Questrade vs. Interactive Brokers Canada
If you are reading this article, you are likely having trouble deciding whether Questrade or Interactive Brokers Canada is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this Questrade vs Interactive Brokers Canada review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
|Feature||Questrade (visit site)||Interactive Brokers Canada (visit site)|
|IIROC||SIPC, SEC, FINRA|
Type of Broker:
|Market Maker,ECN/STP||Market Maker|
U.S. Clients Allowed:
|None (but $1,000 required to start trading)||$10,000; $5,000 for an IRA|
Commissions / Spreads:
|Both||Fixed; Volume Tiered|
Features and Platforms
Questrade ranks among the best Canadian brokers, while US broker Interactive Brokers established itself as a trusted broker globally. Both present investors and traders with proprietary trading platforms, but Interactive Broker takes the edge due to its support for algorithmic trading solutions. Neither one offers the familiarity of MT4 or cTrader, but Interactive Brokers maintains extensive integration with third-party providers. Questrade and Interactive brokers maintain high-quality research tools, but Interactive Brokers complements it with education for beginner traders. Managed portfolios are available at both, but Interactive Brokers remains more diversified.
|Type of Platform:||Proprietary platform, Web-based||Web-based, Other|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
Clients at Questrade can trade stocks, ETFs, options, Forex, IPOs, CFDs, mutual funds, bonds, GICs, and commodities. While Questrade does not maintain a complete asset list, it covers a broad range of assets, offering excellent diversification. Not many brokers can compete with Questrade in asset selection, but Interactive Brokers ranks among those with a better choice. It presents 135 markets across 33 countries in 23 currencies for one of the best overall selections. Both brokers grant retail traders an exceptional asset selection, but Interactive Brokers also caters to institutional clients, including hedge funds, making it a superior choice.
Questrade vs. Interactive Brokers Fees
Forex spreads at Questrade commence from 0.8 pips or $8.00 per lot, commission-free. It is acceptable but more expensive compared to competing brokers. Equity trading starts from as little as $0.01 per share with a minimum cost per transaction of $4.95 and a maximum of $9.95, an excellent cost structure. Interactive Brokers presents a commission-based Forex trading environment with spreads as low as 0.1 pips for a commission of $2.00 per order or $3.00 per lot, one of the best industry-wide. CFD traders pay a minimum fee of only 0.05%, 50% cheaper compared to competitors.
Security and Trust
The Investment Industry Regulatory Organization of Canada (IIROC) regulates Questrade. It is also a member of the Canadian Investor Protection Fund (CIPF). Questrade offers services under Questrade Wealth Management Inc. (QWM) but is neither regulated by, nor a member of, the IIROC and the CIPF. Questrade remains one of the most trusted brokers and the only broker not affiliated with a bank in Canada. The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are the primary regulators of Interactive Brokers. It also maintains numerous international subsidiaries with oversight from their respective regulators.
Questrade vs Interactive Brokers – Verdict
Questrade and Interactive Brokers Canada remain two of the best choices for Canadian clients and feature similar advantages in their core trading environments. Both present a broad asset selection to traders and investors, but Interactive Brokers pulls ahead with an asset selection most brokers cannot match. Trading costs remain competitive at Questrade and Interactive Brokers alike, and while the latter pulls ahead, it depends on the individual and their preferences. Clients have access to manager portfolios at both brokers, but Interactive Brokers fully supports algorithmic trading solutions and API trading, delivering a distinct edge. While both present their proprietary trading platform, the potential at the latter remains notably superior. Beginner traders get an extensive educational package at Interactive Brokers, which Questrade fails to provide. The Investor’s Marketplace set Interactive Brokers further apart from Questrade, where 1,500+ services ensure traders obtain a distinct edge in competitive markets.
Is Interactive Brokers better than Questrade?
Both brokers offer a competitive trading environment, but Interactive Broker is better than Questrade as it presents more than 1,500+ services in its Investor’s Marketplace. It also supports algorithmic and API trading, a broader choice of assets, and overall better trading costs.
Is Interactive Brokers cheaper than Questrade?
Interactive Brokers is cheaper than Questrade, but the final costs depend on the individual preferences of clients. It is possible to achieve a better cost outcome at Questrade.
Can I use Interactive Brokers in Canada?
Interactive Brokers operates a Canadian subsidiary regulated by the IIROC. It is also a member of the CIPF, presenting an equally protected environment as Questrade.
Which trading platform is best in Canada?
Interactive Brokers provides the best trading platform in Canada. It offers significantly more diversification opportunities and upgrade potential than its competitors in Canada, including algorithmic and API trading.