eToro is not available in Canada.
eToro is a multi-asset investment platform based on a social network of investors.
Its aim is to create a community of investors that can connect, share ideas, and learn from each other.
Even though eToro isn’t available in Canada, there are other options that can fulfill any investor needs.
Alternative trading platforms that are comparable to eToro are listed below.
Alternatives to eToro for Canadians
Interactive Brokers
Pros
- Ability to purchase fractional shares.
- Low commissions, especially for high-frequency traders.
Cons
- The platform is not as user-friendly as other options.
- The pricing structure is complex, and understanding commissions may be difficult at first.
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 advanced features such as options trading.
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 alternative 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 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.
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, 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.
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 recently began offering 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.
Will eToro be coming to Canada?
eToro previously operated in Canada but exited the market due to regulatory issues.
Unfortunately, there is no plan for eToro to re-enter the Canadian market at this time.
What is eToro?
eToro is a social network-based investment platform.
Founded in Israel, eToro’s mission is to build “the world’s largest social trading network to empower people to trade and invest in stocks, crypto, and global markets, copy top traders and get copied.”
On the theme of transparency, eToro encourages its users to learn from each other to make smarter investment choices.
Starting in 2008, eToro has grown its user base to over 25 million clients as per their website.
Some of this can be attributed to their trader-centric approach to investments, as can be seen through the offering of virtual demo accounts to practice trading.
This allows a user to simulate investing virtual capital and practice their investing skills until they are confident enough to use real money.
With a rapidly growing user base and expanding catalogue of online resources, eToro is a platform that has attracted both new and experienced investors alike.
eToro’s platform allows users to set up automatic copying of trades of successful investors, making it the world’s leading network for social trading.
Frequently Asked Questions
- Why is eToro not allowed in Canada?
- Is eToro legal?
