If you’re looking to become a self-directed investor, there are many options you can explore to build and expand your stock portfolio. However, it’s not always easy to lock down the most lucrative or affordable investments. That’s when paying a trading brokerage to find them for you may be a far better option.
Interactive Brokers Canada is a top-rated brokerage that’s been offering investment trading services to Canadians for over 20 years. Keep reading to learn more about Interactive Brokers Canada and how they can help improve your stock portfolio.
Who Is Interactive Brokers Canada?
Interactive Brokers (IBKR) is a US trading platform that was founded in 1978. They now operate in over 135 investment markets and several countries, like Japan, Estonia, the UK and Canada. Additionally, their brokerage expedites at least 2 million trades a day, has more than one million client accounts and holds $9.93 billion in equity capital.
In 2000, they created Interactive Brokers Canada, which is based in Montreal and is a member of the Industry Regulatory Organization of Canada (IIROC) and the Canadian Investors Protection Fund (CIPF). Although smaller than their parent company, they use ‘SmartRouting’ technology to offer the best stock prices in 33 countries and 150 markets.
Types Of Accounts Offered At Interactive Brokers Canada
Interactive Brokers Canada provides several kinds of financial accounts, such as:
- TFSA – A tax-free savings account allows you to earn interest on every dollar you deposit into it. This can help you reach future savings goals faster.
- RRSP – A registered retirement savings plan is similar to a TFSA, only the money inside is tax-sheltered, so you only get taxed on it when you make a withdrawal.
- Individual & Joint – Interactive Brokers Canada offers accounts that can be used by individual residents and their spouses or common-law partners.
- Small Business – If you own a small business or corporation in Canada, this type of account lets you manage your revenue and employee payroll better.
Types Of Investments Offered At Interactive Brokers Canada
As a major trading brokerage, IBKR Canada also provides a variety of investment types, like:
- Stocks – Interactive Brokers Canada offers stock trading services in more than 150 markets, including Alpha ATS, LYNX and the Toronto Stock Exchange (TSX).
- Exchange-Traded Funds (ETFs) – You can use IBKR Canada to trade equity and bond ETFs on exchanges, such as OMEGA ATS, PURE and Chi-X.
- Bonds – Interactive Brokers Canada gives you access to more than one million government-fixed income, municipal and corporate securities countrywide.
- Futures – With your IBKR Canada membership, you’ll also have the ability to trade future contracts in 35 markets, including the Montreal Exchange (TMX).
Interactive Brokers Canada Features
IBKR Canada has a number of features that can help you choose the best investments for your portfolio, including:
- IBKR Mobile – This app is available for iOS or Android and gives you advanced quotes, innovative trading tools and two-factor security when investing on-the-go.
- Trader Workstation – The TWS is an all-in-one platform with real-time market data, stock monitoring and tools for investors, traders or institutions.
- IBKR APIs – Solutions that let you build a custom trading platform or automate investments with IB SmartRoutingSM, industry standard technology and more.
- Client Portal – IBKR’s Client Portal is an intuitive web application where you can trade, adjust charts, monitor quotes and check your account balances 24/7.
Interactive Brokers Canada Fees
IBKR Canada charges relatively low trading fees compared to a lot of other investment platforms out there. However, the overall cost of your trades can vary greatly depending on what types of securities you’re trading. For instance, when it comes to their stocks, ETFs and warrants, Interactive Brokers Canada has two different pricing systems:
- Tiered – Transparent volume-tiered broker commissions that decrease according to the volume, regulatory, clearing and exchange fees of your trade. Some or all of the savings will be passed to you whenever an exchange leads to a rebate.
- Fixed – Low rate commissions that cost a fixed price per share or a set percent of a trade’s value. If you trade US stocks, ETFs or warrants, any transaction fees will go through on all stock sales. This includes exchanges and regulatory fees.
With tiered-pricing, your trade volume per month is layered, which makes commissions much lower for higher-volume trades. Fixed rates provide a more predictable cost at $0.01 CAD per share ($1 minimum order or 5% of trade value) for Canadian stocks and $0.005 for US stocks.
Other fees to be aware of when trading on IBKR Canada
| RRSP withdrawal or deregistration fee | $50.00 |
| Telephone order fees for closing positions | $40.00 CAD per order |
| Cash withdrawal fee | 1 free withdrawal per month $12.00 CAD (wire) $2.00 CAD (ACH/EFT/SEPA) |
Advantages and Disadvantages of Interactive Brokers Canada
Although Interactive Brokers Canada has plenty of advantages, there are certain drawbacks that might not make it the best option for you.
Interactive Brokers Canada Advantages
- IBKR Lite – This service offers unlimited free trade stocks and ETFs from US exchanges for casual investors (only IBRK Pro is available in Canada).
- Advanced Tools – IBRK provides many investing tools, such as their Trader Workstation, ESG scores from Refinitiv and IBRK Pro for advanced traders.
- Investment Selection – Use your IBKR Lite or Pro account to trade a wide range of investments, like stocks, mutual funds, fixed incomes, options and far more.
- IBKR’s SmartRouting – When you place orders, this popular cost execution software helps you locate the best firm stock, option and combination prices.
Interactive Brokers Canada Disadvantages
- Website Isn’t Very Intuitive – While IBKR offers lots of good solutions, their web browser is quite complicated to use, especially for less experienced traders.
- Some Services Aren’t Available to Everyone – Canadian investors can’t access IBKR Lite, while US investors can’t access IBKR’s SmartRouter.
- No Zero-Commission Trades in Canada – Unfortunately, other trading platforms may be more affordable for Canadians than IBKR due to their commission fees.
- Other Limitations – The IBKR mobile app is not the most user-friendly.
Interactive Brokers Canada FAQs
Is Interactive Brokers Canada safe?
Is Interactive Brokers Canada good for beginners?
What are some alternatives to Interactive Brokers Canada?
Final Thoughts
If you’re looking to reach specific financial goals, Interactive Brokers Canada might be a perfect trading brokerage for your financial and personal profile. Choosing the right trading brokerage depends on what your needs are, what you’re looking to invest in, and ultimately what type of platform you’re most comfortable using.
