*Updated* Welcome to the first online brokerage deals and promotions update for 2022! January is an exciting month for DIY investors in Canada, as it signals the start of a new contribution window for TFSAs as well as the final sprint to the 2022 RRSP contribution deadline in March.
This year in particular there’s lots for self-directed investors to celebrate. As we covered in our latest Look Back / Look Ahead series, Canadian online brokerages are working on exciting new features for DIY investors. Also worth celebrating is a new class of zero-commission online brokerages readying to launch in Canada.
In addition to celebrating the end of 2021, Canadian self-directed investors can celebrate the fact that all big bank-owned brokerages are well represented in the online broker deals and promotions department. And, despite the several deals that expired at the end of 2021, there is still a lot of choice – especially around cash back promotions. The big story, however, isn’t for individuals with million-dollar portfolios – quite the opposite in fact.
This year, it appears that the battle to attract new clients and assets is heating up for new investors.
Comparing the minimum deposit amounts required to qualify for an offer last year versus this year reveals some dramatic drops. TD Direct Investing, for example, lowered their minimum deposit requirement by 90% compared to last year, and BMO InvestorLine’s latest promotion (see below) lowered the requirement by 70% compared to last year at this time. Finally, Qtrade Direct Investing lowered their minimum threshold by 40% from $25,000 to $15,000. Decreasing deposit minimums aren’t the only signs of heated competition. We’ve also spotted increased bonus amounts surfacing relative to last year. In particular, the latest BMO InvestorLine promo bonus of $150 at the entry point deposit tier is up 50% compared to last year.
With commission-free trading now a reality at multiple Canadian online brokerages, online brokerages are going to have to rethink how they approach deals and promotions. In December, we saw this start to happen with the latest RBC Direct Investing promotion. Their current commission-free trading promotion comes with 100 commission-free trades which are good for up to two years – a record high offer and extremely long period of time to take advantage of it for this online broker.
On balance, the news is great for anyone looking to open an online trading account and get a promotion while doing so. Even existing clients of select Canadian online brokerages will be happier knowing there are promotional offers for depositing additional funds into their account.
With the 2022 RSP contribution deadline coming up quickly, there might be one or two online brokerages willing to launch a new very limited time offer. But realistically, the slate of offers currently available is going to be very difficult to compete against. With a new online brokerage (MogoTrade) in the wings and even more zero-commission online brokerages in the works, the current group of online brokerages is using deals and promotions to go on the offense heading into RSP season.
Expired Deals
This is a busy section this month, potentially busier than needed depending on whether some legacy promotions are actually expired or simply just not updated by the time of publication of this deals update.
First up, HSBC InvestDirect’s commission-free trade offer officially expired into the end of the year. It’s unclear if a new promotion will be launched ahead of the RSP deadline, however, historically HSBC InvestDirect does launch offers throughout the year. It will be interesting to see how they navigate the larger and more aggressive offers from competing online brokerages.
Next, another commission-free trade offer expired at the stroke of midnight on December 31st. Qtrade Direct Investing’s 50 free trade offer officially retired, which isn’t too bad since there is a cash back promotion from Qtrade already in motion.
For those keeping score at home, BMO InvestorLine officially retired their fall cash back promotion and replaced it with an even more competitive one (see below). It’s listed here for tracking purposes.
Questrade is on the list for expired promotions, which is interesting considering that both (technically expired) deals are visible on their website at the time of publication (this also happened last year as well). The two offers are their standing 5 commission-free trade offer (which pales in comparison to other Questrade promotions for commission-free trades) and their Questrade advantage promo (one month of commission-free trading). We’ll monitor their promotions section for updates on these two long-standing offers.
Extended Deals
*Updated January 9: It may have taken a few days to shake off 2021, but the expiry dates of two Questrade promotions have been updated. The two promotions in question: the five commission-free trades offer and Questrade Advantage. The new expiry dates for these promotions are the end of 2022.*
No extensions to promotional offers to report at the moment.
New Deals
It was great to welcome the new year with a BMO InvestorLine promo launch. The latest offer is a tiered cash back offer with incredibly competitive cash bonus in deposit tiers ranging from $15,000 to $499,999. The cash back amounts range from $150 to $2,000, with BMO’s offer leading that of their peers at the $15,000; $50,000 and $250,000 deposit levels specifically.
Looking at the calendar, it’s hard to fathom that we’re almost through one month of 2021. Time, it appears, is moving quickly as events unfold, and it seems fitting that, like a good Bernie meme or Tom Brady, what’s old can be made new again.
In this edition of the Weekly Roundup, we focus on the relaunch of the Sparx Trading newsletter and on why there are some important (and timely) elements that we’re putting together for folks interested in online investing. Next, in keeping with the close-out of the month, we’ve collected the stories that we wanted to focus on in January but haven’t had the opportunity to do so yet. Enjoy the medley of stories we found interesting throughout the month. Finally, we wrap up with commentary from DIY investors in the forums and on Twitter.
Don’t Call It a Comeback (But It’s Cool If You Do)
After being dormant for the past seven years, the SparxTrading.com newsletter has officially been rebooted. And, it feels great to be back (on email).
In that time, a lot has changed about the landscape of the Canadian online brokerage industry, and yet, remarkably, there are still some things that have yet to change. Throughout that time, however, there have been a few constants at SparxTrading.com, chief among them the Weekly Roundups and the deals and promotions updates.
We live in a world where people now communicate much more with short videos than with email, so why would we think to a) (re)launch an email newsletter, and b) do so now? Let’s dive into both of those questions below.
One of the biggest constraints for any content creator is resources, and dialing back the clock to 2014, SparxTrading.com and the parent company, Sparx Publishing Group, were much smaller. Today, Sparx Publishing Group has grown to over 15 team members, which enables our team to do some pretty creative and amazing work, including to help take Sparx Trading content to a new level of awesome. Happily, it’s not only the team that’s grown here at Sparx but also the audience of the website and, in particular, the Weekly Roundup.
SparxTrading.com is one of the longest and most continuous sources of coverage on the Canadian online brokerage space, and it turns out that DIY investors appreciate the content being produced. Interestingly, the Weekly Roundup has actually become required reading across the online brokerage space, with many folks at online brokerages tuning in to stay on top of what’s happening in their industry. Also pretty cool: Some rather prestigious research firms that charge a pretty penny for their insights and research on the Canadian online brokerage space use our content to stay on top of the activities and trends.
All told, it’s been an amazing journey to get to this point. There is value being created for audience members, and meaningful change for DIY investors, which arises as a result of the forum we’ve created. Of course, things could always be better. And, with the relaunch of the monthly email newsletter, we think it will be, as this format will help to address the challenge of staying on top of the huge volume of news with highlights of the latest developments, delivered to subscribers’ inboxes. Here’s a full rundown of what’s inside.
First, something fun. We love the imagery of the bull and bear, and so we thought we’d capture these two important stock market characters in fun and interesting ways. The kickoff to the newsletter is in line with that sentiment, bringing a familiar trope back to life from the famous scene in the movie Say Anything.
Of course, superfans of the Sparx Trading universe can check out the Sparx Publishing Group Instagram feed for more fun, movie-inspired posts featuring the bull and bear. Some favourites include:
Dirty Dancing
The Sound of Music
What to Expect When You’re Expecting
Weekend at Bernie’s
Ghostbusters
In addition to a fun start to the newsletter each month, readers can expect to get down to business with updates on the biggest stories from the Weekly Roundups from the previous month. To help keep things quick and easy to digest, we’ll be picking the top two or three stories to feature, with links back to those stories for folks who want to dive into more detail.
There’s also a news section that will include quick updates from Sparx Trading as well as other timely announcements that would be appropriate to flag for our readers’ attention. The reboot version of the newsletter featured an announcement about the upcoming influencer edition of the Look Back / Look Ahead series for this year.
Finally, another reboot inside of a reboot is the relaunch of Mark to Market, a stock market–themed comic developed here at Sparx. Originally published in 2013, Mark to Market is being relaunched to coincide with the launch of the new newsletter, and the origin story and episodes will appear on SparxTrading.com, specifically as part of the blog, which will also be getting a major overhaul in the coming weeks. For some quick context, however, Mark to Market is an edutainment piece, made for DIY investors and stock market enthusiasts, to help assist in navigating the maze of products, services, and providers that self-directed investors encounter. It is especially timely given the surge of interest in online investing that took place in 2020, particularly among new investors.
The relaunch of the Sparx Trading newsletter is one in a number of new initiatives this year. That said, it also highlights the fact that in the world of DIY investing, there are trends and cycles to the investor experience. Email, while not groundbreaking, is still an effective channel to reach a good portion of the audience that relies on or is curious about online brokerages in Canada. Think of it as the Tom Brady of communications channels: still pretty much a reliable delivery mechanism.
If you haven’t already done so, subscribe to the newsletter, and be sure to check out what’s coming up in the next episode!
Lightning Roundup: Other Interesting Developments
After the time distortion that was 2020, it’s amazing to see that January of 2021 is almost over. Much has happened during the month, so this is our chance to shine a spotlight on stories and items that we didn’t get the opportunity to explore more fully during the month. While we’re not going to dive deep, here is a quick highlight of the stories that crossed our radar in January that will be worth watching as the year proceeds.
Gaining Wait: Customer Service Wait Times Raising Tempers
Nobody likes to wait in line, but Canadians are generally a polite bunch and willing to put up with a bit of a queue to resolve important matters. So, when tempers flare and stories emerge of wait times consistently stretching beyond two or three or four hours on the phone just to talk to a representative at an online brokerage, it’s only a matter of time before it hits the news. This is a story that has been a long time in the making; however, it’s gaining momentum among the popular media channels – including The Globe and Mail – and we predict even more to follow. Customer wait times at online brokerages in Canada have ballooned to almost incredulous levels, so much so that this story could gain traction with consumer and investor protection agencies. Can markets operate fairly and efficiently without market participants being able to connect to online brokerages in a reasonable time frame? The most widely impacted clients are those who need to talk to brokerages by phone (and now even online chat is impacted). Check out this story from The Globe and Mail’s Rob Carrick for a clear articulation of the problems DIY investors are encountering when trying to connect to their online brokers by phone.
Columnist @rcarrick said he’s received complaints about several bank-owned firms, but @TD_DirectInvest was named most often. As the largest player in the brokerage business, TD has had issues keeping up with client demand to speak to its live reps. https://t.co/J7SXJWBNWx
Getting a Taste for More: Tastytrade Gets Acquired
Buying up online brokerages is all the rage in the US. Schwab bought up TD Ameritrade, Morgan Stanley acquired E*Trade, and now, one of the newer kids on the block, Tastytrade, has been acquired by the UK-based IG Group for $1 billion (USD). Tastytrade was founded in 2011 by Tom Sosinoff, the founder of Thinkorswim (which was acquired by TD Ameritrade for $600 million), and it has earned a reputation for engaging content and a focus on options trading – something that has exploded in popularity through 2020. It will be interesting to see how or if this impacts the plans for Tastytrade to come to Canada. Originally, something was telegraphed for early 2021, but this latest development means that someone else is now pulling the corporate strings, and the move into Canada could be delayed or rethought. Alternatively, a much bigger entity backing Tastytrade could also spell more ambitious opportunities. The details of the transaction reveal that IG Group is ponying up a billion dollars for over 105,000 active accounts (roughly $9.5K per account – yikes). That billion-dollar figure is made up of $300 million in cash and $700 million in stock, which ends up making the shareholders in Tastytrade 14% shareholders in IG Group.
Let’s Talk About Trades
The end of a year is a great opportunity to reflect back on big milestones or achievements. One interesting thing that has started to emerge courtesy of Robinhood that has found its way into content schedules among Canadian online brokerages is more attention being given to (and actual reporting on) the popular stocks traded by DIY investors. There was a whole lot of controversy stirred up when sites that monitored Robinhood’s publication of these figures emerged. However, in Canada, the timescale and scope of coverage of “what’s popular” didn’t bring with it the same scale of attention or a rapid enough timeframe to make the same kind of waves as that same information would have in the US. Over the course of the year, we’ve noticed the spotlight shining on popular trades from 2020, with the most recent example coming from RBC Direct Investing.
Influencer’s Gonna Influence
What happens when you get some of the most informed minds in the Canadian online brokerage space to collectively weigh in on trends and developments related to the online trading experience in Canada? This week, readers will find out.
The new Influencer Edition of Sparx Trading’s Look Back / Look Ahead series is set to go live this week, and it features contributions from Rob Carrick of The Globe and Mail, Michael Foy from J.D. Power, and Glenn LaCoste from Surviscor. Each of these contributors has been researching the online brokerage space in Canada for many years, and, as a result, each has a uniquely qualified perspective on the DIY investing experience from a variety of vantage points.
Be sure to follow Sparx on Twitter for the first notification of the launch of the new series! Also be sure to check out the online brokerage version of the Look Back / Look Ahead series to get up to speed on what the industry voice is.
In this post, a Redditor shares a screenshot about the new pre-market trading hours being offered by one Canadian online brokerage. Fellow Redditors rejoice – and request even more improvements, including after-market trading hours, an improved app, better customer service, and reduced fees.
Engineering a Lucrative Life
A 23-year-old engineering grad with a good job, $100,000 to invest, and zero experience in the markets asks in this post how to get started. Hundreds of fellow Redditors weigh in with advice on everything from couch potato investing to company-matched RSPs.
Into the Close
That’s a wrap on the end-of-month edition of the Roundup. There’s lots of interesting work going on behind the scenes, and the start to 2021 is filled with all kinds of welcome surprises, including Tom Brady making it into the Super Bowl again (some would argue that’s no surprise). Speaking of surprises, there are plenty of earnings slated for the week ahead, and it seems like folks in the US government, starting with the President, are back at work. It’s going to be a full week, so here’s hoping you start on a positive note and finish on a profitable one!
Sometimes you just have to call a spade a spade. 2021 is shaping up to be more of a hangover than a do-over. Now that we are just over 2% into the new year, the road ahead is clearly bumpy. Thankfully, with talk of new promos and the finer points of design choices, we have much brighter news to report than most of what’s been flying (or not flying) around on social media.
In this post–coup d’état edition of the Roundup, we provide a refreshing piece of good news as multiple online brokerages launch new offers and reset the game clock on existing promotions for DIY investors to take advantage of heading into this year’s RRSP deadline. Next, we weigh in on an interesting conundrum for the online investing experience: innovate quickly or stick to the basics? Happily, we’ve got some interesting forum chatter and informative commentary from DIY investors on Twitter to close out on.
Deals Activity Shows Cash Is King
If there’s one thing we could all use right about now, it’s a healthy dose of positive developments. Fortunately, the January deals and promotions section has been filling up with just that – especially for online investors looking to score a deal on an online investing account ahead of the RRSP contribution deadline.
Kicking things off is the great news that RBC Direct Investing has jumped back into the deals and promotions section with a cash-back and commission-free trade offer. After the conclusion of their go-to commission-free trade promotion at the end of 2020, it seems that RBC Direct Investing made a resolution to start off the new year with something bigger and bolder for DIY investors this RRSP season.
Beginning this January and lasting until the end of March 2021, RBC Direct Investing is offering a tiered cash-back promotion. The cash-back amounts range from $50 (for deposits of $5,000) up to $2,000 (for deposits of $1 million or more). In addition to a cash-back amount, all deposit tiers qualify for 10 commission-free trades that are good through to the end of August 2021, leaving ample time for individuals to use this bonus.
We were also eagerly awaiting what BMO InvestorLine would launch early this month. Their previous promotional campaign expired in early January, unlike many of their peer firms’ deals, which expired at the end of December, so it was interesting to see what BMO InvestorLine would do given the clear trend toward cash-back offers from their competitors this year.
Fortunately for DIY investors, BMO InvestorLine has shown up with a relatively competitive offer and significantly dropped the qualifying deposit amount for the lowest tier of the deal from their usual range of $25,000 to $50,000. As with their previous cash-back offer in the fall, the new cash-back offer is a tiered promotion; however, this promo features deposit tiers starting from $15,000 (which offers $150 cash-back) up to deposits of $1 million and more (which offers $2,000 cash-back).
In addition to the launch of new offers this past week, we also saw several offers have their expiry dates officially updated. Notably, there were a couple of offers from Questrade – their five-free-trades offer, as well as their one month of commission-free trading, saw their expiry dates move to December 2021. Also, the refer-a-friend offer from BMO InvestorLine was extended another year, with the new expiry date falling on January 6th, 2022.
If there’s one clear trend this year when it comes to online brokerage deals and promotions, it’s that cash is king.
All of the big five bank-owned Canadian online brokers have a very competitive cash-back promotion now live, with most of them expiring at the beginning of March (RBC Direct Investing’s is the only exception, finishing at the end of March). That said, there are some patterns that emerge in the offers that are worth exploring further.
First, it was interesting to note the trends at the extreme ends of the deposit tiers.
At the lower end of the deposit spectrum (generally under $25,000), all of the big bank-owned online brokerages had some kind of offer in place. RBC Direct Investing had the highest offer, with a cash-back award of $50 and 10 commission-free trades, an offer that their only rival at this deposit level, Scotia iTrade, was well behind (Scotia iTrade offers $25 cash-back). Interestingly, BMO InvestorLine, who lowered their deposit threshold to qualify for a deal down to $15,000 (compared to the $50,000 minimum deposit for their fall campaign), went significantly higher than any of its peers with an offer of $150, which is 50% higher than what TD Direct Investing offered ($100).
Meanwhile, at the higher deposit levels ($500,000+), there appears to be a whole new battleground forming.
To start, almost all online brokerages with cash-back promotions have an advertised offer for deposits of at least $1 million. The one online brokerage that does not, however, is TD Direct Investing. This seems like a remarkable decision given the value of the prospective clients at that level, and while for portfolios of $1 million or more the deal isn’t the first thing that a shopper might consider, all else being equal, three direct competitors are willing to pay $1,000 more for the business.
It bears mentioning that the appearance of $1 million as a deposit tier used to be a headline maker; however, this deposit tier has almost certainly become the new-normal top-end deposit. That said, it was also fascinating to observe that Qtrade Investor created a new top-deposit tier for individuals bringing over at least $2 million. Given that the bonus Qtrade Investor is offering for this deposit tier ($2,000) is the same amount that rival online brokerages are offering for deposits of $1 million, it seems as if this tier was a clever way in which to stand out against their competitors. While the dollar amount for the bonus isn’t higher, the deposit tier is, which makes Qtrade Investor appear to be larger than their bank-owned peers. Further, there are no other non-big-five-bank-owned brokerage competitors to Qtrade Investor at these higher-level deposit tiers.
Aside from extreme deposit tiers, it was also fascinating to observe which segments were sought after by specific brokerages.
For example, neither BMO InvestorLine nor TD Direct Investing saw value in putting offers into market for prospects with less than $15,000. Additionally, in the deposit range between $15,000 and $500,000, BMO InvestorLine is aggressively pricing their cash-back bonus. With the exception of the $25,000 tier (in which TD Direct Investing has the highest cash-back offer), BMO InvestorLine either has the highest amount or is tied for the highest amount of cash-back (at the $100,000 deposit tier with CIBC Investor’s Edge).
With several key names still on the sidelines heading into RRSP season, we suspect that there might be a few offers still to come to market; however, it is unlikely that the current prices will be significantly outbid across pricing tiers. Instead, if an online brokerage is contemplating launching a cash-back offer, it is more likely that they will stick to the average offering in that tier or find a way to combine cash-back with commission-free trades to have a more competitive offering.
Thankfully, the deals and promotions news for Canadian DIY investors is actually improving in 2021 – and that was coming off a strong close to 2020 in terms of offers.
Most of Canada’s largest online brokerages have the most popular offer type (cash-back) available, which makes this an opportune time for anyone considering opening an online investing or online trading account to get the maximum benefit for doing so. Of course, we’re curious what some smaller or lesser-known online brokers are going to do in terms of promotions, but from now through the end of February we expect the focus to be on marketing and advertising.
Mind the Generation Gap: User Experience for Online Investing in the Spotlight
There’s no question that the picture of the world we’re living in exposes divisions nearly everywhere we look. In the world of online investing, although it is not nearly as polarizing, there is a significant challenge for online brokerages to contend with: trying to balance providing the kind of user experience younger (read Millennial and now Gen Z) investors expect with that preferred by the existing (and likely higher-asset-bearing) clientele comprised of “boomers.”
Originally, this second story of the Roundup was going to focus on only one topic – either the myriad of recent legal woes experienced by Robinhood while the Weekly Roundup was on hiatus, or an article published by Rob Carrick in The Globe and Mail at the end of December explaining to baby boomers how they can manage their investments using online brokerage apps. In diving into the comments of the Carrick article, however, it became clearer that the story of Robinhood’s regulatory troubles and the realities of mobile apps for older clients represent two sides of a user-experience coin. Hence, they’re both the focus of this particular story.
Starting first with Robinhood’s journey back into the spotlight at the end of 2020. Without question, for most of 2020, it was an incredibly positive year for the balance sheet of the scrappy “zero-commission” online brokerage in the US. At the outset of the COVID-19 pandemic in North America, and for the better part of the first half of 2020, Robinhood saw its client base skyrocket. Stunningly, Robinhood added more new clients in that timeframe than many of their peers – in fact, arguably adding more clients than most of their competitors. In 2020, Robinhood added 3 million new customers to its ranks in the first four months alone, it grew to 13 million users, and it currently sits at a valuation of more than $20 billion (USD). What has helped Robinhood skyrocket in users over 25x in seven years has been a combination of zero-commission stock trading prices as well as a user experience designed around being mobile-first and appealing to younger investors. Clearly, they are onto something.
That growth, however, was not without missteps. Whether it was the botched roll-out of their “chequing account” or multiple trading platform outages, their hypergrowth in 2020 exposed many of the leaks in the system running at full tilt. There was the tragic news of the suicide of a young investor who, because of the way information was presented on his account page, believed he had lost over $700,000 (USD) from a failed trade; there were security breaches with client accounts getting drained; and there were outages in times of heightened volatility.
This past December, however, there were consecutive regulatory arrows slung at the online brokerage, first in the form of a $65 million (USD) settlement with the Securities and Exchange Commission (SEC) for misleading customers about how Robinhood made money from selling order flow to high-frequency trading firms. Also, from securities regulators in Massachusetts in December, the charge that Robinhood resorted to “aggressive tactics to attract inexperienced investors, its use of gamification strategies to manipulate customers, and its failure to prevent frequent outages and disruptions on its trading platform.”
Given the meteoric success of Robinhood coming into 2020, and certainly throughout the year, it has clearly had an impact on the online brokerage industry as a whole in North America and is helping to shape the trading and user experience here in Canada as well. The emergence of Wealthsimple Trade, and their use of tactics similar to the ones that Robinhood used to fuel their own growth, is perhaps the most striking illustration of the Robinhood effect in Canada. More specifically, however, the issue at hand is the interface that users of online brokerages use in order to access their online investing experience, as well as the features they prioritize. Which brings us back to the article posted in The Globe and Mail at the end of December.
As part of the requisite research for the upcoming edition of the popular online brokerage rankings, Rob Carrick dove into the various Canadian online brokerage mobile apps to test-drive what the investing experience was like with all of them. While the article itself provides a useful overview of where mobile apps from Canadian online brokers shine and where they fall short, it was especially interesting to wander through the comments and reactions.
It was clear that “boomer investors” were the intended audience for this piece, and as such, the comments turned up what seemed to be significant resistance to the notion of trading on a mobile app – or to active trading in general – as well as the much greater pain point of the phone experience, which has nothing to do with the online interface and everything to do with customer service staff actually answering the phones at online brokerages in Canada. And therein lies the conundrum for online investing.
When it comes to designing features and capabilities, there has clearly been a shift away from cramming everything that could be done or said on an online investing interface into a more streamlined interface. That is a significant departure for almost a generation of online investors who’ve been accustomed to lots of menu options, features, and information on a landing page and who’ve generally not had a “mobile” interface to contend with, preferring to use a web-based interface instead.
By comparison, the “mobile first” approach to user interface design is highly constrained by the viewing area and behavioural inputs of a smartphone. To put it plainly, designers for phone interfaces need to decide what the most important functions and features to make available on mobile apps are.
Thus, it seems mobile apps reflect the collision course of the newest innovative design aesthetic – something that younger cohorts of investors and clients favour – and the functionality and user experience of managing wealth as a DIY investor. This is both a challenge and an opportunity for Canadian online brokerages.
From a business standpoint, the balancing act between building a technology and user environment for the future versus creating an environment that meets the needs of stakeholders today is what Canadian brokerages need to wrestle with. Based on the feedback accruing from Twitter and DIY investor forums, it appears that neither group – the newer investors nor the established and seasoned ones – is likely to find the perfect experience in one place.
The current slate of lawsuits and regulatory challenges facing Robinhood is likely going to put user experience for investors – especially in mobile environments – under the microscope. At what point does making investing more approachable, plain-language, and enjoyable cross the line into something bad? At what point is change necessary to enable more people to participate in wealth creation? The regulations have been formed, for better or for worse, based on historical notions of what investing ought to be, and, thus, to a degree, what it should look like.
Robinhood, along with the platforms and interfaces that emulate it, represents drastic change. Rules and established norms represent order. There is clearly a middle ground to be struck, but firms that seek to draw a line of best fit through different user groups, instead of building around those groups, risk being “forgettable.”
The real prize, it seems, is achieving more thoughtful customization at scale or accepting being very good at being niche, even if it does mean being “boring.”
How do you end a relationship with a financial advisor and take control of your own investing? That’s the question on the mind of the investor in this post. Fellow Redditors offer their opinions.
New Year, New Room in Your TFSA
It’s the most wonderful time of the year for anyone with a Tax-Free Savings Account. DIY investors share their enthusiasm for making a lump-sum TFSA contribution as soon as possible each January.
Into the Close
The tragic and shocking events that unfolded in the US in the first few days of 2021 certainly do offer cause for pause. As the fallout from that surreal riot/coup attempt continues to play out, there are still scary headlines about COVID-19 here in Canada. It goes without saying that we could all stand to hear some better news – or at least see a steady stream of cute kittens as a palette cleanser. It’s all about finding the small wins at this point.
2020 is now officially behind us. 2021 will be one of those years that most of us will not have any trouble remembering to write correctly, even in the first few weeks. And, speaking of easy to remember, this month and year are off to a memorable start. Once again cryptocurrency FOMO is sweeping through online investors, there’s a whole host of drama in the US in the lead-up to the inauguration, and RRSP season is now in full swing. Lace up your new sneakers because week one of the new-year news cycle is going to hit the ground running.
Keeping things manageable but exciting heading into week one is on our agenda for this Roundup. The first story of the new year is one that will definitely be worth diving into as we look at the huge volatility in deals action heading into 2021 and what online investors can expect in the weeks leading up to the RRSP contribution deadline. Up next are a series of fun announcements about new features to look forward to from Sparx Trading. We know time is a premium as everyone eases back into the workweek so we’ll keep this edition short and sweet. Happy New Year and enjoy!
Volatility Hits Online Brokerage Deals and Promotions
There’s no doubt that the end of 2020 couldn’t come fast enough. In the real world, it was a year of challenges and tragedies, and while there is no question it was a year that many want to leave behind, anyone looking at the “digital world” of equity markets or cryptocurrency would say there were at least some things that 2020 brought that were not bad.
For Canadian online brokerages, the start of 2021 is an interesting moment as it represents the convergence of several key factors that point to one heck of a year ahead. Already the latest deals and promotions activity forecasts a heavy dose of volatility (if not outright drama).
The first key factor to the start off the new year is that this is the time of year when Canadian discount brokerages kick into overdrive to get on the radar of online investors. The RRSP contribution deadline (March 1st) is behind the ramp-up of efforts to win over investors in the market for online investing accounts. And, DIY investors can expect to see even more advertising, offers, and other activities from asset-hungry online brokerages.
From a deals and promotions perspective, December was the busiest stretch since the start of 2020, signaling a return by online brokers to this popular tactic of attracting new clientele. Interestingly, the official start to 2021 (i.e. January 1st) was a holiday, and, as such, many of the offers that were scheduled to end on December 31st were left posted on the websites of several online brokers. It is unclear if the offers that were scheduled to expire at the end of December will actually be renewed or extended or if other offers will be launched to replace the outgoing ones. Suffice it to say, it will be a busy first week back to amend dates, update websites, or launch new offers. So, stock markets aside, we expect a bit of deal volatility to start the year.
Brokerages with offers that expired at the end of December include National Bank Direct Brokerage, Questrade, RBC Direct Investing, and Virtual Brokers. It would be hard to imagine a scenario in which all of these online brokerages stay on the sidelines for the duration of RRSP season, especially considering that all of the other major bank-owned online brokers have live offers and that, as of mid-December, Qtrade Investor jumped into the promotions pool with a new cash-back offer as well.
The second key factor that is bound to play a role in DIY investor demand for online trading access harkens back to the start of 2019. Similar to what took place two years ago, there’s been a huge run-up in the price of cryptocurrencies to start the year. What’s also on the menu this year (akin to the cannabis push in 2019) are rumblings of a new push into psychedelics. These “hot” new investor stories are compounded by enormous gains from tech companies benefitting from the work-from-home boom. The takeaway: Retail investor sentiment to jump into fast money seems to be driving markets to very frothy levels.
For Canadian online brokerages this a very bullish signal – something that could factor into either the scale or the duration of offers that might yet still come to market. Note that during the height of the market volatility here in mid-2020, many online brokerages pulled their deals altogether, with retail investor interest being sufficiently strong to render offering promotions and incentives unnecessary. We believe, however, that RRSP season is too tempting an opportunity to pass up, in spite of the retail investor sentiment, suggesting more offers to come from online brokerages this January. Also coming: increased urgency to open accounts and the accompanying frustration to get started right away.
Given the run-up in cryptocurrency prices, there is one Canadian online brokerage that stands to benefit disproportionately compared to its peers: Wealthsimple Trade.
Heading into the end of the year, we saw them launch a very short and creatively packaged cash-back promotion. Tearing a page out of the US online brokerage Robinhood’s playbook, Wealthsimple Trade pitched a “free stock” promotion that offered new users the equivalent dollar value to certain popular stocks traded on Wealthsimple Trade. The promotion ran for just about a month, and so it is curious from a timing standpoint as to what could be coming next for this online broker. Nonetheless, they are the only Canadian online brokerage to offer up direct cryptocurrency (Bitcoin and Ethereum) trading – something that would undoubtedly attract retail investor interest at this point. For that reason, there is a serious tailwind behind Wealthsimple Trade until (or if) cryptocurrency prices turn.
With so much happening in just the first week, we’ll be keeping our eyes on the deals activity among Canadian online brokerages throughout the month. There’s almost certainly going to be additional promotions updates coming and, if 2020 has taught us anything, probably a surprise or two before the month is over.
Announcements From SparxTrading.com
One of the fun things that the start of a new year affords us the opportunity to do is to change things up just a bit. Normally, we’d recap the latest developments in this section, but seeing as how we’re coming off a bit of a quiet spell in December (not counting the fact that Robinhood is in the crosshairs of financial regulators in the US), we’re going to take the opportunity to talk about a few big developments taking place at Sparx Trading.
Relaunching of Our Newsletter
Elon Musk won’t be the only one sharing epic launches in 2021. Sparx will also be launching a few big items, although ours will be into cyberspace and way less boring (pun intended).
The first of these will be an epic reboot of the SparxTrading.com newsletter. After being dormant for more than a few years, the newsletter is being completely remade and will feature a handy way for you to stay on top of the latest online brokerage news – and especially the Weekly Roundups. The newsletter is going to be published monthly and will feature quick recaps of the biggest stories across the online investing space over the previous month as well as any important updates taking place on SparxTrading.com (of which there will be more than a few!). Look for the first edition to launch in mid-January, and sign up using the following link:
Even More Perspectives on 2021
We’re thrilled with our latest Look Back / Look Ahead edition. Not only does it give readers a unique window into the world of the Canadian online brokerage industry during the pandemic – from the vantage point of those in charge of leading those brokerages – but it also provides previews on what’s coming up next in 2021.
Online brokerages, however, aren’t the only voices that have a unique and influential impact on how DIY investors navigate online investing. We’re excited to be launching a follow-up to Look Back / Look Ahead that features some of the most influential reviewers in the Canadian online brokerage landscape.
This one we’ve telegraphed already, but we’re getting close to launch and are really excited to be testing out features on the new SparxTrading.com website. A lot has changed about the online brokerage world since we started Sparx Trading, and much has also changed about the team behind the scenes at Sparx. With more hands on deck, and even more excitement about where we can take things, it was only fitting that we tackle something more ambitious. So, fingers crossed, we’re good to launch by the end of January, and users will be able to research online brokerages even faster, look for deals and promotions more intelligently, and track the latest developments at the online brokerages they’re most interested in more conveniently.
That’s a wrap for this first-of-2021 edition of the Weekly Roundup. With cryptocurrency mooning and stocks in rally mode to start the year, there’s a welcome dose of green amidst some of the negative news still confronting us regarding COVID-19. Clearly, there’s a lot to take in for the week so best of luck catching up, and we look forward to a wild month and year ahead. Happy New Year again, and stay healthy and profitable!
*Update: January 8* Cheers to 2021! While 2020 marked a year full of surprise and change – both inside and outside the DIY investing space – we believe it is safe to say we are all ready for a fresh start. To help you ring in the new year and celebrate in (financial) style, Sparx Trading has rounded up the latest deals and promotions from Canadian discount brokerages.
With 2021 officially here, RRSP season is now officially in full swing. Whether it is a personal New Year’s resolution of yours or not, make sure you do not fall victim to procrastination this year. The deadline for contribution to RRSPs to count for the 2020 tax year is March 1st, 2021.
Scroll on to learn more about all the current online brokerage deals and promotions for January – including a new offering and a few that are set to expire at the very start of the month.
As always, we will continue to monitor the deals space and provide updates on new discount brokerage developments, so make sure you check back throughout the month. In the meantime, if you discover any new deals that you believe would be of interest to fellow DIY investors, please let us know in the comments below.
Expired Deals
The stroke of midnight not only signified the beginning of a new year, but it also signified the end of several online brokerage deals. Optimistically, we expect that after the holiday, various online brokerages will be updating their sites and long-standing offers which technically happened to expire might be given a new lease on life. That said, here’s what officially expired as of January 1st, 2021.
National Bank Direct Brokerage’s 100 free online trades
Questrade’s 5 commission-free trades and month-long commission-free trades/advanced data (now back)
RBC Direct Investing’s 25 commission-free trades
Virtual Brokers’ “No Minimum 2020” promotions all expired on December 31st, 2020
During the month of December, we also saw a rather creative cash back offer from Wealthsimple Trade quietly expire.
Looking ahead, three promotions are scheduled to expire on January 5th, 2021: BMO SmartFolio’s cash back promotion, BMO InvestorLine’s refer-a-friend campaign, and BMO InvestorLine’s Fall 2020 cash back campaign. See tables below for full promotion details and eligibility requirements.
Extended Deals
*Update: Jan. 8 – Questrade’s promotion section is now up to date as their entry level five commission-free trade offer makes a comeback. Also back, is the 30 days of unlimited commission-free stock and option trades in the form of commission rebates, plus one free month of an advanced data package, when opening a new account. Both deals will expire on December 31st. See the full terms and conditions in the tables below.*
New Deals
*Update: Jan. 8 – RBC Direct Investing has launched a new cash back promotion that will run until the spring. Set to expire on March 31st, this new deal offers cash back and commission-free trades to investors who open a new account and transfer funds from a non-RBC investment account to their new account. See the table below for full terms and eligibility details.
BMO InvestorLine has also launched a new cash back promotional offer which is set to expire on March 2, 2020. This new promo is a tiered promotion and qualifying deposit levels start at $15,000. Scroll down to see the full promotion terms and conditions.*
Though not technically new, we are adding the Wealthsimple Trade referral promotion to our coverage. DIY investors can receive cash towards their next trade each time a new client signs up for an account using their referral link. For more details, including eligibility requirements, please see the table below.
Open a new RBC Direct Investing account by March 31, 2021 and fund it with at least A) $5,000; B) $25,000; C) $50,000; D) $100,000; E) $250,000; F) $500,000 or G) $1M+ by May 31, 2021 and you may receive a cash back of A) $50; B) $100; C) $200; D) $300; E) $500; F) $1,000 or G) $2,000; plus 10 free trades to be used by August 31, 2021. The fund must be from a non-RBC investment account. Use promo code WCMP2 during account opening and be sure to review the full Terms and Conditions.
A) $5,000 B) $25,000 C) $50,000 D) $100,000 E) $250,000 F) $500,000 G) $1M+
Cash Back: A) $50 B) $100 C) $200 D) $300 E) $500 F) $1,000 G) $2,000 Plus 10 free trades
Scotia iTRADE is offering two choices for new investors who open accounts before March 1, 2021 and fund it with at least A) $5,000; B) $10,000; C) $25,000; D) $50,000; E) $100,000; F) $250,000; G) $500,000 or H) $1M+: Option 1: you can use promo code C21 to receive cash reward of A) $25; B) $50; C) $100; D) $200; E) $400; F) $750; G) $1,000 or H) $1,500; plus a discounted commission of $6.99 per trade until June 30, 2021. Option 2: Use promo code FT21 and you may be eligible for A) 10; B) 20; C) 50; D) 100; E) 200; F) 300; G) 400 or H) 500 free trades to use for 90 days after the account is funded. See terms and conditions for full details.
A) $5,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000 F) $250,000 G) $500,000 H) $1M+
Cash Back: A) $25 B) $50 C) $100 D) $200 E) $400 F) $750 G) $1,000 H) $1,500 or Free Trades: A) 10 B) 20 C) 50 D) 100 E) 200 F) 300 G) 400 H) 500
Fund your new or existing CIBC Investor’s Edge account before March 2, 2021 with at least A) $10,000; B) 25,000; C) $50,000; D) $100,000; E) $500,000 or F) $1M+ and you may be eligible to receive a cash back reward of up to A) $50; B) $100; C) $200; D) $500; E) $1,000 or F) $2,000. To qualify, the fund must be from outside CIBC. No promo code required. See terms and conditions for full details.
A) $10,000 B) 25,000 C) $50,000 D) $100,000 E) $500,000 F) $1M+
Cash Back: A) $50 B) $100 C) $200 D) $500 E) $1,000 F) $2,000
Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $15,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F)$1M+, and you may be eligible to receive a cash back reward of up to A) $150; B) $250; C) $500; D) $800; E) $1,000 or F) $2,000. Use promo code SDCASH2000 when registering to qualify. Be sure to read full terms and conditions.
A) $15,000 B) $50,000 C) $100,000 D) $250,000 E) $500,000 F) $1M+
Cash Back: A) $150 B) $250 C) $500 D) $800 E) $1,000 F) $2,000
Open a new TD Direct Investing account by March 1, 2021 with promo code INVESTNOW and fund it with new assets worth at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000, and you may be eligible to receive a cash back reward of up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. The fund must be deposited to the account by April 30, 2021 and at least one trade is placed by June 30, 2021. In addition, you may also be eligible for another $100 cash reward by setting up a Monthly Contribution Plan (min. $100 per month) with the first contribution occur before April 30, 2021. The maximum reward one could receive is $1,100. See terms and conditions for full details.
A) $15,000 B) $25,000 C) $100,000 D) $250,000 E) $500,000
Cash Back: A) $100 B) $200 C) $300 D) $500 E) $1,000
New clients who open and fund a new Qtrade Investor account before March 01, 2021 with at least A) $25,000; B) 50,000; C) $100,000; D) $500,000; E) $1M or F) $2M+ may be eligible to receive a pre-paid Visa gift card of up to A) $50; B) $100; C) $250; D) $800; E) $1,500 or F) $2,000. Only the first 500 customers are eligible. Please use promo code VISA2K. See terms and conditions for full details.
A) $25,000 B) $50,000 C) $100,000 D) $500,000 E) $1M F) $2M+
Cash Reward: A) $50 B) $100 C) $250 D) $800 E) $1,500 F) $2,000
New accounts opened between Jun 22 and Dec 31, 2020 will be awarded 100 free online trades in one year. This promotion applies to new and existing NBDB clients who use the code “FREE2020” to open new accounts. There’s no minimum funding requirement, however some other restrictions may apply.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully.
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 a new RBC Direct Investing account by December 31, 2020 and fund it with at least $5,000 by March 5, 2021 and you will receive commission rebates for 25 trades that occur within 1 year of account opening. Be sure to use promo code NTBW2 during account opening. You will be charged regular commissions on the trading date, and the rebate will be deposited back into your account after 3-5 business days. If you are an existing customer to RBC DI, the type of the new account being opened must be different from the account types that you current have.
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details.
$25,000
commission-free trades for 1 month + 1 month of advanced data.
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.
A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+
$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back
Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)
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)
You may receive $10 cash incentive for each new client that you refer to Wealthsimple Trade. They must use your unique referral link during account opening and make a trade value of at least $100. The referred friend will also get $10.
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details.
$1,000
$25 cash back (for both referrer and referee)
Cash deposited at the end of the month in which referee’s account funded
If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details.
$5,000
You(referrer): $50; Your Friend(referee): $50
Payout occurs 45 days after minimum 90 day holding period (subject to conditions).
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered.
$152.55
$15,000
Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information.
none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details.
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
Transfer Fee Promo Contact client service for more information (1-800-465-5463).
none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.
$135
$25,000
Confirmed with reps. Contact client service for more information (1-800-567-3343).
none
Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details.
$200
Contact client service for more information
Contact client service for more information (1-888-776-6886)
none
Expired Offers
Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $10,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info.
The minimum commission per equity trade ($1.99) is waived for new accounts from account opening till December 31, 2020. As a result, your commission is just 1¢/share (max $7.99). However, this offer does not apply to Odd Lot orders (i.e. orders with quantity less than 100 shares if price >= $1 or price < $0.10; or less than 500 shares if price in the $0.10 – $0.99 range). Please be reminded that at Virtual Brokers ETFs are always free to buy.
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 200 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions.
Open a new Non-Registered trading account and fund it with at least $100 by December 18, 2020 and you may receive a random cash bonus ranging from $1 to $4,500. The cash bonus amount will be equivalent to the value of one of the fifteen stocks that have been selected by Wealthsimple Trade for this program. Please refer to the Terms and Conditions for more details.
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.
Be one of the first 100 clients to open and fund an account with a minimum of $10,000 at Qtrade Investor using the promo code TRADE695 and you may be eligible for 100 trades at a preferred commission rate of $6.95 for 6 months. See terms and conditions for more details.
Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link.
Open a new SmartFolio account and fund it with at least $1,000 and you could receive 0.5% cash back up to $1,000. Use promo code SFJAN1000 when opening a new account. See terms and conditions for full details. This offer is limited to new SmartFolio clients only, and can be combined with the refer-a-friend promotion.
BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details.
Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth.
Professionals and students in the below fields can benefit from a reduced pricing structure: * Engineering students * Legal, accounting and business students * Healthcare students * Health sciences students * Nursing students Benefits: * $5.95 commission on equities * $0 commission on ETFs * $0 annual administration fee
Accounts holders who are 30 years old or younger are offered 10 free trades each year. After the free transactions, a commission rate of $4.95 per transaction will be applied (which is just half of the regular price).
The phrase that’s been a mantra for many of us in 2020 – aside from “You’re on mute” – has been “Is it over yet?” Finally, it’s a lot closer to being true than at any previous point in the year. Thank goodness. In keeping with the sentiment of a very long year, this end-of-year edition of the Weekly Roundup is itself longer than usual. Unlike 2020, however, it is intentionally long because so many interesting things took place.
Packaging so many big developments into one post was a challenge. So, for this final edition of the Roundup for the year, we offer up an homage to a movie franchise that seems to go on just about as long as 2020 has. This Fast and Furious edition of the Roundup recaps the year one quarter at a time. Keep reading for high-octane stories that powered the Weekly Roundup for the past year, including important feature releases, interesting trends, and the stories that were kind of a big deal. In true Weekly Roundup form, we roll the credits on 2020 with DIY investor chatter from Twitter and the forums.
Buckle up, it’s going to be a wild ride.
Q1 2020: Everything Was Normal Until It Wasn’t
Looking back on the beginning of the year, the start to 2020 in the Canadian online brokerage space seemed pretty “normal” by most accounts.
One theme early in the year was pricing drops. Desjardins Online Brokerage, for example, significantly dropped their commission rates, especially for active investors, to under $1 per trade. Similarly, HSBC also teed up an offer for active investors: zero-commission pricing between April and December 2020. Although these two firms aren’t as well known in the Canadian online brokerage space as other mainstream firms or the big-five bank-owned online brokers, it was clear that commission pricing in 2020 would continue to be under pressure as smaller firms looked to gain market share. These moves were also timed around the start of the year because of the heightened interest in RSP accounts, and, as such, there would be a much larger audience of investors willing to consider these new pricing features. Interestingly, the rest of the Canadian online brokerage industry did not immediately move to lower commission prices. As it turned out, once the tsunami of investor demand for online brokerage accounts took hold, commission prices stayed largely untouched until the latter part of 2020.
Another important theme early in the year (prior to COVID-19 hitting with full force) was the release of online brokerage reviews and rankings. Both The Globe and Mail and Surviscor released their respective rankings of Canada’s online brokers in order to coincide with the time in the calendar when many DIY investors hunt out new online investing accounts and offers.
What stood out about the 2020 edition of The Globe and Mail online brokerage rankings (which happened to be the 21st edition of these rankings) was that a number of firms scored a respectable grade (B or better), but of the top three firms by letter grade, two of them were bank-owned online brokers: TD Direct Investing and Scotia iTrade. The firm that reappeared at the top of these rankings was Qtrade Investor, which earned an A+ rating overall. Ironically, TD Direct Investing suffered from a trading interruption (something that would become a lot more commonplace across the industry in 2020), and Scotia iTrade continued to face challenges responding to clients in a timely fashion over the phone.
In the Surviscor rankings, Qtrade Investor also took top spot, edging out Questrade and TD Direct Investing. Not to be outdone, Questrade earned a DALBAR award for client service, providing additional points for their brand in a year that started off strong in terms of rankings progress.
Of course, the major story during the first quarter of 2020 was COVID-19, and specifically how it roiled markets and caused a massive shock to trading systems, online brokerages, and DIY investors. For some, it was catastrophic, but to others, the opportunity of a lifetime. It was this latter group that won the day, however, as new investors jumped at the chance to invest in household-name stocks at incredible prices. Further, the “Robinhood effect” was cited as another reason the volatility seemed to skyrocket. The US online brokerage had moved to a largely commission-free model, and, as such, investors could “scalp” trade – making small and frequent trades – with no real downside (in terms of commission pricing). It turned out, however, that most online brokerage systems were not equipped to handle the surge in interest in trading combined with market volatility.
Some weird things happened. Among them, Wealthsimple Trade having to effectively halt new clients from being able to trade on their platform.
@wstrade As a new user, why would you not include this message when I was signing up and depositing money? I now can’t make trades and have not even been provided with a timeline of when I can expext to be off the waitlist #disappointingpic.twitter.com/tO2Y52wmjF
Major online brokerages also suffered trading platform downtime, slammed telephone reps, and the biggest surge in online brokerage account opening since the bitcoin craze in 2018. Oh, and they had to contend with all of this while being transitioned to a work-from-home model.
Also strange, people deciding to hoard toilet paper.
Q2 2020: Outages & Outrage
The start of the second quarter picked up right where the first ended, as things went from weird to certifiably insane. Volatility and trading volumes managed to take down trading systems at multiple Canadian bank-owned online brokerages, but that would not even be the weirdest thing to take place in April. As it turns out, prices for commodities, like barrels of oil, could not only fall to zero but also go negative.
Unfortunately for traders – and especially for Interactive Brokers clients – the oil contract price going negative wound up impairing (if not wiping out) a significant number of traders, and that was because of a programming glitch on Interactive Brokers’ platform that didn’t account for prices of contracts being able to turn negative. All told, Interactive Brokers ended up taking a $90 million loss because of the exceptionally rare move to reimburse traders caught offside by this issue. Of course, while embarrassing for Interactive Brokers, these were truly unusual times, and there were other traders who didn’t see it coming.
Nonetheless, Interactive Brokers also had a huge silver lining after the oil futures contract fiasco: They experienced record-breaking new-account growth. As the canary in the coal mine, Interactive Brokers telegraphed exceptionally strong account openings (+22% year over year) and revenue gains from the sheer volume of activity taking place. In fact, there were more accounts opened at Interactive Brokers in April 2020 than in the last six months of 2019 combined.
Against the backdrop of market volatility, another online brokerage ranking was published, this time from J.D. Power. The Self-Directed Investor Satisfaction Study was revealing in that even before many of the issues that came to light during the heavy volatility in the markets, the Canadian online brokerage industry was starting to slip in terms of investor satisfaction. The report card showed that online brokerages fared worse in 2020 than they did in 2019 when it came to overall satisfaction.
Questrade managed to take top spot in the rankings for 2020, an accolade that is the result of a long journey of constant improvement. Conversely, the bottom four online brokerages in Canada, according to J.D. Power, were from the big five: RBC Direct Investing, TD Direct Investing, CIBC Investor’s Edge, and Scotia iTrade, respectively, were the firms that scored the lowest on the 2020 edition of this ranking. One telling stat was that website stability and accessibility were areas where online investors felt underserved, with 46% of those polled experiencing a problem with their provider’s website.
One of the best, smartest, impromptu speeches I have ever heard. Amazing leadership. pic.twitter.com/SHiPBdVDvC
Finally, the major development in the second quarter of 2020 (outside of COVID-19) was the death of George Floyd and the igniting of social justice movements in North America (and across the world) to a point not seen since the US Civil Rights movement. Though the stock markets were largely insulated from the headline risk, major names in the public markets (like Nike) took very public stands on the death of George Floyd and the Black Lives Matter movement. One potentially coincidental shift that we noted in the websites of two online brokerages at this time was the use of more inclusive and diverse imagery. What a DIY investor was “supposed to look like” changed in terms of the imagery used on the websites of Interactive Brokers and Virtual Brokers. Other online brokerages in Canada had already made the shift to more inclusive imagery, so it was nice to see these online brokers take a step in the right direction when it comes to representation.
Another important note on Virtual Brokers emerged during this time, which was that the parent company, CI Financial, had opted to consolidate the “Virtual Brokers” name under CI Direct Investing along with another key name in the digital investing space: WealthBar. Although no definitive timetable was published on this move, it means that a long-standing name in the online brokerage space will disappear, and DIY investors will have to learn another new name. To make matters even more challenging, the new online brokerage that formed from the acquisition of Jitneytrade by Canaccord is named CG Direct. These two names are bound to confuse DIY investors even more than the current challenge of sorting out Qtrade Investor and Questrade.
Q3 2020: Sun and Shade
With the nicer weather and relative calm in stock markets, it seemed like an opportune moment for several online brokerages to make big announcements and feature enhancements/changes. And there were a few.
Starting in June, TD Direct Investing announced updates to its mobile app that focused on enhancements to investor education. Interestingly, as it came to be seen later in the year, this move toward bolstering investor education was both a timely one, given the number of new investors coming into the stock market, and a well-calculated one, supporting the big reveal that would come in Q4. The trend of improvements to mobile trading experiences was something that surfaced several times in the year, notably with RBC Direct Investing as well as Virtual Brokers.
One of the biggest announcements to cross the tape was that Wealthsimple Trade would be launching cryptocurrency trading in Canada. Offering trading in both Bitcoin and Ethereum, this move by the “zero-commission” online broker in Canada was yet another step to appeal to a younger, more tech-savvy audience who wanted both an easier way to access these digital currency instruments and a more user-friendly way. This pilot program will ultimately help to inform whether cryptocurrency trading can be properly regulated by financial authorities in Canada. In 2020, Wealthsimple Trade continued to lean into its identity as a “Robinhood Canada,” given the success of the US online brokerage in winning over new investors to its platform.
One big feature roll-out that didn’t quite go as planned was from CIBC Investor’s Edge. Unfortunately, the feature upgrade’s first attempt resulted in trading interruptions that, in turn, prompted the online broker to offer commission-free trades to those who were impacted by the outage. Eventually, however, a new online trading experience was rolled out – in part – and set the stage for further improvements to the user experience.
After a very quiet stretch, signs of life in the deals and promotions section started to appear. National Bank Direct Brokerage launched a sizable commission-free trade offer, and, interestingly, Wealthsimple Trade launched a contest with a draw for $5,000 in cash. What made the latter offer stand out is that it was an early signal that despite offering zero-commission trades, Wealthsimple Trade also had to undertake some further effort to entice new clients to their platform (something that showed up again in Q4).
Q4 2020: A Few Good Mends
It’s hard to believe that the fourth quarter was actually just one quarter, given how much happened. The resurgence of COVID-19 via the “second wave,” the huge rally in the stock market to set new highs, and the US federal election all would have been massive stories on their own but, combined, they made it nearly impossible to keep from watching the news.
Despite all of the negative headlines, what did emerge for online brokerages and DIY investors was an interesting convergence of events.
While the first portion of the year showed unprecedented strength of interest by online investors to open up accounts and trade, by the time the fourth quarter rolled around, things had levelled off somewhat. Nevertheless, Canadian online brokerages, much like their US counterparts, were seeing elevated trading activity and, unlike their peers in the US, were generating significant revenue as a result. The fourth quarter in the year is also the time when online brokers in Canada typically start their ramp-up to campaigns for RSP season. What resulted from these events taking place simultaneously was that the deals and promotions activity in November just exploded. Offers came to market from all major online bank-owned brokerages as well as most other Canadian online brokers in one way or another. Even Wealthsimple Trade managed to jump into the deals and promotions fray, once again taking their cues from Robinhood and launching a promotion to give away cash in an amount equivalent to a particular popular stock.
Deals were just one part of what the fourth quarter of 2020 had to offer. Also on deck for the end of the year was a huge announcement from TD Direct Investing, which launched their new commission-free ETF trading platform, GoalAssist. While the platform only allows commission-free trading for TD-branded ETFs, it is a huge step in moving the needle forward on commission-free trading for Canadian DIY investors. Already ETFs are free to buy (at Questrade and Virtual Brokers) or free to buy and sell (all ETFs at National Bank Direct Brokerage and a limited selection at Scotia iTrade and Qtrade Investor). So, for TD Direct Investing, one of the biggest names in Canadian DIY investing circles, to launch this product (and in a mobile-only format to boot) means that they are directly going after the commission-free trading offering by Wealthsimple Trade.
Ironically, it appears that in the fourth quarter, Wealthsimple Trade was already at work to challenge the traditional Canadian online brokerage offering of a “desktop experience.” Prior to this year, Wealthsimple Trade had been available in mobile-app format only – something that ultimately ended getting Wealthsimple Trade disqualified from being included in some of the Surviscor online brokerage rankings.
As of the fourth quarter, however, Wealthsimple Trade has launched a desktop version of their web platform that is being tested by users. Given that fewer people are actually going into an office or are on the go to and from an office, more and more users are spending time on their laptops or desktop computers. So, this highly sought-after feature is another shot across the bow aimed at the online brokerage industry indicating that Wealthsimple Trade is getting up to speed on the features that online investors want.
New features didn’t stop there for Canadian online brokerages, however. BMO InvestorLine rolled out a 2.0 version of their online trading experience, which significantly streamlines their existing web interface, though it is still being updated in terms of features. At first blush, it looks like the trend among online brokerages has shifted away from completing all features before launch, moving instead to an “agile” model of shipping features out and enhancing/optimizing over the product lifecycle. Another big announcement from an online broker regarding features was from National Bank Direct Brokerage, which officially rolled out OptionsPlay as part of their offering to clients. This platform is intended to assist individual investors in manoeuvring through trading options.
Finally, one more noteworthy milestone took place in the quarter, as the Sparx team launched the fourth edition of the Look Back/Look Ahead series. This publication featured in-depth coverage of several of Canada’s most popular online brokerages, which offered a unique glimpse at how 2020 unfolded for them as well as what features and trends they’re looking to in 2021. In addition to the online brokerage space as a whole, the magazine also offered a sneak peek at the new SparxTrading.com website coming in 2021.
Even summarizing it a quarter at a time, this year had lots of other stories that we didn’t get a chance to highlight in the Roundups as well as in this ultimate year-end review of stories that shaped 2020 in the Canadian (and US) online brokerage industry.
2020 being what it is, there’s still room for some kind of unplanned surprise that could impact investors – whether it’s a new deal or feature launch – however, the good news is that with just a few more days until the official end of the year, online brokerage employees are going to be in holiday mode, too. As such, we don’t anticipate more feature releases going live just yet.
So, on that note, we’ll be doing something different and signing off for the Weekly Roundup for 2020 for the final stretch of December. We will be rebooting in early January, with a few other surprises to mention right out of the gate, as well as more exclusive content. Unless, of course, 2020 drops a story too big not to cover in the online brokerage space.
In this post, one investor asks for recommendations of stable, secure American companies to invest in for the next 10 to 15 years. The advice pours in, covering ETFs, the couch potato strategy, Canadian versus American stocks – and why you should avoid taking advice about specific stocks from random people on the internet.
Live and Learn
An investor who knows very little about their own investments asks about the best way to learn about the topic. Redditors share their favourite books, websites, courses, podcasts, and more, along with their personal financial journeys.
Into the Close
That’s it for the final Roundup for 2020. With vaccines now in place and hope on the horizon, there is lots to look forward to in the coming months. The next few weeks will be the most challenging; however, to pull a (final) line from the Fast and Furious franchise, “We do what we do best, we improvise.”
Stay safe, healthy, and connected, and see you again in 2021.
Take a deep breath. Believe it or not, December is here, and with it, news of several COVID-19 vaccines, stock markets making record highs, and hope on the horizon. Certainly not a coincidence. Another non-coincidence at this time of year is the appearance of special treats and the idea of wrapping things up with a bow.
In this special edition of the Roundup, we turn once again to the topic of deals and promotions, with a regularly scheduled check-in of the deals landscape to kick off the new month. From there, the big announcement: Sparx Trading’s exclusive Look Back Look Ahead series for 2020-2021 is now live! We’ve got a great overview of this unique series that features Canadian online brokers giving their perspective on the past year as well as on what’s coming in 2021. And, as always, we’ve got a full helping of DIY investor comments from Twitter and the DIY investor forums.
De(al)cember Update
The countdown to the end of the year has been going on for some time, but now that December’s here, the finish line to 2020 is in sight.
Despite the gloomy weather and even gloomier forecasts for COVID-19, the SparxTrading.com online brokerage deals and promotions section offers some brighter news. As is customary at the start of each month, we take stock (pun intended) of the deals and promotions landscape among Canadian online brokerages. The good news: this year is as strong as ever in terms of promotional activity among Canadian brokerages.
Although no new deals launched at the beginning of December, a very competitive offer from National Bank Direct Brokerage did get extended for another month. The 100 commission-free trade offer by NBDB is one of the most competitive offers for DIY investors interested in commission-free trades, and with zero deposit requirements, it also has the lowest hurdle.
Last month was a watershed moment for deals and promotions activity among Canada’s online brokerages. After being mostly dormant since the end of RSP season last year, almost all online brokerages decided to launch a cash-back or commission-free trade offer.
Interestingly, there are still a few brokerages currently not on the deals and promotions list, something we anticipate changing either this month or early next month. Firms we expect to see stepping into the promotional space soon are Qtrade Investor, HSBC InvestDirect, and Virtual Brokers, given the fact that other brokerages are already offering something.
Finally, another deal we’re watching this month is Wealthsimple Trade’s “free stock” offer, which is set to expire on December 18th. It is an unusual time for a promotion to end, but it is encouraging to note that the deal is happening at all, since offering zero-commission trading is a significant draw on its own.
With all of these offers currently in play, this is likely an ideal window for online investors interested in an investing account to maximize the selection of promotions.
So, while the weather outside is frightful, this might be the most wonderful time of the year for getting a little extra boost for opening an online brokerage account.
Sparx Trading’s Online Brokerage Look Back Look Ahead Is Live!
More countdown-related content continues to emerge this month, this time from yours truly at Sparx Trading.
Our highly anticipated fourth edition of the Look Back Look Ahead series is here, and – to borrow from Robinhood’s Market Snacks podcast (fair game to borrow from Robinhood, amirite?) – this is the best one yet.
This edition features in-depth submissions from six Canadian online brokerages that offer a fascinating set of perspectives on how 2020 unfolded and preview what they have in store for 2021. In addition, we’ve given our own perspectives on the online brokerages that did not provide a submission and outlined what we thought were noteworthy developments during the year. Finally, we’ve provided a detailed preview of what the next version of SparxTrading.com has in store for DIY investors.
The series is now in its fourth iteration, and it’s interesting to see how things have evolved since we first launched it in 2014. One of the readily apparent changes is that in addition to a blog format, we also have a magazine edition, which we rolled out starting in 2018. Even though it takes considerable work to pull together a magazine format, we thought it was an opportunity to create something great-looking and engaging, which offered a different way to present stories about an exceptionally fascinating year.
One thing that has remained consistent about contributions to the Look Back Look Ahead series has been the unique perspective that only the voices of the online brokerages’ senior leaders can provide. It remains a rare opportunity to hear from senior stakeholders on how the year unfolded as well as their vision for the year ahead.
Another great feature of this year’s issue is that the Q&A format provides an interesting perspective on several points relevant to DIY investors, including:
What beginning investors can expect
What active investors can expect
Which online investing trends they think will matter to DIY investors
What user experience means to their firm
What sets their firm apart from their peers
As referenced in the beginning of the blog version of this series, there were a number of themes that emerged from the responses and analysis of the online brokerage landscape from 2020. Three big themes that stood out were the need for agility, the importance of communication, and the rising prominence of user experience.
Based on a macro view of what has transpired this year, the consensus is that COVID-19 helped accelerate the future into the present. For the world of online investing, it seems that DIY investors will be looking beyond just the headline price of commissions to the full experience of what it means to be “self-directed.” Case in point: Despite DIY investors having to pay commissions for trades, the industry as a whole saw record-breaking account openings and trading volumes during the height of the market volatility, from March through the summer.
What has become clear, now even more than in previous years, is the need for transparent and ongoing communication in order to create strong relationships with clients. With the heightened uncertainty, communication channels at online brokerages have been tested, and going forward, the hallmark of an online brokerage who “gets it” will be one that excels at communicating with clients proactively. Further, DIY investors will be looking for brokerages to harden the systems that matter in a crisis or in times of extreme volatility. Patience for service interruptions or delays has worn thin, and demonstrating “uptime” is also going to become a marker of quality.
On a lighter note, observant viewers will notice that our cover art tried to capture the work-from-home look, something that embodies the spirit of 2020 for many of us. There are some special details we tucked into the image that we’re sure DIY investors can appreciate. Sticking to the aesthetic for a moment, the soon-to-be-launched new website and content will feature our bull and bear prominently. Unless it’s sensationalistic, a lot of financial content is difficult to engage with, so we hope to continue to provide a more engaging way in which to consume DIY-investor-focused content.
Personally, I found this issue to be an enriching read, and I am excited by the prospect of DIY investors discovering something new and interesting about the Canadian online brokerage landscape as we move through the end of 2020 (thankfully) and into a new chapter in 2021.
To read the Look Back Look Ahead series, click here.
A Redditor in Ontario with a baby arriving soon asks in this post how to establish an RESP and get the full benefit of it – and also wonders if they need to be actively involved after the initial setup.
Exasperated by Exorbitant Expenses
In this post, one frustrated investor wants to know why Canadian brokerages have such high fees compared to their American counterparts. Redditors weigh in with their best theories.
Into the Close
That’s a wrap on this early-December edition of the Roundup. Markets continue to price in optimism around the corner, which should continue to lift spirits for now. There have been some significant comeback stories this past week – including Blackberry – and even more excitement as IPOs like Airbnb and DoorDash prepare their public debuts. One thing’s for sure, there’s lots to keep DIY investors glued to their screens in what was supposed to be a quieter time of year.
After making it through 2020, there are few things that would count as truly surprising anymore. Between COVID-19, the wild US presidential election and everything else that has unfolded this past year, 2021 can’t come fast enough for many of us.
For Canadian DIY investors and Canada’s online brokerages, despite a wild year of volatility, volume and very rapid change the macro picture appeared to be a positive one. Record account opening, revenues from trading and after a sharp selloff, a strong rebound in stock markets have favourably positioned Canadian online brokerages heading into the new year.
In the latest edition of Sparx Trading’s exclusive Look Back / Look Ahead series, Canada’s online brokerages provide a unique snapshot of the past year at their respective firms, as well as provide an enticing view to 2021 – yet one more reason the new year can’t come quickly enough.
This edition is one of the most fascinating yet. If for no other reason, hearing about what 2020 was like at Canada’s online brokerages during such historic times is worth tuning into. There is, however, so much more worth finding out about.
Also included in this issue is a fascinating preview of what Canada’s online brokerages have in store for DIY investors in 2021. Further, our unique Q&A feature zeros in on what beginner and active investors can expect from each online broker as well as what sets each online brokerage apart from their peers.
There is lots more content that DIY investors can dig into, so be sure to check out the featured brokerages that provided detailed submissions of the year that was and what’s coming up.
In the meantime, we’ve put together three key themes that emerged from this year’s series that provide some food for thought when assessing the Canadian online brokerage space.
Theme 1: Agility
COVID-19 forced massive change on everyone, online brokerages included. Withstanding a pandemic-level impact was only one of the major challenges Canada’s online brokerages had to move quickly to address, however.
Compounding the challenge was the sheer volume of interest from DIY investors to open up and fund their online investing accounts. Ultimately it came down to agility, technical capability and operational resilience.
Online brokerages who already had invested in online account sign ups were able to more readily handle the challenges that accompanied the immense interest in opening accounts than those who had to route investors through paper-driven sign up processes.
The key takeaway for DIY investors is that COVID-19 showed which online brokerages were more ‘change ready’ and which features matter during times of heightened market volatility.
Theme 2: Communication
With so much of our lives now digitized, instant access to what’s going on is now the norm. A great example is Uber Eats – where you can find out in real time where your food order is.
In that world, DIY investors will be hungry for more information from their online brokerages. It might be price, it might be service experience, it might be platforms or even promotions. One thing that stands out about online brokerages in 2020 is that those who prioritized connecting and communicating with investors are now better positioned to have their story and message heard.
With so many online brokerages available to service DIY investors in Canada, those that are able to create special content or deliver engaging investor education experiences or simply have a solid, regular communications strategy in place can ensure DIY investors have something worth tuning into.
Theme 3: User Experience
This was one of the more fascinating trends to dive into in this issue of the Look Back Look Ahead feature.
For DIY investors, it was reassuring to see online brokerages define user experience in terms of customer experience. That said, one of the challenges created by 2020 is that there are lots of novice investors who have entered the markets on a whim and for whom the markets only appear to be making new highs.
Providing this new crop of investors with the right tools and resources to navigate the journey of online investing will be important. Further, the balancing act continues between older clients who may not be as tech savvy or inclined towards mobile features, and younger investors who are demanding different aesthetics to websites and apps. Interestingly, there will be several notable upgrades in platforms and online investing experiences coming throughout 2021 so we’ll be curious how different online brokerages tackle the challenges in the new year.
Click the links below to learn about what each Canadian online brokerage had to say about 2020 and what to look forward to in 2021.
*Update: December 18* After what has simultaneously felt like the fastest yet slowest year ever, we have finally made it to December! In true holiday fashion, Sparx Trading is here to spread old-fashioned cheer and merry updates as we take a (cautious and socially distanced) step into the final month of 2020.
Scroll on to learn more about all the current online brokerage deals and promotions for December. We’re keeping a close eye on the deals space, so don’t forget to check back throughout the month for more jolly updates. And if you find an offer that would be great for other DIY investors to know about, please let us know in the comments.
Expired Deals
*Update: Dec. 18 – Wealthsimple Trade’s trade free stock promotion ends on today, December 18th, 2020. Be sure to open an eligible account by 11:59:59 PM EST today to qualify. Full details can be found in the table below.*
Extended Deals
National Bank Direct Brokerage’s 100 free online trades promotion has been extended! The new deadline for this huge free trade offer expires December 31st, 2020.
New Deals
*Update: Dec. 18 – Qtrade Investor has just launched a promotion for new clients who open an account by March 1st, 2021. Clients who open a new account are being offered two rewards to choose from: a cash reward or preferred pricing trades. See the table below for more details on the promotional rewards, as well as full terms and conditions.*
Scotia iTRADE is offering two choices for new investors who open accounts before March 1, 2021 and fund it with at least A) $5,000; B) $10,000; C) $25,000; D) $50,000; E) $100,000; F) $250,000; G) $500,000 or H) $1M+: Option 1: you can use promo code C21 to receive cash reward of A) $25; B) $50; C) $100; D) $200; E) $400; F) $750; G) $1,000 or H) $1,500; plus a discounted commission of $6.99 per trade until June 30, 2021. Option 2: Use promo code FT21 and you may be eligible for A) 10; B) 20; C) 50; D) 100; E) 200; F) 300; G) 400 or H) 500 free trades to use for 90 days after the account is funded.
Fund your new or existing CIBC Investor’s Edge account before Mar 2, 2021 with at least A) $10,000; B) 25,000; C) $50,000; D) $100,000; E) $500,000 or F) $1M+ and you may be eligible to receive a cash back reward of up to A) $50; B) $100; C) $200; D) $500; E) $1,000 or F) $2,000. To qualify, the fund must be from outside CIBC. No promo code required.
Open a new TD Direct Investing account by Mar 1, 2021 with promo code INVESTNOW and fund it with new assets worth at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000, and you may be eligible to receive a cash back reward of up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. The fund must be deposited to the account by April 30, 2021 and at least one trade is placed by June 30, 2021. In addition, you may also be eligible for another $100 cash reward by setting up a Monthly Contribution Plan (min. $100 per month) with the first contribution occur before April 30, 2021. The maximum reward one could receive is $1,100.
Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $250,000; D) $500,000 or E) $1M+, and you may be eligible to receive a cash back reward of up to A) $100; B) $250; C) $450; D) $950 or E) $2,000. Use promo code SDCASH2000 when registering to qualify. Be sure to read full terms and conditions.
New clients who open new Qtrade Investor accounts before Mar 01, 2021 have 2 options: (1) Fund your new Qtrade Investor account with at least A) $25,000; B) 50,000; C) $100,000; D) $500,000; E) $1M or F) $2M+ and you may be eligible to receive a pre-paid Visa gift card of up to A) $50; B) $100; C) $250; D) $800; E) $1,500 or F) $2,000. Only first 500 customers are eligible. Please use promo code VISA2K. (2) The first 100 clients who use promo code TRADE695 may be eligible for 100 trades at a preferred commission rate of $6.95 for 6 months. Minimum deposit $10,000 is required.
New accounts opened between Jun 22 and Dec 31, 2020 will be awarded 100 free online trades in one year. This promotion applies to new and existing NBDB clients who use the code “FREE2020” to open new accounts. There’s no minimum funding requirement, however some other restrictions may apply.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully.
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 a new RBC Direct Investing account by December 31, 2020 and fund it with at least $5,000 by March 5, 2021 and you will receive commission rebates for 25 trades that occur within 1 year of account opening. Be sure to use promo code NTBW2 during account opening. You will be charged regular commissions on the trading date, and the rebate will be deposited back into your account after 3-5 business days. If you are an existing customer to RBC DI, the type of the new account being opened must be different from the account types that you current have.
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details.
$25,000
commission-free trades for 1 month + 1 month of advanced data.
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.
A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+
$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back
Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)
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 Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details.
$1,000
$25 cash back (for both referrer and referee)
Cash deposited at the end of the month in which referee’s account funded
If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details.
$5,000
You(referrer): $50; Your Friend(referee): $50
Payout occurs 45 days after minimum 90 day holding period (subject to conditions).
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered.
$152.55
$15,000
Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information.
none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details.
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
Transfer Fee Promo Contact client service for more information (1-800-465-5463).
none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.
$135
$25,000
Confirmed with reps. Contact client service for more information (1-800-567-3343).
none
Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details.
$200
Contact client service for more information
Contact client service for more information (1-888-776-6886)
none
Expired Offers
Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $10,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info.
The minimum commission per equity trade ($1.99) is waived for new accounts from account opening till December 31, 2020. As a result, your commission is just 1¢/share (max $7.99). However, this offer does not apply to Odd Lot orders (i.e. orders with quantity less than 100 shares if price >= $1 or price < $0.10; or less than 500 shares if price in the $0.10 – $0.99 range). Please be reminded that at Virtual Brokers ETFs are always free to buy.
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 200 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions.
Open a new Non-Registered trading account and fund it with at least $100 by December 18, 2020 and you may receive a random cash bonus ranging from $1 to $4,500. The cash bonus amount will be equivalent to the value of one of the fifteen stocks that have been selected by Wealthsimple Trade for this program. Please refer to the Terms and Conditions for more details.
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 and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link.
Open a new SmartFolio account and fund it with at least $1,000 and you could receive 0.5% cash back up to $1,000. Use promo code SFNOV1000 when opening a new account. See terms and conditions for full details. This offer is limited to new SmartFolio clients only, and can be combined with the refer-a-friend promotion.
BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details.
Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth.
Professionals and students in the below fields can benefit from a reduced pricing structure: * Engineering students * Legal, accounting and business students * Healthcare students * Health sciences students * Nursing students Benefits: * $5.95 commission on equities * $0 commission on ETFs * $0 annual administration fee
Accounts holders who are 30 years old or younger are offered 10 free trades each year. After the free transactions, a commission rate of $4.95 per transaction will be applied (which is just half of the regular price).
Hard to believe but the end of 2020 is almost here. Then again, a lot of what’s happening is surreal. With stock markets continuing to rise alongside COVID numbers, and increasingly tightening restrictions here in Canada to try to wrestle the virus into control, it’s hard to believe there is good news to be found. Fortunately, hope springs eternal, and while there are definitely some challenging times ahead, we’re glad to be able to share a slate of stories of things to look forward to from online brokers.
In this month-end edition of the Roundup, we take stock of the activities that stood out in November – including the influx of deals and promotions for DIY investors. Staying on theme, we also dive into some important developments and exciting publications set to launch at SparxTrading.com that will shine a spotlight on the challenging year that was and how online brokerages overcame multiple challenges to deliver a record-breaking year. Being the month end, there’s a special addition, which includes coverage of some interesting things that crossed our radar that we didn’t get a chance to dive into more deeply this month. As always, we’ve got chatter and banter from DIY investors in the forums and from Twitter.
Days of Our Deals: Online Brokerages Lean Into Deals in November
It’s fitting that on Cyber Monday we get to talk about deals and promotions for DIY investors.
November has been filled with a constant stream of deals updates, as almost all Canadian discount brokerages either stepped back into the deals pool or dove in for the first time.
With nine advertised deals now in the commission-free trade or cash-back category (10 if you include the latest deal from Wealthsimple Trade), online investors are able to pick and choose which deal best suits their needs.
For anyone keeping score at home, within the first week we saw offers from BMO InvestorLine, BMO SmartFolio, CIBC Investor’s Edge, and TD Direct Investing come to market. Not far behind them came offers from Scotia iTrade and RBC Direct Investing. Finally, at the end of the month, we saw Wealthsimple Trade jump into the deals and promotions pool with a clever cash-back promotion.
At the time of publication of this Roundup, it appears that there is one promotion set to expire – the commission-free trade offer from National Bank Direct Brokerage – however, that might change heading into a new week. Not to worry, though, as there are numerous offers that are scheduled to be around until well into RRSP season, which ends at the beginning of March 2021.
Even though we’ve said this before, it is worth stating again. This massive influx of deals activity was a far cry from the promotional landscape we saw midway through 2020 when almost all Canadian discount brokerages removed their “top-tier” promotional offers.
The pullback in offering deals was largely the result of a tsunami of investors trying to get into the markets to take advantage of the COVID-induced volatility, and though COVID is still around, it appears that substantial market swings are not. The pace of investors opening up new accounts has also slowed down compared to the spring of 2020, which, according to some industry insiders, is a welcome reprieve.
As for the Canadian discount brokerages currently on the deals and promotions sidelines, we suspect they won’t be there for too much longer. The space is far too competitive at this point not to be actively courting DIY investors with an offer. The question is more when than if the brokerages currently not offering either a commission-free trade or cash-back promotion will step forward.
One theme that is clear this year is that there appears to be a greater degree of targeting of specific investor segments going on than in years past. As is usually the case, big assets are what all online brokerages aspire to attract. However, outside of that group, there is a definite interest in the entry-point investor.
With the big deal days of Black Friday and Cyber Monday in the books, it appears that the stretch between here and Christmas could bring with it a few bonus gifts for DIY investors.
Lots to Still Look Forward To in 2020
It’s been a storied year for everyone. For DIY investors, there have been once-in-a-generation opportunities to get into stocks that were panic-sold as well as to jump into stocks that have surged as a result of the shift to working from home.
All Canadian online brokerages were tested in multiple ways during and because of COVID, from having to be able to process the flood of applications for new accounts, to shifting operations and personnel to a remote-work model, to dealing with the ongoing challenges of the marketplace that demanded more features at lower commission prices.
Though there were certainly hiccups along the way, in hindsight, the Canadian online brokerage industry managed to weather an exceptionally challenging storm.
For that reason (and the fact that it is 2020), we thought it would be fascinating to hear from the leaders of Canadian online brokerages themselves, so we invited them to participate in our soon-to-be-released Look Back/Look Ahead series.
In this upcoming edition, readers will learn a lot about what 2020 has meant for various Canadian online brokerages, including the challenges they have faced (and overcome) as well as the opportunities for innovation that presented themselves during the year.
In addition to talking about the past, one of the most interesting features of this year’s Look Back/Look Ahead series is what online brokerages have shared about what they’re working on and what online investors can expect from them in the coming year. Stay tuned for our official launch announcement on Sparx’s social media channels.
And, speaking of fun things to look forward to, we’re still working away at the launch of a new Sparx Trading digital experience.
Our new website will feature streamlined organization and powerful new tools to help online investors looking for online brokerages. Exclusive sneak peeks will be shared on the Sparx Trading Twitter feed as well as featured in the Weekly Roundup.
Lightning Roundup: More Interesting Developments
With so much happening this past month, it’s tough to cover all of the interesting developments in as much detail as we’d like to. So, here’s a quick rundown of things that crossed our radar.
Lots of Outages, Lots of Outrage
Twitter is generally a place where discussions can get heated, and people don’t hold back on what they’re thinking or feeling. In fact, it’s arguably THE place online to vent/share just that. For businesses (like online brokerages), however, in addition to being a place where clients share their experiences, there’s also an expectation of channels like Twitter to serve as a customer service channel.
November has been an abysmal month for many DIY investors across multiple Canadian online brokerages because of platform outages and downtime that occurred during trading hours at big bank-owned online brokerages and smaller operations alike. Many active investors found themselves ranting about outages as well as scary wait times to speak to customer service representatives.
For all of the good, the bad, and the (much) ugly, check out the tweets of the week from November in each of our Roundups.
Financial Literacy Month
November is Financial Literacy Month in Canada, and this past month marked the 10th anniversary of this initiative, which is aimed at helping Canadians be better informed about their personal finances.
There was a steady stream of content as well as activities online for individuals wanting to deepen their understanding of important financial topics. Interestingly, there were a lot of credit unions, independent personal financial bloggers, federal agencies or entities, and provincial securities regulators who were visible on social media.
When it came to investing – in particular DIY investing – there wasn’t much in the way of dedicated content from Canadian online brokerages, despite the wealth of information they have on hand or have historically provided about the way in which online investing works. It seems like an interesting opportunity to have more of a voice on an important issue that would enhance the general public’s understanding of what online brokerages are and how they function.
We believe financial independence is not a privilege, but a right.
This November, in support of Financial Literacy Month in Canada, we will be sharing some of our favourite tips to help you better manage your finances. (1/2) pic.twitter.com/ci9G2Jgg7a
One telling gap in the current state of awareness and communication around financial services options for investors is highlighted in the introductory stock market video produced by the Nova Scotia Securities Commission.
This video series does a great job explaining the basics of stocks, but when it comes to describing the options that individual investors may encounter, the fact that “robo-advisors” don’t really get mentioned shows there are things consumers encounter in the world of investing online that don’t quite match up to what is being explained in this video. Granted, the video focuses on stocks (rather than ETFs), but given the popularity of these instruments and that they pull investors into trading online, it might be a great follow-up video to provide for investors.
Despite the wealth of information (pun intended) on personal finance that has been shared during Financial Literacy Month, there are still lots of opportunities for either online brokerages or other members of the online investing ecosystem to step forward with more investor-friendly content.
From the Forums
Time Is Not on His Side
What’s the safest and most practical way to start saving for retirement – at age 59? In this post, a Redditor asks for advice on behalf of their father, who is ready to start investing $2,000 per month.
Haters Gonna Hate
A Redditor asks in this post why the media seems to have a hate-on for TFSAs. A long and lively discussion ensues, debating whether TFSAs are good for everyone or just for the rich.
If you’ve managed to survive the gauntlet of Black Friday and Cyber Monday advertisements and email promotions, congratulations! With the holidays now less than a month away, investors will have more than just visions of sugarplums dancing in their heads – tax-loss selling deadlines are now looming, and there are bound to be some stocks that investors would love to leave behind as much as they would 2020. Of course, for the bargain hunters, there are also opportunities to peruse the deep-discount bin. Maybe there are a few more deals to be had after all. Here’s hoping you have a profitable week ahead!
