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Thadeus Geodfrey is an experienced and celebrated writer and self-taught trader specialising in cryptocurrencies and forex. Market analysis, identifying fraudulent brokers, and security are his cup of tea. At BrokerRaters Thadeus develops educational materials and user-guides, offer market insights, ensures our content conforms to the best standards. Join Thadeus to succeed in your trading endeavours.
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Low trading costs go hand in hand with increased potential profits. That is why we encourage our readers to trade with affordable service providers. When it comes to affordability, discount brokers take the cake. With a discount broker, you get the opportunity to cut costs courtesy of lower commissions, fees, and spreads.
Below, we’ve recommended and reviewed the best discount brokers in Canada. Our experts picked these brokers after spending many days researching, testing, and comparing countless service providers. Multiple crucial factors, from the service providers’ regulatory status and security to fees and assets, guided the entire process and influenced our team’s decisions.
List of the Best Discount Brokers
- Interactive Brokers – Overall Best Discount Broker in Canada
- OANDA – Best Discount Broker for Canadian Forex Traders
- XTB – Best Discount Broker for CFD Traders in Canada
- Saxo – Best Discount Broker for Advanced Traders in Canada
- AvaTrade – Best Discount Broker for Beginners in Canada
In This Guide
Canadian Discount Brokers: Comparison Table
The discount brokers Canada we’ve paraded here are the best for good reasons. We didn’t pick them randomly or based on hearsay, far from it. Our team invested lots of time and effort towards finding them. We handed this task in a systematic manner. First, we researched and evaluated the most reputable service providers in the region. Then, we pitted them against each other and chose 5 that eclipsed the rest, where aspects like regulatory status, charges, and asset range are involved.
Our extensive guide has outlined the best Canadian discount brokers we handpicked from the crowd. All are exceptional service providers, but you can’t commit to all of them, can you? You need to assess these brokers and pick one that is guaranteed to help you achieve your goals. While evaluating the recommended brands, we encourage you to factor in the elements that helped us choose the best Canadian brokers, from licensing to fees and supported payment methods.
Start comparing the recommended discount brokers using the elements outlined in the Canada discount brokerage comparison table below.
| Best Discount Broker Canada | License & Regulation | Support Service | Software | Payment Method | Demo Account |
|---|---|---|---|---|---|
| Interactive Brokers | IIROC, FCA, SEC, FINRA, ICS, CBH, ASIC, SFC, MAS | 24/5 | IBKR Desktop, IBKR Trader Workstation (TWS), IBKR Mobile, IBKR GlobalTrader | Check, wire transfer, direct bank transfer (ACH) | Yes |
| OANDA | IIROC, ASIC, MAS, FCA, CFTC, PFSA, FSA, FSC BVI | 24/5 | OANDA Mobile, OANDA Web, MetaTrader 4, TradingView | Credit/debit cards, Bank transfer, Wire transfer, Skrill, Neteller | Yes |
| XTB | IIROC, MiFID, FSCA, ASIC, CySEC, FSA, FCA | 24/5 | xStation 5, xStation Mobile | Neteller, Credit/debit cards, Bank transfer, Skrill, PayPal | Yes |
| Saxo | IIROC, ASIC, FCA, FSA, MAS, FINMA, JFSA, SFC, AFM, FSMA | 24/5 | SaxoTraderGo, SaxoTraderPRO | Bank/wire transfer, debit card | Yes |
| AvaTrade | IIROC, ASIC, FCA, MAS, FSCA, CBI, CySEC, PFSA, B.V.I FSC, FSA, ADGM, ISA | 24/5 | WebTrader, AvaOptions, AvaTrade App, Mac Trading, MT4, MT5, Automated Trading | Credit/debit cards, Neteller, Skrill, Wire transfer, WebMoney | Yes |
Brokers Short Overview
As seasoned traders and researchers, we advise against trading with a broker before checking the mandated fees and supported assets. Ignoring the first element can lead to financial ruin by exposing you to excess fees guaranteed to erode your profit margins. On the other hand, if you don’t examine supported assets, you might spend valuable time signing up with a specific broker only to realize it doesn’t have your preferred instruments after completing the rigorous registration process.
The tables below highlight our recommended brokers’ mandated fees and supported assets. Use them to compare the best service providers and identify the most suitable ones.
Fees
| Best Discount Broker Canada | Minimum Deposit Requirement | Commission/ Spreads | Deposits/ Withdrawals | Inactivity Fee |
|---|---|---|---|---|
| Interactive Brokers | $0 | From 0.08% | From $10 withdrawal fees | $0 |
| OANDA | $0 | From $0 | $20 withdrawal fee | $10 monthly |
| XTB | $0 | From 0% | Free | $10 monthly |
| Saxo | $0 | From 0.03% | $0 | $0 |
| AvaTrade | $100 | From 0.13% | Free | $50 after every 3 consecutive months of inactivity |
Assets
| Best Discount Broker Canada | Stocks | Forex | Crypto | Commodities | Indices | ETFs | Options |
|---|---|---|---|---|---|---|---|
| Interactive Brokers | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| OANDA | Yes | Yes | Yes | Yes | Yes | Yes | No |
| XTB | Yes | Yes | Yes | Yes | Yes | Yes | No |
| Saxo | Yes | Yes | No | Yes | Yes | Yes | Yes |
| AvaTrade | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Our Expert Opinion about Discount Brokers in Australia
Our experts are committed to recommending nothing short of the best service providers. So, rest assured that we’ve recommended the most exceptional discount brokers in our guide. Pick one of these outstanding brands and enjoy myriad perks, from unmatched security and friendly fees to a commendable range of financial assets and terrific customer support services.
But before opening an account with a promising discount broker, do your homework and conduct extensive independent research. Additionally, scour the internet for reviews and testimonials from past users.
1. Interactive Brokers – Overall Best Discount Broker in Canada
Our top pick, Interactive Brokers, is a respected discount broker that boasts over 2.9 million client accounts. The company is headquartered in Greenwich, US, but operates in over 34 countries, including Canada. It adheres to strict IIROC regulations and is a member of the Canadian Investor Protection Funds. The latter ensures your funds are safe and insured against issues like insolvency, which might affect the company in the future.
Regarding pricing and charges, Interactive Brokers outshines most of its competitors. This broker’s PRO clients enjoy low commissions starting from $0 on stocks and ETFs. Forex brokers also get the opportunity to trade spot currencies with spreads as low as 0.1 pips. To enjoy such juicy spreads and commissions, just sign up with IBKR and fund your account with any amount you can afford. The latter is possible since this service provider has no minimum deposit requirement.
IBKR’s platform offers an astounding selection of financial products. While exploring it, we discovered thousands of stocks, ETFs, currency pairs, and other instruments. Check if the platform has your favorite products, which is highly likely. The impressive selection of assets also makes portfolio diversification a breeze.
We also encourage Canadians to trade with Interactive Brokers since the platform has diverse, robust tools, including bracket orders, Fundamentals Explorer, and the Accumulate Distribute algorithm. These are designed to help you increase your profit potential, leverage accurate data, and get the best price deals.
Interactive Brokers
✔$0 minimum deposit requirement
✔No account inactivity fees
Pros & Cons
Fees
Trading Assets
Pros
- Offers investor protection to Canadians
- No minimum deposit requirement
- Thousands of tradeable instruments are offered
- Tight spreads and low commissions starting from $0
- Top-notch educational resources
- Provides premier trading tools at no additional cost
Cons
- High fees for wire withdrawals
- The trading platform might be overwhelming for beginners
After conducting thorough research and extensive assesments, we can confidently categorize Interactive Brokers as one of the most affordable service providers out here. As we’ve already mentioned, this company has no minimum deposit requirement. Plus, it allows traders to fund their accounts with payment methods like ACH and wire transfer at no additional cost. We also highly recommend IBKR because, unlike other brokers, it doesn’t require traders to pay inactivity fees for dormant accounts.
Here’s an overview of the Interactive Brokers fees and charges our team unearthed during our evaluation and exploration:
| Type | Fee |
|---|---|
| Account opening and maintenance | $0 |
| Deposit | $0 |
| Withdrawal | Yes |
| Inactivity | $0 |
| Overnight charges | Yes |
| Currency conversion | 0,5% |
2. OANDA – Best Discount Broker for Canadian Forex Traders
IIROC-regulated OANDA is, in our expert opinion, the best discount broker for forex traders in Canada. This amazing service provider welcomes new customers with a juicy bonus. Its user-friendly interface is optimized for both newbies and advanced forex traders. We highly recommend it to all our readers.
As a discount forex broker, OANDA offers some of the best deals in the industry. For starters, its users have access to 68+ pairs, from CAD/JPY and CAD/CHF to EUR/AUD, EUR/CAD, and AUD/CAD. Forex traders can also diversify their portfolios with CFDs on commodities, indices, metals, and other products. The highlight is that his broker has thousands of real shares that traders can invest in, including top options like Pfizer, Microsoft, and Unilever.
OANDA’s no minimum deposit requirement is another factor that has enabled this broker feature in our guide to the best discount brokers in Canada. Deposits are also free on the platform, which is incredibly useful in lowering overall costs. Not to forget, with this broker, traders get access to myriad potent platforms, including TradingView and MT4, and a highly rated forex trading app for on-the-go trading.
We also urge our traders to consider OANDA because this broker has outstanding customer support. We tested it using the supported channels, from phone to email and live chat, and the results were breathtaking. Our questions and concerns were addressed promptly.
OANDA
✔Offers a negative balance protection
✔Customizable trading platform
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- Offers the most important currency pairs
- Considerable range of products for portfolio diversification
- Traders have access to TradingView and MT4
- Wonderful customer support service
- Juicy welcome bonus for new signups
Cons
- Up to $100,000 initial deposit requirements for premium clients
- $10 monthly inactivity fee
OANDA broker has a clear fee structure with no hidden charges. This makes it easier for you to know how much you will be paying once you make a commitment. Some of the fees to incur at OANDA include the following:
| Trading and Non-Trading Charges | Details |
|---|---|
| Account Opening | $0 |
| Management Fee | $0 |
| Minimum Deposit Requirement | From $0, depending on your jurisdiction |
| Commission | From 0% on US-listed shares |
| Spreads | From 0.6 points |
| Deposits and Withdrawals | Free deposits. Withdrawal fees apply based on the payment method used |
| Inactivity | $10 after 12 months |
| Overnight Funding | Varies based on global market conditions |
| Currency Conversion Fee | Calculated by applying a 0.5% mark-up or mark-down |
3. XTB – Best Discount Broker for CFD Traders in Canada
If you are a CFD trader based in Canada, we strongly urge you to check out XTB. This discount broker offers CFDs on thousands of global markets and countless asset classes. With this service provider, you can trade CFDs on currency pairs, shares, indices, and other financial instruments. While doing so, you’ll get ample opportunity to reap from low spreads starting from 0.008 pips and profit from both falling and rising asset prices.
XTB also gives CFD traders the opportunity to diversify their portfolios with numerous financial assets. For starters, while trading with this platform, you can hedge against risk by investing in over 3,600 stocks affiliated with established companies like Tesla, Alphabet, and Apple. The broker also offers over 400 ETFs to investors, and they come with super-low commissions starting from 0%. Such investable products have made it possible for XTB to gain the upper hand and outdo most of its peers.
If you are considering signing up with XTB and are worried about stringent requirements, we have good news. This broker has no minimum deposit requirement and gives you the opportunity to start your trading career with whatever is within your financial limits, even $1. While using the platform, you will be allowed to fund your account and cash out without incurring any additional fees.
XTB is also super-friendly to beginners who must learn the ropes before diving in. The broker’s Education platform has countless invaluable learning materials, from guides to opening a trading account to articles covering the intricacies of diverse financial instruments.
XTB
✔User-friendly interface
✔Expert customer support services
Pros & Cons
Fees
Trading Assets
Pros
- Supports thousands of instruments, including CFDs on commodities, indices, and forex
- No minimum deposit requirement
- Quality educational materials for beginners and advanced traders
- Low spreads starting from 0.00008 pips
- Allows traders to invest in stocks and ETFs
Cons
- $10 monthly account inactivity fee
- Low deposit amounts can attract high fees
We love XTB because it is one of the most affordable brokers out here. How so? For starters, there are no XTB minimum deposit requirements. Moreover, the broker’s users don’t have to pay additional fees while funding their accounts or cashing out. Most importantly, XTB doesn’t require traders to cover account opening, maintenance, or inactivity fees. In the table below, we’ve highlighted the fees, commissions, and costs you should take note of before committing to XTB.
| Fees and Charges | Amount |
|---|---|
| Account opening and maintenance | $0 |
| Minimum deposit | $0 |
| Deposit fee | $0 |
| Withdrawal fee | $0 for withdrawals above $50; $30 for withdrawals below $50 |
| Investing commission | From 0% |
| Spreads | From 0.3 pips |
| Currency conversion fee | 0.5% |
| Inactivity fee | $0 |
4. Saxo – Best Discount Broker for Advanced Traders in Canada
After exploring Saxo for many hours, we discovered several powerful platforms that make this service provider perfect for advanced traders. The first and most outstanding is SaxoTraderPro, an exceptional, fully customizable platform tailored exclusively for professionals. It’s equipped with high-performance tools that make managing and executing orders incredibly easy for experienced traders. The other platform, SaxoInvestor, allows professionals to invest in stocks, ETFs, and other products.
As a professional, switching to Saxo will give you access to a commendable variety of financial instruments. This broker offers various leveraged product categories, from forex and futures to commodities and forex options. You can also trade CFDs on commodities, stocks, indices, and other assets on the Saxo trading platform.
Saxo’s product catalog isn’t exclusively limited to tradable financial instruments. This broker’s users can also access a broad selection of investment products, including stocks, ETFs, bonds, and mutual funds. You’ll never get a better opportunity to trade popular markets and diversify your trading portfolio effectively.
We can’t forget Saxo’s premium offerings. As a pro, you can opt for Saxo’s premium accounts, which allow members to receive premier services, pay less, and trade more without any hassles. For instance, Platinum account holders enjoy up to 30% lower prices and priority support with Saxo’s outstanding offerings.
Pros & Cons
Pros
- Offers over 71,000 financial instruments to its users
- Powerful proprietary platforms ideal for advanced traders
- Unique boons for premium account holders, including lower prices
- Supports investment products like real stocks, mutual funds, and ETFs
- No minimum deposit requirement
- Zero account inactivity fee
Cons
- No third-party trading platforms
- Higher commissions for classic account holders
5. AvaTrade – Best Discount Broker for Beginners in Canada
Our expert opinion of AvaTrade is it’s the best discount broker for beginners and novices. This provider offers an optimized trading platform with a beginner-friendly, easy-to-navigate interface. Start your journey here if you have yet to familiarize yourself with complex systems. The platform’s simplicity will make it easier to immerse yourself in trading without wasting time dealing with unnecessary complexities.
Not to forget, AvaTrade offers comprehensive educational resources. A wealth of free materials are available on Ava Academy, from guides and articles to eBooks and webinars. Plus, the platform allows beginners to take rich courses and test comprehension with invaluable quizzes. If you are a newbie, we encourage you to use this broker’s learning tools and materials to learn everything from fundamental concepts to the ins and outs of AvaTrade’s trading platforms. Afterward, test your trading skills in a risk-free environment with a free AvaTrade demo account.
AvaTrade’s simple and transparent policies also make this broker ideal for beginners. The company has detailed everything clearly, from its $100 to its terms and conditions. Moreover, its trading platform has most of the financial instruments that novices and intermediate traders can use to take their trading career to the next level, including CFDs on indices, forex pairs, commodities, and more.
AvaTrade
✔Regulated by FCA
✔The platform supports algorithmic trading
Pros & Cons
Fees
Trading Assets
Pros
- First-rate free courses, guides, tutorials, and other educational resources
- Newbies can practice risk-free with demo accounts
- Simple, intuitive, and beginner-friendly user interface
- Third-party platforms like MT4 and MT5 are available
- Beginners can learn from and copy the most successful traders
- A vibrant community where beginners can socialize with their peers
Cons
- Higher inactivity fees for dormant accounts
- Limited financial instruments compared to its peers
Our experts investigated the AvaTrade broker’s fees and charges. We first noticed that the platform has a modest minimum deposit requirement of $100. What’s more, its users pay no additional costs while depositing funds or cashing out. That makes AvaTrade an ideal broker for both cost-conscious and newbie traders who want to test their waters with small capital before going all in.
That said, AvaTrade requires dormant account holders to pay $50 after every 3 consecutive months of inactivity. Moreover, if you let your account remain inactive for over successive months of inactivity, the broker will charge you a $100 administration fee. Not to forget, AvaTrade requires traders who hold positions overnight to cover a premium.
Here’s a breakdown of the fees you should expect to encounter while trading with this service provider:
| Fees and Charges | Amount |
|---|---|
| Spreads | From 0.9 pips |
| Administration fee | $100 |
| Inactivity fee | $50 |
| Overnight premium | Yes |
What are Discount Brokers?
Unlike full-service brokers, discount brokers allow traders to buy and sell financial securities at lower commission rates. These service providers have lower fees, don’t provide advisory services, and give their clients access to online trading platforms. Discount brokers are the best option for cost-conscious traders and investors who want to avoid high costs and don’t need extensive advisory services.
How Do They Work?
To use a discount broker, you first need to open a trading account and top it up. Then, go through the product catalog and choose your preferred financial instrument. Finally, place your order and use the appropriate risk management tools to mitigate your exposure to significant losses. Most discount brokers have optimized platforms for mobile devices, desktop computers, and tablets, so you shouldn’t have any problem trading from the gadget you have.
How to Choose the Best Discount Broker in CA
As a Canadian, the innumerable service providers in your region can complicate your search for the best discount broker. If you make one slight mistake, you might expose your funds and sensitive data to malicious entities like fraudsters and scammers. To avoid crippling issues like loss of funds and catalyze your journey to becoming a successful trader, vet the service providers at your disposal and pick the most reliable using the following factors:
Regulation and licensing
Fees and charges
Available trading platforms
Customer support
Educational resources
Online ratings and reviews
For the best experience and optimum security, trade with a discount broker licensed and regulated by a recognized Canadian authority like IIROC. Also, check if your chosen provider is authorized and regulated by top-tier international regulators like ASIC and the FCA.
Since you’re searching for a discount broker that can help you cut back on expenses, signing up with an affordable service provider should be a top priority. To find a broker with cheap fees and charges, compare the costs associated with different brands. Focus on relevant aspects like transaction fees, spreads/commissions, and account inactivity charges.
The best trading platforms have top-notch, responsive proprietary trading platforms. Some outstanding service providers also host popular third-party solutions like MT4 and MT5. With that in mind, we urge you to check and test every provider’s trading platform before committing. Use demo accounts to limit risk exposure and avoid costly mistakes if possible.
To ensure you get quality support when you need it most, prioritize trading with a broker that offers responsive support services, especially during trading hours. Also, an ideal service provider should allow clients to use channels that facilitate prompt, seamless communication, like live chat, phone, and email.
If you are a novice who needs to learn the basics or an advanced trader who values ongoing education, look for a discount broker with world-class educational resources. These valuable resources range from free online courses and guides to webinars, how-to videos, and tutorials.
The easiest and quickest way to gauge a discount broker’s reputation is by evaluating online ratings and reviews. These elements are plenty on popular independent sites like the App Store, Google Play, and Trustpilot. While reading and assessing testimonials and ratings, pay close attention to complaints and lower ratings since they might warn you of catastrophic issues before you commit to a specific broker.
Pros & Cons of Trading with Cheap Broker
Like with all service providers, trading with discount brokers comes with numerous perks and drawbacks. Let’s summarize our guide with an outline of the pros and cons that we associate with trading with the cheapest brokers in Canada.
Pros:
- Discount brokers have low commissions and other charges.
- Most discount brokers have user-friendly online trading platforms.
- You can access a considerable range of assets through a discount broker’s platform.
- Beginners can increase their knowledge base with learning materials provided by the best discount brokers.
- Discount brokers save traders and investors from complications that often arise from overreliance on financial advisors.
Cons:
- Discount brokers don’t offer extensive financial advisory services or investment recommendations.
- Since they offer limited guidance and advisory services, discount brokers expose their clients to losses arising from poor decisions, overtrading, etc.
Conclusion
Compare the recommended discount brokers’ alignment with your trading needs and preferences. Then, pick a service provider with everything you need to build a formidable trading career in Canada. But beware: your success as a trader will hinge on more than your chosen broker or trading platform. You must also be knowledgeable, skilled, and highly disciplined. Additionally, you must have a good strategy and avoid making impulsive decisions at all costs.
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