Q&A With Rob Carrick of The Globe and Mail
What is a big story for DIY investing in 2020 that caught your attention?
There were three big stories:
- The rise of investing apps like Wealthsimple Trade and TD GoalAssist.
- The tidal wave of retail investors who got into the market after the crash in March via online brokers and other channels.
- The terrible customer service at online brokers for clients who needed to speak to a live rep, notably seniors who wanted to take action in their RRIF accounts.
What are the trends that you noticed among Canadian online brokerages in 2020?
I’m noticing a quicker pace of improving websites and mobile apps. Firms that have done nothing to upgrade their websites in ages are finally introducing changes.
Many investors got into the markets for the first time (or came back after being on the sidelines) in 2020.
a. What features should they be looking out for from their online brokerage in 2021?
Tools that help them see how well-diversified their portfolios are and how their returns are tracking in comparison to appropriate stock and bond market benchmarks. Everyone was an investing genius in the second half of 2020. It’s going to get harder.
b. What can online brokerages do to improve the experience for this group of investors in 2021 and beyond?
Stop acting like they are simply an investing platform. Clients need support – not advice, but tools for self-evaluation.
User experience is a hot topic with online brokerages. What are Canadian online brokerages getting right and what are they missing the mark on when it comes to interacting with their services?
Most are failing at a simple thing – showing clients something helpful and empowering as soon as they log in to their accounts. I want to see a dashboard showing info on returns, asset allocation, pertinent news related to their holds, recent dividend and interest payments. A few firms are more or less doing this, and they stand above the rest.
You also hear from a lot of online investors. What are one or two important topics that came up often with that group (especially in 2020)?
Without doubt, and this is a function of The Globe and Mail’s reader base, the number one topic was the inability of brokers to handle the flow of telephone calls from clients. Many complaints as well about websites and apps getting bogged down at busy times.
You have covered online brokerages in Canada for a very long time. How would you characterize their pace of change and innovation in 2020? Do you think things will accelerate in 2021? What might contribute to them changing?
Lots of improvements in 2020 – some already apparent and some will only be visible to clients in 2021. Brokers are busier with upgrades than I have seen them in recent years. Not sure this is a response to demand in 2020. A lot of these changes will have been in the works for a while.
Your online brokerage review is one of the most influential for online investors to consult as part of their research. Can you provide a comment on the strengths and limitations?
Here’s a link to my latest ranking – the 2021 update is coming on Jan. 29. Strengths: I have been covering online brokers and covering investing since the late 1990s, so I have a long-term perspective on what’s important to investors. A limitation is time – I can’t get into as much detail as I’d like in areas like website downtime when trading volumes spike higher and response time for clients trying to call in.
Personal Finance Columnist,
The Globe and Mail
About Rob Carrick
Not all journalists get to live their beat, but I do. My personal finance column in The Globe and Mail is one regular guy’s attempt to make sense of the world of money. I’m married with two 20-something kids and constantly figuring out ways to spend and invest intelligently. I ask the same questions you would and apply my experience and contacts to get answers. I got my start in financial writing back in the early 1990s when I covered the Bay Street business scene for The Canadian Press wire service. A few years later, I was transferred to CP’s parliamentary bureau in Ottawa to cover consumer affairs and, later, the federal Department of Finance. I left CP and joined The Globe and Mail as an investment reporter in 1996. I mentioned to my boss at the time that we didn’t do much personal finance coverage at The Globe. The paper’s Personal Finance column was launched shortly afterwards, with me at the wheel. What a trip it’s been covering personal finance over the years. I’ve seen three bull markets for stocks, a couple of recessions and stock market crashes, one global financial crisis, the incredible rise of the housing market, soaring personal debt loads, and an ever-present worry that Canadians aren’t saving enough for retirement. I know there’s infinite personal finance content available these days online, in print and on TV and radio. Come to me for my experience, my willingness to challenge stale consensus thinking, and, most of all, my ability to make you say after finishing one of my columns: “Now I understand.”