Questrade is a low-cost brokerage in Canada popular for being an outstanding broker overall. It offers Canadian investors a wide range of investment products, including stocks, ETFs, options, bonds, and mutual funds.
Questrade charges low trading commissions and the platforms are user-friendly. Canadian investors benefit significant cost savings on trading because of the competitive fee structure of Questrade that favors long-term investors. Moreover, the intuitive trading platform streamlines easy navigation and transactions. This makes Questrade accessible for investors of all levels.
Questrade’s extensive selection of research tools and educational resources empowers investors to make well-informed decisions. These resources offer valuable insights into market trends, company performance, and investment strategies, enabling investors to stay updated and make sound investment choices.
Key points for Canadian traders
Before diving into details, understand Questrade at a glance. Here is a quick overview of the best overall broker in Canada, discussing the ideal investor types, as well as the pros and cons to consider before signing up:
| Preferred Investors | Pros | Cons |
|---|---|---|
| Self-directed investors, ETF investors, Stocks investors, investors interested in options and wider market access | ✔ Commission-free ETF purchases, no inactivity and annual fees, wide range of investment products, multiple trading platforms | ✘ Additional cost for real-time market information, higher currency conversion fees |
What is Questrade?
Questrade is a leading discount brokerage in Canada that offers extensive investment products and services to both individual and institutional investors. The largest independent online brokerage in the country was established in 1999. The top executive behind the company’s success is Edward Kholodenko. Managing over $30 billion in assets, Questrade aims to offer Canadian variety of investment options, mainly Canadian and U.S. stocks, ETFs, and other securities with affordable fees.
The company headquarters is located in Toronto and is being regulated by the IIROC, an organization that sets standards for brokers in Canada. It is also a member of the Canadian Investor Protection Fund (CIPF), covering up to $1 million CAD of insurance per account. For clients with large portfolios, insurance can reach up to $10 million CAD coverage from other private insurances.
What is unique about Questrade?
What is unique about Questrade is its focus on low fees, advanced features, and all-around capability. The low fees, like zero-cost ETF purchases, can significantly reduce trading expenses when it adds up. Secondly, Questrade gives you access to a wider range of investment products from Canada and the U.S.
Questrade also has advanced features and it caters various investing styles. Whether you’re a beginner seeking simplicity with the QuestMobile app or an experienced investor who uses Questrade Edge, the broker offers platform options to match your level of expertise and strategy.
Additionally, they offer managed portfolios through Questwealth Portfolios for Canadians who prefer a hands-off approach to investing. This is a great option if you are investing part time, or just starting out because it lets you invest without reducing your commitment to your current career.
While Questrade is not a traditional bank, it offers banking-like services, such as cash and margin accounts. On top of cash accounts, Questrade also supports RRSP (retirement savings plan in Canada) and TFSA (accounts where Canadians can invest with tax benefits). The company’s focus on low fees and award-winning customer support make it a great choice for Canadian investors of all levels.
Questrade stands out from its competitors by balancing a low-cost pricing structure. While some discount brokers like Interactive Brokers might be cheaper for specific trades, Questrade overall remains strong for many Canadian investors.
Is Questrade a good broker?
Yes, Questrade is a good broker for Canadian investors due to its focus on low-cost trading, particularly with its commission-free ETF purchases. Questrade also offers a wide variety of investment products beyond just stocks and ETFs, ensuring you have the necessary tools to build your desired portfolio.
Questrade is an excellent choice for both Canadians looking for self-directed and professionally-managed investment accounts. It is beneficial for casual investors, ETF investors, and Canadians who seek solid options of investment products from Canada and the U.S.
Is Questrade safe & trustworthy?
Yes, you can trust Questrade because the broker is a member of the Canadian Investor Protection Fund (CIPF). It also complies to the standards of the Investment Industry Regulatory Organization of Canada (IIROC).
It is safe to entrust your assets on Questrade because the CIPF membership protects investors in case Questrade becomes insolvent. CIPF will compensate eligible investors for certain losses.
Also, Questrade guarantees online security. For any unauthorized transactions, Questrade guarantees 100% reimbursement.
Is Questrade regulated by the IIROC?
Yes, Questrade is regulated by an authorized regulatory body in Canada, the IIROC. The self-regulatory organization oversees all investment dealers and advisors among its members in Canada. This means it’s an industry-run organization that sets and enforces rules for its members. IIROC operates under the oversight of provincial and territorial securities regulators in Canada. This oversight of regulations ensures that Questrade is operating in a safe and compliant manner.
However, remember that IIROC regulation only applies to Canadian investment activities. If you are considering investing outside of Canada, you need to research the regulations of the specific country or exchange.
How does Questrade protect your deposits and investments?
Questrade protects your deposits and investments by being a member of CIPF and IIROC, and security measures like controlled account access, online security guarantee, and data encryption.
Questrade encrypts your data to and from their system and your device. Questrade uses a 256-bit SSL, ensuring third parties cannot read the data. When logging in, Questrade lets you set a 2-step verification, where the system needs to verify the login attempt by sending time-sensitive verification code to your chosen contact information on top of your login credentials (user ID and password).
The 2-step verification ensures you are the only one who accesses your account. In case the system detects logins from unusual locations, automated alerts will be sent to your contact information.
Lastly, Questrade follows IIROC-standard security protocols to safeguard your assets and information. You can trust your money due to Questrade’s commitment to security regulations. As a member of IIROC, Questrade ensures the broker operates above the standards. Your investments are also insured up to $10 million CAD in case Questrade went bankrupt.
Does Questrade receive industry recognition?
Yes, Questrade has received industry recognition, including the following awards:
- 2022: MoneySense Ranked #1 Overall Online Broker in Canada
- 2021: The Globe and Mail’s “Best Online Brokerage” for the sixth consecutive year
- 2021: Wealth Professional’s “Best Overall Online Broker” for the fourth consecutive year
- 2021: Canadian Online Broker Ranking’s “Best Overall Online Broker” for the second consecutive year
- 2020: Investor Economics’ “Best Online Broker” for the third consecutive year
How much does it cost to trade with Questrade?
The cost of commission fee in Questrade varies depending on the investment product and the amount of investment. Fees on purchasing and selling an asset varies as well. The following is a quick summary of the pricing in Questrade:
Questrade Trading fees
Trading fees on Questrade vary depending on the investment product. Here is a breakdown of the commissions:
- Stocks: for self-directed investing, commission is as low as 1¢/share. The fee ranges from $4.95-$9.95 CAD/trade, depending on the number of shares traded.
- ETFs: commission-free ETF purchases. Fees on selling costs from $4.95-$9.95 CAD
- Options: flat fee of $9.95 CAD/trade + $1 CAD/contract. Trading fee on options costs $10.95 CAD in total.
- Mutual funds: commission on mutual funds costs $9.95 CAD/trade.
- Bonds and GICs: There are zero trading fees for bonds and GICs for purchases over $5,000 CAD. However, you might still be charged for fees if you withdraw GICs too early. For transactions below the minimum, trading fees vary depending on the specific security.
- International Equities: trading international equities costs a minimal service charge of $195.00 + stamp fees based on the currency of the account (1% of the trade value).
- IPOs: zero fees if you purchase at least $5,000 CAD worth of shares.
- Product precious metals: incurs a fixed $19.95 CAD/trade
FX and CFDs
Pricings on Forex and contract for difference on Questrade has spread as low as 0.8 pips under normal market conditions. Keep in mind that FX and CFDs trading could possibly incur rollover costs, CFD expiration, CFD carrying cost, or CFD finance cost. The fees might be charged depending on the actions you make.
Market data
Questrade offers you different market data packages according to your needs and budget. $19.95 CAD Monthly subscription of Level 1 data package can provide real-time information on Canadian exchanges.
For investors who need more in-depth streaming of Canadian exchanges and indices, level 2 package costs $89.95 CAD/month. For advanced streaming of the U.S. market and indices, monthly subscription costs $89.95 USD.
Margin interest rates
Margin trading interest rates on Questrade cost 7.20% on CAD Prime and 8.50% on USD Prime. Interest rates are charged when you borrow money to buy securities. The rate is calculated daily and credited or charged the next month. Currency conversion isn’t automatic, except for registered accounts.
Rates are also lower than credit card rates and unsecured personal loans. For example, the interest rate for CAD registered accounts is the CAD prime fee + 8.10%.
Questwealth Portfolios pricing
Pricing on Questwealth Portfolios has a management fee structure. The fees start at 0.25% for accounts with a balance of $1,000-$99,999 CAD. Fees are lower (0.20%) for balances over $99,999 CAD.
These fees are separate from the underlying management expense ratios (MERs) of the ETFs within your portfolio, which ranges from 0.17%-0.35%.
Other fees
Other fees on Questrade include various administrative and transaction fees. Administrative fees like transfer-out fees range from $25-$150 CAD, depending on the type of account. Account closure fee costs $25 CAD.
In addition to trading commissions, Questrade may charge more transaction fees. These include fees for wire transfers, electronic funds transfers, and bill payments.
What assets can you trade on Questrade?
The assets that you can trade on Questrade includes options, forex, and popular Canadian and US stocks/ETFs. In addition to that, Questrade provides access to fixed-income products, IPO access, and even precious metals trading.
Here is a breakdown of assets you can trade on Questrade:
Stocks and ETFs
Questrade provides access to a wide variety of investment products, giving you the tools to build a diversified portfolio. Questrade allows you to trade stocks and ETFs on both Canadian and U.S. exchanges.
You can choose from thousands of individual stocks across various sectors, giving you the opportunity to invest in well-known companies or explore niche industries.
Their selection of ETFs is equally vast, providing pre-built portfolios for diversification. Notably, Questrade shines with its commission-free ETF purchases, making it highly attractive for long-term, ETF-focused investors.
Options
Questrade provides advanced options trading capabilities. You can trade options on stocks, ETFs, and various indices. Options strategies can range from simple calls and puts to more complex multi-leg strategies. Questrade’s platforms offer the tools and charting capabilities needed for in-depth options analysis and order placement.
Forex
Questrade supports forex (foreign exchange) trading, allowing you to trade on major currency pairs. Their forex spreads are competitive, making trades cost-effective. Forex trading often appeals to those seeking active strategies and an opportunity to capitalize on global currency fluctuations.
Other Investment Products
Other investment products available on Questrade include IPOs, CFDs, mutual funds, bonds, GICs, international equities, and precious metals. For investors looking to capitalize on the growth potential of recently listed companies, Questrade have Initial Public Offerings (IPOs).
Alternatively, Contracts for Difference (CFDs) offer a speculative trading instrument for experienced investors seeking to profit from price movements without directly owning assets. Mutual funds provide a diversified and professionally managed investment portfolio, catering to various risk appetites and financial goals. Bonds, on the other hand, offer fixed-income securities with regular interest payments and a guaranteed return of principal at maturity.
For stability and security, Guaranteed Investment Certificates (GICs) are available on Questrade as well. GICs are typically provided by financial institutions. International Equities provide investment opportunities in stocks of companies located worldwide, offering exposure to diverse markets and economies. Precious Metals, such as gold, silver, and platinum, are commodities often sought for diversification or as a hedge against market volatility.
Which Questrade platform is right for you?
Questrade has all-in-one platforms, advanced trading platforms, and research tools. Questrade lets you access them anytime simultaneously and all platforms are free to use. Questrade have platforms that are offered to suit your style and goals. Let’s have a look at a few of Questrade’s offerings.
Questrade Trading
Questrade Trading is the broker’s primary web-based platform, ideal for investors of all experience levels. It offers intuitive navigation, customizable layouts, real-time quotes, advanced charting tools, and integrated research. Questrade Trading combines ease of use with powerful features, making it a versatile starting point for many investors.
Questmobile
Questmobile is Questrade’s mobile trading platform designed for on-the-go investing. It emphasizes simplicity and convenience, allowing you to manage trades, monitor your portfolio, and access basic charting from your smartphone or tablet. Questmobile is a great option for those who prioritize streamlined trading or require access on the move.
Advanced trading platforms
The advanced trading platforms of Questrade are Edge (both desktop and mobile version), and Questrade Global. These platforms are offered for seasoned and active traders who demand superior speed and real-time analysis capabilities.
Below are the advanced trading platforms in Questrade:
- Questrade Edge Mobile: Edge Mobile puts the power of an advanced trading platform in the palm of your hand. It features real-time streaming data, complex order types (like bracket orders), and advanced charting tools. Active traders on the go who crave a feature-rich mobile experience will find Edge Mobile appealing.
- Questrade Edge (desktop): Their flagship desktop platform, Questrade Edge, delivers unparalleled speed and customization. It boasts features like direct routing (choosing the exchange where your order is filled), detailed options analysis tools, and in-depth market research. Traders seeking maximum control and sophisticated tools often turn to Questrade Edge.
- Questrade Global: This specific platform caters to traders needing access to international markets beyond North America. Questrade Global provides the tools to trade stocks listed on various global exchanges.
Tools
Questrade tools go beyond just order execution, it provides features and resources to help you make informed trading choices. These tools fall broadly into three categories:
- News , insights, and research: allows you to Stay updated on market developments and dive into relevant analysis with Questrade’s news feeds, market insights, analyst reports, and educational articles. They also offer in-platform screeners (for stocks, ETFs, etc.) to help you filter and discover investment ideas.
- Investing and trading tools: Questrade provides tools to streamline the trading process. This includes advanced charting capabilities, customizable order types, technical analysis indicators, and options analysis features. These tools allow for comprehensive analysis when considering investments.
- Investment monitoring: Track your portfolio performance with real-time quotes, detailed account summaries, and integrated reporting. Monitoring tools help you gauge your progress towards goals and adjust your investment strategy as needed.
What are the account types available in Questrade?
The most used account types available in Questrade are TFSA, RRSP, margin, trusts, entities, and individual cash accounts. Questrade offers a variety of account types designed to match different investment goals and tax situations. Whether you’re saving for retirement, education, or building a general investment portfolio, they likely have an account suitable for your needs.
Here’s a breakdown of some of their popular options:
Tax-free accounts and retirement accounts
- TFSA and FHSA: allows for tax-free growth and withdrawals, making it an attractive option for both short-term and long-term saving for retirement, travel, emergency fund, and more. There are no annual or opening fees in opening a TFSA account on Questrade. The TFSA has the ability to hold both Canadian and U.S. dollars, and the convenience of opening and contributing to the account online.
Alternatively, Questrade offers FHSA, a tax-free first home savings account for Canadians saving up to purchase their first home.
- Retirement accounts: Questrade have both RRSP and spousal RRSP, as well as access to the Home Buyers Plan (HBP) which helps first-time home buyers use RRSP savings. These types of accounts offer tax deductions for yearly contributions, allowing for tax-deferred growth until retirement. Regular contributions can be set up to maximize savings, and RRSP funds can also be used for a first-time home purchase.
Questrade also offers locked-in retirement accounts and income funds. Locked-in retirement accounts are employee sponsored pensions and Questrade offers the regular locked-in retirement account (LIRA) and locked-in RRSP. On the other hand, you can opt in for income funds like registered retirement income fund (RIF) and life income fund (LIF).
Individual Margin Accounts
Margin accounts that Questrade offers for Canadian individuals provide the opportunity to borrow funds for extra buying power. This leads to more purchases in total, which can potentially amplify your gains. However, margin accounts are designed for experienced investors with a high tolerance for risk and a deep understanding of margin trading implications.
It’s crucial to recognize that this strategy also intensifies the level of risk involved. Before engaging in margin trading, it’s important that you thoroughly assess your financial situation and risk tolerance.
Individual Cash Account
An individual cash account in Questrade lets you open a basic investment account used for holding and trading various securities. There are no special tax benefits, but a cash account is the most straightforward option for general investing.
RESP
Registered Education Savings Plans (RESPs) are designed to save for a child’s post-secondary education. They offer tax-deferred growth and potential government grants. Questrade has Individual and Family RESP options. Questrade offers both RESP and Family RESP.
Entities and Trusts
Entities and trusts are legal structures that can be used to hold and manage investments. They are often used by individuals who want to protect their assets, reduce their tax liability, or plan for their estate.
Entities and trusts can be complex legal structures, so it is important to seek professional advice before using one to hold and manage your investments.
Questrade accommodates investors with accounts for corporations, partnerships, trusts, and other entities. These account types have specific requirements and may be best discussed with their customer support.
Forex and CFDs
Forex and CFD accounts in Questrade are optimized for trading on both individual or joint forex and CFDs. Forex accounts on Questrade offer flexible leverage options, allowing traders to control their exposure and potential returns. Leverage enables traders to amplify their trading positions with borrowed capital, increasing both potential profits and losses.
Questrade also supports a wide range of currency pairs, including major, minor, and exotic pairs. Traders can choose from various currency combinations to create customized trading strategies.
Meanwhile, CFD accounts on Questrade offer exposure to a diverse range of asset classes, including stocks, indices, commodities, and bonds. Traders can speculate on the price movements of these assets without owning the underlying instruments.
Similar to forex accounts, CFD accounts provide leverage, enabling traders to magnify their trading positions and potentially increase returns. CFDs can be used for hedging purposes, allowing traders to reduce their exposure to risk in existing investments. By taking opposite positions in CFDs, traders can offset potential losses in their underlying portfolios.
Does Questrade provide educational resources?
Yes, Questrade provides educational resources because the company understands that investing knowledge is essential for the success of their clients. Questrade offers a dedicated “Learning Center” accessible through their website with a variety of resources. Questrade has comprehensive learning materials for beginners up to experienced traders looking to enhance their skills.
Their educational materials are divided into categories: Questrade Basics,Investment Concepts, The Markets, and Goal Tracking. This structured approach helps you find relevant information based on your experience level and areas of interest. These resources range from written articles and tutorials to interactive webinars.
Additionally, Questrade provides platform-specific tutorials to help you navigate their trading interfaces. Since understanding a platform is essential to effective trading, these tutorials are invaluable. Lastly, they have an extensive FAQ section to quickly find answers to common questions.
How to open a Questrade account in Canada?
To open a Questrade account in Canada, you can visit the Questrade website and follow the steps outlined for the account type you choose. Just remember that there are two types of accounts offered by Questrade: self-directed investing and Questwealth Portfolios. Decide which type you want to use before opening an account.
Here’s a step-by-step guide on how to open a Questrade account in Canada.
- Choose Your Account Type
Visit the Questrade website and explore the different account options (TFSA, RRSP, Margin, etc.), including choosing between self-directed investing and professionally-managed Questweatlh Portfolios.
Consider your investment goals and tax needs to select the most suitable account type.
- Start the Application
Click “Open an Account” on the top right corner of the Questrade website. Begin filling in the online application form.
- Provide Personal Information
Enter your full name, date of birth, Social Insurance Number (SIN), contact details, employment information, and other required fields.
This information is required for regulatory purposes.
- Verify Your Identity
Questrade needs to verify your identity. You may be able to do this by uploading government-issued photo ID and other supporting documents.
Follow the instructions provided during the application.
- Review and Submit
Carefully review all the information you entered. Ensure everything is accurate and complete.
Electronically sign the application documents.
- Wait for Approval
Questrade will review your application, typically within a few business days.
You’ll receive an email notification once your account is opened.
- Fund Your Account
Once approved, you can fund your account using methods like online bill payment, electronic funds transfer (EFT), or wire transfer.
How to deposit and withdraw money on Questrade?
To deposit and withdraw money on Questrade, you can visit the “How can I fund my Questrade account” section on the Questrade Basics for more details on funding methods. The section shows the overview on how to fund in Questrade, how to fund using online bill payments, as well as transferring funds from other brokers.
Below is a quick overview on how to deposit and withdraw your money on Questrade:
How to deposit money on Questrade?
Depositing money on Questrade can be done in multiple ways. Here are the funding methods that Questrade offers:
- Online bill payment: can take up to 1-2 business days. Using this method is completely free of charge. However, it can only support CAD.
- Instant deposit: Questrade supports instant deposit from your Visa or Interac Debit Cards. However, you may experience delay on Interac since it may ask for extra validation for the process to go through. Also, it can only support CAD.
- Brokerage transfer request: usually takes around 20 business days and another 1-2 business days after Questrade receives your money from the previous broker. The transfer request can both support CAD and USD accounts.
- Wire transfer: supports CAD and USD. Can take 1-2 business days.
- Pre-authorized deposits (PADs): ideal funding method for USD currency. Deposits under $10,000 take 3-4 business days, and total daily deposits of more than $10,000 may take up to 7 business days. Both processing timeframes apply to USD and CAD deposits.
- Third party deposits: transactions where funds are transferred from any name different from the account holder. This deposit request can only occur under four specific scenarios. The cases are transferring funds from your own bank account with a different account holder name, from your corporate bank account, from a joint bank account, from your spouse’s bank account. Expect a cancellation for any request that does not meet the criteria mentioned.
How to withdraw money on Questrade?
To request for a withdrawal on Questrade, log in to your account and navigate to the “Requests” tab and select “Withdraw Funds”.
After that, choose the account you want to withdraw from. Select the currency, input the desired amount and pick a withdrawal method. You can also convert USD to CAD and vice versa.
Make sure to link the bank or any destination account of choice. The linked bank accounts should appear on the drop down. If you haven’t, you will have to add the bank account you want to send it to before submitting the request.
The processing time depends on the withdrawal method of choice. For example, EFT (free) takes 3-5 business days and you can only withdraw $25,000 USD or $50,000 CAD per day.
On the other hand, Wire transfers only take 1-3 business days. There is no withdrawal limit per day using Wire. However it charges $20 CAD for CAD, $30 USD for USD, and $40 USD/CAD for international wires.
