The world of online discount brokerage services has blown up. Anyone with a little extra cash can now open an account with one of these discount brokers, and easily start investing money whenever and wherever they want to. It’s an amazing thing, but something that should be done with some consideration for what the right discount brokerage service is for you before you just dive right in. We are exploring below pros and cons of different discount brokers, explaining why Questrade, according to our own research and the Questrade Review, might be the best choice for Canadians.
The Road to a Discount Broker
You’ve finally made it. You’ve gotten out of the house, you have your own place with your own car, and you landed a pretty good job that pays you enough that you can put money aside now. You’ve never been able to do that before. All your bills are paid, you can go out and do things and save money all at the same time. So, you’re starting to think about your future more and how you can make more money so that you’ll have a good amount of savings stocked away for emergencies and retirement.
Investing your money into financial options that have earning potential is a good avenue for you to capitalize on your new-found income situation. You still aren’t wealthy or anything like that, but you could be better off if you look into opening a discount brokerage account so you can start investing your extra money.
Comparing Discount Brokers in Canada
When you start looking for a discount broker you need to know what to look at for consideration. There are a number of things you should look into. One of them is the annual registration fee. This is the fee that it will cost you to get involved with the service and maintain your account. It’s basically what you’re going to pay just to sign up for an account. Not all of the discount brokers charge a registration fee for certain kinds of accounts, so if you want to look for one that’s free you can.
Staying on the topic of fees, there are fees for trade transactions. The fees for cost per trade can vary across different brokerage platforms. Definitely compare these fees when you’re looking into which broker to go with.
Trading platforms are important to know about too. You don’t want to be trying to use a broker who’s trading platform is known for being complicated and hard to use if you’re new to the world of investing. You should look for a discount broker that offers lots of helpful and educational resources on its website. This is your hard-earned money we’re talking about right now, so you want to find a broker that gives you all the help you can get, without costing you half of the money you’ve saved to get it.
Who’s the Best Discount Broker in Canada?
Overall, the Questrade review is usually the most impressive. Questrade is more satisfying on more levels to more people than any other discount broker in Canada. They consistently get high scores for lower fees, ease-of-use, mobile accessibility and ETF investing. If you don’t want to spend a lot of time researching all of the different discount brokers you can choose from, then go with Questrade because it’s a crowd-pleaser.
Is There a Runner-Up?
Runner-up may not be the best descriptor for this next option. Qtrade is more of an on-par adversary for Questrade. These two run neck-and-neck, rather than front-to-back. Qtrade ranks very high for customer service. There is also no minimum for maintaining your account. With Questrade, the minimum is $1,000. Just like Questrade, there isn’t an annual fee, but only on accounts under $25,000. With Questrade, there’s never an annual fee. The trading fees are sometimes more than Questrades, but not in all trade transactions.
Some Other Good Discount Brokers
Virtual Brokers is another good option to check out. A quick picture of this company shows that the annual fees are just like those of Qtrade’s. ETF transactions are free just like Questrade’s. Basic trading fees are pretty high, but still lower than if you went with a full-service broker. There’s no account minimum to maintain either.
TD Direct Investing also has the same annual fee setup as Qtrade and Virtual Brokers. The trading fee is at the same level as Virtual Brokers, so higher than the other two. ETF transactions are not free with TD Direct. And you don’t have to maintain an account minimum with this one either.
Make the Most of Your Money
Looking for the right discount broker is important so make sure you do your research. You want to get a good service, but you don’t want to have to pay buckets of money for it. There are some really good discount brokerage services out there. Choose the one that fits the best for you.