Blog Article Summary: The BEST Broker in Canada for Your Needs

Objective

Provide a comprehensive, no-nonsense analysis of the best brokers in Canada for different types of registered accounts, focusing on fees, features, and suitability for various investment needs.

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Key Points

Core Belief

• "The best broker for you depends on your needs" is a myth; the best brokers offer top features with the lowest commissions.

Broker Recommendations by Account Type

• TFSA & RRSP:

  • Best Option: Interactive Brokers (IBKR).
  • Why: Lowest commission and currency conversion fees, especially good for both Canadian and US investments.
  • Limitation: Doesn’t support FHSA and RESP as of now.

• RESP & FHSA:

  • Best Option: Questrade.
  • Why: Supports all registered accounts, decent commissions (with Norbert's Gambit hack for USD conversion), good research tools.

Comparison Parameters

1. Commission Charges
2. Currency Conversion Fees
3. Available Account Types
4. Extra Features (Ease of Use, Research Tools)
5. Customer Reviews

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Broker-by-Broker Breakdown

1. Interactive Brokers (IBKR)

• Founded: 1977 (Canada: 2000), award-winning.
• Fees:
  • Stock commission: ~$1 CAD or less per order (as low as $0.05).
  • Currency conversion: Flat fee (~$3 CAD), not percentage-based.
• Accounts Supported: TFSA, RRSP, Non-registered Savings.
• Features: Good free tools for research, intuitive after familiarizing.
• User Experience: Generally positive, highly rated.
• Cost Example: Monthly $1,000 USD investment → total fees ~$4 CAD (stable regardless of amount).
• Limitation: No FHSA or RESP.

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2. Questrade

• Canadian Broker, 25+ years.
• Fees:
  • $0 commission on buying stocks and ETFs.
  • Currency conversion: 1.5% fee (e.g., $1,000 CAD to USD = $15 CAD fee).
  • Norbert's Gambit: Reduces conversion fee to ~$10, takes 3–5 business days.
• Accounts Supported: TFSA, RRSP, RESP, FHSA, and more.
• Features: Free premium research tools (Questrade Edge, TipRanks).
• User Experience: Loved by long-term investors, especially if buying/holding.
• Cost Example: $1,000/month US investments: $15 CAD (regular FX) or ~$10 with Norbert's Gambit.
• Limitation: Norbert's Gambit takes time—can miss fast-moving opportunities.
• Promo: $50 cash bonus with referral, if deposit $250+.

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3. Wealthsimple

• Founded: 2014, Canadian.
• Fees:
  • $0 commission for trades.
  • 1.5% currency conversion (both buying and automatic conversion when selling US assets).
  • USD account feature: $10/month, but still pay conversion each time.
• Accounts Supported: TFSA, RRSP, FHSA (RESP only as a managed account with fees).
• Downsides:
  • No Norbert’s Gambit.
  • Automatic currency conversion triggers repeated 1.5% fees.
  • RESP only as a managed account with extra fees.
• Features: Simple interface, geared to beginners.
• User Experience: Mixed; caution on total fees.

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4. MooMoo

• Subsidiary of Futu Holdings (Hong Kong, NASDAQ-listed).
• Canada launch: 2023.
• Fees:
  • Commission/platform: ~4 CAD per $1,000 investment.
  • Currency conversion: 0.09% + 2 CAD.
• Accounts Supported: TFSA, RRSP.
• Customer Reviews: Limited data, check app store feedback.
• Outlook: Low fees, but new to Canada and less established.

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5. Major Banks

• Fees:
  • High commission: $9+/transaction.
  • Currency conversion: >2%.
  • Often restricted to mutual funds (high MER).
• Suits: Those who want simplicity or have no time/interest for DIY investing.
• Downside: High long-term costs, limited DIY options.

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Taskeen’s Personal Strategy

• TFSA, RRSP: Interactive Brokers (IBKR)
• RESP, FHSA: Questrade
• Reason: Prefer simplicity, low cost, and not having accounts with multiple brokers.

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Other Key Takeaways

• Norbert’s Gambit: Best way to minimize US currency exchange fees at Questrade (takes a few days).
• Holding USD: Questrade stores your US dollars; Wealthsimple does not (unless you pay extra).
• RESP restriction: Wealthsimple only offers RESP as a managed account (not ideal for DIY/low-fee index investing).
• DIY Investing Recommended: More control, lower costs, good free tools available.

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Final Advice

• Choose brokers mainly based on long-term cost (commissions + currency conversion).
• Consider which registered accounts you need and supported by broker.
• Read customer reviews and use referral links for bonuses if signing up.
• Avoid paying high fees to banks for convenience—DIY can be simple and much cheaper.
• More resources, tutorials, and recommendations can be found in the linked videos.

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Further Steps

• If interested, use provided referral links for bonuses and channel support.
• Beginners can watch the suggested tutorials for step-by-step guides to investing in Canada.

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By Taskeen, The Urban Fight