Brokerage review
Interactive Brokers Canada review: low FX costs, advanced platform
Interactive Brokers Canada is the strongest fit when currency conversion costs matter. The tradeoff is that the platform is built for investors who are comfortable with more settings, order tools, and market detail.
TL;DR
Interactive Brokers is best for experienced Canadian investors who convert between CAD and USD, trade US-listed ETFs, or want deeper market access. It is not the easiest first brokerage for someone who only wants to buy one Canadian ETF each month.
Pros
- Low-cost CAD/USD conversion using spot currency pricing.
- US stock and ETF trades with low per-share commissions.
- Investors who want advanced tools, order types, margin, and global market access.
Cons
- Spot currency trades have a minimum commission, commonly USD 2 for the lowest tier.
- The interface is more complex than most Canadian app-first brokerages.
- Commission schedules vary by product, market, and pricing plan.
FX is the main advantage
Interactive Brokers' biggest advantage for many Canadians is currency conversion. Its spot currency schedule lists tight quoted spreads, no markups on quotes, and a separate commission. The lowest monthly volume tier is 0.20 basis point times trade value, with a USD 2 minimum per order.
That minimum matters for tiny conversions, but on larger amounts the difference can be large. A typical Canadian brokerage FX spread around 1.5% can cost about CAD 150 on a CAD 10,000 conversion before market movement. IBKR's commission model is often much cheaper for the same use case, even after the minimum.
Trading costs
Interactive Brokers is not trying to look free. It charges explicit commissions, then competes on how low and transparent those commissions are. The Canadian commissions overview lists low US stock and ETF pricing, fixed and tiered plans, and spot currency commissions from 0.08 to 0.20 bps times trade value.
For buy-and-hold investors, the practical question is simple: do the lower FX and trading costs offset the extra complexity? If you regularly convert currencies or buy US-listed ETFs, they often can. If you only buy Canadian-listed ETFs in CAD, the advantage is smaller.
Platform and tools
The platform is deeper than most Canadian retail brokerages. That includes more order controls, more markets, more account settings, and more ways to make a mistake if you do not know what you are changing.
That depth is a feature for active or experienced investors. For a beginner who wants a quiet app and one-button recurring purchases, it can feel like too much product.
Who it fits
- Canadian investors who make meaningful CAD/USD conversions and want to avoid wide brokerage FX spreads.
- RRSP investors buying US-listed ETFs to reduce withholding-tax drag as part of a deliberate asset-location strategy.
- Experienced investors who value advanced order tools, low margin rates, global markets, and detailed execution controls.
Drawbacks
- The learning curve is real. The platform has more screens, settings, and terminology than a beginner app.
- Small, simple CAD-only portfolios may not benefit enough from the lower FX schedule to justify the complexity.
- Because pricing depends on market, product, and plan, investors should check the exact schedule before trading.