Questrade
Questrade
I’ve been using Questrade Inc as my broker since Jan 2009. Of all the stock brokers in Canada, in my opinion, Questrade is the best solution for the trader that has assets less that $100,000. The only other service that comes close in pricing is the CIBC Investors Edge.
Benefits:
- It offers a Tax Free Savings Account (TFSA) that can be managed in US dollars (USD). This eliminates the need to convert from USD to Canadian dollars (CAD) after every trade. You also put in and withdraw funds in USD. This is particularly useful if most of your portfolio is in USD.
- It has a very affordable commission structure with no minimums (see below). As a result, your break even point for most trades are drastically reduced, and if so inclined, day trading becomes easier.
Drawbacks:
- Their online portfolio management platform isn’t the best out there. It is basic and provides you with sufficient information to make trades. However, one click-trading isn’t possible on their basic platform. They do have other platforms for which you pay a premium and/or have minimum purchase requirements.
Cost Structure:
Stocks: 1 cents per share purchased: $4.95 min and $9.95max
Options: $9.95 plus $1 per contract
Why Questrade?
Questrade Inc., Canada’s leading independent brokerage, provides Canadians with high-speed, direct access to the U.S. and Canadian stock and options markets as well as forex trading. Since its inception in 1999, Questrade has demonstrated its competitive leadership with a combination of high client service, the latest trading technology and competitive pricing structures.
Democratic Pricing Plan
With Questrade’s democratic pricing, all stock trades are 1 cent per share, minimum $4.95 / maximum $9.95.
Trading Platforms & Products
Questrade offers a wide range of trading products including stocks, options, foreign currency, and gold bullion, which for the first time in Canada and only available at Questrade, can be held inside registered plans.
Account Insurance
Questrade is a registered member of the Investment Dealers Association of Canada (IDA). All funds held and traded with Questrade are fully insured by the Canadian Investment Protection Fund (CIPF) for up to $1 million CAD in case of insolvency. We also provide additional insurance through our carrying broker, up to a maximum of $9 million CDN per client, per separate account. For a separate brochure on the coverage limits of CIPF click here.