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Welcome to my padlet wall! Here I will be discussing and providing resources regarding Investing in numerous different items. Enjoy my wall!

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Stocks, Bonds, and Mutual Funds - Website 1

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Stocks, Bonds, and Mutual Funds - Website 1

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Here is a great resource for beginners looking to learn more before starting their investing journey.

A stock is part ownership in the company that you buy stock of. As the business succeeds, the stock price will go up, and if the company does not the stock price will decrease. Once you buy a share, the idea is that you will hold it until the stock price goes up, and sell it at a profit. Stocks have more risk as it is not guaranteed that the stock will increase.

A bond is basically a loan you are giving to a corporation or government. You give them money in exchange for a bond that will pay a percentage at a set interval, then once the bond has "matured", or reached its set deadline, you will receive all of your initial investment back. It is a fixed income investment that is very safe, unless the company goes bankrupt.

A mutual fund is a pooled investment vehicle, which means it is a collection of individual stocks that make up a percentage of the fund. The advantages are it is a method to achieve instant diversification, and the mutual fund is managed by a financial corporation, rather than being self managed like stocks are. The major downside is there will be fees attached to mutual funds so the corporation who create the fund can maintain the services they provide.

This is a great resource for beginners to get unbiased information on the different types of investing. It provides good detail about the three major types of investing to help develop a new investors understanding.

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Stocks, bonds, and mutual funds are well known and powerful components of a diversified portfolio. To achieve desired returns to accomplish goals, it is

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This first video describes the basics of investing for beginners. It is a great starting point for someone who knows very little about investing.

This video begins by explaining the basic point of investing, which is to make your money make more money. The basic idea behind investing is to buy something now, that will make you money over time. There are many ways to do this, but the broad categories are stocks, bonds, mutual funds, and collectibles, with stocks being the main method. Buying stocks is buying a portion of the company, so as the company grows, so will your investment. Buying stock of a company isn't something you can do through the company itself, but rather you need a middleman known as a broker. Once the stock is purchased it can make you money in two ways: through rising stock prices allowing you to sell the stock for more than you bought it for, and through dividends, which are a small payout to shareholders when the company does well. Stock investing isn't easy for the average person as they will not have the expertise to make stock choices, so the best way is to invest in index funds. Index funds are a collection of various stocks that each have a weight in the index fund, and all contribute to the funds stock price. The most common is the S&P 500, which is a collection of the top 500 US countries. When you buy stock in S&P 500, you are buying a small portion of all 500 companies allowing you to basically hedge your bet. These funds are diverse, and do not require special market insight. The longer you hold your stock the more it rises, even when there is a stock crash it is best practice to hold your shares for the rebound. To start investing, you don't need much money as some brokers and apps require as little as $5 to begin investing. Finally, the video describes one final way to allow your money to make you money: invest in yourself. There are many ways to do this, such as taking a weekend course that will increase your pay. Getting an additional certification that costs you $100, but will increase your weekly pay by $10, will allow you to make back the money spent on the course plus much more. Another way to invest in yourself is to start a business. Although it may not be easy, you could beat the stock market in overall profits.

Overall, this video is a great introduction to investing, and provides a good base to build off as you progress through my Padlet. it provides a great starting point and introduces some basic investing terminology. I chose this video as it is the very basics, and provides insight from an experienced investor. They are great tips to begin with, and allow you to grasp the basics before moving on to more complicated topics. There is much more to learn, but this video is a great starting point.

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In the previous video we discussed the basics on investing, and one topic that came up is the difficulty to pick individual stocks.

In this video, Mark Tilbury discusses his strategies to pick individual stocks. His strategy is to focus on the companies fundamentals, such as the brand, leadership, and innovations. Just like the last video, he explains that index funds are the best and safest way to invest, as you can make profit even if one company goes bankrupt. He states research is the key in picking individual stocks, and you should look at information such as: the balance sheet, the income statement, and the statement of cash flow. He explains the qualities of the company which include: Company Recognition, Rumors, the Leadership, Emerging Industries, and Shifts in Sectors. He also explains one strategy to predict if a stock will go up, which is called "Dollar Cost Averaging".

I chose this video as it covers many specific and proven strategies when investing in stocks specifically. Although there is no guarantee it will work, his strategies have made him a successful investor, and that experience is certainly not something to be overlooked. Again for new investor, this advice can help determine your overall success in the long run.

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How I Pick My Stocks: Investing For Beginners

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In this video we discuss investing in bonds.

Rob Berger made a video regarding the basics of bond investing. He begins by explaining the basics of investing in bonds; loaning your money to a government or corporation with the promise to pay you back with interest. He explains reselling your bond before its maturity, and how you may not be able to sell it for the same price you bought it at based on a number of different factors. The risk changes based on who the company is with, for example though the government bonds which have almost no risk. If interest rates increase, the value of your bond upon reselling will decrease. There is a lot of math and consideration when deciding to hold your bond until maturity, or reselling your bond early, which this video describes in detail. The next topic he covers is municipal bonds, which do not have federal income tax, and are used to fund local projects such as construction. He also discusses the many different types of bonds, and explains the differences in detail. Finally he covers some tips to buying bonds, which include interest rates effecting your bond, determining the yield, and resources to determine the best bond for you.

Overall, this video is a great resource to understand bonds. It is the perfect introduction to bonds and has a vast amount of information regarding them, resources to help you decide and manage bonds, and tips to succeed in bond investing. This is what made it a good choice for this Padlet.

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Bond Investing 101--A Beginner's Guide to Bonds

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This article discusses bonds and provides clarity to the different types of bonds.

We know the basics of bonds from video 3, so I will skip ahead and cover the different types of bonds.

1. Corporate Bonds: A bond issued by a corporation which they use for operation or expansion of their facilities. When you buy a corporate bond, you will receive fixed interest payments plus your initial money back once the bond matures.

2. Treasury Bonds: These are long term bonds ranging from 10-30 years before they reach maturity. They offer lower yields than other bonds, but they are backed by the treasury you are investing in which makes them highly safe investments. The only downside is that as interest rates rise your bond may lose value due to them being such low yielding bonds, but they are considered extremely safe.

3. International Government Bonds: Bonds issued by foreign governments. These bonds some with higher yields, but they are riskier based on the political security of the government and exchange rates.

4. Municipal Bonds: These bonds are issued by cities or provinces/states. The main advantage of these bonds are that they are exempt from federal taxation.

5. Agency Bond: These are issued by government sponsored agencies. They are relatively safe investments as they are backed by the government (but not directly associated with). They typically have higher yield rates, but they may be paid out before maturity, meaning if it is a 5 year bond, they may pay you back and terminate the bond after only 3 years, making it less profitable for you.

6. Green Bonds: Used to fund projects such as renewable energy or pollution reduction. They are a responsible investment, so long as the funds are actually being used for environmentally friendly projects.

7. Bond ETF's: These are essentially Mutual Funds for Bonds. You invest in a variety of bond, and they allow you to only invest in a portion of the ETF rather than buying a whole bond. They are slightly riskier, as they are susceptible to credit and interest rate risk.

I chose this site as after the video 3 I was still confused about the different types of bonds and how they are different. This website made it much easier to understand the differences when it comes to investing in bonds.

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Bonds are financial instruments that investors buy to earn interest. Essentially, buying a bond means lending money to the issuer, which could be a company or government entity. The bond has a predetermined maturity date and a specified interest rate. The issuer commits to repaying the principal, which is the original loan amount, on this maturity date. In addition, during the time up to maturity, the issuer usually pays the investor interest at prescheduled intervals, typically semiannually.

Key Takeaways

Bonds ordinarily serve a dual purpose in your portfolio. First, they provide a steady and more predictable income stream of regular interest payments. This makes them attractive to those looking for consistent returns. Second, they help diversify your portfolio. Since bonds typically correlate negatively with equities, they may offset potential losses from other riskier investments.

Types of Bonds

In finance, bonds represent a beacon of stability and security. Bonds come in many forms, each with unique characteristics and advantages. With so many choices available, it's essential to understand the sometimes subtle but important differences among the most common types.

Corporate Bonds

Corporate bonds are fixed-income securities issued by corporations to finance operations or expansions. Private or institutional investors who buy these bonds choose to lend funds to the company in exchange for interest payments (the bond coupon) and the return of the principal at the end of maturity.

Treasury Bonds

Treasury bonds are long-term investments issued by the U.S. government. They have a maturity of 10, 20, or 30 years. These bonds are backed by the U.S. and, therefore, are regarded as very safe. Due to their low risk, they offer lower yields than other types of bonds. However, when market interest rises, the prices of these longer-running and lower-yielding bonds can come quickly under pressure. Investors use Treasury bonds as a secure long-term investment.

International Government Bonds

International government bonds are debt securities issued by foreign governments. They allow investors to diversify their portfolios geographically and potentially benefit from currency fluctuations or higher yields. Depending on the country or region, they can have additional risks, including political instability, exchange rate volatility, and many others, making them a comparatively riskier investment choice.

Municipal Bonds

Municipal bonds ( called "munis") are debt securities issued by states, cities, or counties to fund public projects or operations. Like other type of bonds, they can also provide steady interest cash flow for the investors. Additionally, these bonds typically offer tax advantages since the interest earned is frequently exempt from federal and sometimes state and local taxes, too.

Agency Bonds

Agency bonds are generally issued by government-sponsored enterprises or federal agencies. Although not directly backed by the U.S. government, they have a high degree of safety because of their government affiliation. These bonds finance public-purpose projects and usually have higher yields than Treasury bonds. However, they may carry a call risk, meaning the issuer can repay the bond before its maturity date.

Green Bonds

Green bonds are debt securities issued to fund environmentally friendly projects like renewable energy or pollution reduction. This allows investors to support sustainability while earning interest. They are like regular bonds, except the funds are earmarked for green initiatives. While they offer a way to invest responsibly, it's essential to ensure that they are actually funding initiatives with a positive ecological influence and avoid greenwashing.

Bond ETFs specifically invest in bond securities. They can offer broad diversification within the bond community, and an ETF may hold a range of different bonds. This provides liquidity, price transparency, and lower investment thresholds than individual bonds. However, like individual bonds, they're subject to interest rate and credit risk, among other risks.

Key Considerations for Bond Investors

When investing in bonds, it's crucial to consider credit ratings, which indicate the issuer's ability to repay debt; interest rates, since they affect bond prices and yield; and maturity dates, which determine when you'll receive the principal back. Ensuring you understand these vital features can significantly help you make informed decisions and align your bond investments with your overall financial goals.

Also, keep in mind that bond prices and yields share an inverse relationship. When bond prices rise, yields fall, and vice versa. This is because the fixed interest payment of a bond becomes more attractive compared with the market when prices drop, increasing the yield. Conversely, if bond prices increase, the fixed interest payment is less attractive, reducing the yield.

How to Buy Bonds

To buy bond securities, you have two main choices: individual bonds or bond funds.

Individual Bonds

Individual bonds can be bought through brokers, banks, or directly from the issuer. However, certain individual bond securities are not available to private investors. Here are some of the reasons for this:

High minimum purchase: Some bonds require a large initial investment that is ordinarily out of reach for individual investors.

Limited accessibility: Certain bonds, especially exotic or international ones, are not readily available on the retail market.

Regulatory restrictions: Some bonds, like municipal or certain corporate bonds, may be restricted to institutional investors.

Bond funds, meanwhile, are investment vehicles like mutual funds or bond ETFs that pool funds from a large number of investors to buy a diversified portfolio of bonds. This provides the means for greater diversification and professional management but has ongoing fees.

The choice between individual securities and bond funds depends on your investment goals, risk tolerance, desired level of involvement, and the investment exposure you are seeking.

You can either hold bond securities or actively trade them. Holding bonds versus trading bonds presents a difference in strategy. Holding bonds involves buying and keeping them until maturity, guaranteeing the return of principal unless the issuer defaults. Trading bonds, meanwhile, involves buying and selling bonds before they mature, aiming to profit from price fluctuations. However, this carries a higher risk.

What Is a Bond Rating?

A bond rating is a grade given by a rating agency that assesses the creditworthiness of the bond's issuer, signifying the likelihood of default.

Can I Sell My Bonds Before the Maturity Date?

Yes, generally, bonds can be sold before maturity in the secondary market (if there is enough liquidity), but the price you get may be more or less than your original investment.

How Does Bond Maturity Affect Price?

Longer-maturity bonds are generally more sensitive to interest rate changes, so their prices can fluctuate more than shorter-maturity bonds.

How Does Inflation Impact Bonds?

Inflation can significantly diminish the buying power of a bond's fixed interest payments, making them less valuable. Hence, inflationary risk should always be considered when buying them.

What Does It Mean When a Bond Is Callable?

A callable bond entitles the issuer to repay the bond before its maturity date. There is usually a predetermined call price and date listed in the bond prospectus.

The Bottom Line

Different bond types-government, corporate, or municipal-have unique characteristics influencing their risk and return profile. Understanding how they differ and the relationship between the prices of bond securities and market interest rates is crucial before investing. This can help confirm that your bond choices align with your financial goals and risk tolerance.

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Bonds are an essential part of your portfolio: learning about the different bond types and their features makes good financial sense.

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In this video, the host interviews an experienced investor named Andy Panko regarding mutual funds.

We begin by describing what a mutal fund, which is when you pool your money into a fund managed by a professional which contains a variety of stocks. It is diversified portfolio managed by someone else, with low risk of losing your money if a company goes bankrupt. They are best suited for anybody, as they are cheap and diversified. These can be stock mutual funds, or bond mutual funds. There are hundreds of different funds, so it can be hard to choose one, so to choose one suited to you, you need to choose if you want stocks, bonds, or something in between. It really depends on personal preference and strategy. Fees are another thing to consider, as that will determine how much you actually make. Company size also matters. Mutual funds can require a minimum investment depending on the exact fund, some have no minimum, while others may have a minimum of over $10,000. Fees involved with mutual funds can include brokerage fees, whereas some funds require a commission to buy into or leave the fund, and some have no fees. Finally, mutual funds are streamlined, easy, and reliable investments.

I chose this video to explain mutual funds for beginners. There is a lot of information to take in, and it can be confusing for first timers; this video helps clear the water. Again, with the advice from an experienced investor, investing can be made easy, and can be explained in simple terms that anyone can understand, as demonstrated in this video.

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(Naidu, Rajesh. 2018. Mutual Funds with the Best 20-Year Track Record. The Economic Times. https://economictimes.indiatimes.com/mf/analysis/mutual-funds-with-the-best-20-year-track-record/articleshow/64089725.cms)

In this image we can see the top performing mutual funds (as of 2018).

It seems regardless of what you look at there was a dip in 2013, but the rebound off the dip was significant. Some of these funds have increase in value by over 10 times from their 2013 value, which shows how effective mutual fund investments can be.

I chose this image as it is a fantastic chart that show some of the most profitable mutual funds, and how they rebounded significantly. I think for a new investor it shows not only the power of mutual funds, but the power of buying low and selling high. If someone had purchased a large quantity of any of these mutual funds at their low, they would have significantly profited from their investment.

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After watching the videos, we now have a good idea of what investing is, the different types of investments, and advice from gurus in the industry. So, what brokers are a good choice to make your investments with in Canada?

There are a number of different choices available which makes the decision daunting to choose one. This website outlines a few options as well as the pros and cons of each to help make the decision easier for those starting their investing journey.

Questrade: good customer service, transparency on fees, ease of use of both app and website, but high fees, with commission upon selling stock, lacks market notifications

TD Direct Investing: self-directed brokerage, cater to investors of any level, good market data, but lack of educational content, high fees, poor customer service.

Qtrade direct investing: Very good customer service, market information is detailed, and has young investor pricing, but fees are fairly high, slow to update the platform, and limited user resources.

I chose this website to demonstrate some option when choosing a brokerage. This is a good site as it includes the pros and cons of each platform in an unbiased manner. It is a good resource to check out when initially choosing a platform to invest on, and it is a good read with lots of details on each platform.

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It's the best of the best in our 2023 list of online brokers in Canada. Who takes the top spot-and which platform is best aligned with your investing goals?

If you're looking for an online broker, this is the place-our 11th annual ranking of the best platforms in Canada, with an analysis provided by Surviscor. As any seasoned DIY investor can tell you, all discount brokers are not the same. And the reasons we choose one over another can be as nuanced as our financial goals and retirement plans. Maybe you want a seamless desktop-to-mobile experience, or you want to keep all your money and assets at the same financial institution. We understand. With 10 categories of consideration, from trading experience to the lowest fees, we cover the details that matter.

Best online brokers 2023: The top 10 firms

Here is the list of the 10 best online brokers in Canada for this year, which was derived by drilling down into the four pillars of investor experience at each firm: desktop platform, mobile platform, commissions and fees, and service availability and responsiveness. To find out more about the points, read our methodology.

Firms that ranked outside of the top 10 with 0 points scored:

Firms that did not make the review cut, but have evaluations by Surviscor:

Self-directed online investing has normalized after a few years of outsized activity spurred by house-bound investors and government stimulus payments, especially after a bad year for stocks in 2022. Account openings have now stabilized and are back to pre-COVID and pre-meme-stock-phenomenon levels. And the trend of $0 commission firms-specifically no limitations on stocks and exchange-traded funds (ETFs) -has stalled at two and a half legitimate firms. Yes, you read that last part correctly. (More on that half-firm later, where we talk about $0 commissions.)

Now, the question for Canadian online investors-or for that matter the actual online brokerage firms-is what's the next marketing ploy to watch for? Is it something to attract new investors to the industry and in turn to the firm? Or is it something to make existing investors entertain the thought of trying a new online broker or even switching?

It seems the current marketing focus is to target Canadian investors with words like "easy" and "simple." TD Easy Trade even put this into its brand name. And Wealthsimple Trade has been promoting its simplicity for years. Questrade is now following the same path with its QuestMobile app, alongside its original app/mobile-friendly site.

What we implore Canadian investors (especially newbies) to understand is that self-directed investing is not always "easy" or "simple" to do. This cannot be overstated. There is no platform design that can make the self-directed investing decision a cinch. Is it possible that marketers may use words that don't speak the truth or give the full story? One would guess that everyone knows the answer to that sad question in our world today, which focuses on "information overload" rather than "information integrity."

This is why we continue to publish an annual ranking of Canada's best online brokers and why our list is different than others you may read. We're not looking at just the shiny marketing objects or company-directed narratives. We tally all of the key aspects of a self-directed investing relationship with an online broker for all levels of investing experience.

Now in its 11th year, the ranking again reflects analysis provided by Surviscor, a leading Canadian research and consulting firm specializing in the customer experiences of digital and direct financial services. Customized for MoneySense to include hundreds of data points, Surviscor's deep dive into the Canadian online brokerage marketplace is second to none.

This year's edition looks slightly different from previous ones. We redesigned it for you, the Canadian investor, to provide a more comprehensive look at different areas of focus, so you can easily zero in on what you'd like to learn based on your needs and preferences.

We still have 10 categories of focus, and we've also divided the best online brokers in each category into three groups, based on results by platform experiences, investor type and firm type. In each case, we've used Surviscor's existing research and ensured all of the four pillars of experience-desktop, mobile, commissions and fees, and service-are incorporated into each category. Gone are the references to separate desktop and mobile platform categories, as both are integral to the overall experience. Are you only using your laptop? Only using your phone? We didn't think so.

And, because we know some Canadian investors prefer using the same firm they bank with while others avoid these larger firms at all costs, we added the following two new categories this year: best bank-owned online broker and best non-bank online broker.

Check the chart to see which firms in Canada raked in the most points for all categories, then read more about the top three online brokers and the best ones depending on your investing style and goals.

Top 3 online brokers in Canada

Here's a closer look at the top three overall winners.

1. Questrade

Questrade is MoneySense's pick for "2023 best online broker in Canada," scoring 33 points overall and winning or tying for the top spot in five of the 10 categories. Questrade has a well-rounded offering and is focused on satisfying each investor profile with specific needs, while continuing to offer industry-leading customer contact methods and strong service responsiveness.

Its most glaring drawback is its commissions and fees structure, which barely cracks the top 10 in Surviscor's Commissions and Fees Review. Other rankings you may read take a different approach to their reviews and may simply look at the advertised costs, but Surviscor identifies and penalizes firms for additional trade costs that can arise, including electronic communication network (ECN) fees and commissions charged to sell an ETF despite customers being able to purchase with no commissions charged.

Pros:

Cons:

The new mobile platforms strategy is not good for the average investor, as the new QuestMobile is meant for new investors and Questrade Edge is too advanced

Charges ECN fees, as well as additional transaction fees that can considerably increase commission costs above what's advertised

Charges commissions on ETF sell orders (buys are commission-free)

Despite the basic price and volume alerts, it lacks account and market notifications

2. TD Direct Investing

TD Direct Investing, the top firm in 2022 and Canada's largest discount brokerage firm, dropped to second place, scoring 30 points overall and winning or tying for the top spot in four of the 10 categories. TD's continued commitment to investor education, its long-standing strength of market data and its strong traditional desktop-based investor platform make TD Direct Investing a well-rounded choice for self-directed investors in 2023.

We looked at the TD Direct Investing desktop platform experience, along with the TD Direct Investing mobile platform and the TD Easy Trade mobile app, coupled with the overall pricing, service levels and user experiences that TD Direct Investing provides. Note that TD Easy Trade, formerly the TD GoalAssist app, is a service offered under the TD Direct Investing umbrella. If you choose to take advantage of TD Easy Trade's offer of 50 free stock trades per year, your account will be with TD Direct Investing. You'll likely enjoy its traditional platforms more, as the TD Easy Trade platform on its own would rank poorly versus other online broker mobile-based platforms.

That said, TD Direct Investing's overall commissions and fees across all its platforms and investor profiles are expensive, with the exception of small stock and ETF traders who make fewer than 50 trades per year. To receive discounts, however, these investors are required to place all trades via the TD Easy Trade mobile platform.

Pros:

Cons:

The marketing message around TD Easy Trade and how easy and simple it makes investing is misleading: The platform is weak, and educating users to stay on it does not promote self-growth

The long-standing customer is paying high commissions and fees compared to those at other online brokerages

To get the first 50 stock trades for free each year, clients must use the weaker mobile-based TD Easy Trade platform

Customer service is spotty throughout the year; recent Surviscor stats indicate an average turnaround time of 18 hours on service enquiries

3. Qtrade Direct Investing

Qtrade Direct Investing returns to the top three in 2023 (it held the top spot in 2020), scoring 26 points overall and winning or tying for the top spot in three of the 10 categories. The return makes sense, as Qtrade Direct Investing has always offered a well-rounded experience for investors of all sizes, coupled with a dedication to providing great service to new and existing customers.

The main drawbacks of using Qtrade Direct Investing include its commissions and fees. They tend to be on the high side, which is interesting for a below-average mobile platform. It seems that Qtrade has difficulty understanding who its target market is. Is it all investors? Or just new investors? Can it really be both? And what is its identity-Qtrade or Qtrade Direct Investing? Time will tell.

Pros:

Exceptional customer service options and responsiveness

Relatively seamless to switch between mobile and desktop when opening your account

Good depth and breadth of market data

Young investor pricing

Cons:

Commissions and fees are on the high side, comparatively speaking

Canadian investors wait a long time for platform enhancements/updates

Mobile platform is only satisfactory, with limited user resources and tools

Its marketing message "Write your own future" could be misleading, and it suggests more than what can be delivered to most self-directed investors

Return to table of contents.
Best online brokers by category

Surviscor's message is always "buyer beware" for self-directed investing, as each firm attempts to get a leg up on its peers with minor points of differentiation. It's like choosing to read an article about "five-minute abs" and there's another one claiming you can do it in four minutes. Don't fall for the shiny marketing messages. Do your homework and ask yourself: "Do I really believe that a firm is willing to pay for my fees and lose money just so I can be a customer?" The answer: "Probably not."

Everything will not appeal to everybody. We know that the areas some online brokers excel at will be important to certain customers but maybe not to you. To help you find what you're looking for, we've selected the best online brokers for each category and divided them into three groups: results by platform experiences, investor type and firm type. Below that, you can check out some good investing 411 info, as well as our methodology for MoneySense's best online brokers ranking.

Results by platform experiences

Results by investor type

Results by firm type

Best online brokers for user experience

The user experience category is based on 16 areas of analysis that explore the usability of online brokers' desktop and mobile platforms, both inside and outside of their secure areas. The results are based on a measurement of features and functionality that impact investor choice, convenience and control of the overall experience.

The key measurements are onboarding experiences, service methods and availability, the design of pre-login and secure areas, login security, policies and disclaimers, and the ability of an investor to customize their experience.

1. Questrade

Questrade is the leader in overall digital user experience, scoring 48 points and leading in four of the 16 areas of analysis. Questrade provides investors with a great first impression through its account opening process, leading customization features and intuitive designs, and it excels at service interaction methods that provide choices for investors.

Not that everyone reads the policies-most don't-but the user experience drawback at Questrade is the lack of easy access to its mobile platform policies.

2. TD Direct Investing

TD Direct Investing is the co-runner-up in overall digital user experience, scoring 38 points and leading in four of the 16 areas of analysis. TD Direct Investing provides investors with intuitive platform designs that make the experience easy to understand, regardless of the content within each platform.

The user experience drawbacks at TD Direct Investing include the presentation of mobile platform policies and a weaker onboarding process.

Need to learn more about TD Direct Investing and its platform experiences? Surviscor's likes and dislikes of TD Direct Investing's digital platforms can help.

2. RBC Direct Investing

RBC Direct Investing is the co-runner-up in overall digital user experience, scoring 38 points and leading in three of the 16 areas of analysis. RBC Direct Investing boasts its banking-brokerage integrated design, which allows for continuity and usability consistencies between banking and investing.

The user experience drawbacks at RBC Direct Investing include a lack of user customization options and a weaker onboarding process.

Need to learn more about RBC Direct Investing and its platform experiences? Surviscor's likes and dislikes of RBC Direct Investing's digital platforms can help.
Return to categories list.
Best online brokers for account experience

The account experience category is based on 12 areas of analysis. It explores the non-transactional-related digital account information aimed at monitoring an investment account or assisting in an investor's decision-making process, once they're logged in as a customer, on both the desktop and mobile platforms.

The key measurements are additional account onboarding experiences, secure-area service methods and availability, product availability, the presentation and usability of account information including holdings and trades, and the ability for customers to self-manage the experience through digital account management and notification capabilities.

1. Questrade

Questrade is the undisputed leader in overall digital account experience, scoring 40 points (15 points ahead of runner-up Scotia iTRADE). Questrade leads in three of the 12 areas of analysis, including product availability, and it provides investors with leading digital account information including balances, holdings and trades.

The account experience drawback at Questrade is the lack of desktop-based account notifications.

2. Scotia iTRADE

Scotia iTRADE is the runner-up in overall digital account experience, scoring 25 points and leading in two of the 12 areas of analysis, including digital management. Scotia iTRADE has launched its new platform design (and there's more to come), and it provides investors with easy-to-understand desktop-based account information.

The account experience drawbacks at Scotia iTRADE include a lack of account notifications and weaker account information on the mobile platform than on the desktop platform.

Need to learn more about Scotia iTRADE and its platform experiences? Surviscor's likes and dislikes of Scotia iTRADE's digital platforms can help.
Return to categories list.

Best online brokers for trading experience

The trading experience category is based on 24 areas of analysis and explores the various digital-based transactional areas and screens along with the supporting process and features. This includes the informational aspect of the supporting market intelligence that encompasses the complete digital order-placing and transactional experience.

The key measurements are product availability via desktop and mobile platforms (stocks, ETFs, options, bonds, global stocks and guaranteed investment certificates, a.k.a. GICs), order screen functionality and supporting features, supporting market notifications and the availability of in-depth market intelligence to support an investor's decision needs.

1. TD Direct Investing

TD Direct Investing is the leader in overall digital trading experience, scoring 56 points and leading in two of the 24 areas of analysis. Although TD Direct Investing does not dominate in many areas, it does provide above-average experiences in most of the areas. One way TD shines is that it provides industry-leading market intelligence and depth of data, which are the basis of any superior trading experience.

The trading experience drawback at TD Direct Investing is that its transactional screen designs and process-something that runner-up Questrade excels at-is just average.

Need to learn more about TD Direct Investing and its platform experiences? Surviscor's likes and dislikes of TD Direct Investing's digital platforms can help.

2. Questrade

Questrade is the runner-up in overall digital trading experience, scoring 50 points and leading in five of the 24 areas of analysis, including product availability and the transactional process for trading stocks and ETFs on its digital platforms.

The trading experience drawback at Questrade is its supporting market information, which is the strength at TD Direct Investing.

Need to learn more about Questrade and its platform experiences? Surviscor's likes and dislikes of Questrade's digital platforms can help.

Return to categories list.
Best online brokers for investor resources

The investor resources experience category is based on 13 areas of analysis and explores the various supporting investor resources available in both the pre-login and secure customer areas of the digital platforms.

The key measurements are the digital-based features and functionality of the investment and planning tools, interactive education, and account and market notifications available to the Canadian digital investor.

1. TD Direct Investing

TD Direct Investing is the undisputed leader in overall digital investor resources experience, scoring 50 points-that's 21 points ahead of runner-ups National Bank Direct Brokerage and Qtrade Direct Investing. TD Direct Investing leads in three of the 13 areas of analysis, and it is within the top five in all the other areas. That's due to TD offering a combined banking-brokerage app. You don't necessarily need an investment account to access its investing resources and digital educational information.

There is no identifiable drawback in the investor resources experience at TD Direct Investing.

National Bank Direct Brokerage is the co-runner-up in overall digital investor resources experience, scoring 29 points despite having no top firm finishes in the 13 areas of analysis. National Bank Direct Brokerage provides investors with industry-leading research and fundamental information, and mobile-based screeners.

The drawbacks of the investor resources experience at National Bank Direct Brokerage are a lack of desktop-based market notifications and below-average education.

2. Qtrade Direct Investing

Qtrade Direct Investing is the co-runner-up in overall digital investor resources experience, scoring 29 points and ranking first of the 14 areas of analysis. Qtrade Direct Investing provides investors with good research and fundamental information, digital-based education and planning resources.

There are no material drawbacks in the investor resources experience at Qtrade Direct Investing.
Return to categories list.
Best online brokers for new investors

New investors should have their hands held and be educated through their online broker. The new investor experience category is based on 48 areas of analysis. It explores the digital experiences new investors will have with an online broker, including desktop and mobile platforms, commissions and fees, and service levels. In terms of commissions and fees, the review uses Surviscor's data for a zero-to-four-trades-per-month investor profile.

What does "new investor" really mean? To online brokerage firms, it means opportunity. It's the golden ticket, as brokers covet this customer segment more than any other. Why does it mean so much to them? Because it represents new money and the opportunity to grow their "share of wallet" through other products and services-not just self-directed investments.

To us, a new investor is a rookie, a newbie, or an impressionable investor with little to no experience who has a desire to try, not gamble with, self-directed investing. If this definition sounds like you, then consider yourself a new investor and listen closely to the message we are preaching. We have done the work at the in-depth levels of analysis you deserve.

The takeaway is to shy away from the shiny marketing messages meant to lure you in. Concentrate on online brokers that provide value through learning opportunities and lots of information, and focus less on cost since you won't be trading a lot.

If you want to read between the lines of Canadian self-directed investing and consumer banking messages, consider visiting Surviscor's Between The Lines blog, where each brokerage and banking article represents an objective, non-sponsored, non-paid, factual review highlighting day-to-day personal finance experiences.

1. TD Direct Investing

TD Direct Investing is the best online broker choice for new investors, scoring 108 points. It should be immediately noted that this result is not based on the TD Easy Trade platform but rather on the combination of using the traditional TD Direct Investing digital platforms and using the scaled-down TD Easy Trade platform to receive the first 50 stock trades for free.

TD Direct Investing provides new investors with good overall user experiences, investment and planning resources, non-customer interaction methods and industry-leading market information and intelligence.

The main drawbacks for new investors at TD Direct Investing are its 18-hour average service interaction response times, and the requirement to use the TD Easy Trade platform to receive the first 50 stock trades for free each year.

2. Questrade

Questrade is our next-best online broker choice for new investors, scoring 105 points. As is the case with the best firm, the new mobile platform, QuestMobile, is not the reason Questrade scored well, as we would prefer that new investors use the traditional digital desktop and mobile platforms. Questrade provides new investors with strong account opening and account information experiences and good service interaction methods (methods of communication) and interaction responsiveness (how long it will take for someone to get back to you).

The main drawbacks for newbies at Questrade are its commission structure and potential hidden fees, its market data costs and a lack of investment planning resources for new investors.

Return to categories list.
Best online brokers for seasoned investors

Seasoned investors make decisions based on facts and data. That is why the seasoned investors category is based on 49 areas of analysis and explores the digital experiences that seasoned investors will have with an online broker, including desktop and mobile platforms, commissions and fees, and service levels. In terms of commissions and fees, the review uses Surviscor's data for two investor profiles: five to nine trades per month and 10 to 33 trades per month.

What does the term "seasoned investor" really mean? To brokerage firms, it means a steady investor who trades relatively regularly, providing them with a consistent pattern of income streams that are tightly in sync with the level of activity in the stock market. So why does it seem like seasoned investors mean less to brokers than new investors? Because they do, or at least appear to, when all the focus is on new platforms and new pricing to attract the newbies. The scary observation is that many firms feel these seasoned investors will never leave, and thus they lose focus.

To us, a seasoned investor is one who understands self-directed investing and how to essentially navigate their own path through the ebbs and flows of market conditions. Seasoned does not equate to success, but it does equate to more educated decision-making, a discipline that helps keep the lights on at most firms. If a new investor is called a rookie or newbie, then a seasoned investor could be called the forgotten or ignored investor.

The message here is that you have many online brokers to choose from, and you should exploit each and every available opportunity while holding your existing firm to the highest of standards.

1. Questrade

Questrade is our best online broker choice for seasoned investors, scoring 119 points. We go on about Questrade's hidden fees. But, if you are a seasoned investor, you are probably used to navigating through optimal commission scenarios and reducing or eliminating the market data costs that arise at a few firms.

The beauty of Questrade for a seasoned investor is the abundance of choice and differentiating products that allows a self-directed investor to grow into more advanced products and platforms when they are ready, or willing, to do so.

2. Qtrade Direct Investing

Qtrade Direct Investing is our next-best online broker choice for seasoned investors, scoring 113 points. Some experts may say this is an odd choice, but we are basing this evaluation on Qtrade's legacy platforms and ignoring the identity crisis we spoke about earlier.

The bottom line for Qtrade Direct Investing-we've been saying it for 10 years now: It has a well-rounded offering that can cater to each investor profile. The question is, where is it going, and will that statement hold true in the years to come?
Return to categories list.
Best $0 commission online brokers

Want no commission fees? The best $0 commission online brokers category is based on 14 major buckets of analysis derived from the four main Surviscor pillars of experience (desktop, mobile, commissions and fees, and service levels) through the review of 69 individual experiences. In terms of commissions and fees, the review uses Surviscor's data for a zero-to-four-trades-per-month investor profile.

Let's address the elephant in the room right away: TD Easy Trade is not a $0 commission online broker. Why not? First off, it's a sub-brand of TD Direct Investing and really a name to identify its reduced-commission, mobile-based platform, which only provides 50 free stock trades per year and free in-house-only ETF trades. No matter what the TD marketing folks and paid bloggers and writers say, know that it is not a $0 online broker. At best, this is a limited offering due to the platform use requirement and more of an ongoing promotion for the parent TD Direct Investing, one that could end at any time. What happens when an investor reaches the 51st trade? It's time to pay.

As mentioned earlier, the $0 commission trend has stalled, as many firms have chosen not to follow the no-money, loss-leader path. Surviscor identifies only two and a half firms in this category. And even that evaluation can be weak, as all of the firms charge commissions for options and build in commissions if an investor trades bonds or GICs. For now, these firms are given the title due to the $0 commissions on stock and ETF purchases and sales, despite all of them offering options at a commission. Wealthsimple Trade is in customer beta.

So, if TD Easy Trade is a $0 imposter, are you wondering who the "half" firm is? Well, it's the pioneer and industry disruptor Wealthsimple Trade, based on the fact that it does not provide all North American stocks or ETFs as everyone else does.

The Canadian bank-owned firms attempt to drive the $0 ETF commissions message, but the reality is that there are small-print caveats to consider. For example, Scotia iTRADE limits the number of available $0 commission ETFs. TD Direct Investing only allows in-house products. And BMO InvestorLine offers a hybrid of both in-house products and a select number of third-party $0 ETFs. Of course, it's important to understand that the lowest price is not always best when it comes to fees. You should also consider what you're getting for your money.

National Bank Direct Brokerage is our choice for best $0 commission online broker for 2023, scoring 33 points. The $0 criteria speaks to its unrestricted availability and unlimited transactions of North American stocks and ETFs for $0, but the complementary digital platform experiences are what sets National Bank Direct Brokerage apart-it has not totally fallen prey to the "provide less for $0" trend. Time will tell with the new releases of its mobile platforms.

2. Desjardins Online Brokerage

Desjardins Online Brokerage, the last firm to fully enter the $0 commissions arena, is our next-best online broker choice, scoring 26 points. Canadian investors can expect $0 commissions with no restrictions for stock and ETF transactions, as with its Quebec-based counterpart. And they are provided with a full investor experience. Although Desjardins Online Brokerage could improve its digital platforms and investor usage experience, the good news is that it provides a solid offering for $0 and also has competitive options commissions and account administration fees.
Return to categories list.
Best commission online brokers

You get what you pay for-at least, that's what you hope. The best commission online brokers category is based on 14 major buckets of analysis derived from the four main Surviscor pillars of experience (desktop, mobile, commissions and fees, and service levels) through the review of 75 individual experiences.

What is a commission online broker? It's a firm that charges commissions, with exceptions or limitations, for trading stocks or ETFs. In terms of commissions and fees, the review uses Surviscor's data for two investor profiles: five to nine trades per month and 10 to 33 trades per month.

The investors who use these firms are loyal-they aren't tempted by $0 commissions. Instead, they take a value-driven approach, meaning they appreciate and are willing to pay for solid research and quotes, and they look at the total cost of trades based on the information they get from the firm. Even if you are a conservative or passive investor, paying a few extra dollars (or pennies!) per trade may be worth it if the service includes access to free education, analyst recommendations, and tools and resources, such as unlimited real-time quotes and depth of data.

Unfortunately, the marketing message at commission online brokers mimics the messages of $0 commission online brokers. The difference is that commission online brokers speak of reduced fees and typically the lowest fee charged. However, those reduced fees do come at a different cost. It could be missing functionality (like on TD Easy Trade), or potential hidden costs (like ETF fees that can double or triple the stated commission fees), or inflated foreign exchange rates for U.S.-dollar trading in Canadian currency accounts, or platform costs for better data, or even reduced service coverage. We could go on and on, but our point is made, right?

1. Questrade

Questrade is our choice for best commission online broker for 2023, scoring 156 points. As mentioned earlier, and many times, Questrade's ECN fees and market data costs can become troublesome. If you have chosen to use a commission broker, you will simply need to review your trading patterns and figure out how to avoid the fees and choose the market data packages that make sense for you.

In this tightly contested race, Questrade gets the nod over TD Direct Investing due to the latter's glaring shortcomings in commissions, service responsiveness and account experiences. Otherwise, the two firms can see-saw back and forth on areas of greatness and concern.

2. TD Direct Investing

TD Direct Investing is our next-best commission online broker choice, scoring 153 points in a tight race. You can't go wrong with TD Direct Investing, and if you are willing to play the TD Easy Trade use-for-trading-only game with them-taking advantage of the zero to 50 free stock trades per year-your cost per trade should decrease exponentially.

TD Direct Investing provides good investor experiences across its traditional digital platforms, and it has enough resources to allow clients to grow into self-directed investors.

Return to categories list.
Best bank-owned online brokers

Want to invest at a bank? The best bank-owned online brokers category is based on 14 major buckets of analysis derived from the four main Surviscor pillars of experience (desktop, mobile, commissions and fees, and service levels) through the review of 93 individual experiences at nine firms. The ranking considers the full spectrum of investor profiles, according to the adapted MoneySense version.

Let's face it, the majority of Canadians love and trust banks, sometimes blindly. It is unclear if the loyalty stems from familiarity, tradition or simply a lack of trust in any firm that is known as independent from the well-known big banks. In many respects, Canadians are very aware that most bank-owned firms tend to cost more, but having their financial assets in one place outweighs the additional expense.

It should be noted that the proposed Royal Bank takeover of HSBC Canada, set for late 2023, likely means that HSBC InvestDirect customers will move to RBC Direct Investing or have the opportunity to search for another firm. In either case, HSBC InvestDirect customers should welcome the deal from the perspective of digital platforms and service, as the broker has been plagued by a lack of progress and poor management vision. However, there will be substantial increases in commissions and fees.

1. TD Direct Investing

TD Direct Investing is our undisputed choice for best bank-owned online broker for 2023, scoring 158 points, which is 50 points better than National Bank Direct Brokerage. There is not much more to say about TD Direct Investing, as we have already dug into the details on the firm's profile above. One thing is crystal clear: TD Direct Investing is dominating the other bank-owned firms in the self-directed online brokerage arena.

The TD Direct Investing overview goes like this:

Good user experience across traditional platforms

Great market intelligence data

Poor service responsiveness

Great educational resources

Investor-limiting rules to receive 50 free stock trades per year

Sub-brand TD Easy Trade is not a $0 commission firm

An online broker for all investor profiles

There, you have it.

National Bank Direct Brokerage is our next-best bank-owned online broker for 2023, scoring 108 points. Let's be clear that National Bank Direct Brokerage's move to unrestricted $0 stock and ETF commissions is what largely separates it from the next bank-owned firm, RBC Direct Investing.

The National Bank Direct Brokerage overview goes like this:

Free stock purchases for all available North American shares

Free stock sales

Free ETF purchases for all available North American issuers

Free ETF sales

Poor service responsiveness

Good investor resources

Free and you get things

Did we mention that there are a lot of "free" things at National Bank Direct Brokerage? OK, you get the point.
Return to categories list.
Best non-bank online brokers

And then there are Canadian investors who do not want to use a bank as their online broker. The best non-bank online brokers category is based on the same in-depth analysis of areas of focus as the bank-owned category. There are six non-bank-owned online brokers; however, our review focuses on four because the other two cater more to traditional hyperactive day traders. Investors are lured to non-bank-owned firms by constant marketing, a perception of lower fees and, in many cases, a lack of trust around the Canadian banking firms.

When these firms opened up, they tried to differentiate themselves with lower costs, but they failed to offer the same level of investor experiences as bank-owned firms. Then the pendulum swung as these self-directed online brokers became the innovators, or disruptors, and pushed the investor experience envelope using a more active-trader approach to platform design and, in some cases, pricing.

The result was great for Canadian investors. Not only did the non-bank online brokers change the landscape of self-directed discount brokerage experiences, but they provided more choices for investors and made the bank-owned firms more accountable, which in turn improved the overall experience at the progressive bank-owned firms.

1. Questrade

Questrade is our choice for best non-bank online broker for 2023, scoring 156 points. Like the bank-owned rankings, there is not much more to say about Questrade that hasn't already been said. The Questrade overview goes like this:

It's an online broker that works for all investor profiles.

2. Qtrade Direct Investing

Qtrade Direct Investing is our next-best non-bank online broker choice for 2023, scoring 136 points. Following the overview logic above, the Qtrade Direct Investing overview goes like this:

Another online broker for all Canadian investor profiles.
Return to categories list.

Comparing Canada's best online brokerages ►►

To view all the data in the table, slide the columns right/left/up/down using your fingers or mouse. You can download the data to your device in Excel, CSV and PDF formats.
Return to table of contents.
Online brokerage fast facts and FAQs

by MoneySense Editor s

How do online brokers work?

How do online brokers make money?

What are $0 commission fees?

What's special about our ranking, the MoneySense Best Online Brokers in Canada for 2023?

Return to categories list. See the full comparison tool of the best 15 online brokers in Canada to see how they stack up.
More Surviscor resources

Looking for more information? Surviscor provides exclusive and curated information with you, the investor, in mind. Here are some valuable links to consider:

Surviscor's site offers unbiased analysis of Canadian online brokers based on facts, not influenced by marketing campaigns and paid reviews. There you will also see in-depth analysis of the four major investor experiences, helping investors to quickly decide on the online brokers that will work best for their goals and interests. Surviscor's firm reviews provide a more comprehensive review of each Canadian online brokerage firm, including rankings and scores for fees, service levels and both digital platforms (desktop and mobile).

Powered by Surviscor's extensive research, scorChoice-Find your own #1 is the only tool of its kind in Canada. It allows an investor to produce a personalized scorecard of the top firms that suit the desired experience criteria. The beauty of the tool is that it can be useful for novice investors to quickly gain insight on the firms that could satisfy their initial needs. And seasoned investors can use it to not only validate current relationships but also gain insight into firms that may provide a better solution.

Surviscor's blog, Between the Lines, provides a deep dive into Surviscor's annual brokerage and Canadian banking reviews.

See past "Best online brokers" 2022 rankings.

Methodology

Surviscor representatives completed a features and functionality questionnaire of nearly 8,000 questions for each firm in the review, covering both desktop and mobile platforms, while performing hundreds of typical investor tasks on each individual digital platform. Surviscor also analyzed the firms' commissions and fees across five trade-related investor profiles and reviewed 146 service interactions over a 12-month period ending on Feb. 28, 2023. Each firm was assigned a score based on its ranking within the 10 sections of our review (5 points for first place; 4 for second; 3 for third; 2 for fourth; and 1 for fifth), and the overall score represents the sum of the awarded sections.
Return to table of contents. Glenn LaCoste , president and CEO of Surviscor Group, is considered a leading Canadian spokesperson and analyst in the online and mobile brokerage and banking industries in Canada. He has more than 30 years of experience in financial services and has been actively involved in Canadian financial services ratings and ranking reviews since 2003. LaCoste is often quoted in Canadian financial services articles, and he provides professional insight on brokerages and banking as an occasional television guest on the Business News Network (BNN).
This article was created by a MoneySense content partner,

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Best online brokers in Canada for 2023 - MoneySense

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It's the best of the best in our 2023 list of online brokers in Canada. Who takes the top spot-and which platform is best aligned with your investing goals?

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Some of the biggest complaints about brokerages in the last post were related to the fees to invest. Here I want to take a close look at a popular platform that I have a little experience with myself: Wealthsimple.

Wealthsimple is another online trading platform that has been gaining popularity over the past few years. The main driving factor for this is the low fees. Wealthsimple has created some of the lowest investing fees on the market, which has made it have a high draw to new investors. The first choice when investing with them is what they call "Wealthsimple Invest". How this works is you answer questions about your goals and your risk tolerance, and they build a portfolio for you. The fees are quite low, at 0.5% for accounts with less than $100,000, and 0.4% for account above that, plus your money is insured by the Canadian Investor Protection Fund (CIPF). The next is a commision free trading platform called "Wealthsimple Trade". It isn't all good though, as they charge currency conversion fees. Finally, Wealthsimple has a section know as "Wealthsimple Crypto" for those who want to invest in cryptocurrency.

Overall I chose this website as I wanted to learn more about the Wealthsimple platform as I have heard a lot about it through various different sources. Upon further research, when looking at the total fees it is not much better than any other platform, and has its pros and cons just like any other platform. Also, this website is biased as it comes directly from the company.

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Wealthsimple makes powerful financial tools to help you grow and manage your money. Learn more

I've heard the name. But what do you actually do?

We're a financial technology company. Sure, that's fun to say at parties (kidding), but it actually means something. It means we use innovation to build powerful financial tools - like an app that lets you trade stocks for free, or hands-off portfolios that put your money to work like the world's smartest investors - that work better and cost less. Our mission is to help everyone achieve financial freedom no matter who you are or how much you have.

We operate with a few principles in mind.

Keep efficiency high and fees low. When it comes to being smart with your money, fees (even ones that look small) are a huge impediment. That's why we make financial products that have among the lowest possible fees - from pay-what-you-want tax preparation, to no-commission stock trading, to investing portfolios that charge a fraction of what financial institutions do.

Paperwork is for big banks. We believe that a product isn't really simple unless it's dead simple to get started on. That's why you can sign up from your phone or laptop from anywhere. You just answer a few questions, skip the paperwork, and you're ready to go in a few minutes.

Technology + Humans. As we're human beings ourselves, we value people. They give great advice and sometimes they're nice to talk to. So we have a team of experts at Wealthsimple who can walk Invest clients through any questions they may have. And for those who never want to talk to a human, we hear you: that's an option, too.

But you're still not saying what you actually do!

You're right! Sorry. To make it simple, we offer five financial products (there'll be more soon, so watch this space) to help Canadians grown and manage their money:
Wealthsimple Invest
The product we started with. Wealthsimple Invest builds smart, super cost-efficient portfolios made up of the perfect mix of equities and bonds all tailored to your goals. It also comes with real human advice, if that's your thing.

The way it works is: you tell us a bit about yourself, your financial situation, goals, and appetite for risk - and in a couple of minutes we build you an investing portfolio tailored to you. Our portfolios are different because instead of a human picking and choosing stocks, your portfolio will track the broader market, because research shows that picking stocks (like what a mutual fund does) is more expensive and less effective. By the time the average Canadian retires, they could end up paying about $300,000* total in fees throughout their life if they opt for active investing.

This all helps us keep fees incredibly low. How low?

0.5% fee for accounts up to $100,000

0.4% fee for accounts above $100,000

Note: we're not always passive. As your assets change in value, we automatically rebalance your portfolio. And the money you invest with us is protected by the Canadian Investor Protection Fund (CIPF).
Wealthsimple Trade
Wealthsimple Trade is Canada's only commission-free trading platform. So you can buy and sell thousands of stocks, without extra fees.

You can use it to build your own passive investing portfolio of ETFs, like the ones we make, or just to buy shares in companies you believe in. And like Wealthsimple Invest, your account is protected by the CIPF.
Wealthsimple Crypto
Wealthsimple Crypto is Canada's first regulated crypto platform lets you buy and sell cryptocurrencies like Bitcoin and Ethereum, while knowing your investments are safe.
Wealthsimple Tax
Wealthsimple Tax is online pay-what-you-want tax software. It helps you do your taxes quickly, simply, cheaply, and guarantees you'll get the maximum refund you're owed.
Wealthsimple Cash
Wealthsimple Cash is a mobile app that lets you send, request, and receive money instantly from your friends and family (and pretty much anyone else) with the press of a button.

All accounts are protected by the Canadian Deposit Insurance Corporation (CDIC).

But how are you guys going to make money if you charge so little in fees?

At a traditional bank, 50% of the fees you're paying go toward advisors' sales commissions. But we don't think those salespeople are seeing all that money. Plus, traditional firms typically have a huge back office - people pushing paper whose salaries you pay in the form of fees.

In contrast, we still operate like a tech start-up. We're very frugal, we don't pay to put our name on stadiums, and we don't pay for tons of branches. We think it's a better business to take that money and put it back into our clients' pockets.
Last updated April 30, 2021. *Source: Advisors Edge. This assumes an initial investment of $10,000 at age 25, annual contribution of $5,800 thereafter, 6.5% rate of return, and 2.35% fee over a 40-year period.

Topics related to this article

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What is Wealthsimple and How Does it Actually Work? | Wealthsimple

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What we do, why we do it, and how it works.

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(Leem, Duane. 2018. The Top 4 Brokers With The Cheapest Commissions. https://www.warriortrading.com/the-top-4-brokers-with-the-cheapest-commissions/)

In the image above we see a great comparison between costs involved with a number of different brokers.

When looking at the overall picture, it looks like InteractiveBrokers have the least amount of charges when investing with them. They have no flat stock cost, no options base fee, and no option/exercise assignment fee. But when looking at the overall costs, they are higher than some of the other options, so although you may not have to pay for the previously mentioned areas, the overall cost is quite high.

If we look at overall costs, ETrade and TraderZone have the best rates.

This is interesting to see, as some companies may boast about having "free" trading costs, but they may have higher fees in other areas making it less valuable in the long run.

I included this picture as it really shows the truth behind companies that may say they have the lowest fees, but when looking at the overall costs it may not be as good as it seems. As a new investor, this information is very important as it teaches me that I must look at ALL the costs associated with one broker before making a choice.

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1. What did you learn about your topic that surprised you the most?

I cannot over state how much I learned. The research I did on this topic allowed me to explore many different resources, and allowed me to get information on both a basic and in-depth level. I feel very confident in my ability to begin my investing journey. In terms of surprising, I think the vast amount of different choices really surprised me. Every step of the process there are a number of decisions you have to make, such as broker, investment type, how you plan to diversify, and so much more. Each and all of these decisions will impact your portfolio.

2. Provide a real-life example of how this topic is relevant or interesting for you.

This is extremely relevant to me. I will be finishing school in April and will be beginning work soon after. I want to start investing as soon as I am done school, so I can start building wealth as soon I begin my career. I will use what I learned as well as what I learn along the way to financial success.

3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

I will share a large majority of what I learn with both family and friends. I believe understanding the basics is the secret to being successful with investing. There is more to it, but without that fundamental knowledge it is very easy to get lost. With that being said, I will pass on the very basics of investing and will share knowledge on the different types of investments, and terminology.