Hard to believe how fast time flies. As we near the end of the 2017, we felt it was an appropriate time to reflect on what has been yet another eventful year for Canadian online brokerages. And, while we could comment on the rise of roboadvisors or the changing preferences of online investors, we figured it would be far more interesting to hear what Canada’s online brokerages had to say about their milestones in 2017 and what they have planned for 2018.
In total, we received submissions from 9 Canadian online brokerages and we’re excited to share these perspectives from, in many cases, the voices of the individuals leading these organizations.
In keeping with the spirit of the exercise, we’ll keep the commentary to a minimum but before diving in, we highlight three interesting themes we noted shine through from comparing all of the submissions. If there’s one takeaway for online brokerage industry however, it’s that brokerages can no longer afford to stand still.
Theme 1: It’s a technological arms race
While it hardly seems surprising that online brokerages would naturally be heavily reliant on technology, the rapidly changing nature of technology has required all of Canada’s online brokerages to become more adept at leveraging this technology in their favour.
Larger online brokerages have had to adapt their technology development cycles to be faster and more agile; smaller online brokerages have had to learn how to leverage technology to do more to compete with larger bank-owned brokerages and nearly all online brokerages have had to learn how to create a seamless trading experience across screens and devices.
As smartphones continue to surpass home computers in usage, price and functionality, and as internet speed and coverage increase, there’s a greater likelihood that consumers will be using smartphones for many aspects of the trading experience. A very interesting example of this from 2017 has been the investment in enhancing options trading capability by Questrade and TD Direct Investing.
A noteworthy mention is Interactive Brokers’ deployment of a ‘personal assistant’ style trading interface (called IBot) which offers a view of how ‘AI’ might find its way into online brokerage services and help online investors execute and manage trades with simplified text and spoken commands.
Theme 2: Delivering more value to DIY investors
In a fiercely competitive discount brokerage landscape, commission costs still stand out as one of the most (if not the most) important factor for many Canadian DIY investors to consider when choosing an online brokerage. While prices still have room to fall (and they are falling), the reductions in standard commission pricing are not likely to be as significant as they were in 2014 and as a result, other features have to help Canadian online brokerages stand out.
Enhancing the value that DIY investors receive, and more importantly perceive, is one strategy online brokerages can use to keep from having to lower trading commissions.
While none of the online brokerages who provided a submission lowered their standard commission pricing this year (so far), they have found ways to lower commission pricing on certain products – such as ETFs in the case of National Bank Direct Brokerage, or to enable DIY investors to use loyalty points to pay for commissions (RBC Direct Investing).
Other sources for enhancing value came from improving and creating DIY investor content. Whether it was through investor newsletters, blogs or other content sources and streams, a number of Canadian online brokerages were actively creating and curating DIY investor-focused content.
Theme 3: Focus on better trading experiences
A third interesting theme for 2017 was to improve the trading experience. Whether it was focusing on making complex trading strategies easier to execute (e.g. TD Direct Investing and Questrade deployed improvements to complex options trading execution) or improving management of holdings and documentation (as in the case of BMO InvestorLine and Qtrade Investor), there has been and will continue to be a lot of resources devoted to enhancing how and where online trading takes place.
Like a good Netflix series, we’ve released all of the submissions provided to us by Canada’s online brokerages – although there are no shadow monsters or stranger things (we promise). So, go ahead and binge-read about some of the highlights from 2017 and get a sneak peek at what’s in store for 2018.
With markets closed today in observance of Good Friday, investors on both sides of the border can spend their weekend recounting United Airlines memes, legalization of marijuana in Canada and the mother of all bombs. Say what you will about the news, but investors have a lot on their plates to digest – and that’s before sitting down to a long-weekend dinner.
Fortunately, one thing DIY investors won’t have to do this weekend is search for the latest news from Canadian discount brokerages. In this week’s roundup we take a look at movement from two western-Canadian based brokerages. The first is reviving a new deal that might be part of a broader strategy to attract younger investors (even away from other discount brokerages). The second story focuses on changes to user experience brewing at another western Canadian online brokerage and what that might mean for competitor brands. As usual, we have the fan favourites of DIY investor chatter from Twitter and investor forums to close out on.
Qtrade Investor launches new transfer deal
After a small lull in the deals and promotions section this month, a “new” transfer deal has emerged from Qtrade Investor. The deal itself isn’t new per se; it is a reboot of an offer that has shown up from time to time over the past several years.
Still, a deal is a deal. And when it comes to transferring accounts, this latest offer from Qtrade Investor stands head and shoulders above other transfer offers. Specifically, Qtrade Investor is offering to pay the transfer out fees (typically around $150) for a minimum deposit of $10,000. Qtrade Investor normally requires deposits of at least $25,000 in order to rebate a transfer fee from another brokerage, so it is an interesting offer for those on the fence about switching to Qtrade Investor.
Typically, Canadian discount brokerages offer to cover transfer out fees for deposits of at least $25,000. Exceptions to the $25,000 threshold are RBC Direct Investing, who requires deposit of at least $15,000, and more recently National Bank Direct Brokerage, who has lowered their transfer fee coverage threshold to $20,000.
Although Qtrade Investor’s latest promotion is a limited time offer, it appears that there might be additional momentum starting to build amongst brokerages to lower the bar to cover transfer fees.
Of course, the transfer fee coverage game is a tricky one.
At any time, a major player in the market could decide to raise the bar to leave and effectively negate (or cost) other brokerages trying to incentivize clients to switch. Switching fees are not something brokerages actively advertise so once a DIY investor chooses to become a client of an online brokerage provider, the cost to exit isn’t generally part of what they think about. Arguably, however, every investor and trader should consider the cost to exit before agreeing to enter. In reality, it is unlikely that many investors consider the switching cost as part of the reason to choose a brokerage.
On a side note, Qtrade Investor’s latest promotional offer also appears to visually be appealing to younger, more active individuals (or those who aspire to be). For those who keep a close eye on the ‘imagery’ choices of Canadian online brokerages, there has been a distinct shift in what an investor “looks like”. This includes the visual identity for Qtrade Investor.
Clearly the combination of a lower threshold for switching to Qtrade Investor and some younger, more active characters helping to sell the deal and other features on Qtrade Investor signal a definite interest in appealing to the millennial investor crowd. An interesting (perhaps ironic) question is whether other brokerages can ‘keep up’ with what Qtrade seems to be doing.
Credential Direct signals a digital shift
Hunting around on Easter seems to be a thing that people look forward to. Not so much on websites, however, where hunting around for information generally leads to frustration if not outright abandonment.
This past week we noticed an invitation to complete a survey about the Credential Direct website on the front end which naturally piqued our curiosity.
Specifically, the 10-minute survey stated that it was requesting feedback on a prototype of the website, with the feedback being used to make some informed decisions on how to organize the menus to make them as user-friendly as possible.
The usability questionnaire asked visitors to complete an action based on a scenario/question, such as locating information in the website menu for upcoming webinars. Specifically, it appears that Credential Direct is looking to discover where users are most likely to look for information.
For comparison, the website menu structure is organized into the following top level sections:
Why us
Pricing
Research & Tools
Education
Forms
About Us
The prototype menu structure, however, appears to consist of the following top-level options:
Features
Fees
Knowledge & Support
About
Partnerships
One of the first things to note is that there are fewer menu items, a sign that some navigation simplification is in order. Secondly, there seems to be a shift away from a ‘hard sell’ to a ‘soft sell’ highlight features instead of telling users ‘why’ they should choose Credential Direct and changing the term ‘pricing’ to ‘fees’.
Another interesting observation stems from the items being included in the ‘Knowledge & Support’ – specifically the inclusion of the categories for popular content, featured content and DIY Investor knowledge. It’s one thing to create special categories of information, however, it’s another to populate these categories with enough information to warrant making a category in the first place. These categories seem to suggest that Credential Direct might shift the current set of ‘DIY Investor knowledge’ on markets and investment types for a new home, but perhaps they may also be prepping to include more DIY investor focused content, something that their competitors across the street (quite literally) at Qtrade Investor have been building out.
Although things are still very much in the prototype stage, it’s clear that change is brewing at Credential Direct. One other interesting data point in support of this digital evolution is a tweet from their account (which appears to have been deleted and replaced later by a tweet from the parent Credential Financial account) that suggests that building a better digital experience for wealth management service providers is on the minds of the Credential leadership.
One of the challenges that the big five Canadian banks have is differentiating themselves to consumers. For those DIY investors thinking of going with a big bank-owned online brokerage (aka direct investing with an online brokerage) the challenge of telling them apart is even trickier. In this post from Reddit’s Personal Finance Canada section, readers weigh in with their experiences on a couple of bank-owned online brokerages.
Getting an Edge
Active traders are always on the look out for ways to shave costs. That said, price isn’t the only factor, there’s also user experience and trade executions that matter. One reader on Canadian Money Forum in this post sought advice from other readers on shifting away from CIBC Investor’s Edge and got some interesting recommendations.
Into the Close
With the combination of playoff hockey and basketball and spring baseball, there’s no shortage of fun distractions heading into the weekend. Of course, there are also lots of not-so-fun distractions to keep an eye on too; however, hopefully you-know-who decides to play golf rather than a real-life version of risk. Have a safe and hoppy Easter weekend!
Summer is close at hand and now that May is behind us, those who have sold in May and gone away might still find a reason to come back to the markets – at least that’s what some brokerages are banking on.
As we launch into a new month the discount brokerage deals and promotions landscape this year looks quite different than a year ago at this time.
For starters, one of the major sources of promotional offers for DIY investors, Questrade, is still in a holding pattern with no new noteworthy promotions being put forward. This is in stark contrast to last year where they were leading all brokerages with the most offers. For those still seeking a deal with Questrade, several are available, including (see below) links to affiliate plans and refer-a-friend bonuses.
In terms of the bank-owned brokerages, there were two interesting developments. First, BMO InvestorLine started the month with a new offer for the summer to replace their outgoing promotion that concluded at the end of May. Second, Scotia iTrade recently celebrated their 1-year anniversary of their downtown Toronto investor centre opening and marked it with incentives like free gelato and movie passes to meet with investment representatives.
There’s been a recent uptick in the number of contests being put forward by online brokerages so it will be interesting to monitor this approach to see if this will be a strategic way to drum up excitement for online brokerages during the summer months.
That said, there are a number of offers that are scheduled to expire during and at the end of June. Desjardins Online Brokerage’s commission credit offer, Virtual Brokers Apple gift card promotion, BMO InvestorLine’s refer-a-friend and National Bank Direct Brokerage’s commission-free Canadian ETF promotion are all on the chopping block this month so it will be interesting to see which discount brokerage promotion, if any, gets renewed.
If not, it will definitely be a much smaller field of brokerages and offers for DIY investors to choose from, at least until the fall season shows up when brokerages will be more interested in ramping up their promotional activities.
Expired Deals
The turnover in deals in May was not that substantial, with an offer from BMO InvestorLine and Virtual Brokers’ referral deal expiring. At the time of publication, it was not confirmed if Virtual Brokers would be extending the Cash Referral Program however we will post an update when we have one.
Extended Deals
No deals were officially extended at the time of publication.
New Deals
BMO InvestorLine was the only online brokerage to kick off the new month with a new offer. Specifically, BMO InvestorLine is offering investors cash back for opening and funding a new qualifying account. The cash back amounts range from $200 to $1,000 cash back depending on deposit sizes. In keeping with many of their previous promotions, the minimum deposit to qualify (for the entry level cash back amount) is $100,000. Interestingly, and unlike many other brokerages, BMO InvestorLine enables this cash back offer to be combined with their referral bonus ($50 for a minimum deposit of $50,000).
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion.
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details.
$150
$25,000
Contact client service for more information (1-800-465-5463).
none
Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees.
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.
$135
$25,000
Confirmed with reps. Contact client service for more information (1-800-567-3343).
none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees
Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info.
National Bank Direct Brokerage is sponsoring the latest edition of the Horizons ETFs Biggest Winner simulated trading competition. Top prize for the contest winner is $7,500 with a runner up prize of $2,500. There will also be weekly prizes of $500. Be sure to read terms and conditions for full details on timing and eligibility.
Scotia iTRADE is offering a no-purchase entry option to their Stock Shopping Spree contest. There is a limit of one (1) ballot per person using the no purchase required method. Top prize is $10,000 and there are 5 runner-up prizes of $1,000. Be sure to read full contest rules and regulations for eligibility.
Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details.
Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details.
Virtual Brokers is offering the chance for individuals who sign up for a new online trading account on the classic commission structure with a deposit of at least $1,000 to win an Apple $500 gift card. Be sure to read terms and conditions for more information.
A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully.
Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 3 months of commission-free equity trading and a $150 USD/mo credit towards Edge Trader Pro for 3 months. Use promo code sent at sign up to qualify. Be sure to read full terms and conditions for details.
Open and fund a new account at Scotia iTrade with at least A) $25,000; B) $50,000; C) $100,000 D) $250,000 E) $500,000 or F) $1,000,000+ and you may be eligible to receive up to A) 75 commission-free trades and 5 contest ballots; B) 150 commission-free trades and 10 contest ballots; C) 200 commission-free trades and 25 contest ballots; D) 250 commission-free trades and 50 contest ballots; E) 250 commission-free trades and 100 contest ballots; or F) 250 commission-free trades and 200 contest ballots. Use promo code SP16FT when opening account to be eligible. Be sure to read terms and conditions for full details.
A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+
Disnat is offering new & existing clients up to $500 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 1-866-873-7103 and mention promo code Disnat500. See details link for more info.
Open a new qualifying account with BMO InvestorLine, and fund it with at least A) $100,000 or B) $250,000 or C)$500,000 in net new assets and you may be eligible to receive A) $200 cash back, B)$500 cash back or C) $1,000 cash back. Use promo code Summer1000 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer.
A) $100,000 – $249,999 B) $250,000 – $499,999 C) $500,000+
A) $200 cash back B) $500 cash back C) $1,000 cash back
Cash back will be deposited the week of Mar. 6, 2017.
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.
A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+
$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back
Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)
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)
If you (an existing Virtual Brokers client) refer a friend or family member to open a new account with at least $5,000 you may be eligible to receive $25 cash per referral. For 3 or more referrals Virtual Brokers will add a $50 bonus. Referred individuals depositing either A) $5,000 – $50,000 or B) $50,000+ may be eligible to receive A) $25 or B) $50 cash back. Be sure to read the full terms and conditions carefully for full details. Be sure to read the terms and conditions to this offer carefully for full details.
A) $5,000 – $50,000 B) $50,000+
Referrer: $25 per referral; $50 bonus for each 3 or more referrals. Referee: A) $25 B) $50
Cash to be deposited to VB account by August 15, 2016.
If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details.
$50,000
You(referrer): $50; Your Friend(referee): $50
Payout occurs 45 days after minimum 90 day holding period(subject to conditions).
For those who can’t wait to see Old Man Winter actually leave, this weekend couldn’t come fast enough. But, rest assured, signs of spring abound and as #BirdieSanders showed, that offers something to smile about. Canadian discount brokerages also seem to be taking their cues from Mother Nature by doing a little spring cleaning of their own.
In this shortened week’s roundup, we take a look at the latest online brokerage to roll out a brand new website for DIY investors. Next we report on signs of life at one independent online brokerage that suggests they’re looking to be a more active presence in the brokerage space. As usual, we take a look at the latest chatter on Twitter and across the financial forums and highlight the upcoming investor education events for next week.
RBC Direct Investing rolling out new website
Spring is a great time to say goodbye to old and welcome in the new. For RBC Direct Investing, it looks like this spring will bring with it a dramatic update to their website.
The timing of RBC Direct Investing’s website roll out comes well after the big wave of updates that took place across 2014/2015 for many Canadian online brokerages. While going first means having to take a leap of faith in terms of design and whether or not users will respond (or cry foul) about certain choices, rolling out a ‘new’ website at this point RBC Direct Investing means that expectations for getting it right are likely to also be higher.
One of the biggest challenges for financial service providers, especially online brokerages and those closely linked to technology, is striking a balance between being innovative and being familiar. By having to also coordinate with their parent brand’s look and feel as well as with expectations from other service lines (like banking), there’s little wonder why redoing a website for a firm such as RBC Direct Investing would take considerable time and effort.
Of course, the time that it has taken to get their online presence to “appear” modern has not gone unnoticed. In this past year’s Globe and Mail online brokerage rankings, for example, Rob Carrick commented that “Canada’s biggest bank should have a sharper product.” And, while that comment likely reflects the expectations of a firm (technically the parent of RBC Direct Investing) that netted a quarterly income of $2.4B, Carrick’s remark that “The homepage for RBC Direct Investing’s public website is old school. O-L-D school” is particularly stinging.
Like many things in the online world, change is inevitable. Let’s take a look at some of the features RBC Direct Investing’s new website includes (for more info, check out the video below).
Design/Aesthetics
The new RBC Direct Investing website appears to be designed to more than accommodate both desktop and tablet users. Like their parent banking website, there is a greater emphasis on panels/boxes so that tablet users can scroll and tap their way through sections of the new site. The switch in navigating styles will undoubtedly appeal to some more than others, however the use of boxes is a common trend among many more ‘tablet friendly’ responsive websites. That said, there as with the release of their banking site interface in January, there is bound to no shortage of strong opinions as people react to the new layout.
Placing an Order
Another significant change is the use of “Place an Order” instead of “Trade”. While it may take some getting used when existing users want to execute a trade, the new label is more meaningful and intuitive to new users.
Directing Attention
While there’s lots to say from a design and user experience perspective, what ultimately stands out about the design is the way in which the new tiled layout hopes to strategically meet user needs but also direct user engagement.
Areas like their “My Portfolio” section, for example, have much more visually noticeable and attractive elements (like pictures and illustrations) that naturally stand out against the very plain blue boxes. Those more noticeable elements, shown in the following screenshot, highlight where RBC Direct Investing would like to attract more deposits or engage more deeply in an article that undoubtedly positions RBC as a solution to a financial services need.
At first blush, the latest update to the website looks to make information easier and more intuitive to find. It is also readily apparent that they are turning a tiled design to optimize the user experience on tablets and mobile devices, however this may or may not go over well as it requires users to adapt their navigation style to include clicking on tiles.
Overall, like the roll out of any new product, it will ultimately have to face the test of time and users to see whether or not it hits the right mark with critics. That said, with the pace of technology and the entrance of new, more agile and web-savvy competitors, it is likely the website refresh will (have to) happen a lot sooner.
Green Shoots
Some other notable developments this week included Credential Direct posting yet another webinar geared towards personal finance/investing. While they generally have flown under the radar in the news cycle, Credential Direct has nonetheless been quietly building up their activity level on both social media (via their Twitter handle) and holding more interesting webinars/seminars. It shows they are not standing still despite having quite the uphill battle to fight in terms of pricing and user experience, neither of which will be cheap.
Tweets of the Week
For some brokerages, the weekend couldn’t come fast enough. Mentioned this week are BMO InvestorLine, CIBC Investor’s Edge, Questrade, Scotia iTRADE and TD Direct Investing.
Event Horizon
As March heads out like a lamb, it’s a wild and wooly week ahead for discount brokerage-sponsored investor education events. Here are some upcoming sessions that may be of interest to options enthusiasts and those interested in short selling. Margin accounts, and tax-efficient investing round out this week’s selection.
For many passive DIY investors, the TD e-series funds are a popular choice. In this post from RedFlagDeals’ investing forum, users weigh in on one user’s question about the merits of going all in on the e-series.
On Borrowed Time
Whether or not to borrow to invest is something that is often debated by investors in the DIY forums. In this post, an individual asks for help weighing the pros and cons of borrowing to invest in an RRSP with Questrade. It’s an interesting read for those contemplating the ‘borrow to invest’ approach.
Into the Close
That’s it for this shortened trading week. Next week DIY investors can begin hunting for more deals and promotions as the deals area is about to get a major reset. Until then, however, Easter treats will have to suffice. Have an egg-stra special long weekend!
*Update Mar. 18* While there were lots of offers available to DIY investors from Canadian online brokerages into the RRSP contribution deadline, there were definitely fewer than last year. Volatile markets and Canadians signaling their reluctance to contribute to an RRSP this year might have contributed to the pullback in participation by brokerages however there may also be signs that the Canadian discount brokerage landscape may be gearing up for the inevitable shakeup.
Heading into this new month there are two big stories. First, Virtual Brokers has started to offer referrals for ‘friends and family’ which now enables Virtual Brokers’ clients to earn a cash referral fee for a new account signup.
The second exciting story is that we’re refining the way in which discount brokerage promotions are being reported and expanding the types of promotions we’re covering. One of the primary objectives of SparxTrading.com is to help simplify the process of choosing an online brokerage and that includes sifting through the deals and promotions being offered.
With so many offers currently on the market things have gotten a bit unwieldy and so we’ve decided to split the deals and promotions into the following four categories for easier comparison and review:
Cash Back/Free Trade/Product Offer Promotions
Referral Promotions
Transfer Fee Promotions
Contests & Other Offers
The Cash Back/Free Trade/Product Offer category of promotions includes those offers from brokerages that typically consist of a user either getting cash back, free trades or trading credits (either through waived commission fees or commission reimbursements) and product offer promotions where a discount brokerage may be offering up a tangible item or equivalent gift card which has a definable market value.
The referral promotions cover the affiliate programs that a brokerage may be offering. These would typically include the “refer-a-friend” style promotions as well as any affiliate program codes that SparxTrading has access to (and for which we may receive any compensation for).
The transfer fee table will remain unchanged and it covers the fees that online brokerages are typically willing to cover when transferring between one brokerage and another.
Finally, the ‘contests & other offers’ covers any additional promotion that a brokerage might be running that is advertised to new or existing clients or even to the general public (as most contests are generally open to more than just clients).
We’re excited by the update and look forward to seeing where things go from here as there are 19 offers at the time of writing but 11 deals and promotions that are scheduled to expire in March which should make this month an exciting one. As always, if there are promotions that you’re aware of that we haven’t included, let us know and we can share it with all of our readers.
Expired Deals
Only one offer officially expired at the end of February: Questrade’s 25 commission-free trades for a year offer. That said, there are two offers that expire at the end of day (11:59 ET) on March 1st: Questrade’s 3 months of commission-free trading (code RSP2016) and BMO InvestorLine’s 2016 combined free trade and cash back offer (See extended deals section for update). Questrade also has another promotion scheduled to expire on the 4th of March.
Extended Deals
*Update Mar. 2: BMO InvestorLine has extended their combined free trade and cash back offer through the end of May. See table below for updated deadline date and promo code.*
No deal extensions were noted at the time of publication.
New Deals
*Update Mar. 18: Virtual Brokers has just launched another new promotion and it is a big one. They are offering up 3 months free of their Edge Trader Pro trading platform which then qualifies a user to trade on their commission-free trading commission plan. In short, this offer lets users trade for 3 months commission-free (on equities only) since the $150 USD/mo platform fee associated with this plan will be credited for 3 months. The minimum deposit required to qualify for this promotion is $5,000 CAD. Be sure to see the table below for more details.
*Update Mar. 2: Qtrade Investor has a transfer fee promotion that will cover transfer fees from another brokerage for a deposit of at least $10,000. See table below for more details.*
Virtual Brokers is the only Canadian online brokerage to start off March with a new promotion. They are launching a referral program – albeit for a limited time – that offers $25 cash back for a referral from a friend or family member of an existing Virtual Brokers account holder. Interestingly, and similar to Questrade’s referral promotion, individuals referring 3 or more new accounts to Virtual Brokers receive an extra $50. For individuals referred to this program, there are tiered rewards depending on deposit level. Individuals depositing at least $5,000 (and up to $50,000) can receive a $25 cash back offer; individuals contributing more than $50,000 can receive a cash back bonus of $50.
This new offer is interesting on a number of levels, not the least of which is actually the detail with which the terms and conditions spell out who is considered a ‘friend’ for the purposes of this promotion. See the table below for more details.
A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully.
Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 3 months of commission-free equity trading and a $150 USD/mo credit towards Edge Trader Pro for 3 months. Use promo code sent at sign up to qualify. Be sure to read full terms and conditions for details.
Open and fund a new account with Virtual Brokers with at least A) $15,000; B) $25,000 C) $50,000; D) $100,000 or E) $250,000+ and you may be eligible to receive A) 25; B) 50; C) 100; D) 150 or E) 200 commission-free equity (stock & ETF) trades. In addition, qualifying applicants will also be entered into a draw for a $500 Apple gift card. Use promo code 200APPLEWATCH when signing up to be eligible. Be sure to read the terms and conditions for full details.
A) $15,000 – $24,999 B) $25,000 – $49,999 C) $50,000 – $99,999 D) $100,000 – $249,999 E) $250,000+
A) 25 commission-free trades B) 50 commission-free trades C) 100 commission-free trades D) 150 commission-free trades E) 200 commission-free trades
90 days (cash for commissions to be credited back Aug. 2, 2016)
Open and fund a new National Bank Direct Brokerage account with at least A) $20,000 or B) $100,00 and you may be eligible to receive up to either A) $500 or B) $1,000 in commission credits. Use promo code CashBack2016 when registering for an account to qualify. Be sure to read full terms and conditions for additional details.
A) $20,000 – $99,999 B) $100,000+
A) $500 in commission credit B) $1,000 in commission credit
Open and fund a new account at Scotia iTrade with at least A) $25,000; B) $50,000; C) $100,000 or $250,000+ and you may be eligible to receive up to A) 75; B) 150; C) 300 or D) 500 commission-free trades. Use promo code TRADES-RSP16 when opening account to be eligible. Be sure to read terms and conditions for full details.
A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000+
A) 75 commission-free trades B) 150 commission-free trades C) 300 commission-free trades D) 500 commission-free trades
Open and fund a new account at TD Direct Investing with at least A) $25,000; B) $50,000 or C) $100,000+ and you may be eligible to receive up to A) 50; B) 100 or C) 200 commission-free trades. Be sure to read terms and conditions for full details.
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
Disnat is offering new & existing clients $500 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 1-866-873-7103 and mention promo code Disnat500. See details link for more info.
Open or fund an eligible account with at least $100,000 and make at least one commission generating trade and you may be eligible to receive a $500 gift card for the Apple Store. Use promo code APPLEWATCH when signing up. Be sure to read terms and conditions carefully.
$100,000
$500 Apple Store gift card
Gift card will be sent within 30 days of client meeting eligibility requirements.
Open a new qualifying account with BMO InvestorLine, and fund it with at least A) $100,000 or B) $250,000 in net new assets and you may be eligible to receive either A) $200 cash back and 100 commission-free equity trades or B) $600 cash back and 100 commission-free equity trades. Use promo code Spring1600 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer.
A) $100,000 – $249,999 B) $250,000+
A) $200 cash back + 100 commission-free equity trades. B) $600 cash back + 100 commission-free equity trades.
60 days for equity trades. Cash back will be deposited the week of Oct. 10, 2016. Commission rebates will be paid week of Oct. 10, 2016.
Open and fund a new qualifying account (registered or margin) with at least A) $2,000; B) $25,000 or C) $50,000 and receive either A) 1 month; B) 2 months or C) 3 months of commission-free trading. Use promo code RSP2016 when registering. Be sure to read terms and conditions for full details.
Open and fund a new qualifying account (registered or margin) with at least A) $1,000; B) $25,000 or C) $50,000 and receive either A) 1 month; B) 2 months or C) 3 months of commission-free trading. Use promo code UNLIMITEDW16 when registering. Be sure to read terms and conditions for full details.
Open a new qualifying account with HSBC InvestDirect and you could be eligible to receive up to 30 commission-free North American equity trades. Be sure to read terms and conditions for full details.
Open and fund a new account (or existing clients can transfer in new assets) at Credential Direct with at least A) $15,000; B) $50,000; C) $150,000; D) $500,000 or E) $1,000,000 and you may be eligible to receive at least A) $75; B) $125; C) $200; D) $500 or E) $1,000. Applicants need to use code CASH2016RSP and fund account in order to qualify for cash back offer. Be sure to read terms and conditions for full details.
A) $15,000 – $49,999 B) $50,000 – $149,999 C) $150,000 – $499,999 D) $500,000 – $999,999 E) $1,000,000+
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
Referral Promotions
Company
Brief Description
Minimum Deposit Amount
Incentive Structure
Time Limit to Use Commission/Cash Offer Deposit
Details Link
Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.
A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+
$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back
Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)
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)
If you (an existing Virtual Brokers client) refer a friend or family member to open a new account with at least $5,000 you may be eligible to receive $25 cash per referral. For 3 or more referrals Virtual Brokers will add a $50 bonus. Referred individuals depositing either A) $5,000 – $50,000 or B) $50,000+ may be eligible to receive A) $25 or B) $50 cash back. Be sure to read the full terms and conditions carefully for full details. Be sure to read the terms and conditions to this offer carefully for full details.
A) $5,000 – $50,000 B) $50,000+
Referrer: $25 per referral; $50 bonus for each 3 or more referrals. Referee: A) $25 B) $50
Cash to be deposited to VB account by August 15, 2016.
If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details.
$50,000
You(referrer): $50; Your Friend(referee): $50
Payout occurs after 45 days (subject to conditions).
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
Last Updated: Mar. 1, 2016 21:30 PT
Transfer Fee Promotions
Company
Brief Description
Maximum Transfer Fee Coverage Amount
Minimum Deposit Amount for Transfer Fee Eligibility
Details Link
Deadline
Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $10,000 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.
Transfer $15,000 or more to a new Virtual Brokers account from another brokerage and Virtual Brokers may reimburse up to $150 in transfer fees. See terms and conditions for more information.
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion.
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to read terms and conditions for full details.
Transfer at least $25,000 or more in new assets to Scotia iTrade when opening a new account and Scotia iTrade may reimburse transfer fees up to $150. Be sure to read terms and conditions for full details.
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.
$135
$25,000
confirmed with reps. Contact client service for more info (1-800-567-3343)
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
Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info.
Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details.
Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details.
Open a new account with Questrade with at least $2,000 and you may be eligible to receive free tax software and the platinum bundle package form H&R Block. Use promo code HRBLOCK2016 when signing up to qualify. Read the terms and conditions for full details.
*Updated: Feb 2* While it still looks like winter across most of Canada, the deals and promotions section is a balmy +17 +18 at the outset of February.
Even though no new deals have launched at the beginning of February, this month is typically a very exciting month across the discount brokerage space. Throughout January, for example, there were 7 offers that went live as well as several contests being promoted by Canadian brokerages. As the RSP deadline (February 29th) draws closer, things are likely to get even more competitive.
A case in point is the entrance into the deals pool by TD Direct Investing. Ahead of the new month, TD Direct Investing revived a tiered commission-free trade offer with as many as 200 commission-free trades being granted to individuals depositing at least $100,000. As one Canada’s largest online brokerages, TD Direct Investing’s entry at this point signals that even the big players are doubling down their efforts into the RSP contribution deadline (February 29th).
Looking more closely at the discount brokerage deals currently being offered, Questrade once again dominates in the number and diversity of offers with 7 offers. Interestingly, 6 out of the 8 promotions from Canadian discount brokerages requiring deposits of less than $10,000 to qualify are from Questrade, indicating their aggressive pursuit of more modest depositors (and likely to be younger investors). In fact, looking at the following graph, it’s clear that Questrade (shown in bright green) is competing with offers above and below the most crowded deposit ranges. Questrade does have offers that apply at the $25,000 deposit level, however these are part of tiered offers, which is why they don’t appear directly on the graph below. That said, Questrade is clearly competing across the promotional board which is not something any other Canadian discount brokerage is currently doing.
Minimum deposit for current Canadian discount brokerage promotion offers vs. days to offer expiry (measured as of Feb. 1st 2016)
Another interesting observation is that the most competitive deposit range appears to be between $20,000 and $50,000 with five discount brokerages (including several bank-owned brokerages) putting forward offers for deposits at these levels.
Finally, while RSP season appears to be quite busy, as shown in the chart above, the deadlines for many of the current discount brokerage deals expire well after the February 29th contribution deadline. We’ll keep an eye out for any new developments and of course, if there are any that we’ve missed, let us know here.
Expired Deals
No news to report here.
Extended Deals
No news to report here.
New Deals
*Updated Feb. 2: Well it didn’t take long for another Canadian discount brokerage to be drawn into the deals and promotions competition. Virtual Brokers has rolled out a new tiered commission-free trading offer that runs from the beginning of February through to the end of March. Unlike previous promo offers from Virtual Brokers, their latest offer includes an entry into a draw for a $500 Apple gift card. This latest move is a direct response, it seems, to their cross town rival Questrade. The tiered offer from Virtual Brokers requires a minimum deposit of $15,000 to qualify for at least 50 commission-free trades. See table below for more information.*
While technically not new for February, the latest offer from TD Direct Investing launched quite close to the beginning of the new month. Their latest offer is a revival of their tiered commission-free trade offer where new account openings may be eligible for 50, 100 or 200 commission-free trades for deposits of $25,000, $50,000 or $100,000+. See the table below for more 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
A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package.
Open a new qualifying account with HSBC InvestDirect and you could be eligible to receive up to 30 commission-free North American equity trades. Be sure to read terms and conditions for full details.
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 $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.
A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+
$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back
Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully.
Open and fund a new qualifying account (registered or margin) with at least A) $1,000; B) $25,000 or C) $50,000 and receive either A) 1 month; B) 2 months or C) 3 months of commission-free trading. Use promo code UNLIMITEDW16 when registering. Be sure to read terms and conditions for full details.
Open and fund a new qualifying account (registered or margin) with at least A) $2,000; B) $25,000 or C) $50,000 and receive either A) 1 month; B) 2 months or C) 3 months of commission-free trading. Use promo code RSP2016 when registering. Be sure to read terms and conditions for full details.
Open and fund a new online trading account with Questrade with at least $5,000 and you could be eligible to receive 25 commission-free trades good for use for up to 1 year. Use promo code NEWYEAR2016 when applying to be eligible for this offer. Be sure to read the full terms and conditions for this promotion.
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)
Open and fund a new account with Virtual Brokers with at least A) $15,000; B) $25,000 C) $50,000; D) $100,000 or E) $250,000+ and you may be eligible to receive A) 25; B) 50; C) 100; D) 150 or E) 200 commission-free equity (stock & ETF) trades. In addition, qualifying applicants will also be entered into a draw for a $500 Apple gift card. Use promo code 200APPLEWATCH when signing up to be eligible. Be sure to read the terms and conditions for full details.
A) $15,000 – $24,999 B) $25,000 – $49,999 C) $50,000 – $99,999 D) $100,000 – $249,999 E) $250,000+
A) 25 commission-free trades B) 50 commission-free trades C) 100 commission-free trades D) 150 commission-free trades E) 200 commission-free trades
90 days (cash for commissions to be credited back Aug. 2, 2016)
Open and fund a new account (or existing clients can transfer in new assets) at Credential Direct with at least A) $15,000; B) $50,000; C) $150,000; D) $500,000 or E) $1,000,000 and you may be eligible to receive at least A) $75; B) $125; C) $200; D) $500 or E) $1,000. Applicants need to use code CASH2016RSP and fund account in order to qualify for cash back offer. Be sure to read terms and conditions for full details.
A) $15,000 – $49,999 B) $50,000 – $149,999 C) $150,000 – $499,999 D) $500,000 – $999,999 E) $1,000,000+
Open and fund a new National Bank Direct Brokerage account with at least A) $20,000 or B) $100,00 and you may be eligible to receive up to either A) $500 or B) $1,000 in commission credits. Use promo code CashBack2016 when registering for an account to qualify. Be sure to read full terms and conditions for additional details.
A) $20,000 – $99,999 B) $100,000+
A) $500 in commission credit B) $1,000 in commission credit
Open and fund a new account at Scotia iTrade with at least A) $25,000; B) $50,000; C) $100,000 or $250,000+ and you may be eligible to receive up to A) 75; B) 150; C) 300 or D) 500 commission-free trades. Use promo code TRADES-RSP16 when opening account to be eligible. Be sure to read terms and conditions for full details.
A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000+
A) 75 commission-free trades B) 150 commission-free trades C) 300 commission-free trades D) 500 commission-free trades
Open and fund a new account at TD Direct Investing with at least A) $25,000; B) $50,000 or C) $100,000+ and you may be eligible to receive up to A) 50; B) 100 or C) 200 commission-free trades. Be sure to read terms and conditions for full details.
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
Disnat is offering new & existing clients $500 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 1-866-873-7103 and mention promo code Disnat500. See details link for more info.
If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details.
$50,000
You(referrer): $50; Your Friend(referee): $50
Payout occurs after 45 days (subject to conditions).
Open or fund an eligible account with at least $100,000 and make at least one commission generating trade and you may be eligible to receive a $500 gift card for the Apple Store. Use promo code APPLEWATCH when signing up. Be sure to read terms and conditions carefully.
$100,000
$500 Apple Store gift card
Gift card will be sent within 30 days of client meeting eligibility requirements.
Open a new qualifying account with BMO InvestorLine, and fund it with at least A) $100,000 or B) $250,000 in net new assets and you may be eligible to receive either A) $200 cash back and 100 commission-free equity trades or B) $600 cash back and 100 commission-free equity trades. Use promo code WinterSD600 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer.
A) $100,000 – $249,999 B) $250,000+
A) $200 cash back + 100 commission-free equity trades. B) $600 cash back + 100 commission-free equity trades.
60 days for equity trades. Cash back will be deposited the week of Oct. 10, 2016. Commission rebates will be paid week of Oct. 10, 2016.
Minimum Deposit Amount for Transfer Fee Eligibility
Details Link
Deadline
Transfer $15,000 or more to a new Virtual Brokers account from another brokerage and Virtual Brokers may reimburse up to $150 in transfer fees. See terms and conditions for more information.
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion.
Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $10,000 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.
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to read terms and conditions for full details.
Transfer at least $25,000 or more in new assets to Scotia iTrade when opening a new account and Scotia iTrade may reimburse transfer fees up to $150. Be sure to read terms and conditions for full details.
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.
$135
$25,000
confirmed with reps. Contact client service for more info (1-800-567-3343)
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
Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info.
Sooo this week happened. For the bulls it was definitely a rough week all around but for the bears it has been a fantastic 2016. Unlike the question people were asking about the powerball lottery or real estate prices in Vancouver and Toronto (which was how high can this thing go?), Canadian DIY investors are looking at the loonie and oil prices and wondering how low can these possibly go?
Canadian discount brokerages are now also a part of each of these two different conversations. On the one hand, there are deals and promotions that have started to heat up again and we find ourselves wondering how high they’ll go this year to win new clients. Interestingly, there was also an industry shaking headline put out by one discount brokerage that had us (and other DIY investors) wondering how low can commission prices really go?
In this edition of the roundup we cover the latest commission price drop that is bound to make waves through the year. Next we take a look at the two latest deals to show up in the growing deals and promotions race. From there we’ll take a look at the discount brokerage tweets from the past week and preview the investor education opportunities coming up in the next week. Finally we close out with a look at what investors were chatting about in the forums.
Virtual Brokers First Canadian Discount Brokerage to Offer Commission Free Trading
This past week Virtual Brokers boldly went where no Canadian online brokerage has gone by announcing completely commission-free trading on equities. You read that right, there is now a Canadian discount brokerage that is offering commission-free trading.
It seems like unfortunate timing that what should have been one of the biggest news events in the DIY investing space since the commission drop by RBC Direct Investing in January of 2014 actually got eclipsed by the major market meltdowns.
Make no mistake, however, the latest move by Virtual Brokers is definitely going to make waves.
Virtual Brokers’ latest pricing plan is actually a part of a much more transformational move by Virtual Brokers to streamline their commission-pricing schedule away from the multiple commission plan model and narrow their offering down to two choices.
Gone are the “penny plan”, the “per trade” plan and the “per share” plan. Instead there is now the “commission-free” trading plan or the “classic plan”.
First, let’s examine the rather mind-blowing move to offer completely commission-free trading on equities.
While many DIY investors are all for paying the least amount possible for commissions, the first question for the skeptics that arises is how exactly anyone can offer commission-free trading?
The simple answer is that even though commissions have been eliminated, other fees and costs haven’t.
In other words, this is not the ‘no strings attached’ commission-free trading offered by US online brokerage Robinhood. Virtual Brokers’ commission-free trading plan has many strings and they are important to know about before considering this plan.
One of the most important pieces of Virtual Brokers’ new commission-free trading structure is the requirement to use one of their application-based trading platforms to place the trades. These platforms include Edge Trader Pro, PowerTrader Pro, RealTick EMS, ITS TraderLite and IRESS. The latter three platforms are typically geared towards and used by professional traders however this commission plan is only offered to non-institutional margin accounts and not for algorithmic trading.
The consequence of using the application-based trading platforms (rather than the web-based ones) is that the application based trading platforms are associated with monthly platform fees starting at $150 USD (for Edge Trader Pro) and going as high as $1344 USD per month (for IRESS and factoring in the 20% markup charged by Virtual Brokers for this platform).
Thus, DIY investors considering the “commission free” plan need to be prepared to pay at least $1800 USD/year in platform and data fees. At current USD/CAD conversion rates (1 USD = 1.45415 CAD) this works out to about $2618 CAD/year. Under the $9.99 flat commission structure which is their new standard offer, this works out to about 262 trades per year (or about 22 trades per month).
Of course, there are a few other important strings to factor in as well as the data/platform costs.
Under the new commission-free plan, ECN fees are charged on the trade and the interest rate associated with trades in this account are 1.5% points higher than the standard margin rates. Add to that the condition that the minimum account balance has to be greater than $2,000 at the time of placing a trade and it starts to become clear that the cost of commission-free equity trading can start to add up.
Finally, unlike the mobile-trading oriented Robinhood platform in the US, Virtual Brokers’ commission-free trading plan only works on the application based platform. Mobile trades are charged at the classic commission rates of 9.99 per trade. Similar to the Robinhood model, however, Virtual Brokers will likely be compensated for routing orders through various exchanges (i.e. they will be paid for the order flow). Exactly how much they earn and whether or not this impacts the ability to clear trades at the best-available market price for the quantity may be a source of controversy (as it has been in the US for brokerages doing the same thing).
The bottom line for DIY investors is that the economics and the conditions of the commission-free trading plan need some careful consideration.
In particular, the fact that the monthly price of the platforms is priced in USD instead of CAD is a very interesting and perhaps necessary move on Virtual Brokers’ part to keep their costs in check. The consequence of the huge difference between the US and Canadian currency means that the cost for this commission free plan will fluctuate in CAD – an extra piece of math that DIY investors may not want to do. Also active traders looking to exit or enter fast moving trades will have to factor in execution costs associated with ECN fees and potential fill issues based on order routing.
With all of the caveats above, however, Virtual Brokers has become the first Canadian online brokerage to offer a very different model for equity trading. They are the first Canadian discount brokerage to take equity commissions all the way to zero and that alone makes for headline grabbing marketing.
It will be a challenge for other Canadian online brokerages to compete with the “headline” factor of no commission trading and while there is still a ways to go before Canadian investors can take advantage of zero-commission trading a la Robinhood, the cracks in the 9.99 per trade pricing are starting to form.
All this in the first two weeks of January means that there’s still a lot that can happen across the board yet.
Starting first with Scotia iTrade who launched a commission-free trading offer which is good until the end of March. The promotional offer, which is open to new clients only, consists of at least 75 commission-free trades which are good for up to 90 days for a minimum deposit of $25,000. Deposit tiers go up to $250,000+ and the maximum number of commission-free trades weighs in at an impressive 500.
Interestingly, while Scotia iTrade has typically been the online brokerage that has pushed the large number trade or cash back offers (often associated with equally large deposits to qualify), they are not the brokerage with the highest deposit number offer this time around.
Credential Direct, not typically known for participating in deals and promotions, and certainly not at the very high ($250,000+) deposit tiers stepped into the deals action this month with a cash back offer of their own.
The offer itself is interesting because not only is there a cash-back component but also because they are donating to a good cause (Kids Life Line) for all new or existing clients that take advantage of the offer. In order to qualify, new or existing clients can deposit anywhere from $15,000 to upwards of $1,000,000+ and receive cash back offers ranging from $75 (for the $15,000 deposit) to $1,000 (for the $1M+ deposit).
The multi-tiered approach taken by both Scotia iTrade and Credential Direct is interesting because it is a way of competing with multiple brokerages’ offers with one umbrella offer instead of having to offer specific offers for different deposit levels.
That said, it is interesting to see Credential Direct being the only brokerage having an offer targeting deposits of at least $500,000 or $1M+. While unchallenged at these deposit levels, the cash back offerings are not necessarily as competitive as other brokerages’ offers based on the amount of deposit required.
For example, Questrade is offering a $500 Apple gift card for a $100,000 minimum deposit. And, while technically not an ‘apples to apples’ comparison to a cash back offer, the value gap is significant. When looking at cash back offers, however, BMO InvestorLine’s $600 cash back offer for a minimum deposit of $250,000 dwarfs Credential Direct’s offering at the same deposit amount level as well as at their next tier.
Where Credential Direct’s offer does stand out is at the low end of the minimum deposit spectrum. The cash back of $75 on a deposit of $15,000 is one of the more competitive cash back offers currently available at this deposit level.
History suggests that more deals are likely to emerge as we head into the storm of RRSP season. Add in the recent market turmoil and Canadian discount brokerages are likely going to have to ante up the offers significantly to provide some measure of confidence to rattled DIY investors.
That said, for investors in the market for an online brokerage, the lesson from the current range offers is clear – be sure to shop around and do some homework on the deals being offered. High deposit requirements don’t always offer the best return however since brokerages are clearly looking to pull in assets, don’t be afraid to ask brokerages to match a more competitive offer.
Event Horizon
It’s full speed ahead, and an interesting week ahead for discount brokerage-sponsored investor education events. Questrade looks to join in the educational event mix this week with a webinar on ETFs. Here are some upcoming sessions that may be of interest to options enthusiasts, and those who are new to investing. Technical analysis, strategy-based ETFs, and risk management round out this week’s selection.
The big news out of Virtual Brokers went mostly unnoticed by investors against the backdrop of a market meltdown. Other brokerages were in the spotlight for platforms going down during trading hours and for minor quirks.
From the Forums
Commission-free sizzle turns to fizzle
If there was one place that a commission-free trading offer was bound to get attention it was on RedFlagDeals’ investing forum. In this thread, it was interesting to watch how the reactions of excited investors changed as the finer details became apparent.
To HTML in a handbasket
2015 was a big year for web redesigns and even though RBC Direct Investing’s site is not directly referenced, it was interesting to read this post from Reddit about the RBC website front end change. One of the most interesting pieces had to do with communicating the site changing so that people don’t think they’ve been hijacked.
Into the Close
With a Bank of Canada rate announcement scheduled for next week, the drama for Canadian DIY investors could continue. For those that enjoy the volatility, however, this is prime time. On a sadder note, the world also bid farewell to an iconic artist in the passing of David Bowie this past week. Here’s a tip of the astronaut helmet to an innovator in his own right. Enjoy the weekend and hang on tight, next week could be bumpy.
This was a big week for rivalries. Whether it was Vancouver versus Calgary or Montreal versus Toronto, there was an electric kick off to the 2015/16 hockey season. It was a fitting backdrop as fierce rivals from across the Canadian discount brokerage landscape also stepped up their game with new features, promotions and movement taking place into the turn of their fiscal year.
In this pre-Thanksgiving edition of the roundup, we cover discount brokerages dishing out plenty of gravy with deals and promotions. Next we move onto one very big brokerage who has their sights set on a little blue bird this Thanksgiving. Of course, what would Thanksgiving be without a little tension across the table? We look the latest moves in investor education that are making a couple of brokerages cast some steely stares across the gravy boat. Finally we round out with a healthy portion of discount brokerage tweets, investor education and the latest chatter from DIY investor forums. Make sure to save room for desert!
Tiers of Joy
This past week, the biggest Canadian discount brokerage decided to wade into the deals pool. Of course any move by a brokerage as big as TD Direct Investing is bound to make more than a few waves with investors and competitor brokerages alike.
Unlike most of the other brokerages on the list of regulars, TD Direct Investing is not a frequent presence on the deals/promotions page. So, when they jump in, there’s probably a good reason behind doing so.
TD Direct Investing’s latest promotional offer is a commission-free trading deal which consists of three tiers of assets and provides three tiers of commission-free trades. Investors depositing at least $25,000, $50,000 or $100,000+ in assets can qualify for 50, 100 or 200 commission-free trades respectively.
The multi-tiered deal seems to be the trend amongst the bank-owned brokerages with BMO InvestorLine, National Bank Direct Brokerage and Scotia iTrade each with promotional offers that are tiered to deposit sizes.
The fact that TD Direct Investing has put an offer out that is both short in duration and timed to this point in the calendar year highlights that it is prime time for brokerages to be generating incentives for DIY investors.
To that end, Virtual Brokers also launched (or revived) their 25 free trade offer this past week although this time with a much lower threshold to qualify ($5,000 vs the previous $15,000). This now puts the deal count for Virtual Brokers at a modest 2, however their deposit thresholds are squarely aimed at younger or newer investors – long the stronghold of their nearest rival Questrade.
With the addition of the TD Direct Investing and Virtual Brokers offers, the deal count now stands at 17 and the deals and promotions section is looking more stuffed than a Thanksgiving turkey. For DIY investors, this is great news, as these promotional offers are adding gravy on top of falling commission prices.
TD Direct Investing #JoinsTwitter
Even though turkeys are on the minds of a lot Canadians, a much smaller, more blueish bird was on the mind of Canada’s largest discount brokerage. This past week TD Direct Investing pushed go on their own Twitter account and wasted no time throwing it down with promos, news and going after potential clients.
The saga of TD Direct Investing on social media is a fascinating story in and of itself (that’s a story for another time). Suffice to say, other Canadian discount brokerages are now at real risk of developing a few more wrinkles now that TD Direct Investing has their own Twitter account.
For most individuals, getting going on Twitter is a relatively straight forward affair, however for a bank and brand that is as big and visible as TD, the resources that are required to be present on social media are mind-boggling. Not only is there the usual marketing and advertising, there’s also the customer service, legal compliance and the generally-not-looking-awkward-trying-to-be-cool-on-social-media to worry about.
The “history” of TD stepping into social media, while brief, shows that they leverage their biggest resource – their people – in a hurry.
When the TD Twitter account went live, it was simultaneously shocking and awe-inspiring to see how fast the team army of client service reps dedicated to Twitter were deployed. As a reality check, it is now possible for #millenials to actually get a job at a bank that requires them to be on Twitter all day.
When TD Direct Investing gave its team members individual Twitter accounts and asked them to start tweeting not too long ago, there were close to a dozen individuals out and about in the world tweeting about things inside and outside of the world of finance.
Now, as TD Direct Investing launches their new Twitter handle, @TD_DirectInvest, they are battle-hardened, social savvy and are wasting no time going after their competitors.
The following tweet basically sums up and foreshadows what other brokerages such as Scotia iTrade and Questrade are in for:
Source: Twitter
As the battle for attention and relevance spreads to smaller screens and more fragmented channels, TD Direct Investing has joined the fray on Twitter. Although they have a modest following out of the gate (71 at the time of writing) they are very quickly going to get on the radar of a lot of social media investors organically, by advertising and, unfortunately for other brokerages, by going directly after DIY investors.
Moves in Investor Education
It’s fitting that in a week of big rivalries that one of the biggest rivalries in the discount brokerage landscape space flare up. Qtrade Investor and Credential Direct are battling it out in Western Canada and it looks like that fight is about to spill over into the world of investor education.
On the heels of the launch of their new front-facing website, Qtrade Investor not only underwent a drastic cosmetic change, but they also took the bold move of committing more fully to investor education. In their case, it wasn’t the traditional webinar/seminar route but rather through written ‘guides’.
Not content with Qtrade’s content, it looks like Credential Direct is countering by offering up a webinar of its own. Specifically, Credential Direct is holding a webinar from Fidelity Investments entitled “Economic and Market Trends”. While this is by no means the first time Credential Direct has held a webinar and even a webinar from a non-platform/ETF provider, the timing and optics suggest that Credential Direct is keenly aware that they are going to have to get more creative, or at the very least, more active with investor education.
Further east, however, is news that the winds of change in investor education at TD Direct Investing (and probably for everyone else) are now blowing in from the south. What are all these airy allusions referring to?
Spotted this past week was an announcement on TD Direct Investing’s shiny new Twitter account that Tasty Trade will be holding an investor seminar in conjunction with TD Direct Investing in downtown Toronto near the end of October.
Source: Twitter
The primary reason that is this a big deal for investors and investor education providers is because Tastytrade offers up content for DIY investors and has a very big following in the US. To quote the Wall St. Journal on who Tastytrade’s founder is:
For Tastytrade to move north and specifically to be teamed up with TD Direct Investing demonstrates that when it comes to investor education, TD will continue to lean on its resources south of the border (such as Investools and ThinkOrSwim) to offer something many other Canadian brokerages simply cannot.
Discount Brokerage Tweets of the Week
As was already described above, this past week on Twitter marked a milestone in the discount brokerage social media space. With TD Direct Investing now stepping onto the ice and immediately dropping the gloves with Scotia iTrade, it looks like the brokerage battles are only going to get fiercer. Mentioned this week were Questrade, RBC Direct Investing, Scotia iTrade, TD Direct Investing and Virtual Brokers.
Event Horizon
Fall is in full swing, and it’s a busy week ahead for discount brokerage-sponsored investor education events. Here are some upcoming sessions that may be of interest to those who are new to investing, female investors, options enthusiasts, and those interested in technical analysis. Risk management strategies, ETFs, and a margin account primer round out this week’s selection.
In this post from the RedFlagDeals investing thread, hints and whispers of a new TD Direct Investing trading platform WebBroker are circulating. We’ve heard about this being ‘in the works’ so it will be interesting to see what the reaction will be like when it goes live. Worth a read for some early sentiment on the proposed upgrade.
Is free worth it?
There’s no denying that commission-free ETFs get the attention of the ‘couch potato’ investing crowd. In this post from the reddit Personal Finance Canada subreddit, it is interesting to see how Scotia iTrade’s commission-free offering stacks up.
Into the Close
That does it for this Thanksgiving Weekend edition of the roundup. Have a safe and enjoyable long weekend and don’t forget to carve out some time for fun! Remember, Canadian markets are closed on Monday.
It seems that nowhere was safe from the bears this week. Not stock markets or commodities or even swimming pools. While the bears are out having a pool party, Canadian online brokerages are racing to see who’ll be the ‘last one into the pool’ when it comes to upgrading their website.
In this week’s roundup, technology dominates as we take a look at the latest brokerage to release a new trading. Next we take a look at new platform features being launched by an independent brokerage. Finally we take a look at the commentary about brokerages on Twitter, check out the upcoming investor education events and finally close out with some interesting forum threads for some leisurely reading.
Credential Direct Launches New Trading Website
This past week Credential Direct joined the growing number of Canadian online brokerages undertaking website refreshes and redesigns. Specifically Credential Direct has overhauled their website back end – the area where users would log in to make trades, manage their account and conduct research.
As with many newer websites, Credential Direct has redesigned the back end to be more responsive and adjust to different screen sizes. While the majority of ‘trading’ users will be on a desktop, those who are occasional investors will increasingly find themselves checking in to their accounts on either a mobile phone or a tablet.
Credential Direct already has a dedicated mobile-friendly site so it was interesting to see them style their primary site back end as if it were a mobile-friendly site. While the ‘responsive’ functionality looked promising, when tested on an iPhone 4s safari browser their newest design was substantially less mobile-friendly than their dedicated mobile site which does render well on mobile.
Nonetheless the design refresh has resulted in a less cluttered appearance and new left-of-screen navigation menu. Information within the site appears easier to find and view, especially on a larger monitor. Below is a promotional video by Credential Direct on their new website back end.
The design choice to keep things simple means that users get a functional experience. That said there are some features that indicate the website is still a work in progress, especially from a user experience point of view.
Items in the Plan sub-menu, for example, contain various handy calculators however when clicking on the links users get taken out of the website to a third-party set of tools. Similarly, clicking on the education section takes users back to the front end of the website.
While it’s not a make-or-break feature, from a user experience perspective it is a bit jarring to move from one set of design layouts and navigation to another.
For DIY investors, getting used to different technologies, websites and trading interfaces comes with the territory. More and more, however, the transition between devices using online software is being made to feel ‘seamless’ (amiright Netflix?) so brokerages undergoing redesigns now have the added challenge to get this right.
As online trading platform user comments from across social media this past week have suggested, however, there’s a fine line between form and function that discount brokerages need to pay attention to. Trading online comes down to performance and good looking websites that can’t do what DIY investors need or want are sure to earn ire instead of inspiring awe.
Overall, it is interesting to see how Credential Direct has tackled the multi-screen world that DIY investors now expect to function in. Specifically, the fact that their latest redesign does not offer a truly multi-device responsiveness means that users are exposed to different ways of navigating depending on the device they choose to access.
Fortunately, smaller screens may be on their way out and for now Credential Direct has a mobile site that works well for those screens. That said, the look, feel and organization of the new full site and the mobile site are just different enough to make navigating between devices feel fragmented.
With a busy fall season filled with new brokerage website releases, we’ll certainly be glued to all of our screens to see what the other discount brokerages come up with next.
Questrade Livin’ on the Edge
In keeping with the platform and technology upgrades theme, Questrade also officially announced a number of interesting upgrades to their online trading platform IQ Edge.
Designed for power users and those that want the equities ‘trader’ feel, IQ Edge is the most feature-rich of the entire suite of Questrade’s platform family which consists of four platforms: IQ Essential, IQ Web, IQ Edge and IQ Mobile.
With the latest features, however, Questrade’s platform offering has gotten even more powerful and will start to make other discount brokerages scramble to deploy some upgraded bells and whistles.
Here’s a quick overview of some of the new features:
Integration with StockTwits
Order management directly from charts
New categories and filters in the market movers window (great for active traders)
Cross zero orders
Options rollovers (apparently coming soon)
For the xylophone loving crowd, Questrade has put together a video that shows some of the new features being integrated into their IQ trading platform. For more details on the release, Questrade’s blog post explains it further.
The integration of social media streams into the trading platform and the category filters are certainly getting some folks excited. That said, with any technology change or upgrade there are bound to be hiccups (we saw a few Twitter users chime in on this in our tweets of the week below).
Overall, Questrade appears to be firing on all cylinders when it comes to technology upgrades. Just a few weeks ago they also announced a soon-to-be released revamp of their trading platforms into a new ‘trading experience.’
Questrade has clearly recognized that one of their biggest user bases, younger investors, are on different screens all the time and creating a seamless experience in a trading platform is a priority. Whether or not Questrade succeeds will be seen over time, however the early reveal shows that they’re up for the challenge.
Clearly technology upgrades and user experience upgrades are high on the list of what Canadian discount brokerages are concerned about – and with good reason. Websites, screens, devices and technology that four or even two years ago were passable are now deemed to be antiquated.
With technology moving as fast as it is, one of the metrics DIY investors will certainly be factoring in is not only how responsive websites are but how responsive to change their online brokerage is or isn’t.
Discount Brokerage Tweets of the Week
This week on Twitter it was interesting to observe what happened when both Questrade and Credential Direct released some shiny new bells and whistles.
In the case of Questrade, the reaction from their user base was generally positive, unprompted and noticeable. They also let people know that the changes were there which might have helped things along.
For Credential Direct, on the other hand, the reaction was more subdued. Perhaps the most interesting part, however, was that they elected not to broadcast the new release via their social media account – at least not yet.
Mentions this week were at a minimum however tweets from and about Credential Direct, Questrade and Scotia iTRADE still make for some colourful reading.
Event Horizon
Heading into the end of August there’s still more than a few interesting investor education events to check out. Topics include options, ETFs as well as fundamental and technical analysis. Click below for more info.
As any IT or tech support operator knows, sometimes folks ask for help only to find out the answer themselves. In this post from the reddit Personal Finance Canada thread, it was interesting to see one user ask about transferring funds from one institution into their online brokerage account only to find an answer on their own. The lesson, however, is one in modern human behaviour: having access to forums and a community to ask is a preferred way for some people to navigate the world.
Give them a Toe
As they don’t often get much conversation time or coverage, it is interesting to see what folks have to say about Qtrade. In this post from RedFlagDeals, one user was curious about getting started with ETFs via Qtrade. Naturally those that can buy ETFs for free wondered aloud what was worth more than the commissions.
Into the Close
That does it for this week’s roundup. Heading into one the last weekends of the summer, there are folks that are looking for pools filled with water and pools filled with NFL football talent. Yes, in addition to da Bears, there will also be Giants, Packers, Seahawks and more on the minds of some. In the meantime, here’s some fun footage of actual bears enjoying the summer.
When it comes to DIY investing – or any investing, emotion is a lever best-not pulled. For discount brokerages, however, being boring doesn’t get attention and not getting attention means being left out.
In this long weekend edition of the roundup, we’re excited to add a new feature into the mix. First, we take a look at the latest attempts by discount brokerages to get attention, then highlight an upcoming learning event. Next, we roll out something new that will shine a light on something lots of people want to know about Canadian discount brokerages. Following our surprise new piece we’ll take a look at the upcoming investor education events and close out with the investor chatter from the forums and very cool video for the rocketeer enthusiasts.
A better toaster
What happens to an industry where it’s tough to tell one provider apart from another? Toss in a toaster.
Odd as it may sound, toasters and financial services go way back. The idea of tossing in a free toaster to attract new bank clients was popular hook in the 1950’s and, while the idea of attaching an incentive to draw in new business is not new, it’s interesting to see what discount brokerages and banks are doing in 2015.
This past week, promotional juggernaut Questrade launched their latest deal of advertising an Apple Watch to individuals signing up for an account and depositing at least $100,000. For those keeping score at home, this brings the consecutive mentions of the Apple Watch in the weekly roundup to three and the number of deals Questrade runs to more than everybody else.
Of course, digging deeper into the fine print, it appears the offer is actually not for an Apple watch, but rather for an Apple Store gift card worth $500.00. A quick check of the Apple store found the following models of Apple watches:
Apple Watch Sport (ranges between $449 and $519 +tax)
Apple Watch (ranges between $699 and $1459 +tax)
Apple Watch Edition (ranges between $13,000 and $22,000 +tax)
Thus, the clever marketers at Questrade have managed to grab headlines and attention with an item that ranges in price between $449 and $22,000, but really refers to the most basic (but still cool) model of the Apple Watch Sport.
Questrade has largely gone unchallenged by other Canadian online brokerages in offering up Apple products as incentives for new account openings. Recall that Questrade has run with the iPad mini promotion multiple times over the past two years.
In the financial services market, and in the online discount brokerage segment in particular, this is one of those moments where someone has done their marketing homework on “differentiation” and the “halo effect”. So what has Questrade done to make themselves stand out?
The answer is just about everything, and it seems to be working.
Did we notice? (Yep); are we talking about it here (earned media: check), are other DIY investors are talking about it on forums and social media? (more earned media: check) and of course co-branding an online brokerage alongside a brand like Apple with their most buzzworthy product right now probably doesn’t hurt either.
Relative to the other Canadian discount brokerages, Questrade appears to be putting on a little bit of a marketing clinic online. Although the tactics aren’t necessarily new, they are nonetheless effective in attracting attention and, importantly, appealing to emotion.
For DIY investors, especially those looking for online trading accounts for the first time, there is only going to be more marketing coming their way. Competition between brokerages in Canada is fierce and if one brokerage is doing something right, others are sure to follow suit. Where could it end? A look at the Chinese banking sector’s approach is a window into how extreme this incentive game gets with iPhone 6s and Mercedes’ being offered.
It’s important, therefore, to see past the incentives and to reign in the emotion. The most important component of picking a service provider is whether they are a good fit. A good set of questions to always keep asking are:
Do they do what you need them to do?
How well do they do it?
How much are they charging for it?
Through the marketing efforts, all businesses (big and small) hope that a promotion or deal can change how you value their offering. That’s simply a business reality for buyers and sellers.
That said, most folks probably need another screen to look at as much as they need another toaster. The art of marketing, however, is more about want rather than need. And, it is exactly why DIY investors should know what they need before they get something they don’t want.
This event typically sells out ahead of the session so be sure to RSVP early to avoid disappointment. The cost for the day-long session is $45 and includes breakfast, lunch and training materials. Click the following link for more information on Options Education Day Vancouver.
Discount Brokerage Tweets of the Week
As part of our ongoing effort to bring together the fuller picture of what’s going on in and around the Canadian discount brokerage landscape, we are excited to (re)release the discount brokerage tweets of the week.
The format of the tweets of the week has changed somewhat from its earlier incarnation. Instead of featuring what online brokerages themselves are saying, we’ve included the conversations, comments and perspectives of both DIY investors and the brokerages who are on Twitter. The brokerages may be on Twitter directly or as part of their parent company’s customer service team. Several of the bank owned brokerages, in particular TD Direct Investing, RBC Direct Investing, BMO InvestorLine and CIBC Investor’s Edge, handle incoming tweets via their parent bank Twitter accounts.
In this first week, it was interesting to see that brokerages big and small encounter issues with account opening and delays getting things up and running. Of course, what’s equally informative is how fast and how helpful client service teams are on Twitter. This week there are tweets about or to the following discount brokerages:
BMO InvestorLine
Credential Direct
Questrade
RBC Direct Investing
Scotia iTrade
TD Direct Investing
Noticeably absent from the list this week was Virtual Brokers, who’ve been quiet on Twitter since early April.
So, as another first we’ve brought to the Canadian discount brokerage space, here are the curated discount brokerage tweets of the week. #Enjoy!
Opening an online trading account is still a somewhat involved process. In this post from reddit’s Personal Finance Canada section, one user asks about the initial funding requirements for a Questrade account. Fortunately both the community and a Questrade rep provide a detailed answer.
Leftovers
With many parties slated to take place this Victoria Day weekend, there’s the fun part and then there’s what happens after the party’s over. For most there’s some cleanup involved. In this post, again from reddit’s Personal Finance Canada section, when the party was over for one stock in an investors portfolio there were still two laggard shares left in their account. Check out how the community explained the process of getting rid of them.
Discount on the Potato
It seems fitting heading into a long weekend that the infamous ‘take it easy’ approach of the Canadian couch potato portfolio strategy came up this past week. Specifically, in the RedFlagDeals investing forum, one user asked about whether the couch potato portfolio is something that can be used with Virtual Brokers.
The Closing Bell
That does it for this edition of the weekly roundup. A quick reminder that Canadian markets will be closed on Monday for Victoria Day and will reopen for Tuesday. Here’s some spectacular footage of some awesome technology to propel you into the weekend – cue the rocketman! Have a safe and enjoyable holiday weekend.
With markets closed today in observance of Good Friday, investors on both sides of the border can spend their weekend recounting United Airlines memes, legalization of marijuana in Canada and the mother of all bombs. Say what you will about the news, but investors have a lot on their plates to digest – and that’s before sitting down to a long-weekend dinner.
Sooo this week happened. For the bulls it was definitely a rough week all around but for the bears it has been a fantastic 2016. Unlike the question people were asking about the powerball lottery or real estate prices in Vancouver and Toronto (which was how high can this thing go?), Canadian DIY investors are looking at the loonie and oil prices and wondering how low can these possibly go?
