Day trading platforms in the US offers very low fees, often close to zero. Unfortunately, platforms like Fidelity, Tastyworks, TD Ameritrade, or even Webull are not currently available in Canada.
A reliable day trading platform is critical since opportunities arrive and goes pretty quick. Also, commission fees can easily add up.
The most common assets to day trade with are stocks, ETFs and options. Options is a great way to leverage returns.
All of these platforms listed below are regulated by the IIROC and a CIPF member. You can visit IIROC and CIPF members list to confirm.
Some personal information like the SIN number may be asked when opening an account to meet IIROC rules, track income taxes, and to meet Federal laws requirement such as anti-money laundering.
The Investment Industry Regulatory Organization of Canada (IIROC) is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
1. Questrade
Being a Questrade client for more than a year, I am satisfied of their customer service and the platform in general. At the first month, the platform can be overwhelming since it has a lot of menus and research tools available.
I was enticed by Questrade because of their $5 per stock trade instead of $9.95 on the big banks. I could’ve saved thousands of dollars if I switched earlier. I originally started with RBC Direct Investing.
Questrade was founded on 1999 and received Canada’s Best Managed Companies award on 2020 for ninth year in a row. Over 200,000 accounts opened annually.
Key Features
Questrade’s key feature that separates it to other platforms in Canada is the ability to trade premarket and after hours on their online platform. The big banks typically offers premarket and after hours trading only by calling an Investment Services Representative, with a fee of around $40 per trade instead of $5-10.
Big banks do not offer online extended market trading.
- Premarket Trading (Starts at 7 am ET)
- After hours trading ends 5:30 pm ET
- Access to Level 2 market data
- Reduced pricing for active traders
- Real-Time Quotes for free
Overall, CAD stocks and all options cannot be traded premarket or after hours. Although premarket opens 4 am ET, trading on Questrade starts at 7 am ET, whereas trading US stocks on the big banks starts at 9:30 am ET.
Regular Pricing
| Stocks (Buy or sell) | 1 cent per share (min $4.95, max $9.95) |
| Options (Buy or sell) | $9.95 + $1.00/contract |
| ETF Buy | Free |
| ETF Sell | 1 cent per share (min $4.95, max $9.95) |
Note: There is an additional ECN fee for stocks and ETFs. This ECN fees is typically $0.01 for every 3 shares. For instance, buying 21 shares will result to an ECN fee of $0.07. In total, buying or selling 21 shares will cost $5.02 ($4.95+$0.07).
Trading 495 or less stocks in a trade will result to a $4.95 fee, 700 stocks will result to a $7 fee, and so on, until the maximum $9.95 for more than 995 shares. Most trades will have a fee of around $5, unless you are trading penny stocks.
Active Trader Prices
Questrade offers two active trader plans: Fixed and Variable plan. Fixed plan is designed for high volume trades and option trading at a low price. Variable plan is great for buying a few shares of expensive companies.
| Fixed | Variable | |
| Stocks | $4.95 | $0.01/share (min. $0.01,max. $6.95) |
| Options | $4.95 + $0.75/contract | $6.95 + $0.75/contract |
| ETF Sell | Free | Free |
| ETF Sell | $4.95 | $0.01/share (min. $0.01,max. $6.95) |
For example, buying 40 shares on the Variable plan will result to a fee of $0.40.
On the other hand, buying 20,000 shares of a penny stock on a fixed plan will result to a fee of $4.95 instead of $9.95 on the free plan.
How to Access Special Pricing
Questrade charges $89.95 to access these reduced pricing. Also, they offer a partial rebate of $19.95 when a client traded more than $48.95 in commissions, and a full rebate if a client traded more than $399.95 in commissions.
Active trader pricing can be activated by going to Account Management >>> Market Data, and select whether you wanted Advanced U.S. streaming or Advanced Canadian streaming.
This can be cancelled anytime, and go back to free plan by going to Account Management >>> Market Data, and select Free data package.
This fee will be charged at the first week of the next month. For example, February subscription will be charged around March 2-5.
In addition to reduced pricing, traders will have access to Level 2 market data. The level 2 window lets you see who the buyers and sellers are at different price levels. Big buy or sell orders by other traders at a different price can be seen at level 2.
For trading options, this active trading pricing is worth it for 20 or more option trades in a month. Otherwise, the free plan is cheaper.
How to Buy and Sell Options on Questrade
2. TD Direct Investing
Regular Pricing
| Stocks (Buy or sell) | $9.99 flat per trade |
| Options (Buy or sell) | $9.99 + $1.25/contract per trade |
| ETFs (Buy or Sell) | $9.99 per trade |
Active Trader Prices
| Stocks (Buy or sell) | $7.00 flat per trade |
| Options (Buy or sell) | $7.00 + $1.25/contract per trade |
| ETFs (Buy or Sell) | $7.00 per trade |
How to Access Special Pricing
Trade 150 or more in a quarter (3 months)
3. QTrade
Regular Pricing
| Stocks (Buy or sell) | $8.75 flat per trade |
| Options (Buy or sell) | $8.75 + $1.25/contract per trade |
| ETFs (Buy or Sell) | $8.75* per trade / Free |
*Qtrade have a list of 100 ETFs that can be traded for free.
Active Trader Prices
| Stocks (Buy or sell) | $6.95 flat per trade |
| Options (Buy or sell) | $6.95 + $1.25/contract per trade |
| ETFs (Buy or Sell) | $6.95* per trade /Free |
How to Access Special Pricing
Trade 150 or more in a quarter (3 months)
Qtrade Direct InvestingTM
Qtrade Welcome Offer: Get 1% cashback or more + $100 sign-up bonus + free trades! Claim Offer – qtrade.ca
Unlimited free trades until Dec 31, 2024, for new clients.
Qtrade Key Features
- Qtrade is Canada’s #1 online brokerage as ranked by The Globe and Mail (2022) and Surviscor (2021).
- $0 minimum required to get started.
- Low-cost trading: most investors’ commission rates start at $8.75 for online equity orders. Lower commission rates are available to Young Investors (30 years old or younger) and for clients who have larger portfolios or who trade more often.
- Option trades: $8.75 +$1.25 per contract
- Offers a commission-free ETF program: 100+ ETFs are free to buy and sell with no minimum.
Qtrade is the trusted online brokerage provider for over 100,000 clients across Canada and the trusted partner of many of Canada’s leading financial institutions. Qtrade has provided online brokerage services to Canadian investors since 2000 and is available in both English and French.
4. RBC Direct Investing
I have used RBC DI for more than a year. Their customer service is easily accessible. My only problem is their high fees, and their premarket and after hours trading is not available online.
Extended hours trading is critical especially on earnings date of a stock.
Regular Pricing
| Stocks (Buy or sell) | $9.95 flat per trade |
| Options (Buy or sell) | $9.95 + $1.25/contract per trade |
| ETFs (Buy or Sell) | $9.95 per trade |
Active Trader Prices
| Stocks (Buy or sell) | $6.95 flat per trade |
| Options (Buy or sell) | $6.95 + $1.25/contract per trade |
| ETFs (Buy or Sell) | $9.95 per trade |
How to Access Special Pricing
Trade 150 or more in a quarter (3 months)
Premarket and After Hours Trading
I have asked RBC Direct Investing, and they said that premarket trading on US stocks starts at 8:00 am ET and after hours trading ends at 5:00 pm ET.
Also, these extended market trading on the big banks cannot be done online, and can only be done by calling them. Instead of regular $9.95 fees, most premarket and after hours trading costs $35 + $0.05 per share (min. $43) since it has to be done by calling them.
| Orders Placed Using an Investment Services Representative | ||
| Investment | Price | Commission Rate |
| Stocks / ETFs | $0.00 – $0.50 | 2.5% of trade |
| $0.51 – $2.00 | $35 + $0.02 per share | |
| $2.01 and over | $35 + $0.05 per share | |
| Options | $35 + $1.75 per contract |
*Minimum $43 per transaction (Source)
5. Scotia iTrade
Regular Pricing
| Stocks (Buy or sell) | $9.99 flat per trade |
| Options (Buy or sell) | $9.99 + $1.25/contract per trade |
| ETFs (Buy or Sell) | $9.99 per trade |
Active Trader Prices
| Stocks (Buy or sell) | $4.99 flat per trade |
| Options (Buy or sell) | $4.95 + $1.25/contract per trade |
| ETFs (Buy or Sell) | $4.95 per trade |
How to Access Special Pricing
Trade 150 or more in a quarter (3 months)
Minimum Amount to Day Trade
The big banks seems to not have a minimum amount to start day trading, but they do not specify on their website. Big banks typically charge $25 additional fee per quarter for accounts less than $15,000. These $25 fee can be waived when a client traded 3 or more times in a quarter.
On the other hand, Questrade requires a minimum of $1,000 to open an account. After opening an account, the minimum amount to keep an account active is $250.
In general, a $2,000 capital is enough to start trading as a hobby or trying to start out. Getting a couple of months before putting in larger capital may be better to gain experience and confidence to handle larger accounts.