The stock market offers an enormous amount of wealth that people can potentially take advantage of. However, entering the stock market can often be quite challenging. It can take a steep learning curve before someone can do so on their own. Others resort to brokers, but those can be expensive.
A relatively easy option for people to begin trading in the stock market is through various stock broker platforms, such as Questrade.
In this guide, we will discuss the details of Questrade, how to use it, and more.
Table of Contents
What is Questrade?
Questrade is a trading platform where everyone can begin trading in stocks. It allows everyone to access the stock market for a minimal brokerage fee.
Established in 1999, Questrade is a Canadian broker. Being a Canadian platform, a Canadian address is required to open an account. Even Canadian citizens outside of Canada are unable to hold regular trading accounts. This makes Questrade especially convenient for those who have accounts in Canadian banks and other financial institutions.
Aside from trading stocks, Questrade also allows its users access to bonds, exchange-traded funds (ETFs), and mutual funds. Additionally, Questrade also offers precious metal purchases, access to initial public offerings (IPOs), international equities, and even guaranteed investment certificates (GICs).
Questrade is conveniently available across multiple platforms, including two desktop trading platforms, a mobile app, as well as a forex and contract for difference (CFD) platforms. Each platform has a relatively simple user interface and offers a unique experience. A friendly user interface is especially important to allow newcomers to learn how to trade without difficulty.
How To Buy Stocks on Questrade
The ways to trade stocks through Questrade are relatively straightforward. Understandably, the first step is to make an account. As mentioned before, it is required that users have a Canadian address.
1. Create An Account
Go to the Questrade website to open an account. Once you are on the Questrade website, you want to click on the “Open an Account” button.
With an account made, you can now create your user ID and password and complete your profile. You can then proceed to fund your account. Funding your account is an important step, as buying stock options will require you to have the necessary funds in the first place.
2. Search For The Stock You Want
You can browse the expansive options of Questrade of various stocks or ETFs that you are interested in investing in. Once you have chosen which stock options to invest in, you can then use your transferred funds to purchase your desired stock options.
You have to agree to the terms of service and click “Open Now” in order to proceed.
The Questrade trading platform can be used on both your laptop through a browser and on your phone through the QuestMobile app. In order to buy stocks, the first step is to search for the stock in which you would like to invest in. You can do this using the search bar on the website.
3. Click “Buy”
Once you have found a stock to invest in, click “Buy” and select your order type. For example, you can choose market order, where you buy a stock at the best available price when your order is placed, or limit order, where you set a specific price at which the stock is purchased.
4. Choose The Number of Shares
You then want to proceed and choose the number of shares you would like to purchase. The final step is reviewing your order and processing the order.
Over time, you can monitor the value of your invested stocks. Avid traders are known to monitor their stock positions very closely, while some prefer to leave their stocks alone. This will highly depend on your preferences in trading.
Whenever you want, you can then sell your stocks as you see fit. While some sell their stocks to avoid further loss, you will hopefully be selling your stocks at a profit.
These basic steps are essentially the same steps for any other investment broker platform. The simplicity is necessary so that investing becomes accessible to everyone who has the desire to trade. This significantly lowers the barrier to entry for most people eager to earn through investing.
When trading stocks, you will have to pay trading fees. Trading fees are a form of brokerage fees that occur when you buy or sell an investment product such as a stock.
What fees are charged as well as how much you pay, depends on the broker used. The most important fees when it comes to trading stocks are commission fees. Questrade is known for having some of the lowest trading fees or costs.
When purchasing stocks and balancing your investment portfolio, it is important to keep trading fees in mind. Also, take note that different Questrade products have different fees associated with them.
ETFs purchased using Questrade are free to purchase, but you will have to pay $0.01 per share when trading. For stocks, you will need to pay $0.01 per share. This can be at a minimum of $4.95 and a maximum of $9.95.
Mutual funds on Questrade have a fee of $9.95 per trade, while precious metals have a fee of $19.95 USD per trade. Bonds, GICs, IPOs, and new purchases are free with a minimum purchase of $5,000.
For any international equities, there is a fee of 1% of the trade value. There is also a minimum fee of $195, along with any applicable fees for exchange or stamp. This is charged in the currency of the account in which the trade is placed, so if the trade is placed in the United States, it would be paid in United States dollars, while in Canada, it is the Canadian dollar.
Basic account types are free to open or close on Questrade. You will not find any ongoing account fees on Questrade, nor will you find any inactivity fees. In order to begin purchasing investment products, such as stocks, on Questrade, you will need to deposit at least $1,000 into your account.
Once your account has been opened, and you have deposited at least $1,000 into your account on Questrade, you can begin investing. You will not have to deal with any account fees or inactivity fees when using Questrade. The only fees you will need to pay are the trading fees you encounter depending on which investment product you choose to purchase and trade.
Questrade offers a variety of features and tools to maximize user experience on their platforms, offering different platforms for different investing needs and types.
Feeless ETF Purchases
When building a portfolio with Questrade, diversity is the goal of many. In addition, Questrade does not impose fees for ETFs, making it more convenient to create a diversified ETF portfolio through them.
No Yearly or Inactivity Fees
Questrades keeps things simple for its users by eliminating annual fees and inactivity fees- meaning your money can be invested, without the worry of membership fees, or any fees for when you are not active on your account.
This simple fee structure that Questrades implements mean users can calculate their investments more accurately, enabling them to implement index and passive investing more easily.
Free Account Transferring
Transferring accounts from financial institutions can be a hassle, especially with the fees that are included with every transfer. Questrade reimburses those fees, making it less stressful when it comes to transferring accounts from financial institutions.
Questrade Dividend Reinvestment Plan (DRIP)
The Dividend Reinvestment Plan from Questrade is an investor’s friend and an incredibly useful tool. It allows you to reinvest dividends into stocks and ETFs that have already been invested in with the DRIP option selected.
Dividends are automatically paid out when you invest in ETFs, and only whole shares will be purchased at market price. Any remaining cash value will be left as cash in your account. This keeps your money actively working for you, rather than sitting in your cash balance, waiting to be invested, but also eliminates buying partial shares and wasting your money.
DRIP is not ideal for taxable accounts, and Questrade recommends not using it for such accounts, as it will just increase the amount of taxes you will have to pay out for those accounts.
Questrade offers an IPO center, allowing you to invest in initial public offerings (IPOs) for free with a minimal investment amount of $5000. Available IPOs will be listed in the IPO Center, with an option to get alerts for newly listed IPOs when you subscribe to the IPO bulletin.
Practice Trading Account
For those new to trading and investing in stocks, Questrade’s practice accounts are the perfect place to practice using real and relevant information that is taken from the previous day. In addition, the practice accounts are risk-free and allow you to test out trading and investing for free.
With a practice account, you start with $500k CAD and $500k USD and the previous day’s data to utilize for trying out trading and practicing- allowing you to see how it works and what the expected outcomes could be.
For those who are not interested in DIY portfolios, Questrade offers managed portfolios for a low fee. For these portfolios, you will pay higher fees than DIY investing, but your investments are purchased and re-balanced automatically without having to do anything yourself. It is managed for you.
Questrade offers a variety of platforms for different investing types and degrees. In addition, they have standard platforms and advanced platforms for users to utilize depending on their investment needs and experience.
Standard Investing Platforms
Questrade Mobile App:
The mobile app is essentially the same as the web-based platform but with the convenience of managing your account and making trades from your smartphone. You can also make transfers between accounts through the mobile app, review account performance, and perform account management tasks.
When you sign up for an account with Questrade, this is where you will begin. This is a web-based platform that allows you to make trades, check account performance, and research products. This platform is most suited for DIY investing and a good start for anyone new to investing and trading.
Advanced Investing Platforms
Questrade IQ Edge:
This platform is designed for professional and advanced traders who are more active. It is customizable, allows the user to make advanced orders and trades, and includes built-in research tools.
Questrades’ features, tools, platforms, and user-friendly platforms make it an ideal solution for trading stocks and investing in hundreds of different stock opportunities for users of every level. In addition, its no-fee ETFs and account transfer reimbursements provide a great incentive for investors of every level to use the platform.
However, it is crucial to understand that Questrades’ simple and easy-to-use platform is often great for beginners or traders who are not as active. If you are an avid trader who requires more robust and comprehensive tools, Interactive Brokers is the platform of choice for seasoned investors.
- Lowest and most transparent commissions
- Large number of tradable security types
- Robust suite of research tools
- Low margin rates, from 0.75% to 1.59%
- Access to 40,000+ funds worldwide & 7,700+ funds with no transaction fees
With a more sophisticated platform to support your research and data needs, Interactive Brokers is the well-established brokerage that you can trust.