What are the Best Tips for Online Stock Trading in Canada?

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  • Written By: Dana DeCecco
  • Edited By: A. Joseph
  • Last Modified Date: 20 August 2019
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The nature and method of online stock trading in Canada mirrors online trading techniques globally. The best tips for online stock trading in Canada including taking advantage of Canada's tax laws regarding online investments, choosing a broker carefully and making use of any charting programs offered by the broker. As with any type of stock trading, using a well-tested investment strategy is recommended.

Online stock trading in Canada is provided by a host of online brokers. Equities listed on the Toronto Stock Exchange (TSX) as well as international equities can be traded on a variety of platforms. The TSX provides fully electronic processing on more than 4,000 securities.

Day trading profits in Canada are treated as business income. Canada does not enforce strict margin requirements for day trading. Losses can be tax deductible and included with other business expenses and accounting methods. These regulations are very advantageous for day traders in Canada.

Canadian online discount brokers provide a variety of platforms and services. The investor might want to consider trading U.S. stocks and other international stocks. The online broker will supply a list of all the products offered. Commission rates will vary among online brokers. These concerns should be covered before opening an online account.


Some Canadian stock brokers might be owned and operated by Canadian companies, and others are owned by international companies operating in Canada. These brokers are competing for business and might offer incentives to new account holders. Free trades and lower commission rates are types of incentives offered. Brokers might also provide platforms that are conducive to the investors' specific style of trading.

Online stock trading in Canada requires education and training. Most online brokers are discount brokers providing limited online assistance to investors. Discount brokers generally provide online educational resources. The online investor must be very familiar with the platform provided by the broker.

The investor should evaluate the platforms offered by various brokers for ease of use. Many brokers offer paper trading or practice accounts at no cost to the trader. Order entry and exit programs should be easy to understand and use. The types of orders available on the platform might be important to the investor, depending on the style of trading being used.

Various charting programs and data feeds are offered by Canadian online brokers. The charting program should supply the features necessary for technical analysis of the markets being traded. Some charting packages offer indicators, drawing tools and system development programs. Certain programs allow the investor to trade directly from the charts.

Fundamental resources are included with some online broker accounts. News feeds and related market information might be available from the broker or a third-party vendor. Stock sorting and searching capabilities might also be a consideration for the equity investor. The investor interested in online stock trading in Canada has a wide array of services from which to choose.

Securities dealers are regulated in Canada at the provincial level. Canadian federal regulators are responsible for enforcing the federal laws that protect consumers in their dealings with financial institutions. Two of the most serious offenses under Canadian law are insider trading and tipping. These similar offenses are punishable by criminal law.


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