Question

What is the reason behind the higher trading fees in Canadian brokerages compared to American ones?

Answer 1

Lack of competition; there are only a handful of discount brokers in Canada, most of which are owned by the major banks.. . The one I use now is Questrade. They charge $9.95 a trade. The only problem with them is that their site is very no-frills.

Answer 2

everything like that costs more in Canada and the people still keep using their services. Canadian companies rip the people off big time

Answer 3

Because they can get away with it! - Spread the word and let people know they're being ripped off - Maybe a smaller, aggressive firm will use the overcharging to gain marketshare.

Answer 4

To make a bigger profit, of course!

Answer 5

It all comes down to Purchasing Power parity.. . There are a lot less investors in Canada than in the U.S. . . The reason being: our population is 10% of the u.s.