If you want to open a brokerage account in Canada, you have to select a stock trading platform, complete your account details, submit your application, link your bank account, and then fund your trading account.
You can set up a brokerage account at a range of licensed brokerage firms — from pricier full-service stockbrokers to low-fee online discount brokers.
What is a brokerage account?
A brokerage account is an investment account used to buy and sell securities such as stocks, bonds, mutual funds and ETFs.
You can transfer money into and out of your account much like a bank account, but unlike banks, brokerage accounts give you access to the stock market and other investments.
You’ll also see brokerage accounts referred to as taxable accounts because investment income within a brokerage account is subject to capital gains taxes.
This is compared with retirement accounts (such as IRAs) that have a different set of tax and withdrawal rules and may be better for retirement savings and investing.
Steps to open a brokerage account in Canada
You can open an online stock trading account by following the steps below. Just be aware that these steps may vary based on which stock trading platform you sign up with.
Compare stock trading platforms
Compare different platforms to find the one that offers all of the features you want at a price you can afford.
Keep in mind that some platforms require you to pay account maintenance fees and commissions for every trade you execute. On the other hand, some other platforms are almost entirely free but may have fewer trading options.
Fill out account details
You’ll need to provide your full name and a valid form of government-issued photo ID to get started.
You may also need to supply personal details such as your email address, phone number, residential address and Social Insurance Number (SIN).
Submit your application
Your application to open a stock trading account will usually be processed within 1-2 business days.
Link your bank account and fund your trading account
You’ll need to supply details of the bank account which will be used to finance your trades and you may be required to deposit a minimum amount.
Some stock trading platforms will also require you to open a cash management account with a specific financial institution before you can start trading.
Start trading
Once your account is open and funded, you can start buying and selling. You can also open different account types, like registered and non-registered accounts, to trade within.