For investors that want to buy the best Canadian stocks without doing much research, ETFs are a great way to get started. ETFs, also known as exchange-traded funds, are a collection of stocks or other investments designed to track an index or sector. Read on to learn more about how to buy the best Canadian ETFs in 2024.
If you’re looking for some best Canadian ETF stocks to buy, you’ve come to the right place.
In this article, we’ll take a look at some of the best options out there. We’ll also give you a little bit of information about the best Canadian ETFs so that you can make an informed decision about which one is right for you.
So without further ado, let’s get started!
How To Buy The Best Canadian ETF Stocks in 2024
The top investing apps make it easy to buy ETF stocks in Canada and earn a passive income.
In four easy steps, Questrade members can receive a $50 trade commission rebate and buy the best Canadian ETF stocks in Canada for free.
At Questrade, all ETF purchases are free and new users that sign up using the link below will receive a $50 trade commission rebate to invest in the best Canadian ETFs.
Check out our step-by-step guide on how to buy the best Canadian ETF stocks right now for free.
- Click here to sign up for a Questrade account
- Add funds to your Questrade account
- Receive a $50 trade commission rebate
- Invest in the best ETF stocks for free
Ranking The Best Stock Trading Apps for Buying ETFs in Canada
- Questrade — $50 in free trades for new non-registered accounts
- Wealthsimple — $10 in free cash added to your non-registered account
- Interactive Brokers – Earn up to 1.83% USD on idle cash balances
- CIBC Investor’s Edge – Free trades for investors aged 18-24
- Desjardians Online Brokerage – Free investment training and analytics tools
Top Investing Apps in Canada Reviewed
When it comes to Investing apps in Canada, there are a lot of options out there. But which one is right for you?
It depends on your needs and preferences. Some people want an app that is quick and easy to use, while others are willing to trade speed for a lower fee.
Our expert reviews can help you find the right Canadian stock trading apps, depending on your priorities.
So if you’re looking for the top Stock trading apps in Canada, check out our reviews.
1. Questrade — $50 in free trades for new non-registered accounts
If you’re looking for low-cost Canadian stock trading apps, Questrade is worth considering.
They offer $50 in free trades for new non-registered accounts, and over 250,000 new accounts are opened annually. The company’s mission is to give Canadians better, simpler, and more affordable ways to become financially successful and secure.
In my experience, Questrade has been incredibly easy to use and very user-friendly. Their customer service has also been excellent – they’re always quick to respond to any questions or concerns I have.
We highly recommend Questrade if looking for great Canadian stock trading apps.
Questrade has an app, QuestMobile, which offers a lot for new accounts. For starters, it allows you to trade stocks and ETFs with ease. You can also track your favorite stocks with watchlists and get mobile alerts, so you never miss an opportunity.
Plus, if you’re a new investor, Questrade’s app can help you get started. With a pre-built Questwealth Portfolio managed by experts, you can take the work out of investing and let the pros handle it for you.
Millions of Canadians are investing in Questrade because it offers some of the lowest fees in the industry.
For example, there are no account minimums and no annual fees. You can also choose from a variety of commission-free ETFs.
In addition, Questrade offers a mobile app that makes it easy to track your investment portfolio on the go. Plus, you can set up automatic deposits to help grow your account balance over time.
Questrade is an excellent choice for Canadians who want to save on fees and grow their investment portfolios.
2. Wealthsimple — $10 in free cash added to your non-registered account
Wealthsimple is a Canadian-based company that offers online investment management services.
The company has over 2.5 million customers. Wealthsimple not only offers a $10 sign-up bonus for new accounts but they use state-of-the-art encryption to keep your data and money safe.
They also have no account minimums or paperwork to fill out, making them an excellent choice for newcomers who don’t want to deal with it. In addition to traditional investments, Wealthsimple allows you to buy and sell over 50 cryptocurrencies.
Overall, Wealthsimple is a great choice for those looking for a simple and convenient way to invest their money.
Wealthsimple has an app and there are a few things it offers for new accounts.
When you sign up for a new account, you get $10 in free cash added to your non-registered account. You can use this money to invest in various investments, including stocks, bonds, and ETFs. The app also offers a simple way to track investment performance and stay on top of your finances.
There are many Canadian stock trading apps, but Wealthsimple is one of the best. With no account minimums or paperwork to fill out, it’s easy to start.
3. Interactive Brokers – Earn up to 1.83% USD on idle cash balances
Interactive Brokers is among the best stock trading apps in Canada.
An online investing platform, Interactive Brokers allows users to trade various financial instruments, including stocks, bonds, and options. The platform is designed for experienced investors looking for a sophisticated and customizable trading experience.
Unlike other basic stock trading apps, Interactive Brokers offers extensive market research, analytical tools, advanced order types, and execution capabilities. The platform also provides access to global markets, perfect for investors looking to diversify their portfolios.
Overall, Interactive Brokers is a great choice for experienced investors looking for powerful and versatile Canadian stock trading apps.
Like some of the best stock trading platforms, Interactive Brokers has a mobile app. The app is available for iOS and Android devices and offers a free demo account, so you can practice trading without risking real money. The app also provides access to real-time market data, charts, and news, and you can place trades using the app.
Stock trading apps in Canada are plentiful, but Interactive Brokers is one of the best. The app is suitable for experienced investors looking for a sophisticated and customizable trading experience.
4. CIBC Investor’s Edge – Free trades for investors aged 18-24
The CIBC Investor’s Edge platform is a great option for young investors.
First, it’s free to trade for investors under 25. This great perk can save you a lot of money if you’re just starting in the investing world.
The platform is also user-friendly and easy to navigate. Even if you’re new to investing, you’ll be able to find your way around the Investor’s Edge platform without any trouble. Another big plus is that CIBC offers a wide range of investment options, so you’ll be able to find something that fits your investment goals.
Overall, the CIBC Investor’s Edge platform is a great choice for young investors looking for affordable and user-friendly Investing apps in Canada.
CIBC Investor’s Edge has an app available for iOS and Android devices. The app allows you to view real-time market data and place trades. You can also access your account information and view your investment portfolio.
Opening an investment account with CIBC Investor’s Edge could help you reach your financial goals faster. You can start with as little as $100, and there are no account minimums or fees.
5. Desjardians Online Brokerage – Free investment training and analytics tools
Desjardins Online Brokerage is a top-notch investing platform that offers users a wide range of features and benefits.
For starters, the platform is extremely user-friendly and easy to navigate. Even if you’re not a tech-savvy person, you’ll be able to find your way around the website easily. In addition, the platform offers a wide variety of investment options, which is great for people who want to diversify their portfolios. The fees are also very reasonable, and the customer service is excellent.
Overall, I highly recommend Desjardins Online Brokerage to anyone looking for a great online investing solution.
Desjardins Online Brokerage does have an app, Disnat.
The app is available for both iOS and Android devices, and it offers a variety of features for new accounts. The app provides free investment training, and analytics tools allow you to open and fund your account directly from your mobile device. You can also use the app to view real-time quotes and market data, place trades, and track your account balances and positions.
Plus, the app includes all of the same features as the desktop version of the Desjardins Online Brokerage platform, so you can access everything you need from wherever you are.
Desjardins Online Brokerage is a great choice for Canadian investors because it offers a wide range of features and benefits, including a user-friendly interface, a wide variety of investment options, reasonable fees, and excellent customer service.
Analyzing The Best Canadian ETFs To Buy Now
Canadians should invest in ETF stocks in 2024 because these stocks offer a variety of benefits that can be extremely helpful for Canadian investors.
For starters, ETFs are a great way to achieve diversification, which is important for minimizing risk while investing.
ETFs tend to have lower fees than other types of investments, making them a more affordable option for Canadian investors.
What Is An ETF Stock?
An ETF, or Exchange Traded Fund, is a type of investment fund that holds a basket of assets, such as stocks, bonds, or commodities. ETFs trade on stock exchanges and can be bought and sold like any other stock. ETFs offer investors a way to diversify their portfolio with a single investment, and they can be used to track an index or sector. In Canada, there are many different ETFs available for investors, including those that track the S&P/TSX Composite Index, the Canadian dollar, and government bonds.
If you’re interested in learning more about ETFs and how to invest in them, click here.
ETF Meaning
An Exchange Traded Fund (ETF) is a collective investment vehicle that pools money from many investors and invests it in stocks, bonds, or other securities. ETFs trade on exchanges like stocks, and their prices change throughout the day as they are bought and sold.
An ETF can be used to track the performance of a particular index, such as the S&P 500 or the NASDAQ 100. Or an ETF can be used to track a particular sector, such as technology or health care.
ETFs are created when an investor buys shares in the fund. The shares represent a proportional interest in the assets of the fund. When an investor sells shares of an ETF, the shares are redeemed back into cash, which is then distributed to the shareholders.
ETF vs Mutual Fund
ETFs and mutual funds are both types of investment funds.
An ETF, or exchange-traded fund, is a type of investment fund that holds assets such as stocks, commodities, or bonds and trades on a securities exchange.
Mutual funds are also investment funds that hold assets such as stocks, commodities, or bonds, but they are not traded on a securities exchange.
Instead, mutual fund investors buy and sell their shares directly from the mutual fund company.
ETF vs Index Fund
ETFs and index funds are both types of mutual funds, which are investment vehicles that allow a group of investors to pool their money together and invest in a variety of assets.
The main difference between ETFs and index funds is that ETFs are traded on an exchange like stocks, while index funds are not.
This means that ETF investors can buy and sell shares throughout the day, just like they can with individual stocks. Index fund investors, on the other hand, can only buy or sell shares once per day when the market closes.
How Do ETFs Work in Canada?
There are several different ETFs available for buying in Canada.
Some of the most popular ETFs track the performance of the S&P/TSX Composite Index, which is made up of the largest stocks on the Toronto Stock Exchange.
Other popular ETFs track the Canadian dollar or government bonds.
ETFs hold a basket of assets, such as stocks, bonds, or commodities. In Canada, ETFs trade on a stock exchange and can be bought and sold throughout the day.
When choosing an ETF to invest in, it is important to look at the expense ratio, which is the annual fee that the fund charges. The lower the expense ratio, the better.
You should also look at the performance of the fund over time to get an idea of how well it has performed in the past.
Also, make sure to diversify your portfolio by investing in multiple ETFs. This will help to mitigate risk.
To learn more about ETFs and how to choose the best ones to invest in, click here.
Track A Specific Market
An ETF can track a particular index, such as the S&P 500, or a sector like healthcare or tech.
When an investor buys shares of an ETF, they are buying a proportional interest in the assets held by the fund. So, if an ETF tracks the S&P 500 and an investor buys $100 worth of shares, the investor would own $100 worth of the S&P 500.
ETFs are traded on stock exchanges, which means their prices change throughout the day as they are bought and sold.
Investors can use ETFs to get exposure to a specific market without having to buy individual stocks. This can be helpful if an investor wants to track the performance of a particular market, but doesn’t want to put all of their eggs in one basket.
ETF Weighting
The weighting of an ETF refers to how the assets in the fund are distributed.
For example, if an ETF tracks the S&P 500, each stock in the index will have a weighting based on its market capitalization. The larger the company, the higher the weighting.
Some ETFs are weighted equally, which means each asset in the fund has the same weight. Others are weighted by market capitalization, which means the larger companies have a higher weighting.
There are several different ways to weigh an ETF, and each has its pros and cons. Equal weighting can help to mitigate risk, while weighting by market capitalization can help to maximize returns.
When choosing the best Canadian ETFs, it is important to consider the weighting of the fund. This will help you to understand how the fund is distributed and what kind of risk you are taking on.
Allocation of Funds
The allocation of funds in an ETF can vary depending on the type of fund. For example, a bond ETF might have a different allocation than a stock ETF.
The allocation of funds will also change over time as the underlying assets in the fund are bought and sold.
It is important to consider the allocation of an ETF when choosing one to invest in. This will help you to understand how the fund is distributed and what kind of risk you are taking on.
Stock Price of an ETF
The stock price of an ETF is based on the underlying assets in the fund. For example, if an ETF tracks the S&P 500, the stock price of the ETF will fluctuate with the stock prices of the companies in the index.
The stock price of an ETF can also be affected by supply and demand. If more people are buying the ETF than sell it, the price will go up. If more people are selling the ETF than buying it, the price will go down.
You can buy and sell ETFs just like you would any other stock. You will need to have a brokerage account to do so.
When considering an ETF, it is important to look at the stock price history to get an idea of how volatile the fund is. This will help you to decide if the ETF is a good fit for your investment goals.
Dividends
Dividends are payments made by a company to its shareholders. They are typically paid out quarterly.
Some ETFs pay dividends, while others do not. If you are interested in receiving dividends from your investment, you will need to choose an ETF that pays them.
Dividends can be a good way to generate income from your investment. However, they are not guaranteed and can fluctuate based on the underlying assets in the fund.
When considering an ETF, be sure to look at the dividend history to get an idea of how reliable the payments are.
What Are The Advantages of ETF Investing in Canada?
ETFs are a popular investment choice in Canada because they offer several advantages over other types of investments. Some of the benefits of ETF investing include:
Passive Investing
ETFs offer a passive investment strategy, which means that investors do not need to actively manage their investments. This can help to save time and money.
Diversification
ETFs provide exposure to a wide range of asset classes, which can help to diversify a portfolio. This can reduce risk and improve returns over the long term.
Access to Unconventional Markets
ETFs can offer access to markets that may be difficult or impossible to invest in directly. This includes foreign markets, commodities, and other alternative investments.
Bonds
ETFs can also be used to invest in bonds, which can provide stability and income. Bond ETFs offer a way to invest in a diversified portfolio of bonds, which can help to reduce risk and improve returns over the long term.
Commodities
While commodities can be volatile, ETFs offer a way to invest in these assets without having to take on the full risk. This can be a valuable tool for investors who want to add commodity exposure to their portfolios without taking on too much risk.
Crypto
Some ETFs offer exposure to cryptocurrency, which is a new and emerging asset class. This can provide investors with an opportunity to get in on the ground floor of a potentially profitable investment.
Emerging Markets
Emerging markets can be volatile, but they also offer high potential returns. ETFs provide a way to get exposure to these markets without having to invest directly.
Specific Stock Categories
ETFs can offer exposure to specific stock categories, such as small-cap or value stocks. This can be beneficial for investors who want to focus their portfolios on a particular type of investment.
Low Fees
ETFs often have lower fees than other types of investments, such as mutual funds. This can help to improve returns and make ETFs more affordable for investors.
High Liquidity
ETFs are highly liquid, which means that they can be easily bought and sold. This can be helpful if an investor needs to access cash quickly or wants to take advantage of market opportunities.
Suitable for All Investors
ETFs can be a good choice for investors of all types, from beginners to experts. They offer a simple and efficient way to invest in a wide range of assets without having to actively manage their investments.
Risks of ETF Trading
There are several risks to consider before investing in ETFs. Some of the risks associated with ETFs include:
Market Risk
Like all investments, ETFs are subject to market risk. This means that the value of an ETF can go up or down, and investors could lose money.
Oversaturated Market
The ETF market has become increasingly saturated in recent years. This means that there are more choices for investors, but it also makes it harder to find a good ETF.
Intransigent
ETFs can be difficult to sell, especially in a down market. This is because they are often traded on exchanges, which can make it hard to find a buyer.
Lack of Diversification
While ETFs offer diversification, they may not always be as diversified as investors expect. This is because some ETFs are heavily weighted towards a few stocks or sectors.
Trading Fees
Investors should be aware of the fees associated with trading ETFs. These fees can eat into returns and make ETFs more expensive than other types of investments.
ETF Stock Trading Strategies
There are many different ETF stock trading strategies that investors can use to grow their wealth.
Some of the most popular ETF trading strategies include Dollar Cost Averaging, Dividend Reinvestments, Diversification, buy and hold, and value investing.
Each of these strategies has its advantages and disadvantages, so it’s important to carefully consider which one is right for you.
If you’re not sure where to start, we recommend doing some research and then consulting with a financial advisor.
Dollar Cost Averaging
Many people believe that the key to success in investing is timing the market – buying when prices are low and selling when they are high. However, this approach is often difficult to execute and can lead to missed opportunities. A more reliable strategy is known as dollar cost averaging. With this approach, investors purchase a fixed dollar amount of a security at regular intervals. By doing so, they smooth out the effects of short-term price fluctuations and avoid the temptation of trying to time the market. Over time, this disciplined approach can help investors achieve their financial goals.
Dividend Reinvestments
Dividend reinvestment is the act of reinvesting dividends paid out by a company into additional shares or fractional shares of stock. The dividend reinvestment plan (DRIP) is an investing strategy that takes advantage of the compound interest principle to increase one’s ownership stake in a company over time. By reinvesting dividends, investors can compound their gains and ultimately achieve greater returns than if they simply cashed out their dividends and reinvested the proceeds elsewhere. DRIPs are often offered by companies as a way to encourage long-term shareholder loyalty, and they can be an excellent way for individual investors to build up a sizable position in a stock without having to pay brokerage commissions.
Diversification
Diversification is a risk management technique that involves investing in a variety of assets. By diversifying one’s portfolio, an investor can minimize the effects of volatility and reduce the overall risk of their investment portfolio. When done correctly, diversification can provide investors with a way to protect their portfolio from market downturns while still participating in the upside potential of the market.
Buy and Hold
The buy-and-hold strategy is a long-term investment approach that involves buying stocks and holding onto them for extended periods, regardless of short-term market fluctuations. The goal of the buy-and-hold strategy is to ride out the ups and downs of the stock market over time so that you can eventually sell your shares at a profit. This strategy is often used by investors who have a long-term time horizon and are not concerned with short-term fluctuations in the market.
Value Investing
Value investing is a strategy that focuses on finding stocks that are trading below their intrinsic value. Intrinsic value is the true worth of a stock, which is determined by factors such as the company’s financial strength, competitive advantages, and growth potential. By buying stocks when they are undervalued, investors can generate profits when the market eventually recognizes the stock’s true worth and the bidding price rises.
Several different methods can be used to find undervalued stocks, but one of the most popular is to look for companies with high levels of cash flow and low price-to-earnings ratios. This strategy can be risky, however, as it requires patience and a willingness to wait for the market to catch up to the stock’s true value. For this reason, value investing is often best suited for long-term investors with higher risk tolerance.
How to Buy ETFs in Canada with No Commission Fees?
Buying the best Canadian ETF stocks in Canada is quick and easy. You can buy them through a discount broker that offers commission-free trading. The process is simple, and you can get started with just a few clicks.
So check out the step-by-guide below and start investing today.
Step 1: Sign up for a Questrade account:
The first step is to sign up for a Questrade account.
You can do this by clicking here.
To get started, click ‘Open An Account’ in the top right-hand corner of your screen.
Step 2: Choose which type of account you want to open:
The next step is to choose which type of account you want to open.
Questrade offers several different types of accounts, including Tax-Free Savings Accounts (TFSA), Registered Retirement Savings Plans (RRSP), and non-registered accounts.
For this guide, we will focus on the TFSA.
Step 3: Enter your personal information:
The next step is to enter your personal information.
Questrade will require some basic information about you, including your name, address, date of birth, and Social Insurance Number (SIN).
Step 4: Fund your account:
The next step is to fund your account.
You can do this by transferring money from your bank account or with Interac e-transfer.
Once the money is in your Questrade account, you can begin investing.
Step 5: Start buying ETFs:
The final step is to start buying ETFs.
To do this, simply login to your Questrade account and click on the “Trade” tab.
From there, you can search for the ETFs that you want to buy and enter the amount that you want to invest. Once you have confirmed your order, your ETFs will be automatically purchased and held in your account.
That’s it! You’re now ready to start buying ETFs in Canada with no commission.