Stocks can be bought in Canada through the following: Free Online Purchase, Online Through Independent Discount Brokers and The Bank Stock Trading Platforms. Canada’s biggest banks all offer brokerage platforms used in the trade of stocks. The purpose of this article is to discuss the process of buying stocks in Canadian banks. We will focus on 3 big bank trading platforms in this article.
1. CIBC Investor’s Edge
CIBC Investor’s Edge is the brokerage platform offered by the Canadian Imperial Bank of Commerce (CIBC). It can be used to trade stocks, ETFs, options, mutual funds, GICs, and more. It provides the information, tools, and resources required to make informed investment decisions.
On the CIBC Investor’s Edge you have access to company news, charts, stock tools, and research reports from CIBC World Markets and Thomson Reuters. This information can help to determine how long a company has been in existence, its performance over the short- and long-term, and most importantly, its prospects and other relevant parameters.
CIBC Investor’s Edge provides access to all North American markets. The trading platform offers TFSA, RRSP, RESP, margin, personal, and corporate non-registered accounts. To make trade transactions seamless, investors can also choose to pay from or pay to your bank account if the investor can link their bank account with their CIBC Investor’s Edge account.
How to Trade on CIBC Investors Edge
- Select the stock you Intend to trade (buy or sell) on the platform
Indicate the stock symbol, applicable market, number of shares, order price, and order expiry. You should get a real-time quote for the stock you want to trade, however; foreign exchange rates often apply when the trader selects stocks in the U.S. market, but choose to pay from a Canadian bank or brokerage account.
- Review and confirm details of your order
Verify and confirm all of the trade details, especially the estimated total cost of the trade, including commission. You will also be requested to operate a trading password to process and submit your order.
- Submit your order
You will receive confirmation that the order was successfully submitted, along with an order tracking number for your reference. You can print this page for your records and you can also set up “Fill Alerts” to receive the notification once your trade has been completed.
It is important to note that the standard settlement period for stock trades is the transaction date plus two business days (T+2). If you pay from or pay to a bank account instead of your CIBC Investor’s Edge account, your bank account will not be debited or credited until the day of settlement.
- Order Status
Investors can review their recent orders and other orders that have not yet been filled. Additional details are also available for any orders that have been filled or rejected. You can change or cancel any open or partially-filled orders.
- Trading fees
The platform charges a $6.95 commission per trade (stocks). Students pay $5.95/trade and active traders (150+ trades per quarter) pay $4.95/trade. Other fees include a $100 annual fee if the registered account balance is $25,000 or less; or $10,000 or less for non-registered accounts.
2. TD Direct Investing
TD Direct Investing is the brokerage platform for TD Bank and one of the very first stock trading platforms to launch in Canada. It can be used to trade stocks, ETFs, options, bonds, mutual funds, and IPOs.
TD Direct Investing offers TFSA, RSP, RESP, and margin accounts to investors. TD Direct Investing introduced the following tools for investors to trade via the TD Direct Investing platform on the stock market.
- TD App
- Advanced Dashboard
The TD app is most suitable for investors who prefer to trade on mobile phones while the other tools can function on a tablet, laptop, and desktop computers.
How to Trade on TD Direct Investing
- TD App
Investors can trade with real-time news, notifications and alerts, dynamic charting, easy order submission, and tracking. The TD app allows investors to monitor their portfolio performance, stay on top of market events, learn and trade in real-time.
Features of TD App
- A customizable home screen that gives investors quick access to their favorite investing features.
- Free real-time snap quotes including company profiles, fundamentals, news, and charts for stocks, mutual funds, ETFs, and options chains.
- Access the TD Direct Investing Learning Centre for education for every level of investor.
- Investors can set-up price and volume alerts directly on their mobile phones and other devices.
- TD app is available in English, French, and Traditional or Simplified Chinese.
WebBroker is an intuitive investment and trading platform that makes investing easy and accessible for investors with any level of experience. The platform is packed with robust trading tools, market data, and research reports to help investors manage their online investments efficiently.
Features of WebBroker
- Investors can build a diversified portfolio of stocks, Exchange Traded Funds (ETFs), options, bonds, and more in both Canadian and U.S. markets.
- Personalized homepage: an overview of the markets and investor’s online investment in real-time.
- Access to tools to manage the investor’s portfolio: performance, gain/loss, and goals-based investing.
- Order types that manage risk from the basics to multi-leg option strategies.
- Exclusive research from TD Securities, video from Morningstar Equity Research, and other research materials.
- Investor education: investing and stock trading resources.
- Advanced Dashboard
This platform is more suitable for active traders. It offers investors pro-grade tools for active traders and an opportunity to leverage real-time streaming data, screeners, analytics, customizable charting, and research.
Features of Advanced Dashboard
- Advanced trading capabilities.
- US and Canadian equity and options trading with streaming real-time market data, news, and charting.
- Advanced order types include conditional orders, multi-leg option strategies, and option rollovers.
- Wide range of customizable trading and application settings to suit your personal preferences.
This platform is a professional level of technology for active traders with a focus on U.S. options trades. It is available for desktop users or as an application that can also be operated on mobile phones. It streams level II data; provides powerful charting, and expanded order types like four-legged options strategies.
The platform is for top-of-your-game traders who desire pro-grade tools and resources. The Thinkorswim trading platform is designed to deliver a holistic, live level II advantage when trading U.S. stocks and options.
Features of Thinkorswim
- A fully customizable trading platform.
- Free, real-time streaming U.S. equity and option level I and II data.
- Trade multi-leg option strategies with up to four legs.
- Thinkorswim app lets you keep an eye on your trades and positions.
- Test with no risk using a paper money account or virtual.
However, it is important to note that, to activate your account, the minimum deposit is $25,000 U.S. Each account is required to maintain minimum total equity and a cash balance of $25,000 U.S. for trading options in your account.
Rates Applicable on Trade Via TD Direct Investing Platforms
|S.N.||Trade Type||Class of Trader||Standard Rate||Other Commissions|
|1||Canadian & U.S. Stocks||Normal Trader||$9.99 flat|
|2||Canadian & U.S. Options||$9.99 + $1.25 per contract|
|3||Canadian & U.S. Stocks||Active Trader (150+ Trades per Quarter)||$7.00 flat|
|4||Canadian & U.S. Options||$7.00 + $1.25 per contract|
|5||Real-time Streaming (TSX level I, NYSE level I, NYSE MKT level I, NASDAQ level I, OPRA level I)||Dashboard Traders||$29/month (Under $500,000 in assets); Free (30 or more trades per quarter)|
|6||Market depth – Canadian equities (TSX level II)||Dashboard Traders||$10/month; Free (30 or more trades per quarter)|
|7||Market depth – U.S. equities NASDAQ (level II)||Dashboard Traders||$10/month; Free (30 or more trades per quarter)|
|8||Market depth – Canadian Small Cap equities (TSX Venture level I)||Dashboard Traders||$10/month (Under $500,000 in assets)|
|9||TSX Venture (level II)||Dashboard Traders||$30/month|
|10||MX level I||Dashboard Traders||$10/month|
|11||Real-time streaming (level I quotes: TSX level I, NYSE, NYSE MKT, NASDAQ level I, OPRA, TSX Venture level I MX)||Thinkorswim||$199/month (30 or more Trades Per Quarter); $229/month (Under 30 Trades Per Quarter)|
|12||Real-time streaming (level II quotes: TSX level II, NASDAQ level II, TSX Venture level II)||Thinkorswim||$80/month (30 or more Trades Per Quarter); $100/month (Under 30 Trades Per Quarter)|
Please note: All prices are quoted, and commissions charged, in the currency of the trade.
3. RBC Direct Investing
RBC Direct Investing is the brokerage division of the Royal Bank of Canada (RBC). The platform can be used to trade stocks, ETFs, mutual funds, options, and bonds. One great option on RBC Direct Investing is the RBC practice account – a no-risk approach to trying the platform.
Features of RBC Direct Investing platform
|Features||RBC Direct Investing||Comments|
|Stock Transaction Fee||$9.95||Represents 1% with a $1,000 trade.|
|ETF Transaction Fee||$9.95|
|Real-Time Quotes||Yes, all clients.|
|Dual Currency Account||Yes|
|Synthetic DRIP||Yes||For Dividend Investors|
|Access to Research||Morningstar|
|Account Minimum||$15,000 for all accounts;|
|Maintenance Fee||$25 maintenance fee||Charged every quarter if your investment balance is less than $15,000|
|Accounts||Non-Registered; RRSP; TFSA; RESP; RRIF; LIF; LIRA|
|Mobile App||Fresh Update|
We selected these bank trading platforms for discussion in no particular order or preference. The primary selection factor would be that these platforms are owned by some of the biggest banks in Canada. However, an investor can employ any of these bank trading platforms or others available in the industry.