Discount Brokerage News – Page 41

Posted on March 28, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – March 28th, 2014

As March comes to a close, winter still seem reluctant to leave so many Canadians. Even so, spring is in the air and it is bringing with it some surprises from online brokerages which will hopefully leave DIY investors with more green in their accounts.

In this week’s discount brokerage roundup we cover the news on one discount brokerage that received an award of a different kind – as a well managed company. In addition we focus on deals poised to expire, new deal announcements and a couple of interesting educational offers linked to discount brokerages. Finally, we share some very interesting threads from the investor forums on ETF price drops, switching online brokerages and important buyer-beware notices for a major online brokerage’s dividend procedure.

Don’t Stop Believing

Earlier this week, popular online brokerage Questrade released a video (below) that highlights what their employees believe is great about working for this discount brokerage. The release coincided with Questrade’s third award from the Canada’s Best Managed Companies program. For a full list of this year’s winners of the Canada’s Best Managed Companies, click here.

As part of their news release, Questrade appears to be looking to hear about “what Canadians believe in” via social media channels. Interestingly, neither the Twitter chatter nor their Facebook page seemed to ask the questions directly to their respective followings.

What was also interesting to note was the rare show of finance collegiality that Questrade received from CIBC (a sponsor of the Canada’s Best Managed Companies program and parent to rival brokerage CIBC Investor’s Edge) via CIBC’s twitter feed.

Investor Education Back on the Map

It appears that investor education is literally being put back on the map for a couple of discount brokerages this spring.

Larry Berman’s speaking tour (co-sponsored by Scotia iTrade) continues to wind its way through stops across Canada for April and May.

In addition, Desjardins Online Brokerage (aka Disnat) is also launching a Stockscores tour similar to their “SCATE” tour which ran last year. This new Stockscores tour appears to be focused online as well as out in Western Canada with events planned for Calgary and the Lower Mainland of BC.

As part of this tour, there will be a promo entitled the “Hat Trick” promo because it offers those who sign up for a Disnat Direct account with a deposit of at least $10,000. For more details on the offer, check out our discount brokerage deals section.

Deals Are Springing Up

Spring is synonymous with renewal and also with new life. For Canadian online brokerages, the decision to renew, release new deals or let deals expire is an important question heading into April.

There are 8 discount brokerage promotions or offers that were set to expire at the end of March and whether some or all of these change will be interesting – especially given the announced offers recently by TD Direct Investing as well as the deal launched by Desjardins Online Brokerage.

Of those offers poised to expire, only Desjardins Online Brokerage has extended their long running $300 commission credit offer out to August 29, 2014. It will be interesting to see what some of the major bank-owned players as well as the independent online brokerages have planned in response.

From the Forums

This past week’s forum activity was very interesting as there were a number of really interesting conversations about issues many self-directed investors follow. We’ve selected three topics that seemed to attract and deserve extra attention.

ETF Price Wars

Investors in two different forums, the Financial Wisdom Forum and Canadian Money Forum, were abuzz at the news that one of the largest ETF providers within Canada (BlackRock iShares), was dropping their management fees on a number of ETFs. Given the popularity of ETFs amongst Canadian investors for their low management expense fees, the news ignited all kinds of interesting angles on what this means for investors.

Click here to read the Financial Wisdom Forum post and here to read the Canadian Money Forum thread.

Switching Online Brokerages

What happens exactly when going from one discount brokerage to another isn’t exactly clear to most folks. For those who have lived through a switch, the experiences appear to range from seamless to nightmarish. In the following post on Red Flag Deals’ investing forum, there are some interesting comments on making the switch from TD Direct Investing over to Questrade specifically and on changing brokerages in general.

Caveat Emptor for Dividend Strategies

Strategies involving dividend payments are popular with many investors. Outside of registered accounts, however, dividend seeking investors have to be aware of foreign investment rules and taxes that can apply to dividends originating from stocks outside of Canada. A really interesting example of the devil in the details was brought to light from this Red Flag Deals thread about Interactive Brokers. For those considering US stock dividend investing strategies with this brokerage, this is a must read.

That does it for this week. If things look a little darker this weekend, it’s because from 8:30-9:30 PM on March 29^th cities all over the world will be celebrating Earth Hour in support of climate change awareness. Learn more about the #MomentOfDarkness here.

For the traders out there, light some actual candles to show support (not resistance!).

Posted on March 21, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – March 21, 2014

If there is one thing that March madness can guarantee, its unpredictability. In the discount brokerage space this was certainly the case as we were watching to see who, if anyone, would launch a promotion that could make a splash in the already ultra-competitive online brokerage market. This past week it happened.

In this week’s roundup we’ll take a look at that deal launched by one of Canada’s largest bank-owned brokerages, then see which major online brokerage was crowned ‘#1 online brokerage’. Next we’ll take a peek at some interesting technology that brokerages south of the border are tinkering with. Finally, we round out this week by looking at a couple of interesting investor forum posts.

Kind of a Big Deal

On the heels of their now lowered standard commission offer, TD Direct Investing has upped the ante in the discount brokerage price battle by announcing a new promotion. Until April 30^th TD is offering up to 300 commission-free trades for those who open a new account with a deposit of at least $100,000. For those who are depositing less than $100,000, TD is offering 30 free trades. Recently, RBC Direct Investing had a 20 commission-free trade offer however this new promotion by TD Direct Investing is going to make a splash because the sub-$100K depositor can land 30 free trades good for 90 days (or slightly longer depending on when the account is opened). At the $100K+ deposit level, there is still BMO InvestorLine’s offer of $250 + 250 commission-free trades that comes close however the TD Direct Investing deal edges it out when factoring in the cost per trade. At the very least, TD’s latest offer will spur other bank-owned brokerages to put together an offer that can rival the combination of promotion plus lowered standard commission pricing. To learn more about all of the current discount brokerage promotions here.

Interactive Brokers Wins Top Online Brokerage

For the second consecutive year, US financial publication Barron’s has rated Interactive Brokers as the #1 online brokerage. The US online brokerage market is a highly competitive marketplace so edging out the field is no easy feat. Barrons’ ranking compared 20 discount brokerages across 8 categories they felt were relevant to evaluating the user experience and scored all of the online brokerages out of 5 for each category. Interestingly, Interactive Brokers led the field on costs and did well on portfolio analysis as well as trading experience and technology.

Timing the Market

With the competition being so fierce in the US, not only do prices go down, but innovation tends to go up. This interesting article about what US discount brokerage Fidelity is trying to do with smart watches definitely highlights that. While it appears that the jury is still out on whether a watching your stocks on your watch will improve your market timing, it is nonetheless interesting to peek over the fence at our neighbours to the south to see what, if anything, could come our way in Canada. In this case, self-directed investors might be staring at their regular old watches (or smartphones) for quite some time before the smartwatch trading applications land at a Canadian discount brokerage.

From the Forums:

In this week’s forum posts, a pair of interesting threads from Canadian Money Forum crossed our radar.

Settling the Gambit

One of the interesting techniques for potentially saving on US currency conversion fees is called Norbert’s Gambit.

In this thread, there is a great example of the importance of understanding the trade settlement process in detail as well as which discount brokerages tend to fare better for clients wishing to perform this technique.

Here’s My Number, So Call Me Maybe

For many DIY investors, one of the important sources of information about the potential of a stock comes from analysts who follow the company’s ins and outs carefully. The recommendations analysts make about price targets are interesting because they seem to suggest a level of certainty that, in reality, just doesn’t exist. This thread wonders out loud what the value of analyst price targets are and the answers from the forum are worth a read.

That does it for this week’s roundup. Enjoy the first official spring weekend and hopefully it won’t be filled with too many basketball or weather induced facepalms!

Posted on March 14, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – March 14, 2014

This week’s discount brokerage roundup is a little ‘rounder’ than most as it falls on Pi Day. This irrational edition of the weekly roundup features a quick announcement about an ETF webinar reschedule followed by a release by one discount brokerage of a refreshed trading platform. In addition, we provide some interesting results from US online brokerages that may be telling of what may unfold here in Canada and finally we’ll come full circle with an irrational forum post fit for an algorithmic king.

Credential Direct Webinar Moved

Although we were looking forward to the session with the Canadian Couch Potato this past week, it seems that this webinar got postponed. The date for the new webinar with Dan Bortolotti is March 19^th at 12 pm ET.

myQuestrade Gets a Refresh

Questrade users got a nice surprise recently as the discount brokerage rolled out its latest upgrade to the myQuestrade interface. There are upgrades to monitoring one’s account including performance stats and charts that make staying on top of one’s account much easier than it used to be. The reaction from Questrade users online was generally very positive – although it appears that there may be some third party compatibility issues with Mint. To learn more about the updates, check out the video below the tweets.

Back to the Future

When it comes to online brokerage products, pricing and services, the US market tend to be an interesting place to look for clues as to what may be coming down the wire here in Canada. And, unlike the title song from Back to the Future, it looks like the discount brokerage train will be looking for money and for credit.

As the Canadian marketplace tries to adjust to the newer reality of lower commission pricing, the US has already been working through this environment for quite some time. An interesting set of articles released this week helps to paint a picture of what is going stateside that could shape how things unfold for Canadian discount brokerages.

First, data from this article adds to the evidence that more and more retail investors are participating in the markets. An important takeaway (and perhaps disturbingly) is that many ‘institutional’ investors monitor the participation of retail investors in the market as a contrarian indicator – meaning when the public is piling in, the pros are on their way out. With more and more retail investors coming in, it is safe to wager more seasoned investors are becoming more cautious.

A second piece, a news release from ratings agency Fitch, suggests that large brokerages are interested in attracting deposits and supplying fee based services to offset low trading commission revenues. In their analysis Fitch also reaffirms the view that pricing for commissions will continue to be driven lower. The bottom line, bank-owned or larger online brokerages could start to make their managed products and ancillary services more of a focal point. For smaller or independent brokerages, however, these other services aren’t an option (unless they partner with a bank) so increasing fees (as Questrade is doing with their cheque processing fee for example), getting more active traders, higher margin lending rates and/or aggressively pursuing more assets could all be part of the plan.

From the Forums

IPO Frequencies Going High Frequency

It seems that IPOs continue to generate interest, and while calling a bubble is hard to do, the word comes to mind when looking stories such as this one from the Financial Wisdom Forum that showcase a high frequency trading firm going public. You can read up on the financial firm Virtu mentioned in the post here. Skepticism is warranted but also – what are they paying on trading commissions?

That does it for this week’s roundup. Hope you all have an irrationally great weekend!

Posted on March 7, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – March 7, 2014

The beginning of March has seen a frenzied week across international markets and here at home in the discount brokerage space. While the world is watching to see what unfolds between the Ukraine and Russia, markets paused only briefly on the news but then continued to push higher into new all-time highs (for the S&P 500) illustrating once again that markets and headlines don’t always agree on the state of the world. Sorry bears.

Closer to home, many discount brokerages were busy attending to the last minute RSP contributors who managed to get in ahead of the March 3^rd deadline. Now that RSP season is over, brokerages are taking a slight pause before trying to land the deposits from tax returns into new trading accounts.

In this week’s roundup, we cover yet another major online brokerage that has dropped their standard commission pricing, we report trading activity from a an independent online brokerage, news from a major investor conference that took place in Toronto and a couple of interesting threads from the Canadian investor forums.

Desjardins Online Brokerage Lowers Commissions

It seems that there has hardly been a week that has gone by that hasn’t seen an announcement by a major online brokerage lowering their standard commission fees.

This past week, Desjardins Online Brokerage (aka Disnat) became the latest discount brokerage to do so by lowering their standard equity commission trading rates on their Disnat Classic platform from $29+ to $9.95. While the Disnat Classic rates have changed, Disnat Direct will still have the same standard pricing structure for equity trading ($19.95+).

Also lowered is the cost of options trading via Disnat Classic – it is now a $1.25 per contract with a minimum charge of $8.75 per trade.

As with the bank-owned brokerages, there may be an administrative (aka inactivity or minimum account balance) fee that is charged depending on the trading level or balance or whether a registered account is held.

For Disnat Classic, an administrative fee of $25 per quarter can be waived for account holders whose portfolio balances are greater than $15,000, or if they make 2 or more trades are within a year or if they also hold a registered account.

Trading Figures Still Strong

The passage into March means that trading activity statistics from Interactive Brokers were made available for the month of February. According to the latest figures, trading was up 19% on a year over year basis compared to February 2013, however on a month-over-month basis the Daily Average Revenue Trades (DARTs) were about the same. DARTs for February 2014 totaled 581,000. The number of client accounts at Interactive Brokers continued higher with 247,300 accounts representing a 2% growth over the prior month and a 19% increase over the same point last year.

Prospecting for Prospects

One of the world’s largest mining conventions took place this past week in Toronto. The Prospectors & Developers Association of Canada (PDAC) held their annual convention and, despite the downturn in commodity markets, there were enormous crowds of investors (retail and institutional) as well as industry, government and media in attendance.

The size and scale of the convention reflects just how important it has become as a place for the mining industry to converge and for deals to get done. Prime Minister Stephen Harper spoke at the event as well as other key political representatives.

One thing that stood out was the sheer number of attendees looking to generate business – a great example of the fact that prospecting underground also requires a lot of prospecting above ground too.

Commission-Free ETFs Back on the Radar

With pricing at major bank-owned online brokerages dropping into line with one another, many of these banks as well as other brokerages are going to be trying harder to highlight features and benefits apart from pricing that make them stand out from their peers.

One of the products offerings that will likely get attention as a result of this are commission-free ETFs. A recent article from the Globe and Mail this past week reiterates much of what is covered in our special series comparing commission-free ETFs at online brokerages – namely that while paying low or now commissions is nice, ultimately you have to look at what exactly you are buying and whether that is the right fit for your portfolio needs.

Recently, Rob Carrick of the Globe and Mail has also put together an ‘ETF Buyer’s Guide’ available via the following links:

From the Forums

Portfolio Orientation

A post from this past week’s forum scan serves as a great example of the importance of knowing what it is that you are buying when looking at either ETFs or low-cost mutual funds. Click here to read what the Canadian Money Forum users had to say to one RBC Direct Investing client who’s decided to go it alone.

On the Margins

Margin and margin accounts are typically used for trading stocks or options, however there are cases when they can be used for more. This post from Canadian Money Forum shows how one user is thinking outside of the box when using margin, however the message from the community is: if (or when) things go down in value, beware of the dreaded margin call.

That does it for this week’s roundup. In case you missed it, here’s the link to the March Madness edition of our monthly newsletter. Have a great weekend and don’t forget, clocks spring forward by an hour!

Posted on February 28, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – February 28, 2014

Less than a week after skiers and snowboarders were making their way down the slopes, a different set of peaks and valleys are now confronting investors. At the peak, the S&P 500 chased a new all-time high this week. Down in the valley is bitcoin because of the loss of a major exchange to a possible theft.

Canadian discount brokerages were also busy navigating their own ups and downs this past week. In this roundup we look at a major Canadian online brokerage that went temporarily offline, roll outs of a new set of US Dollar registered accounts, the continued ripple effect of standard commission price drops, a couple of interesting educational resources and finally, some insightful threads from the Canadian investor forums.

TD WebBroker Goes Offline

As one of Canada’s largest bank-owned discount brokerages, clients of TD Direct Investing had a rough couple of days this week when WebBroker (and EasyWeb) went offline due to technical difficulties. The cause of the outage was not disclosed however the outage caught the attention of investors on social media, forums and mainstream media.

View the story “TD Direct Investing’s WebBroker Goes Offline” on Storify

The outage is an important example of what can sometimes go wrong when trading online and also where traders can turn when something unknown happens. Active traders that had open positions or trades going against them were likely in for a white-knuckle ride as they were forced to wait and watch the market unfold. For others who were looking to contribute into their RRSP accounts ahead of the deadline, the downtime was understandably frustrating.

While it is cold comfort to investors or traders who are unable to access their account, the fact is that technical glitches can happen to any online brokerage, exchange or data providing member in the convoluted pathway between buyer and seller. Part of trading online means preparing for and accepting these hazards.

Even though TD did apparently broadcast the service interruption, it was interesting to note that on Twitter there were a number of messages from users indicating the issue first arising, escalating and finally being resolved. The use of Twitter as a way to stay informed about what’s happening in near real-time comes in handy when other channels aren’t providing much information.

USD Registered Accounts Quietly Rolling Out

US dollar registered accounts are great feature for those who do a great deal of trading in US listed equities and options. While several bank-owned online brokerages do offer this, some of the major brokerages such as TD Direct Investing, have yet to bring this feature to clients.

A comment left by visitor ‘Jin’ earlier this week brought to light that National Bank Direct Brokerage is quietly offering existing and prospective clients USD TFSAs and RRSPs. Upon following up with a client rep from NBDB, they explained that these accounts are being rolled out as part of a multi-phase plan and that currently they are about 2/3 of the way through this process. What this means for investors is that, for the moment, these registered accounts can accept deposits in USD and clients can trade (and hold) USD equities, however withdrawals from the account will result in a currency conversion back into CAD. We’ll continue to monitor this as more information becomes available.

Price Drops Continuing to Make a Splash

While Canadian discount brokerages commission pricing still has plenty of room to fall when compared to brokerages in the US (such as Robinhood which doesn’t charge any commissions on a trade) the recent moves by bank-owned online brokerages are continuing to make waves with investors. This article from the Toronto Star is a perfect example of the spotlight now shining on pricing. For those considering the new lower commission costs, it is also important to consider any other costs that still may be associated with the account, such as inactivity fees or minimum balance fees. The second of our two-part series (released this week) looks at the commission-price drops at bank-owned online brokerages and in particular at some of these fees.

Know Your Options

One of the new ‘battlegrounds’ for the deep discount brokerages is in options trading. Recently Virtual Brokers released a new promotion that offers free data for their PowerTrader Pro platform for clients who make one or more complex options trades. Earlier today, Questrade released a free guide to options trading which explains some of the complex trade types that can be placed using the Questrade IQ platform. To download a free copy of the guide, click here.

Another interesting story readers may be interested in tracking is a special by CBC Marketplace this Friday (tonight). This story is the result of a mystery shop exercise at Canadian financial firms (including Canada’s big 5 banks) to see what kind of financial advice was being dished out by the firms’ “financial advisers”.

From the Forums

This week’s forum threads capture the outage at TD described above (and the lessons other investors can draw from this situation) as well as an instructive post on how to convert from USD to CAD using Interactive Brokers.

Murphy’s Law

The forums were alight with users of TD Direct Investing not being able to access their accounts. Check out the following posts on Canadian Money Forum and Red Flag Deals as a sobering reminder that as DIY investors there’s a lot more that can go wrong when trading online.

Crossing the Border

For those curious about using their brokerage to convert between USD and CAD, there have been a number of different approaches. This post on RedFlagDeals’ forum provides a concise ‘how to’ for users of Interactive Brokers.

That does it for this February-ending edition of the weekly roundup. Have a safe and warm weekend!

Posted on February 21, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – February 21, 2014

This past week in the Canadian discount brokerage space seemed about as quiet as the US Women’s Olympic hockey team dressing room after that most spectacular win by Team Canada. The silence on the brokerage front, however, is likely indicative of the planning and ‘strategizing’ by marketing and product teams as the battle for brokerage supremacy heats up. In fact, there are whispers around the discount brokerage industry are that there will be additional deals and price drops in the very near future. For the present though, this roundup will take a look at the next brokerage to join the sub-$10 per trade club , the results of an interesting survey about RRSPs as well as a selection of interesting conversations from across the Canadian investor forums.

If a Commission Drops in the Forest…

This past week National Bank Direct Brokerage became the fourth bank-owned brokerage to drop its standard commission fee to under $10. Interestingly the response on either forums or social media didn’t generate much interest. On our end, however, we did ensure that NBDB’s pricing drop did not go unnoticed. Today we launched part 1 of the two part series looking at all of the bank-owned online brokerages’ recent commission lowering moves, including National Bank’s.

Stash First, Save Later

In addition to their commission announcement, National Bank Direct Brokerage also announced the results of a survey that looked at opinions of Quebec internet users 18 and older regarding RRSP contributions. The findings of the study were interesting in terms of the amounts that individuals disclosed they thought would need as a minimum in order to contribute to their RRSPs. According to the survey the average contribution amount turned out to be $2750 suggesting that individuals may have a preference for contributing lump-sum amounts versus making smaller, regular contributions.

Coincidentally, with the latest commission price drops, at least two bank-owned brokerages (TD Direct Investing and RBC Direct Investing) have made pre-authorized contributions to an account or having an RRSP account part of the criteria that can help those with modest or small portfolio balances not incur quarterly maintenance/account fees.

Around the Forums

As we edge closer to the RRSP contribution deadline for 2013, the conversations around the forums are definitely starting to reflect both tax and RRSP type of questions. Of course, some folks are already anticipating what to do with their income tax refunds by getting prepared to invest and so online trading account questions are also popping up. This week there’s a couple of interesting posts that reflect some of the nitty gritty that DIY investors typically encounter when investing online.

For Whom the Border Tolls

The Olympic spirit may be all about bringing different countries together, but investing in stocks from different countries can cause all kinds of ‘quirky’ issues. The following post from Canadian Money Forum details the woes of holding American Depository Receipts (ADRs) (i.e. shares in foreign company) and the coordination of dividends that come from them.

A Taxing Problem

In the following post, a forum user has to figure out what to do with all the money they’ve made in a margin account. Oh, it sounds like a tough life. For investors, however, when things do go the right way there are important tax considerations that fellow forum members provide some perspective on. Of course, nothing beats the advice of a qualified accounting professional in these cases.

That wraps things up for this week. The Olympics are coming to an end next week and it looks like Canada’s done a smashing job. Congratulations to all of the Canadian athletes and good luck to the men’s hockey team as they face-off against the Swedes. Also, February is officially coming to an end next week so be sure to check the deals and promos section to see which deals are also going to wrap up. Have a great weekend and #GoCanadaGo!

Posted on February 14, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – February 14, 2014

On this Valentine’s Day edition of the discount brokerage weekly roundup, romance is definitely the air for many folks. Yes, it appears more bank-owned discount brokerages are lining up to show just how much they love their self-directed investor clients by offering lower commissions. Courting self-directed investors, however, is going to take more than just price cuts. As one low-cost brokerage showed this past week, getting fancier bells & whistles may be part of what’s needed to woo investors their way. In addition to ‘stuff’, another brokerage took to winning the ‘hearts and minds’ of investors by timing an Olympic themed promo. Finally, this week’s review rounds out with some interesting education events being offered and a great forum thread on RESPs.

The Three Bank Bobsled Team

This past week, BMO InvestorLine became the third Canadian online brokerage to lower their standard commission fee down to $9.95 (click here to read the press release). While not quite a race to the bottom, it seems that the banks are willing to match one another on their standard pricing. For self-directed investors this is definitely welcome news as the pressure will certainly be mounting on those remaining online brokerages with high (and complicated) standard fees to drop them. On a related note, there was an interesting article in the Globe and Mail regarding the move by bank-owned online brokerages to lower their fees as a strategic move to bring in revenues from sources other than the banking services.

View the story “BMO InvestorLine Lowers Standard Trading Commissions” on Storify

Getting the Power

Not content to sit idly by as the bank-owned online brokerages drift into their pricing territory, this past week Virtual Brokers took aim at the platform and data category by rolling out their PowerTrader Pro platform in a bundle with free streaming data (with a catch of course). For those brokerages that’ve been chasing the lucrative active trader segment, platforms and data fees (in addition to commissions) have always been a sore point. The PowerTrader Pro platform, however, is built on the Sterling Trader Pro platform so it has definite appeal to active traders. To that end, Virtual Brokers is offering free streaming data with the platform for those making complex options trades. This package and platform take aim at TD Direct Investing’s US Trading Platform (aka ThinkorSwim), Interactive Brokers’ Trader Workstation and Questrade’s IQ platforms as well as those web based or desktop based platforms that don’t have the fancy scanners, charts and trade planning.

Metals for Medals

An interesting Olympic-themed promotion is being offered by Questrade. Until February 24^th, Questrade is offering 50% off precious metal commissions. To boot, they are also offering a special promo every time Canada wins either a gold or silver medal. For the physical precious metals bugs, it is but one more reason to cheer on the stellar performance of this year’s Canadian Olympic effort.

Investor Education Events

With all the talk of athletes and fitness, the couch potatoes out there also have something to cheer about. Credential Direct announced this past week that they are holding a webinar with Dan Bortolotti aka the Canadian Couch Potato. This webinar will be about building the “perfect” ETF portfolio and yes, attendees can join this webinar from the comfort of their couches.

Continuing on in the investor education theme, Desjardins Online Brokerage (Disnat) is holding a week-long series of education sessions Montréal & Québec City. The events are free and topics cover a number of themes for self-directed investors. Of note is that there are a couple of interesting sessions on taxation for investors/traders. Check out our investor education calendar for more information.

From the Forums

Given the time of year, there is an increase in the number of questions about registered accounts of all kinds (RRSPs, RESPs and TFSAs). One thread in the RedFlagDeals forum in particular stood out as being an interesting look at RESPs at discount brokerages – specifically on the point of joint subscribers. Click on the post below to learn more about what folks had to say about RESPs at Canadian discount brokerages.

That does it for this week’s roundup. Hope everyone has a great weekend and just as a reminder, Canadian and US stock markets will be closed on Monday – perfect timing given the release of the new House of Cards!

Posted on February 7, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – February 7th 2014

If there’s one thing that the world can agree on, it’s that those little asterisks can be a pain in the…well you know where. Many self-directed investors have come to accept them. Even the opening ceremonies for the Olympics certainly weren’t immune to bad case of the unexpected asterisk.

This past week, however, another major Canadian online brokerage followed the lead of RBC Direct Investing by dropping the asterisk from their standard commission fees. In this week’s roundup we’ll look at the offer as well reactions from investing community about the latest commission-price move. The investing community was also a part of another online brokerage’s focus – specifically the Quebec investing community. Finally, we’ll cap off the week with a selection of interesting discussion threads.

Two Discount Brokerages and Counting

Although we knew it would be inevitable, it was certainly anybody’s guess as to which bank-owned brokerage would follow RBC Direct Investing’s move of lowering and simplifying standard commission trading fees.

That mystery was solved early Friday morning when the official announcement was made by TD Direct Investing that they too were lowering their standard commission fees from $29+ down to $9.99. Interestingly, however, the rumours about the move were swirling on the forums a day ahead of the announcement apparently when clients were tipped off by client service reps that the move was coming. Nonetheless, with the official announcement, TD Direct Investing also updated their fee & commission guide to reflect the change in pricing. Here are some of the details:

First, standard commission rates for all TD Direct Investing account holders goes to $9.99.

Inactivity fees (or as they call it “Custody Fees”) of $25 per quarter are charged for non-registered accounts that have less than $15,000 in combined assets across all TD Direct Investing accounts. There are, however, several ways in which the fees can be waived.

For those with less than $15,000, inactivity fees can be waived if:

They have a TD Direct Investing Registered Account
More than 2 commissionable trades are made within 6 months
A preauthorized savings/investment/contribution program is established with a minimum contribution of $100/month

While other brokerages, big and small, are doing anything but cheering, it appears that Canadian retail investors are celebrating the move by TD. Investment forums and Twitter lit up with (mostly) cheers from consumers regarding the move.

View the story “TD Direct Investing Lowers Standard Commission Fees” on Storify

Investing Online in Quebec

National Bank Direct Brokerage released results of a survey they conducted regarding self-directed investors in Quebec. This announcement provided a useful window into the DIY investing crowd in Quebec, specifically showing the percentage of individuals interested in managing their own portfolios. The survey data show that 38% of those aged 18-34 invest independently and that almost half of this group expect to manage their assets themselves five years in the future. Interestingly, almost all (96%) of those surveyed did research across multiple information sources before investing.

This data is interesting to compare with the findings from a BMO InvestorLine study from August 2013. Although the BMO InvestorLine study looked more broadly across Canada at the information sources consulted (and ‘trusted’) by Canadians, financial websites seemed to be consulted less in the BMO study (~29%) than in the National Bank Direct Brokerage study (54%). While difficult to compare these studies directly, it is an interesting difference between the two.

From the Forums

Amidst the hubbub about TD’s commission price drop announcement, there were still a number of interesting conversations on the major Canadian investing forums.

I Heard a Rumour

Of course, we’ve included the link to the TD Direct Investing thread on RedFlagDeals where readers can check out the full conversation from rumour to announcement.

Banking on Change

This forum post shows that price alone may not be enough to keep an investor from looking for greener pastures. Apparently features also matter. Check out what the community had to say when one RBC Direct Investing client starts shopping for another brokerage to go to.

That does it for this week’s roundup. It’s now time to cheer for your favourite Olympic teams – good luck to all the athletes especially the Canadian crew. In case you missed the SparxTrading February newsletter that went out earlier this week (which you can sign up for in the sidebar), here is the featured image – appropriately themed of course.

Posted on January 31, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – January 31st, 2014

As January comes to an end, looking back on all of the deals and announcements from discount brokerages, it seems like that there was way more drama amongst the brokerages than even Justin Bieber could muster up. And if this past week is any indication of what’s ahead, February will see discount brokerages pushing to make headlines of their own.

Even though January was coming to an end, the Chinese New Year was just beginning and with it came deal announcements from two bank-owned brokerages as well as a dysfunctional relationship themed commercial just in time for Valentine’s Day. Online brokerages were also in the spotlight for other reasons too as a pair of articles on trading traps and practice accounts came across our radar. Finally, with all the deals now flying around a great forum post gives some perspective on how many free trades are enough.

Giddy Up

BMO InvestorLine kicked off the year of the horse with the launch of the traditional Chinese version of its website as well as with a cash-back promotion for $88. Interestingly, BMO is also offering a deal with a slightly better payout of $100 alongside this promotion which makes it a bit of a tough call for investors who have to decide between being richer or potentially being lucky. For full deals info, check out the discount brokerage promotions section here.

Caught in a Bad Romance

Also, with Valentine’s Day around the corner, it looks like BMO InvestorLine is pulling out all the stops with a relationship-themed video about choosing an online broker. We spotted this video (see below) posted on Vimeo by what looks to be the agency associated with the commercial. While having more than one brokerage is common for many investors, it’s an interesting to see the already intense marketing battle for brokerage clients heat up and move to video.

BMO InvestorLine – “A BMO InvestorLine Love Story”

Love for a Limited Time

Earlier this week, CIBC Investor’s Edge also ran a promotion alongside their Client Appreciation Day (Jan. 30^th) in which they offered a very limited time offer of $400 for $50,000 deposits or $200 for $25,000 deposits. Those wanting to access the deal for the online brokerage had to go into a CIBC branch to sign up.

Some Strings Attached

A pair of interesting articles for DIY investors crossed our radar this past week. The first one from Yahoo Finance was about the traps that investors can get lured into by ‘low fee’ brokerages, especially in the context of TFSA accounts. While there were some important points about avoiding over trading, another key point highlighted that DIY investors should decide what features or services are most important to their needs before deciding on commission price alone.

Another article from the Financial Post also geared towards self-directed investors had to do with practice trading accounts. One of the central messages of the article is that practice accounts are better equipped to train investors on order entry rather than becoming savvy investors. While somewhat true, there is definite value in being able to test and develop one’s discipline levels in a simulated environment rather than with actual cash. As the famous investment saying goes, “if you don’t know what kind of investor you are, the stock market is an expensive place to find out.”

From the Forums

Champagne Problems

Whether or not free trades are an incentive for those opening an online brokerage account depends on what kind of investor you’re talking about. In this forum post from Canadian Money Forum, it is interesting to see that in spite of having 60 commission-free trades, one investor couldn’t really come up with trade ideas to use them on before the trade offer expired. This highlights that sometimes how long a ‘free trade’ is available for might be more valuable than how many are offered.

That does it for this week’s roundup. It will certainly be an exciting weekend for those keen on catching the Super Bowl. For a fun read on picking Super Bowl champs using investing strategies, check out this link. Let’s see if the Seahawks can buck this trend. Have a great weekend!

Posted on January 24, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – January 24, 2014

The temperatures are down. The loonie is down. The markets are down. And while it seems like the “polar vortex” was busy cooling things off this past week, the action at the marketing departments of Canadian discount brokers was heating up.

In this week’s roundup, we cover the reaction from several online brokerages to RBC Direct Investing’s big price drop as well as where the new battleground for brokers appears to be emerging. In addition, we’ll also take a look at what was buzzing in the investor forums.

Price vs Value

The major announcement by RBC Direct Investing regarding their change in commission pricing has been making waves across the industry and with self-directed investors. Now that a major Canadian financial institution has decided to lower (and simplify) their pricing structure, both the independent brokerages and the bank-owned brokerages will have to decide how best to respond. For some, it will be with lower prices whereas other online brokerages will try to demonstrate the value of their customer service, new features or trading platforms.

Look at Me Now

Take for example, the announcement from Questrade. Even though earlier this month they had already reduced their minimum trading commissions for their active trader plan from $0.95 down to $0.01 (to match Virtual Brokers’ announcement last year), they nonetheless put out a press/marketing release reaffirming their traditional position as a low-cost online trading option. Similarly, BMO InvestorLine also took to the news/marketing release to inform Canadians that a large portion of investors use technology to improve their lives and that they consume investing information online. In addition to mentioning the technological strength of BMO InvestorLine, that same release also highlighted the AdviceDirect service they offer.

What does the Client Rep Say?

Another interesting angle to this story is the timing of all of these announcements. Earlier in January, Dalbar Canada released their discount brokerage service award results (click here for a review of the 2013 Dalbar award). As it happens, RBC Direct Investing narrowly edged out HSBC InvestDirect to take top spot for this year’s award. This past week, however, another brokerage ranking from financial research firm Surviscor painted a less flattering picture of email response time from RBC Direct Investing. According to Surviscor’s customer email responsiveness assessment, Qtrade ended up having the highest ranking for customer email responsiveness among Canadian online brokerages, whereas RBC Direct Investing was ranked 12th. As with other rankings and assessments, it is interesting to see firms that rank highly in one assessment underperform in another – something that can generate confusion amongst consumers (see the following link for a fuller explanation of ranking of Canadian online brokerages).

Ultimately, what all discount brokerages understand is that it is what clients say to other clients about their experience with a brand that truly matters. To that end, many brokerages may start paying more attention to what customers are saying in order to improve the services offered.

From the Forums

The Financial Webring forum has undergone a brand refresh and is now known as the “Financial Wisdom Forum”. According to the homepage announcement, the change in the layout was done to help users on mobile devices have a better experience navigating from the homepage to forums and their financial wiki or “finiki” as they call it. The forum still exists and can be accessed via the menu at the top of the homepage.

Baby, It’s Cold Inside

Of course, before wrapping up this week’s roundup, there was a thread on Canadian Money Forum regarding TFSAs and commission fees for trades. A new user to the forum, wanted some clarification on where the fees for commissions came from when trading in the TFSA. The group not only offered an answer but also a look at how things work (and used to work) with RRSP accounts too.

That does it for this week’s roundup. On another note, today also happens to be the 30^th anniversary of the launch of the Apple Macintosh. Going into to the weekend it’s amazing to think how so much has changed in so little time including the share price as laid out in the (now dated) infographic below. To see Apple’s birthday tribute, click here.