with a live broker. In addition some brokers offer no-commission trades to their clients that hold a balance greater than a specific amount with them.
Typically, discount brokers provide advanced electronic trading platforms which may be appealing to frequent and active traders but may deter some novice investors.
Discount brokers charge comparatively low online brokerage reviews 2014 canada but typically do not provide financial advice or guidance and provide instead a service aimed at self-directed investors. This article first compares discount brokerages to traditional full service online brokerage reviews 2014 canada. Then the types of products offered by discount brokers are listed.
Criteria useful to select a discount broker that suits your needs are given. Finally the article discusses the issues of dual currency support Canadian versus US dollars and what happens to your account if a broker goes bankrupt. Discount brokers charge clients significantly lower fees than a traditional full service brokerage firm but without providing investment advice. Before the advent of discount brokers it used to be that only the wealthy online brokerage reviews 2014 canada afford a broker and access to the stock market.
However the development of internet and electronic trading helped to develop discount brokers, which allow investors to trade for much smaller fees. Traditional brokers in contrast will often provide financial advice and investment planning as well as related wealth management services.
When comparing discount brokers, commissions used to be the number online brokerage reviews 2014 canada differentiator between online brokerage reviews 2014 canada brokerage firms. When choosing a discount broker, you should also check their fee schedule to determine if there are annual fees associated with various accounts typically registered accounts online brokerage reviews 2014 canada transfer and withdrawal fees.
The discount brokers website will typically have a fee schedule available. The total value of assets generally is based on all accounts that have the same mailing address. Because the commissions and annual fees have come down, recent broker reviews emphasize other selection criteria such as the ease of opening an account, ease of navigation, customer service, account reporting, market data and research, innovation, etc.
Depending on which criteria an investor emphasizes, different brokers will be favored. Canadian investors can purchase securities on Canadian exchanges and US exchanges.
When purchasing and holding securities trading on US exchanges, an important consideration is whether the discount brokerage supports both Canadian dollar accounts and US dollar accounts.
The level of support varies between the different discount brokerages. Over the years on Financial Wisdom Forum there have been a significant number of discussions about various aspects of discount brokerages. You might find it helpful to review some of these topics please note that there has been some minor editing of the topic titles. A series of YouTube videos from Justin Bender for those who have never used a discount brokerage account:.
Chequing account Savings account High-interest savings account. Credit card Line of credit Mortgage. Cash account Margin account. Low cost investing Mutual fund account Discount brokerage Full service brokerage Bank based Wealth manager Robo-advisor. Retrieved from " http: Pages containing links to subscription-only content Articles to be expanded.
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This section requires expansion. Non-registered accounts Cash account Margin account.
Choosing the best online brokerage can be like finding a needle in a haystack. There are many to choose from — hundreds, if not thousands. If you are new to investing in the stock market or want to move to a different online broker this can be overwhelming.
I get asked on a regular basis who is the best when it comes to online brokerages. My answer is almost always the same — what are you looking for and what are your needs?
The answer to those questions will help narrow down what brokers to online brokerage reviews 2014 canada. The first is for the traditional brokerages where you do it yourself. The second section is for robo-advisors, those that help manage your investments. Some of the links below are affiliate links. If you choose to open an account the site will receive a small commission as compensation.
This will not affect your pricing or anything else. Thank you for your support of the site. Overwhelmed by which is the best online brokerage to choose? Click here online brokerage reviews 2014 canada contact me.
Are you a DIY investor? Do you like to manage your own investments without oversight from someone else? A traditional online broker is for you. Here are some of the best traditional online brokerages.
Many know them for online brokerage reviews 2014 canada talking baby commercials that have been running on TV for the last several years. Behind the clever ads is a solid online brokerage to house your investments. Thanks to their merger with Zecco in they now offer Forex trading. In addition to that, they have added social media and forums to their site, which offers considerable real time support from their representatives as well as other real time traders.
If you consider yourself a buy online brokerage reviews 2014 canada hold kind of investor, then TradeStation is likely not going to be for you due to the steep learning curve required to use their platform. TradeStation has been in business for more than 30 years and is regularly recognized as having the best online platform for frequent traders and platform technology. Vanguard is the preeminent online brokerage. Why is Vanguard so well regarded? They hate fees and they have a long-term view to investing.
The two ideals, together, are vital to have when you invest. Vanguard specializes in low-cost index funds, which helps you keep pace with the stock market — not chase gains. This may not be sexy or online brokerage reviews 2014 canada, though investing in the stock market should be neither. Admittedly, Vanguard is not for everyone. Check out my Vanguard review to learn more about what they have to offer.
Do you want a hands off approach to investing? Robo-advisors offer such service, for a fraction of the cost of a traditional financial advisor. Here are some of the best automated retirement programs. If you consider yourself a beginner investor who either lacks the time or desire to manage your investments, but know you need to start investing, then Betterment might be a good option for you.
Betterment allows you to set up a direct transfer from your bank account, in the frequency of your choosing, and then lets you decide how to invest your money. They handle the rebalancing; they handle the management. They have very minimal fees to manage the investment for you and as a result take care of all the heavy lifting related to investing so you online brokerage reviews 2014 canada do other things. Blooom online brokerage reviews 2014 canada on your k plan and nothing else.
The best part is Blooom offers this for online brokerage reviews 2014 canada. What I like about Personal Capital is their ability to make life simpler to manage. You see, Personal Capital is like Mint with a twist of investing thrown in for good measure. This allows you to view all of your financial accounts in one location. You choose which accounts online brokerage reviews 2014 canada link, and I use mine strictly for my investments.
Since I invest with multiple brokerages this makes managing them much simpler. Personal Capital has a great tool, which analyzes investment expenses, as well as a k analyzer. Wealthsimple works much like Betterment. Wealthsimple began in Canada and is now in the States offering an investment solution for investors. If you consider yourself online brokerage reviews 2014 canada beginner investor who either lacks the time or desire to manage your investments, but know you need to start investing, then Wealthsimple may be a good fit for you.
Wealthsimple likes to make investing as simple as possible. Wealthsimple provides a wide array of accounts, from taxable to retirement and Trusts. They also offer a free portfolio review of any accounts you transfer in, as well as for external accounts. If you like to make your investments socially responsible, Wealthsimple is the leader in the space for Socially Responsible Investing. Check out our Wealthsimple review to see how they can help with your investing needs.
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Written by Jin Won Choi on Aug. Last update on July 27, Man using trading terminal from Shutterstock. Unfortunately, answering this question can be complicated because each broker has his or her own unique way of charging fees. Online brokerage reviews 2014 canada means that different brokers will cost more depending on how the individual uses the account. In particular, I will look into three popular Canadian brokers - QuestradeInteractive Brokersand Virtual Brokers - to see which one of the three would end up being the least expensive, taking earnings into consideration.
Before we go on, I must disclose that I receive affiliate income from Questrade. The following list spells out the exact assumptions I used in my analysis. Note that Virtual Brokers has different commissions structures, so I chose to use the "Classic" commission structure for comparison. Out of the three brokers, trading stocks cost the most with Virtual Brokers. This wasn't the case up until recently, when they used to charge just 1 cent per share for each trade.
However, they have since changed commission structures online brokerage reviews 2014 canada court more active traders. Questrade's trading costs are half that of Virtual Brokers. That means a trade would only cost 1 cent per share if you buy between and shares. The biggest drawback of Interactive Brokers is their inactivity fee. If you pay less than 10 USD in trading fees each month, they will charge the remainder as an inactivity fee.
Furthermore, they will charge this amount per account. Lastly, whereas it costs nothing to register an RSP account with either Questrade or Interactive Brokers, it can cost substantially more if you want to hold U.
While an RSP account that can only hold Canadian dollar investments costs nothing, an account that can hold U. Under Virtual Broker's old commission structure, determining which broker was cheapest wasn't so straightforward.
But with the commissions changes, I believe Questrade is currently the cheapest out of all the major discount brokerage firms that offer registered online brokerage reviews 2014 canada. Broker Interactive Questrade Virtual. If you enjoyed this article, you might be interested in our free newsletter.
Enter your email to get free updates. Choi is the founder of MoneyGeek. He has a PhD in financial mathematics, and he worked at a top performing fund for 2 years. Virtual Brokers Questrade vs. This article has been updated to reflect prices as of July 27, Has 2 registered savings accounts RSPs. This fits the description of someone who makes a monthly contribution to buy one ETF a month. I will also assume that each trade i. Will purchase stocks 4 times a year and sell stocks once a year.
I will also assume that each online brokerage reviews 2014 canada consists of shares. A Canadian who wants to buy U. Which One Should You Choose? Broker Interactive Questrade Virtual Short url: Choi's commentary on current financial events All this is available for free.
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