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The best digital investing tools for young investors

Find a tool that make investing simple and inexpensive

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By Amy Legate-Wolfe Feb. 17, 2023

Many Canadians may have budgeting and savings goals, but need help reaching them. Aside from finding a new job or working multiple ones, it can sometimes seem tough to make the dream a reality. Investing offers one way to generate more income, but the market can be unpredictable and lead to minimal gains or big losses.

For all the success stories you may see on the news or hear from your friends, there are crashes and risks to think about. It can be hard to watch, let alone put your hard earned money into.

However, investing knowledge is still highly coveted. One of Canadians’ biggest financial regrets is not investing “more, earlier or wiser” according to FP Canada’s 2021 Financial Stress Index.

For those looking to start investing, while also playing it (relatively) safe, digital investing tools can be an easy way to dip your toe in the waters.

Whether it’s creating long-term goals, or beefing up your portfolio, these tools provide young investors with options tailored to their needs. So let’s look at the best of the best that could help you now, and for years to come.

Moka

Price: $3.99 to $15 per month
Account types: TFSA, RRSP, non-registered accounts

A perhaps less known investing tool is Moka, which uses artificial intelligence to power its saving and investing program. Formerly Mylo, the company allows users to put in “spare change” in order to save toward an emergency fund, or eventual financial freedom. The goal is to set it and forget it, with Moka doing the leg work of reinvesting for you.

Users simply have Moka round up everyday purchases, and invest that spare change. The downside is that the app isn’t free, and you’ll have to pay at least $3.99 per month to use the service. The $15 option gives users more customized support, such as customized debt-relief plans and financial advice. Moka is best used as a getting started app, which means you may eventually outgrow it, if you decide to manage your investments more directly.

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Questrade

Price: $4.95 per trade of stocks, free for ETFs
Account types: RRSP, TFSA, LIRA, RIF, LIF, RESP, margin and forex accounts

If you’re a do-it-yourself investor, but you’re new to the scene, then you’ve likely already been guided toward exchange-traded funds (ETFs). They can be a great option for new investors who like a low-risk investing option.

Not only is Questrade low cost, it’s free when you purchase ETFs. That’s huge for young investors who aren’t able to afford a lot to invest in the first place. However, Questrade will come for commissions when it comes time to sell.

And even when you’re considering other trades, fees are the lowest out there at $4.95 per trade, compared to the big banks, which can be around $10 per trade. Investors can get access to real-time data for free as well. The only drawback is you need to have at least $1,000 to invest to get started.

WealthSimple Trade

Price: Free to $10 per month
Account types: RRSP, TFSA, LIRA, RESP

One of the most popular investing tools over the last few years has been WealthSimple. On the one hand, WealthSimple is incredibly easy to use, and free. If you get the basic program to buy and sell stocks and ETFs, there are no fees or commissions attached. Plus there’s no minimum amount to get started.

A $10 monthly fee will allow clients to hold, buy and sell securities in U.S. dollars, and then only pay a 1.5% conversion fee.

While WealthSimple does have a lot to offer investors, not every security out there is available for trading. So you may be limited in what you can trade. Plus, there is a lack of advanced charting. Therefore, if you become an advanced do-it-yourself investor, you might need to seek outside resources.

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CIBC Investor’s Edge

Price: $4.95 to $6.95 per trade, free under 25
Account types: TFSA, RRSP, RESP, RRIF, LRSP, LIRA, LRIF

Now it’s likely you’re one of the millions of Canadians who already have an account with one of the “big six” banks. But when it comes to your parent’s banks, there are some big differences in their investing platforms.

One of the best out there is CIBC Investor’s Edge. Not only can you gain access to research through the platform, but also analyst upgrades, downgrades and notes. And this seems relatively unique to CIBC.

Commissions are low compared to most other banks, at just $6.95 per online trade in stocks or ETFs. If you’re an active investor, that drops to $4.95 per trade with over 150 trades made per quarter.

But if you’re under 25, CIBC offers free trading right now for stocks and EFTs, which is a great opportunity for young investors. However, the platform still charges for other options, such as mutual funds.

TD Easy Trade

Price: Free to $9.99 per trade
Account types: TFSA, RRSP, cash account

Last but not least, TD Easy Trade is viewed as one of the easiest investing tools out there. There are no monthly or quarterly fees, no minimums, and up to 50 commission-free stocks trades per year for clients.

Now after those 50 trades, commission jumps back up to $9.99 per trade. So if you’re hoping to buy and sell a lot, then those commission fees may start to add up quickly.

The bottom line is that TD Easy Trade is what it’s marketed to be: easy. It’s perfect for beginners who are new to investing and want to continue learning about investing.

And it’s incredibly cheap if you’re just looking to buy and hold, with only a few trades throughout the year. However, the main drawback is that if you want to invest in anything other than an RRSP, Tax-Free Savings Account (TFSA), or cash account, you’ll need to upgrade to TD Direct Investing.

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About the Author

Amy Legate-Wolfe

Freelance Contributor

Amy Legate-Wolfe is an investment junkie, who aims to help others get hooked by providing well-researched advice. After receiving a masters in journalism from Western University, Amy worked for Huff Post and CTVNews.ca, while freelancing for organizations such as the CBC, Motley Fool Canada and Financial Post. Amy Legate-Wolfe is an experienced personal finance writer and freelance contributor working with Money.ca.

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