Choosing a Broker & Opening Your First Account Core
Choosing a broker is a decision people agonise over for months and then get wrong for the wrong reasons. Two numbers matter far more than the rest, and neither of them is the sign-up bonus.
Module 4 · Lesson 4.34 lessons~11 minNot started
The short answer
The factors that compound are commissions and foreign exchange fees — most Canadian brokers charge around 1.5% each way on CAD/USD conversion, which dwarfs trading commissions for anyone buying US-listed holdings. After that: which account types are offered (make sure FHSA is included if you need one), fractional shares, DRIP support, and platform reliability. Sign-up bonuses are one-time; fees recur for decades.
By the end of this lesson you'll be able to
Rank broker features by how much they actually cost you over time.
Compare the main Canadian discount brokers on objective criteria.
Complete an account opening: KYC, funding by EFT, and placing a first order.
Recognise the FX cost that most new investors never notice.
What matters, ranked by what it costs you
Sort broker features by lifetime cost rather than by how prominently they are advertised, and the list reorders dramatically.
Foreign exchange fees. The largest and least visible cost for most Canadians. Converting CAD to USD to buy a US-listed ETF typically costs around 1.5% each way at a mainstream broker, embedded in the exchange rate rather than charged as a fee. Converting $50,000 costs about $750 in a transaction that shows no commission at all. Lesson 6.3 covers Norbert's Gambit, which reduces this to near zero.
Commissions. Ranges from $0 to about $10 a trade. For someone making 12 purchases a year, the difference between $0 and $10 is $120 annually — real but modest. For a frequent trader it dominates. Several Canadian brokers now offer commission-free ETF purchases.
Account types offered. A broker that does not offer an FHSA is unusable if you need one. Check that TFSA, RRSP, FHSA, RESP and non-registered are all available, and whether any carry administration fees.
Fractional shares. Lets a $200 contribution be fully invested rather than leaving a cash remainder. Genuinely useful for small, regular contributions; irrelevant at larger sizes.
DRIP support. A dividend reinvestment plan automatically buys more units with distributions. Most Canadian brokers offer synthetic DRIPs that buy whole shares only, leaving the remainder as cash.
Platform quality and support. Hard to evaluate in advance and mostly matters on the day something goes wrong.
What does not matter: the sign-up bonus. A $200 cash bonus is a one-time payment; a 1.5% FX spread and a $10 commission recur for decades. Choosing a broker for the bonus is optimising the smallest number on the page. The same applies to app aesthetics — you will look at it four times a year if you are doing this correctly.
Comparing the main Canadian options
Advertiser disclosure: RiskStock may earn a commission if you open an account through some of the links on this page. This never affects which brokers we include, how we describe them, or the order they appear in — the comparison below is based on publicly available features and fees, and we list brokers we have no commercial relationship with alongside those we do. Read our full disclosure policy and editorial policy.
Fees and features change frequently. Verify current pricing on each broker's own site before opening an account — the figures above are indicative and were accurate at the time of writing. See our full broker comparison for the detailed, regularly updated version.
How to actually choose
If you will hold Canadian-listed ETFs only and contribute monthly, almost any of these works — pick on commission-free ETF purchases and whether the FHSA is offered. If you will hold a meaningful amount in US-listed securities, FX cost becomes the dominant factor and is worth optimising for specifically. If you are likely to procrastinate, choose the one with the simplest onboarding, because an account opened this week beats a marginally cheaper one opened next year.
Opening the account, step by step
The process is standardised across Canadian brokers because it is driven by regulation. Expect 15–30 minutes, and one to three business days for approval.
Choose the account type first. TFSA, RRSP, FHSA or non-registered — per the Module 2 waterfall. You can open several; each is a separate application. Do not default to non-registered simply because it is listed first.
Identity verification (KYC). Legal name, date of birth, SIN, address, employment and employer. The SIN is legally required for registered accounts so the CRA can track contribution room. Some brokers verify electronically; others ask for photo ID.
The suitability questionnaire. Questions about income, net worth, investment knowledge, objectives and risk tolerance. Answer honestly rather than strategically — the answers determine what you are permitted to buy and exist to protect you. Overstating experience to unlock options trading is a bad trade.
Beneficiary or successor holder designation. Easy to skip and genuinely important. For a TFSA, naming your spouse as successor holder rather than beneficiary preserves the account's tax-free status on death. Lesson 7.3 explains why the difference is worth thousands.
Approval, then funding. Once approved, link a bank account and transfer.
Every one of these failure points is common, and every one is avoidable by knowing it exists before you start.
Funding and the first purchase
Funding. An electronic funds transfer from your bank is free at every major broker and takes one to three business days. Some also accept bill payments or Interac transfers. Wires are fast and cost money; there is rarely a reason to use one.
The most common failure of all: money arrives in the account and sits in cash for months while the investor waits for a better entry point. Funded is not invested. The cash earns nothing, inflation erodes it, and the "better moment" almost never announces itself. If this is a risk for you, set up an automatic recurring purchase alongside the automatic transfer, so the buying is not a decision.
The first order. Once cash settles, find the ticker, choose quantity, and — this matters — select limit rather than market. A market order buys at whatever the best available price is, which on a thinly traded ETF can be meaningfully worse than the quoted price. A limit order sets a maximum you will pay. Set it slightly above the current ask and it fills almost immediately with a ceiling on what you can be charged. Lesson 4.4 covers order mechanics fully.
If you are buying US-listed securities, watch the currency. Buying a US-listed ETF with Canadian dollars triggers an automatic conversion at roughly 1.5%. On a $10,000 purchase that is $150 — more than fifteen years of an index ETF's MER, paid in one invisible instant. Norbert's Gambit (Lesson 6.3) reduces this to near zero, and for many Canadians a Canadian-listed ETF holding the same underlying securities avoids the problem entirely.
Common questions
Which broker is best for beginners in Canada?
For someone buying Canadian-listed ETFs monthly, the practical criteria are commission-free ETF purchases, whether the FHSA is offered, and how easy the onboarding is. Wealthsimple and Questrade are the two most commonly chosen by self-directed Canadian beginners; the big-bank brokerages cost more per trade but keep everything under one login. If you will hold significant US-listed securities, foreign exchange cost matters more than anything else and Interactive Brokers is the usual answer. Verify current pricing directly, since fees change.
How long does it take to open a brokerage account in Canada?
The application itself takes 15 to 30 minutes, and approval typically takes one to three business days. Funding by electronic transfer from your bank adds another one to three business days before the cash is available to trade. Have your SIN, employment details and banking information to hand — the SIN is legally required for any registered account so the CRA can track your contribution room.
Key takeaways
FX fees (~1.5% each way) usually cost far more than commissions. On a $50,000 conversion that is about $750, invisible inside the exchange rate.
Verify the broker offers every account type you need — particularly the FHSA, which not all of them do.
Sign-up bonuses are one-time; fees recur for decades. Never choose a broker on the bonus.
Funded is not invested. Automate the purchase alongside the transfer, and always use limit orders.
Educational purposes only — not financial, investment or tax advice. RiskStock is not a registered dealer, adviser, or tax professional. Nothing in this course is a recommendation to buy or sell any security or product. Tax and benefit figures are for the 2026 tax year, were verified against official sources on 2026-07-27, and change annually — confirm your own numbers with the CRA and a qualified professional before acting.