5 Best Day Trading Platforms in Canada

Are you interested in getting involved in day trading? It’s a challenging profession, but if you have a knack for numbers and are a self starter, it could be a lucrative endeavor. Before you can begin your day trading journey, you must choose an online platform to facilitate your trades. There are a variety of features to consider, such as fees, supplemental market information, and user friendliness. This concise guide presents the 5 best day trading platforms in Canada. By the end of this guide, you can make an informed choice to kickstart your day trading journey. Continue reading to find your perfect platform!

best day trading platform canada

What is day trading in Canada?

A day trade is the process of an investor buying a financial instrument and selling it off on the same day. The goal of this investment is to make short-term profits from price fluctuations. In other words, you buy low and sell high within a day. The financial instrument used for day trading is often stocks, but it could be any other asset that can be bought and sold in the short term, such as bonds, foreign currency, or ETFs.

CIBC Investor’s Line Offer

Up to $6.95 per online stock or ETF trade. Plus, there’s no minimum account balance.

Day trading is the direct opposite of investments like real estate or other assets that are held in the long term. With these, there is a longer waiting period before you can make a profit. In addition, it’s challenging to buy and sell assets like real estate in the short term. Typically, it can take a year or longer to offload these kinds of investments.

When compared to other forms of investing, day trading is high risk. It takes time to master the craft and mistakes while you’re learning can be costly. But when done right, you can make huge profits in a short time frame. There are a variety of risks and rewards, depending on what strategy you follow. Common strategies include trend following, scalping, and news trading. Expert traders use charts, technical analysis, and market data to aid their efforts. These tools help them to make quick and informed decisions and cut losses.

Related Reading: Best Chequing Accounts in Canada

Is day trading profitable in Canada?

Day trading in Canada, like in any other country, can be profitable for some individuals. But, as with everything, it comes with risks and challenges. In addition, it’s not the appropriate profession for everyone, it really depends on your skills and personality. If you’re good with numbers, are a self starter and have an analytical mind, day trading can be a lucrative profession.

Another thing to consider when it comes to profitability is how much you’re willing to invest. Naturally, the more you invest, the more likely it is that you’ll earn a big profit. However, there is also a big risk that you will lose your initial investment, especially in the beginning when you’re learning. For this reason, it’s advisable to maintain an emergency fund. Also, you shouldn’t gamble investment funds you’ve already established, such as for school or retirement.

The average annual income of a day trader in Canada is $97,440. The pay range can be anywhere from $64,000 to $163,000. Keep in mind that the salary you earn from day trading is dependent on the effort you put in. Don’t expect to be making $163,000 in your first year! It takes time to master your craft and you will make expensive mistakes during the process.

Before engaging in day trading in Canada, understand the market, strategies, and risks. We recommend starting with a well-defined, strategic trading plan. Use simulated trading accounts to practice, and consider seeking advice from financial professionals. Also, only trade with money you can afford to lose.

5 Best Day Trading Platforms in Canada

Are you looking for the best day trading platform in Canada? We can’t decide which is best for you, but we can review some popular options. Below are our top 5 picks for the best day trading platforms in Canada. 

Platform Key Features
Questrade– Wide range of trading options
– Four trading platform options
– Competitive fees
– No minimum account requirement
Tax-loss harvesting
– Real-time rebalancing
– Automatic dividend reinvestment
– Access to local and foreign markets
Interactive Brokers– Advanced trading for global markets
– Multiple asset trading
– Low commission fees
– Web platform, Trader Workstation, IBKR Mobile
– No investment minimum
– Access to cryptocurrency investments
– Available support channels
– Tiered pricing as low as $0.0005 per share
Wealthsimple– User-friendly investment solutions
– Commission-free trading
– Mobile trading app for iOS and Android
– No minimum deposit
– Trade Plus subscription for real-time data and advanced features
– Cash bonuses on select deposits
Fusion Markets– Diverse trading instruments, including forex, energy, and CFDs
– MetaTrader 4 platform
– WebTrader for browser-based trading
– Mobile apps for Android and iOS
– Multi Account Manager for professionals
– Myfxbook AutoTrade for social trading
– DupliTrade to emulate successful traders
– No minimum account requirement
– Zero account fees (but not available in the province of Ontario)
AvaTrade– Comprehensive trading platform
– Web-based trading platform
– MetaTrader 4 and MetaTrader 5 options
– AvaOptions for multiple currency pairs and options
– Mobile compatibility for iOS and Android
– No minimum account requirement (through its partner, Friedberg Direct)
– Portfolio simulations and risk management tools

Related Reading: Commission Fees in Canada: A Complete Guide

1. Questrade

Questrade started as an avenue for brokerages in the late 90s. Now, it has grown into a big day trading platform with more than $30 billion assets under its belt. The wide range of options it offers is one of the reasons thousands of users flock to it yearly. On this platform, you get a variety of securities to choose from. Then, there is a carefully selected range of trading tools at your service. 

As a leading day trading platform in Canada, Questrade offers competitive fees. You can trade with local and foreign markets using any of its four trading platforms. The first is the web-based platform. This grants you access to real-time data, charting tools, and instant notifications. Or, you can use the Questrade app, which is the same as the web platform. With this one, you can trade on the go with an Android or iOS device.

Then, there is the Questrade IQ Edge, a downloadable desktop-enabled platform. With this one, you can analyze charts, set alerts, and customize windows. But you can only use this on a Windows or MAC computer. The last option is Questrade Global, which is compatible with Windows, Linux, and Mac. You can find live charting with annotations, customized pop-up alerts, and more here. It also has a separate app for iOS and Android devices, giving you more options.

CIBC Investor’s Line Offer

Up to $6.95 per online stock or ETF trade. Plus, there’s no minimum account balance.

2. Interactive Brokers

If you already understand how day trading works, this option is good for you. It is set up for advanced traders who want to reach a global market. With Interactive Brokers, you can trade stocks, futures, currencies, and multiple financial assets. It attracts low commission fees, a feature many expert traders are drawn to. Like Questrade, there are trading options here for you to pick from.

First, there is the Client Portal, which is its web platform. Through it, you can place orders, view recent trades, and stay on top of important news. Next, they have the Trader Workstation, a separate platform for experienced traders. This gives you access to various order types, market data, and monitoring tools. You can download it for free on your Windows, Mac, or Linux-enabled computer. 

For traders on the move, the IBKR Mobile option makes things easier. With it, you can access over 130 global financial markets. Then, you get the same information as anyone using the regular workstation. With an Android or iOS device, you are good to go. 

3. Wealthsimple

Wealthsimple Trade stands out as one of the premier Canadian stock brokers. It has earned its reputation as a go-to choice for long-term investors and passive traders. What sets this firm apart is its dedication to providing user-friendly investment solutions. These solutions cater to the needs of both seasoned investors and beginners alike.

One of Wealthsimple’s standout features is its easy-to-use trading application. This mobile app empowers users to execute trades without professional assistance. It is available on iOS and Android devices. The simplistic user interface ensures that even beginners can easily navigate the platform. It also has a commission-free approach to buying stocks and ETFs. This makes it an excellent choice for cost-conscious investors. These are those who want to minimize fees eating into their returns. 

However, it has its limitations. For example, you may experience delayed price quotes with a free account. This is a drawback for investors who want real-time data. But the good news is that with a Trade Plus subscription, you can say goodbye to this issue and more. For only $10 a month, you can get real-time market data and make instant deposits up to $5,000. You also get advanced features and tools needed for active trading strategies. 

Related Reading: Questrade vs Wealthsimple: Which One is Right for Your Money?

4. Fusion Markets

Fusion Markets is a versatile platform that caters to diverse trading preferences. It offers an array of financial instruments like forex, energy, and precious metals. Others are equity indices and CFDs as well. It features MetaTrader4, which is the industry standard for forex trading. You can access this robust platform on your Windows or Mac device. 

The WebTrader for MetaTrader 4 also allows you to trade via your internet browser. This is fitting for persons who don’t want to download an application. It’s compatible with Windows, Mac, and Linux systems, providing flexibility.

Fusion Markets caters to traders on the move with apps for Android and iOS devices. These apps offer essential trading functionalities, including position management and analytical tools. Another feature is the Multi Account Manager, designed for professionals managing multiple accounts. This platform enables trading across unlimited accounts, thereby streamlining portfolio management.

With its DupliTrade, you can emulate successful traders with proven track records. This way, you can mirror their strategies and improve your craft. Note that Fusion Markets is not available for Ontario residents at the time of writing.

5. AvaTrade

AvaTrade offers a diverse range of trading opportunities across various financial markets. From forex to stocks, AvaTrade provides a comprehensive platform for traders. But to access its services in Canada, there’s a catch. You must open an account through its partner, Friedberg Direct.

One of the standout features of AvaTrade is its web trading platform. This web-based solution allows traders to start new trades. They can also monitor open positions without downloading software. Thus ensuring convenience and accessibility.

For those who prefer the popular MetaTrader 4 platform, you can find it here. It comes complete with one-click trading. You also get various built-in indicators and real-time news streaming. If you’re looking for even more advanced features, there’s the MetaTrader 5. This is an updated version of its predecessor. This version offers additional timeframes, enhanced indicators, various pending order types, and more. It caters to the needs of both novice and experienced traders.

CIBC Investor’s Line Offer

Up to $6.95 per online stock or ETF trade. Plus, there’s no minimum account balance.

AvaOptions is another valuable offering. It enables traders to engage in more than 40 currency pairs. It also allows them to explore a multitude of call and options combinations. This platform includes professional risk management tools and portfolio simulations. You can access all of these on desktop and mobile devices.

For Mac users, AvaTrade/Friedberg Direct ensures compatibility with the MetaTrader 4 platform. This allows for the trading of commodities, stocks, and indices. So, whatever device you use, there’s an option for you.

Related Reading: The Best Discount Brokerages in Canada

What is the best day trading platform in Canada?

The idea of the best day trading platform in Canada is subjective. It also depends on individual preferences, trading strategies, and specific needs. We reviewed some of the top performers catering to day traders in Canada above. You can check their features and advantages above to see which is the best for you. 

Choosing the Best Day Trading Platform in Canada for You

Choosing the best day trading platform in Canada depends on many things. These include your unique trading preferences, objectives, and experience level. Each platform we mentioned above has its distinct set of features and advantages. Let’s say you prioritize user-friendly interfaces, advanced trading tools, or low fees. There’s definitely a platform that can align with your requirements. But, consider factors like fees, available assets, and customer support before choosing one. Finally, here’s a pointer to the best day trading platform in Canada. It will help you execute your trading strategy. It must also align with your financial goals and risk tolerance.

Read More: How to Invest Your Money

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