How to Choose a Broker in Canada: Questrade, Wealthsimple or TD?

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Choosing a broker is one of the most important steps in starting your investment journey in Canada. Below you’ll find a detailed comparison of three popular platforms – Questrade, Wealthsimple Trade and TD Direct Investing – with a breakdown of the pros, cons and who each is best for.

Wealthsimple Trade

  • Founded in Canada and aimed at novice investors.
  • Suitable for trading stocks and ETFs.
  • Fully online, mobile app and web version.

Benefits:

  • $0 commissions for buying and selling stocks/ETFs.
  • No minimum deposit – you can start with as little as $1.
  • Very easy to use – perfect for beginners.
  • There are automatic investments (via Wealthsimple Invest – robo-advisor).
  • You can invest in cryptocurrency.
  • Supports TFSA, RRSP, Personal (non-registered).

Disadvantages:

  • No access to international stocks directly (e.g. European stocks).
  • No ability to buy options, bonds or GICs.
  • Sometimes spreads are higher (especially on illiquid stocks).
  • No advanced analysis or trading tools.

Who is suitable for:

  • Absolute beginners;
  • Those who want to invest a little bit at a time;
  • Those who appreciate simplicity and convenience.

Questrade

  • A Canadian platform aimed at experienced investors and DIY investors.
  • Supports a wide range of assets: stocks, ETFs, bonds, options, IPOs, GICs, etc.

Benefits:

  • Buying ETFs is free.
  • Equity sales commissions from $4.95 to $9.95 (depending on volume).
  • Access to a wider selection of assets and markets (including the U.S.).
  • Support for TFSA, RRSP, RESP, Margin, Corporate accounts, etc.
  • There is a desktop terminal, charts, real-time quotes (at extra charge).
  • Suitable for portfolio rebalancing on your own.

Disadvantages:

  • Minimum deposit of $1,000 CAD to start investing.
  • Interface is more complicated than Wealthsimple’s.
  • Sales commission can “eat up” income if you have a small investment.

Who it’s suitable for:

  • Those who plan to invest $1,000 or more;
  • Investors who want a wide range of options and flexibility;
  • Those who want to enter the U.S. market, buy bonds or options.

TD Direct Investing

  • One of Canada’s largest banks, offers access to a brokerage account directly from online banking.
  • Suitable for those who want to keep investing and banking products “under one roof”.

Benefits:

  • The reliability and protection of a major bank.
  • Can conveniently switch between bank and brokerage accounts.
  • Support for all major account types (TFSA, RRSP, Margin, etc.).
  • Support for IPOs, bonds, GICs and other instruments.
  • There’s a WebBroker platform with analytics, charts and training resources.

Disadvantages:

  • Commissions – starting at $9.99 per trade.
  • No buying ETFs for free (unlike Questrade).
  • Interface can be overwhelming for a newbie.
  • No mobile simplicity like Wealthsimple.

Who it suits:

  • TD customers who want to keep everything in one bank;
  • Those who invest large sums and are not afraid of commissions;
  • Experienced investors who prefer banking infrastructure.
By Blog, Capital investments