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The Toronto Stock Exchange (TSX) reached a milestone on June 1, 2021. Leaving behind the heavy selling by investors in March when the pandemic struck, it topped the 20,000 milestone.
The key index, S&P /TSX Composite Index, is up nearly 75 per cent from March 2020 level. The TSX ranks among best performers when compared to some 90 other global stock markets. All the six big Canadian banks have reported record profits in latest quarter and this may translate into increased dividends for shareholders. Amid this boom, the question is how to invest in stocks in Canada?
Here are two easy-to-use stock market apps for Canadian investors:
1. Questrade*
Popular for being the market leader in discount brokerage services, Questrade allows investment in both Canadian and US stocks. No annual fee and transparent pricing make it an popular app for retail investors.
Besides a smartphone app, Questrade also has two trading platforms, IQ Web, which runs on browser, and IQ Edge, which is installed on a desktop. The services can be accessed only by Canadian residents.
Questrade commission & fee
The platform gives two choices to users. Under the first option, named Democratic, the trading fee is C$0.01 per share, with minimum of C$4.95 and maximum of C$9.95. Using Democratic, Exchange-traded fund (ETFs) can be traded without any paying any fee, and options trading attracts fee of C$9.95, plus C$1 per contract.
Under the second option, named Advantage, users have two plan choices- variable, and fixed. Variable plan allows trading in stocks at C$0.1 per share, with minimum fee of C$0.01 and maximum of C$6.95, while fixed plan allows stock trade at flat C$4.95 per trade. Options can be traded at C$6.95, plus C$0.75 per contract under variable, and at C$4.95, plus C$0.75 per contract under fixed plan. ETFs remain free.
Analysis: Most users avail the Democratic option, while in cases where commission exceeds C$100 every month, Advantage option can be availed.
© Kalkine Image 2021
2. CIBC Investor’s Edge*
This is a division of CIBC Investor Services Inc., a CIBC subsidiary. It charges a flat trading fee of C$6.95 per trade for equities and ETFs. Options can be traded at C$6.95, plus C$1.25 per contract.
Students can avail its services for a little less. They can trade equities at C$5.95 per trade, and options at C$5.95, plus C$1.25 per contract. Users making over 150 trades per quarter are charged equity trading fee of C$4.95 per trade, and options trading fee of C$4.95, plus C$1.25 per contract.
For both, Questrade and CIBC Investor’s Edge, U.S. commissions are charged in U.S. dollars.
There is a lot to be explored in the Canadian stock market. A few players, for example, pot stocks and green energy companies, can provide good returns in the short to medium term. Long-term investors, looking for both capital gains from trading stocks as well as regular dividend income, can look for energy companies and banks stocks.
Questrade and CIBC Investor’s Edge take stock trading to the common retail investor in Canada with their low trading fee and transparent prices. One can avail their services to invest money in stocks.
