This article will review the best apps for options trading in Canada.
Investors will wish for the best options trading platform with which to make their trades, and there are several brokerage choices, but here are the top best.
What is Options Trading?
Options trading is when one buys or sells an underlying asset at a pre-negotiated price by a specific future date. Trading stock options can be very complex, even more so than stock trading.
Top 9 Best Apps for Options Trading in Canada for 2023
Looking for the best apps for options trading in Canada? These are the top best we consider to offer the best options trading.
#1. CIBC Investor’s Edge
CIBC Investor’s Edge has just 2 trading platforms: The Investor’s Edge website and the CIBC Mobile Wealth app, and it has no advanced platforms.
The site is easy to use, while the app has average reviews. The app is for those with Wood Gundy, Imperial Investor Services, or Private Investment Counsel accounts.
The Options trading commissions are $6.95 for trade plus $1.25 per contract. For students (who desire to have a CIBC Smart Account), commissions are $5.95 for trade plus $1.25 per contract. And active traders (who make around 150 or more trades every quarter) pay $4.95 for trade plus $1.25 per contract.
There are no account minimums to begin trading, and CIBC provides easy-to-follow instructions on making options trade.
Questrade offers trading on its four trading platforms: Questrade Trading (its website, also known as the desktop platform), Questrade app, Questrade IQ Edge, and also Questrade Global.
Newbies should probably stick to Questrade Trading and its app because they are less complicated.
It’s easy to make a trade on its website. However, the Questrade app does not have the best reviews, and users have complained about it being buggy, slow, or freezing.
The commissions are $9.95 per trade plus $1 per contract. Active traders pay about $4.95 for trade plus $0.75 per contract if they pick a fixed plan or $6.95 for each trade plus $0.75 per contract if they select a variable plan.
To qualify for active trader pricing, you must acquire an advanced data package that costs $89.95 monthly.
If you desire to trade options (or stocks), you need at least $1,000 in your account before you can make trades.
This might be a deterrent to some newbie investors. But there is the option to obtain a practice account.
Start investing with a complimentary $50 in free trades for any account activation of $1,000 or more.
#3. TD Direct Investing
TD Direct Investing is among the best apps for options trading in Canada. It offers this on four different platforms: WebBroker (its regular website), the TD app, Advanced Dashboard, and finally, the thinkorswim.
WebBroker and the app are the easiest way to get started for newbies. The thinkorswim platform is only for US options trading.
The website is easy to use, and trading is a breeze. The app is for trading and banking and has fairly good reviews.
Since the app is not just for trading, it’s hard to tell how many good reviews are specifically for its trading features.
The commission for options trading is $9.99 for each trade plus $1.25 for the contract. Active traders over (150 or more trades per quarter) pay $7 for each trade plus $1.25 per contract.
There is no minimum to invest. There are also investment education resources and live and on-demand webinars available for free, even if you are not a client.
#4. National Bank Direct Brokerage
This is another options trading platform that a big bank backs, this time, it is backed by the National Bank of Canada.
One can create an account and begin investing in less than 15 minutes, and they can use the myriad of investing tools to simplify the investing process.
Some of its best features include Market-Q, an integrated tool that displays real-time data to take advantage of price changes, and the OptionsPlay analysis platform, which provides market forecasts and allows you to compare up to 3 different strategies side by side. You can also create watchlists to keep track of all your favorite stocks.
It has very low commissions beginning at $0 per trade plus $1.25 per contract, with a minimum of $6.50 per trade.
For transactions below $2,000, the fee is capped at $19.95.
#5. Interactive Brokers
Interactive Brokers is among the best apps for options trading in Canada, and it has three trading platforms: Client Portal (the website), Trader Workstation, and IBKR Mobile (the app). Newbies should make use of the Interactive Brokers Client Portal or the app.
The website is not hard to use, and making a trade in it, is quite simple. The app has fairly good reviews.
The Commissions are quite low compared to others. They begin at $1.25 per contract with a minimum $1.50 charge for each order for less than 10,000 trades monthly.
The commission is $1.15 for each contract for 10,001 to 50,000 trades per month, $1.05 for each contract for 50,001 to 100,000 trades monthly, and $1 per contract when you make over 100,000 trades a month. But there is still a minimum charge of $1.50.
There isn’t an account minimum to start trading.
#6. RBC Direct Investing
The next best app for options trading in Canada is the RBC’s Direct Investing. The Royal Bank of Canada backs it; it offers free real-time quotes on investments and Level 2 quotes for stocks and ETFs. one can set up watchlists to receive alerts and market commentary.
Before investing, you can use a risk-free practice account to test your strategies before investing your real money.
For regular traders, options trading commissions start at $9.95 plus $1.25 per contract. Active trader pricing drops to $6.95 plus $1.25 per contract for more active traders with more than 150 trades per quarter.
#7. BMO Investor Line
This trading platform seeks to give its investors the best research and expert analysis. It is backed by a large bank, the BMO, one of the big 5 banks in Canada.
Its best features include:
- Top research of Canadian and US equities.
- Analysis tools such as graphs.
- Benchmark tracking.
BMO offers access to over 2,000 stocks across all major North American Exchanges: TSX, NYSE, NASDAQ, and even more.
You can also set up alerts and make trades from the smartphone app.
If you make more than 15 trades per quarter or invest a total of $250,000 or more, you gain access to preferred rates and lower pricing, professional tools such as MarketPro, and dedicated customer support.
For you, not to be confused with Questrade, Qtrade has 2 trading platforms: the website and the mobile app, which doesn’t offer an advanced trading platform.
Regular investors pay a trading commission of $8.75 plus a $1.25 contract. Those who make over 150 trades every quarter or have about $500,000 or more in assets pay around $6.95 for each trade plus $1.25 per contract.
To begin investing, no minimum amount is needed, and you can sign up for a practice account.
#9. Scotia iTrade
Scotia iTrade offers 4 different trading platforms: The Scotia OnLine, Scotia iTrade Trading Desk, Scotia iTrade FlightDesk, and the Scotia iTrade mobile app. Scotia OnLine and the app are suitable for newbies.
The site is simple to use, and making trades is straightforward. The app is only used for trading,
The commission for options trades is $9.99 for each trade plus $1.25 per contract. For those making around 150 or more trades each quarter, the commission is $4.99 for each trade plus $1.25 per contract.
There is no minimum needed to invest, and several investment education resources are offered through iTrade. You do not even need to have an account. But if you wish to trade for free, you can sign up for a practice account.
Each of the brokerages listed in this article offers something different for everyone. The best app for options trading platform is likely the one that you are the most comfortable with in terms of its user experience, reliability, and, most of all, pricing and also commission rates.
Let’s have your view on the best apps for options trading in Canada listed in this article. Kindly drop your view on any of the above-mentioned if you have experience with them.
Watch the video below to know the best apps for options trading in Canada:
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