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CIBC Investor’s Edge

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Discount Brokerage Deals and Promotions – January 2015

*Updated Jan 26/15* Welcome to 2015! For many, the start of a new year is the time to mark a new beginning. For Canada’s online brokerages, however, the theme coming into January isn’t so much about being new as it is about being present.

While many of the deals and promotions listed in December were poised to expire at the end of the month, it appears that they would ‘expire another day’.   Curiously, of the 5 6 offers that were extended out into 2015 only the offer from Scotia iTrade (their 100 free trade offer) had its expiry date bumped to January 9th. Whether this is a clue to something possibly coming soon or simply a strange mini-extension, the good news is that it won’t be too long till we find out.

At the outset of January there is one new offer added into the mix, once again from Questrade. Their newest offer (see below for more details) is a commission-free trading offer aimed at clients with deposits of $25,000 or more. Another offer that landed mid-December that warrants mentioning is National Bank Direct Brokerage’s sizeable cash back offer – interestingly aimed at depositors with at least $20,000. Interestingly, brokerages competing for deposits of $20,000 to $25,000 include CIBC Investor’s Edge, NBDB and, now, Questrade.

As the holidays and vacations wear off, and the ramp up to RRSP season begins, we anticipate seeing some major activity from the various discount brokerages. Be sure to check back again throughout January as we monitor the developments with various deals and promotions.

*Update: BMO InvestorLine has extended their tablet app free-trade offer deadline to February 26th. Their ‘smile’ promotion is still scheduled to expire January 18th.

Expired Deals

At the time of writing, there are four offers that officially expired going into January:

  • RBC Direct Investing’s 20 commission-free trade offer
  • Questrade’s 30 free trade offer
  • Questrade’s $250/$100 cash back offer
  • Scotia iTrade’s $500 cash back (or 500 free trade) offer
  • *Update Jan 22/15* BMO InvestorLine’s “Smile Promotion” $250 cash back offer

Extended Deals

Rather than let them slip into history, Canadian discount brokerages sought to extend the shelf life of several big offers, some well into 2015 and others just over a week. Here’s the list of extended offers:

  • Scotia iTrade’s refer-a-friend offer extended to March 15th
  • BMO InvestorLine youth offer extended to March 31st
  • *Update Jan 5/15* BMO InvestorLine tablet app offer extended to February 26th
  • Questrade $50 prepaid Visa offer extended to February 27th
  • Scotia iTrade 100 free trade offer extended to January 9th
  • Desjardins Online Brokerage (Disnat) $300 commission credit offer extended to March 31st

 New Deals

The only new promotion for January by a Canadian discount brokerage was one launched by Questrade. Specifically their “new year’s” offer enables qualified clients to have 25 commission-free trades which are eligible for use throughout the year. Unlike many commission-free trade offers which have a shelf life of anywhere between 30 and 90 days, this offer is unique given how long clients have to use the commission-free trades (the deadline to use the free trades is December 31st 2015). While the number of trades is not necessarily as high as other offerings, the length of time to use the trades stands out. The caveat, however, is that there is a minimum deposit of at least $25,000 required to qualify. See the table below for additional details.

*Update Jan 11/15* Questrade has just added two additional offers (see below). For one of their offers, they are bringing back the unlimited commission-free trade promotions which last from one to three months depending on the deposit made. The other offer (the “Multi Leg” promotion) enables qualified clients to trade up to 100 trades commission-free.

*Update Jan 12/15*

  • Questrade has resurrected their iPad Mini offer in time for RSP season.  For a deposit of $100,000 or more, individuals can be eligible to receive an iPad Mini 2 (16GB, wi-fi only). In order to receive the iPad Mini, individuals have to fund their account and make at least one commission-generating trade. For more information see the table below.
  • Scotia iTrade has launched a massive offer on the heels of their previous deal expiry.  Scotia iTrade is now offering a modified cash back or commission-credit promotion for deposits from $15,000 to $1,000,000 – yes that’s not a typo.  Scotia iTrade is now the only brokerage to scale up the promotional offers beyond the $250,000 ceiling of other brokerages and with this latest promotion they’ve topped their previous offer (500 trades for $500,000).  The current offer actually goes beyond just commission rebates or cash back, there is also a 90 day free use of their platform (FlightDesk) and a free 2 day educational seminar with their education partner Larry Berman.  The list of terms and conditions for this offer is quite extensive so be sure to read it fully if you’re considering the deal. Some particulars to pay attention to are the rebate period for commission credits (180 days) and minimum balance requirements.
  • RBC Direct Investing has also stepped into the deal arena with a commission-rebate offer.  The promotion enables qualified applicants to receive 20 commission-free (commission fees will be rebated) trades that are good for use for up to one year.  One of the highlights of this offer is that no minimum deposit is required in order to qualify.  See table below for further details.

*Update Jan 16/15*

  • Qtrade has launched a new RRSP-themed contest.  Individuals opening (and funding) or contributing to an RSP account with at least $2,000 by March 2nd, 2015 could be eligible to win a $500 contribution to their account each month for a year.  Given that this is a contest, it is not listed in the table below however for full details, click the terms and conditions link here.  One thing to consider of course is the eligible contribution room within your RRSP to receive the extra top up.
  • Questrade has launched yet another offer, making them the brokerage offering the most promotions this month. Their latest DIY investing offering is a tiered offer unlimited commission-free trading depending on the amount deposited. For deposits of $50,000 or more, Questrade is offering up to three months of commission-free trading; for $25,000 – $49,999 Questrade is offering two months of commission-free trading and for $1,000, individuals can be eligible for one month of commission-free trading.  See the table below for more details.
  • Virtual Brokers has stepped back into the deals & promotions space by offering an RRSP-themed offer. Individuals who deposit at least $5,000 in new equity can qualify to receive 50 commission-free equity trades. For deposits of $10,000 in new equity, Virtual Brokers is offering 100 commission-free equity trades.  This is one of the most competitive commission-free offers for the deposit levels. See the table below for more details.

*Update Jan 22/15*

  • BMO InvestorLine has replaced their $250 cash back offer (the Smile Promotion) with a new RSP-focused promotion with a higher cash back component. Like the promotion it is replacing, the latest offer from BMO InvestorLine (live as of Jan 19/15) requires a deposit of at least $100,000 to qualify. Individuals who qualify for this promotion can receive $300 cash back. See the table below for additional details and deadlines.
  • HSBC InvestDirect is now also offering up its own RSP season themed offer.  In their case, the deal appears to have gone line early in January but has only recently made it onto their website.  The offer states that eligible clients can receive up to 50 commission-free equity trades which are good for up to 88 calendar days.  It is noteworthy that the commission-free trades apply to equity/ETF trades and not to options or fixed-income trades. Also, according to the terms and conditions there is no minimum deposit required nor is there a stated promo code. See table below for more details.

*Update Jan 26/15*

  • One of Canada’s largest online brokerages, TD Direct Investing, has now also jumped into the deals pool this month.  Their latest commission-rebate offer features trading commission rebates on three tiers of deposits.  For deposits of between $25,000 – $49,999 eligible accounts receive up to 50 commission-free trades; for deposits of $50,000 – $99,999, eligible accounts can receive up to 100 commission-free trades and for deposits of $100,000 or more, up to 200 trades may be rebated. This offer applies to equity and options trades.  See table below for additional information.

Discount Brokerage Deals

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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
Open a new account with HSBC InvestDirect and you could be eligible to receive up to 50 commission-free equity/ETF trades for 88 calendar days. Be sure to read the terms and conditions for full details. n/a 50 commission-free trades 88 days (payout for rebate is within 90 days of end of free trade period) HSBC InvestDirect 2015 Winter Offer March 2, 2015
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion March 31, 2015
Open a new qualifying account with RBC Direct Investing and you may be eligible to receive up to 20 commission-free trades. A promotion code is required for this offer; click on the the link for the promotional page to generate a code. Be sure to read the terms and conditions for full details on this offer. n/a 20 commission-free trades 1 year Terms & Conditions & RBC Direct Investing Trade Free for 1 Year Promotion Page March 2, 2015
BMO InvestorLine Download the BMO InvestorLine iPad app and you could qualify for up to 5 commission-free trades. This offer is open to new and existing clients and can be combined with other offers. Clients must have a qualifying account in order to be eligible. Read full terms and conditions for details. n/a 5 commission-free trades ($50 max value) 30 days Tablet Trades Promotion February 26, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open and fund a qualifying account (TFSA, Cash/Margin or RRSP) at Questrade with at least A) $1,000 or B) $10,000 and you may be eligible to receive A) 10 or B) 100 commission-free trades. Use promo code 100FREEML15W when registering. Be sure to read the terms and conditions for this offer. A) $1,000 B) $10,000 A) 10 commission-free trades B) 100 commission-free trades 60 days Multi-leg Offer February 27, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least A) $1,000 B) $25,000 or C) $50,000 to receive either A) 30 days B) 60 days or C) 90 days of unlimited commission-free stock & options trades. Use promo code UNLIMITEDW15 when signing up. Be sure to read the terms and conditions for more information. A) $1,000 B) $25,000 C) $50,000 Unlimited commission-free trades during associated period. A) 30 days B) 60 days C) 90 days Questrade Unlimited Trading Offer March 2, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least A) $1,000 B) $25,000 or C) $50,000 to receive either A) 30 days B) 60 days or C) 90 days of unlimited commission-free stock & options trades. Use promo code UNLIMITEDRSP when signing up. Be sure to read the terms and conditions for more information. A) $1,000 B) $25,000 C) $50,000 Unlimited commission-free trades during associated period. A) 30 days B) 60 days C) 90 days Questrade RRSP Promotion March 2, 2015
Open a new account (TFSA, Margin, RRSP or FX/CFD) and place at least one trade within 60 days of opening and you may be eligible to receive a $50 prepaid Visa card from Questrade. Use promo code VISA50. Be sure to read terms and conditions for full details on this offer $5,000 $50 Visa gift card Cards will be mailed within 40 business days of reaching account funding requirement. $50 Prepaid Visa Card Offer February 27, 2015
Open and fund a new account with at least A) $5,000 or B)$10,000 in net new equity and you may be eligible to receive A) 50 or B) 100 commission-free trades. Use promo code “RRSP15” when signing up for an account to qualify. Be sure to read the terms and conditions of the offer for full details. A)$5,000 – $9,999 B)$10,000+ A) 50 commission-free trades B) 100 commission-free trades (max commission per trade $6.49) Trades must be used by September 30, 2015 (commissions to be rebated by October 2015) RRSP Free Trade Promotion February 27, 2015
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 March 15, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999, B)$50,000 – $99,999, C)$100,000 – $249,000, D) $250,000 – $499,999, E) $500,000 – $999,999, or F) $1,000,000+ and you may be eligible to receive a corresponding cash-back or commission rebate. For commission-free trades use code: WTT15 or for cash rebates use code: DL5RP. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. This offer also includes a free ‘swing trading’ course with Larry Berman and 90 days free of FlightDesk. A)$15,000 – $49,999 B)$50,000 – $99,999 C)$100,000 – $249,000 D)$250,000 – $499,999 E)$500,000 – $999,999 F)$1,000,000+ A) 50 commission-free trades OR $50 cash B) 100 commission-free trades OR $100 cash C) 250 commission-free trades OR $250 D) 350 commission-free trades OR $350 E) 500 commission-free trades OR $500 F) 1000 commission-free trades OR $1000 180 days for commission-free trades Cash back to be deposited by November 30, 2015. 1000 Free Trade Offer March 31, 2015
Scotia iTrade Open a new account with Scotia iTrade with either A) $15,000 – $99,999 B) $100,000 – $499,999 or C) $500,000+ and you may be eligible to receive either A)100 free trades or $50 cash B)250 free trades or $250 or C)500 free trades or $500 cash. Accounts must be opened prior to December 31st, 2014. New clients use code: FATD14E for free trades and code: MONF14 for cash back. Existing clients must call client service (1-888-769-3723) to qualify. Be sure to read terms and conditions regarding minimum balance requirements and other details. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trades or $50 cash B) 250 commission-free trades or $250 cash C) 500 commission-free trades or $500 cash For commission-free trades: 180 day limit For cash back: payout occurs by August 31, 2015 Cash back + Free trade offer December 31, 2014
Open a new account and fund it with at least (A) $20,000 or (B)$100,000 and NBDB may provide up to (A) $500 or (B) $1,000 in commission rebates for qualifying accounts. Use promo code “CashBack2015” when signing up. Be sure to read the terms and conditions for eligibility and refund dates. A)$20,000 – $99,999 B)$100,000+ A)$500 commission rebate B)$1,000 commission rebate 90 days (rebate of commissions depends on sign up date and is outlined on terms/conditions) Cash Back Offer March 31, 2015
Open a new account with TD Direct Investing with at least A) $25,000 B) $50,000 or C) $100,000 and you may be eligible to receive rebates on up to A) 50 B) 100 or C) 200 equity and/or options trades. Be sure to read full terms and conditions A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000+ A) 50 commission-free trades B) 100 commission-free trades C) 200 commission-free trades 60 days (commission rebates to be issued on Aug. 15/2015) TD Direct Investing Free Trade Promotion March 27, 2015
Open a new account or fund an existing account at CIBC Investor’s Edge with at least A)$25,000-$49,999 B)$50,000 – $99,999 or C)$100,000+ and you may be eligible to receive A)$100 cash back and 25 free trades; B)$200 cash back and 50 trades or C)$300 cash back and 100 free trades. Be sure to read the terms and conditions for full details on this offer. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,00+ A) $100 cash back + 25 commission-free trades B) $200 cash back + 50 commission-free trades C) $300 cash back + 100 commission-free trades Cash back payout occurs within 30 days of account funding; Time limit to use commission free trades is 60 days Investors Edge Cash Back and Free Equity Trades Offer February 28, 2015
Open a new account (TFSA, Margin, RRSP) with at least $25,000 and you may be eligible to receive 25 trades commission free. Use promo code TRADEFREE2015 when signing up to qualify. Be sure to read the terms and conditions for details on this offer. $25,000 25 commission-free trades (commissions rebated within 10 days of trade) Trades may be used up until December 31st 2015. Trade Free For a Year Offer January 30, 2015
Disnat Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $50,000 $300 commission credit 6 months Disnat $300 Commission Credit Promo March 31, 2015
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,000 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). Contact InvestorLine for full terms and conditions. October 30, 2015
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $300 cash back. Use the promo code RSP2015 when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $300 cash back Payout occurs after 6 months RSP 2015 Promotion March 31, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least $100,000 to be eligible to receive an iPad mini. Use promo code IPADMINI15Q2 when signing up. Read the terms and conditions for more information about eligibility. $100,000 iPad Mini 2 (16gb wi-fi only) [retail value ~$370 including taxes] iPad Mini will be sent within 60 days of account being funded and 1 commission-generating trade being placed. iPad Mini Offer March 13, 2015
Expired Offers: The following offers have expired this month and are shown for reference only. #colspan# #colspan# #colspan# #colspan# #colspan# #colspan#
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $15,000 before December 31, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions. $15,000 100 commission-free trades ($999 value @ $9.99 commission rate) 60 days Scotia iTrade 100 free trades + FlightDesk January 9, 2015 *Expired*
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $250 cash back and a rebate of commissions on up to 25 trades made within 50 days of opening the account. Use the promo code SMILE when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $250 cash back + 50 commission-free trades (rebated) 50 days (payout for cash back and commission rebate occurs after 6 months) Smile Promotion January 18, 2015 *Expired*

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Scotia iTrade Transfer $15,000 or more to Scotia iTrade from another Canadian brokerage, and iTrade may pay up to $150 in transfer fees. $150 $15,000 1000 Free Trade Offer March 31, 2015
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $150 $25,000 Transfer Fee Promo none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more in equity to Virtual Brokers and they’ll cover the transfer-out fees up to $150. $150 $25,000 Transfer Fee Rebate Terms & Conditions March 31, 2015
Transfer $25,000 or more into a new TD Direct Investing account and they will cover up to $150 of transfer fees. $150 $25,000 TD Direct Investing Free Trade Promotion March 27, 2015
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $150 $50,000 Disnat $300 Commission Credit Promo March 31, 2015
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Discount Brokerage Weekly Roundup – December 19, 2014

*Edited Dec. 22/14* It looks like December isn’t going to go quietly. With huge volatility coming into the markets, traders are certainly cheering. Canada’s discount brokerages are also not wont to stand still going into the year end. Whether they’re gearing up for a busy 2015 or pushing hard into the finish line of 2014, this is definitely a year for the record books all around.

In this week’s roundup, we take a look at a major compilation of Canadian online brokerage’s perspectives on the year that was and the year upcoming. Following that we take a look at one online brokerage that had a change at the top, a brokerage that decided to launch an early Christmas gift to potential clients, some news from a technical analysis provider and round out with some festive forum banter.

Online brokerage year in review & preview

2014 has been a wild ride for DIY investors. It started with a boom and is ending with a bang.

This past week we released our exclusive compilation of perspectives from 9 Canadian online brokerages. Here is the list of discount brokerages that participated (the links go to their particular submission):

Regardless of their size or focus, when compared alongside one another, there was a wealth of information about the year that has just passed.

Without question, commission price lowering was one topic that stood out almost across the board. As each discount brokerage showed, however, price wasn’t the only place they sought to evolve. New features, order types, services, platforms, investor education offerings and service experiences were among the other areas that brokerages were all actively working to improve in.

Something that was really special about this compilation was what certain brokerages were able to share about what’s coming around the corner for 2015.

For example, in our recent interview with Nancy Paquet, President of National Bank Direct Brokerage, she shared with us the focus that NBDB will be placing on investor education – however they’re not alone. In addition to NBDB, brokerages such as Desjardins Online Brokerage, Scotia iTRADE and TD Direct Investing are all highly active in terms of providing investor education and plan to be even more so in 2015.

What was interesting to learn from the year in review compilation was that Credential Direct may be looking to augment its educational resources as well as the news that Jitneytrade has been partnering with educational providers. Even for several brokerages that didn’t participate in the year-end review, we’ve learned that investor education is going to be a priority in 2015.

As a lead into the holiday season this year, we thought it would be great to offer up the top 5 themes we saw emerge from the year end compilation. With so much information provided by the brokerages, we’ve put together a fun way to learn about what the brokerages had to say. Here’s a teaser from day one of the top 5 countdown. We’ll be releasing one a day over the next 5 days exclusively on our twitter feed.

Qtrade announces leadership changes

This past Wednesday, Vancouver based online brokerage Qtrade Financial announced that CEO Scott Gibner and President and COO Joe Perrin will leave the organization as of January 16, 2015.

Bill Packham, who is the Co-Chair of the Qtrade Board of Directors, will take over as interim CEO, as the firm seeks to make a permanent appointment.

The announcement comes just weeks after Qtrade earned top billing in the annual Globe and Mail Online Broker Rankings. In a statement, Qtrade’s Board Co-Chair and Director, John Sibley, thanked Gibner and Perrin for their “vision, inspiration and dedication to Qtrade.”

Packham brings along several years of executive experience having served as the Co-Chair of Qtrade’s Board of Directors since the completion of the arrangement transaction between Qtrade and Desjardins Group in April 2013. He is also Executive Managing Director, Wealth Management and Life and Health Insurance with the Desjardins Group.

National Bank Direct Brokerage launches new deal

December continues to be a big month for news. In the deals & promotions department, National Bank Direct Brokerage boldly launched a rather sizeable commission-rebate offer going into the holiday season – perhaps as an early Christmas gift to potential new clients. The offer provides up to $500 in commission fee rebates for deposits of $20,000 or more and rebates of up to $1,000 for deposits of $100,000 or more. Click here to read more about this promotion.

A technical win for Recognia

The maker of the most popular technical analysis platforms among Canadian brokerages, Recognia, was acquired this week by Paris-based investment research firm Trading Central. Headquartered in Ottawa, Recognia actually services over 45 brokerages in 12 countries with their various software platforms. Most DIY investors would recognize Recognia’s flagship ‘Technical Insight’ tool as part of the suite of research/tools for technical analysis provided by their online broker.

Event Horizon

Things have quieted down significantly on the events front going into the Christmas holidays. Here is the lone event featured for next week:

Dec. 23 (Tues) Scotia iTRADE – ETFs 101 with Horizons ETFs (Online)

From the Forums

 Chatter on Interactive Brokers

Last week we wrote about Interactive Brokers starting to offer registered accounts. Slowly news has filtered through to Canadian investor forums so we thought we’d provide a couple of threads that discuss Interactive Brokers’ latest move:

Battle of the Banks

In this post from the reddit Personal Finance Canada thread, one user is considering going with CIBC Investor’s Edge, TD Direct Investing or RBC Direct Investing. Find out what redditors (who normally champion the smaller brokerages) had to say about dealing with the bigger bank-owned brokerages.

That’s a wrap for this week’s roundup. We’re right around the corner from Christmas so hopefully everyone makes it onto the nice list this year – although for the not so nice, getting some coal may not be the worst thing at this point. On another note – it’s also a milestone week for the ending of a great show – the Colbert report. In case you missed it, here is a much bigger and more awesome send off than anyone on TV could really pull together.

Happy Holidays and Season’s greetings to all from the crew at SparxTrading.com. We’ll see you again (soon)!

 Editor’s Note: The list of participating brokerages in the year in review has been updated to include a submission from CIBC Investor’s Edge which was received after the original publication date.

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Exclusive: A Year in Review and Look Ahead from Canada’s Online Brokerages

Pic_Blog_201412_YearInReview_LeadImage_B*Edited Dec. 22/14* What an exciting year to be a DIY investor. As an active observer and commentator on the landscape of Canada’s online brokerages, we’ve seen some dramatic changes this past year. Whether it was reduction in commission pricing, changes in account types or enhancements to platforms, user experience or investor education, 2014 presented no shortage of exciting developments.

With so many online brokerages, DIY investors now enjoy more choice in terms of who they want to end up doing business with and how they want to trade online. The flip side to the benefit of having so much choice, however, is actually keeping up with all of the innovation that’s taking place amongst online brokerages.  Every time a new feature, like a platform or a new order type, comes out, there is a lot of information that goes with it.

In their own words

So, in keeping with our continued efforts to track and structure the information coming from Canadian online brokerages, we thought it would be great if we gave Canada’s online brokerages the opportunity to give investors their own take on 2014 and also to provide everyone with a preview of where 2015 is heading.

We reached out to all the brokerages and were more than pleased with the response we received to participate. Our request was simple. We asked that brokerages provide SparxTrading.com readers with a recap of 2014, perhaps with milestones or achievements as well as to provide some direction as to what’s around the corner for next year.

What follows is a really interesting (in our opinion) compilation of voices of 8 9 of Canada’s most influential and visible online brokerages – from bank-owned online brokerages to independent brokerages. It is clear from reading these submissions that 2014 was a busy year everywhere. Nobody was standing still. Even more interesting, however, are the hints and previews online brokerages have shared for 2015.

Table 1: Canadian Online Brokerages Participating in the Year in Review

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Click on a logo to read the review of that particular brokerage. #colspan# #colspan#

Getting up to speed

Heading into RRSP deadline season and the first half of 2015, we know that there will be many individuals who are either considering online investing or who are already with a provider and would just like to better understand the landscape of choices that are out there.

This compilation is a great starting point to learn more about each of the providers listed. They are certainly a diverse group of providers which is reflected in the different ways in which each has written their submission. In our opinion, this diversity will become one of the biggest themes for 2015.

With standard commission pricing having dropped significantly across several brokerages, the focal point will turn to standing out. Our view on this is that ‘standing out’ will be achieved by being ‘outstanding’. That means improved service, pricing (yes, we still think there’s room to go lower for some), features and user experience.

We believe that in 2015, Canada’s online brokerages will work even harder to differentiate themselves from one another. And, as was the case in 2014, we are looking forward to tracking these developments and helping our readers make sense of them all as they unfold.

Click the logos above or the page numbers below to read this year’s submissions.

Editor’s Note: We received a submission from CIBC Investor’s Edge after our original publication date and so we have included their submission as part of this series. For functionality purposes, however, we have placed their submission at the end of the series rather than in alphabetical sequence.

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Discount Brokerage Deals and Promotions – December 2014

*Updated Dec. 17, 2014*

With the start of December coming on the heels of two of the biggest deals days of the year, the Canadian discount brokerage deals & promotions section is filled to the brim with offers from online brokerages. Unlike the pictures on television or Twitter, however, there was no crush of people attempting to get in on a sale on a brokerage account – although that didn’t stop at least one brokerage from trying to catch the deal-frenzy wave.

Heading into the last month of the year, the deals activity did pick up slightly through November with three updates to the deals pool. Most notably, an offer from RBC Direct Investing was spotted that signals their re-entry into the promotions space until the end of this year.

At the outset of December, it appears that Questrade has continued with its strategy of offering up promotions/incentives that are timely, as they launched a holiday-themed offer alongside several of their existing offers.

Of course, the news wasn’t all cheerful for deals, as a pair of offers from TD Direct Investing and Questrade ended by the time December rolled around as well as the iPad Mini offer from Questrade.

The last month of the year is also a bit of a milestone month for many active offers. There are at least 7 offers that are set to expire by year’s end signaling a potentially exciting start to 2015. That said, there’s still lots of time left for some interesting announcements to be made. So even though we’ve made this list, we’ll be checking it twice, and, hopefully we’ll find something nice.

Expired Deals

The deals that expired coming into December were the monster offer by TD Direct Investing for 200 commission-free trades and Questrade’s 100 commission-free trade offer. Also on the way out (for now) was the iPad Mini deal from Questrade.

Extended Deals

While it was left off the deals section for some time, the Scotia iTrade refer-a-friend deal finds its way back onto the list as the expiration date has been updated/extended until the end of December.

New Deals

*Update: Dec. 17, 2014 – National Bank Direct Brokerage has just announced a huge commission rebate offer of up to $1,000 for deposits of $100,000 or more or $500 for deposits of $20,000 or more.  NBDB has been quiet in terms of deals for several months, however this newly launched promotion is a significant one compared to other offers in the same deposit range.  The offer is open to new and existing clients however according to the terms and conditions, individuals who have participated in any other promotions with NBDB since January 2014 are not eligible.   Also worth noting, the total amount of the rebate includes any transfer rebates (of up to $135) that individuals may take advantage of if switching providers. This means that the amounts remaining (if using the transfer fee rebate) would be at least $365 or $865 (depending on the deposit size). The window for rebates to be applied are subject to a schedule outlined in their terms and conditions, however essentially qualified clients can have trade commissions (stocks, options & ETFs) made within 90 days of opening the account refunded. The terms and conditions are remarkably brief so be sure to read them through if considering this offer. Additional details are in the table below.*

The newest promotion at the outset of the month comes from Questrade in the form of a ‘holiday’ themed offer. Questrade is offering new and existing clients up to 30 commission free trades for a deposit of at least $1,000. The commission-free trades are good for 30 days – just in time for that other season trader’s know comes this time of year – tax loss selling season.

The deals that joined the list of offers mid-month last month included offers from BMO InvestorLine for 5 commission-free trades for using their new mobile app; RBC Direct Investing’s offer (mentioned above) of 20 commission-free trades for a new account opening and finally a cash-back offer by Questrade to compete at the higher deposit levels.

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer 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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion January 5, 2015
Individuals opening a new account with RBC Direct Investing by December 31st may be eligible to receive a commission-rebate on their first 20 trades. Use promo code QC20 or visit the info page link for a valid code. Be sure to read the terms and conditions on this offer. n/a 20 commission-free trades 90 days Full offer information can be found here . For terms and conditions information click here. December 31, 2014
BMO InvestorLine Download the BMO InvestorLine iPad app and you could qualify for up to 5 commission-free trades. This offer is open to new and existing clients and can be combined with other offers. Clients must have a qualifying account in order to be eligible. Read full terms and conditions for details. n/a 5 commission-free trades ($50 max value) 30 days Tablet Trades Promotion January 5, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open a new account (TFSA, Margin or RRSP) by December 30 2014 with a deposit of at least 1,000 and you could be eligible to receive up to 30 commission-free trades with 30 days of opening/funding your account. Use promo code 30trades2014 when signing up. Be sure to read terms and conditions for full details. $1,000 30 commission-free trades 30 days 30 commission-free trades December 30, 2014
Open a new account (TFSA, Margin, RRSP or FX/CFD) and place at least one trade within 60 days of opening and you may be eligible to receive a $50 prepaid Visa card from Questrade. Use promo code VISA50. Be sure to read terms and conditions for full details on this offer $5000 $50 Visa gift card Cards will be mailed within 40 business days of reaching account funding requirement. $50 Prepaid Visa Card Offer December 31, 2014
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 December 31, 2014
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $15,000 before December 31, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions. $15,000 100 commission-free trades ($999 value @ $9.99 commission rate) 60 days Scotia iTrade 100 free trades + FlightDesk December 31, 2014
Scotia iTrade Open a new account with Scotia iTrade with either A) $15,000 – $99,999 B) $100,000 – $499,999 or C) $500,000+ and you may be eligible to receive either A)100 free trades or $50 cash B)250 free trades or $250 or C)500 free trades or $500 cash. Accounts must be opened prior to December 31st, 2014. New clients use code: FATD14E for free trades and code: MONF14 for cash back. Existing clients must call client service (1-888-769-3723) to qualify. Be sure to read terms and conditions regarding minimum balance requirements and other details. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trades or $50 cash B) 250 commission-free trades or $250 cash C) 500 commission-free trades or $500 cash For commission-free trades: 180 day limit For cash back: payout occurs by August 31, 2015 Cash back + Free trade offer December 31, 2014
Open a new account and fund it with at least (A) $20,000 or (B)$100,000 and NBDB may provide up to (A) $500 or (B) $1,000 in commission rebates for qualifying accounts. Use promo code “CashBack2015” when signing up. Be sure to read the terms and conditions for eligibility and refund dates. A)$20,000 – $99,999 B)$100,000+ A)$500 commission rebate B)$1,000 commission rebate 90 days (rebate of commissions depends on sign up date and is outlined on terms/conditions) Cash Back Offer March 31, 2015
Open a new account or fund an existing account at CIBC Investor’s Edge with at least A)$25,000-$49,999 B)$50,000 – $99,999 or C)$100,000+ and you may be eligible to receive A)$100 cash back and 25 free trades; B)$200 cash back and 50 trades or C)$300 cash back and 100 free trades. Be sure to read the terms and conditions for full details on this offer. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,00+ A) $100 cash back + 25 commission-free trades B) $200 cash back + 50 commission-free trades C) $300 cash back + 100 commission-free trades Cash back payout occurs within 30 days of account funding; Time limit to use commission free trades is 60 days Investors Edge Cash Back and Free Equity Trades Offer February 28, 2015
Disnat Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $50,000 $300 commission credit 6 months Disnat $300 Commission Credit Promo December 31, 2014
Open and fund a new account at Questrade with at least A)$50,000 or B)$100,000 by December 30, 2014 and you may be eligible to receive either A)$100 cash back or B)$250 cash back. Use promo code: CASHBACK250W when opening the account. Be sure to read the terms and conditions for full details. A)$50,000 B)$100,000 A)$100 cash back B)$250 cash back Cash back payout occurs after 60 days. Questrade Cash Back Offer December 30, 2014
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,000 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). Contact InvestorLine for full terms and conditions. October 30, 2015
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $250 cash back and a rebate of commissions on up to 25 trades made within 50 days of opening the account. Use the promo code SMILE when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $250 cash back + 50 commission-free trades (rebated) 50 days (payout for cash back and commission rebate occurs after 6 months) Smile Promotion January 18, 2015

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to Credential Direct and they will pay the transfer-out fees up to $150. If you wish to switch out of Credential Direct after 90 days they will waive their transfer out fee. See link for more details. $150 $15,000 Transfer Free Promo December 15, 2014
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $125 $25,000 Transfer Fee Promo none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $150 $50,000 Disnat $300 Commission Credit Promo December 31, 2014
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Discount Brokerage Deals and Promotions – November 2014

*Updated Nov. 25* November is the month that many bargain hunters wait for all year long. The phenomenon of ‘Black Friday’ has taken on a life of its own with anybody who sells anything trying to ride the wave of deal hunter enthusiasm. Traditionally Canadian online brokerages have avoided the big discount day type of promotion, however last year Questrade jumped into the Boxing Day deal game with their own special promo. Given some of Questrade’s recent hints of upcoming service launches as well as the timing of expiry of an existing offer in late November, this month could herald a number of surprises.

While it is becoming a familiar refrain at the beginning of the month, no ‘new’ deals launched at the outset doesn’t mean that more aren’t coming. Heading into November the theme appears to be extending current offers, with at least 7 offers going to the end of this year if not out into early 2015.

There are offers that we’re already aware of that we’re working to get additional details on so there will be updates to this section you’ll want to check back for soon. In the meantime, let’s dive in.

Expired Deals

Technically speaking, only one deal met this criteria, and it is a familiar one in this section. Scotia iTrade’s “refer-a-friend” offer is posted on their website as having expired (at the time of writing this post) however historically it has yet to be allowed to stay there for too long.

Extended Deals

There were a number of extensions on offers which came mostly from BMO InvestorLine this month. Their young investor (yes up to age 35 is considered young) promotion has been extended through to January 2015 as has their ‘Smile’ promotion. BMO InvestorLine’s refer-a-friend offer has also been extended to October 2015 however the terms/conditions for this offer are only accessible to clients at this time so, although we mention it in our selection below, there won’t be a link to the terms/conditions page.

New Deals

*Update Nov. 22* BMO InvestorLine has launched a promotion to encourage its users to download and try the mobile/iPad app. BMO InvestorLine is offering qualified individuals up to 5 commission free trades within 30 days of downloading the app.  The 5 free trades offer is open to new and existing clients and can be combined with existing offers so it is possible to ‘stack’ this deal on top of another.

*Update Nov. 18* RBC Direct Investing  commission-free trading promotion for new account openings has been added to the mix. Specifically, qualified applicants can receive their first 20 trades (placed within 90days of opening the account) commission-free. See table below for additional details.

*Update Nov. 18* Questrade has also launched yet another deal this month – this time a cash-back offer.  Individuals can receive either $100 cash back or $250 cash back depending on the deposit they place into their account.  Individuals who sign up for this promotional offer will have to maintain the qualifying balance for a period of 6 months. See table below for additional details.

There are no new deals released at the outset of November however the offer from CIBC Investor’s Edge following their price drop was one of the biggest to land on the playing field. Questrade also offered up a $50 Visa gift card which we’re including in this month’s list of promotions. There is also another offer that we know of from a popular brokerage (that we can’t name yet) that we expect to announce as soon as we’ve got confirmation on terms and conditions.

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer 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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion January 5, 2015
Individuals opening a new account with RBC Direct Investing by December 31st may be eligible to receive a commission-rebate on their first 20 trades. Use promo code QC20 or visit the info page link for a valid code. Be sure to read the terms and conditions on this offer. n/a 20 commission-free trades 90 days Full offer information can be found here . For terms and conditions information click here. December 31, 2014
BMO InvestorLine Download the BMO InvestorLine iPad app and you could qualify for up to 5 commission-free trades. This offer is open to new and existing clients and can be combined with other offers. Clients must have a qualifying account in order to be eligible. Read full terms and conditions for details. n/a 5 commission-free trades ($50 max value) 30 days Tablet Trades Promotion January 5, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open a new account (TFSA, Margin or RRSP) by November 20 2014 A) $1000 or B) $10,000 to receive either A) 10 commission-free trades or B)100 commission-free trades. The promo code 100LOWCOM14F must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information. A)$1,000 B)$10,000 A)10 free trades B)100 free trades 60 days 100 commission-free trades November 20, 2014
Open a new account (TFSA, Margin, RRSP or FX/CFD) and place at least one trade within 60 days of opening and you may be eligible to receive a $50 prepaid Visa card from Questrade. Use promo code VISA50. Be sure to read terms and conditions for full details on this offer $5000 $50 Visa gift card Cards will be mailed within 40 business days of reaching account funding requirement. $50 Prepaid Visa Card Offer December 31, 2014
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
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $15,000 before December 31, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions. $15,000 100 commission-free trades ($999 value @ $9.99 commission rate) 60 days Scotia iTrade 100 free trades + FlightDesk December 31, 2014
Scotia iTrade Open a new account with Scotia iTrade with either A) $15,000 – $99,999 B) $100,000 – $499,999 or C) $500,000+ and you may be eligible to receive either A)100 free trades or $50 cash B)250 free trades or $250 or C)500 free trades or $500 cash. Accounts must be opened prior to December 31st, 2014. New clients use code: FATD14E for free trades and code: MONF14 for cash back. Existing clients must call client service (1-888-769-3723) to qualify. Be sure to read terms and conditions regarding minimum balance requirements and other details. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trades or $50 cash B) 250 commission-free trades or $250 cash C) 500 commission-free trades or $500 cash For commission-free trades: 180 day limit For cash back: payout occurs by August 31, 2015 Cash back + Free trade offer December 31, 2014
Open a new account or fund an existing account at CIBC Investor’s Edge with at least A)$25,000-$49,999 B)$50,000 – $99,999 or C)$100,000+ and you may be eligible to receive A)$100 cash back and 25 free trades; B)$200 cash back and 50 trades or C)$300 cash back and 100 free trades. Be sure to read the terms and conditions for full details on this offer. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,00+ A) $100 cash back + 25 commission-free trades B) $200 cash back + 50 commission-free trades C) $300 cash back + 100 commission-free trades Cash back payout occurs within 30 days of account funding; Time limit to use commission free trades is 60 days Investors Edge Cash Back and Free Equity Trades Offer February 28, 2015
Open and fund a new account with at least $50,000 at TD Direct Investing and you may be eligible to receive up to 200 commission-free trades plus 60 days of free use of the premium data for the advanced dashboard. Trades must be completed within 60 days. Be sure to read the terms and conditions for full details on this offer. $50,000 200 commission-free trades (or $2,000 of commission rebates – whichever comes first); Advanced dashboard premium data rebate ($87) 60 days to use trades (rebate may be paid by May 30, 2015) Commission-free Trade Offer November 21, 2014
Disnat Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $50,000 $300 commission credit 6 months Disnat $300 Commission Credit Promo December 31, 2014
Open and fund a new account at Questrade with at least A)$50,000 or B)$100,000 by December 30, 2014 and you may be eligible to receive either A)$100 cash back or B)$250 cash back. Use promo code: CASHBACK250W when opening the account. Be sure to read the terms and conditions for full details. A)$50,000 B)$100,000 A)$100 cash back B)$250 cash back Cash back payout occurs after 60 days. Questrade Cash Back Offer December 30, 2014
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,000 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). Contact InvestorLine for full terms and conditions. October 30, 2015
Open and fund a new account with at least $100,000 at Questrade and execute at least one commissionable trade and you may be eligible to receive an iPad Mini. Use promo code IPADMINI14F. Be sure to read terms and conditions for full details. $100,000 iPad mini (Wi-Fi only, 16 GB) iPad mini will be ordered within 30 days of eligibility criteria being met. Questrade iPad Mini Promo November 30, 2014
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $250 cash back and a rebate of commissions on up to 25 trades made within 50 days of opening the account. Use the promo code SMILE when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $250 cash back + 50 commission-free trades (rebated) 50 days (payout for cash back and commission rebate occurs after 6 months) Smile Promotion January 15, 2015

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to Credential Direct and they will pay the transfer-out fees up to $150. If you wish to switch out of Credential Direct after 90 days they will waive their transfer out fee. See link for more details. $150 $15,000 Transfer Free Promo December 15, 2014
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $125 $25,000 Transfer Fee Promo none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $150 $50,000 Disnat $300 Commission Credit Promo December 31, 2014
Transfer $50,000 or more to TD Direct Investing from another brokerage and you may be eligible to receive up to $150 in transfer fee rebates. $150 $50,000 Commission-free Trade Offer November 21, 2014
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Special Series: An In-Depth Look at the 2014 J.D. Power Canadian Discount Brokerage Rankings – Part 1

This year’s J.D. Power & Associates’ Canadian discount brokerage rankings were recently announced. As with years past, the rankings and the underlying survey they’re based on, provided a unique window into the collective voice of Canadian self-directed investors and their perceptions of Canada’s online discount brokerages.

In the first of our multi-part special series on this year’s discount brokerage rankings, we take a look at the survey that produces the rankings, including how it measures investor satisfaction as well as some of the unique features of this year’s survey and results.

The next part of our series will drill down into the actual performance of Canada’s brokerages on this year’s ranking and what these results mean for the online brokerages as a whole as well as self-directed investors.

A Quick Recap of the 2014 Canadian Discount Brokerage Rankings

When it comes to the various Canadian discount brokerage rankings, the J.D. Power & Associates evaluation occupies a special niche. Unlike other rankings that focus on direct evaluation of features, the J.D. Power ranking of Canadian brokerages is unique because its is the based on the systematic organization of opinions, experiences and perceptions of discount brokerage clients – what they call the “voice of the customer”.

Between mid-May and mid-June of this year, the Investor Satisfaction Survey polled just over 2500 clients from a number of Canadian discount brokerages to find out just how satisfied (or dissatisfied) these investors were with their current online brokerage. In total, 7 Canadian discount brokerages ended up having sufficient data to participate in the rankings (compared to 11 last year), with an average investor satisfaction score of 736 (compared to an average of 724 last year).

The firms covered in this year’s ranking (along with their overall investor satisfaction score) are shown in the chart below.

J.D. Power & Associates Canadian Discount Brokerage Rankings 2014
While numbers help to make the assessment and ranking easier, the process behind how these numbers are generated is actually fairly complex.   (For those who want a more detailed explanation of the survey and scoring system, click to read our overview on the J.D. Power Investor Satisfaction Survey here)

It is useful, however, to get a quick sense of how these numbers are derived to better understand what they mean.

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Discount Brokerage Weekly Roundup – October 3, 2014

Leaves and temperatures aren’t the only things falling this time of year.  Apparently markets and commissions at Canada’s discount brokerages are dropping too.  Even though we’re barely into the fall and have just crossed into October, the battle for discount brokerage supremacy is back in full swing after a late summer lull.

For this week’s roundup we’ve raked in some of the most colourful stories starting with a big price drop from a bank-owned brokerage, a long awaited feature launch, a selection of hearty DIY investor-themed stories and interesting stats on retail investor trading activity from a US brokerage.  To close-out the roundup we’ll take a look at what investors were saying in the Canadian financial forums.

If a Commission Price Falls in the Woods…

It most certainly does make a sound.  This past week we reported that one of Canada’s bank-owned online brokerages, CIBC Investor’s Edge, may be lowering their standard commission rate to $6.95 for all clients regardless of trading volume or account size.  While the timing of the move is likely to come in the near future, internal sources suggest it could be announced as early as Monday.

Despite a price drop by RBC Direct Investing to kick-off the year, the latest price drop by CIBC Investor’s Edge takes the competition among discount brokerages to a whole new level.  By substantially beating the current standard commission prices (which are now just under $10 per trade) at most of their bank-owned peers (and some independent brokerages), Investor’s Edge is pushing the other brokerages to go all in on the pricing or step up substantially on service and platforms to justify the cost differential.

Coming this Fall

Even though there have been many dates thrown around for the launch of the long awaited US dollar registered accounts to be implemented at online brokerage giant TD Direct Investing, it appears that the date has finally been narrowed down to several weeks from now (possibly by the end of November).

Early reaction from DIY investors is a mixture of excitement and skepticism. Should it turn out to be “different this time” brokerages that have heavily advertised the USD registered accounts as a selling point (such as Questrade and Virtual Brokers) will have to go back to the drawing board to sway investors from the allure of bank-affiliated convenience and now lower fees.

#FinLit

This past week also saw several articles of interest to the DIY investor crowd come from the Globe and Mail.  The first was an excellent article by Rob Carrick on the tenuous connection between providing financial advice and the selling of financial products.  Carrick does a great job of articulating the challenges of navigating the financial advice landscape and how investors need to be both cautious and skeptical when seeking out financial counsel from an “advisor”.

In keeping with the advice theme, another article from the Globe and Mail on the use of social media, Facebook specifically, for investment advice could be risky for consumers as well as for providers.  We’ve taken a look at social media and investing information previously, however the conclusion is always largely the same: always be careful when taking investment advice from the internet.

Finally, the price war between brokerages also got a bit coverage on the heels of the Qtrade price drop last week.  In this article (available to Globe subscribers only), Qtrade’s CEO Scott Gibner provides a bit of context behind their latest move to try and get ahead of the big banks. Of course as CIBC Investor’s Edge may soon show, Qtrade’s wager may need some recalibration.

The Starter Menu

Starting a new month means that we reset the game clock on the deals activity across the Canadian discount brokerage landscape.  Coming into October the deals and promotions were relatively stable with Questrade shuffling a few deals out the door and bringing other in their place. One notable new entrant into the deals section was Credential Direct who is bringing back their ‘risk-free trial’ offer where they’ll cover the transfer fees (up to $150) for clients who want to switch over.  After 90 days if clients are not satisfied with the move, Credential Direct will waive their exit fee ($125).   Given their recent pricing drop, and that of their regional neighbour Qtrade, it should be interesting to see what other promotions start to emerge as Canada’s online brokerages try to get creative in attracting in new clientele.

Cashing In

Once again Interactive Brokers’ trading figures have been released and they show they’re grinding higher across a number of performance metrics.  Notably, they saw a substantial increase in the number of Daily Average Revenue Trades (DARTs) of 21% (year over year) and 17% (month over month). Trading tends to pick up with market volatility so the spike may be reflective of greater uncertainty with stocks.

Also of interest, the average commission per equity trade of $2.27 and order size of just under 2000 shares.  While not a straight apples-to-apples comparison, looking at the fact that earnings and account growth are positive at Interactive Brokers while commission pricing is very low makes a case for commission pricing continuing to fall here in Canada.

From the Forums

There was quite a bit of discount brokerage related commentary this past week across the Canadian investor forums.  Here is a sampler of some of the interesting posts that we saw pop up in several spots covering the same/similar topics.

TD Direct Investing Launching US Dollar Registered Accounts

This was definitely a big story given the size of TD’s market share of the discount brokerage market.  Here’s a list of several forum threads and the buzz already forming:

CIBC Investor’s Edge Lowering Commission Pricing

Reactions on the Canadian personal finance reddit page as well as the investing thread of Red Flag Deals were generally positive (who doesn’t like to save money?) to the news of a lowered standard commission fee.

Qtrade Lowering Standard Commission Fees

There were a couple of forums that this announcement stirred up.  A particularly insightful thread on the financial wisdom forum is worth a look to see how seasoned investors’ view the latest move by this brokerage.  (There was also a reddit post here)

Phew. That does it for this week’s roundup.  While the week ended on a less flashy note than a George Clooney wedding, a busy week and a weekend always make for a perfect couple – too bad that romance doesn’t last longer. Fantasy sports fans good luck in your hockey drafts, and for non-fantasy sports players, find a way to make this a stunning weekend!

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Discount Brokerage Deals and Promotions – October 2014

*Updated October 9, 2014*

Savvy traders understand that there’s always a bull market somewhere.  Even though the recent pull back in the major stock markets and indices suggests investors may be cooling off, Canadian discount brokerages have a different idea, especially when it comes to promotions.

We began last month with a brief lull in the number of offers pitching 50 or more free trades.  Halfway through September, however, that changed dramatically when Scotia iTrade launched one of its largest offers to date: 500 commission-free trades (or $500 cash back) for deposits of $500,000 or more.   This was a unique offer (which we detailed in an article here), because it signaled a decisive shift by Scotia iTrade to get the attention and assets of investors with substantial portfolios.

The deals on the calendar at the start of the month arrived in late September and look to be around until at least the end of the current month if not longer.  A noteworthy transfer deal also showed up from Credential Direct, a sign that they too may be stepping up their efforts at competing with other Canadian brokerages.

Expired Deals

The end of September saw 2 deals from Questrade expire: their Cash Back Promo and RESP Offer.

Extended Deals

The deal that got extended this past month was Questrade’s 100 free trade offer with a new deadline of October 30th.

New Deals

*Update Oct. 9, 2014: The deals are heating and this time one of Canada’s largest discount brokerages, TD Direct Investing, has been spotted promoting a commission-free trade offer. For individuals depositing at least $50,000, the full offer includes up to 200 commission-free trades (maximum rebate of $2,000),  a rebate for their advanced dashboard premium streaming package (maximum rebate of $87) and for those who transfer funds in, coverage for up to $150 of transfer fees. The trades must be placed within 60 days of the account opening in order to be considered eligible for the rebate.  Also, global equity trades are not eligible as part of this offer.

*Update Oct. 6, 2014: As part of their big price drop announcement, CIBC Investor’s Edge has also dropped a major deal into play with their newest offer that combines free trades AND a cash back component too.  Unlike many of the deals we’ve seen before, this is a fairly aggressive offering which certainly got our attention and will likely do the same for consumers and other brokerages.  For starters, a deposit of $25,000 in assets qualifies an individual for $100 cash back and 25 free trades; a deposit of $50,000 – $99,999 qualifies for $200 cash back and 50 free trades; and deposits of $100,000+ qualify for $300 cash back and 100 free trades. Given the different tiers for this offer, CIBC Investor’s Edge is coming out swinging at the other discount brokerages big and small and so we expect some kind of interesting responses to come up in short order.

As was the case last month, this month isn’t starting with any new deals announced as of the beginning of the month.  Midway through September, however, a number of deals did appear.  One of the deals we’ve mentioned already was the Scotia iTrade ‘500 commission-free trade’ offer, however there was also the infamous iPad Mini offer from Questrade which is back again and a transfer fee offer from Credential Direct that showed up.  Specifically, Credential Direct is offering a transfer fee promo where individuals can have the transfer fee rebated if they switch to Credential Direct from another broker (with at least $15,000) and Credential Direct will waive the fee in case that clients wants to ‘switch out’. This offer is something we’ve seen before from Credential Direct however coupled with their recent commission price drop, there is a good possibility that we may see more from them in terms of promotions this upcoming year.

As always we appreciate hearing about and sharing deals that we may have missed.  As a general guideline, deals that we can include directly on our listing have to be open to all potential clients but users may post links to offers in the comments section that might apply to certain readers

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer 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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion October 31, 2014
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open a new account (TFSA, Margin or RRSP) by October 30 2014 A) $1000 or B) $10,000 to receive either A) 10 commission-free trades or B)100 commission-free trades. The promo code 100LOWCOM14F must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information. A)$1,000 B)$10,000 A)10 free trades B)100 free trades 60 days 100 commission-free trades October 30, 2014
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 October 31, 2014
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $15,000 before June 30, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions. $15,000 100 commission-free trades ($999 value @ $9.99 commission rate) 60 days Scotia iTrade 100 free trades + FlightDesk December 31, 2014
Scotia iTrade Open a new account with Scotia iTrade with either A) $15,000 – $99,999 B) $100,000 – $499,999 or C) $500,000+ and you may be eligible to receive either A)100 free trades or $50 cash B)250 free trades or $250 or C)500 free trades or $500 cash. Accounts must be opened prior to December 31st, 2014. New clients use code: FATD14E for free trades and code: MONF14 for cash back. Existing clients must call client service (1-888-769-3723) to qualify. Be sure to read terms and conditions regarding minimum balance requirements and other details. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trades or $50 cash B) 250 commission-free trades or $250 cash C) 500 commission-free trades or $500 cash For commission-free trades: 180 day limit For cash back: payout occurs by August 31, 2015 Cash back + Free trade offer December 31, 2014
Open a new account or fund an existing account at CIBC Investor’s Edge with at least A)$25,000-$49,999 B)$50,000 – $99,999 or C)$100,000+ and you may be eligible to receive A)$100 cash back and 25 free trades; B)$200 cash back and 50 trades or C)$300 cash back and 100 free trades. Be sure to read the terms and conditions for full details on this offer. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,00+ A) $100 cash back + 25 commission-free trades B) $200 cash back + 50 commission-free trades C) $300 cash back + 100 commission-free trades Cash back payout occurs within 30 days of account funding; Time limit to use commission free trades is 60 days Investors Edge Cash Back and Free Equity Trades Offer February 28, 2015
Open and fund a new account with at least $50,000 at TD Direct Investing and you may be eligible to receive up to 200 commission-free trades plus 60 days of free use of the premium data for the advanced dashboard. Trades must be completed within 60 days. Be sure to read the terms and conditions for full details on this offer. $50,000 200 commission-free trades (or $2,000 of commission rebates – whichever comes first); Advanced dashboard premium data rebate ($87) 60 days to use trades (rebate may be paid by May 30, 2015) Commission-free Trade Offer November 21, 2014
Disnat Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $50,000 $300 commission credit 6 months Disnat $300 Commission Credit Promo December 31, 2014
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,000 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). Refer A Friend Terms & Conditions October 31, 2014
Open and fund a new account with at least $100,000 at Questrade and execute at least one commissionable trade and you may be eligible to receive an iPad Mini. Use promo code IPADMINI14F. Be sure to read terms and conditions for full details. $100,000 iPad mini (Wi-Fi only, 16 GB) iPad mini will be ordered within 30 days of eligibility criteria being met. Questrade iPad Mini Promo November 30, 2014
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $250 cash back and a rebate of commissions on up to 25 trades made within 50 days of opening the account. Use the promo code SMILE when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $250 cash back + 50 commission-free trades (rebated) 50 days (payout for cash back and commission rebate occurs after 6 months) Smile Promotion November 2, 2014

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to Credential Direct and they will pay the transfer-out fees up to $150. If you wish to switch out of Credential Direct after 90 days they will waive their transfer out fee. See link for more details. $150 $15,000 Transfer Free Promo December 15, 2014
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $125 $25,000 Transfer Fee Promo none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $150 $50,000 Disnat $300 Commission Credit Promo December 31, 2014
Transfer $50,000 or more to TD Direct Investing from another brokerage and you may be eligible to receive up to $150 in transfer fee rebates. $150 $50,000 Commission-free Trade Offer November 21, 2014
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Breaking News: CIBC Investor’s Edge poised to rock the market with $6.95 standard commissions

The online brokerage battle is boldly going where many thought it might – into a full-on price war.  Sparxtrading.com has learned from sources within CIBC Investor’s Edge that they’re planning to slash their trading commission rate to $6.95 for all clients. The pricing change could be officially announced as early as Monday.

What we’ve learned so far is their best commission rate of $6.95, which is currently only available to clients with $100,000 or more in assets, will soon be made available to everyone, regardless of account balance or trading frequency.  We don’t yet have details on how other fees may change as a result.

This latest move by a Canadian online brokerage comes on the heels of Qtrade’s announcement last week that they are lowering their standard commission price to $8.95 and more than 9 months since RBC Direct Investing made waves by lowering their standard trading commission price to $9.95.

CIBC Investor’s Edge, along with Scotia iTrade, have been the last of Canada’s big bank-owned brokerages to go sub-$10 on their standard commission prices.

Set Pricing to Stun

At the sub-$7 price point CIBC Investor’s Edge is muscling in on the prized territories of Canadian online brokerages big and small.

For the big bank-owned brokerages, commissions of $7 or thereabouts are only typically offered to only to their most valuable trading clients (those who typically trade 30-150+ times per quarter or who have larger portfolio sizes).

Independent discount brokerages, such as Questrade and Virtual Brokers also seem to have their work cut out for them. At $6.95 flat per trade, CIBC Investor’s Edge commission rates now rival, if not beat, certain rates offered by these ‘lower commission’ providers, especially when ECN fees are factored in.

While CIBC Investor’s Edge still has a lot of ground to make up with respect to its website and platform, the giant has certainly been stirred. Whatever they were planning to do to get back into the online brokerage race had to be big and had to be bold. Lowering their standard commission pricing to $6.95 definitely qualifies.

Well Played, Investor’s Edge

In addition to the waves they’re bound to make with pricing, the timing of this move is also significant.

On the eve of the Globe and Mail online brokerage rankings, this latest pricing drop may just be big enough to steal some of the spotlight away from whichever brokerage (bank-owned or independent) wins the coveted title of ‘best online brokerage’. This pricing move signals to the other Canadian online brokerages that they’re going to have a much tougher time living long or prospering, so long as CIBC Investor’s Edge is in the race.

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Discount Brokerage Weekly Roundup – September 12, 2014

Spectacular northern lights thanks to solar flares, wild summer snowfall in Alberta and Apple being able to design a smart watch but not a smart map. It’s been a strange week to be sure. Equally strange – the silence from Canada’s discount brokerages through the month of September. It’s not often that there’s a quiet patch amongst the Canadian discount brokerages, however this past week that rare event came to pass. As the saying goes though, still waters run deep.

Even with the brokerages stepping out of the spotlight, there is still lots of activity going on amongst the brokerages which should surface this fall or in short order. In this week’s roundup, we’ll take a look at the ‘whispers’ of what’s coming from brokerages here in Canada including piecing together an interesting trend we see emerging. Following that, we’ll take a look at several DIY investor and online-brokerage focused news pieces that crossed the roundup radars this week. Finally we’ll wrap up this week’s roundup with some insightful conversations about online brokerages from the Canadian investor forums.

Things are Quiet, Too Quiet…

The ominous cliché of something about to happen appropriately captures the state of affairs in the Canadian online brokerage landscape. While this past week did not see any major announcements, feature releases or big promotions, Canadian discount brokerages are still hard at work planning some interesting and splashy products to be rolled out in the very near future. While we can’t yet reveal specifics, here’s what we’ve heard is (and seen to be) around the corner from several different brokerages:

  • A complete website upgrade
  • A new iPhone/iPad app
  • New active trading platform
  • Fall deals/promos

Building the Bench

Equally interesting is the recent blip in the hiring of client service representatives at Canadian brokerages. What specifically caught our eye were recent and coinciding job postings by RBC Direct Investing, Scotia iTrade and BMO InvestorLine. Most interestingly, Questrade is currently shopping for 10 client service reps to join their team (according to their careers website).

Hiring for front line service reps is always on the minds of online brokerages however given the shift in the competitive dynamics on commission pricing, service is going to play a much more prominent role in the customer experience and so building bench strength in this area will be increasingly important.

The kinds of positions Canadian online brokerages are seeking to fill are suggestive of the trends in their business as well as the direction that consumer demand and competition are pushing. The focal point appears to go beyond pricing and is starting to center on client experience – from customer service through to website and platform interaction.

For online investors, this should be an exciting fall season. Stay tuned as we continue to track this trend and how it unfolds.

To DIY or not to DIY

This past week also saw a couple of interesting DIY-focused articles get published in the Globe and Mail.

The first article, by personal finance writer Gail Bebee, tackles the question of whether or not DIY investing is right for everyone by exploring some of the advantages and disadvantages of going the DIY route.

Among the advantages to DIY investing mentioned were greater control, lower fees and the potential for better returns. Some of the cautions raised included the amount of time to learn the ropes, excessive trading and improper asset allocation. It’s worth a read especially for those at the beginning stages of their investing journey.

A second article (available via subscription only) related to DIY investors came from Rob Carrick, also a personal finance columnist with a particular specialty in the online brokerage segment.

As a lead up to his annual online brokerage rankings, the article discusses the new reality of sub-$10 per trade commissions for many Canadian brokerages.

What seems to stand out in the piece is that brokerages will be categorized (and scored) in his upcoming rankings on the basis of whether they offer sub-$10 trading commissions as a standard price or not. Two brokerages in particular, Scotia iTrade and CIBC Investor’s Edge, were highlighted as trailing the pack of their bank-owned peers when it comes to reducing standard pricing.

According to Carrick “brokers offering low commissions on a flat, no-questions-asked basis will have a decided advantage. Sub-$10 stock trades are the new reality in online investing, even if some firms haven’t quite accepted it yet.“

From the Forums

This Spud’s For You

Regular readers of the roundup or of investor forums have invariably come across questions about the Canadian Couch Potato. In this post from Reddit’s Personal Finance Canada thread, one reader asks which online brokerage is best for the Couch Potato approach. The ensuing conversation about particular brokerages is worth checking out if you’re considering the strategy.

The Grass Isn’t Always Greener

Staying on the theme of customer service becoming increasingly important for brokerages to ‘get right’, these next two threads, both from Red Flag Deals’ investing forum, are interesting to compare side by side. In the first thread, a reader appears to be less than pleased with the service interactions with Virtual Brokers and queries whether other users are feeling the same. Handily enough, another post from a different reader on other side the bank-owned brokerage side of the fence (TD Direct Investing) also felt the service was less than stellar and was contemplating a change. It’s serendipitous but also a reminder that the size of the brokerage doesn’t render you immune from customer service bumps.

It’s hard to believe that another week has come and gone. Of course if you’re feeling like your estimates of time may be a bit generous, the following cartoon might mean you’ve got a promising future as an analyst (just ask followers of LULU). Have a better-than-you-expect weekend!