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Discount Broker Weekly Roundup – August 30 2013

Commission-Free ETF Trading Gets to Die Another Day

Earlier this week, I wrote about the announcement from National Bank Direct Brokerage’s decision to extend their commission-free ETF offer.  The announcement of the deal extension, however, wasn’t the only thing that really caught my attention.  Included in their news release was an official mention of an upcoming website upgrade in September and reporting of trading account activity levels increasing with Canadian investors.  It will be interesting to see whether they will continue to report these activity metrics as well as to view the new website when it is unveiled.

Do Canadian Investors Shy Away from Using Social Media for Advice?

Ah, sweet irony.  Within a week or so of BMO InvestorLine publishing results from a study they commissioned that found Canadian investors prefer traditional media over “social media” for investment advice, they also joined an investor forum to dole out some ‘advice’ of their own about their ‘AdviceDirect’ platform.

Discount Broker BMO InvestorLine Question

Discount Broker BMO InvestorLine Response

Late last week, results from a study commissioned by BMO InvestorLine on where Canadian investors seek out financial information found that ‘traditional’ media, such as television and newspapers, are still the preferred sources for financial information for Canadians.  What was interesting about the findings was that, although social media has become so much a part of the daily lives of Canadians, when it comes to investment advice, only a small number of those surveyed either accessed or trusted sources like LinkedIn, Twitter or Facebook as sources for investment information.  I will be publishing a piece exploring these results in detail shortly however one figure that did stick out was the percentage of those surveyed who do look to ‘forums’ for information.

Now, whether a ‘forum’ is technically considered social media or not is up for debate (I personally think it meets the criteria for being social media) however it was interesting to see that reps (or someone claiming to be a rep) from BMO Financial Group join the Canadian Money Forum and subsequently respond to this post by user “MoreMiles” wondering out loud about the value of BMO InvestorLine’s adviceDirect service.

Joining forums to ‘set the record straight’ is not something new – Questrade has done this numerous times on the RedFlagDeals Forum and TD has actually created their own ‘forum’ of sorts (TD helps) in which their customer service representatives also field questions regarding TD Direct Investing.

Options Education Gets a Mention

Also appearing this past week in the Financial Post was a “special piece” (or advertorial?) promoting options education day, which is coming in Montreal (Sept. 7th) and Toronto (Sept. 28th). The piece features comments from Disnat and Scotia iTrade (two of the sponsors of the event) about the interest in options education from retail investors and some the access options provide to additional investment strategies.   Judging from the educational events calendar, there is definitely a lot going on this month in terms of learning opportunities.

Options Education Day is organized by the Montreal Exchange and if you’re interested in learning more about the event, click here for a review or here to be taken to their page.

That’s it for this edition of the discount broker roundup. Remember that Canadian and US stock markets are closed on Monday, September 2nd for Labour day.  Have a safe and happy long weekend!

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