Self-Directed Brokerages in Canada: How to Choose One

What it is

A self-directed brokerage (also called an online broker or discount broker) is an account where you buy and sell investments yourself — stocks, ETFs, options, GICs — without an advisor. You make every decision; the platform just executes your orders cheaply. It’s the DIY alternative to robo-advisors and mutual funds.

How it works

1. You open an account — TFSA, RRSP, FHSA, or non-registered — by verifying your ID and providing your SIN.
2. You fund it from your bank account via bill pay, Interac e-Transfer, or direct transfer.
3. You search for a stock or ETF, choose how many shares, and place a market or limit order.
4. The trade executes during market hours. You can hold, sell, or buy more whenever you like.
5. You pay per-trade commissions (now $0 at most major independents) plus any currency conversion fees on foreign securities.

What it’s used for

Self-directed accounts are for people who want full control and the lowest possible costs: regular ETF buyers building long-term wealth, and investors comfortable doing their own research. A monthly buyer of a single all-in-one ETF inside a TFSA is the classic success story.

They are NOT for people who want guidance, won’t rebalance, or will panic-sell in a downturn. There is no advisor watching your account — every mistake is yours to make, and the most expensive ones are behavioural, not technical.

Who provides it in Canada

• Wealthsimple Trade — $0 commission on Canadian and US stocks and ETFs, fractional shares, the simplest app for beginners. Currency conversion ~1.5% on CAD accounts; USD accounts $10/month on the Core tier, free above $100,000 in assets.
• Questrade — Canada’s largest independent online brokerage. $0 commission on Canadian and US stocks and ETFs since February 2025 (tiny ECN pass-through fees of pennies may apply on some orders). Free dual-currency accounts so you can hold US dollars inside registered accounts, free real-time quotes, no annual or inactivity fees. Supports Norbert’s Gambit (a technique to convert currency near the spot rate). A paid Questrade Plus tier ($19.99/month) adds options cashback and an RRSP deposit match.
• Interactive Brokers (IBKR) — the professional-grade choice. Charges about C$0.01 per share (minimum C$1 per order), but offers the cheapest currency conversion in Canada and access to global markets. Powerful and complex — best for experienced or high-volume investors.
• Bank-owned brokerages — RBC Direct Investing (~$9.95/trade), TD Direct Investing (~$9.99), Scotia iTRADE (~$9.99), CIBC Investor’s Edge (~$6.95), BMO InvestorLine ($0 on stocks and ETFs as of September 2026), National Bank Direct Brokerage ($0). Convenient if your banking is already there; pricier per trade at most of them — check current fees.

All are CIRO members with CIPF protection up to $1 million per category.

What it costs

The headline, verified across 2026 pricing pages: Wealthsimple, Questrade, National Bank Direct Brokerage, Qtrade, and BMO InvestorLine charge $0 commission on online Canadian and US stock and ETF trades. The real costs to compare are:

• Currency conversion (~1.5% at Wealthsimple and Questrade on standard accounts; near spot rate at IBKR) — the single biggest cost for buyers of US-listed securities.
• ECN fees — fractions of a cent per share on some order types at Questrade; pennies.
• Account/transfer fees — mostly $0 now; Questrade rebates transfer fees up to $150 per account; Wealthsimple covers transfers above $5,000 — check current offers.
• Margin interest — if you borrow to invest (beginners shouldn’t): roughly 4%–7%+ depending on broker and currency — check current rates.

Newcomer notes

• You need a SIN to open any brokerage account. No credit history required.
• Open a TFSA at your brokerage and buy one diversified Canadian-listed ETF monthly — the simplest proven newcomer investing setup. Buying Canadian-listed ETFs sidesteps currency conversion fees entirely.
• Don’t fund an RRSP or TFSA until you understand contribution room — overcontributions are penalized. Read our TFSA and RRSP explainers first.
• Start with money you won’t need for years. Brokerage accounts are for long-term wealth, not savings you’ll spend next month.

Risks / watch-outs

• No one stops you from making mistakes. Overtrading, chasing hot stocks, and panic-selling are the classic DIY wealth destroyers. The platform won’t warn you.
• Currency conversion is the silent killer. That 1.5% applies when you buy AND when you sell US securities. On a $10,000 US stock purchase, that’s roughly $150 each way.
• Leverage (margin) can wipe you out. Borrowing to invest magnifies losses as well as gains. Beginners should never use margin.
• Taxes are your job. In non-registered accounts you must track capital gains yourself. Inside a TFSA, gains are tax-free — which is why account choice matters more than stock choice early on.

FAQ

How much money do I need to start? Effectively $0 at Wealthsimple and Questrade — no minimums, $0 commissions, fractional shares. Start with what you can afford to leave invested for years.

Can I hold a TFSA at a brokerage? Yes — and you should. A self-directed TFSA holding a diversified ETF is one of the best long-term wealth builders available to Canadians. Just respect your contribution room.

Is my money safe if the brokerage fails? CIPF covers up to $1 million per category (general accounts including TFSA/FHSA; a separate $1 million for RRSP/RRIF/LIF; another $1 million for RESPs) if a member firm becomes insolvent. It does not cover market losses or crypto.

Wealthsimple Trade or Questrade? Beginners buying Canadian ETFs: Wealthsimple’s simpler app wins. Investors buying US securities regularly: Questrade’s free USD accounts and Norbert’s Gambit support win. Advanced traders: Interactive Brokers.

Do I pay tax on gains inside a TFSA? No — that’s the entire point of the TFSA. Capital gains, dividends, and interest inside are all tax-free, and withdrawals are tax-free too.

Educational content only — not financial advice. Rules and promotions change; verify current details with the provider or CRA.