Why Choosing the Right Discount Brokerage Matters More Than Ever

Canada’s self-directed investing landscape is evolving fast, prompting investors to seek the best online trading platforms that offer exceptional features. Investors today expect low fees, powerful mobile apps, multi-asset access, fast execution, and frictionless account transfers. Brokerages are racing to compete on commissions, FX rates, real-time data, and advanced tools — creating the most investor-friendly environment in Canadian history.

But with more competition comes more confusion.

• Should you choose a zero-commission broker?
• Which platform offers the lowest FX fees?
• Which is best for options traders, ETF builders, or TFSA/RRSP investors?
• And, most importantly, what hidden costs should you avoid?

This definitive 2025 guide answers all of that — and more — giving you the most detailed, up-to-date, and objective comparison of Canada’s top discount brokerages.

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What Is a Discount Brokerage — and Why Do Canadians Use Them?

A discount brokerage is an online platform that lets you buy and sell investments at a fraction of the cost of a traditional financial advisor or full-service broker.

What discount brokerages offer

• Self-directed trading of stocks, ETFs, bonds, mutual funds, and options
• Access to registered accounts (TFSA, RRSP, FHSA, RESP)
• Mobile and desktop trading platforms
• Lower costs due to automation
• Real-time market data and research tools

What they don’t offer

• Personalized financial advice
• Human portfolio management
• In-depth tax planning or retirement strategies

Because costs compound over decades, choosing the right brokerage is often worth tens of thousands of dollars to the average Canadian investor.

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Key Criteria: How to Evaluate a Canadian Online Brokerage in 2025

Selecting the right platform starts with understanding the true costs and real capabilities that matter.

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1. Trading Fees & Commissions

Typical cost ranges:

Fee Type	Typical Range in Canada
Stock trades	$0 to $9.95
ETF trades	Free to $9.95
Options	$0 to $1.50 per contract + base
FX conversion (USD trades)	0.5% to 2.0%
Inactivity fees	$0 to $100/year

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2. FX Conversion Costs (The Silent Portfolio Killer)

FX fees are one of the biggest hidden expenses in Canadian trading.

Trading U.S. stocks through most Big Bank brokers can cost you 1.5–2.0% per conversion — potentially more than commissions themselves.

Low-FX brokers like Questrade or Wealthsimple dramatically reduce this cost, while some platforms allow Norbert’s gambit, the cheapest method of converting CAD to USD.

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3. Platform Quality (Mobile + Desktop)

Evaluate:

• Execution speed
• Charting tools
• Custom indicators
• Watchlists
• Options chains
• Level 2 or real-time data
• Alerts and automation

Active traders should prioritize platform sophistication over raw commissions.

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4. Account Types

A top-tier Canadian brokerage should offer:

• TFSA
• RRSP
• FHSA
• RESP
• Non-registered (cash & margin)
• Corporate accounts (less common)

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5. Customer Support & Reliability

Key considerations:

• Wait times during volatile markets
• Availability of phone, chat, and email support
• Stability during high-volume trading
• Education and onboarding material

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6. Regulatory Protection

All legitimate Canadian discount brokerages should be:

• IIROC-regulated
• Covered by the Canadian Investor Protection Fund (CIPF)

This protects assets up to $1M per account category if the brokerage fails.

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Top Discount Brokerages in Canada (2025 Edition)

A complete, user-focused ranking designed to address every type of investor.

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1. Wealthsimple Trade — Best for Beginners & Zero-Fee Trading

Why it’s #1 for beginner investors

Wealthsimple Trade revolutionized Canadian investing by becoming the first major platform to offer zero-commission stock and ETF trading.

Key Features

• $0 commissions on stocks & ETFs
• Fractional shares (including U.S.)
• Clean, ultra-simple mobile app
• Crypto trading available
• No account minimums
• High-interest cash account integration

Drawbacks

• FX fees are high (1.5% each way) unless you subscribe to Wealthsimple Plus
• Limited research and charting
• No advanced options trading

Best For

• First-time investors
• TFSA/RRSP ETF builders
• Long-term passive portfolios

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2. Questrade — Best Overall for Most Canadians

Questrade remains the most balanced brokerage for Canadian investors, offering powerful tools at competitive pricing.

Key Features

• Low commissions: $4.95–$9.95 per trade
• Free to buy ETFs
• Excellent desktop and mobile platforms
• Advanced options trading
• Lower FX conversion (competitive with big banks)
• Great for Norbert’s Gambit

Drawbacks

• Not zero-commission
• Data packages can add cost
• Platform complexity may challenge beginners

Best For

• Intermediate to advanced investors
• ETF investors seeking free purchases
• Anyone seeking a balance of tools + low fees

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3. Qtrade Direct Investing — Best Customer Service & Research Tools

Frequently rated #1 in customer satisfaction, Qtrade offers the most supportive environment for new and active investors.

Key Features

• $8.75 trades
• Excellent research & screeners
• Clean & intuitive platform
• Fast account approval
• Strong educational material

Drawbacks

• More expensive than Questrade
• No crypto trading
• No fractional shares

Best For

• New investors who want guidance
• Research-heavy long-term investors

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4. TD Direct Investing (WebBroker & Advanced Dashboard)

Best Big Bank Brokerage

TD Direct Investing gives investors the strongest bank-owned combination of stability, convenience, and advanced tools.

Key Features

• Real-time data
• TD Advanced Dashboard for pros
• Strong options tools
• Seamless banking integration
• Large educational library

Drawbacks

• $9.99 trades
• Higher FX fees
• Overkill for beginners

Best For

• Investors who want Big Bank support
• High-net-worth individuals consolidating assets
• Advanced options traders

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5. CIBC Investor’s Edge — Best Big Bank for Low Fees

Investor’s Edge is often overlooked, but its pricing is far better than other banks.

Key Features

• $6.95 stock trades
• $4.95 for active traders
• Excellent for registered accounts
• Smooth banking integration

Drawbacks

• Platform is basic
• Limited advanced tools

Best For

• Investors who want bank-level trust with lower fees
• RRSP/TFSA long-term investors

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6. Scotia iTRADE — Best for Frequent Traders

Key Features

• Powerful flightdesk platform
• Good research & alerts
• Active trader pricing

Drawbacks

• Platform feels dated
• Fees higher unless you trade large volumes

Best For

• Frequent traders
• Scotia banking customers

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7. Interactive Brokers Canada — Best for Advanced Traders

Key Features

• Ultra-low fees
• Multi-currency accounts
• Access to 150+ global markets
• Elite charting & tools
• Lowest FX fees in Canada (near spot rate)

Drawbacks

• Steep learning curve
• Not ideal for beginners
• Limited registered account flexibility

Best For

• Professionals
• High-frequency traders
• Multi-market investing

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Comparison Table: Canada’s Top Discount Brokerages (2025)

Brokerage	Commission	FX Fee	Account Types	Tools	Best For
Wealthsimple	$0	1.5%	TFSA, RRSP, FHSA, Crypto	Basic	Beginners
Questrade	$4.95–$9.95	~1.5%	TFSA, RRSP, Margin, Corporate	Strong	Most investors
Qtrade	$8.75	~1.8%	All major	Research-focused	Long-term investors
TD Direct Investing	$9.99	High	All	Excellent	Big bank users
CIBC IE	$6.95	High	All	Basic	Low-cost bank brokerage
iTRADE	$9.99	Medium-High	All	Good	Frequent traders
Interactive Brokers	Low	~0.01%	Limited registered	Elite	Pros

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Best Brokerages by Investor Type

Best for Beginners

• Wealthsimple Trade

Best Overall

• Questrade

Best for Options Trading

• Interactive Brokers
• TD Direct Investing (Advanced Dashboard)

Best Big Bank Option

• CIBC Investor’s Edge

Best for Zero-Commission Trading

• Wealthsimple

Best for ETF-Only Investors

• Questrade (free ETF purchases)

Best for Active Traders

• Interactive Brokers
• Scotia iTRADE

Best for Research Tools

• Qtrade

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Hidden Fees & Pitfalls Canadians Must Avoid

1. FX Conversion Fees

Even zero-commission brokers can cost you thousands with high FX charges.

Strategies to reduce FX costs:

• Use Norbert’s Gambit
• Choose FX-optimized brokers (Interactive Brokers, Questrade)
• Hold USD in dual-currency accounts

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2. Inactivity Fees

Many brokers charge:

• Annual fees
• Transfer-out fees
• Data package fees

Check these costs before opening an account.

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3. High Mutual Fund MERs

MERs can quietly erode returns more than trading commissions.

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4. Limited Asset Classes

Some platforms don’t offer:

• Options
• Bonds
• International stocks
• Crypto

Match platform capabilities to your strategy.

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How to Open a Brokerage Account in Canada: Step-by-Step

1. Choose Your Brokerage

Consider:

• Strategy
• Fee structure
• Platform complexity
• FX needs
• Registered account support

2. Gather Required Documents

You will need:

• Government ID
• SIN
• Proof of address
• Employment info

3. Choose Account Types

Pick from:

• TFSA
• RRSP
• FHSA
• Non-registered
• Margin

4. Fund Your Account

Most platforms support:

• EFT transfers
• Bill payment
• Bank linked transfers
• Wire transfers

5. Start Trading

• Set up watchlists
• Choose ETFs or stocks
• Enable 2FA
• Review commission + FX rules

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Frequently Asked Questions (FAQs)

1. What is the cheapest brokerage in Canada?

Wealthsimple Trade for commissions; Interactive Brokers for FX & global trading.

2. Which brokerage has the best TFSA?

Questrade provides the best balance of cost + tools.

3. Which platform is safest?

All IIROC-regulated platforms with CIPF protection are safe.

4. Which broker has the lowest FX fees?

Interactive Brokers — nearly spot rate.

5. Which platform is best for beginners?

Wealthsimple Trade.

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Final Verdict: Which Discount Brokerage Should You Choose in 2025?

There is no “one-size-fits-all” brokerage in Canada — the best choice depends on your trading style, long-term goals, and asset preferences.

If you want simplicity:

➡️ Wealthsimple Trade

If you want the best overall platform:

➡️ Questrade

If you want elite global trading:

➡️ Interactive Brokers

If you prefer a Big Bank environment:

➡️ CIBC Investor’s Edge or TD Direct Investing

If you want research depth:

➡️ Qtrade

Regardless of your choice, the most important thing is to select a brokerage that supports your long-term investing strategy while minimizing costs.