Be wary of bank-owned brokers and novice investors.
Policies vary between digital brokers owned by large banks, but it is common to charge $25 per quarter for registered and/or non-registered accounts with values between less than $10,000 and less than $20,000. These fees are not worth it. They are simply put in place to prevent the use of small-value accounts.
Ready to start investing? Try our tools to help you set up a brokerage account and start selecting portfolio assets.
TD Direct Investing has taken the top spot in the latest Globe and Mail ranking of digital brokerages. However, TD charges $25 per quarter for accounts with assets under his $15,000. The best brokers for novice do-it-yourself investors do not charge account fees of any kind and either charge no fees for trades or charge fees that are less than the major banks. Here we summarize some good choices for beginners of any age to invest with just a few thousand dollars.
Wealth simple: The Wealthsimple app allows you to purchase fractional shares with no fees or commissions. Cost-conscious beginners are best off avoiding U.S. stocks. Either you pay $10 a month for an account that allows you to hold US dollars, or you pay high exchange fees when converting Canadian dollars to US dollars.
TD Easy Trade: An app that offers 50 free stock trades per year and unlimited buying and selling of TD's proprietary ETF family. Although you cannot purchase other companies' ETFs, TD has its own selection of products.
Quest trade: Trading costs a minimum of $4.95, but you don't have to worry about account fees. Questrade has the most beginner-friendly app and lets you buy his ETFs with no fees. Standard fees apply at the time of sale.
CI Direct Transaction: There is a quarterly account maintenance fee of $24.95, which is waived if you have $5,000 or more in your account. There are no fees to buy ETFs and only $1.99 in fees for stock trades.
Don't scoff at the impact of the $100 annual account maintenance fee. If he has $5,000 in the account, $100 per year corresponds to a 2% outflow of revenue. Zero value to pay that fee.
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Rob's personal finance reading list
they ate a lot of chips
CTV News gave people a chance to vent about tipping expectations at restaurants, coffee shops and other retail establishments and services. If you're feeling tired from falling, you've got plenty of company.
Learn about FHSA
A financial planner provides a helpful overview of a hassle-free first home savings account for those 18 and older looking to become homeowners. If you want a quick explanation of the FHSA, start here.
Best forex options
Let's take a look at some ways to exchange Canadian money into foreign currency, including banks and online services. Next, let's take a look at three credit cards that don't charge the standard 2.5% markup on purchases made in currencies other than the Canadian dollar.
Fair price for tax software is zero
Reviews of 7 free software programs and apps for filing tax returns. There's no reason to pay for tax software anymore.
ask rob
question: How safe is EQ Bank? They seem to have the best deposit rates.
answer: EQ is safe. Deposits with this online bank are protected through parent company Equitable Bank's membership with the Canada Deposit Insurance Corporation. EQ offers more of a digital checking account with solid interest than a pure savings account, and its interest rates are moderate at the moment.
Do you have any questions? Please send it my way. Sorry, I can't answer everything individually. Questions and answers have been edited for length and clarity.
today's financial tools
The Bank of Canada explains how banks and other lenders set mortgage interest rates.
money free zone
Going Back is a sombre song about lost innocence, but it's been covered by many great artists over the years. And it stays on your head like glue. I like the Byrds' version because of the harmonies and guitars, but so does Dusty Springfield. That voice. Also Chrissie Hynde and Bruce Springsteen.
Eye stain
More coverage on Rob Carrick and money
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Further reporting by Rob Carrick:
- 🎧 Stress Test Update: Why Millennials and Gen Z are flocking to Alberta for more affordable living • Rising interest rates have created pain for new homeowners and opportunity for home seekers • Why more Canadians are choosing not to have children or delay parenthood • In the age of love inflation: How to manage the rising costs of dating • You're not weak on money – you are Suffering from money shame • Retirement may look different for Gen Z and Millennials. Here's how to plan for it • Tips for surviving the recession on the job market, housing, investing, and cost of living • Is the middle class dead for Millennials and Gen Z?
- ✔️ Housing File: Homes are nothing special. Understand the reality of homeownership. • The good, the sad, and the unaffordable: Saving for a down payment on a home in Canada's big city. • Property taxes are skyrocketing in some cities – how worried should we be about other tax increases? • Another real estate problem – people have too much wealth in their homes. • Borrowers and savers, here's how to time the final cut in interest rates.
- 📈 Investing: Canada's top digital broker is TD Direct Investing, backed by the TD Easy Trade app • 2023 Globe and Mail ETF Buyer's Guide Part 1: Canadian Stock ETFs • For the ultimate cheap investment, choose Freedom .08 ETF Check it out. Portfolio • Yes, Canadian bank deposits have risks for the careless and complacent. • CDIC covers bank deposits, but who will protect your investment if your broker goes bankrupt? • Answers to your questions about low-risk ETFs that pay almost 5% • One of the best investment products ever for the average person One, Happy 5th Anniversary • An investment strategy that guarantees long-term winning by outperforming in bad years like 2022.
- 💰 Your money: Mortgage holders, savers and GIC investors, it's time to think differently about interest rates. • How much debt does each generation of Canadians have? How do they compare? • Young people should leave Toronto and Vancouver for their financial futures • This substantial drop in savings accounts A new spin might just separate you from the big banks • Rental fraud is on the rise as bogus tenant applications rise • Are Canadians worse off? We're better financially now than in the 1980s Are you in need? • Find out how much it costs to live right now, from groceries to car loans. • When saving for retirement, should you change your asset mix over the course of your career? • Will your retirement income needs always increase with inflation?Not necessarily • If a bank offers to fix a variable rate mortgage, there is an angle to it.