Beanstox’s investing platform enables investors to curate sector-specific diversified portfolios using automation for a fixed fee.
Presently, Beanstox is not available to Canadians.
While Beanstox may not be accessible to Canadians, there are a number of options that allow investors to create diversified portfolios with a similar cost structure.
Beanstox’s platform features a flat fee structure capped at $5/month which cannot be beat, however the below platforms have robust execution capabilities making them a reasonably good alternative to Beanstox.
3 Alternatives to Beanstox in Canada
Interactive Brokers
Pros
- Low commissions, especially for high-frequency traders.
- Robust platform with a variety of advanced tools.
Cons
- Platform design and function takes some getting used to.
Wealthsimple Trade
Pros
- No account minimums required.
- Easy-to-use mobile and web platforms.
Cons
- Plus subscription required to have a USD account to avoid FX fees.
- Lack of research tools and insights.
Questrade
Pros
- No fees to purchase ETFs.
- Easy to navigate mobile and desktop platform.
Cons
- Minimum account balance of $1,000 is required to trade.
- Subscription required to stream real time quotes.
Interactive Brokers
Interactive Brokers is a great broker for Canadians.
The costs of trading are extremely low, and there are several different pricing structures to choose from depending on the type of trader you are.
The fixed pricing structure offers trading for as low as $0.005 per share of US equities, with a minimum of $1 and a maximum of 1% of the trade value.
For the tiered structure, pricing starts at $0.0035 per share for the first 300,000 shares and drops to $0.0005.
As you can see, high-frequency traders are likely to benefit the most from the Interactive Brokers pricing structure.
In addition, Interactive Brokers has some of the lowest (if not the lowest) margin rates in the industry.
Aside from stocks, investors also have access to a wide range of other assets, including ETFs, options, futures, FOPs, warrants, structured products, SSFs, currencies, commodities, indices, fixed income, and mutual funds.
Interactive Brokers offers their Canadian clients a variety of account options.
Both registered and non-registered accounts can be created in just a few simple clicks.
TFSA, RRSP, Spousal RRSP, margin accounts, and various trust accounts are all available through the trading platform.
Interactive Brokers also offers the ability to trade fractional shares, except in RRSP and TFSA accounts.
This feature has been highly requested, as it allows for traders operating with small sums of money in their accounts to buy stock in companies with high individual share prices such as Amazon.
The investment platform offers both a mobile application and a desktop application, both of which have an initial learning curve to them.
However, once users get a grasp of the interface, there are a variety of useful features that can be used to conduct research to make better financial decisions.
Lastly, Interactive Brokers also offers interest up to 4.83% on idle cash balances sitting in your trading account.
Wealthsimple Trade
When looking for alternative trading platforms in Canada, Wealthsimple Trade offers an easy-to-use platform, low-cost fee structure, and a variety of service offerings to meet different needs.
Wealthsimple Trade offers a friendly interface and easy-to-navigate platform.
Account setup is extremely straightforward and can all be done through the mobile application.
Once you have an account, it is easy to search for stocks and make your first purchase.
While Wealthsimple did not initially offer a web-based platform, the feature has recently been added.
Both web and mobile offer a similar sleek and polished experience, making trading much more accessible to newer traders.
Wealthsimple Trade offers commission-free trading for most Canadian stocks and ETFs.
With a regular account, only Canadian dollars can be held, meaning that purchasing U.S. equities requires a 1.5% transaction fee.
However, the recent addition of their Plus subscription for $10 per month provides users with USD accounts or the ability to hold funds in USD.
Wealthsimple Trade offers fewer account options than other platforms.
Currently, only three types of accounts can be opened: RRSP, TFSA, and non-registered personal savings accounts.
While the selection is limited, many traders will prefer to trade in either an RRSP or TFSA due to the tax benefits associated with these accounts.
The lack of additional account options should not dissuade traders from choosing Wealthsimple Trade.
Wealthsimple Trade also offers fractional trading on a limited number of Canadian and US equities.
As previously mentioned, this feature has received lots of positive reviews, as newer traders in Canada have long looked for opportunities to purchase stocks in companies like Amazon or Tesla.
Questrade
Questrade has been around in the Canadian market for over 20 years.
During this time, the company has consistently been rated amongst the top investing platforms in the country by offering low-fee trading and a variety of services that cater to both amateur and experienced traders.
Just like Interactive Brokers, Questrade offers a few different account options depending on user needs.
Regular accounts have commissions ranging from $4.95 to $9.95 for most Canadian and U.S. stocks. The company also offers an Active Trader package which can bring commissions down to as low as $0.01 per share.
Aside from stocks, Questrade offers access to several other assets including ETFs, options, forex, CFDs, mutual funds, bonds, GICs, and commodities.
In terms of account types, Questrade offers a large range of both registered and non-registered accounts.
This variety opens up investing to those with different financial goals, from saving for education to retirement planning.
Money can be held in either USD or CAD, which can allow traders to buy and sell both Canadian and U.S. equities with ease while saving higher-frequency traders hundreds of dollars in transaction fees each year.
One feature not offered by Questrade is fractional share trading.
In this area, both Interactive Brokers and Wealthsimple Trade come out ahead.
Both the mobile application and desktop application are fairly straightforward and easy-to-use.
A variety of customization options are available, allowing traders to focus on what is important to them.
Is Beanstox Coming to Canada?
At present, Beanstox has limited ambitions to provide access to Canadians on their platform until there is a material shift in the regulatory and compliance landscape.
What is Beanstox?
Beanstox provides a customizable investing portfolio based on a range of user inputs while maximizing diversification and providing low-cost index funds.
Beanstox charges users a flat fee of $5/month regardless of the account size, thereby being substantially cheaper than other investing platforms which charge fees based on a percentage of assets under management.
Further, the platform looks to maximize tax savings using various tax harvesting methods.
Frequently Asked Questions
- Is Beanstox Investing available in Canada?
- How does Beanstox make money?
- How is Kevin O’Leary associated with Beanstox?
