Discount brokerage accounts canada
This article first compares discount brokerages to traditional full service brokers. 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 could 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 one differentiator between online 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 and 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:.
Additional Canadian brokerage firms not mentioned as well as all Canadian banking firms can be found by clicking: Top Pick and Honourable Mention: Questrade and TD Direct Investing.
Questrade and Qtrade Investor. Top Picks and Honourable Mentions: Qtrade Investor and Desjardins Online Brokerage. Top Picks and Honourable Mention: This is where the overview would appear. This is where the latest ranking report would appear. The main categories are: Qtrade Investor Honourable Mention: