Who is Citadel Securities and Why Invest with Them?

Citadel Securities is one of the world’s leading market makers, and in Canada, it plays a behind-the-scenes role in providing liquidity to equity and options markets. While not a direct-to-consumer broker, Citadel’s infrastructure underpins a large portion of Canadian trading activity.

Their core services include market-making in equities, options, and ETFs, working with institutional clients and trading platforms to ensure tight spreads and efficient execution. Citadel does not offer retail accounts.

To engage with Citadel in Canada, you must be an institutional partner or trading platform. All onboarding is done through business development and compliance channels.

While not a broker you can sign up with directly, Citadel Securities plays a critical role in ensuring Canadian markets run smoothly, with fair pricing and dependable liquidity across the board.

What Are Brokers and How Do They Work in Canada?

Brokers are licensed professionals or firms that facilitate the buying and selling of investment products such as stocks, bonds, ETFs, mutual funds, and options on behalf of their clients. They operate through exchanges like the Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSXV), and are regulated primarily by the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Securities Administrators (CSA).

Brokers in Canada serve a broad spectrum of investors — from individuals investing through a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) to institutions managing large portfolios. Here’s how they operate within the Canadian investment landscape:

• Trade Execution: Brokers place buy and sell orders for publicly traded equities, bonds, ETFs, and other financial instruments. Trades are typically carried out via electronic platforms or with the assistance of licensed advisors.

• Licensing and Oversight: All investment dealers must be members of IIROC and register with provincial regulators (e.g., the Ontario Securities Commission). They must comply with rules on capital adequacy, investor protection, and financial disclosures.

• Account Types: Canadian brokers support a range of account types, including non-registered investment accounts, TFSAs, RRSPs, RRIFs, and RESPs. Each comes with specific tax implications and usage rules.

• Full-Service vs Online Brokers: Investors may choose a full-service broker for personalised advice and financial planning, or opt for a discount/online broker for self-directed, lower-cost investing. Many platforms offer mobile apps and research tools.

• Market Access: Brokers provide access to Canadian-listed securities, as well as U.S. and international markets, depending on the platform. Dual-currency accounts are available for trading U.S. securities in USD.

• Clearing and Custody: Trades are cleared through the Canadian Depository for Securities (CDS). Most brokers hold client assets in nominee or custodial accounts, with regular reporting and client portal access.

• Client Protection: Accounts are protected by the Canadian Investor Protection Fund (CIPF) in case a brokerage becomes insolvent, up to certain limits per account type.

• Fees and Commissions: Online brokers offer flat or commission-free trades, while full-service firms may charge advisory or portfolio management fees. All fees must be clearly disclosed under CRM2 regulations.

Tradable Instruments on Canadian Stock Exchanges (TSX & TSXV)

TSX) and the TSX Venture Exchange (TSXV) offer a diverse range of tradable instruments and serve as a key platform for capital formation in sectors such as mining, energy, banking, technology, and healthcare.

Regulated by the Canadian Securities Administrators (CSA) through provincial regulators such as the Ontario Securities Commission (OSC), TSX and TSXV provide access to both large-cap and early-stage investment opportunities across the following instruments:

• Equities (Shares): TSX and TSXV list common and preferred shares from Canadian and international companies. Investors can participate in sectors including oil & gas, financial services, cannabis, and clean technology. TSXV caters to emerging businesses, while TSX hosts more established firms. Shareholders may receive dividends and benefit from price appreciation.

• Exchange-Traded Funds (ETFs): Canada is a global leader in ETFs, with a wide range of products listed on the TSX. These include passive and actively managed ETFs tracking domestic and international equities, fixed income, commodities, and thematic indices. ETFs are widely used by Canadian retail and institutional investors for diversification and cost-efficiency.

• Real Estate Investment Trusts (REITs): REITs listed on the TSX invest in residential, commercial, and industrial properties across Canada and abroad. They are popular among income-focused investors due to regular distributions and real asset exposure without direct ownership of property.

• Bonds and Fixed Income Instruments: While most government and corporate bonds are traded over the counter (OTC) in Canada, some fixed income products—such as structured notes or bond ETFs—are available on the TSX. These offer investors access to interest-bearing instruments with varying durations and credit profiles.

• Preferred Shares: Preferred shares combine features of equity and fixed income, offering regular dividends with priority over common shares. They are commonly used by Canadian financial institutions and utilities and are listed and traded on the TSX.

• Warrants and Rights: Warrants and rights are occasionally issued by listed companies to raise capital or incentivise investment. These instruments give holders the right (but not obligation) to purchase shares at a fixed price within a specified timeframe and may be traded on the secondary market.

• Initial Public Offerings (IPOs): New listings on the TSX and TSXV occur through IPOs, where companies offer shares to the public for the first time. These offerings are regulated by provincial securities commissions and allow investors to participate early in a company’s public growth phase.

• Capital Pool Companies (CPCs): Unique to TSXV, CPCs are shell companies that raise capital without an operating business and later acquire a qualifying business. This structure provides a streamlined way for private companies to go public in Canada through reverse takeovers.