The quick checklist
Must-Haves
$0 trading commissions & no inactivity fees
Avoid $4.95+ per trade or monthly maintenance fees
Fractional shares + dividend reinvestment (DRIP)
Buy partial shares of expensive stocks/ETFs automatically
Account types: tax-advantaged + taxable
IRA/TFSA/RRSP for tax benefits, regular accounts for flexibility
Automation: recurring buys & transfers
Set up dollar-cost averaging without manual work
Order types: market, limit, stop
Basic order types for better execution
Mobile + desktop reliability, 2FA security
Apps that don't crash during market volatility
Customer support and easy transfers out
Phone support, ACATS transfers, no exit fees
Regulatory protection
CIPF/CDIC (Canada) or SIPC/FDIC (US) coverage
Nice-to-haves
Advanced Features
- • Auto-rebalancing portfolios
- • Tax-loss harvesting
- • Research tools & analysis
- • Extended hours trading
Convenience
- • High cash sweep APY
- • Easy tax form exports
- • API access for tracking
- • Educational content
Popular brokerage comparison
| Brokerage | Commissions | Fractional | Min Deposit | Best For |
|---|---|---|---|---|
| Fidelity | $0 | Yes | $0 | Beginners, research |
| Schwab | $0 | Yes | $0 | Full service, checking |
| Vanguard | $0 | Limited | $0 | Index investors |
| Questrade (CA) | Free ETFs | No | $1,000 | ETF investors |
| Wealthsimple (CA) | $0 CAD | Yes | $0 | Simple, mobile-first |
Red flags to avoid
Avoid These Features
- ❌ High trading commissions - $4.95+ per trade adds up fast
- ❌ Monthly maintenance fees - $25/month = $300/year in fees
- ❌ High minimum deposits - $2,500+ prevents getting started
- ❌ Limited investment options - No ETFs, only mutual funds
- ❌ Poor customer reviews - Apps that crash, no phone support
- ❌ Complex fee structures - Hidden charges, inactivity penalties
- ❌ No fractional shares - Limits diversification with small amounts
Account types explained
Tax-Advantaged Accounts
Roth IRA / TFSA
Tax-free growth, withdraw anytime (contributions)
Traditional IRA / RRSP
Tax deduction now, pay taxes when withdrawing
401(k) / Group RRSP
Employer match, higher contribution limits
Taxable Accounts
Individual Brokerage
No contribution limits, full flexibility
Joint Account
Shared ownership with spouse/partner
Trust Account
For beneficiaries, estate planning
Security features to verify
Security Checklist
- ✓ Two-factor authentication (2FA) required
- ✓ SIPC insurance up to $500k (US) or CIPF coverage (Canada)
- ✓ Bank-level encryption (256-bit SSL)
- ✓ Account alerts for logins, trades, transfers
- ✓ Ability to set trading restrictions/limits
- ✓ Clean regulatory record (check FINRA BrokerCheck)
Frequently Asked Questions
Do I need multiple brokerages?
Not at the start—simplicity wins. Choose one good platform and focus on investing consistently. You can always transfer later.
Are fractional shares important?
Yes—they unlock diversification with small amounts. Without them, you'd need $400+ to buy one share of some ETFs.
What if I pick the wrong broker?
You can transfer your account to a new broker using ACATS transfers. Most good brokers will even pay the transfer fee.
Should I use a robo-advisor instead?
Robo-advisors are good for beginners who want full automation, but they charge 0.25-0.50% annually. DIY ETF investing is cheaper.