RBC Direct Investing, one of Canada’s largest online brokerages and historically among the providers with higher trading fees, has announced commission-free trading on a batch of 50 exchange-traded funds (ETFs) from partner iShares. This update reflects ongoing pressure in the digital brokerage space to lower or eliminate trading commissions across a wide range of platforms.
The move brings RBC in line with a growing list of brokerages that have adopted zero-commission trading for stocks and ETFs or for selected ETF families. Earlier this year, Questrade moved to zero commissions on all stocks and ETFs, joining platforms such as Wealthsimple Trade, National Bank Direct Brokerage and Desjardins Online Brokerage. Meanwhile, other global and mobile-first brokers including Webull, Interactive Brokers and Moomoo have entered the Canadian market offering competitive, low-cost trading alternatives.
Bank-owned brokerages have been competing for clients on pricing and product access for some time. Several rivals and independent brokers have long offered a selection of commission-free ETFs, and TD Direct Investing provides 50 commission-free trades annually through its Easy Trade phone app. RBC’s addition of 50 commission-free iShares ETFs shows that even established, higher-fee brokerages are adapting to this new baseline of client expectations.
RBC Direct Investing clients can now trade a suite of popular iShares funds without commission, including household names such as iShares S&P/TSX 60 Index ETF (XIU), iShares Core Canadian Universe Bond Index ETF (XBB) and iShares Core Equity ETF Portfolio (XEQT). All 50 commission-free funds come from iShares, the ETF group managed by BlackRock, with which RBC has maintained a distribution partnership since 2019. For the full list of eligible ETFs, RBC Direct Investing maintains an up-to-date reference on its site.
For many investors, eliminating commissions on frequently traded ETFs reduces a common friction point when implementing or rebalancing a portfolio. However, commission-free access is only one cost element to consider. Investors should still evaluate each ETF’s underlying holdings, investment strategy and management expense ratio (MER), as well as bid-ask spreads and overall portfolio construction. In some cases, an ETF’s ongoing operating expenses can have a greater long-term impact on returns than the occasional trading commission.
RBC’s standard fees remain relevant for trades outside this commission-free list. The brokerage typically charges $9.95 per stock and ETF trade, with a reduced rate of $6.95 for clients who execute a high volume of trades. The firm also allows clients to use Avion Rewards points to cover commissions on eligible trades. In a separate account-level change, RBC is removing its quarterly account maintenance fee as of August 1, making accounts more cost-competitive for smaller investors. As part of standard industry practice, RBC will also continue to reimburse up to $200 in third-party transfer fees when clients move accounts from another brokerage.
What this means for Canadian investors: if you already use RBC Direct Investing and trade any of the newly included iShares ETFs, you’ll see immediate savings on commission costs. For investors weighing a brokerage change, these commission-free ETFs may be one factor among many—platform tools, research resources, order types, currency conversion fees and overall account fees should also inform your choice. If you primarily use a select group of ETFs in your strategy, choosing a brokerage that lists those ETFs commission-free can lower friction and reduce trading costs over time.
As competition continues to push trading fees lower, investors should balance headline commission savings against long-term costs and service needs. Commission-free ETFs can simplify active asset allocation and make smaller, more frequent investments more practical. At the same time, pay attention to ETF selection criteria such as diversification, sector exposure and expense ratios to ensure you aren’t trading into higher-cost options inadvertently.
If you’re deciding whether to switch brokerages or open a new investment account, consult comprehensive comparisons of Canadian online brokers to weigh features and pricing for 2025. These comparisons typically evaluate commission schedules, ETF offerings, account fees, mobile and web platforms, investor education resources and transfer incentives to help you select the platform that best fits your investing style.
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