Do you live in Canada and need a stock broker? You may be aware that trading stock through Canadian banks can be expensive, and trade execution is not always the best.  There is always the option of trading through your bank, although this too will have its drawbacks.

As with all stock trading, your choice of brokerages is crucial, and can greatly affect your portfolios overall performance.

Fortunately, there are a few Online Canadian Stock Brokers that allow you to trade stocks  more easily and cost effectively than your bank.

Whether are you looking to trade Canadian Penny Stocks or American Blue Chip stocks there is a Canadian stock broker here for you.

My number 1 choice of Canadian stock brokers is:

Questrade   This is a discount Canadian stock broker, which means it just offers a basic trading account without any extras. In light of this fact, they are able to offer a very cost effective trading service.

Trades costs 1 cent per share with a $4.95 minimum and a $9.95 maximum. The good news is that even if you trade Canadian Penny Stocks, youll never paid more than $9.95.

Questrade is a Canadian owned and operated broker. They were founded in 1999.

They also offer Forex trading as well as the opportunity to invest in Gold Bullion.  If you are looking for a low-cost, no-frills Canadian stock broker, Questtrade may be right for you.

My 2nd choice of Canadian stock brokers is:

Optionsxpress     As their name suggests, optionsxpress offer options trading for investors. This was the only instrument they offered when they started back in 2000. Today, however,  they offer a very comprehensive range of instruments including stocks, futures, options, mutual funds and much more.

It is also worth mentioning that Optionsxpress has won the Barrons award for best online broker for the last five years.

The only downside is if you are looking for a Canadian penny stock broker, optionsxpress is not for you. They charge $9.95 per trade for normal stocks, but for penny stocks they charge $14.95 or 5% of your total order, whichever is highest.  This can quickly eat away at your returns, as trading penny stocks requires making frequent trades, making Optionsxpress less suitable for these types of stocks.

My 3rd choice in Canadian stock brokers is:

Interactive Brokers This is a large Canadian Stock Brokerage that was established in late 2000. They are not Canadian owned or operated, but they do have offices worldwide, including one in Quebec.

They are very much a multi-instrument broker offering forex, options, futures, mutual funds and much more.

There is no one-size-fits-all when it comes to Canadian stock brokers, so make sure you look carefully at what each brokerage has to offer prior to committing any capital.

While these are my top three Canadian stock brokers, you will undoubtedly have your own unique set of criteria and that should be taken into consideration at every stage of the stock broker selection process.

General advice when choosing a broker

Keep in mind your goals for investing, including what types of stocks you would like to purchase, as not all Canadian stock brokers are suitable for all types of investments.

An investment strategy that utilizes penny stocks or options, for example, will have vastly different brokerage requirements that one that implements a buy-and-hold strategy.

You should also be mindful of your available capital for investing, researching each brokerages account requirements including account minimums, inactivity fees and commissions.

It is important to shop around for brokers as their fees and commissions can vary widely from brokerage to brokerage, and the types of investment products and service will vary considerably as well.