Interactive Brokers Canada Review



Lowest commission Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max
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If you're a high frequency trader, then this is most likely the broker for you.

Interactive Brokers is a very feature rich, full service online broker. If you are a day trader, there is a 99% chance that this is the broker for you (you may need to use it in conjunction with Questrade). Allow us to explain:

 

 

Interactive brokers charges CAD 0.01 per share CAD 1.00 0.5% of Trade Value plus exchange fees(2) 100 Shares @ CAD 50 Share Price = CAD 1.00. So, if you are high frequency trading stocks with a large share price, you are paying TINY broker fees.

Beyond the trading fees there are NO monthly fees unless you trade fewer than 10$ worth of trades (in which case you are charged $10 per month). For a high frequency day trader, $10 might normally represent seconds of trading. The only other costs are the extras you might sign up for. IB has access to market data from around the world, but you usually have to pay an extra monthly fee for each data subscription (which varries).

The one area of day trading in which trading through interactive brokers exceeds questrade in fees are small, tiny and micro share price equities. If you are day trading penny stocks, the commisions can be quite large. In this case, we would recommend you use Questrade which has a maximum commision of $10 per trade. So you can buy millions of a penny stock and only pay $10 comission.

Extras

As we mentioned previously, differeing subscriptions can cause your monthly fees to IB to vary wildly.

Bottom Line: Our final review of Interactive Brokers is 4/5 comprehensive and 5/5 for day traders.

Note: all the details of this review might be out of date or innacurate, please consult IBs website for up to date info.