Best Day Trading brokers In CANADA | Amazing Adviser

 


What are the best day trading brokers for Canadians?  Whether you are trading a small account, larger account, long biased or short biased, trading stock or options, I have the answers for you in this video.  So there are tons of videos on YouTube on various trading brokers for Americans trading in the US market. 


But what about us Canadians who  are also working hard to make that US dollars  trading in the US stock market because lets  be real, making CAD right now is just. Let  just put it this way a little bit sad right  now.  

Let me clarify first, I am indeed a Canadian, living in Canada, and day trading and investing in the US stock market.
I have many different brokerage accounts for day trading long and short, swing trading, and longer term investing with TFSA or RRSP, and yes I do have some free commission trading accounts as well.

So we’ll dive into the details about how to choose a broker as a Canadian depending on your trading or investing style, and I’ll compare the different pros and cons of each  broker.

 
As always, if you enjoy videos like this, make sure to smash the like button to support a fellow Canadian right here.  

So first let’s talk about Questrade, which is perhaps the most well known broker in Canada.  It’s broker I would recommend for day trading large cap stocks and options, as well as swing trading and long term investing with RRSP  or TFSA. 


But if you predominately trade low  float small cap stocks, do not use questrade,  I have better alternatives later.  Questrade has two commission structures for the active day trader accounts. 

For the fixed rate, you have a flat fee of $4.95 per trade.  And that applies to whichever currency the stock you are buying or selling is in. So either $4.95 CAD or USD. 


They also have variable  rates for 1 cent per share to a maximum of  $6.95. So depending on your account size and  the type of stocks you trade. You can have  two flexible options for fee structure to  choose from.  

To day trade on Questrade platform you’ll  also need data subscription packages. For  questrade the all in one packages come at  an hefty price of $89.95, either in USD or  CAD depending on what you trade. But if you  are a very active trader, those fees are easily  rebatable.  


Their platform Questrade IQ edge offers great  charting for technical analysis, and interface  is easy to use as well. So that's one of the  many things I love about questrade. 

Also,  their customer service is amazing and you  can easily reach them through online chat.  I find this extremely convenient and beneficial  especially when im doing moving positions  and funds around when it comes to TFSA and  RRSP.  


Personally I use Questrade strictly for swing  trading large cap stocks and sometimes options  in my margin account. And I use their TFSA  and RRSP as my long term investing accounts,  where I just buy and hold US stocks and some  ETF’s, and I rarely sell. 


If you are thinking  of opening a questrade account, you can get  $50 free commissions when you sign up through  my referral link below.  But the cons for Questrade is of course their  commission fees are more expensive. 


Which  doeesnt really matter to me since im using  this as longer term swing trading and investing.  But they do have terrible stock availability  when it comes to shorting stocks. 


So if you  are looking at a broker’s ability to short,  interactive brokers the better option in my  opinion-

Interactive brokers is the first broker I  got when I started day trading six years ago.  And of course, what attracted me to interactive  brokers, just like most people, is their low  cost fees.  

At first glance, IB is indeed a lot cheaper  than most other brokers out there. Basically  the cost for buying and selling US listed  stocks is $0.005/ US per share, with a minimum  of $1USD per trade. As for the TSX listed  stocks, the cost would be $0.01 CAD/ share.  


With also a minimum of $1 CAD per trade. As  for options trading, the fees are pretty cheap  as well.  So that's Interactive brokers fees at a glance.  Seems pretty cheap right? 

But where they really  get your money is with the market data subscription  packages. 

Interactive brokers offer a list  data packages for all the exchanges, equities,  futures, options and bonds all separately.  For an average day trader trading the US equities  market such as myself, this is what the subscriptions  would look like and it adds up to about $30  us a month. 


That includes things like Equities  and Options quote for nasdaq exchanges, level  ii etc etc.  

Now if you trade the TSX listed stocks You’ll  need to subscribe to additional Canadian market  data subscriptions, or OTC market data if  you trade those. So the cost would add up  as a monthly subscription. 


Next we have Thinkorswim. 


And before you ask,  theres no free commission trading in Thinkorwim  Canada, theres no free commission trading  with Interactive brokers either. 

The only  thing thats free to do, is if you remember  to hit the like button. Its completely free  to do, and it’ll help with my channel a  lot.  but yes Canadians can still open a Thinkorswim  account with TD Waterhouse. 


The minimum to  get live market data used to be $5000 US,  but unfortunately it’s been raised to $25K.  Sorry about that guys.  What I love the most about TOS is their powerful  charting features, platform customization,  and their On Demand feature. However, the  platform comes with a not so pretty price  tag. 

Their trade commissions are a flat fee  of $6.95 US per trade. That is a pretty steep  commission price. If you trade more than 10-20  trades a day, that cost adds up really quickly.  I personally dont use Thinkorswim to place  any trade executions. 


I just have my good  old $5K sitting there in the account to maintain  my live market data and use their charts.  However, ever since they made Thinkorswim  commission free in the US, the entire platform  has been extremely laggy, and there has been  many times in the past few months where all  the charts froze.  

So honestly I would not recommend using Thinkorswim  for Canadians to day trade, especially now  that they’ve raised their account minimum  to $25k. Leaving $5K in there to keep market  data is one thing, 25 is just too much in  my opinion. 


Oh one last con i should remind  you is that you can only trade US listed stocks,  no Canadian securities on TOS. Sorry guys,  I gotta apologize like a good ol’ Canadian  here. 

 
Next let’s talk about Trade Zero international,  which is an off shore broker in Bahamas thats  known of their extensive locate list for traders  to short hard to borrow stocks. And they also  allow Canadian traders to open accounts. 


So  if you have a smaller account and want to  short these hard to borrow stocks, you can  consider Trade zero.  They are known for their low account minimums  for as low as $500. But how much you deposit  in the account will determine how much leverage  you get when day trading. And honestly, I  wouldn’t open an account with less than  $4-$5K.  


I do have an account with Trade Zero, but  I use it only as my backup account when it  comes to shorting. I have a main account for  shorting which we’ll go over in a little  bit. And the biggest reason I don’t prefer  to use Trade zero is because their Zero pro  platform executions are extremely clunky.  

Sometimes the fills and the speed are a little  bit off. And if you’re trading larger size,  every single cent counts. It doesn’t happen  often but all it takes is once to ruin a trade.  


On top of that, they don’t provide ECN rebates  at TZ international. And there are tons of  fees that just eat up profits every month.  

That being said, if you have less than $30K  to fund your account, Trade zero is really  the only option for Canadians who focus on  shorting hard to borrow stocks. Just make  sure you read all the fine prints and their  fees schedule. 


I have done a trade zero review  and tutorial for you to check out.  But if you’re a baller starting out with  already over 30K, and you want to short hard  to borrow stocks, then I highly recommend  Centerpoint securities. 

They are the best  broker for Canadians when it comes to shorting  low float stocks. 

 
Their borrow fees and commissions are very  reasonable, they offer ECN rebates, and platform  integration with DAS trader, which is the  best execution platform out there wiht the  fastest fills and market data feed.  

Now finally lets talk about these $0 commission  brokers that so many people are asking me  about. And no, there is no Webull or Robhinhood  for canadians. 


I know you see me using some  of these broker accounts based in the US,  and that's because I used to study and work  in the US and I have status there.  The only free commission trading app in Canada  is called Wealth simple trade. But guess what,  it’s not meant for day trading.
 

On wealthsimple  trade’s official website, they specifically  say they discourage day trading on their trading  app. And they can flag your account and block  transactions at their discretion.  

In addition to that, if you try to buy and  sell US listed stocks, you’ll pay a 1.5%  FX transaction fee whether you are buying  or selling, since the app doesn’t allow  you to keep USD balance.  

So in other words, wealthsimple trade app  is only good for swing trading Canadian stocks,  which is what I do. They do not offer margin,  but they offer either cash or TFSA accounts. 

 
And to be honest, this app is for me to gamble  and I have a few weed stocks here to play  with.  Under the same brand umbrella theres also  wealthsimple investing, which is their Robo  investing service focusing on ETF’s of various  sectors and asset allocation according to  your personal risk tolerance. 


This is made  for people who want to just invest regularly  and take a completely hands off approach and  let the algos rebalance positions for you.  

And yes I do have a TFSA and RRSP account  with them for long term investing. Since im  actively day trading every single day and  using that to generate my main income, I want  my investing to be stress free on autopilot  and just have the contributions made automatically  each month. Its been great.
 

I look at them  maybe once every six months and i never touch  anything.  I know I talked about over six different brokers  for Canadians now for both trading and investing.  

So let me just sum it up reall quickly the  best broker in my opinion for each trading  style and purpose.  If you’re day trading and predominantly  long biased, on small caps I would use Interactive  Brokers, large cap and options, I would use  Questrade. 


If you’re short biased with a small account, TZ, big account, Centerpoint.  If you’re looking to swing trading and investing long term, including with tax advantage accounts,  I would use Questrade or Wealthsimple robo  investing.  

If you have some money sitting around left to play with here and there, maybe waelthsimple trade. Now if you’re rich and just want to park $25k somewhere and get to use some pretty looking charts, then I’d open  with TD Thinkroswim.  


So friends this is it for today, we will again meet in a new article. Till then stay tuned to our blog.
Thank You

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