Best Options Trading Platform Canada

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Choosing between brokerage platforms can be difficult because their strengths differ when considering key features including trading commissions, order types, research tools, market data and support. to the customer.

Best Options Trading Platform Canada

Especially when trading options, you also want to make sure the platform is easy to navigate, especially if you’re new to options investing.

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Advanced traders who want to deploy multi-leg option strategies can use Questrade Edge. The standard trading commission for options trades is $9.95 plus a $1 fee per contract. Traders with active options receive a discount and can choose between fixed or variable fees:

There is also an $89.95 monthly fee for Advanced Live Market Data, which is either partially or fully discounted depending on how much you pay in commissions each month.

In order to trade any assets on Questrade, you must deposit at least $1,000 into your new account. It has four approval levels for trading options with different minimum balance requirements.

Level 1: No minimum. You can use long call and put, long straddle/long strangle, short covered calls and long put strategies.

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Level 2: No minimum. Available strategies include long roof call, short collars, long collar and short collar (except those available at level 1).

Level 3: minimum CAD 5,000. Other strategies available at this level include long/short vertical call/put, long butterfly, long condor, short butterfly, short condor, short iron butterfly, short iron condor , long iron butterfly and condor.

Level 4: $25,000 minimum. It also includes short calendar call/put, short diagonal call/put, long/short calendar call/put with European options, long/short diagonal call/put with European option, short straddle, short strngle and short option.

TD Direct Investing is a division of TD Waterhouse Canada owned by The Toronto-Dominion Bank. This is one of the best trading broker options owned by a major bank.

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Depending on your online trading experience, you can choose one of three trading platforms: WebBroker, TD app and Advanced Dashboard.

All three platforms offer strategies with multiple branches (up to 2 branches); However, the Advanced Dashboard also supports streaming market data, advanced analysis options, charting and order types (26 predefined option strategies).

The fee for Tier 1 and Tier 2 real-time data streaming ranges from free to $229 per month depending on your business activity, asset size and data package.

While all of these platforms can be used to place options trades, Trader Workstation is your choice for advanced options orders, algorithmic trading and analysis.

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Some of the options trading tools in Trader Workstation include Write/Reverse Options Tool, OptionsTrader, Options Portfolio, Options Strategy Builder, Options Strategy Lab, Volatility Lab and more.

The mobile app is also very versatile, offering Level II market data, technical analysis tools, streaming intelligence, alerts and access to third-party research.

Although commission-free options trading is not available in Canada, these are some of the lowest fees you will pay in options trading.

Qtrade investors can trade using the website or mobile app (Android and iOS devices). A trial account is also available for 30 days if you want to get an idea of ​​how the platform works.

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Active traders who place 150 or more trades per quarter or have $500,000+ in assets qualify for the Investor Plus price, which is $6.95 + $1.25 per contract.

National Bank Direct Brokerage, owned by the National Bank of Canada, offers some of the cheapest trading options in Canada.

When National Bank Direct Brokerage (NBDB) announced last summer that it would begin offering commission-free stock and ETF trades, it became the only bank-owned brokerage to do so.

Compared to TD Direct Investing, it has lower average trading fees. You can use the CIBC Investor’s Edge trading platform to screen and filter assets, access research reports and advanced charting tools.

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What are the options? An option is a derivative, a contract that gives the buyer the right, but not the obligation, to buy or sell the underlying asset on a specific date (the expiration date) at a specified price (the strike price). Corporate Financial Institution.

A call option gives you the right to buy an underlying asset (eg share) at a specific price on or before a specific date.

Depending on the performance of your options relative to the price of the underlying asset (the stock) and the price of the option contract (ie, the premium), you can choose to:

Suppose your favorite company’s stock (stock A) is currently selling for $70 per share and you expect it to rise in the coming months.

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You decide to buy a “call option” at the strike price of $70 for $5 per share. Since the contract contains an option of 100 shares, you pay $500 (5 x 100 shares) for the contract (i.e. the premium).

Since you have the right to buy 100 shares of A for $70, you exercise that right, buy 100 shares for $70, and sell them for $85.

In theory, your profit per share is $10 (ie $15 minus the $5 premium you paid initially) and a total of $1,000 for a 200% return.

You can also play it the other way around by buying a “put option” if you think the company’s stock will go down.

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If the price falls to $55 on or before expiration, you can exercise the right to sell 100 A shares at $70 by buying them at $55 and selling them at $70. This results in a profit of $1,000 ($1,500 minus the $500 premium).

The two examples described above are the most basic option strategies available. It gets harder, with some strategies exposing you to unlimited disadvantages (losses).

Unless you know what you are doing, my advice is to stay away from options trading until you learn the basics.

Wealthsimple Trade does not offer options trading. You can only use the platform to buy and sell stocks and ETFs using a cash account. Margin is currently unavailable.

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The best stock trading platform in Canada is Questrade. For beginners, the best stock trading app with no trading commissions is Wealthsimple Trade.

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Enoch Omololu is a personal finance expert and veterinarian. He holds a Masters in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance including the Canadian Securities Course. He also holds an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch is passionate about helping others win with their finances and has been writing about financial matters for over ten years. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, CBC News, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post and many other personal publications in finance. Learn more about him on the About him page.

His top investment tools include Wealthsimple and Questrade. Earn cash back on purchases at KOHO, monitor your credit score for free at Borrowell and earn interest on savings at EQ Bank.

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Canadian citizens looking to invest online in the stock market have a variety of options. Online brokers come in many varieties, from deep discounts to full service, while others are known for their trading or research tools.

The largest in the world with total assets of more than 3 trillion dollars. In most cases, Canadians also have easy access to trading securities on the NYSE and NASDAQ stock exchanges in the United States, which are the largest and second largest in the world.

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$0.01 per share ($4.95 min / $9.95 max). For Canadian residents, Questrade is the best online broker to trade not only the Canadian stock market but also the US stock market. The client experience is seamless, the tools are plentiful, and the commissions are competitive. Read the full review

$8.75 per trade. Qtrade Direct Investing shines with its user-friendly website and intuitive client experience. While Questrade is the leader in its trading platform, Qtrade provides a more robust stock research center and portfolio analysis tools.

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