5 Best Free Trading Platforms in Canada For 2024
When you factor in your investment risks in the ever-inflated Canadian market, you will realize the benefits of avoiding trading fees.
Common trading fees in the Canadian trading platforms include commissions on buying and selling securities and currency conversion fees for foreign trades.
Even though complicated situations may warrant paying trading fees, you can do without fees in most cases especially if you’ve sufficient investment knowledge.
The good news is that there are several free trading platforms to choose from in Canada. Here I discuss everything you need to know about some of the best options with tips on how to narrow your selection.
Let’s go there!
The Best Free Trading Platforms in Canada: Overview
The following is an overview of the best free trading platforms in Canada with their varying features.
| Profile | Wealthsimple Trade | National Bank Direct Brokerage | Qtrade Direct Investing | TD Easy Trade | Desjardins Online Brokerage |
| Monthly/annual fee | $0 to $10/monthly | $100/annually | $25 quarterly administrative fee | None | None |
| Securities | ETFs, stocks, and cryptocurrencies | Stocks, ETFs, options, debentures and bonds, | ETFs, stocks, bonds, mutual funds, GICs, options, IPOs, and secondary/treasury offerings | Stocks, ETFs and ADRs | Equities, ETFs, bonds & other fixed income instruments, options, new issues, mutual funds, structured notes and treasury bills & money market products |
| Commission-free trading securities | Stocks and ETFs | Stocks, ETFs, debentures, and options | 100+ ETFs | Unlimited commission-free on TD ETFs and 50 commission-free stock trading per year | Equities, ETFs and selected mutual funds |
| Trading accounts | Personal accounts, RRSP, TFSA, FHSA, RRIF, and LIRA | TFSA, FHSA, RRSP, RESP, GICs, and non-registered accounts. | TFSA, FHSA, RSP, LIRA, RESP, RRIF, LIF, cash and margin | TFSA, RRSP, and cash | Cash, margin, short-selling, RRSP, RRIF, TFSA, RESP, LIF, LIRA |
| Minimum balance | None | None | None | None | $1,000 (initial deposit) |
| Trial account | N/A | N/A | Yes | N/A | N/A |
| Trading platform | Web browser and mobile app | Web browser | Web browser and mobile app | Web browser and mobile app | Web browser and mobile app |
| CIPF coverage | Yes | Yes | Yes | – | Yes |
Let’s now take a detailed view of each of the above free trading platforms in Canada.
5 Best Free Trading Platforms in Canada
There are dozens of discount trading platforms or brokerages in Canada. While some of them offer full commission-free trading on selected securities, others offer partial access.
In this compilation, I discuss only trading platforms that offer complete free trading access on selected securities. This means that popular trading platforms like Questrade are excluded.
That being said, here I present to you the 5 best free trading platforms in Canada.
1. Wealthsimple Trade
Wealthsimple Trade is arguably the overall best free trading platform in Canada given its commission waiver on stocks and ETFs.
Launched by Wealthsimple in 2019, Wealthsimple Trade operates as a self-directed brokerage with no minimum investment balance requirements.
The brokerage allows you to trade Canadian and US stocks and ETFs without any commission. It has two plans – Wealthsimple Basic and Wealthsimple Plus plans.
The basic plan allows you to invest commission-free with no monthly fees. However, it charges a 1.5% foreign currency conversion fee.
With the Wealthsimple Plus plan, you will be able to trade commission-free without a foreign currency conversion fee through a USD account. However, this plan charges $10 per month.
And if you can’t afford to purchase the full share of stock, Wealthsimple Trade allows you to invest within your budget by purchasing a fractional share.
Unlike most stock trading platforms in Canada, Wealthsimple Trade allows you to trade over 60 cryptocurrencies in one dashboard.
Pros
- Commission-free trading: You can trade Canadian and US stocks and ETFs on the brokerage without worrying about commissions.
- No minimum balance: The brokerage doesn’t pressurize you to invest beyond what you can afford to lose.
- Zero currency conversion fee: The 1.5% currency conversion fee charged on the Wealthsimple Basic plan is eliminated on the Wealthsimple Plus plan through a USD account.
- Fractional shares: Invest according to your budget by buying the fractional shares of Canadian and US securities on Wealthsimple Trade.
- Welcome bonus: The brokerage offers a generous welcome bonus of $50 when you trade your initial $150.
Cons
- Limited securities: You can only trade stocks, ETFs and crypto on Wealthsimple Trade at the moment. If you’re looking to invest beyond these securities, you have to look elsewhere.
- Limited tools: Unlike other free trading platforms in Canada, Wealthsimple Trade lacks advanced tools for research, trading, and analysis.
RELATED: Wealthsimple Halal Review
2. National Bank Direct Brokerage
The National Bank Direct Brokerage (NBDB) is currently the overall best online trading platform among Canadian big banks.Â
Owned by National Bank, NBDB joined the league of free trading platforms on August 23, 2021, when it disclosed its zero-commission pricing on all Canadian and US stocks and ETFs.
This makes it a pioneer bank-affiliated Canadian brokerage to offer commission-free trading access in the country.
Besides stocks and ETFs, the brokerage also offers access to commission-free options trading with a $1.25 fee per options contract.
Other securities you can trade on the brokerage include GICs, debentures and bonds. You can trade these securities through RRSP, TFSA, FHSA, RESP and non-registered accounts.
Pros
- Commission-free trading: Enjoy commission-free access to stocks, ETFs and options trading.
- No minimum balance: You can start trading with as little as $1 because the brokerage doesn’t require a minimum balance.
- Multiple securities: You can invest in stocks, ETFs, options, bonds and debentures on NBDB.
- Multiple tools: The brokerage has multiple free research, trading and analysis tools to fine-tune your investment.
- Educational resources: In addition to text materials, the brokerage also hosts training sessions through YouTube to improve your knowledge about the stock market.
- Safety: The fact that the brokerage is owned by the six-largest bank in Canada should give you an optimal sense of safety.
Cons
- Annual administrative fee: This brokerage charges a $100 annual administrative fee which is waivable other certain conditions including, having an InvestCube account, holding a minimum of $20,000 assets, being a young investor or enrolling in any NBDB professional offer.
- No mobile app: Unlike most free trading platforms in Canada, NBDB doesn’t have a mobile app. This limits your trading activities to web browsers.
3. Qtrade Direct Investing
Qtrade Direct Investing is arguably the best free trading platform in Canada with excellent customer support.
The brokerage has been awarded by reputable bodies for its customer service which attracts beginner, intermediate and seasoned traders.
Owned by Aviso Wealth, Qtrade offers free trading access through 100+ ETFs. This will save you the $6.95/$8.75 fee charged on trading other ETFs and stocks.
In addition to trading stocks and ETFs, the brokerage also allows you to trade options, bonds, mutual funds, secondary/treasury offerings, options and IPOs.
Investment accounts on Qtrade include TFSA, FHSA, RRSP, RRIF, LIRA, LRSP, RESP, LIF, cash and margin.Â
With robust research, trading and analysis tools, you can’t go wrong with Qtrade.
Pros
- Commission-free trading: Trading over 100 ETFs without commission will help you save costs.
- Customer support: Excellent customer support is the selling point of Qtrade. This is a critical component of any reliable trading platform for beginner and seasoned traders.
- No minimum balance: There’s no pressure on how much you can keep in your investment account.
- Multiple securities and accounts: With multiple securities and accounts to choose from, Qtrade could be your one-stop shop.
- Robust tools: The brokerage makes investment easier with research, trading and analysis tools including charts, watchlist alerts and real-time quotes.
- Educational resources: You can access free expert-level educational materials on the brokerage to improve your knowledge about the stock market.
- Free trial account: With this account, you can determine if Qtrade is suitable for you through a 30-day trial. While you can’t execute a trade with this account, you will access research tools, analysis tools and other basic features to fine-tune your trading skills.
Cons
- Administrative fee: The brokerage charges a quarterly administrative fee of $25. You can trade commission-free on other brokerages without this fee.
- Account closure fee: To discourage new users from closing their accounts, the brokerage charges a $100 fee for closing an account within the first year of registration. This may force users to keep their accounts active to the detriment of their satisfaction.
- Partial free trading access: Compared to some of the above platforms, Qtrade is a partially free trading platform as it offers only free trading access on 100+ ETFs.
4. TD Easy Trade
Formerly TD GoalAssist, TD Easy Trade is the online brokerage of the Canadian second-largest bank by market capitalization, TD Bank.
The brokerage allows you to trade TD ETFs unlimitedly without commission. In addition, the brokerage allows you to trade 50 stocks for free annually.
When you exhaust your 50 commission-free offer, you will be charged $9.99 per subsequent stock trading.
What I like about the TD Easy Trade brokerage is that it supports trading through Canadian and US dollars. This will help you save from currency conversion fees.
And if you move your investment from another brokerage to TD Easy Trade, the $150 transfer fee will be covered.
Available securities on TD Easy Trade include Canadian and US stocks and ETFs and American Depository Receipts (ADRs).
With no minimum balance and a $0 monthly/annual fee, TD Easy Trade is one of the low-cost trading platforms to consider in Canada.
Pros
- Commission-free trading: Trade TD ETFs unlimitedly without commission. Annually, you can trade up to 50 stocks for free.
- No minimum balance: Trade within your budget without worrying about minimum balance.
- CAD/USD trade: Save from the foreign currency conversion fee by converting your CAD to USD.
- Educational resources: The brokerage has visual educational resources and free Learning Lab classes to help improve your investment knowledge.
- Safety: TD Easy Trade owner, TD Bank, is the second-largest bank in Canada by market capitalization. This will give you the sense of dealing with a reliable broker.
Cons
- Limited securities and accounts: You can only trade stocks, ETFs and ADRs on the brokerage through a personal account, TFSA or RRSP.
5. Desjardins Online Brokerage
The last but not the least free trading platform in Canada on my list is the Desjardins Online Brokerage.
This is the online brokerage division of Desjardins Group, one of North America’s largest federations of credit unions.
Desjardins Online Brokerage, also known as Disnat, prides itself as the first platform to offer discount brokerage services trading in Canada since 1983.
The brokerage allows you to trade equities and ETFs without commission. Most of the mutual funds on the platform don’t also have commissions.
What I like about this brokerage is its comprehensive collection of securities which outweighs most brokerages in Canada. The brokerage allows you to invest in:
- Canadian and US equities
- ETFs
- Bonds & other fixed income instruments
- Options
- New issues
- Mutual funds
- Structured notes
- Treasury bills & money market products
You can invest in these securities through cash, margin, short-selling, RRSP, RRIF, TFSA, RESP, LIF and LIRA accounts.
That said, the Desjardins Online Brokerage has two plans for investors with different investment experiences. The plans are summarized below:
- Beginner/Experienced Investor Plan: This account provides real-time quotes with manual updates. It has a user-friendly modern web platform suitable for beginner and seasoned investors.
- Active Traders Plan: This plan provides real-time streaming quotes and charts with auto updates. The plan has a high-performance trading platform and is ideal for active traders.
Pros
- Commission-free trading: Trading equities and ETFs on the brokerage is unlimitedly commission-free. There are also commission waivers on most mutual funds on the platform.
- Multiple securities and accounts: Desjardins Online Brokerage’s collection of securities and investment accounts are some of the highest in the industry.
- Multiple tools: The brokerage offers access to research, trading and analysis tools to ease your work.
- Educational resources: The brokerage has a wide range of free educational resources including annual training.
Cons
- Initial deposit: Desjardins Online Brokerage requires an initial deposit of $1,000 (CAD) to open an account. This could prevent investors that are not willing or capable to deposit up to such an amount.
How to Choose the Best Free Trading Platform in Canada
From the above review of the best free trading platforms in Canada, you can see how they vary in terms of their key features.
As a result, you may be confused about which to choose given their competitive options.
While you can’t go wrong with any of the above platforms, it’s essential you choose the one that suits your situation.
To help you make an informed decision, consider the following factors when narrowing your selection:
- Commissions on other securities: Depending on the securities the platform waives commissions, you need to consider the applicable commissions on other securities. This is necessary especially if you will be expanding your portfolio in the future.
- Fees: Consider the underlying fees of the platform including currency conversion fee, inactivity fee, monthly/annual fee etc.
- Security and account types: The security and account collections of a brokerage will determine where you can invest your money.
- Customer support: Whether you’re a beginner or a seasoned trader, you may need technical support in the long run. The better the customer support, the more reliable the trading platform will be.
- Tools: Research, trading and analysis tools play a significant role in trading. This should be part of your consideration.
Is Using a Free Trading Platform in Canada Worth It?
Using a free trading platform in Canada is worth it once you choose the perfect platform that suits your needs and situation.
Commissions can easily add up to consume your investment returns in Canada. But with a free trading platform, you can trade without commission thereby maximizing your returns.
However, understanding your situation and needs is critical to choosing any trading platform. If you have a complex situation or little to zero investment experience, you should not rush to a free trading platform.
In such a situation, investing through your financial advisor or a managed investment platform could be more cost-saving. While this will be expensive, it will help you avoid costly mistakes and save costs in the long run.
But if you’ve sufficient knowledge about the stock market and a less complex situation, it’s worth it to use any of the above free trading platforms in Canada.
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The Bottom Line
The bottom line is that you can’t go wrong with any of the above best free trading platforms in Canada once you do your homework well.
Doing your homework means understanding your needs and situations. Based on this consideration, you will determine whether to go with a free trading platform or a paid platform.
However, don’t hesitate to contact your financial advisor if you’re not sure which platform to use. But if you’re sure, kindly let me know the platform you’re going with in the comment section.
That brings us to the end of this review. Please share it with your friends and family who may also be looking for the best free trading platform in Canada.
FAQs on Best Free Trading Platforms in Canada
Is there a free trading platform in Canada?
Sure! Examples of free trading platforms in Canada include Wealthsimple Trade, National Bank Brokerage, Qtrade Direct Investing, TD Easy Trade and Desjardins Online Brokerage.
What is the best free trading platform in Canada?
The overall best free trading platform in Canada is Wealthsimple Trade. Besides offering access to commission-free stocks and ETFs trading, the platform also waives currency conversion fees under its Wealthsimple Plus plan.
Is Wealthsimple Trade free?
Absolutely! Wealthsimple Trade is commission-free when it comes to trading Canadian and US stocks and ETFs.
Have more questions? Kindly drop them in the comment section.
