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Discount Brokerage Weekly Roundup – May 19, 2017

Drama. It’s what draws viewers into reality TV and it’s what reality TV producers and those in the entertainment world know how to harness – the innate human tendency towards uncertainty. Funnily enough, financial markets aren’t that different either, with human reactions (and aversions) towards uncertainty playing out almost daily. Interestingly, Canadian discount brokerages are also trying to figure out how to harness the tendencies to avoid emotional decisions as well as the tendencies to be moved by them.

In this week’s roundup, we go part-robo with the rundown of Canadian online brokerages who’ve ventured into the automated/digital/robo-advisor space, and the incentives that are being offered to win new clients. From there, we take a more social turn to tell a tale of two online channels by looking at the social media activity from a pair of Canadian discount brokerages. Of course, as always, we cover the full scope of DIY investor chatter with a summary of online investor tweets and a few interesting posts from the DIY investor forums.

Domo Arigato, Mr. Roboto

This month, one of the (if not the) leading robo-advisors in Canada just reached a crucial milestone. Wealthsimple, the flagship robo-advisor that is building their brand with a combination of star-power, zeitgeist and deep-pocketed backers, added to their celebrity status by having Canadian Prime Minister Justin Trudeau pop by their offices as they crossed the $1B AUM (assets under management) marker.

Without question, Wealthsimple and their peers – the independent robo-advisors, have shaken the wealth management tree in Canada. Over the past three years, the robo/digital advisory landscape in Canada has mushroomed from nothing to just over a dozen firms competing in this space. And, on either side of the robo-advisor industry are a long list of financial services firms who are not going to quietly give up market share or mind share to these newer entrants.

One of the interesting challenges that ‘digital advice’ products such as robo-advisors face in the Canadian investment landscape is carving out enough of a presence to make them a profitable and sustainable enterprise. As yet, there hasn’t been a vicious price war among robo-advisors but that may soon change thanks to recent moves by Canadian online brokerages.

On the DIY investor side of the spectrum, there are now at least four Canadian discount brokerages (or their parent brands) who’ve deployed some kind of digital advice/robo-advisory service. These providers (and their services) include:

  • BMO Wealth Management (with BMO SmartFolio)
  • National Bank Direct Brokerage (Investcube)
  • Questrade Wealth Management (Portfolio IQ)
  • Qtrade Securities (Virtual Wealth)

No stranger to competition, the brokerage-associated robo-advisors have gone on the offensive launching promotional offers to draw investor attention. Specifically, this month NBDB’s Investcube launched a cash back offer and BMO SmartFolio’s launched a no advisor fee introductory management offer, both of which will rattle the cages of more than a few Canadian robo-advisors.

Starting first with BMO SmartFolio, there is now a promotional offer for new clients which enables the first $15,000 of assets to be managed with no fee – specifically no advisory fees, for up to one year (until the end of September 2018). For amounts over $15,000 the regular advisory fee schedule rates apply. Currently there aren’t that many similar types of fee waiver promotions for deposits of that size. Interestingly, this asset level appears to appeal to beginner investors or to those who are curious about the SmartFolio experience.

[*disclosure note: SparxTrading.com has a referral program in place with BMO SmartFolio and may receive compensation for individuals opening a SmartFolio account with code STSF and/or clicking through to the SmartFolio website]

For National Bank Direct Brokerage, the Investcube product isn’t a typical robo-advisory although it often is described as such. Nonetheless, the automatic rebalancing features and ‘hands off’ appeal to investors put Investcube’s pre-built portfolios up against those of the more recent robo-advisors. Earlier this month, NBDB launched a tiered-cash back promotion that offered between $50 and $600 for new and existing account holders.

It will be interesting to monitor the online brokerage space as a whole to see a) whether the other online brokerages who offer robo-advisory services also start offering more aggressive promotions and b) if other Canadian discount brokerages (or their parent brands) also start deploying robo-advisors. Of course, in researching the field of Canadian robo-advisors and their current promotions, it looks like these online brokerage affiliated offers from BMO SmartFolio and Investcube are also going to start shaking the tree at the robo-advisors to step up with something better.

A tale of two tweets

VB Twitter gets a reboot

After a number of months of relative quiet from Virtual Brokers on social media, the Virtual Brokers Twitter account appears to have come back to life with tweet activity picking up over the past few days.

While it is still early, this uptick in activity coincides with addition of bandwidth in the client service arena. Specifically, Virtual Brokers recently added resources to their phone service by opening a call centre in Montreal.

As any longtime reader of the weekly roundup will note, however, the presence of a Twitter account also opens up a service channel directly with an online brokerage.

In the past few months, Virtual Brokers has been receiving tweets and responding, albeit after a longer period of time than what the channel typically demands. So, to see not only customer service tweets but also a ‘general interest’ topical tweet emerge from the VB Twitter account is a sign that perhaps additional resource has been allocated here as well.

While being on Twitter is not without its growing pains, a reboot is still better than radio silence. From a strategy point of view, it will be interesting to see what kind of content will be coming from VB and the kind of traffic/response it receives as a customer service channel as more DIY investors (and VB clients) also start to take note of the uptick in activity.

Scotia iTRADE gets insta-famous

Earlier this week, Scotia iTRADE held a promo to drive traffic into their investor centre in downtown Toronto. Instead of coffee or ice cream, this time it was popcorn and SCENE points. Specifically, Scotia iTRADE appeared to be offering up 2000 SCENE Points (which could land two general admission movie tickets) for a $5,000 deposit. This offer is open until June 15, 2017.

As good as the popcorn may sound, however, it should be noted that at the deposit level of $5,000, there may be a quarterly fee of $25 that applies (the $25 per quarter fee is waived if, among other conditions, there’s at least $10,000 in aggregate account value) as well as standard commission rates of $24.99 per trade which are worth considering. The minimum account balance to receive the better trading commission rate of $9.99 per trade is $50,000.

If SCENE points are your thing, there is an existing offer which starts at deposits of $25,000 and can provide 50 free trades and considerably more SCENE points.

Once again, Scotia iTRADE is taking advantage of its parent Scotiabank’s association with the SCENE points program to be able to offer up this ‘free movie’ perk for signing up for an online brokerage account.

In addition to the promotion itself, there were also two other interesting observations. First, the deposit level for opening an account and qualifying for a promotion had been lowered to $5,000 – which is significantly lower than their current (or usual) set of offers. Perhaps this lower hurdle for an offer might be a signal of a coming shift in either the pricing or requirements to hold a Scotia iTRADE account.

The second observation of interest was that, unlike some previous campaigns, there wasn’t any uptake of this event on Twitter (at least under the hashtags associated with iTRADE or this promotion). There was, however, some visibility on Instagram by an iTRADE marketing manager which showcased members of the iTRADE team in action.

In terms of keeping up on social media, perhaps this is also a signal that branching out into yet another social channel is necessary to get exposure and engagement that isn’t happening on Twitter.

Discount Brokerage Tweets of the Week

The markets weren’t the only places where volatility could be found – DIY investors also had some volatile comments of their own for a few brokerages this week. Mentioned on Twitter were Questrade, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Wealthsimple gets Bigly

If you’re wondering if robo-advisors have struck a chord with the Canadian investor community, especially the millennial crowd, look no further than this post from the reddit Personal Finance Canada subreddit. While the Canadian Prime Minister and robo-advisors are lightning rods independent of one another on most days, when they combine, there was an undeniable reaction.

Saving for School

For one iTRADE customer, saving for their children’s education was top of mind in this post from RedFlagDeals’ investing forum. Find out what one user learned when asking how to set up a family RESP with Scotia iTRADE.

Into the Close

T.G.I.F. The long weekend is finally here and although it could end up feeling much longer if you happen to watch any news, the ‘good news’ is that the weather in most of the country makes it much easier to peel away from a screen and enjoy the outdoors (or stick to a screen and cheer for the Sens!). A reminder that Canadian markets will be closed on Monday for Victoria Day, not that that will stop the die hard traders from looking at the US markets for trading opportunities or a cue on how to kick-off on Tuesday. Have a safe and enjoyable long weekend!

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Discount Brokerage Weekly Roundup – May 12, 2017

While savvy investors and traders enjoy the ‘boring’ trades, in these markets, the truth is that nothing is quite so boring. For now, stock markets are moving on earnings – which is a good sign – however there appears to be a little extra uncertainty thrown into the mix, which for better or worse, makes things exciting to have to trade around. For mainstream investors, it seems that rather than try to pick off individual success stories, another product, ETFs, are continuing to be the ‘boring’ trade with some exciting results for those who run them and the online brokerages that facilitate the trading of these.

In this week’s roundup, we take a look at some interesting and interrelated developments in the world of investor education and ETFs that could be an area where Canadian online brokerages look to battle it out next. From there, we profile what the hiring decision of one online brokerage might mean for the Canadian landscape, especially out west. As always, we’ll serve up the latest DIY investor tweets and a pair of interesting forum posts to see what Canadian investors are talking about.

When a webinar is more than a webinar

One of those bigger trends among the online brokerages is the shift to digital content, in particular, with investor education. While the shift from seminars to webinars is nothing new in this space, what is noteworthy is the uptick in investor education content that one bank-owned brokerage, CIBC Investor’s Edge, has been deploying via webinar.

In late March, there was a webinar by Jamie Golombek that discussed some of the implications of the latest Canadian Federal budget and this past week, we noted an announcement for a webinar on ETFs presented by David Barber or First Asset. While two points a trend does not make, it did signal that something is stirring at CIBC Investor’s Edge.

Source: Screenshot of CIBC Investor’s Edge Website

A handful of brokerages, notably Desjardins Online Brokerage, National Bank Direct Brokerage, TD Direct Investing and Scotia iTRADE, have structured, regular and ongoing investor education webinars and seminars. The recent uptick in CIBC Investor’s Edge’s webinar schedule may signal a more concerted effort to deliver DIY investor educational content or it may resemble the approach taken by brokerages such as Credential Direct or Virtual Brokers where webinars are held intermittently during the year. Either way, both the timing and the topic are an interesting choice given what other online brokerages are delivering in terms of ETF-related content.

In May, TD Direct Investing is planning a pair of webinars on ETFs and Desjardins Online Brokerage has introduced a webinar showcasing the latest Desjardins-branded ETFs.  By comparison, National Bank Direct Brokerage also includes a regular webinar on the basics of ETFs and are running their latest promotional sponsorship of the Horizon’s ETF ‘Biggest Winner’ competition with, you guessed it, ETFs at the core of the contest structure.

There’s very little doubt that ETFs have become very popular with investors – this past week for example, ETFGI, a research group that tracks the ETF ecosystem, reported that more than $4T USD (yes trillion) is invested in exchange traded funds/products globally. In Canada, figures from the latest CETFA report (data to April 30, 2017) show a total of $126.2B in assets under management across 22 ETF providers and 495 funds.

Source: Screenshot of CETFA report

One of the interesting observations of the Canadian data is the remarkable growth over the last year of assets at players both big and small. Some noteworthy names for the DIY investor space include BMO Asset Management (45.4% y/y), Questrade Wealth Management (+58.9% y/y), RBC Global Asset Management (65.1% y/y) and TD Asset Management (173.7% y/y).

What has not grown as quickly, however, has been the content from Canadian online brokerages for DIY investors on understanding and navigating the ever-expanding world of ETFs.  To be fair, the ETF providers themselves do provide quite a bit of educational content (usually about their specific types of funds) and often partner with online brokerages to deliver the content to the online brokerages’ clients. With 495 Canadian funds in play and well over 6,000 internationally, picking and choosing ETFs is starting to rival picking individual stocks in complexity and choice – especially for the DIY investor.

With a new webinar from CIBC Investor’s Edge on its way as well as webinars about ETFs from several online brokerages who are active with investor education, the race to provide quality investor-focused educational content on ETFs appears poised to heat up during the next few months. Already the commission-pricing for ETF trading/investing has become a focal point for DIY investors, so the combination of continued retail investor interest and increasing competition (both among ETF providers and online brokerages) could result in some very interesting maneuvers by Canadian discount brokerages and some very creative tools and services for DIY investors.

Deal  Extension

It’s always a good sign to see deals come to market and to have them extended. Qtrade Investor has extended their transfer fee promotion for about a month with the new deadline being June 12th. This offer lowers the minimum deposit amount to qualify for a transfer out fee coverage (typically $150) from $25,000 to $10,000. For more details on the latest deals/promotions from Canadian discount brokerages, check our current deals section here.

Interactive Brokers looking to Vancouver for Customer Service Centre

Even though the Canadian online brokerage space is a dynamic one – especially when it comes to staffing and turnover, there are the occasional developments that provide an interesting window into the inner workings of these largely private organizations.

One of the interesting pieces of information that recently crossed our radar was a post for a job opportunity from Interactive Brokers Canada. Specifically, the post was for a customer service representative for a brand-new office located in Vancouver, BC. The significance of this last sentence is threefold.

 

Source: Screenshot from Interactive Brokers’ website

 

First, it appears that Interactive Brokers Canada is expanding beyond its headquarters in downtown Montreal. While several brokerages have a footprint in BC, many do not, so for Interactive Brokers to open an office in Vancouver (even if it may be largely a call-center) is a signal that they’re pushing to serve Western Canada and potentially areas further afield.

The second interesting aspect of this position is the language requirement, specifically that applicants need to have fluency in Mandarin as well as English. This additional language requirement is in line with other reported news of Interactive Brokers growing its account base in Asian markets. Whether these reps would be servicing exclusively Canadian clients or international clients is unknown, however the region (i.e. along the Pacific) and skillset of these prospective employees suggests Interactive Brokers Canada may be building infrastructure for strategically important demographic of user and doing so at a fraction of the cost it would require for the same operation in the US (think currency advantage).

Finally, with the introduction of the TFSA and RSP accounts, Interactive Brokers has opened itself up to dealing with many more client service-related inquiries (in addition to the traditional trading account queries). Bolstering their client support infrastructure (especially their call centre) means that in addition to providing low commission pricing, Interactive Brokers is also paying attention to customer support.

Discount Brokerage Tweets of the Week

A relatively quiet week for most brokerages on Twitter, nonetheless there were more jeers than cheers. Mentioned this week were CIBC Investor’s Edge, Questrade, Scotia iTRADE and TD Direct Investing.

From the Forums

A propos

Sometimes the timing just works out. This post from the Personal Finance Canada thread on reddit is a great example of the kinds of scenarios that beginner DIY investors find themselves in when trying to navigate the world of ETFs & online brokerages for the first time.

Itch to Switch

One of the most consistent reasons DIY investors think of switching online brokerages is because of the fees they’re paying. In this post on reddit’s Personal Finance Canada subreddit, one user expresses their frustration at the fees paid by their spouse and is looking for a better deal.

Into the Close

That’s a wrap on another wild and crazy week. And, it seems fitting that this weekend should be a time to thank mom’s everywhere for putting up with us during our crazy toddler/teenage (and adult) years – so thanks mom for being awesome and to mom’s everywhere for all of the wonderful things you do!

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Discount Brokerage Weekly Roundup – May 5, 2017

Not sure if May got the memo, but it was April that was supposed to get the showers. For many traders, however, this is the month when many of them will be looking to exit the market according to the saying: ‘Sell in May and go away’. While things don’t always go to plan, Canada’s discount brokerages are hoping that nobody rains on their parade, especially with the launch of their summer campaigns on the horizon.

In this week’s roundup we review the latest discount brokerage deals & promotions, including where to find out about a special offer being launched by SparxTrading.com in the coming weeks. From there we look at the latest trading stats from one US online brokerage and how the no-commission trading pricing could reshape the way online brokers operate. Following that story is the profile of a Canadian independent discount brokerage who was recognized for keeping their people happy and motivated. As always, we’ll close out the roundup with a summary of DIY investor tweets as well as a selection of DIY investor forum posts.

Let’s May a Deal

Now that spring has sprung, the weather isn’t the only thing changing. With RRSP season and income tax season now officially over, interest in online brokerages will start to wane until the fall, so Canadian brokerages will start to have to get a little creative to get the attention of DIY investors over the next few months.

With so much happening in the news, it seems that this year investors who are in the markets will be keeping a closer eye on their portfolios in case, you know, nuclear war breaks out. Aside from that unpleasant reality, it appears that Canadian online brokerages are hoping that some creative promotional offers will be good enough to get the attention of the folks who are in the market for an online trading account.

At the start of this month, Scotia iTRADE and National Bank Direct Brokerage were the only two brokerages to advertise new offers for DIY investors. Desjardins Online Brokerage also made headlines in the deals section by extending their existing offer out through the end of June.

In the case of iTRADE, there’s a promotion linked to the SCENE points program where new account registrants to Scotia iTRADE can receive 25 commission free trades plus between either 5,000 and 100,000 SCENE points (depending on deposit levels). The SCENE points can then be redeemed either for free movies or with partner restaurants or retailers where SCENE points are accepted.

Whether the points offer moves the needle with DIY investors is debatable (i.e. are movies really that valuable?) however the fact that there is a promotion and that people might pay attention to the deal might make it worthwhile campaign.

Another offer in the Canadian discount brokerage space comes in the form of a fantasy stock (ETF) picking competition from National Bank Direct Brokerage and Horizons ETFs.

With NBDB being the only Canadian online brokerage to allow commission-free trading on Canadian ETF buys and sells, ETF investors and those who want to learn about investing using ETFs, would find the competition (and the possibility of winning up to $7,500 cash) appealing.

For DIY investors, it appears competition between discount brokerages is still healthy.

There are still at least 23 advertised offers, and based on a number of in-person conversations with Canadian online brokerages, there are several deals and offers in the pipeline – with some being planned for later in May.

Of course, we saved the best news for last. This month, SparxTrading.com will also be launching a special promotional offer for DIY investors that will be sure to get quite a bit of attention. Be sure to stay tuned as we’ll be dropping the news on our Twitter feed first.

Interactive Brokers in a Squeeze

With the rollover into a new month, Interactive Brokers has once again published their trading metrics and provided a unique window into the landscape of online trading.

As we had reported in a previous edition of the weekly roundup, there are some interesting storm clouds brewing in the online brokerage space in the US that make looking at these stats important – especially because they might offer some insights into what may happen in Canada.

To recap, there appears to be a price war in the US online brokerage market in which major players such as Schwab, TD Ameritrade and E*Trade Financial have all drastically cut commission prices. Interactive Brokers, by comparison, reported an average equity commission per trade of about $2.30 and thus has yet to follow suit with some of their competitors.

It is against that backdrop that there are several noteworthy observations about Interactive Brokers’ stats.

First, since Interactive Brokers releases their full set of trading metrics dating back to 2008, it is very interesting to note that they continue to grow their account base. From the start of reporting in January of 2008 to the most recent set of results, accounts at Interactive Brokers have climbed from 97.2 thousand to 410.8 thousand. For those keeping score at home, IB’s accounts have grown four-fold in about nine years. Curiously, however, the crucial metric for online brokerages – Daily Average Revenue Trades (DARTs) – has not grown at the same pace. In 2008, the cleared average DART per Account was  774; in 2017 the YTD average is 382, which is slightly less than half the average in 2008. Granted, 2008 and 2009 were crazy years for volatility and trading, however, it is a curious observation that despite the growth in accounts, trading has not followed suit.

Another interesting stat to compare this against comes from online brokerage Robinhood. Specifically, the growth chart recently reported on their blog which shows that they’ve grown from no accounts in 2015 to over 2 million in 2017 and are now valued at about $1.3B (USD).

Source: Robinhood.com blog screenshot

Robinhood has been increasing its feature set to cater to more active investors (including those that would use margin).

A third interesting development from the past week was the spike in E*Trade Financial’s share price on the whispers that there may be a buyer. Without speculating on who that might be, it is interesting because E*Trade is also caught between its identity as an online brokerage firm that caters well to active traders and one that can service the client base being sought after by TD Ameritrade, Schwab and even Robinhood.

What does this all mean?

What these data points suggest is that Interactive Brokers, which has typically been branded as the ‘active trader’ brokerage of choice, has either been bringing on clients who don’t trade as much as some of their earlier clients have, or if there are active traders in the mix, there hasn’t been the volatility around to get traders really excited. Likely it’s a mixture of both, especially since Interactive Brokers has made the decision to shutter its market making division because it’s been losing money.

Going after a less active trader, however, means competing with upstarts, like Robinhood, who’ve been crushing it from an account growth point of view, as well as going up against bigger players, some of whom are also prepared to go to zero commissions and would still be profitable.

At first blush, Interactive Brokers’ continued account growth, growth in assets and increasing margin balances are good signs. The fact that the active trading segment appears to be stalling, however, reinforces that active traders are hard to come by and are being sought by all sides. In trying to add accounts by bringing on less active traders, Interactive Brokers is moving into a very crowded space, so it will be interesting to see how their metrics, particularly the account growth, behaves with deeper value alternatives now becoming more prominent.

Questrade wins best managed company award

One of the interesting things about a recent visit to the Questrade offices in Toronto is not only the level of security in their offices, but also to see how much they’ve grown and continue to evolve.

Despite the addition of the size of their team, there is something different about Questrade than at the bank-owned brokerages, namely that at Questrade there are lots of ‘younger’ folks on staff.

While it may not seem consequential, it might help to explain how, unlike some of their peers, Questrade has a very pronounced presence on social media – especially on Twitter and in forums. To their credit, there’s a certain authenticity (aka street cred) to the culture of being able to connect with younger investors because so many of their own team would fit the mold of a typical client.

Recently Questrade received (yet again) an award for being a well-managed company. Part of the online brokerage (and financial services) experience entails knowing that who you’re dealing with is doing something right in the people department.

Here’s a video from the President & CEO of Questrade, Edward Kholodenko, which sheds some light on life at Questrade.

It was a rough week for a couple of online brokerages who caught more than a little flak for some technical outages. Of course there were plenty of customer service sirens going off all around. Mentioned this week were CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

 

From the Forums

Insight Scoop

With deals and promotions being a feature of this week’s roundup, we found this post from RedFlagDeals’ investing forum to be interesting. Specifically, it looks at one user’s experience in trying to see if the current BMO InvestorLine deal is a good fit.

Trading Places

There’s usually someone in the forums looking for a little help in understanding the transfer process from one brokerage to another. In this post from reddit’s Personal Finance Canada section, the original poster wanted to know about the process of moving into Questrade from Disnat. It’s an interesting story because 1) it’s not a move you hear about every day 2) it got a few very insightful reactions from some readers 3) it is another example of where Questrade and Qtrade get mistaken for the same brokerage and 4) Disnat’s parent – Desjardins Online Brokerage – purchased Qtrade Investor, so possibility that things could end up going full circle was mildly amusing (at least for the bystanders – and since it wasn’t to Qtrade but to Questrade not actually a case that the original poster would encounter, but someone actually might).

Into the Close

It’s Friday – otherwise known as the day of the week on which all of the crazy, potentially life changing news gets announced.  It’ll be a good weekend to stay indoors and enjoy thinking of being in a galaxy far, far away (where it doesn’t rain so much). Have a great weekend!

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Discount Brokerage Deals & Promotions – May 1, 2017

*Updated: May 19* Now that spring is in full swing, it looks like the deals and promotions section is getting a little spring cleaning of its own. Like the big puffy Canada Goose jackets, there are a number of deals that are getting shelved for the season (or perhaps for good), however there are some exciting new developments to share as well, so you’ll probably want to have a gander.

With the tail end of spring typically slowing down a notch, it appears that brokerages are getting a bit more creative with the offers in play. In addition to the standard cash-back or free trade promotions, there is also an ETF trading contest (with a real cash prize) from National Bank Direct Brokerage as well as a promotion from Scotia iTRADE linked to movie or dining out points. In addition, the offer from Desjardins Online Brokerage, which was scheduled to expire at the end of April, has been extended through to the end of June.

The good news for DIY investors looking for an online trading account is that there is still lots of selection.

The deals and promotions section currently has 23 advertised offers for DIY investors, and with activity already being telegraphed to start the month off, it’s a good sign that brokerages are still interested in competing for new business. A recent edition of the Weekly Roundup pointed out the competition for assets between US online brokerages is heating up, something that may shape how things play out here in Canada as both banks and brokerages will be racing to gather assets.

Also adding some intrigue into the deals and promotions space is the announcement by Desjardins to fully acquire Qtrade Investor, and what that might mean for the space as a whole.

Another new change readers will note is the appearance of Sparx-branded codes in the current BMO InvestorLine offer. Specifically, users can input the code SPARXCASH or SPARXTRADES when signing up for the current BMO InvestorLine promotion. For full transparency, SparxTrading.com will receive a referral payment from BMO for anyone using these codes to open an account.

We’ve also got another offer in the works so check back for updates to our selection of referral offers soon.

As always if there are any offers that we’ve missed and that would be valuable to share with our readers, please let us know in the comments below.

Expired deals

Virtual Brokers was the most active in terms of deal turnover heading into May. They saw three offers (RSP cash back bonus, 2 months free trading bonus, apple gift card draw) expire officially at the time of publication. While it’s no guarantee, recent history has shown Virtual Brokers to come back to the market with an offer a short time after the expiration of another, so stay tuned.

Extended Deals

*Update: May 19 – Qtrade Investor has extended their commission transfer offer to mid-June. See table below for more information.*

Desjardins Online Brokerage’s popular 1% commission rebate offer has been extended until the end of June. Previously scheduled to expire at the end of April, this offer provides up to $1150 in value back to clients (maximum commission credit based on amount transferred is $1000 plus $150 in transfer fees).

New Deals

Scotia iTRADE’s  latest offer was originally telegraphed in the most recent edition of the Weekly Roundup and features a combination of 50 commission free trades plus SCENE points which are good for use either at Cineplex theatres or with partner restaurants or retail outlets. The minimum deposit to qualify for this offer is $25,000 and the highest tier, $1M+ in deposits, lands the highest amount of SCENE points (100,000), which is good for the equivalent of 100 free movies. Commission-free trades are also good for up to 90 days. Read the table below for more information.

National Bank Direct Brokerage is sponsoring the Horizons ETF Biggest Winner contest. This contest enables participants to compete for cash prizes, which are awarded weekly and at the conclusion of the competition. Contestants trade Canadian ETFs to see who can achieve the best performance over the duration of the competition, which runs from May 8th through to June 16th 2017.

Discount Brokerage Deals

  1. Cash Back/Free Trade/Product Offer Promotions
  2. Referral Promotions
  3. Transfer Fee Promotions
  4. Contests & Other Offers

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2017
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatFlex or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo June 30, 2017
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, with at least A) $100,000 or B) $250,000+ in net new assets and you may be eligible to receive A) $200 cash back or 20 commission-free trades; B) $1,000 cash back or 100 commission-free trades. Use promo code SPARXCASH when signing up for cash back offer or SPARXTRADES to be eligible for commission-free equity trade offer. Be sure to read the terms and conditions for more details on the offer. A) $100,000 – $249,999 B) $249,999+ A) Cash back: $200 OR 20 commission-free trades B) Cash back: $1,000 OR 100 commission-free trades. Cash back will be deposited the week of January 8, 2018. Commission-free equity trades are eligible for use up to August 6, 2017. Cash back or Free trade offer June 5, 2017
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1,000,000+ and you may be eligible to receive A) 5,000; B) 7,500; C) 20,000; D) 35,000; E) 50,000 or F) 100,000 scene points as well as 50 free trades. In addition, new clients will also be reimbursed up to $150 in transfer fees. Free trades will be valid for 90 days. Use promo code 17SC when signing up to be eligible. Be sure to read terms and conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) 1,000,000+ SCENE Points A) 5,000 B) 7,500 C) 20,000 D) 35,000 E) 50,000 F) 100,000 + 50 Free Trades 90 days Free Movie & Free Trade Promotion July 31, 2017

Expired Offers
Last Updated: May 1, 2017 13:00 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $50,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period(subject to conditions). BMO InvestorLine Refer-a-Friend June 30, 2017

Expired Offers
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit 30 days none none
Last Updated: May 1, 2017 13:00 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $20,000 Transfer Fee Rebate none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Transfer $10,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $10,000 Transfer Fee Rebate June 14, 2017
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo tbd
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code DisnatFlex. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo June 30, 2017

Expired Offers
Last Updated: May 19, 2017 14:00 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Credential Direct has partnered with Trend Micro to offer 50% off Trend Micro Titanium Internet Security. Use code “TrendCF” at checkout. n/a Trend Micro Special Offer Code none
Disnat Desjardins Online Brokerage, in conjunction with MoneyTalks, is offering 3 months of the “Inside Edge” investor information service to Desjardins Online Brokerage clients. Use promo code DESJ2016 during checkout to qualify. Be sure to read full terms and conditions for more information. n/a MoneyTalks Inside Edge Discount none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none
Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) or $5,000 (for the Commission Free Trading Account) and you may be eligible to receive a one-year subscription to access 5i Research. Use promo code 5iVB2016 when signing up. Be sure to read terms and conditions for full details. $1,000 (Classic Commission Account); $5,000 (Commission Free Trading Account) 5i Research Offer March 31, 2017

Expired Offers
Last Updated: May 1, 2017 13:00 PT

 

 

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Discount Brokerage Weekly Roundup – April 28, 2017

This week, NAFTA was causing all kinds of nausea for media, government and economists who were trying to figure out exactly what was happening with this long standing free-trade deal. While not a multinational economic agreement, Canadian discount brokerages are looking to their own free-trade deals as a way to generate interest and enthusiasm across the nation of DIY investors.

In this week’s roundup, we look at the latest promotions to hit our radar, both of which are from bank-owned online brokerages. From there, we take a look at the parent company of one brokerage that may be looking to go on a bit of a buying spree and potentially change the Canadian discount brokerage landscape in the near future. Of course, what would a roundup be without the tweets of the week? We’ll serve those up alongside the investor chatter on the forums.

Play Date

The 7th edition of the Horizon’s ETF ‘Biggest Winner’ competition is back and, once again, is being sponsored by National Bank Direct Brokerage.

This popular annual competition, which kicks off on May 8th,  comes at a time in the financial markets where activity and uncertainty have picked up. For contestants, this means that there are bound to be a handful of exciting trading days – especially if it’s fantasy money on the line.

The prizes for this contest, however, are not make believe and include:

  • $7500 cash for the grand prize
  • $2500 for the runner up
  • 6 weekly prizes of $500

As this competition is restricted to only Canadian ETFs, the ultra ultra leveraged ETFs in the US will not be available to trade here. That said, one of the more interesting names in the game is likely to be the recently launched HMMJ, a long-awaited ETF that includes companies in the marijuana space.

Fantasy stock market games, such as this one, are fun ways to follow and learn about markets. In this case, the name of the game is to get the best performance using only Canadian ETFs.

For contest sponsor National Bank Direct Brokerage, the branding win is clear. They are the only Canadian discount brokerage to offer fully commission-free buying and selling of all Canadian ETFs (not just the Horizons family of funds).

As and when this competition goes live, there’s likely to be more attention directed to the National Bank Direct Brokerage brand and their commission-free ETF offer. Although the summer months are typically quieter than the rest of the year, if there’s one thing that’ll get the attention of investors and traders everywhere, it’s a cash prize. For more information on the contest, click here.

Free Trades & a Show?

Another creative offer for DIY investors also just crossed our radar this week, this time from Scotia iTRADE.

Their latest promo is a combination of free trades and, for the cinephiles, free movies. The headline offer (which is typically available to the highest deposit tier in the offer) is 100 free movie admissions.

The catch? It’s not available until May 1st 2017.

Drilling down into the promotion, there are 6 tiers of deposit which range from a minimum of $25,000 all the way to $1,000,000+. For each of those tiers, eligible new clients will receive 50 trades plus the associated number of scene points. At the minimum deposit tier, in addition to free trades, there are 5,000 scene points up for grabs, which translates into either 5 movies or a $50 credit at dining or sporting wear retailers (in case being inside during the summer is not your thing).

Two things stand out as interesting about this promotion. First, Scotia iTRADE is once again reaching into its toolbox to leverage scene points / free movies incentives. There have been a handful of times when Scotia iTRADE has run a cross promotion with the free movie incentive (including one of the more memorable ones where visitors to the Toronto iTRADE had to take selfies) but the fact that they can do that gives them a unique promotional edge.

Screenshot of Scotia iTRADE’s latest promo offer (source: Scotia iTRADE website)

The Scotiabank tie-in with the Cineplex Scene points program means that Scotia iTRADE can offer something that other Canadian brokerages don’t.

A second interesting aspect of this promotion is that it is being telegraphed publicly before the deal actually goes live. This is an unusual step, something typically seen in contests not free trade offers.

As we head into the summer blockbuster season, a world awash in Netflix content (oh and don’t forget Game of Thrones) and good weather generally, it will be interesting to track if DIY investors prefer the indoor scene or the outdoor scenery.

Desjardins Getting Ready to go Shopping

Some people love the thrill of shopping, some people loathe it. Desjardins Online Brokerage’s parent Desjardins Financial, however, appears to be in a spending mood.

This week, the CEO of Desjardins Group (Guy Cormier) mentioned in an interview on Bloomberg Canada that Desjardins is looking to expand its reach outside of Quebec, stating that “Desjardins is open for business.”

Aside from the very encouraging sound bite, the article went on to specify that Desjardins would be particularly interested in insurance providers, as well as looking to take on full ownership of Qtrade Investor, the Vancouver-based brokerage that they bought a 40% stake in in 2013. Desjardins’s desire to be “more aggressive and have a stronger presence outside Quebec on wealth management” means that after firming up full ownership, there will likely be a very interesting transition in the Canadian online brokerage landscape.

Whether Qtrade Investor remains an independent brand or gets merged into either the long-standing DISNAT or more recent Desjardins Online Brokerage is an open question – one that will need to weigh the many years of Globe and Mail online brokerage ranking wins and other achievements against the desire to work under a united banner. From a look and feel perspective, there are some similarities, but there are some very clear design and branding differences.

How this all unfolds is going to be interesting to say the least. With other independent brokerages, or bank-owned brokerages that don’t necessarily want to continue an increasingly costly business unit, the time might be ripe for some consolidation or M&A activity of some of the players on the field.

Discount Brokerage Tweets of the Week

Spring may have sprung, but there are plenty of storms that blew through social media this week. Mentioned are BMO InvestorLine, Questrade, Scotia iTRADE, TD Direct Investing, and Virtual Brokers.

From the Forums

Pool Sharks

The mechanics of trade execution are details that only very few individuals can truly claim to understand. Even after a reading of Flash Boys, the intricacy and complexity of the transaction system is mind boggling. So, where exactly does an order go and are investors getting the ‘best’ price available? It was this set of questions from one investor that had sparked a conversation in this post on the Canadian Money Forum – definitely worth a read.

Tuning In

Something, or rather someone, very interesting was spotted in the DIY investor forums this week – BMO InvestorLine. In this post on RedFlagDeals.com’s investing forum, one unhappy user asked the community of readers for a suggestion for an online brokerage. The answers themselves were all quite interesting however seeing that a ‘verified’ BMO InvestorLine responded. This appears not to be a one off as there’ve been at least three other posts to date.

Into the Close

Some folks look at the weekend as a time to relax while the current leaders of two nuclear armed countries appear to relish Friday’s for some old-fashioned high stakes shouting. While that’s kind of an odd note to sound off on, perhaps the video below offers some hope that people can resolve their differences amicably and that beer commercials may be able to save the world. Enjoy the weekend!

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Discount Brokerage Weekly Roundup – April 21, 2017

There’s been lots of sabre rattling in the news recently. While the world is facing specter of war, online brokerages in the US are already in the throes of their own price war. For Canada’s discount brokerages, the storm clouds are still off in the distance but as their counterparts in the US have shown, that could change quite quickly. Of course, it’s not all doom and gloom, and sometimes competition can make winners of us all.

This week’s roundup is the tale of two stories. The first is an epic battle shaping up in the US online brokerage space that highlights just how big the stakes are for winning the war for DIY investing and how that could easily spill over to Canada. The second is the latest chapter in the story of sustainable investing and how one Canadian brokerage’s efforts to bring this to DIY investors might be a catalyst for other brokerages to follow suit. Of course, we have the usual feature of DIY investor chatter on Twitter and from the investing forums.

The Price is Right

With Q1 of 2017 now officially in the books, the details of a sudden commission price drop and the scramble that brokerages had to undertake to meet this new pricing reality have emerged. Specifically, the earnings conference calls from E*Trade Financial, TD Ameritrade and Interactive Brokers from this past week provide a fascinating look at the aftermath of the pricing cuts announced in February and March and how executives at online brokerages are bracing themselves for a potentially massive price war.

Now, there are lots of intriguing details in this most recent set of earnings conference calls, more than we can cover off in a single roundup, however what might be instructive to Canadian DIY investors and Canadian discount brokerages is the fact that prices definitely have room to fall and brokerages should probably prepare for that.

One of the most fascinating scenarios acknowledged by both TD Ameritrade’s CEO Tim Hockey and Interactive Brokers’ founder and CEO, Thomas Peterffy, is that it is possible for major US online brokerages today to be charging nothing on commissions and still be profitable.

While upstart online brokerage Robinhood has shown that it doesn’t take charging commissions for trades to be a success, it is an entirely different matter when the largest online brokerages in the US are contemplating the “nuclear option” for commission pricing.

In the case of TD Ameritrade, Tim Hockey stated the following:

“First of all, the good news is that even if commission rates went to zero tomorrow, we’d still be profitable….So, we reached that critical mass size where we’re fully able to work with the competition in terms of the price structure that seems to make sense.”

Loosely translated, this is a clear signal that TD Ameritrade wouldn’t be afraid to throw the first punch or throw down entirely with other online brokerages, big or small, that would like to lower trading commission pricing.

Interestingly, CEO of Interactive Brokers, Thomas Peterffy, also weighed in on the commission price drops with guarded optimism.

Commission pricing for Interactive Brokers is far below that of its US online brokerage competitors and the latest earnings results show that Interactive Brokers is crushing it when it comes to operating margins, earnings and other metrics. In short, there’s a long way that commission prices at the major US online brokerages would have to fall before Interactive Brokers would feel ‘threatened’ and be forced to react with a pricing change.

With that in mind, what Peterffy said that was so striking was:

“if they really were to cut the commissions to 0 as Schwab, for example, could easily do, I think we would have to go out and explain in advertisements more thoroughly as to what is going on here behind the scenes. Because interestingly enough, they advertise that their commissions now are $4.65 a trade, but you see that their commissions are more like $8 or $9 a trade. So it’s hard to figure what’s happening.”

In effect, Peterffy and Hockey are signaling that the largest players in the US online brokerage industry could take commission pricing to zero even today and still emerge standing. Of course, another interesting thing Peterffy disclosed in his statement is that Interactive Brokers would not take such price drops lying down. In fact, throughout the conference call transcripts as well as in recent investor calls, it is clear that Interactive Brokers is not a brokerage that moves slowly or without purpose.

Interactive Brokers and TD Ameritrade aren’t alone in their call to arms. Of the three brokerages’ conference calls that recently took place, E*Trade Financial’s stood out as having the most pointed ‘fighting words’ and with good reason. According to CEO Karl Roessner, “there is a lot of competition out in the marketplace and a lot of offers, unlike things that we’ve seen in the past, we continue to do what we’re doing to make sure we keep our customers and defend the book.”

In fact, it appears that E*Trade is in full ‘transformation’ mode, mobilizing across a number of different facets of their business to compete even more aggressively in the US online brokerage space. Lacking the scale of either Schwab or Ameritrade, E*Trade is shifting the tone of their brand identity by going ‘back to their roots’. They’ve put a target on the active trader segment and appear to be ready to fight tooth and nail to protect their clients from leaving and win over this highly prized segment from the other brokerages.

While there are no publicly traded online brokerages in Canada that would disclose the level of information that these US brokerage CEO’s have shared, the example of what is happening could be highly instructive for Canadian online brokerages.

Yes, the Canadian market is smaller, moves more slowly than the US and just doesn’t have the same kind of marketing firepower at its disposal that the US online brokerages mentioned above do (TD Ameritrade’s annual marketing budget is $250M US, likely a multiple higher than all the marketing budgets of Canadian discount brokerages combined), but the message is clear: in order to win, you have to grow assets.

All of the US online brokerages are confronting the very real scenario of zero commission trading. For Canadian brokerages, however, the storm clouds are on the horizon. The question on this side of the border now becomes: which of Canada’s brokerages will marshal the resources and marketing efforts required to start gathering assets soon enough?

Environmental Scan

With Earth Day just around the corner, the folks at Scotia iTRADE continued their online push of sustainable investing with a Twitter chat, hosted by Canadian personal finance blogger Tom Drake and featuring a number of other online personal finance and sustainable investing voices.

Lasting just about an hour, the Friday afternoon chat was part marketing, part awareness building of sustainable investing. Naturally, Scotia iTRADE being the organizer of the chat had the messaging and branding locked down and put together a very polished campaign to generate interest and engagement in their latest new product offering.

What was particularly interesting, however, is the number of personal finance/independent investing voices that were also involved as well as the amount of social media (specifically Twitter) coverage that the iTRADE ESG (standing for Environmental, Sustainability and Governance) tool received. Since we first reported the launch of this new feature several weeks ago, we’ve seen steady coverage online of this new investing tool.

Clearly, there’s a well-coordinated effort at work to ensure that people are finding out about this new tool and kudos to the Scotia iTRADE team for bringing the tool to investors and to iTRADE’s marketing efforts to have the communications tools (videos) and content to support explaining what it is and why investors should pay attention.

While it is hard to separate the ‘marketing’ from the content of the Twitter chat, there were 6 questions that host Tom Drake pitched to followers of the hashtag #FairTrader. In case you missed it, we’ve provided the tweets from the session below.

Here are the list of questions tackled during today’s Twitter chat on sustainable investing:

  1. What is sustainable investing?
  2. What is ESG and why does it matter?
  3. Sustainalytics, tell us more about the research behind Scotia iTRADE’s Sustainable Investing tools.
  4. Where can you find more information about Sustainable Investing & ESG?
  5. Can you tell us how Scotia iTRADE’s Sustainable Investing & ESG tools work?
  6. Why may Sustainable Investing or ESG be important to direct investors?

Of the answers provided to this series of questions, perhaps the most succinct was from @BoomerandEcho who stated “Profit doesn’t have to be a dirty word – it’s okay to make money as long as it’s not at the expense of people and planet #FairTrader”

Scotia iTRADE was not the only Canadian discount brokerage to put the spotlight on sustainable investing this month. Earlier in April, Desjardins Online Brokerage published a short article highlighting the exceptional growth in interest in ESG concerns among managed assets and had scheduled (but later canceled) a webinar on ‘investing and the environment’ for April 20th.

Suffice to say, with the visible success and early traction of the ESG tool and sustainable investing buzz on social media, other Canadian discount brokerages will likely (if they haven’t already) take note. Given the competitive nature of the industry, ideas that resonate with investors tend to get replicated at multiple brokerages (e.g. commission-free ETFs).

The irony and good news heading into Earth Day is, that the competition for profits amongst the brokerages will help bring the ESG and responsible investing tools to investors, which will in turn drive a more socially conscious flow of capital.

Discount Brokerage Tweets of the Week

Lots of interesting chatter this week to keep brokerages on their toes. Mentioned this week were CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE and TD Direct Investing.

From the Forums

Can’t Fight the Fee-ling

For better or worse, there are those that enter into the world of DIY investing not fully appreciating that it really is about doing it yourself. In this post, from reddit’s personal finance Canada section, one DIY investor learned the hard way that agreements can be changed and that signing on to be a DIY investor means keeping close watch on what’s happening in their accounts.

That Settles It

Although computers and online trading seem to make things work instantly, the reality of stock trading is that there still has to be a transfer of shares from a seller to a buyer and funds from a buyer to seller. As one investor in this post on reddit found out, when you want to tap into your TFSA by selling some stocks, be sure to budget a few days to let the dust and the trade settle.

Into the Close

That does it for another week. As we hurtle towards May, market technicians are watching for sell signals and will no doubt be pouring over charts this weekend to stake their exits. And speaking of exits, Earth Day is a great reason to exit a building and enjoy the great outdoors (so long as the great outdoors is enjoyable) by cheering for a cause (hockey, basketball, Earth, science, or whatever). Have a great weekend!

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Discount Brokerage Weekly Roundup – April 14, 2017

With markets closed today in observance of Good Friday, investors on both sides of the border can spend their weekend recounting United Airlines memes, legalization of marijuana in Canada and the mother of all bombs. Say what you will about the news, but investors have a lot on their plates to digest – and that’s before sitting down to a long-weekend dinner.

Fortunately, one thing DIY investors won’t have to do this weekend is search for the latest news from Canadian discount brokerages. In this week’s roundup we take a look at movement from two western-Canadian based brokerages. The first is reviving a new deal that might be part of a broader strategy to attract younger investors (even away from other discount brokerages). The second story focuses on changes to user experience brewing at another western Canadian online brokerage and what that might mean for competitor brands. As usual, we have the fan favourites of DIY investor chatter from Twitter and investor forums to close out on.

Qtrade Investor launches new transfer deal

After a small lull in the deals and promotions section this month, a “new” transfer deal has emerged from Qtrade Investor. The deal itself isn’t new per se; it is a reboot of an offer that has shown up from time to time over the past several years.

Still, a deal is a deal. And when it comes to transferring accounts, this latest offer from Qtrade Investor stands head and shoulders above other transfer offers. Specifically, Qtrade Investor is offering to pay the transfer out fees (typically around $150) for a minimum deposit of $10,000. Qtrade Investor normally requires deposits of at least $25,000 in order to rebate a transfer fee from another brokerage, so it is an interesting offer for those on the fence about switching to Qtrade Investor.

Typically, Canadian discount brokerages offer to cover transfer out fees for deposits of at least $25,000. Exceptions to the $25,000 threshold are RBC Direct Investing, who requires deposit of at least $15,000, and more recently National Bank Direct Brokerage, who has lowered their transfer fee coverage threshold to $20,000.

Although Qtrade Investor’s latest promotion is a limited time offer, it appears that there might be additional momentum starting to build amongst brokerages to lower the bar to cover transfer fees.

Of course, the transfer fee coverage game is a tricky one.

At any time, a major player in the market could decide to raise the bar to leave and effectively negate (or cost) other brokerages trying to incentivize clients to switch. Switching fees are not something brokerages actively advertise so once a DIY investor chooses to become a client of an online brokerage provider, the cost to exit isn’t generally part of what they think about. Arguably, however, every investor and trader should consider the cost to exit before agreeing to enter.  In reality, it is unlikely that many investors consider the switching cost as part of the reason to choose a brokerage.

On a side note, Qtrade Investor’s latest promotional offer also appears to visually be appealing to younger, more active individuals (or those who aspire to be). For those who keep a close eye on the ‘imagery’ choices of Canadian online brokerages, there has been a distinct shift in what an investor “looks like”. This includes the visual identity for Qtrade Investor.

Clearly the combination of a lower threshold for switching to Qtrade Investor and some younger, more active characters helping to sell the deal and other features on Qtrade Investor signal a definite interest in appealing to the millennial investor crowd. An interesting (perhaps ironic) question is whether other brokerages can ‘keep up’ with what Qtrade seems to be doing.

Credential Direct signals a digital shift

Hunting around on Easter seems to be a thing that people look forward to. Not so much on websites, however, where hunting around for information generally leads to frustration if not outright abandonment.

This past week we noticed an invitation to complete a survey about the Credential Direct website on the front end which naturally piqued our curiosity.

Specifically, the 10-minute survey stated that it was requesting feedback on a prototype of the website, with the feedback being used to make some informed decisions on how to organize the menus to make them as user-friendly as possible.

The usability questionnaire asked visitors to complete an action based on a scenario/question, such as locating information in the website menu for upcoming webinars. Specifically, it appears that Credential Direct is looking to discover where users are most likely to look for information.

For comparison, the website menu structure is organized into the following top level sections:

  • Why us
  • Pricing
  • Research & Tools
  • Education
  • Forms
  • About Us

The prototype menu structure, however, appears to consist of the following top-level options:

  • Features
  • Fees
  • Knowledge & Support
  • About
  • Partnerships

One of the first things to note is that there are fewer menu items, a sign that some navigation simplification is in order. Secondly, there seems to be a shift away from a ‘hard sell’ to a ‘soft sell’ highlight features instead of telling users ‘why’ they should choose Credential Direct and changing the term ‘pricing’ to ‘fees’.

Another interesting observation stems from the items being included in the ‘Knowledge & Support’  – specifically the inclusion of the categories for popular content, featured content and DIY Investor knowledge.  It’s one thing to create special categories of information, however, it’s another to populate these categories with enough information to warrant making a category in the first place.  These categories seem to suggest that Credential Direct might shift the current set of ‘DIY Investor knowledge’ on markets and investment types for a new home, but perhaps they may also be prepping to include more DIY investor focused content, something that their competitors across the street (quite literally) at Qtrade Investor have been building out.

Although things are still very much in the prototype stage, it’s clear that change is brewing at Credential Direct. One other interesting data point in support of this digital evolution is a tweet from their account (which appears to have been deleted and replaced later by a tweet from the parent Credential Financial account) that suggests that building a better digital experience for wealth management service providers is on the minds of the Credential leadership.

Discount Brokerage Tweets of the Week

What happens when a brokerage popular with social media savvy users has an outage? Read on. Mentioned this week were BMO InvestorLine, Questrade, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Spot the DI-fference

One of the challenges that the big five Canadian banks have is differentiating themselves to consumers. For those DIY investors thinking of going with a big bank-owned online brokerage (aka direct investing with an online brokerage) the challenge of telling them apart is even trickier. In this post from Reddit’s Personal Finance Canada section, readers weigh in with their experiences on a couple of bank-owned online brokerages.

Getting an Edge

Active traders are always on the look out for ways to shave costs. That said, price isn’t the only factor, there’s also user experience and trade executions that matter. One reader on Canadian Money Forum in this post sought advice from other readers on shifting away from CIBC Investor’s Edge and got some interesting recommendations.

Into the Close

With the combination of playoff hockey and basketball and spring baseball, there’s no shortage of fun distractions heading into the weekend. Of course, there are also lots of not-so-fun distractions to keep an eye on too; however, hopefully you-know-who decides to play golf rather than a real-life version of risk. Have a safe and hoppy Easter weekend!

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Discount Brokerage Weekly Roundup – April 7, 2017

In the same week that the electric vehicle maker Tesla became the most valuable US automaker, a marijuana ETF launched and the world inched closer to war. Nevertheless, stock markets continued to price in the myriad of opportunities and risks to enable capital to flow into fueling the world of tomorrow (assuming of course the world is still here, which markets suggest is the case). For online brokerages and DIY investors alike, it continues to be an interesting time to be in the markets with stories that are finally getting investors excited and a little afraid.

This week’s roundup looks at the latest update to the deals section with the first few days of the new month providing an early look at how the market is shaping up for promotions. From there, we look at another popular discount brokerage and the many stories they were involved in as they transform themselves to capitalize on brave new trading reality. As usual, there’s a healthy dose of investor chatter from Twitter and the forums as well as a new feature of the weekly roundup – a look ahead at articles coming to the SparxTrading.com blog.

Deal Dance

There’s a classic saying for investors trying to time the markets: buy when it snows and sell when it goes. Of course, depending on where you may be in the country the timing of that ‘advice’ can vary widely.

For DIY investors, however, history has shown that when it comes to deals & promotions, snow might be a decent indicator of when to go shopping for a bargain for opening an online trading account.

Yet again this year, Canadian discount brokerages have stepped back from offering up promotions now that the RRSP season is behind us. Dropping from a high of 35 offers last month to 24 deals to kick off April, the promotional race has cooled off heading into middle of spring.

With another four deals set to expire through the month of April, the deal cull is not quite finished. That said, the news for DIY investors isn’t all grim. There are already whispers some more offers are coming and the odds are quite good that marketing teams are not about to take the spring or summer off.

The sole online brokerage offering a ‘new’ promotion to start the month is BMO InvestorLine, whose cash back or commission free trade offer is likely to spark the interest of investors and brokerage competitors alike.

Despite this cyclical phenomenon, there are indicators suggesting positive investor sentiment and a few stories that are genuinely exciting to investors (such as the proposed legalization of marijuana and renewed interest in IPOs). So, while the past two or three years have not had a robust set of trader friendly stories heading into the summer season, this year things appear to be ‘different’.

Thus, competitive brokerages may seize upon this opportunity to shift gears on a typically slow season to take advantage of the uptick in investor sentiment.

For DIY investors looking to open an online trading account, there are still lots of deals for those in a hurry to open an account and the prospect of some interesting offers on the horizon for those with a bit more patience. Stay tuned.

Spotlight lands on Interactive Brokers

As many west coast readers can attest to, when it rains it pours. For Interactive Brokers, it has been one of those moments where lots of things are happening all at the same time. In this section, we run through a week filled with analyst downgrades, impressive account growth, news appearances and the launch of a new feature for Canadian investors.

Earlier in the week Interactive Brokers announced that they would be winding down the market making segment of their business – an operation that has struggled to be profitable – in a move that signals just how challenging active traders have found the low volatility environment of the past several years.  The irony, of course, is that as an online brokerage Interactive Brokers’ valuation rests on the fact their clients are active and/or professional traders.

The transition was not taken favourably by analysts, at least for the moment, as the move resulted in downgrades on IBKR. While the stock price faltered momentarily, by week’s end it had made back ground and then some.

One of the reasons the stock chart on IBKR may have recovered so quickly came from the report of their trading metrics.

The image below (from the March 2017 trading results) indicates an increase of new accounts in March compared to February (+2%) and compared to the same point last year, the increase an increase of 18%. The spike in net new accounts from February to March 2017 was more than 61% higher than the percentage of net new accounts from the same period in 2016. Perhaps the SNAP IPO in early March along with an increased interest in the IPO market generally helped to serve as a catalyst; however, the slow and steady march upward in account growth is noteworthy.

Interactive Brokers trading stats March 2017

There was a negative metric picked up on by analysts, namely the decrease in the number of trades (DARTs) that was observed on both a month over month basis as well as on a year over year basis. That said, there was a significantly higher size of order being placed with the number of shares traded 13% higher in March than in February and 63% higher than March 2016.

Big picture: Interactive Brokers continues to shine with active traders, the most lucrative segment for many online brokerages.

One of the reasons that Interactive Brokers earns the accolades from the trading community is that it is both creative and resourceful in the offerings it gives to its clients.

This week, Interactive Brokers Canada announced that its stock yield enhancement program is now available to Canadian investors (officially).  Briefly, the program enables Interactive Brokers to lend out securities of its clients to other investors and, in exchange, the clients lending the securities receive a portion of interest paid on cash collateral put up by the borrower.

There is an extensive FAQ page detailing many of the conditions and requirements associated with the Stock Yield Enhancement Program but a few key takeaways are that individuals with at least $50,000 in account value can participate and that eligible securities can be either Canadian or American (whereas the Stock Yield Enhancement Program was previously restricted to just US securities).

This program is of primary interest to those active investors who wish to short stocks. Specifically, online brokerages that can tap into client securities to lend out facilitate greater availability of those shares.

Several years ago, Questrade tried to gauge interest in a similar program; however, the launch of the program was contingent on approval from Canadian regulators – something that appears to either have stalled or not proceeded.

Regardless, now that Interactive Brokers offers such a program, it will be interesting to see if other online brokerages follow suit (to cater to active traders) or if this becomes yet another reason that active traders will seek out Interactive Brokers as their brokerage of choice.

Finally, Interactive Brokers’ founder and CEO Thomas Peterffy was on CNBC earlier this week providing his take on the latest developments of US retail investors and markets in general. It was particularly interesting to note his position on the markets at these levels but also his take on DIY investor sentiment.

Around the Corner

We’re making some adjustments to how content is delivered on SparxTrading.com and are pleased to announce that we will be including announcements/previews of articles that we’ll be publishing on the blog here in the weekly roundup.

Be sure to check back on the blog (or follow us on Twitter) to get the latest insights on features and developments at Canadian discount brokerages.

In our first ‘around the corner’, be on the lookout for a detailed look at Scotia iTRADE’s launch of their ‘sustainable’ investment assessment tool. This tool has been gathering quite a bit of attention online and has also seen associated media (video) developed to help investors understand what it is and how to use it.

Discount Brokerage Tweets of the Week

An interesting week for DIY investors on Twitter with new features and platform stability on the wishlist. Mentioned were BMO InvestorLine, CIBC Investor’s Edge, Questrade, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Transferustration

Moving between online brokerages can be a costly affair. In this post one user is considering the move from TD Direct Investing into Questrade and comes up with an interesting (albeit round about) way to deal with the transfer fees.

Transferustration 2: Not so Simple

With robo-advisors gaining in popularity, the shift away from DIY passive investment portfolios into a robo-advisor based platform will only continue to gain traction. This post was particularly interesting as it shows the (rough) experience of one user transferring from Questrade into Wealthsimple.

Into the Close

The first week of April is officially in the books. It’s been a very interesting week across the markets and more importantly across the globe. While the world is nervously watching what happens with the US war machine now being mobilized, traders are inevitably wondering how best to navigate this terrain. And, speaking of things moving quickly, science (or a pipe dream) finds its way into our imaginations yet again this week. Here’s a look into the future of ultra high-speed transportation. Have a great weekend!

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Discount Brokerage Deals & Promotions – April 2017

*Updated April 14* Even though this is technically April Fool’s Day, the pullback in deals is no laughing matter. After a very busy March in which there were as many as 35 deals in play, April kicks off with a more modest 24 live deals. The bigger story, however, is recognizing that now might not be the best timing for brokerages to be on the sidelines.

Having compared online brokerage deals & promotions for several years now, there is clearly some seasonality at play. Last year, for example, the transition from March to April saw the deal count drop from 33 to 19.

Discount brokerage deals and promotions typically ramp up at the beginning of a new year and crest heading into the RRSP contribution deadline at the beginning of March, after which things slowly subside.

Coming into 2017, however, it was noteworthy that several online brokerages had launched their major promotional pushes just before the end of 2016, signaling a much fiercer competitive environment for attracting new clientele.

And, although the start of April begins with a major contraction in offers, it is also interesting to see that competitive forces are still at play in the early part of 2017.

While we can’t be certain of the timing of this change, National Bank Direct Brokerage quietly lowered their minimum transfer deposit requirement from $25,000 to $20,000 for individuals to receive a transfer fee credit. The majority of Canadian online brokerages have set the bar at $25,000 to qualify for the transfer fee credit to apply so this move from NBDB might be enough to tip a few competitors to do the same.

Another interesting development at the outset of a new month is absence of special offers listed on the Scotia iTRADE ‘special offers’ page.

Along with BMO InvestorLine, Scotia iTRADE has been a stalwart of the deals race, typically running promotions to attract new clients. Interestingly, the ‘refer-a-friend’ and the ‘Start Right’ offers appear to have been labeled as “programs” (in the Fees section) rather than being listed under the special offers section.  The same is true for their ‘buck-a-bond’ offer, which has been a fixture of previous special offer sections.

The restructuring of Scotia iTRADE’s deals could be a consequence of the new website organization but for DIY investors looking for an incentive, this change has made it less clear that there are offers available.

On the surface, it seems that running offers/promotions when DIY investors are in the market for opening an account makes sense. It’s why retailers concentrate their efforts around big shopping dates in the calendar year. Unlike retail, however, the reality is that DIY investors, especially those on the margins, might be driven more by the investment climate than by seasonal deadlines.

With our own internal data showing steady DIY investor interest, markets trading at all-time highs and economic forecasts flashing green, there’s a case to be made that there’s no better time for brokerages to be offering up more promotions rather than less. If investors are coming back to the markets, it will be interesting to see just how long brokerages are going to sit this opportunity out. Stay tuned.

Expired Deals

*Update: April 3 – BMO InvestorLine has retired their winter promotion and replaced it with a new offer (see below).*

There were 12 deals that expired at one point or another during March. Here’s a list of the deals that didn’t make it into April (as of April 1st):

  • CIBC Investor’s Edge – Cash back promotion
  • Credential Direct – Cash back promotion
  • HSBC InvestDirect – 50 commission-free equity trades
  • National Bank Direct Brokerage – Cash back promotion
  • Qtrade Investor – Cash back promotion
  • RBC Direct Investing – Pay with points promotion
  • Scotia iTRADE – Travel points promotion
  • Scotia iTRADE – Transfer fee promotion
  • Scotia iTRADE – Visa Gift Card promotion
  • TD Direct Investing – 200 commission-free trade promotion
  • Virtual Brokers – $10,000 commission rebate offer
  • Virtual Brokers – 5i Research Subscription Offer

Extended Deals

No deals that were set to expire at the end of March have been extended (as of time of publication).

New Deals

*Update: April 14 – Qtrade Investor is once again offering their transfer promotion which lowers the minimum deposit amount required to qualify for covering transfer fees from $25,000 to $10,000. This is the most competitive transfer fee offer currently available from a Canadian online brokerage. See table below for more details.*

*Update: April 3 – BMO InvestorLine has introduced a very competitive cash back or commission-free trade deal for DIY investors. For deposits of at least $100,000, eligible individuals can receive either $200 cash back or 20 commission-free trades; for deposits of at least $250,000, eligible individuals can receive either $1,000 cash back or 100 commission free trades. According to the terms and conditions for this deal, the eligible account types are cash or margin (individual or joint) accounts, corporate accounts, sole proprietorship accounts, RRSP and spousal RRSP accounts.*

No new deals or promotions to report (as of time of publication).

Discount Brokerage Deals

  1. Cash Back/Free Trade/Product Offer Promotions
  2. Referral Promotions
  3. Transfer Fee Promotions
  4. Contests & Other Offers

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2017
Open and fund a new registered account at Virtual Brokers with at least A) $5,000; B) $25,000; or C) $50,000+ in new assets and you may be eligible to receive A) $30; B) $50; C) $100 cash back. Use promo code RRSPCB2017 when signing up. Be sure to read terms and conditions for full details. A) $5,000 – $24,999 B) $25,000 – $49,999 C) $50,000+ A) $30 B) $50 C) $100 Cash back will be deposited just after October 31, 2017 RSP cash back bonus April 30, 2017
Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 2 months of commission-free equity trading and a $250 USD/mo credit towards Edge Trader Pro for 2 months. Use promo code 2MFREE2017 at sign up to qualify. Be sure to read full terms and conditions for details. $5,000 2 months commission-free equity trading + $250 USD/mo platform fee rebate. 2 months 2 months free trading April 30, 2017
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatFlex or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo April 28, 2017
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, with at least A) $100,000 or B) $250,000+ in net new assets and you may be eligible to receive A) $200 cash back or 20 commission-free trades; B) $1,000 cash back or 100 commission-free trades. Use promo code CASH when signing up for cash back offer or TRADES to be eligible for commission-free equity trade offer. Be sure to read the terms and conditions for more details on the offer. A) $100,000 – $249,999 B) $249,999+ A) Cash back: $200 OR 20 commission-free trades B) Cash back: $1,000 OR 100 commission-free trades. Cash back will be deposited the week of January 8, 2018. Commission-free equity trades are eligible for use up to August 6, 2017. Cash back or Free trade offer June 5, 2017

Expired Offers
BMO InvestorLine Open a new qualifying account with BMO InvestorLine, and fund it with at least A) $100,000; B) $200,000 or C) $300,000+ in net new assets and you may be eligible to receive A) $200; B) $400 or C) $750 cash back. Use promo code PROMO750 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer. A) $100,000 – $199,999 B) $200,000 – $299,999 C) $300,000+ Cash back bonus A) $200 B) $400 C) $750 Cash back will be deposited the week of November 6, 2017. 2017 Winter Campaign *Expired* April 2, 2017 *Expired*
Last Updated: April 22, 2017 01:00 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $50,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period(subject to conditions). BMO InvestorLine Refer-a-Friend June 30, 2017

Expired Offers
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit 30 days none none
Last Updated: April 1, 2017 14:30 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $20,000 Transfer Fee Rebate none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Transfer $10,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $10,000 Transfer Fee Rebate May 11, 2017
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo tbd
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code DisnatFlex. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo April 28, 2017

Expired Offers
Last Updated: April 14, 2017 23:30 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Credential Direct has partnered with Trend Micro to offer 50% off Trend Micro Titanium Internet Security. Use code “TrendCF” at checkout. n/a Trend Micro Special Offer Code none
Disnat Desjardins Online Brokerage, in conjunction with MoneyTalks, is offering 3 months of the “Inside Edge” investor information service to Desjardins Online Brokerage clients. Use promo code DESJ2016 during checkout to qualify. Be sure to read full terms and conditions for more information. n/a MoneyTalks Inside Edge Discount none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none
Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) and you may be eligible to win a $250 gift card to the Apple store. Use promo code 250AGC2017 during sign up to be eligible. Residents of Quebec are not eligible for this contest. Be sure to read terms and conditions for full details. $1,000 (Classic Commission Account) $250 Apple Gift Card Draw April 30, 2017
Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) or $5,000 (for the Commission Free Trading Account) and you may be eligible to receive a one-year subscription to access 5i Research. Use promo code 5iVB2016 when signing up. Be sure to read terms and conditions for full details. $1,000 (Classic Commission Account); $5,000 (Commission Free Trading Account) 5i Research Offer March 31, 2017

Expired Offers
Last Updated: April 1, 2017 14:30 PT
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Discount Brokerage Weekly Roundup – March 31, 2017

Even though March is over, it still doesn’t quite feel like the madness is behind us yet. Nonetheless, housing prices (in Toronto) and stock markets are still buoyant, and are managing to keep up appearances. For investors & discount brokerages, it seems the old farmer adage stands: make hay while the sun shines.

In this edition of the roundup, we look at the deals and promotions turnover set to take place across the board as we head into a new month. From there, we’ll review the latest security feature from a Canadian bank-owned discount brokerage that leverages voice biometrics. As always, we’ll look at what DIY investors had to say on Twitter and wrap up the week with a couple of interesting forum posts.

Marching Forward

After the madness of the RSP contribution season, a rally in the stock market, and rumblings of interest rate increases, it appears as if the landscape for online brokerages is due for a bit of a shakeup.

As we head into a new month, it is already clear that there will be a great deal of change on the deals & promotions front with at least six offers officially set to expire at midnight. Interestingly, deals from National Bank Direct Brokerage, CIBC Investor’s Edge and Scotia iTRADE were pulled from their websites in advance of the official calendar roll over.

The transition from March madness to April (sadness?) is not unusual. Last year, the shift from March to April saw the deal count fall 42% from 33 offers down to 19, with most of the offers disappearing from the cash back/free trade category. The deal count through March of this year reached close to 30 before pulling back slightly with the expiration of deals from Credential Direct, Qtrade Investor and HSBC InvestDirect.

One curious observation this year is that online brokerages have removed offers from their website in advance of the calendar roll over. Typically these deals last through the last day of the offer, even sticking around a few days after the deal has expired.

It’s not quite clear what this means for publication of new offers, however it seems that brokerages are being slightly more responsive than they have been previously. Also, it is curious to note that, at the time of publication, there were no longer any promotional offers or deals listed on the Scotia iTRADE special offers section. Scotia iTRADE has been staple of the deals race for a very long time, so it will be interesting to see if they populate their deals section again soon or if this is a signal of a change in strategy.

We will continue to monitor the deals & promotions section heading into April, especially since the landscape for DIY investors’ choice of promotions keeps shifting. With several ‘coming soon’ features announced by brokerages (including one described below) there may be a convenient promotion to accompany new feature releases.

List of some of the brokerages and deals expired as of March 31st:

  • Virtual Brokers’ $10,000 Commission Credit Offer
  • National Bank Direct Brokerage Cash Back Promotion
  • Scotia iTRADE Winter 2017 Commission Rebate Offer
  • CIBC Investor’s Edge Cash Back & Free Trade Offer
  • TD Direct Investing 200 Commission-free Trade Offer

New Voice of Security

Whether it’s Siri, Google or Alexa, there’s no question that voice recognition is playing a greater role in the day to day lives of consumers. Now, it appears, it will do the same for DIY investors.

Voice recognition technology has typically found its way into the financial services world as a means to replace users having to push numbers on a keypad to navigate, but now it is possible for this technology to verify the identity of who’s on the line.

An announcement posted on the CIBC Investor’s Edge website indicates that voice recognition biometrics will soon be integrated into the customer service experience at one of Canada’s bank-owned online discount brokerages. Instead of fumbling about with passwords, PINs or security verification questions, individuals who are in a hurry will simply be able to rely on a ‘voiceprint’ for security authentication.

Screenshot from CIBC Investor’s Edge Website

How much time can be saved using voice biometric login? Quite a bit, it seems. A recent study of voiceprint-based biometric authentication from Citibank’s Asian Pacific region found that the average time to validate a client’s identity dropped from 45 seconds to 15 seconds using this new technology. In a world where user experience online demands web pages load in fractions of a second, it’s easy to see why making the case to shave the telephone authentication experience down makes sense.

Another improvement to the telephone experience CIBC Investors Edge users will enjoy is being able to schedule a call back instead of waiting on hold.

Granted, it seems like a small improvement, but for impatient traders or investors who would rather listen to the market news instead of hold music (or hold commercials), the call back feature is a godsend and will make scenarios like the one mentioned above a thing of the past. Of course, while call backs are preferable, how long it takes for an agent to call back is another matter entirely.

The announcement page for this new feature also has compiled a useful list of questions, including what should happen if voice authentication does not work or does not allow a user in.

This latest feature announcement, while not revolutionary, is still evolutionary and helps to exemplify that the bigger bank-owned discount brokerages are not standing still when it comes to innovation. When it comes to deciding on how to improve consumer experience as an online brokerage, this one seems to be a good call.

Discount Brokerage Tweets of the Week

If there’s a rule to social media and discount brokerages, it’s that when things break, you’ll hear about it on Twitter. Mentioned this week were BMO InvestorLine, Disnat, Questrade, Scotia iTRADE, TD Direct Investing & Virtual Brokers.

From the Forums

Conversion Factor

DIY investors are always on the lookout for a good deal. In this post, from reddit’s Personal Finance Canada, one DIY investor looking for a better way to convert between USD & CAD found a good tip to consider at a popular online brokerage.

Qtrade vs Questrade

Without meaning to, the Q-named Canadian discount brokerages are often mistaken for one another. In this post, however, one user had narrowed the field down to choosing between Qtrade Investor and Questrade. More instructive, however, is the response on this channel that Questrade managed to provide.

Into the Close

That does it for another week in the markets. Assuming that nothing totally crazy happens on Twitter this weekend, enjoy April Fool’s Day, the start of spring training and celebrating the successful launch (and return) of the SpaceX rocket. For a head start on April Fool’s pranks, here’s a fun rundown of them.