Full-service brokerages provide personalized investment advice, research, and financial planning — typically for higher fees or account minimums. Discount brokerages offer self-directed trading with lower costs, often commission-free for stocks and ETFs. Robo-advisors use algorithms to build and manage diversified portfolios based on your risk profile.
In the U.S., investor accounts are protected by SIPC (up to $500,000 per account). In Canada, CIPF provides similar protection (up to $1 million per account category). These protections cover broker insolvency, not investment losses.
Key factors when selecting a trading platform include commission structure, available markets and securities, research tools, mobile app quality, account types offered, and educational resources. For Canadian investors, consider whether the platform supports TFSA and RRSP accounts and offers access to both Canadian and U.S. exchanges.
For U.S. investors, check for fractional share support, options trading capabilities, and whether the platform offers IRA accounts. Most modern platforms provide demo or paper-trading accounts where you can practice without risking real money.
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