Etrade Canada is a stock trading forum and is as old as Apple. It was started in 1982 by two American guys as the only trading platform in town but with time, Etrade gained popularity in America and they started their branches in other countries like Australia and ETRADE Canada.
- Etrade Canada was a precursor in the stock trading market founded in 1982.
- Alternate options for Etrade Canada include Wealthsimple, Interactive brokers, Questrade, and Canadian Banks.
- With $4.7 billion assets, Etrade was sold to Scotiabank for $442 million in 2008 due to financial crises.
…and Much More!
Etrade Canada – Is It Available?
Due to the financial crisis, Etrade was purchased by another Canadian company Scotiabank is only $442 million, previously known as Nova Scotia, and renamed Etrade as Scotia trade.
- ETRADE Canada was purchased by Scotiabank in 2008 and since then it is not available in Canada.
It was an American company known for its E-trading stock business and its goal was to make electronic trading and stock market popular among people and make it easy to use for retail investors online.
Etrade Canada Alternatives
It is important to compare various options before investing in the stock market. Also, Etrade is not available in Canada anymore. Here, is the list of alternative options for electronic trading in Canada:
Wealthsimple is a Toronto-based trading platform that makes trading easy and just like Etrade, charges $0 commissions. There are cons too of Wealthsimple i.e. it is not able to trade advanced asset classes like options and future opportunities.
Wealthsimple is one of the largest investing services in Canada for financial investments of about $265 million from Canada and European institutions. One of the investors of Wealthsimple brokerage, the Canadian ShareOwner Investment Inc., who deals with client’s trade, is a member of the CIPF program.
- Wealthsimple offer commission-free trading to people looking for brokerage accounts for trading stocks
- With Wealthsimple, over 8000 Canadian and US stocks can be traded free of commission.
- They provide real-time market data and also offer premium subscriptions for real-time data
- Stocks can also be executed instantly with Wealthsimple.
- Moreover, a minimum account balance is not required and no faxed documents or laborious paperwork is required.
It is a multinational brokerage firm that has stock trading, bonds, options, and other financial assets. The head office of the Canadian branch is located in Montreal. Across the globe, the firm works in 135 different locations and is a licensed broker. They are members of IIROC and offer a wide range of asset advanced asset classes like options and charge reasonable trading commissions.
Also, known as discount brokers, they benefit their customers with the lowest margin rates in the industry. Also, by enrolling in the stock yield enhancement program, customers have a chance to earn extra income. They offer fractional shares purchase, low trading fees, and authentic research tools.
- Interactive brokers have 1million client accounts.
- It is also one of the most reliable brokerages in the market.
- Their per-day trade is over 21 lacs.
- Moreover, Interactive brokers have quite low trading fees.
- The margin rates are as low as 0.75%-1.59%.
The firm is growing rapidly and for anyone looking for self-directed investments in stocks and options with an easy commission structure, Questrade is the best pick. A few years back, they used to charge very low service fees from Canadians for stocks, ETFs, and other types of financial trading instruments.
Also, to help customers with variable needs, they offer different yet fixed prices for different plans i.e. people with large volumes of shares vs people buying expensive companies of lower volume.
- Questrade charge reasonable trading commissions.
- They offer an easy deposit of $3500 in a brokerage account
- They have advanced trading tools and data streams.
- Questrade only charges 1 cent per share commission fees.
- It also enables instant transfer using a visa debit card of $3,500 into a brokerage account.
Canadian banks offer the opportunity to open a full-service account in which you can keep all your investments and personal finances in the same platform to deal with the higher net worth. You can also make use of advanced options like data streams and seeking advice from financial advisors. Etrade was an active retail investor 40 years ago but now advances in technology and options have paced with time and technology.
- RBC Direct Investing
- CIBC Investor’s Edge
- BMO InvestorLine
- TD Direct Investing
- Scotia iTRADE
Also, if you are looking for a bank offered brokerage account with 0% commission on trading, National Bank Direct Brokerage on 23rd August 2021 announced a $0 commission on trading.
However, some banks like CIBC charge $6.95 for stock trading and $8.2 for options including contract and trade fees. Active trading members can get discount offers from their banks, however, discount varies from institution to institution.
Their trading commission structure is almost the same and for 1st tier trading volumes following is the price information i.e.
- Their per trade stock amount is $9.99.
- Canadian Banks charges for Options is $9.99 including per contract $1.25 per trade.
- They also offer the easy transfer of funds from one to another account.
- National Bank Direct Brokerage offers a 0% commission.
- Moreover, active trading members get discounts from their banks.
You might be interested in reading: How To Buy Tesla Stock In Canada?
Etrade – Everything You Need To Know
The American company Etrade was started initially by two Americans Porter and Newcomb with $15,000 in 1982 and was bought by a Canadian Bank i.e. Scotiabank for $442 million due to financial crises in 2008. But, why?
- The answer is during the 2008 financial crisis, everyone either large multinational companies or individuals all were struggling.
Therefore, Etrade decided to divert their efforts, time, and money from non-core assets i.e. Canada to strengthen the core assets i.e. of the USA. Scotiabank, on the other hand, tried to strengthen and expand its roots by buying its competitors and rebranding it into Scotia iTrade to continue its direct investing business.
The Bottom Line
Formerly, Etrade expanded to Canada and Australia to increase its growth. Etrade managed to set $4.7 billion assets at the time of acquisition but regardless, in 2008, Etrade was sold out for approximately $500 million.
Etrade expanded outside of trading i.e. in online banking and advisor services. It hosted 3.6 million brokerage accounts a few years back.
Frequently Asked Questions
Does Etrade operate in Canada?
Etrade does not operate in Canada. In 2008, it was bought by Scotiabank who rebranded it to the name Scotia trade.
How does Etrade work?
Etrade is one of the best brokers for the novice in trading as they offer benefits in commission fees, minimum account, educational courses, and helpful customer service.
Is Etrade free of commission cost?
Yes, Etrade charges zero commission fees on standard stocks and has a user-friendly interface that can be accessed by wealth simple trade platform.
What is the minimum trade on Etrade?
Etrade has $0 commission fees, no account minimum on online trading options.
Is my money safe in Etrade?
Etrade is a member of the Canadian Investor Protection Fund (CIPF) and manages $500,000 for securities of consumer accounts with only 2.5 million dollar cash.