canadian newbie..

[Kid Bro Sweets]

hi just wondering which online trader for canadian resident i am thinking of starting small with about 500, thanks

 

[LOR]

Etrade & Ameritrade require $2000 to open an account.

 

[selkirk]

KBS not sure the min. required in Canada, however you could probably open an account with $500 or $1000, however there is no reason to...

the brokerage rates to buy stocks are high for most smaller accounts, and the ones that will offer you a cheap rate will charge you a maintenance fee, (etrade charges you below 10,000), ect.

if you are just starting there are a few options:

one build up your cash position, there are many places that offer you high yield and no charges to withdraw.

these places will give you 3.50%
Ing Canada
PC financial
HSBC Canada
there are about half a dozen more. HSBC Canada has an account called HSBC direct, through the interent. offer 4.75% for a short time on new money deposited, also no fees for withdrawal, and no min.
believe the regular rate is 3.60%

with PC financial you can use CIBC machines, and HSBC direct (HSBC machines, and bmo machines).


finally TD offers e funds, you can open them at a TD bank, however they send you everything through internet.

these are index funds and though not as good as etfs, still the fees are really low. and no commis, or load.

would probably start off with cdn. index, and they have a bond index....build them up slowly, monthly plan ect.

also they have int. and US.

would build up cash with one of the above account and then td e funds.

then when you have 5000 or more begin with TD Waterhouse, Etrade Canada, CIBC investors edge (has a trading package), there are some others that rate highly. those are the ones I use, and a full service brokerage.

thanks
selkirk

 

[Kid Bro Sweets]

thanks for all the great info as usual sellkirk!