Best Canadian Stock Brokers for Day Traders



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If you are a day trader or seek to become one in Canada, we have the run down as to which brokers are best suited to your new career.

99% of the time Questrade is the best broker for Day Trading in Canada, so we wholeheartedly recommend it to anyone.

Sign up for Questrade here and get $50 in FREE trades

If you are considering becoming a day trader, you should do some further reading, on this website or elsewhere, about the risks and difficulties of doing so. Statistically, many Canadians who day trade do not succeed and you should get educated before you even attempt it. That being said, as a day trader, one of your biggest enemies are expenses.

Be they brokerage fees or lack of a steady outside income, being a day trader is expensive. This is why we have assembled a list of brokerages in Canada that will minimize your fees.

Comparison of Brokerages.

There is no one Brokerage that can meet the needs of every Canadian day trading individual. Two of the discount brokers are the best for day trading and many day traders may choose to have account with both brokerages in order to maximize their expenses savings.

The two equity brokerages we at Canada Stock like for day traders are Interactive Brokers (IB) and Questrade. We will now detail how each is best suited for day trading.

Transaction Fees: Interactive Brokers charges a very low fee for trading. Their fees are $0.005 per stock with a minimum of $1 per transaction. Depending on what stocks you are trading and in what quantities, this may be the best option for you. For instance, if you are trading regularly 100 shares of a stock that trades at $50 per share, then you would only be paying $1 per transaction. However, if you are day trading small cap stocks (small price stocks) or even penny stocks, then Interactive Brokers trading fees may become prohibitive. For instance, if you are day trading penny stocks that cost $0.01 per stock in quantities or 10,000,000 then IB can be very troublesome (they charge up to 0.5% of total trade value).

This is where Quest Trade comes into play. Questrade currently charges $4.95-$9.95 per trade of securities. So, if you are trading the first example of 100 stocks of a $50 dollar company, it will cost you 5 times as much as IB. However, if you are trading the 10,000 share example, it would only cost you $9.95!

Another thing to consider is Options day trading. Interactive brokers has access to - for a relatively low monthly fee, virtually every world market and options, futures, forex markets. If you are interested in day trading any of the above, their world class trading platform makes it easy to do and easy to use. Quest trades platforms - especially their FREE platforms - leave something to be desired. When we buy a stock on Questrade, we usually use IB to track perfomance and real time share prices. Their platform is just too cumbersome.

There are some specific instances when you may want to use the other brokers. They are as follows:

The big bank brokers, for instance, offer incentives for high net worth individuals. If you are one of these rare few, then you might be better off going with one of them. For most of our readers, however, the 1st two options we presented are probably the best options.

Disclosure: the author does not day trade. Please read our full disclosure.