Best Brokerage in Canada for Beginners: Wealthsimple vs Questrade vs Your Bank
The best brokerage for most Canadian beginners is Wealthsimple, and the second-best answer is Questrade. Your bank is probably the worst option of the three.
The Short Answer
If you want to buy XEQT and stop overthinking it, you need a discount brokerage. Here is the direct answer before we get into any details.
For most Canadian beginners, open a Wealthsimple account. It charges $0 to buy and sell ETFs, takes about ten minutes to set up on your phone, and lets you open a TFSA, RRSP, or FHSA. Once you are in, buy XEQT. Done. If your portfolio grows past $100,000 and you want to save on currency conversion costs, consider switching to Questrade. Do not invest through your bank branch.
The brokerage you choose does not change what you invest in. It changes how much you pay to invest and how easy the experience is. For a beginner buying a single all-in-one ETF like XEQT, the only things that matter are: zero or near-zero trading commissions, account types that include TFSA and RRSP, a clean interface that does not confuse you, and no account minimums. Wealthsimple checks every box.
That said, this is not a blind endorsement. We will walk through all three realistic options, show you the scorecard, explain where each one wins and loses, and give you the step-by-step to open your account. The goal is to get you invested. Fast.
Brokerage Scorecard: How the Options Stack Up
Before diving deep, here is the comparison you actually need. We scored each option across the criteria that matter most to a beginner buying index ETFs in Canada.
| Criteria | Wealthsimple | Questrade | Bank Branch |
|---|---|---|---|
| ETF Buy Commission | $0 | $0 | $0 to $9.99 (mutual funds, not ETFs) |
| ETF Sell Commission | $0 | $4.95 to $9.95 | N/A (no real ETF access) |
| Account Minimum | $1 | $1,000 (RRSP), $0 (TFSA) | Often $0 but limited products |
| TFSA Available | Yes | Yes | Yes (but sells mutual funds) |
| RRSP Available | Yes | Yes | Yes (but sells mutual funds) |
| FHSA Available | Yes | Yes | Yes (but sells mutual funds) |
| Mobile App Quality | Excellent | Good | Varies, usually clunky |
| Can Buy XEQT | Yes | Yes | No |
| Typical Product MER | 0.20% (XEQT) | 0.20% (XEQT) | 1.5% to 2.5% (mutual funds) |
| Fractional Shares | Yes | No | N/A |
| USD Accounts (RRSP) | Yes (with 1.5% FX) | Yes (Norbert's Gambit possible) | No |
| Beginner Friendliness | 9/10 | 7/10 | 5/10 (but for wrong products) |
| Affiliate Bonus | $25 free with referral | None currently | None |
The scorecard tells the story clearly. Wealthsimple wins on simplicity and zero sell commissions. Questrade is competitive but has a small fee when you sell. Your bank branch does not even sell the products you want. If you want XEQT, your bank branch is simply not the right place.
Why Your Bank Is the Wrong Place to Invest
This is not about your bank being evil. It is about their incentive structure pointing in a completely different direction than your interests.
When you walk into a bank branch and ask about investing, the advisor there sells you what the bank manufactures: mutual funds. Canada has some of the highest mutual fund fees in the developed world. The average Canadian equity mutual fund carries a management expense ratio (MER) somewhere between 1.5% and 2.5% per year. On a $50,000 portfolio, 2% MER means $1,000 per year in fees, every year, forever, whether the market goes up or down.
Compare that to XEQT at 0.20% MER. On that same $50,000, you pay $100 per year. The difference is $900 annually. Over 25 years, assuming 7% average returns, that fee gap compounds into tens of thousands of dollars. This is not a rounding error. It is the difference between a comfortable retirement and a stressful one.
A bank mutual fund with a 2% MER costs you 10 times more than XEQT every single year. On a $100,000 portfolio that is $2,000 per year vs $200 per year. The bank advisor does not mention this because their compensation depends on you not knowing.
Bank brokerages (like RBC Direct Investing, TD Direct Investing, or BMO InvestorLine) are a different story from the branch. These are legitimate discount brokerages where you can buy XEQT directly. However, most charge $6.95 to $9.95 per trade, and some require minimum account balances. They work, but for a beginner starting from scratch, Wealthsimple is faster to set up and cheaper to use.
Wealthsimple: The Best Starting Point for Most Beginners
Wealthsimple built its product for exactly the kind of investor this site is for: someone who wants simple, low-cost investing without the noise.
Wealthsimple Trade (now just called Wealthsimple) launched in Canada in 2014 and has grown into the country’s largest self-directed investing platform by account count. The reason is simple: zero commissions on Canadian and US stocks and ETFs, a clean mobile-first interface, and no account minimums. You can open a TFSA with $1 and buy a fraction of XEQT the same afternoon.
For a beginner buying XEQT and holding it forever, Wealthsimple is nearly frictionless. You deposit money, search XEQT, tap buy, confirm. That is the entire process. There is no complex order type to choose, no confusing interface, no minimum order size. Fractional shares mean you invest every dollar you have rather than leaving cash sitting idle because you cannot afford a full unit.
One more thing worth saying directly: Wealthsimple also offers a robo-advisor product called Wealthsimple Invest. This is different from Wealthsimple Trade, which is the self-directed platform we are talking about. The robo-advisor has higher fees. Use Wealthsimple Trade, search for XEQT yourself, and skip the robo product.
Questrade: The Runner-Up Worth Knowing About
Questrade is Canada’s oldest and largest independent discount brokerage, and it is a genuinely solid choice, especially once your portfolio grows.
Questrade has been around since 1999 and has earned a strong reputation among Canadian DIY investors. ETF purchases are free. ETF sales cost $4.95 to $9.95, which is a minor downside for a buy-and-hold investor who rarely sells. The platform is more powerful than Wealthsimple and has better tools for investors who eventually want to look at more data.
Questrade also supports Norbert’s Gambit, a currency conversion technique that lets you convert CAD to USD at near-zero cost. This matters when your portfolio is large enough that currency conversion fees become significant. If you are investing $200,000 or more and holding US-listed ETFs, Questrade can save you meaningful money on FX.
Questrade is excellent. If you are already comfortable with online financial tools and your portfolio is large enough that $4.95 sell commissions are a tiny percentage, Questrade is a great home for your XEQT. But if you are starting from zero, Wealthsimple gets you invested faster with less friction.
How to Open Your First Investment Account
Opening a Wealthsimple account takes about ten minutes. Here is exactly what to expect so there are no surprises.
A common question is whether to open a TFSA or RRSP first. For most beginners, the TFSA wins. Contributions are not deductible, but all growth and withdrawals are tax-free, and there are no rules about when you can take money out. If you want the full breakdown, check out the TFSA guide linked below.
Which Brokerage Should You Actually Choose
You have read the scorecard and the details. Here is the direct recommendation without any hedging.
If you are a Canadian beginner who wants to buy XEQT and build wealth without complexity, open a Wealthsimple account today. The $0 commissions, fractional shares, clean app, and fast setup make it the easiest on-ramp to real investing in Canada. Use the referral link to get your $25 bonus, open a TFSA, transfer money, buy XEQT, and set up automatic deposits. That is the entire strategy.
If your portfolio is already above $100,000 and you want to optimize for currency conversion on US holdings, take a look at Questrade. It is a more powerful platform and the free ETF buy commissions keep costs low. Just know that you pay $4.95 to $9.95 each time you sell, which is essentially nothing if you are holding XEQT long-term and only rebalancing occasionally.
If you already have a bank brokerage account like RBC Direct Investing, TD Direct Investing, or BMO InvestorLine, and you are comfortable with it, you do not need to switch. You can buy XEQT at any of those platforms. The per-trade commissions are higher but manageable if you invest in larger lump sums rather than small frequent purchases. The real villain is not the bank brokerage. It is the bank branch mutual fund, which you should avoid at all costs.
Wealthsimple for beginners. Questrade for large portfolios optimizing FX. Bank brokerages are fine if you are already there. Bank branch mutual funds: never.
The choice of brokerage is genuinely less important than the choice to actually start. A year from now, the investor who opened Wealthsimple last Tuesday and bought XEQT will be miles ahead of the person who spent six months comparing platforms. Pick one of the two good options, get your money invested, and let compounding do the rest. The best brokerage is the one you actually use.
Ready to Open Your Account and Get $25 Free?
Wealthsimple is the fastest way for a Canadian beginner to go from zero to invested. Open your TFSA or RRSP in about ten minutes, buy XEQT, and start building real wealth. Use this referral link and you get $25 deposited into your account once you fund it. No catch. Just start.
Open Wealthsimple → Get $25 FreeThis article is for general informational purposes only and does not constitute personalized financial or investment advice. XEQT is a product of BlackRock/iShares. Not financial advice. This site maintains an affiliate relationship with Wealthsimple.