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Discount Brokerage Weekly Roundup – September 9, 2019

Sports offer a great metaphor for the highly competitive nature of the stock market. After an epic weekend of football and tennis, there was lots to cheer for (not so much for Raiders fans though). While there are many lessons on the field that apply to the markets, another great feature of sports is the highlight reel.

In this edition of the Roundup, we serve up a series of highlights from what online brokerage activity crossed our radar this past week. Keep reading to learn more about deals updates, a pull back on shorts, healthy performance stats, new features, and upcoming investor education initiatives. As always, we’ll serve up the staple DIY investor conversations on Twitter and the investor forums.

Deal and No Deal at BMO InvestorLine

This past week, BMO InvestorLine saw a couple of interesting developments take shape. First, on the deals and promotions front, the popular bank-owned Canadian online brokerage kicked off their latest offer for the new season.

Similar to their summer promotion, BMO InvestorLine’s latest offer is also a tiered cash-back offering. The latest promo, like the one before it, has tiers that skew towards higher deposit amounts with the maximum tier with a reward being the $2M one. Interestingly, when compared side-by-side, the fall offer makes getting a deal more accessible, since the latest offer has a lower threshold to qualify ($100K minimum deposit vs $500K minimum deposit) for it.

Min Deposit Required Summer Offer Reward Fall Offer Reward
$100K – $100
$250K $500 $225
$500K $1,000 $600
$2M+ $2,500 $2,000

 

Unlike the summer offer, the most recent Fall promotion by BMO InvestorLine requires a minimum deposit that starts at $100K, which likely means that more DIY investors will be able to qualify for this cash back offering. Interestingly, for the other deposit tiers, the amount of the cash back reward was lowered significantly, with the highest cash back offering topping out at $2,000.

A quick scan of the deals board shows that there two big-bank owned online brokerages with cash back offers – BMO InvestorLine and Scotia iTRADE. Interestingly, they appear to be trying to reach very different segments with cash back offers. In the case of the latest offer from Scotia iTRADE, it is possible to qualify for a $50 cash back bonus for a deposit of $2,500. By comparison, BMO InvestorLine’s bonus is $100 for a deposit of $100K, a 40x difference in deposit size from the Scotia offer.

In spite of the scope/size difference in the reward amounts, when it comes to DIY investor interest in online brokerage deals, cash is king. As such, the amounts being offered are still better than nothing.

For more information, be sure to check out the deals & promotions section.

Short Shorts

Another “short” story from BMO InvestorLine surfaced last week and had to do with DIY Investors encountering difficulties with trying to short trade select cannabis securities. In this article in the Financial Post, author Victor Ferreira details the experiences of a few DIY investors who were unable to short sell shares of cannabis companies.

When the availability of shares to short sell, especially from a bank -owned brokerage, starts to dry up, it is often a sign of a very bearish market sentiment.  Very recently, the shine has come off the cannabis sector which means, as an investment, they may be considered “riskier” than other symbols or assets. Compounded with the overall volatility in the market, and its possible that BMO is preparing for the storm to hit.  What will be interesting to monitor is the extent of the restriction, whether it’s been formalized, and whether other financial services will follow suit.

Interactive Brokers Posts Stronger Numbers

This past week, Interactive Brokers announced performance metrics and highlights for the month of August as well as rolled out the ability for individuals to bet on NFL games via the free online sports betting platform.

Starting first with metrics, for this month’s numbers, the biggest highlight appears to be the volume of trades. Clients of Interactive Brokers generated 930K daily average revenue trades, which is a staggering 26% higher than trading volume at the same point last year. As per usual, the streak of account growth continues with the online broker now being home to 600K accounts which is a 17% growth compared to last year.

As we mentioned in this previous roundup, the volatility is generally good for generating trading activity which, in turn, is good for online brokerages. The double-edged sword though, is that, with the uncertainty contributing to jitters in the market, it also happens to be a deterrent to people wanting to invest on their own.

Another interesting development coming out of Interactive Brokers is that they’ve officially added and launched the NFL on their online betting platform. Recall that Interactive Brokers rolled out an official sports betting program in the summer to try and attract individuals who are into sports betting in the hopes that those folks who take it seriously would be a good fit for the IB platform and would want to trade real money.

The ability to bet on games opens up two weeks prior to the event itself, so there is some capability to wager on the outcomes in advance. Also interesting is the “trading” interface that IB has created to explain the “bet”. This betting console contains odds as well as what users can expect to gain if the bet materializes. In this way, it is more about understanding the consequences of the action (investment) than it is to blindly speculate.

Learning About Earning

September is synonymous with back to school. For students of the stock market, however, school happens to always be in session. Nonetheless, there is an uptick this month in the number and caliber of learning events for DIY investors.

Online brokerage events related to investor education are becoming increasingly rare except at larger online brokers, and even then, there is just a small group that deliver educational content on a regular basis. This month, TD Direct Investing and CIBC Investor’s Edge both have compelling information/education events planned and, as mentioned last week, Scotia iTRADE has an interesting education event planned for clients.

In the case of the former, TD Direct Investing has put together a well-structured and comprehensive series of webinars as part of their “Master Class” series. This series includes webinars on investing basics as well as advanced topics and software platform orientation. Even though this has been available for some time, it does stand out from amongst its peers in terms of breadth, structure and accessibility.

CIBC Investor’s Edge is also in the mix with an event of their own. Coming up on September 27th, CIBC economist Avery Shenfeld will be presenting his economic outlook for 2020 and the kinds of things investors will need to be aware of heading into 2020. With the volatility and uncertainty in markets, this is likely to be a highly sought after event.

Discount Brokerage Tweets of the Week

From the Forums

Bubbling Over With Excitement

In a recent interview, Michael Burry dubbed index funds “subprime CDOs” and declared the existence of a “bubble” in passive investing. Investors on Canadian Money Forum are up in arms as they interpret and discuss the statement here.

Ou(TD)oing the Competition

TD e-Series mutual funds have been a long-time favourite for DIY investors, and as changes are being introduced, Redditors are discussing the new possibilities. Read the full discussion here.

Into the Close

Canada appeared to defy expectations on both the job front and on the tennis court. Of course, when it comes to the markets these days, there appears to be even more racket(s) than at the US Open – and probably just as much back and forth. It’s definitely a challenge to be a market spectator these days but just like viewing tennis, it’s important to focus on the long game and enjoy the rallies while they last.

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Discount Brokerage Weekly Roundup – September 3, 2019

The unofficial end to summer is now here, and while it’s poor form to wear white after Labour Day, it seems like white flags and white knuckles are still very much going to be part of the investing experience in the weeks and months ahead.

In this shortened week edition of the Roundup, we take a rather lengthy look at recent developments in the deals and promotions department as well as in the marketing tactics of one bank-owned online brokerage. Not only did they decide to make a big splash in the deals pool just ahead of the long weekend, but they’ve also decidedly put getting friendly with millennials on the top of their to-do list. After those profiles, be sure to stick around for interesting comments and thoughts from DIY investors this past week from Twitter and the investor forums.

Discount Brokerage Deals & Promotions Updates

Even though summer is supposed to be a typically quiet time when it comes to investing, these past few weeks, the stock markets have been dominating headlines. Naturally, how things are going to play out is on the minds of many Canadian DIY investors as well as the online brokerages sitting between investors and the market action.

With the heightened uncertainty, the already challenging job of the online brokerages has become tougher, but as the deals and promotions activity in August has shown, the only choice at this point is to navigate the storm.

Heading into a new month, the big deals & promotions news to start off September are the several new offers from Scotia iTRADE that landed at the end of August. These offers undoubtedly soured some competitors’ long weekend relaxation plans and generated some buzz among Scotia iTRADE’s existing clients as well as new clients.

Like the stock markets, September will also likely see its share of deal volatility. There’s a new offer from BMO InvestorLine expected at the outset of the month and HSBC InvestDirect’s commission-free trade promotion is due to expire at the end of the month. Toss in the ramp-up for many online brokerages to capture interest in TFSAs and RRSPs before the end of the calendar year, and this September is likely to see a few surprises in the deals department for DIY investors.

Of course, while there is still quite a bit of choice for DIY investors looking for a deal when opening an online trading account, the biggest story to watch unfold is the fallout from Scotia iTRADE’s promotional burst.

The first thing to watch out for is the fact that Scotia iTRADE is offering up commission-free trades to existing clients who attend a specific webinar on US dollar positions on the 24th of September. To deepen the intrigue, the webinar is not being advertised (as of the time of publishing) on the public webinar calendar on Scotia iTRADE’s website and thus, may be restricted to existing clients.

For many reasons, Scotia iTRADE offering up commission-free trades to attend a webinar is an important development – not the least of which because it signals a ramp up in the use of incentives to drive client behaviour to objectives other than depositing cash. For many years, commission-free trades were generally available only as account sign up bonuses (or to add assets). And now that they are being used to encourage investors to attend webinars, the door is open to steer them into other behaviours as well. It will be interesting to see whether other online brokers who offer investor education might feel inclined to do the same thing to boost awareness of new feature launches. Additionally, those that do not offer investor education or who don’t have US dollar trading account capabilities need to come up with alternative value drivers somewhat quickly. Further, if this is something Scotia iTRADE continues to do on occasion, other brokerages who don’t follow suit may be perceived as not valuing their clients the way Scotia iTRADE does.

The other big development that Scotia iTRADE initiated with their latest deal is that they’ve lowered their standard commission price from $9.99 to $6.99 per trade for qualified new clients (for a limited time) and thrown in a $50 bonus, all on top of an ultra-low minimum deposit requirement (by Scotia iTRADE’s standards) of $2,500.

After holding out for over five years on a standard commission price drop, this promotion effectively signals a second price drop within a year at the same firm. And, because it is one of the big five bank-owned online brokerages, competitors are sure to take notice.

Typically, in order to get to the $7 commission per trade rate, the volume of activity has to be relatively high (e.g. 150 trades per quarter). So, to both lower the required deposit to qualify for the rate down to $2,500 while also dropping the price of a standard commission fee is a throw-down to the rest of the industry. For DIY investors looking around for an offer they can easily qualify for and benefit from, Scotia iTRADE’s latest will certainly find its way into contention.

The takeaway for DIY investors heading into the end of the year is that competition among Canadian discount brokerages is likely to intensify. Scotia iTRADE has laid out their business case for going after millennial investors – something their counterparts have also signalled an interest in. Millennial or not, investors of all ages are about to benefit from the race to win over newer investors.

Scotia iTRADE’s Living Their Best Life

After some time in cruise control, it appears that Scotia iTRADE, one of Canada’s big-bank-owned online brokerages, is stepping on the gas to pursue a new segment of DIY investors: millennials. Last week, we spotted an interesting series of promotional launches (described above) as well as an event tailored towards engaging with millennials via some serious influencer-driven marketing.

Starting first with a live event, which was billed as a “finance-y event for people who don’t typically go to finance-y events” three young, accomplished, “self starter” figures with large social media (Instagram) followings were recruited to share their views on, and journey with, money and investing.

Included on the panel list were:

  • Brandon Olsen (12.7K Instagram followers)
  • Amy Shio (13.2K Instagram followers)
  • Tristan O’Brien (77.1K Instagram followers)

Peeling back the swanky curtains a bit on this event revealed some interesting observations about how this event came together and who the intended audience was.

The first interesting observation is that this event was produced in conjunction with Bay Street Bull who describe themselves as “a business luxury lifestyle publication for professional men and women.” The nature of their typical content aligned well with the panelists.

Another interesting facet was the decision to post Instagram handles of the panelists rather than other social media channels (such as Twitter) and to elect to not go the route of having an “official hashtag” effectively closed off the event to people who wouldn’t be on Instagram or who didn’t follow Bay Street Bull. This certainly speaks to the desire to focus on reaching a typical millennial audience watering hole online. Other channels are clearly less important to this segment, or at least that’s what’s being implied.

 

Then there is the “self starter” campaign itself. Specifically, the “beginner guide to self-directed investing” brochure created to detail the stories of the abovementioned three self-starters and what they think about investing in general and the Scotia iTRADE experience.

Written in an interview format, the three different perspectives provide a different kind of “testimonial” to using the platform. Again, leaning on the production expertise of Bay Street Bull, the brochure paints a compelling picture of the millennial investor market opportunity, including the often-cited massive wealth transfer that is poised to take place from Baby Boomers to millennials.

Of course, despite talking about the future, the irony here is that millennials know all too well that the internet doesn’t forget.

For Scotia iTRADE, there is a genuine challenge ahead of them to shed the reputation of being the least competitive (from a pricing point of view) option for young investors. Recall that they kept their standard commission rates well above $20 per trade during the five-year period when the rest of the industry had started to lower standard commission rates to under $10. Shedding that kind of reputational drag will undoubtedly require some very big, bold (and potentially costly) overtures. Nevertheless, change has to start somewhere, and this year it has.

From lowering their standard commission fee (finally) to introducing the option for younger investors (under age 26) to have their low activity administration fee of $25 per quarter waived (on balances under $10,000), and now a direct campaign for millennials, there are clearly signs that things are beginning to shift at Scotia iTRADE.

Perhaps the most interesting thing about the launch of the deals and offers for existing clients and for the live event was that almost none of it appeared on the Scotia iTRADE Twitter feed or LinkedIn profile, nor did the promotional offer appear on the Scotia iTRADE website in the special offers section. Instead the deal surfaced via Google search and only after some searching online was the information about the iTRADE event retrieved. All of which begs the question, why keep this under wraps?

Another important consideration in the new millennial charm offensive that will be important to monitor is the degree to which the “influencer endorsement” builds traction with millennial investors. Among the older investors, the partnership with Canadian personal finance/investing celebrity, Larry Berman, worked particularly well for Scotia iTRADE for many years and resulted in many full hotel banquet rooms across Canada. That said, millennials are cut from a different digital cloth. They are savvier when it comes to vetting authenticity and as far as endorsements go, this is an interesting experiment at the intersection of social media marketing and DIY investing.

Ultimately, however, enlisting social media influencers may not prove to be as potent as other strategies.

Robinhood, the US online brokerage, Wealthsimple and Wealthsimple Trade (here in Canada) have also managed to create DIY investor evangelists by going a different route. The recipe, it seems, includes drastically reduced commission costs (or in the case of both online brokerages, zero commission costs) as well as a dramatically improved technology and user experience.

For a campaign strategy that leaned so heavily into a visual medium (like Instagram) to connect with a millennial audience, the hope is that the platform and experience with Scotia iTRADE will follow suit. Reading through the Scotia iTRADE Twitter comments, however, suggests there’s still quite a bit of work to be done (as well as a strange fixation on the large yellow Lego banana from their TV commercials). The hazard for iTRADE is that by setting visual and brand experience expectations without being able to follow through on them runs the risk of further alienating the next generation of DIY investor clients.

While outreach events and lowering the price barriers will put Scotia iTRADE back into consideration with younger investors, what will ultimately get millennials talking about investing on social media and using Scotia iTRADE as an online brokerage is how amazing and easy the experience is on the platform. The one thing that iTRADE needs to start hearing from millennials is “shut up and take my money” – anything short of that and there’s a lot more design and user experience work to be done.

Discount Brokerage Tweets of the Week

From the Forums

Any Port(folio) in a Storm

In light of increasingly unpredictable market fluctuations, one worried investor is looking for advice on “recession-proofing” their portfolio. Read on to find out what fellow Redditors recommend here.

Loony for our Loonie

With the recent publication of the Goldman Sachs prediction on the loonie, Canadian Redditors are up in arms, discussing potential strategies, profits, and economy-wide ramifications in this thread.

Into the Close

That’s a wrap on the shortened week version of the Roundup. It looks like it’s going to be more of the same kind of back and forth rhetoric, as well as precarious talk of recessions, all the while the economic numbers are still pointing to solid growth in Canada. As far as forecasts go, this sounds like things could go up or down or not anywhere or everywhere. Whichever way you’re trading takes you this week, pack some Rolaids and have a profitable week!

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Discount Brokerage Deals & Promotions, September 2019

*Updated Sept. 4* When it comes to discount brokerage deals, it appears that this month, school is definitely in session. Even though there are no new deals that officially launched at the beginning of September, there were several that snuck in at the tail end of August, just in time for the Labour Day weekend and for the start of the new month.

Change is almost a given in the stock market these days, so it seems fitting that there be some turnover and excitement in the deals space. To that end, last month saw the start and finish of the RBC Direct Investing commission-free trade offer and the expiry of the CIBC Investor’s Edge commission-free trading offer. Early on in September, BMO InvestorLine is also poised to launch a new deal, too.

Despite the action at Canada’s bank-owned online brokerages, it was Scotia iTRADE that made the biggest splash in the discount brokerage deals pool at the end of last month.  With a creative deal for new clients as well as promotions for existing clients being offered by iTRADE, this online broker has left little doubt that they’re prepared to take the rest of the online brokerages back to school when it comes to interesting offers for DIY investors.

It’s clear that the timing of Scotia iTRADE’s offers are no accident. September is the time of year when investors are typically returning from vacations and getting back into the markets, so it would not be too surprising to see deals activity at other online brokerages begin to ramp up too and respond in kind with offers of their own.

As always if there are any new or interesting discount brokerage deals out there that online investors could benefit from, let us know in the comments below.

Expired Deals

*Update September 4 – The cash back promotion offered by BMO InvestorLine has expired, but quickly replaced with a new cash back deal. More details on the offer can be found below.

The two biggest offers that expired in August included an offer from CIBC Investor’s Edge and a commission-free trade from RBC Direct Investing.

Extended Deals

*There are no extended deals to report this period*

New Deals

*Update September 4 –BMO InvestorLine has released a new cash back promotion available for new qualifying accounts. You may be eligible for cash back when you deposit $100,000+ in your account. Enter promotion code SPARXCASH into your Online Application Form to qualify for this award. Scroll down for more details.*

Scotia iTRADE is offering up $50 in cash back for new clients as well as a standard commission rate of $6.99 per trade (until March 2020). In addition, this offer is accessible with a minimum deposit of $2,500.

For existing Scotia iTRADE clients, there are also some compelling incentives being batted around. The first is for individuals who add a certain dollar amount to their accounts to be eligible for commission-free trades. Since these are for existing clients, the typical YMMV (your mileage may vary) qualifier applies, however iTRADE is offering 5 commission-free trades for deposits of $10,000.

In addition, and potentially the most compelling offer for existing clients, is that Scotia iTRADE is offering up to 3 commission-free trades for attending an educational webinar on the “US Dollar Position” on September 24, 2019. Trading commission-free trades for attending a webinar is a very tempting offer that has very little downside for investors and could be something that other online brokerages that offer DIY investor educational webinars look to add into their mix to encourage participation.


Discount Brokerage Deals

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

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 a qualifying account at HSBC InvestDirect and you may be eligible to receive up to 30 commission-free North American equity or ETF trades. No minimum deposit is required for this offer and it is open to new and existing clients. Trades are eligible to be used for up to 60 days. See terms and conditions for full details. n/a 30 commission-free trades 60 days HSBC InvestDirect Summer Offer September 30, 2019
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, 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, 2019
Scotia iTrade Open a new qualifying account and fund it with a minimum of $2,500 and you may be eligible to receive $50 cash back. This offer also includes $6.99 per trade commissions until March 1, 2020. Be sure to read the terms and conditions for more details. $2,500 $50 cash back and $6.99 per Canadian and US equity/ETF trade. Cash back will be deposited by January 31, 2020. $6.99 per trade commission pricing active until March 1, 2020. Cash Back Offer Details October 15, 2019
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 DisnatTransfer 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 none
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2019
BMO InvestorLine Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $100,000; B) $250,000; C) $500,000+ or D) $2M+, and you may be eligible to a cash back reward of up to A) $100; B) $225; C) $600 or D) $2,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $100,000 B) $250,000 C) $500,000 D) $2M+ A) $100 B) $225 C) $600 D) $2,000 Cash back will be deposited the week of June 15, 2020. BMO InvestorLine Cash Back Offer Details October 31, 2019

Expired Offers
Last Updated: Sept. 04, 2019 09:55 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 B) $10,000 C) $25,000 D) $50,000 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
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor 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 $5,000 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. $5,000 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 January 2, 2020

Expired Offers
Last Updated: Sept. 1, 2019 23:30 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo September 30, 2019
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 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 $15,000 Transfer Fee Rebate 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 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 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 Desjardins Online Brokerage 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 Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Last Updated: Sept. 1, 2019 23:30 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
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

Expired Offers
Last Updated: Sept. 1, 2019 23:30 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Sept. 1, 2019 23:30 PT
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Discount Brokerage Weekly Roundup – August 12, 2019

One of the highlights of any summer barbecue is the dip. Of course, for anyone who’s ever arrived at one a bit too late, often it’s just the dip that’s left. For DIY investors, it seems that the newsies are no longer talking about the market barbecue anymore and instead are focused on the dip.

In this edition of the Roundup, we take a look at a global trend towards commission-free trading that’s taking shape, and what that might mean for Canadian DIY investors (and online brokerages too). From there, we spotted another emerging trend from one online brokerage who knows how to get noticed this summer. As always, we’ve got a great medley of investor chatter and a few spicy tweets to close things out.

Commission-Free Trading Growing Globally

Now that the back to school sales are ramping up, it’s a sure sign that September is just around the corner. Of course, for DIY investors and online brokerages alike, the approach of September is also the time of year when activity starts to pick up again. The competing forces of volatile, tweet-driven behaviour on the one hand and solid economic fundamentals on the other mean that the stock market (and bond market) are becoming decidedly undecided on a direction. In spite of the surrounding uncertainty for the stock market itself, it seems that a clear trend is emerging for existing online brokerages to contend with: zero-commission trading.

This past week, the US online brokerage that has captured the imagination (and loyalty) of millennial investors, Robinhood, announced that they have officially been permitted to launch in the UK.


Robinhood’s intentions to expand globally are no secret. In 2015, for example, we reported their plans to expand to Australia, and there have been signals for a few years that the UK was also on the roadmap for the no-commission discount broker’s expansion plans. It is a clear indication that in the world of commission-free trading, scale matters.

Nonetheless, unlike in the US, Robinhood’s journey to UK won’t be a cake walk.  There are at least three other firms already offering some form of commission-free trading program in the UK: Revolut, Trading 212 and Freetrade, with Trading 212 having had the largest head start since 2018. Even at home in the US, Robinhood is starting to face new competitors, like JP Morgan, stepping up to offer commission-free trading. And, in Australia, there are also firms already offering commission-free stock trading.

In the wake of Robinhood’s latest announcement, it is becoming abundantly clear that zero-commission trading is no longer an anomaly. Rather, it is now a footrace for new entrants to get into the space, disrupt existing players, and potentially get in front of the global expansion plans of Robinhood.

For Canadian DIY investors, Wealthsimple Trade is the closest to zero-commission trading that we can get. And, in some interesting news that crossed our radars at the end of July, they too are bulking up their technology stack to take on the existing Canadian discount brokerage market. Specifically, a news release at the end of July that mentioned Wealthsimple Trade choosing market data technology provider Xignite could be an indicator that real-time trading quotes are actively under development and coming to Wealthsimple Trade soon. Incidentally, Xignite counts Robinhood as one of its customers, so not only is Wealthsimple Trade tearing a page out of the zero-commission provider’s pricing playbook, but also one from the technology side too.

Although there are no plans or mention of Robinhood expanding to Canada (yet), the lesson from across the globe appears to be that even in comparable markets, there can be multiple zero-commission trade providers. While in Canada there is currently just one, the odds favour there being more than one in the foreseeable future.

If existing Canadian online brokerages were not serious about getting in front of zero-commission trading before, there is now growing international evidence and developments here in Canada that suggest rethinking how to compete in a zero-commission world. New brokerages are figuring out how to provide an exceptional online trading experience at little to no commission cost, and the existing ones who already do are looking beyond their own borders for opportunities to grow.

BMO InvestorLine Staying in the Spotlight

If there’s one lesson to take away from the melee that is the US political system, it’s that being talked about is key to staying on the minds of audiences. This past week, we noted yet another interesting profile of BMO InvestorLine surface on a popular investing website, Benzinga. Earlier this summer, we noted that InvestorLine picked up major coverage from the Financial Post, which offered up an exclusive look at the launch BMO InvestorLine’s new trading platform.

With traditional advertising budgets under fire, BMO InvestorLine appears to be shifting tactics by using public relations (PR) as a tool to set the narrative straight on BMO InvestorLine. Going the PR route means that there are likely to be a lot more eyeballs reading the story than if it were just on the company blog. In fact, there were a few posts about BMO InvestorLine’s latest review/interview on social media, which highlights BMO’s strategy to spread the word about their online trading capabilities.

Ultimately, it is great to see people talking excitedly about one (or more) of the Canadian online brokerages. For the moment, BMO InvestorLine appears to be setting the pace of a new PR-driven strategy.  That said, PR is something that each bank-owned brokerage is generally well equipped to compete against, so BMO InvestorLine may not be uncontested for too long.

Even though we’ve noted an uptick in tweeting and advertising activity from TD Direct Investing as well as from Qtrade Investor recently, it will take more than Twitter to connect with investors. BMO’s latest moves on the PR front show that to boost a tweet’s range, it helps to have one of the big financial information provider names get the social media ball rolling (and having many of the employees help by sharing is great for momentum too).

With fall just around the corner, it’s only going to get trickier for online brokers to stand out with just news releases. To get investors’ attention at this point, and to BMO InvestorLine’s credit, Canadian online brokerages need to come out with features or promotions that get people talking, AND be much more active in reporting what’s happening inside of their own shops. Now, if only there were a channel for them to do that on 😉.

Discount Brokerage Tweets of the Week

From the Forums

Mutually Beneficial?

One DIY investor has questions about the advantages of ETFs over mutual funds. See what fellow forum users had to say in this Canadian Money Forum thread.

Starting Small

A DIY investor wants to know if the learning experience of making small, but risky, investments will eventually result in a payoff, and fellow Redditors chimed in with their opinions. Read it all here.

Into the Close

That’s a wrap on another wild week. There’s a lot of information flying around – from trade rumours to cryptocurrency rallies. With interest rates falling in the US (and around the world) and likely here in Canada too, it’s a particularly important moment for online brokerages to consider how investors will react to an ultra-low interest rate environment and pull their money out of savings and into the stock market.

The one story that happens to be gathering steam though is chatter about interest rate cuts and a recession. With just a few more weeks left to enjoy the summer, it might not be a bad time to unplug. Of course, for those strapped into the roller coaster adventure that is the stock market right now, just make sure to keep your arms in the ride and secure your personal belongings. Good luck & stay profitable!

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Discount Brokerage Deals & Promotions, August 2019

*Updated Aug. 28* As we round the corner into August, most DIY investors are patiently waiting for new discount brokerage promotions to drop. Unfortunately, it seems like most Canadian online brokerages are in summer vacation mode when it comes to offering new deals.

Even so, the summer so far hasn’t been totally silent. HSBC InvestDirect launched a new promotional offer in July and CIBC Investor’s Edge also extended one of their deals until the early portion of August. Perhaps the biggest extension though came from Questrade, which extended their transfer-fee offer yet again, this time pushing the deadline out to the end of September.

With the long weekend almost here, it seems likely that any new offers that want to get a jump on the September rush will be waiting until later this month. We’ve got our radar up and of course, if there are any offers that could benefit other deal hunters, let us know.

Expired Deals

No expired deals to report at this time.

Extended Deals

CIBC Investor’s Edge extended their commission-free trade promotion for just a few more days, extending the offer from July 31st to August 9th.

Questrade’s transfer fee promotion has found yet another life and is now extended until the end of September. See table below for more details.

New Deals

*Update August 28 – Scotia iTrade has a new hybrid offer for prospective account holders. Complete a brief form by October 15, 2019 to be eligible for $6.99 equity and ETF trades until March 1, 2020. You will also receive $50 cash back by January 31, 2020. Scroll down for more details.*

*Update August 28 – If you have an existing Scotia iTrade account, you may be eligible for free trades. Fill out this form by October 15, 2019 to receive 5 commission free trades. You account must be funded with a minimum of $10,000 by October 31, 2019 to qualify for this offer. You are also eligible for 3 free trades when you attend the Scotia iTrade “US Dollar Position” webinar on September 24, 2019.

*Update August 2 – Just when we thought things were going to be a tad quiet heading into a long weekend in August, RBC Direct Investing decided to roll out a tried and tested favourite offer for investors to consider while on vacation. As of the beginning of August, RBC Direct Investing has launched a commission-free trading offer which gives investors 25 commission-free trades which are good for up to one year. Best of all, there’s an easy offer code to remember to access the offer: SPARX. Scroll down for more details.*

Other than that, there were no new deals that launched at the outset of the month, midway through last month HSBC InvestDirect jumped back into the deals pool with a new commission-free trading offer. This promotion offers up 30 commission-free trades to new and existing clients who open an eligible account and doesn’t require a minimum deposit.


Discount Brokerage Deals

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

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 a qualifying account at HSBC InvestDirect and you may be eligible to receive up to 30 commission-free North American equity or ETF trades. No minimum deposit is required for this offer and it is open to new and existing clients. Trades are eligible to be used for up to 60 days. See terms and conditions for full details. n/a 30 commission-free trades 60 days HSBC InvestDirect Summer Offer September 30, 2019
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, 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, 2019
Scotia iTrade Open a new qualifying account and fund it with a minimum of $2500 by October 31, 2019 to be eligible to receive $50 cash back by January 31, 2020. This offer also includes $6.99 per trade commissions until March 1, 2020. Terms and conditions can be found in the offer URL. $2,500 $50 cash back and $6.99 per Canadian and US equity/ETF trade. Cash back will be deposited by January 31, 2020. $6.99 per trade commission pricing active until March 1, 2020. Cash Back Offer Details October 15, 2019
Open a new account and get 25 commission-free equity and ETF trades when you apply the code “SPARX”. $5,000 25 commission-free Equity & ETF trades 1 Year Commission-Free Trade Details August 30, 2019
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 DisnatTransfer 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 none
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2019
BMO InvestorLine Open a new qualifying account or fund an existing qualifying account at BMO InvestorLine with new assets worth at least A) $250,000; B) $500,000 or C) $2M+ and you may be eligible to a cash back reward of up to A) $500; B) $1,000 or C) $2,500. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $250,000 B) $500,000 C) $2M+ A) $500 B) $1,000 C) $2,500 Cash back will be deposited the week of March 16, 2020. BMO InvestorLine Summer 2019 Campaign September 3, 2019

Expired Offers
Last Updated:August 28, 2019 11:49 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 B) $10,000 C) $25,000 D) $50,000 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
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor 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 $5,000 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. $5,000 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 January 2, 2020

Expired Offers
Last Updated: August 1, 2019 17:11 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo September 30, 2019
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 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 $15,000 Transfer Fee Rebate 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 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 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 Desjardins Online Brokerage 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 Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Last Updated: August 1, 2019 17:08 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
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

Expired Offers
Last Updated: August 1, 2019 17:09 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: August 1, 2019 17:10PT
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Discount Brokerage Weekly Roundup – July 15, 2019

When it comes to summer, some people like soft serve and others like their serves to be anything but soft. Ironically, the world of professional sports is just one of the places we’ve found online brokerages wandering into, and certainly not the only place where they’re trying to get into the winner’s circle.

In this edition of the Roundup, we look at one online brokerage’s clever gambit that bettors may want to try their luck at stock trading. From there, we review yet another Canadian discount brokerage that managed to find its way into the media spotlight this month, conveniently ahead of a major feature launch. As always, we’ve served up some sizzling sound bites from DIY investors on Twitter and in the investor forums.

Bettor Safe Than Sorry

Of the many metrics that makes Interactive Brokers stand out relative to its peer firms in the U.S. online brokerage space, one in particular emerges: account growth. Despite the bumps in the market over the past decade, Interactive Brokers has managed to consistently grow its number of net new clients month after month, quarter after quarter, and year after year. It’s a streak that could put a Jeopardy champ like Ken Jennings or James Holzhauer to shame. Like all good things, however, the streak may not last forever, something founder of Interactive Brokers, Thomas Peterffy, telegraphed in the most recent earnings call.

In a strange twist of irony, however, the latest move by Interactive Brokers seems to be inspired somewhat by the same source of success as Holzhauer. As it turns out, Holzhauer is a professional gambler and applied the principles of betting to fundamentally change how Jeopardy has been traditionally played since, well, forever.

Earlier this month, Interactive Brokers announced a rather novel approach to attracting the kind of client that would fit their traditional mold, the speculative investor, by launching a new promotion linked to sports betting. Yes, that’s not a misprint.

As part of a new campaign labelled “bet, learn, win” Interactive Brokers is putting up to $1,000 in commission credits on the line for individuals who sign up for, and place bets on, Interactive Brokers’ new virtual sports betting platform. Again, not a misprint.

The cap on the number of individuals eligible to participate: 2.2 million. Which means that Interactive Brokers is embarking on a massive lead capture program that could help uncover a material number of prospective clients for the online brokerage side of the firm.

Peterffy and Interactive Brokers have spent a lot of time and resources expanding out their financial services ecosystem. Even so, at the heart of their story, they understand active traders, and if there’s one thing that many professional active traders like to do in addition to speculating on markets, it is to bet. On anything. So, it is a calculated venture that individuals who maybe have not yet traded in markets would give it a go after mastering a profitable winning strategy on Interactive Brokers’ sports betting platform. Also, what’s the downside for clients of other online brokerages who might want to give the new virtual platform a go?

Whatever winners win, they get to apply to an Interactive Brokers account in the form of commission credits, up to a maximum of $1,000. The conditions on this promotion are equally interesting. First, while open to just about anyone anywhere (save for a few locations around the world), individuals who are clients of Interactive Brokers prior to June 30th aren’t eligible to apply those winnings for commission credits. This is clearly, then, a play to attract new clients into the Interactive Brokers ecosystem. Next, if you wipe out your virtual sports betting account, you can’t create a new one. So, unlike a lot of other trading simulators, there is no “insert more coins to continue” feature here.

Attracting new clients through the use of stock market simulators is nothing new – in fact just this past week, National Bank Direct Brokerage’s “Biggest Winner” competition in conjunction with Horizons ETFs just wrapped up.

What stands out as remarkable in this case is that Interactive Brokers is: 1. Offering up a promotional offer for commission credits and 2. Directly associating investing/trading with gambling/betting.

In terms of the former, seeing a firm like Interactive Brokers turn to commission credit incentive offers/promotions to attract new clients is a signal that the firm is going to now have to spend more in order to attract new clients to the firm.

Perhaps most interesting, however, is the unequivocal association of investing with gambling. If there has been any kind of taboo in the “marketing” world of investing, it’s to steer clear of any association of investing or trading with gambling. And, in this promotion, it is precisely the activity of gambling that serves as the gateway to trading. The implied message: if you’re really good at gambling, you’re probably good at trading too.

Canadians over the age of 21 who are not already Interactive Brokers clients are eligible to sign up and participate. We even spotted a 604 area code (Vancouver) on the help line numbers, to boot.

No stranger to taking calculated risks, it seems that Interactive Brokers has definitely stacked the odds for success (in the form of attracting new customers) in their favour. As Jeopardy champion Holzhauer would no doubt endorse, approaching the game from a different angle and being willing to make some big bets is one way to get to the winner’s circle.

Wealthsimple Trade in the Spotlight Ahead of TFSA Launch

Two points a trend does not make, but it’s certainly enough to get our curiosity piqued. As we reported on last week, BMO InvestorLine was in the spotlight in the Financial Post, a major financial publication, showcasing the upcoming launch of their new website. Also in the news that week was another online brokerage that is on the minds of many investors (and online brokerages) because of their rock-bottom online trading commissions.

Wealthsimple Trade, the newest online brokerage to step onto the Canadian DIY investing field, was featured in an article (for subscribers only) in the Globe and Mail by Canadian discount brokerage industry expert Rob Carrick.

Unlike the Financial Post coverage piece on BMO InvestorLine, Carrick’s article provided an overview of the newcomer brand, highlighting how it stacks up compared to other Canadian discount brokerages, and what features Wealthsimple Trade currently offers. Also interesting about Carrick’s feature is the reference to the latest J.D. Power & Associates Investor Satisfaction survey comments about vulnerability of the traditional online brokerages to losing millennial clients – especially because of mobile app experience, an area in which Wealthsimple excels relative to many existing brokerages.

One of the interesting things about Wealthsimple Trade is that as of the writing of the Globe and Mail article and this post in the Roundup, registered accounts (like RRSPs and TFSAs) are not fully available. That said, there was chatter on Reddit, as well as an interesting note on the Wealthsimple Trade help page, that indicates that TFSAs are already being rolled out to select clients and that TFSAs will be on track to be fully available at some point in August. RRSPs are still TBD.

For all the features that currently don’t exist at Wealthsimple Trade, the lack of registered accounts is something that has likely held many DIY investors from taking a serious look at the new online broker. That, and a lack of awareness/trust that usually accompanies the new kid on the block.

Nonetheless, they are on the scoreboard, so to speak, with 25,000 client accounts and have a tactical advantage with their user experience on mobile. Millennial investors may not care so much about “historical reputation” as they would about “engaging experiences.”

So, whether it is a coincidence or just great timing, talking about Wealthsimple Trade just ahead of a big feature roll-out is fortuitous. The fact that discussion about this feature showed up on Reddit, a digital channel where Canadian millennials interested in personal finance invariably end up, is a positive signal this feature will be a hit with the target demographic. Of course, with the Globe and Mail also on top of this new player, it seems like older investors will soon catch on to what the cool kids are up to as well.

Discount Brokerage Tweets of the Week

From the Forums

Is Like, 30 Too Old?

These thirty-somethings are contemplating whether or not it’s too late to start an RRSP. Like most individuals, they want to know as much as possible before making such a crucial decision. Click here to see what others have to say.

Ruh- Ruh- Recession?

The yield curve has been inverted for over 30 days now, and this has many people contemplating what precautionary steps to take (if any). For more bearish thoughts, check out this Reddit thread filled with bruised bruins.

Into the Close

That’s a wrap on another week’s worth of action. In spite of the vitriol and political turmoil in the U.S., stock markets powered higher, proving that a steady (invisible) hand continues to steer the ship. Of course, with summer heating up, it’s hard to tell if it’s just the heat or if investors on the sidelines are starting to feel the heat of a little FOMO set in. Regardless, if you’re looking for a bit of shade this summer, apparently that’s going to be easy to find. Stay hydrated & have a profitable week!

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Discount Brokerage Weekly Roundup – July 8, 2019

The deal that everyone has been talking about finally transpired. Of course, the Kawhi trade isn’t the only deal getting attention this past week, as a pair of Canadian discount brokers decided to also step back onto the court with some promotional efforts of their own. So much for a lazy, hazy July.

In this week’s roundup, we lead off with updates on the latest deals and promotions activity and why this is a bullish signal for DIY investors now and heading into the latter part of the year. From there, we take a look at how one bank-owned online brokerage is shifting digital gears and taking their online marketing game to the next level ahead of a big web refresh. As always, we’ll dish up a healthy serving of chatter from DIY investors on Twitter and in the forums.

Guess Who’s Back

After what seemed to be a lull in June, the lazy days of summer in the discount brokerage deals section are officially done. Just a few days into the new month and the summer season, and the deals section has seen activity level pick up with one new offer come to market, as well as the extension of a transfer offer that stirred excitement earlier this year.

The first deal to cross our radar came from an unlikely source – HSBC InvestDirect. As a bank-owned online brokerage that typically doesn’t get a lot of spotlight, the launch of a summer offer is both unexpected and excellent timing.

The offer itself is a commission-free trading offer which gives investors up to 30 commission-free trades to use over the span of 60 days. There are no required deposit minimums to qualify for this offer, so in that regard, it’s definitely appealing to individuals who might not otherwise qualify for the other offers currently available which have higher deposit requirements.

While the value of the offer is somewhat limited, the timing of the launch of this offer is very much on target. With a pull back in offers by other online brokerages, HSBC InvestDirect gets a bigger portion of the deals spotlight and does so at a big discount to other points in the year when they might have to go to market with a much pricier option (such as a cash back offer).

The other competitors in the commission-free trade space right now consist of Questrade, Desjardins Online Brokerage and CIBC Investor’s Edge. Only the latter firm has a comparable set of terms as HSBC InvestDirect with regards to deposit requirements, however, the CIBC offer is slated to expire at the end of July, which would leave HSBC InvestDirect as the only bank-owned brokerage with a commission-free trading offer.

Another interesting observation about this promotion is that it is being positioned cleverly as 60 days of commission-free trading, which in one interpretation, suggests 60 days of unlimited trading commissions (which is definitely not the case). Although subtle, it is a unique way of making the offer seem more appealing that it otherwise would if it simply stated the number of trades.

If nothing else, the extra attention that the current promotion will give to HSBC InvestDirect will help them become better known to DIY investors.

The other big deals development this month (so far) has been the extension of the Questrade transfer fee coverage offer.

As we have reported on earlier in the year, this offer is by far the best value offer for DIY investors with less than the usual minimum deposit requirement of $15K to $25K who are looking to transfer accounts.

Interestingly, over the past year and in particular over the past several months, the transfer fee promotion area has seen increasing competitive activity. Questrade’s offer aside, we’ve observed both the increase in the amount that brokerages are prepared to cover in terms of transfer fees (now with two brokerages offering up to $200 as opposed to the previous standard range of $125 to $150) and the decrease in the minimum deposit amounts required to qualify for this offer (3 brokerages have now lowered their minimum deposit requirement to $15K).

For DIY investors, the latest two moves are a good signal of the health of the competitive online brokerage market and are a positive indicator of things to come. With stock markets pushing new all-time highs, there’s a reasonable chance that more investors currently on the sidelines will be pulled into the markets, meaning it’s likely they’ll be looking to open a new account or start putting capital to work. Lucky for them, there’s at least one more brokerage ready willing to offer an incentive to sweeten the deal.

Banking on Buzz: BMO InvestorLine Previews New Web Platform

If there’s one thing that online brokerage rankings offer Canadian discount brokerages, it’s more time in the spotlight. Not everyone makes it into the winners circle, however, and what is interesting to take note of is how those who don’t make the top of the podium still manage to make headlines. In the case of Qtrade Investor, the reaction was fairly swift, as they published a news release shortly after the announcement of the latest MoneySense rankings in which they highlighted their strong position as a top online brokerage (even though they didn’t land the #1 spot per se).

Another online brokerage which is typically also very savvy at managing the marketing around the rankings is BMO InvestorLine. This go-around, however, instead of positioning themselves as a top bank-owned online brokerage as part of the rankings, they elected to get people talking about their services with a profile of their new platform in an interview with the Financial Post. 

Unlike a traditional news story, however, the latest profile of BMO InvestorLine had components that included the familiar format of a written story as well as promotion on social media and, a new twist, video of the interview with the president of BMO InvestorLine on YouTube.

Having covered numerous website redevelopments and relaunches from online brokerages over the past several years, it wasn’t so much that there is a new website coming – which in and of itself, is worth talking about, given the associated technical and user experience challenges. Instead, it was the way in which the roll-out of the new website is being telegraphed.

This new omnichannel approach to spreading the message about an upcoming feature release signals a shift in the way online brokerages are likely to develop and talk about innovative improvements.

First, for an online brokerage to telegraph the launch of a new website this far in advance is unusual, although not unheard of. With RBC Direct Investing’s launch of their new interface, for example, there were early test versions to ensure that things went smoothly, and news of the upcoming change was sent to clients well in advance to let them know. Unlike independent brokerages, for bank-owned brokerages, continuity between the banking brand and the online investing brand experience (including what it feels like to switch between the two) is important to consider (and to get right).

Another interesting facet of this story is that the Financial Post was given a “behind the curtain” view of the nerve centre of the InvestorLine development hub. In that way, readers of the story – some of whom might be InvestorLine clients (and probably a few competitors) are given a sense of how the team operates and what the brand is doing to keep up with trends – and in some cases even get ahead of them.

As we have identified in the annual look back and look ahead article, one of the most important indicators consumers are likely to gauge an online service by is how “innovative” they are – i.e. how prepared for change are they? And how quickly can they change?

In the conservative world of traditional finance, change has historically been a dirty word, but in the new world of fintech, change is not just a constant but an objective. At the crux of the interview with BMO InvestorLine’s president, Silvio Stroescu, is that BMO InvestorLine is changing and preparing themselves to change with the evolving needs of their clients. With the competition to entice clients to switch heating up, it makes a compelling argument to stay put if your online brokerage is constantly pushing out new features and if those features are delighting customers like you. Two very big “ifs” that a few other online brokerages have demonstrated time and again work when done right.

Taking a big picture perspective, BMO InvestorLine has invested considerable energy and capital into the development and launch of a new web platform. A website three years in the making is an eternity in the internet age, which changes at a timescale now measured in weeks – or as agile teams know – in two week sprints.

For BMO InvestorLine to telegraph this launch, and go through the motions of a lead up that included video, social media and an article, means that when things go live, they’re hoping it will make an impact with consumers. And to ensure it does, they’re committed to marketing it aggressively.

What this latest tease from BMO InvestorLine shows, however, is that something has fundamentally changed about how Canadian online brokerages – including highly competitive bank-owned brands – are prepared to compete.

BMO InvestorLine has demonstrated a fine balance between keeping the project under wraps for long enough that competitors might not catch on, but revealing it ahead of time to build curiosity and interest and demonstrate a level of transparency about the new feature that other brokerages haven’t really been able to do. While it’s not quite a “come at me bro” moment, it’s fairly close.

Perhaps the most interesting thing about this new web platform release is that for the first time in a long time in the online brokerage space in Canada, there’s a genuine curiosity about what will happen next. In addition to launching a website refresh, BMO InvestorLine might have just touched off a new battle in multichannel marketing.

Discount Brokerage Tweets of the Week

 

From the Forums

Million Dollar Baby

A new DIY investor seeks advice on how to invest a large inheritance. See what advice fellow forum users provided in this Canadian Money Forum thread.

Tax Free as a Bird

One DIY investor has questions about how to incorporate a TFSA into their current portfolio. Click here to see what answers the Reddit community provided.

Into the Close

It wasn’t just the ground in California that seemed a bit shaky heading into the end of the week. In spite of the good news on the jobs front, the stock markets in the U.S. were starting to look at the odds of an interest rate cut in much the same way Raptors fans were thinking about Kawhi sticking around the 6ix. Alas, we know how one of those ended. Regardless, with markets trading near all highs, the week ahead should be filled with even more drama than Kawhi-watch. Here’s hoping you don’t get hooped by the volatility this week!

 

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Discount Brokerage Weekly Roundup – July 1, 2019

Happy Canada Day! It’s great to be back in the saddle again and happily there’s great news to report since the last update a couple of weeks ago. With U.S. markets touching new highs, summer is off to a strong start. Interestingly, so too are a couple of Canadian online brokerages, to the point where other online brokers may not be getting time off to just kick back and relax because they’re going to be playing catch up.

In this edition of the roundup, we wade back into a much shallower deals pool for July and profile the latest turnover in offers for DIY investors. From there, we take a look at a popular online brokerage ranking that was recently released and highlight a dark horse contender that is showing signs of becoming a mainstream brokerage of choice for more Canadian investors. In keeping with roundup tradition, we cap things off with a dollop of chatter from the investor forums as well as from DIY investors on Twitter.

Deals & Promotions on Cruise Control

With the new month comes the usual check-in on the deals and promotions front. This month, it seems like Canadian discount brokerages are gearing down and preparing for what will likely be a very competitive fall and winter. For DIY investors, it means that the deals and promotions in July are more of a lazy river rather than wild water adventure of savings.

There were no big deals to announce at the outset of the month (although technically it was Canada Day so often times promotional news gets delayed because of holidays), however, it is noteworthy to see who is left on the field with promotions during July.

Unlike RRSP season where practically all Canadian discount brokerages were offering some kind of incentive offer, this month there are just two major bank-owned brokerages with cash back or commission-free trade offers: CIBC Investor’s Edge and BMO InvestorLine. In the case of Investor’s Edge, their commission-free trade offer is set to expire at the end of July, whereas for BMO InvestorLine, their promotion extends through to the very beginning of September. Aside from these two firms, the other two noteworthy firms with offers of commission-free trades are Desjardins Online Brokerage and Questrade.

In terms of cash back offerings, what is particularly interesting is something we had mentioned in a previous roundup regarding BMO InvestorLine, namely that their latest tiered cash back promotion has a much higher minimum deposit requirement than previous offers or peer offers. A minimum deposit threshold of $250,000 prices quite a few investors out of that offer, but does signal that BMO InvestorLine is interested and willing to create incentives for individuals with sizable portfolios to give BMO InvestorLine a try. What is also interesting about the upper level of this offer, namely the $2M+ deposit range, is that there aren’t any competitor offers at this level and it is likely the first time that there is a cash back offer for a deposit of this size. Previously the high-water mark was deposits of $1M+ so anyone bringing over more than that would simply have to make do with the bonus offered at the top end of the tiered range.

For those intent on opening an account with less than $250,000 there are still a couple of strong offers from either Questrade or CIBC Investor’s Edge that offer up free trades or cash back.

That said, even though we are not anticipating a watershed of deals to hit the market this summer, it is hard to imagine the field of Canadian online brokerages allowing only four main players to remain unchallenged until September. The resurgence of interest in Bitcoin, a healthy IPO market, and signs of a “melt up” in the stock markets mean that investors may find another reason to step off the sidelines and into the markets this summer. Further, based on the performance of several online brokerages in the latest MoneySense rankings (see next story), there is now  greater impetus for follow up promotion activity.

For now, however, we’re on the lazy river ride – so best to kick back and relax for as long as possible until the competition picks up again.

Best Canadian Online Brokerages for 2019 Announced

With the return of summer, it’s also time again for the annual MoneySense magazine Canadian online brokerage rankings for 2019. As with previous years, financial services research firm Surviscor provided the analysis for these rankings, and provided seven different categories in which different online brokerages were considered to be “the best online brokerage” for something.

This year, the best online brokerage overall according to these rankings was Questrade, which was a close second in last year’s rankings. While the numerical scores weren’t released this year, it was interesting to note how close the two firms were last year. Interestingly, it wasn’t necessarily who came out on top this year, but rather who entered and exited the top five.

MoneySense Best Online Brokerage Rankings: 2018 vs 2019
Rank 2018 2019
1 Qtrade Investor Questrade
2 Questrade Qtrade
3 Scotia iTRADE TD Direct Investing
4 BMO InvestorLine Interactive Brokers
5 BMO InvestorLine

 

The table above shows the best online brokerages for 2018 compared to the best online brokerages for 2019 and while the selection is largely the same (albeit in a different order), this year saw Scotia iTRADE exit the top group and Interactive Brokers enter. In fact, for the 2019 rankings, Interactive Brokers managed to come in at fourth place, ahead of BMO InvestorLine.

There are two important takeaways from the shift observed in this year’s rankings. First, despite Scotia iTRADE lowering their standard commission rates to the widely adopted ~$9.99 level, they nonetheless were displaced from the rankings by a lower-cost competitor. Second, and perhaps most importantly, Interactive Brokers has now started to become a part of the mainstream investor rankings.

After years of having to sit on the sidelines because it was perceived to be an online brokerage for sophisticated or active investors only, Interactive Brokers Canada is starting to be considered a “mainstream” choice. Although not a whole lot about the Interactive Brokers interface has become any simpler per se, the addition of registered accounts like a TFSA and RSP have made them a viable option for many Canadian DIY investors willing to roll up their sleeves and learn how to navigate the Trader Workstation.

One very interesting observation from this year’s online brokerage rankings is that when it came to designating the best online brokerage for customer service, while Questrade scored first, there was a three-way tie for second between Qtrade Investor, RBC Direct Investing and Interactive Brokers.

Based on historical performance and assessment of customer service, it is nothing short of stunning to see Qtrade Investor in a tie with Interactive Brokers, as the two firms could not have more opposite reputations in terms of client service. In terms of Qtrade Investor, there is a well documented trail of accolades of its commitment to service, and almost the same is true for the absence of “hand holding” service from Interactive Brokers. So, to see both of these firms tie for second best in terms of service will definitely raise eyebrows across the industry.

With the inclusion of Interactive Brokers in the Globe and Mail online brokerage rankings, and now cracking the top five in the MoneySense magazine rankings, it’s becoming clear that the online brokerage field in Canada will have to contend with Interactive Brokers’ feature set and pricing more so than at any time in the past.

For DIY investors looking for assistance in making a decision on which online brokerage is best, these rankings are of mixed value.

On the one hand, there is a short list of five firms that have been considered to be “the best overall,” implying that all things being equal, these firms are not necessarily a bad choice. Conversely, with seven categories of best online brokerage, it highlights how certain brokerages do certain things better than others.

Looking at firms who appeared in multiple categories, to Questrade’s credit, they were either the top or in the top two spots in five of the seven categories. Qtrade Investor also appeared in a top two finish in four categories. Curiously, Interactive Brokers earned a top two finish in three categories compared to TD Direct Investing which earned a top two finish in two categories. Nonetheless, TD Direct Investing outranked Interactive Brokers. This last point is especially relevant when considering the progress Interactive Brokers has made in becoming more of a “mainstream” contender, because it suggests that Interactive Brokers may be very close to a top three (or higher) finish overall unless something very innovative is launched by a competing online brokerage.

For the rest of the online brokerage field that did not achieve a top ranking in one of the seven categories, it appears that there is going to be a challenge to overcome the value propositions already on the table. Change in the online brokerage space is largely evolutionary rather than revolutionary, and even with a zero-commission player on the field in Wealthsimple Trade, there are still other brokerages being considered to be better for fees.

The big picture emerging for DIY investors is that services, features, and value will have to improve at firms not ranked in the top five. Those firms will have to move decisively to win over customers who are starting to hear more and more positive rankings and ratings from firms who previously were “outsiders” like Questrade and Interactive Brokers. We’re very much looking forward to seeing which online brokerages start to step up their game in response to a shifting power structure in the Canadian online brokerage market.

Discount Brokerage Tweets of the Week

From the Forums

Golden Years

A poster on RedFlagDeals seeks advice on ways to help their parents save for retirement in a few years’ time. Click here to see what strategies fellow forum users recommended.

Striking a Rebalance

A newcomer to the DIY investing world has questions about the best way to rebalance a portfolio. See what advice other investors provided in this Reddit thread.

Into the Close

That’s a wrap on the Canada Day edition of the roundup. This will be an interesting week for traders given the holiday for Canadians to kick things off, and the holiday for U.S. Independence Day later on the week. One thing is for sure, there will undoubtedly be fireworks – whether it’s because of what’s going to happen now that the tariff standoff is starting to thaw or because of where Kawhi Leonard decides to go next. Have a great week!

 

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Discount Brokerage Deals & Promotions – July 2019

*Updated: July 8* Despite all the fanfare and celebration that typically accompanies the beginning of July, it seems like many Canadian online brokerages are taking a bit of a break from the promotional game. Heading into the first official month of the summer, the discount brokerage deals section appears to be keeping its cool with two big offers expiring in June and no new offers coming to market just yet.

Of course, it being Canada Day, online brokerages are closed at the time of posting this update so there may be something interesting to emerge in the early part of July. Even so, this is one deals pool that we’re not holding our breath in at this point.

Despite rallying markets, a rebound in cryptocurrency and hot IPOs, there’s been muted participation in the deals section – which is not to say that there aren’t promotions in the works – but for the time being, it’s more of a lazy river than a wild water park of savings for DIY investors.

It’s not all bad news for investors or the online brokerages who are still hanging in there with promotional offers, however. There are still a handful of offers – ranging from commission free trades to cash-back offers – for DIY investors to choose from.

As always, we’ll be keeping an eye out on the deals activity during the summer months but if there are any you think would be great to share with readers that we’ve not posted yet, please mention them in the comments or let us know.

Expired Deals

There were two noteworthy offers that expired in June. The first was the RBC Direct Investing cash back offer. This promotion was fairly short-lived and offered up between $100 and $1,000 depending on the amount deposited (ranging between $25,000 and $500,000+).

The second big offer to finally expire was Questrade’s transfer fee coverage promotion. It was a definite game changer in that there was no stated minimum deposit required to have transfer fees covered. Now that the offer has expired though, Questrade is reverting back to the standard minimum deposit requirement of $25,000 to have transfer fees waived.

Extended Deals

*Update July 22 – CIBC Investor’s Edge have extended their commission-free trades promotion for an extra 9 days.  See table below for more details.*

*Update July 8 – Much like a cat, the Questrade transfer fee promotion has found yet another life and is now extended until the end of September. See table below for more details.*

No deals were extended at the outset of July.

New Deals

*Update July 8 – HSBC InvestDirect jumped back into the deals pool with a new commission-free trading offer. This promotion offers up 30 commission-free trades to new and existing clients who open an eligible account. There is no minimum deposit required for this offer. See table below for more details*

No new deals crossed the wire at the beginning of July, however there was a new deal from BMO InvestorLine which did launch in June and which is a unique offer in that it targets a very high minimum deposit tier for investors to qualify. This offer is a cash back promotion that offers between $500 and $2,500 cash back for deposits ranging from $250,000 to $2M+. It is the first time in recent memory that an online brokerage has created a cash back tier for a deposit level so high. Also, it is one of the highest starting points for an offer – perhaps a signal that BMO InvestorLine is targeting higher deposit amounts across the summer (given that this offer is live until the beginning of September).

Discount Brokerage Deals

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

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 a new qualifying account with CIBC Investor’s Edge and you may be eligible to receive 100 commission-free trades. Eligible trades include equity, ETF and options trades (per contract charges still apply). Commission-free trades are good for up to 90 days after account opening date. Use promo code EDGE28 when signing up. Be sure to read terms and conditions for full details. n/a 100 commission-free trades 90 days CIBC Investor’s Edge Free Trade Promotion August 9, 2019
Open a qualifying account at HSBC InvestDirect and you may be eligible to receive up to 30 commission-free North American equity or ETF trades. No minimum deposit is required for this offer and it is open to new and existing clients. Trades are eligible to be used for up to 60 days. See terms and conditions for full details. n/a 30 commission-free trades 60 days HSBC InvestDirect Summer Offer September 30, 2019
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, 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, 2019
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 DisnatTransfer 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 none
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2019
BMO InvestorLine Open a new qualifying account or fund an existing qualifying account at BMO InvestorLine with new assets worth at least A) $250,000; B) $500,000 or C) $2M+ and you may be eligible to a cash back reward of up to A) $500; B) $1,000 or C) $2,500. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $250,000 B) $500,000 C) $2M+ A) $500 B) $1,000 C) $2,500 Cash back will be deposited the week of March 16, 2020. BMO InvestorLine Summer 2019 Campaign September 3, 2019

Expired Offers
Last Updated: July 22, 2019 11:30 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 B) $10,000 C) $25,000 D) $50,000 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
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor 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 $5,000 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. $5,000 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 January 2, 2020

Expired Offers
Last Updated: July. 1, 2019 17:45 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo September 30, 2019
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 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 $15,000 Transfer Fee Rebate 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 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 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 Desjardins Online Brokerage 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 Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Last Updated: July 8, 2019 16:30 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
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

Expired Offers
Last Updated: July 1, 2019 17:30 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: July 1, 2019 17:30PT
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Discount Brokerage Weekly Roundup – June 10, 2019

Never mind the trade tariffs being on or off, or the Formula 1, there are more than a few Canadians on edge for the Raptors to take the NBA championships. The optimist can taste the victory and the pessimist says don’t count the dino eggs before they hatch. One thing is for sure, it’s not only courtside seats that have climbed in value, as online brokerages here in Canada are also courting some premium clientele.

In this edition of the roundup, there’s more than a few sports metaphors layered into a first story that provides an update on the latest promotional offer to cross the deals wire – and what it might mean for the other online brokerages through the summer. Next, we recap some fascinating highlights from a conference in New York which featured a glimpse into the playbook of online brokerages south of the border. As usual, we’ll serve up a healthy dose of DIY investor chatter from Twitter as well as the investor forums.

New BMO InvestorLine Promo Bets Bigger is Better

If you thought courtside Raptors tickets were going to cost a pretty penny, the newest promotion from BMO InvestorLine has managed to make those tickets seem like a bit of a bargain.

Earlier this month, BMO InvestorLine launched a bigger, bolder cash back promotion for the summer that offers between $500 and $2,000 for deposits that range from $250,000 all the way to $2M+. If those numbers seem a little high, it’s because they definitely are. First, on the cash back side, the $2,000 cash back is certainly a new high for cash incentives to bring in new business. Earlier this year, we witnessed Qtrade Investor pony up $1,500 cash back for a deposit of $1M but now that we’re at the $2,000 threshold for a deposit bonus, one gets the feeling that there’s certainly further to go from here.

On the business end of that deal, the requirement for a $2M deposit puts BMO InvestorLine into rarefied air, as there haven’t been any deals in recent memory that have reached a deposit tier at that level. Historically there has only been a very select group of online brokers that had an advertised promotion that included a deposit tier of $1M, and doing so has usually been met with a certain degree of skepticism from DIY investor forums as to the ROI for bringing over that scale of business.

As such, it will be interesting to watch how other online brokerages respond to this, especially as we saw RBC Direct Investing’s cash back promotion officially expire last week. That leaves BMO InvestorLine as the sole bank-owned online broker with a cash back promotion going and the only brokerage currently with an offer catering to higher net worth clients.

To beleaguer a tired sports metaphor, the ball really is now sitting in the court of the other online brokerages as far as promotional offers are concerned. BMO InvestorLine’s latest offer provides great marketing sound bites to get people curious, so it will be up to peer firms to step up their deals game or risk getting sidelined for the summer. With BMO going after the higher net worth individuals specifically, this could be a summer of blockbuster deals, so long as you can afford the price of admission.

Brokerages in the Big Apple

Last week, many of the big names in the US online brokerage space converged in New York city for the annual Sandler O’Neill & Partners Global Exchange & Brokerage Conference. The theme of this year’s conference was “growth” and featured several in-depth interviews with senior leaders in the industry.

Of particular interest were interviews with Karl Roessner, CEO of E*TRADE Financial, Thomas Peterffy, founder and outgoing CEO of Interactive Brokers, and Joseph Moglia, Chairman of TD Ameritrade. Each of these interviews offered a unique perspective on the particular state of each organization and how these leaders saw opportunities for growth as well as the specific challenges confronting their industry as a whole.

One of the points that came up in both the conversation with Peterffy (Interactive Brokers) and Moglia (Ameritrade) was reference to Robinhood and how to compete against a provider of “zero commissions.” In the case of Interactive Brokers, Peterffy provided a pointed answer to the real cost of zero commission trading, and noted that retail investors who don’t ask why their commissions don’t cost anything up front are capable of being sold a lot more than just free commissions (and not in a good way). Ultimately, according to Peterffy, with commission-free trading (and even in many cases in US conventional trading), retail investors’ orders end up being sold to high frequency traders who in turn compensate online brokerages. In contrast, Interactive Brokers does not sell order flow to HFTs and so Peterffy’s position on the “Robinhood” model is that ultimately he is confident enough in the trajectory and value that Interactive Brokers can offer to active traders that he is not too concerned about Robinhood.

Also on the topic of Interactive Brokers, Peterffy also revealed that the super-top-secret-game-changer for Interactive Brokers is due out next month. While this is purely speculative, the “hints” that were dropped related to efforts to restore IB’s lagging growth rate. To clarify, Interactive Brokers has been a growth juggernaut in the US online brokerage market but Peterffy related at this conference that growth in accounts is now down to tracking 16% compared to the well over 20% to 30% year/year growth. So, this so-called new feature is intended to help bring customer growth to over 20%.

In terms of what E*TRADE saw as a path to growth, there is definitely a focus on higher touch wealth service experiences that would compliment the existing self-directed investor market. What was most interesting about the conversation with Roessner was the reiteration that the notion of an online broker simply sticking to order execution is not grounded in the realities of the market. What that means is that online brokerages have had to get more into other realms of the financial management space than was the case when they first opened shop. In the case of E*TRADE, it has meant a move into providing some traditional banking services, including offering a high interest savings product for investing clients who want to park cash within E*TRADE rather than at a different firm. Further to that direction, Roessner also mentioned that E*TRADE would be rolling out a line of credit product that uses the value of the client’s portfolio as collateral. Another important point highlighted by Roessner is that banking and finance is about cultivating strong relationships, something that, ironically, Peterffy disagreed with (he preferred to focus on automation and price). Nonetheless, relationship building is a core component with clients that E*TRADE is actively trying to pursue.

Finally, when it came to TD Ameritrade, this was a fascinating discussion to track the historical evolution of Ameritrade and to get a higher level view on the business and the industry. Moglia provided a particularly interesting point about Ameritrade’s trajectory to focus on a few key factors, one of them being assets under management (Ameritrade now has over $1 trillion in AUM) and staying true to client-focused principles. Having grown Ameritrade through several key acquisitions, this conversation provided a unique vantage point on how this firm has managed to bulk up and bolt on new companies so that it can handle a wide spectrum of business conditions while remaining competitive (such as zero commission trades). Probably the most fascinating is that Moglia, who was once CEO of Ameritrade, recounted that zero commission trades have been a concern since 2001 and provided a much calmer read on the “common sense” of cutting commission costs to zero.

What these interviews highlighted was that, at least in the US, online brokerages are not standing still and are being pushed by other competitors as well as by shifting consumer expectations to evolve quickly. The playbook for Canadian online brokerages is pretty much being spelled out – offer DIY investors high interest savings and more services that a typical bank-owned broker would offer, focus on gathering assets to weather the competitive storm, and be prepared to invest substantially and strategically in technology. Expansion for each firm was a hot topic, and over the course of the summer it will be fascinating to see potentially game-changing new features come to market.

Discount Brokerage Tweets of the Week

 

From the Forums

Life on the Outside

A DIY investor living outside of Canada has questions about the tax implications of investing with Canadian currency. See what fellow forum users had to say in this RedFlagDeals thread.

Tricks of the Trade

One longtime DIY investor wants to know if the advice they’re getting from advisors is sound, and other Redditors chime in with insights of their own. Read more here.

Into the Close

That’s a wrap(tors) for this edition of the roundup. The roundup will be going on a hiatus for a few weeks as there will be a new, game-changing arrival to the Sparx (aka my) family. We’ll keep tracking stories and developments, monitoring social conversations & trends in the meantime. Here’s hoping there’s lots to spark joy about in the coming weeks!