The rise of commission-free trading platforms has revolutionized how Canadians invest. These platforms allow investors to buy and sell stocks, ETFs, and other securities without paying the hefty fees associated with traditional brokerages. For those looking to build or manage their portfolios without being burdened by commissions, here are the top commission-free trading platforms in Canada, with details on what sets each apart, including the pros and cons to consider before making your choice.
1. Wealthsimple Trade
Wealthsimple Trade has become one of the most popular platforms for beginner investors in Canada due to its straightforward, commission-free trading experience. The platform allows users to buy and sell Canadian and US stocks and ETFs directly from their mobile devices, making it ideal for those new to investing or looking for an easy-to-use platform.
Pros:
- No commissions on trades of stocks and ETFs
- Simple, intuitive mobile interface that is perfect for beginners
- No account minimums, allowing anyone to start investing
Cons:
- Currency conversion fees for US trades, which can add up for frequent traders
- Limited research tools, making it less appealing for advanced investors
- No advanced trading options like margin or short selling
2. National Bank Direct Brokerage (NBDB)
National Bank Direct Brokerage (NBDB) stands out by offering commission-free trading on a range of securities, including Canadian and US stocks, ETFs, and options. This platform is a great choice for those who want a robust feature set combined with the security and trust of a well-established Canadian bank.
Pros:
- Commission-free on multiple asset types, including options
- Comprehensive research tools for investors looking for in-depth analysis
- Access to international markets, expanding opportunities for diversification
Cons:
- Less intuitive interface compared to competitors like Wealthsimple Trade
- Higher learning curve, especially for new investors
- Currency exchange fees for US stocks, which can be costly for frequent cross-border traders
3. Desjardins Online Brokerage (Disnat)
Desjardins Online Brokerage, or Disnat, offers commission-free trading on select ETFs, making it an attractive option for ETF-focused investors. With a variety of advanced tools tailored to more active traders, Desjardins is perfect for those who want more control over their investment strategy without commission costs on some assets.
Pros:
- Free ETF trades on a range of offerings, which is beneficial for passive investors
- Advanced tools for active traders, including detailed research and analysis
- Low minimum requirements to unlock additional features and benefits
Cons:
- Inactivity fees, which can eat into the value of smaller accounts
- Limited commission-free options outside of select ETFs
- Not as beginner-friendly due to the platform’s more advanced tools and features
Choosing the right commission-free trading platform depends on your needs as an investor. Wealthsimple Trade excels in ease of use, NBDB offers comprehensive tools for serious investors, and Desjardins Online Brokerage provides ETF traders with an attractive commission-free model. Weigh these options carefully to find the platform that best aligns with your goals.
Which Platform Would I Choose?
Overall, I’d probably choose Wealthsimple Trade if I were to sign up for a commission-free platform today. The user interface is amazing; the instant deposit functionality makes sure I can deposit today and buy today instead of waiting, and their mobile app is the best.
