Tag: Deals

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Discount Brokerage Deals and Promotions – August 2015

*Updated August 8, 2015* It’s hard to believe that August is already here. That’s right, 146 days left until Christmas, 142 left until winter and just a paltry 53 days until the beginning of fall. For Canadian discount brokerages, however, the ramp up to a busy fall and winter promotions session has already begun and time is definitely not on their side.

As far as discount brokerage deals and promotions go, August is shaping up to be an important month. Of the 15 16 deals now in play, just under half (47% 44%) are set to expire at the end of the month. At the outset of August, it is interesting to see that even deals that showed up later in July were still scheduled to expire at the end of August.

In addition to the standard cash back and commission free promotions, there are also some promotions going on that don’t usually end up in the deals tables but which we can mention here.

The first is Questrade’s Portfolio IQ contest in which individuals can enter for the chance to win a $5,000 professionally managed portfolio. Another interesting promotion, this one from Scotia iTrade, offers 10 commission-free trades to clients of Scotiabank’s StartRight program for newcomers to Canada. Finally, BMO InvestorLine (as part of a contest run by BMO) is offering students the chance to win up to $10,000 towards tuition and $500 towards books.

With so much poised to change heading into September and with so much activity already underway at Canadian brokerages, it will be interesting to watch how the discount brokerage deals unfold through this month. As always if there are any promotions that we’ve missed drop us a note or post in our online brokerage deals discussion thread.

Expired Deals

Heading into August, only one discount brokerage, Questrade, had offers that officially expired. The two offers from Questrade that were retired were the Amazon gift card promotion and the 25 commission-free trade offer.

Extended Deals

Although it technically expired at the end of June, Virtual Brokers did bring back their 25 commission-free trade offer towards the end of July and bumped the expiry date to August 31, 2015. For that reason it is not being listed as a new deal, but rather an extended one. The deal is identical to that listed in June’s deals – the minimum deposit to qualify is $15,000 and individuals receive 25 commission free trades (valued at $6.49 per trade) to use for up to 1 year from the time their account is open and funded.

New Deals

The two brokerages with new offers this month are Questrade and BMO InvestorLine.

Starting first with Questrade. Their latest promotion offers new or existing clients 5 commission-free trades for opening an account with at least $1,000. On the surface, it may not seem like a very exciting offer however it is nonetheless interesting for two reasons.

First, the offer is set to expire at the end of 2016. That is an interesting signal that this is going to be a standing offer. The second reason this promotion is interesting is because there are other offers that appear to be slightly more compelling that are directly competing with this.

The $50 commission credit offer, for example, has no deadline and can be good for up to 10 trades (depending on the structure of the trade and the commission charge). This latest offer by Questrade (the 5 free trade promotion) is good for 5 trades of up to $9.95 each and has a window of 60 days within which these bonus trades can be used.

BMO InvestorLine’s latest promotion (the “summer promotion”) is a reincarnation of their 5 star offer with some key differences. The most significant component to BMO InvestorLine’s new deal is that it takes at least $100,000 to qualify for the offer and there are cash back offers based on deposit tiers that go beyond the historically high $500,000 deposit mark and up to the $1 milllion+ dollar deposit range.

The only other brokerage in recent memory (and currently) to have a promotional offer geared to these higher deposits is Scotia iTrade. For more details on the BMO InvestorLine offer see the table below.

*Updated August 8, 2015

Questrade has relaunched its $50 Visa gift card promotion, which was last seen in May of this year. To qualify for the $50 Visa gift card, individuals must deposit a minimum of $5,000 of net new assets into a new online trading account (registered, margin or FX and CFD are eligible) and make at least one commission-generating trade within 60 days.  This offer is currently set to expire at the end of October. Read the table below for additional details.*

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO InvestorLine, they may be eligible to receive 35 commission-free trades, an eBook on investing, $50 cash back and potentially waived account minimum fees. Use promo code “YOUNG” when signing up. Be sure to read the terms and conditions for more details on the offer. A) for commission free trades: n/a B) for cash back: $25,000 A) 35 commission-free trades B) $50 cash back + 35 commission-free trades 90 days Youth Promotion August 31, 2015
Open a new account with HSBC InvestDirect and you may be eligible to receive up to 30 equity trades (North American listed equities only) commission free. Only trades placed within the first 60 days of account opening will be eligible. Be sure to read the terms and conditions for full details on this offer. n/a 30 commission-free trades (commission will be rebated within 90 days after 60 day trading period) 60 days HSBC InvestDirect Summer Promotion Terms & Conditions August 31, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions; Code Number: 476104302388759 none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer August 31, 2015
Open and fund a new account at Questrade with at least A)$1,000, B)$25,000 or C)$50,000+ and you could be eligible to receive either A)1 month, B) 2 months or C)3 months of commission-free trading. Use offer code UNLIMITED2015 when opening an application to qualify. Be sure to read full terms and conditions on this offer. A)$1,000 B)$25,000 C)$50,000 A) 1 month commission-free trading B) 2 months commission-free trading C) 3 months commission-free trading (*note trading commissions will be rebated within 10 business days of trade execution) A) 1 month B) 2 months C) 3 months Unlimited Trading Promotion August 31, 2015
Open a new online trading account (registered, margin or FX and CFD) with Questrade and deposit at least $5,000 in order to be eligible to qualify for a $50 prepaid Visa gift card. Clients must also place at least one commission-generating trade within 60 days. Use promo code VISA502015 when signing up. Be sure to read terms and conditions for full details. $5,000 $50 prepaid Visa card Prepaid Visa cards will be mailed after clients complete eligibility requirements. Prepaid Visa Promotion October 30, 2015
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A)$10,000 B)$50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade September 30, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999; B) $50,000 -$99,999; C)$100,000 – $249,999; D)$250,000 – $499,999; E) $500,000 – $999,999 or F)$1,000,000+ you may be eligible to receive a corresponding cash back or commission rebate. For commission-free trades use code: THSP15 or for cash rebates use code: RNYDMN. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. Contact Scotia iTRADE for full details on this offer. A) $15,000 – $49,999 B) $50,000 -$99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+ A) 50 commission-free trades OR $50 cash back B) 100 commission-free trades OR $100 cash back C) 250 commission free trades OR $250 cash back + KeeneOnTheMarket Subscription D) 350 commission-free trades OR $350 cash back + KeeneOnTheMarket Subscription E) 500 commission-free trades OR $500 cash back + KeeneOnTheMarket Subscription F) 1000 commission-free trades OR $1,000 cash back + KeeneOnTheMarket Subscription 120 days for commission-free trades Cash back to be deposited by February 13, 2016. $1000 or 1000 free trade offer September 13, 2015
Open and fund a new account at Virtual Brokers with at least $15,000 and you could be eligible to receive up to 25 commission-free stock or ETF trades good for use for up to one year. Use promo code “TRYUS2015” when signing up to qualify. Be sure to read full terms and conditions carefully. $15,000 25 commission-free trades 365 days Free trades for one year promotion August 31, 2015
Disnat Disnat is offering new & existing clients $500 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $50,000 $500 commission credit 6 months Disnat $500 Commission Credit Promo September 30, 2015
National Bank Direct Brokerage is offering either A) a 16GB iPad Mini or B) $300 cash back to new clients who sign up for the InvestCube service and deposit at least $50,000. Use either promo code “Mini2015” for the iPad or “Cash2015” when signing up to be eligible for this offer. Be sure to read the terms and conditions of this promotion carefully. $50,000 A) iPad Mini (16GB) B) $300 cash back Within 45 days of the eligibility date either A) the order for the tablet will be processed or B) cash back will be credited to the account. InvestCube Tablet or Cash Back Promotion August 31, 2015
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,999 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). BMO InvestorLine Refer-a-Friend October 30, 2015
Open a new account (registered, margin, or FX & CFD) with at least $100,000 in new assets and execute at least one commission-generating trade and you may be eligible to receive an Apple Gift Card worth $500.00. Use promo code APPLEWATCH2015 when registering. Be sure to read the full terms and conditions on this offer. $100,000 $500 Apple Store gift card Apple Store gift card will be emailed within 30 days of eligibility requirements being met. Apple Gift Card Promo August 31, 2015
BMO InvestorLine Open a new qualifying account with BMO InvestorLine, and fund it with either A)$100,000 – $249,999; B)$250,000 – $499,999; C)$500,000 – $999,999 or D)$1 million+ in net new assets and you may be eligible to receive either A)$200; B)$500; C)$750 or D)$1,000 cash back. Be sure to use the appropriate promotion code for the corresponding cash back tier when signing up. For the $200 cash back use DISC200; for $500 cash back use DISC500; for $750 cash back use DISC750 and for $1000 cash back use DISC1000.Be sure to read the terms and conditions for more details on the offer. A) $100,000 – $249,999 B) $250,000 – $499,999 C) $500,000 – $999,999 D) $1,000,000+ A) $200 B) $500 C) $750 D) $1000 Cash award will be paid the week of April 11, 2016. Summer Offer Promotion August 31, 2015
Last Updated: August 8, 2015 17:40 PT

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Scotia iTrade Transfer $15,000 or more to Scotia iTrade from another Canadian brokerage, and iTrade may pay up to $150 in transfer fees. $150 $15,000 1000 Free Trade or $1000 Cash Back Offer September 13, 2015
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $10,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $150 $25,000 Transfer Fee Rebate none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 confirmed with reps. Contact client service for more info (1-800-567-3343) none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $150 $50,000 Disnat $500 Commission Credit Promo September 30, 2015
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Discount Brokerage Weekly Roundup – July 31, 2015

Regardless of where you happen to be in Canada, it’s clear that the dog days of summer are here. The heat outside, however, pales in comparison to the heat felt by Canadian online brokerages to compete with one another.

With it being so close to the beginning of a new month, this edition of the roundup puts a heavy focus on just how competition is impacting the race to win over new clients with a deep dive on a newly launched promotion from one major online brokerage. Following that we take a look at a tactical move by another online brokerage to continue pushing into investor education and then review one discount brokerage’s strategy of taking advantage of low interest rates (while they’re still available). Finally we take a look at the discount brokerage tweets of the week and close out with a pair of fascinating conversations from the investor forums.

Let’s Make a Better Deal

As July winds down, the discount brokerage deals and promotions activity saw a slight uptick from two brokerages – BMO InvestorLine and Virtual Brokers.

Starting first with the latter, Virtual Brokers has decided to revive the deal that had technically expired at the end of June and extend it through to the end of August. The offer is for 25 commission-free trades that are good for use for up to one year.

At the other end of the deposit spectrum is the offer from BMO InvestorLine. In keeping with their nautical themed campaign imagery, BMO InvestorLine’s latest cash-back offer is a shot across the bow at the two other discount brokerages currently jockeying for clients with deposits of at least $100,000: Scotia iTrade and Questrade.

There’s a lot about BMO InvestorLine’s latest cash-back promotion that clearly signals they’re actively courting clients who have larger deposits/assets. First, the minimum deposit to qualify for this promotion is $100,000. The only other brokerage with an offer exclusively geared towards this deposit level is Questrade with their Apple Watch promo. That said, one of Scotia iTrade’s current cash-back promotions also has minimum qualifying tiers that match BMO InvestorLine’s almost exactly for deposits at or above $100,000. For that reason and because Scotia iTrade is a bank-owned brokerage, it is likely that the offer from BMO InvestorLine is going to compete with Scotia iTrade’s cash back offering rather than the Apple Watch .

With that in mind, comparing the BMO InvestorLine deal to the Scotia iTrade deal reveals that each discount brokerage seems to be trying to win particular segments of the marketplace (see table below).

While both are offering $1,000 cash back for deposits of $1 million or more, it appears that Scotia iTrade is offering a greater cash back offering at the $100,000 – $249,999 tier than BMO InvestorLine but at deposits between $250,000 and $999,999, BMO InvestorLine looks to be outbidding Scotia iTrade.

Cash Back Amount
Minimum Deposit Amount Scotia iTRADE BMO InvestorLine
$15,000 $50
$50,000 $100
$100,000 $250 $200
$250,000 $350 $500
$500,000 $500 $750
$1,000,000 $1,000 $1,000

Curiously, both bank-owned brokerages seem to have created an incentive structure with diminishing returns. That is, the more that an individual deposits in absolute terms, the less the individual investor actually gets back in proportional terms. Here is a graph that compares the relationship between deposit size to cash back. As the graph clearly shows, the more an individual deposits, the lower the percentage cash-back they receive.

It begs the question as to why the incentive structure was built this way, especially if brokerages want to attract deposits (in industry lingo – to increase their share of wallet). Usually consumers are given extra incentive to purchase at volume, not less. Under the current structure of these offers, DIY investors have greater financial incentive to move their business across several brokerages instead of consolidating assets at one in order to maximize their return. Here’s how.

Within the current promotions being offered, if an individual wants to maximize their incentive, and they had the assets (and desire) to do so, opening an account with Scotia iTrade AND BMO InvestorLine would net them more than opening an account with just one.

For example, individuals with $200,000 or more in assets who open an account at only one of these brokerages would net $250 (at Scotia iTrade) or $200 (at BMO InvestorLine). If, however, they split that deposit into two $100,000 deposits at each of BMO InvestorLine and Scotia iTrade, they would receive $450. For those keeping score, that’s 0.225% on $200,000 instead of either 0.13% (Scotia iTrade) or 0.1% (BMO InvestorLine).

For those looking to have their $1 million dollars go further, the following table shows that settling for $1,000 cash back at one brokerage is leaving serious money on the table.

Hypothetically, splitting the $1 million deposit across the following current cash back deals (from BMO InvestorLine, National Bank Direct Brokerage, Questrade AND Scotia iTrade simultaneously) would actually only require $900,000 and net $1650 back resulting in a return of 0.18% (in aggregate) as opposed to the 0.1% from either of the top tier offers from Scotia iTrade or BMO InvestorLine.

Discount Brokerage Deposit Amount Cash Back Rate of Return
Scotia iTRADE $500,000 $750.00 0.15%
BMO InvestorLine $250,000 $350.00 0.14%
NBDB $50,000 $300.00 0.60%
Questrade $100,000 $250.00 0.25%
Total $900,000 $1,650.00 0.18%

While dealing with multiple providers/brokerages might be an inconvenience for some, others look at spreading assets across multiple providers as a risk management strategy and as a way to get access to exclusive features each brokerage offers. There’s also nothing preventing consolidating those accounts at a particular brokerage in the future for additional benefit (once the mandatory balance holding period is complete).

Of course, moving accounts around to get incentives isn’t necessarily as lucrative as certain fixed income low-risk strategies. That said, for those in the market for a discount brokerage and who don’t mind being more transient, shuffling between providers can actually work out to being more lucrative than parking in one place.

Most discount brokerages will not be thrilled about clients constantly turning over however the fix seems somewhat straightforward – value the clients with higher deposits equal to or greater (on a proportionate basis) than smaller deposits.

Exploring Options

With exciting initiatives planned for this fall (more on that as we draw closer to September) Desjardins Online Brokerage is once again playing the investor education card to reach out to DIY investors.

In their latest offer, Desjardins Online Brokerage has teamed up with investor education firm Learn to Trade Global to offer discounted options education training. The team at Learn to Trade Global may be familiar to anyone attending the options education seminars from the Montreal Exchange (including options education day) as both Jason Ayres and Patrick Ceresna conduct seminars on behalf the exchange.

In this latest offering from Desjardins Online Brokerage, individuals who are clients (or become clients) of Desjardins Online Brokerage receive a heavily discounted (90% off) price for options education training. For $99 individuals are eligible to receive 3 months access to a number of educational materials related to options investing as well as model portfolios and trading ideas. In addition there are six live online “strategy labs” that clients can access live or watch archived versions of.

A strong focus on investor education has paid off in years past for Desjardins Online Brokerage especially in their partnership with Tyler Bollhorn from Stockscores. With this latest venture with Learn to Trade Global, it should be an interesting proposition for DIY investors looking for a structured approach to learning more about options trading from two very recognizable figures in this space.

Questrade Refinancing Debt

While low interest rates have been a headwind to the online brokerages in many respects, one Canadian online brokerage has taken the opportunity to refinance some of their higher interest debt to presumably better terms.

In an article published earlier this week in the Globe and Mail (for subscribers only), it was reported that Questrade had raised $10 million dollars at an annual interest rate of 10% and has recently repaid the original lender, Crown Capital Partners. According to the article Questrade’s CEO, Edward Kholodenko mentioned that the loan has been mostly refinanced to more favourable terms.

Questrade, however, is no stranger when it comes to accessing capital at rather hefty interest rates. Additional research on some publicly listed entities that have provided capital to Questrade reveal that Questrade has financed several million dollars at rates as high as 16%.

Given that Questrade is a private corporation, it is difficult to get a specific and transparent understanding of its financials. That said, some indirect indicators, such as these financing figures, their continued aggressive expansion into wealth management, their low client acquisition costs and building out service capacity in their online brokerage segment means that Questrade continues to push forward in becoming a contender in the Canadian wealth management industry, regardless of the short-term cost.

Discount Brokerage Tweets of the Week

This week’s tweets show once again how Twitter is increasingly becoming a medium on which individual investors are addressing customer service issues with Canadian discount brokerages. Questrade and Scotia iTrade were on the hot seat for a number of reasons whereas many of the other brokerages were largely inactive or not mentioned at all.

From the Forums

We Interrupt This Program

In this interesting thread about TD Direct Investing’s maintenance schedule, several users from the Financial Wisdom Forum voice their collective discontent with not being able to get online when they feel they should be able to, especially when looking at overseas markets.

Too Good To Be Free?

While many DIY investors are enjoying the benefits of fierce competition between online brokerages, there comes the point where it becomes natural to wonder how or if companies can afford to make money – especially when giving things away for free. In this post, one reddit user wonders aloud whether Questrade’s free ETF purchases are too good to be true.

Into the Close

That’s a wrap for this week’s roundup. After all that data it’ll be great to kick back and indulge in some regression of the non-spreadsheet variety. Have a great weekend and here’s a brief reminder of what we’re missing while beating the heat!

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Discount Brokerage Weekly Roundup – July 3, 2015

With both Canada Day and Independence Day arriving at the beginning of July is the kind of month that should literally come in with a bang. Once the fireworks die down, however, it’s also the time when you can hear the crickets chirping. Oddly enough, this characterizes the Canadian discount brokerages heading into July where, at least on the surface, it seems things have quieted down some.

We continue with the summer edition of the roundup with a quick look at the new deals/promotions lineup for July as well as some interesting news from discount brokerages in the US in terms of trading activity and interesting initiatives for older clients. From there we take a look at upcoming investor education events as well as the week for Canadian discount brokerages on Twitter. Finally, we close out with investor chatter on the forums and an interesting video in honour of the leap second that made July that much later this year.

Deals on Tumbleweed

This past week, the latest selection of discount brokerage deals were posted and things are looking a little, um, spacious.

The downward trend in the number of deals continues heading into July with 14 offers distributed over seven different brokerages. Interestingly a significant chunk of those promotions (six) are from just one brokerage – Questrade.

While summer is typically less busy than earlier portions of the year (such as the lead up to the RSP contribution deadline), the forum chatter continues to show that money doesn’t sleep nor does it take a vacation for the summer. There are still plenty of people out there curious about brokerages and their offerings.

It’s an interesting strategy to pull back going into the summer, especially considering the competitive landscape.

One of the challenges many of the bank-owned brokerages have is how DIY investors will differentiate between these brokerages. In a forum thread on Canadian Money Forum earlier this week, a user by the name of CalgaryPotato nailed it by saying:

“Most of the big banks are pretty similar with their do it yourself investing accounts”

While the discount brokerage rankings might argue otherwise, there’s clearly a growing perception that a bank-owned online brokerage is a bank-owned online brokerage.

With that in mind, it was interesting to see brokerages such as BMO InvestorLine back away from the $100,000+ deposit segment for the moment by retiring a deal geared towards that group and replace that deal link on their homepage with one that describes all of the recent discount brokerage ranking awards they’ve won. That leaves Scotia iTrade as the sole bank-owned brokerage that has a (non-referral) promotion for that segment.

Compared to the past few months, there’s a definite dip in discount brokerage promotion activity at the outset of this month (and it is still early in this month). The fact, however, that a dozen or so brokerages have to find ways to get investors not only to know that they’re out there but also to get excited suggests (and perhaps necessitates) bigger, bolder moves on the promotion horizon.

Interactive Brokers on Data-Driven Roll

With the rollover into a new month, Interactive Brokers has once again published their trading stats for the previous month (June). While Interactive Brokers has historically provided a great deal of information about its trading activity, recently there have been additional disclosures that provide a very interesting window into the world of online trading in the US as well as the inner workings of a discount brokerage.

Although most of their metrics of interest are slightly off last month’s pace, one of the most interesting ones that is up is new accounts. Interactive Brokers gained 18% on a year over year basis and 1% on a month over month basis to come in at 310,000 accounts. While that might pale in comparison to the number of accounts at some of their bigger competitors, those accounts placed an average of 447 (annualized) trades per account which works out to about 37 trades per month. Also interesting to note is their average commission for stock trades is $2.66 with an average order size of 2795 shares. Clearly these aren’t the typical buy and hold types.

On a year over year basis, however, the figures are still fairly impressive: 21% higher trades cleared, 22% higher client equity and 23% higher margin loan balances.

While it is unfortunate for Canadian DIY investors that this kind of transparency and granularity doesn’t exist with discount brokerages here, what these numbers paint a picture of is an online brokerage that continues to grow and win new clients who are active traders.

Rankings and ratings may help the cause of getting attention, but these kinds of figures reflect individual traders voting with their dollars and they have been for some time now.

Protecting Seniors

An interesting article on the potential for fraud or mishandling of seniors’ funds via brokerage accounts highlights the current landscape facing older adult DIY investors in the US are facing.

The groundswell of an aging population combined with the proliferation of technology that makes financial transactions so effortless means that brokerages may find themselves in the position of having to police their client’s trading habits.

The demographic shift has not been lost on the discount brokerage (and wealth management more generally) industry.

About a year ago, BMO InvestorLine published results of a study they commissioned on the rise in wealth transfer that could accompany an aging population. More recently, BMO Wealth Management also published a series of papers on caring for aged parents as further recognition of the impact that aging individuals will have on the financial services requirements of older adults and those who care for them. Also, Canadian Securities Administrators have placed a special emphasis on educating and empowering individuals and especially seniors about recognizing fraudulent investment opportunities.

As more investors start aging, however, the questions being debated now in the US will inevitably come up regarding Canadian investors. Given the extent to which policies in the U.S. tend to shape decisions here in Canada, this will be an interesting issue to follow in the months to come.

Event Horizon

This upcoming week there are a flurry of investor education opportunities. If you’re looking to learn about options, the technical indicator MACD or some basics on options or short selling, check out one of the sessions below.

July 7

NBDB – Introduction to Technical Analysis: Trends – [Fr]

Scotia iTRADE – Trading Options in 3-D with Pro Market Advisors

TD Direct Investing – Chart Smart – Using the MACD

July 8

TD Direct Investing – Introduction to Investing in Options

July 9

TD Direct Investing – Understanding Margin & Short Selling

Discount Brokerage Tweets of the Week

This week on social media there were a number of interesting glitches on data feeds that got the attention of a few DIY investors. Mentioned this week are BMO InvestorLine, Questrade, Scotia iTrade, TD Direct Investing and Virtual Brokers.

From the forums

Dress Rehearsal

Diving into the world of investing head first is something most beginner DIY investors should probably rethink. On the other hand, wouldn’t it be nice to be a total expert before putting real money on the line? Of course folks have to take the plunge at some time, however it is always better to learn the ropes with a safety net in place. In this post from the reddit Personal Finance Canada section, there are a number of interesting suggestions put forward to one reddit user who wanted to get the hang of investing before playing for keeps.

Coming up Short

When it comes to trading online, there’s probably one law that every DIY investor (and perhaps discount brokerage too) should keep in mind: Murphy’s Law. Yes, a healthy dose of paranoia is always in order when considering just how many moving parts there are to executing a trade and just what can go wrong in the process. With that scary prelude out of the way, this post from the RedFlagDeals investing forum highlights what went wrong for one investor trying to go short.

Into the close

That’s a wrap for this week’s discount brokerage roundup. In case you missed it, June was extended by an extra second (the ‘leap second’) and if that doesn’t seem like much, here is something interesting to watch that showcases some spectacular leaps that can happen in much less than a second. Hope you find lots of great reasons to jump for joy this weekend!

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Discount Brokerage Deals and Promotions – July 2015

Summer is a great time for taking vacations, staycations and generally taking it easy. While Canadian discount brokerages are keeping busy behind the scenes, heading into July it looks as though most of them have given the deals and promotions a break to cool off.

At the start of this month there are 14 offers currently available from seven different brokerages. Of those, nearly half (43%) come from Questrade, signaling once again that Questrade is the discount brokerage offering the most deals or incentives of the field.

With some rather prominent discount brokerages on the sidelines, it will be interesting to observe just how much traction brokerages like Questrade may gather in the summer simply because the field is less crowded. If history is any indicator, however, they won’t be left unchallenged for too long and the field may ramp up rather quickly once this holiday-shortened first week has passed.

Expired Deals

Several noteworthy deals came to an end in June. Among the most interesting was Virtual Brokers’ 25 free trade offer. Questrade launched a 25 trade offer of their own however with Virtual Brokers electing to not renew this particular deal, there is a definite gap in the segment of offers that allow clients ample time to use them. Another interesting observation was that BMO InvestorLine decided to let their ‘Five Star’ promotion come to an end. For the moment, this means that BMO InvestorLine is not currently advertising an offer geared towards large deposit accounts. Finally, Scotia iTrade and Questrade both had offers that expired in June.

Extended Deals

With so many deals scheduled to expire at the end of June, there were bound to be some extensions granted. In this month’s case, there were 3 offers that had their deadlines extended. First on deck, BMO InvestorLine extended their youth promotion (this go around naming it “phase II”) until the end of August. Next Desjardins Online Brokerage bumped the expiry date of their $500 commission rebate offer until the end of September as did Scotia iTrade with their refer-a-friend promotion.

New Deals

Late last month, Questrade launched a cleverly worded promotion that gives clients 25 commission-free trades which are good through the end of 2015. This deal requires a deposit of at least $25,000 in order to be eligible for the commission-free trades. See table below for more details.

As always if there are any offers that we may have missed or that you would like to share, feel free to drop us a note directly or to post in the community section for deals & promos.

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO InvestorLine, they may be eligible to receive 35 commission-free trades, an eBook on investing, $50 cash back and potentially waived account minimum fees. Use promo code “YOUNG” when signing up. Be sure to read the terms and conditions for more details on the offer. A) for commission free trades: n/a B) for cash back: $25,000 A) 35 commission-free trades B) $50 cash back + 35 commission-free trades 90 days Youth Promotion August 31, 2015
Open a new account with HSBC InvestDirect and you may be eligible to receive up to 30 equity trades (North American listed equities only) commission free. Only trades placed within the first 60 days of account opening will be eligible. Be sure to read the terms and conditions for full details on this offer. n/a 30 commission-free trades (commission will be rebated within 90 days after 60 day trading period) 60 days HSBC InvestDirect Summer Promotion Terms & Conditions August 31, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions; Code Number: 476104302388759 none
Open and fund a new account at Questrade with at least A)$1,000, B)$25,000 or C)$50,000+ and you could be eligible to receive either A)1 month, B) 2 months or C)3 months of commission-free trading. Use offer code UNLIMITED2015 when opening an application to qualify. Be sure to read full terms and conditions on this offer. A)$1,000 B)$25,000 C)$50,000 A) 1 month commission-free trading B) 2 months commission-free trading C) 3 months commission-free trading (*note trading commissions will be rebated within 10 business days of trade execution) A) 1 month B) 2 months C) 3 months Unlimited Trading Promotion August 31, 2015
Open and fund a new account at Questrade with at least $5,000 and complete at least one commission-generating trade and you may be eligible to receive a $50 gift certificate from Amazon. Use promo code AMAZON2015 when signing up to qualify. Be sure to read the terms and conditions associated with this offer. $5,000 $50 Amazon gift certificate Gift certificate emailed within 30 days of eligibility requirements being met. Amazon gift certificate promotion July 30, 2015
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A)$10,000 B)$50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade September 30, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999; B) $50,000 -$99,999; C)$100,000 – $249,999; D)$250,000 – $499,999; E) $500,000 – $999,999 or F)$1,000,000+ you may be eligible to receive a corresponding cash back or commission rebate. For commission-free trades use code: THSP15 or for cash rebates use code: RNYDMN. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. Contact Scotia iTRADE for full details on this offer. A) $15,000 – $49,999 B) $50,000 -$99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+ A) 50 commission-free trades OR $50 cash back B) 100 commission-free trades OR $100 cash back C) 250 commission free trades OR $250 cash back + KeeneOnTheMarket Subscription D) 350 commission-free trades OR $350 cash back + KeeneOnTheMarket Subscription E) 500 commission-free trades OR $500 cash back + KeeneOnTheMarket Subscription F) 1000 commission-free trades OR $1,000 cash back + KeeneOnTheMarket Subscription 120 days for commission-free trades Cash back to be deposited by February 13, 2016. $1000 or 1000 free trade offer September 13, 2015
Open and fund a new registered or margin online trading account with Questrade with a deposit of at least $25,000 and you may be eligible to receive up to 25 commission free trades. Use promo code “TRADEFREE15” when signing up. Be sure to read full terms and conditions. $25,000 25 commission-free trades Trades good for use until December 31, 2015. Canada Day Campaign July 31, 2015
Disnat Disnat is offering new & existing clients $500 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $50,000 $500 commission credit 6 months Disnat $500 Commission Credit Promo September 30, 2015
National Bank Direct Brokerage is offering either A) a 16GB iPad Mini or B) $300 cash back to new clients who sign up for the InvestCube service and deposit at least $50,000. Use either promo code “Mini2015” for the iPad or “Cash2015” when signing up to be eligible for this offer. Be sure to read the terms and conditions of this promotion carefully. $50,000 A) iPad Mini (16GB) B) $300 cash back Within 45 days of the eligibility date either A) the order for the tablet will be processed or B) cash back will be credited to the account. InvestCube Tablet or Cash Back Promotion August 31, 2015
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,999 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). BMO InvestorLine Refer-a-Friend October 30, 2015
Open a new account (registered, margin, or FX & CFD) with at least $100,000 in new assets and execute at least one commission-generating trade and you may be eligible to receive an Apple Gift Card worth $500.00. Use promo code APPLEWATCH2015 when registering. Be sure to read the full terms and conditions on this offer. $100,000 $500 Apple Store gift card Apple Store gift card will be emailed within 30 days of eligibility requirements being met. Apple Gift Card Promo August 31, 2015
Last Updated: July 1, 2015 15:15 PT

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Scotia iTrade Transfer $15,000 or more to Scotia iTrade from another Canadian brokerage, and iTrade may pay up to $150 in transfer fees. $150 $15,000 1000 Free Trade or $1000 Cash Back Offer September 13, 2015
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $10,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $150 $25,000 Transfer Fee Rebate none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 confirmed with reps. Contact client service for more info (1-800-567-3343) none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $150 $50,000 Disnat $500 Commission Credit Promo September 30, 2015
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Discount Brokerage Weekly Roundup – June 26, 2015

Heading into the last weekend of June, it looks like trading action is everywhere. NHL’ers & NBA’ers are trading players, politicians are trading blows and it even looks like Vancouver and Toronto have traded weather. For all the trading going on everywhere, Canadian discount brokerages are hoping DIY investors feel inspired to trade during the typically sluggish summer season.

This week’s roundup will be an aptly attired short edition. On the grill will be a look at one brokerage’s ongoing ‘quest’ to beat other discount brokerages at the deals & promotions game; a quick look at some headline making brokerages and trading technology from the US; some of the interesting social media observations, and finally, what DIY investors are talking about in the investor forums.

Questrade Launches Deal for Canada Day

Whether it was in anticipation of all the deals set to expire at the end of June or if it was timed just around Canada Day, Questrade continued to keep the deal produce fresh by rolling out their latest ‘Canada Day’ themed promotion. In their latest promo, Questrade is willing to provide 25 commission free trades which are good for use for the rest of the year or about six months for individuals who deposit at least $25,000.

The clever copywriters in the Questrade marketing department have pitched the offer as ‘trade free for the rest of the year’. And, while it is definitely not the first time this hook has been used, it is also a good example of a ‘made you look’ message. Questrade is not alone in this department as other discount brokerages try to grab the headlines with large numbers of free trades or cash back offers for very large deposit amounts. Remember, always check the fine print.

With eight deals set to expire at the end of June, it should be interesting to see which, if any, promotions will be extended and whether other discount brokerages will be looking to make a summer splash with an offer in July. Stay tuned.

Wrist vs. Reward

As an informal scientific poll, the next time you happen to be walking down the street – have a look around at how many folks are holding onto or even looking down at a screen. (If you happen to be reading this while on one of those screens, don’t forget to look up and around every once in a while!) Chances are pretty good that most younger folks are attached to some kind of smart device.For the more tech-savvy or tech-addicted traders and investors, the new ‘wearable’ technologies that are emerging will add yet another layer to how investors scan, research, monitor and buy/sell securities.

In this article from thestreet.com, there is an interesting breakdown of the possible impact of watch-based trading platforms on investors as well as some interesting data on how investors are using the different devices now available to them. While most Canadian brokerages have yet to deploy a dedicated Apple Watch trading app, there are some interesting lessons to learn from the early winners and losers in the race going on in the US.

Blunder Down Under

Endeavouring to become a truly global discount brokerage is an ambitious undertaking. Sometimes, however, things can go slightly off the rails as they did for Interactive Brokers in Australia. This past week Australia’s securities regulator halted Interactive Brokers from trading currencies because they did not have the appropriate licensing to do so. While not a large part of their overall business, going offline in any market is no fun for anyone involved and a lesson to DIY investors to do some extra legwork to ensure their provider isn’t on anyone’s naughty list – least of all the securities regulator.

Event Horizon

Just as many elementary students are going into summer vacation, the investor education offerings also have thinned out considerably going into the upcoming holiday week. Investor education event coverage will pick up again going into the 2nd week of July where there is much more activity to look out for.

Discount Brokerage Tweets of the Week

This week on Twitter, the chatter from DIY investors about discount brokerages highlighted some of the hiccups that mobile trading technology can face. Sometimes it’s just one person, other times it’s a much bigger issue. It looks like Questrade had a minor issue with their mobile trading however they weren’t the only brokerage to be bit by a technology bug. A user on Scotia iTrade’s app also found a bit of glitch with accuracy of quotes. Interestingly this week there were a few discussions on price – with CIBC Investor’s Edge getting a nod as well as the independent brokerages Questrade and Virtual Brokers. Click below to read more.

From the Forums

Advisors Getting the Boot

With the upcoming changes to the way in which financial advisors will have to start disclosing their fees to clients, there were a couple of interesting posts that might be ‘canaries in the coal mine’ for many advisory services. In this post, from Canadian Money Forum, one user was curious to know whether going it alone on CIBC Investor’s Edge was worthwhile and in this post, from reddit’s Personal Finance Canada section there was a detailed explanation behind the pros/cons of going it alone.

House of Shorts

The old adage of being greedy when others are fearful and fearful when others are greedy comes to mind when listening to the hype around Canadian real estate. While its not normally something we cover here, the conversation has shifted to how some investors would look to short Canadian real estate in the same way that some folks did in the US prior to their housing bubble bursting. Check out this interesting post on reddit’s Personal Finance Canada section for more.

Into the Close

That’s a wrap for this edition of the roundup. For the traders out there, remember that Canadian markets will be closed on July 1st (Wednesday) in observance of Canada day and that US markets will be closed on July 3rd (Friday) in observance of Independence Day. In the words of the new (and well played marketing ploy) Eh Moji’s:

 

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Discount Brokerage Weekly Roundup – June 5, 2015

Even though summer is technically still coming, for Game of Thrones fans, winter looks like it’s finally arrived. While Canadian discount brokerages may not have to worry about a horde of the undead or flying dragons, they do have to keep an eye out on each other.

In this week’s discount brokerage roundup, we take a look at the latest battleground for brokerages – deals and promotions – and the newest challenger that has stepped on the field. Next we take an in-depth look at one independent online brokerage that happens to be crushing their account growth numbers and what that might mean for DIY investors in Canada. Following the trend from the last several roundups, we’ll take a look at the latest discount brokerage tweets to see what was lighting up social media before closing out with upcoming investor education events and some enlightening chatter from the investor forums.

Deals updates

With a new month, it’s that time again to check on the deals and promotions being offered by Canadian discount brokerages. While the deal activity seemed like it was going to quiet down heading into summer, June was barely a few days old when the deals and promotions space took an interesting turn.

At the outset of the month there were 15 deals we spotted, with one new offer by Questrade included in that count. By the end of the first week, however, two more deals had joined the list: one from Questrade as well as one from HSBC InvestDirect.

Those offering promotions included the ‘usual suspects’ of Questrade, Scotia iTrade, BMO InvestorLine and Desjardins Online Brokerage, however it was HSBC InvestDirect’s offer that got our attention.

The deal itself is not groundbreaking – it is 30 commission-free (equity) trades that are good for 60 days, something that is similar to what other brokerages have offered. What is noteworthy is the lack of required minimum deposit to qualify and the fact that HSBC InvestDirect has decided run this offer from June through to the end of August as a “summer” promotion, perhaps hinting at deals that may be coming in future seasons.

In terms of activity level for promotions, HSBC InvestDirect has run/advertised very few. Aside from offers that were timed around their win of various Dalbar client service awards, HSBC InvestDirect has largely been on the sidelines with promotions. Clearly something has prompted a change.

Alongside the launch of HSBC InvestDirect’s latest promotion was Questrade’s revival of their Amazon gift certificate offer. Questrade’s addition of yet another promotion means that of all the Canadian brokerages, Questrade is offering the largest number of promotions (7 out 17 that we’re tracking).

Another noteworthy observation was that Virtual Brokers extended their commission-free trade offer until the end of June.

June should prove to be an exciting moment for promotions/deals as just about half of the 17 offers have expiry dates scheduled for the end of this month. If the rest of this month continues at this pace, it seems like a little bit of volatility might be in order – something that may play out in the favour of DIY investors in the market for an online trading account. Stay tuned.

IBKR kicking butt and taking names

As we do from time to time, we keep an eye out as to what is happening in the US space and in particular with what’s happening at Interactive Brokers (since they have a Canadian subsidiary as well).

This past week, it was interesting to see what the US discount brokerages were up to at the recent Sandler O’Neill Global Exchange and Brokerage Conference that took place in New York.

Although there were interesting presentations from E*Trade and TD Ameritrade, as well as some pot shots at the Toronto Maple Leafs making the Stanley Cup finals (apparently even Americans know that factoid about Canada even if they don’t really know our geography ) it was the presentation from Interactive Brokers’ founder & CEO Thomas Peterffy that caught our attention. For those diehard fans/followers of the online brokerage space – the session can be accessed here.

One of the biggest takeaways is that Interactive Brokers has experienced a blistering pace of account and asset growth, and, show no real signs of slowing down. According to their CEO it was a series of long-term commitments to automation that have enabled them to compete so effectively on pricing. Their ambitions extend well beyond the US markets and so it is interesting to see the moves taking place within Canada that will enable them to compete against brokerages here.

Coinciding with their appearance at the Sandler O’Neill Global Exchange and Brokerage Conference was the announcement by Interactive Brokers of the launch of their investor marketplace – something that shows once again that they are looking ahead of the curve. In case you missed it, here’s a commercial from earlier this year, which comically points out how this new feature would speak to investors or advisors.

While it is hard to know what from the US will make its way to Canadian DIY investors, it’s hard to argue with the growth figures of Interactive Brokers.

Within Canada, it appears that Interactive Brokers is chipping away at the DIY investor market. With their recent introduction of registered accounts, it should be interesting to see them start to appear on the major discount brokerage rankings now that this qualifying feature is in place.

On the horizon, however, their new marketplace may offer an integrated way to access advisors, or even robo-advisors, that have captured so much interest of late. All this while staying under the “Interactive Brokers” umbrella.

As the momentum with Interactive Brokers continues to pick up in the US, there is a strong chance that Canadians will start to hear and see them being talked about if not through commercials, then by the growing crowd of traders from the US and internationally who are clearly flocking to Interactive Brokers.

#DiscountBrokerage Tweets of the Week

In this week’s discount brokerage tweets of the week, there were an assortment of vents, apologies and pointed remarks that make the world of DIY investing such a colourful one to follow.

As has been the case over the past several weeks, Questrade continues to be the most active on Twitter amongst the Canadian discount brokerages. Other online brokerages may be online, but as the tweets below show, few of them capture much attention other than when things go awry for clients.

 

Event Horizon

June 8

Scotia iTRADE – Trading Psychology Part 2 with Stefanie Kammerman

June 9

Scotia iTRADE – Sources of Income and Yield Using ETFs with Horizons ETFs

TD Direct Investing – Introduction to Investing in Options

June 10

TD Direct Investing – Introduction to Investing

TD Direct Investing – Options as an Income Strategy

NBDB – International Investing – [Fr]

June 11

TD Direct Investing – Introduction to Technical Analysis 

From the Forums

When is a TFSA not a TFSA

From time to time there have been stories of fabled, almost mythological, balances of TFSAs. The news that the CRA is looking into a limited number of individuals’ “very high” TFSA balances is concerning to DIY investors on a number of levels. In this post from the reddit Personal Finance Canada section, a fascinating discussion of how these balances may have gotten so big and what the CRA may or may not be able to do highlights how important getting clarity on the rules about TFSAs are.

Breaking up is Easy to Do

For many Canadian investors, having a financial advisor is one way to help manage and navigate the complex world of investments and investment products. For the DIY investor crowd, however, there is very little love for the ‘typical’ financial advisory. In this post from the Canadian Money Forum, readers chime in on one individual’s question as to how to go about breaking things of with an advisor they’re just not that into.

Questrade VS RBC Direct Investing

An independent brokerage that advertises low commission prices or a big bank that kicked of the ‘fee-asco’ of falling commission rates. It’s a question many investors wrestle with. In this post from reddit’s personal finance Canada section, there was an interesting debate about the merits and drawbacks of picking one brokerage over the other.

Into the Close

That does it for this week’s roundup. Whether it’s Game of Thrones, the Stanley Cup or a frosty beverage on a patio (or all of the above), however the ice makes its way into your weekend, we hope it keeps you cool!

For those of us who hate to pay fees for seemingly small requests, this is an entertaining real-life example of some batman like drive and applied math in action to beat one airline’s administrative fees.

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Discount Brokerage Deals and Promotions – June 2015

*Updated June 16*

With summer now just around the corner, June should prove to be an interesting month for discount brokerage deals and promotions.

On the one hand there has been a pullback in the number of deals as we head into the summer, however the same core group of discount brokerages continue to run active promotions. In particular, BMO InvestorLine, Questrade and Scotia iTrade each have multiple offers, with Questrade aggressively putting forward 6 of the 15 offers at the outset of June.

What is interesting to observe is that 50% of the current offers are timed to expire at the end of June. This signals that DIY investors can expect some deal turnover to happen through and towards the end of this month.

Another interesting observation is that the latest offers from Questrade and Scotia iTrade have deadline dates well into the end of August or mid-September.

We’ll definitely be monitoring June closely to see what’s going to unfold.

Expired Deals

There were five noteworthy discount brokerage deals that expired at the end of May. In particular there were three concurrent offers from Scotia iTrade that consisted of cash back and/or free trades that expired and were replaced by the deal referenced below.

Questrade also saw their $250 prepaid Visa offer expire as well as one of their 100 free trade offers.

Extended Deals

Not wanting to be excluded from the deal pack, Virtual Brokers extended the deadline for their “25 commission-free trade for a year” from the end of May through to the end of June.

New Deals

*Updated June 16:

After taking a bit of a break, National Bank Direct Brokerage has stepped back into the deals & promotion pool with a new offer linked to their ‘InvestCube’ service. Until August 31st, NBDB is offering up either a 16gb iPad Mini (estimated value $329 CAD) or $300 cash back for a minimum deposit of $50,000 into a new InvestCube account. See table below for additional details.*

*Updated June 3:

There are sometimes in life when a Ron Burgundy quote seems entirely appropriate. In this case, it’s that things ‘escalated quickly’ with regards to deals and promotions at discount brokerages in June. Although it was quiet to start off June, barely 3 days into the month there are two new offers that have launched.

The first is from a very unlikely candidate – HSBC InvestDirect, who has kicked off the summer with a commission-free trading promotion. This offer is for 30 commission free trades that are good for use within 60 days. Check out the table below for full details.

The second offer is yet another promotion being launched by Questrade. In their latest promo, Questrade has revived the Amazon gift certificate deal although this time it is aimed at smaller depositors than their previous one. Questrade is now offering a $50 Amazon gift certificate for deposits of at least $5,000. More details below.*

In keeping with their ongoing strategy of offering up multiple promotions, Questrade launched a smart(watch) offer in May and has resurrected another headline grabbing deal for June.

Midway through May, Questrade made a timely decision to capitalize on the interest in the Apple Watch by launching a promotion with the smartwatch as a theme.

Digging into the fine print, the offer was actually for a $500 Apple Store gift card for deposits of at least $100,000. While it is technically just enough to land the base model of the Apple Watch, the $500 Gift Card offer is still a pretty substantial offering for the $100,000 deposit.

There were more than a handful of tweets and forum posts that highlighted that Questrade has their fingers on the pulse of what their key demographic of clients is hungry for.

In addition to their new shiny promotion, starting this month Questrade is bringing back their “3 month unlimited trading” offer. Specifically, this promotion offers individuals one, two or three months of unlimited commission-free trading based on deposits of at least $1,000; $25,000 or $50,000. As a note, commissions are charged at the time of trading and then reimbursed within 10 business days. See table below for more details.

Finally, Questrade has recently changed their refer-a-friend offer away from commission credits and replacing it with a substantially lower cash back offering. We’ve updated the table below with the new referral code info. For individuals interested in using this promotion, be sure to read the terms and conditions as there are requirements for minimum balance amounts to held for minimum periods of time.

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO InvestorLine, they may be eligible to receive 35 commission-free trades, an eBook on investing, $50 cash back and potentially waived account minimum fees. Use promo code “YOUNG” when signing up. Be sure to read the terms and conditions for more details on the offer. A) for commission free trades: n/a B) for cash back: $25,000 A) 35 commission-free trades B) $50 cash back + 35 commission-free trades 90 days Youth Promotion June 30, 2015
Open a new account with HSBC InvestDirect and you may be eligible to receive up to 30 equity trades (North American listed equities only) commission free. Only trades placed within the first 60 days of account opening will be eligible. Be sure to read the terms and conditions for full details on this offer. n/a 30 commission-free trades (commission will be rebated within 90 days after 60 day trading period) 60 days HSBC InvestDirect Summer Promotion Terms & Conditions August 31, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions; Code Number: 476104302388759 none
Open a new account (margin or registered account) with Questrade and deposit at least A)$1,000 or B)$10,000 and you may be eligible to receive A)10 commission-free trades or B)100 commission-free trades. Use promo code 100FREEML15Q3 when registering. Be sure to read the full terms and conditions for this offer. A)$1,000 B)$10,000 A) 10 commission-free trades B) 100 commission-free trades 60 days 100 free trades/multileg offer June 30, 2015
Open and fund a new account at Questrade with at least A)$1,000, B)$25,000 or C)$50,000+ and you could be eligible to receive either A)1 month, B) 2 months or C)3 months of commission-free trading. Use offer code UNLIMITED2015 when opening an application to qualify. Be sure to read full terms and conditions on this offer. A)$1,000 B)$25,000 C)$50,000 A) 1 month commission-free trading B) 2 months commission-free trading C) 3 months commission-free trading (*note trading commissions will be rebated within 10 business days of trade execution) A) 1 month B) 2 months C) 3 months Unlimited Trading Promotion August 31, 2015
Open and fund a new account at Questrade with at least $5,000 and complete at least one commission-generating trade and you may be eligible to receive a $50 gift certificate from Amazon. Use promo code AMAZON2015 when signing up to qualify. Be sure to read the terms and conditions associated with this offer. $5,000 $50 Amazon gift certificate Gift certificate emailed within 30 days of eligibility requirements being met. Amazon gift certificate promotion July 30, 2015
Open a new account with Questrade and deposit at least A)$5,000 or B)$25,000 and you may be eligible to receive A)$50 cash back or B) $75 cash back. At least one commission-generating trade must be executed in order for cash back to apply. Use code TFSA2015 when registering to qualify. Be sure to read the full terms and conditions for this offer. A)$5,000 B)$25,000 A)$50 B)$75 Cash rebates applied within 60 days of funding eligibility and trade execution confirmation. 100 free trades offer June 30, 2015
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A)$10,000 B)$50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade June 30, 2015
Open and fund a new account at Virtual Brokers with at least $15,000 and you could be eligible to receive up to 25 commission-free stock or ETF trades good for use for up to one year. Use promo code “TRYUS2015” when signing up to qualify. Be sure to read full terms and conditions carefully. $15,000 25 commission-free trades 365 days Free trades for one year promotion June 30, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999; B) $50,000 -$99,999; C)$100,000 – $249,999; D)$250,000 – $499,999; E) $500,000 – $999,999 or F)$1,000,000+ you may be eligible to receive a corresponding cash back or commission rebate. For commission-free trades use code: THSP15 or for cash rebates use code: RNYDMN. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. Contact Scotia iTRADE for full details on this offer. A) $15,000 – $49,999 B) $50,000 -$99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+ A) 50 commission-free trades OR $50 cash back B) 100 commission-free trades OR $100 cash back C) 250 commission free trades OR $250 cash back + KeeneOnTheMarket Subscription D) 350 commission-free trades OR $350 cash back + KeeneOnTheMarket Subscription E) 500 commission-free trades OR $500 cash back + KeeneOnTheMarket Subscription F) 1000 commission-free trades OR $1,000 cash back + KeeneOnTheMarket Subscription 120 days for commission-free trades Cash back to be deposited by February 13, 2016. $1000 or 1000 free trade offer September 13, 2015
Scotia iTrade Open a new Scotia iTRADE account with at least $15,000 by June 30, 2015 and you could be eligible to receive up to 100 online trades commission-free (equities, options, ETFs). Use promo code HUN-SP when registering to qualify. Be sure to carefully read full terms and conditions. $15,000 100 commission-free trades (+ free trial of FightDesk platform for 60 days) 60 days 100 Free Trades Offer June 30, 2015
Disnat Disnat is offering new & existing clients $500 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $50,000 $500 commission credit 6 months Disnat $500 Commission Credit Promo June 30, 2015
National Bank Direct Brokerage is offering either A) a 16GB iPad Mini or B) $300 cash back to new clients who sign up for the InvestCube service and deposit at least $50,000. Use either promo code “Mini2015” for the iPad or “Cash2015” when signing up to be eligible for this offer. Be sure to read the terms and conditions of this promotion carefully. $50,000 A) iPad Mini (16GB) B) $300 cash back Within 45 days of the eligibility date either A) the order for the tablet will be processed or B) cash back will be credited to the account. InvestCube Tablet or Cash Back Promotion August 31, 2015
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,999 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). BMO InvestorLine Refer-a-Friend October 30, 2015
Open a new account (registered, margin, or FX & CFD) with at least $100,000 in new assets and execute at least one commission-generating trade and you may be eligible to receive an Apple Gift Card worth $500.00. Use promo code APPLEWATCH2015 when registering. Be sure to read the full terms and conditions on this offer. $100,000 $500 Apple Store gift card Apple Store gift card will be emailed within 30 days of eligibility requirements being met. Apple Gift Card Promo August 31, 2015
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least A)$100,000 – $249,999; B)$250,000 – $499,999 or C)$500,000+ in net new assets and you may be eligible to receive either: A)$250 cash back OR 125 commission-free trades; B) $500 cash back OR 250 commission-free trades; C)$1000 or 500 commission-free trades. Use promo code 5CASH for cash back promotion or 5TRADE for commission-free trade promo. Be sure to read full terms and conditions for eligibility and further details. A) $100,000 – $249,999 B) $250,000 – $499,999 C) $500,000+ A) $250 cash back OR 125 commission-free trades B) $500 cash back OR 250 commission-free trades C) $1000 or 500 commission-free trades. Cash back: 6 months – 7.5 months Commission-free trades: 90 days (note: commission fees rebated within 45 days after 6 month credit period) Five Star Promotion June 30, 2015
Last Updated: June 3, 2015 10:00 PT

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Scotia iTrade Transfer $15,000 or more to Scotia iTrade from another Canadian brokerage, and iTrade may pay up to $150 in transfer fees. $150 $15,000 1000 Free Trade or $1000 Cash Back Offer September 13, 2015
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $10,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $150 $25,000 Transfer Fee Rebate none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 confirmed with reps. Contact client service for more info (1-800-567-3343) none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $150 $50,000 Disnat $500 Commission Credit Promo June 30, 2015
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Discount Brokerage Weekly Roundup – May 29, 2015

When the weather starts to get this nice, it’s harder to enjoy it from behind a desk or a window. Perhaps that was also to blame for the market sell-off going into the weekend. While folks across the country are probably looking forward to some grill time, many discount brokerages, on the other hand, would definitely welcome the break from getting grilled.

In this ‘nice weather’ edition of the roundup, we’ll take a look at one small brokerage that landed a rather big financial services partner in order to compete strategically with the bank-owned brokerages. Next we take a look at another Canadian discount brokerage who’s showing signs of winning with investors. Following that, we take a quick scan at the deals/promotions set to expire and then move on to the home stretch where we continue with our discount brokerage tweets of the week, investor education event horizon and close out with two very interesting forum threads.

Funds in the Sun

When you’re not the biggest online brokerage in the room, there’s a fair bit of creativity required in order to maneuver around the DIY investor market. One way in which to do this is to create strategic partnerships.

This past week, Qtrade Securities Inc. (which controls Qtrade Investor) announced that they’re partnering up with Sun Life Financial to enable Sun Life’s financial advisors to connect their clients to Qtrade’s investment advisors and/or to Qtrade Investor directly.

Last year, at just about the same time of year, Qtrade also announced a similar partnership with Great-West Life with a familiar strategy in mind.

As the battle between online brokerages for new clients and new client assets continues to intensify, so too does the cost of acquiring new clients. And, in a falling commission revenue environment, there’s definite pressure to innovate.

From a strategy perspective, getting clients from referrals (instead of having to spend lots of resources on marketing) is much more cost effective. This is something other smaller brokerages have turned to in order to compete with the bigger banks who can typically “cross sell” their customer base on an online brokerage account while visiting an ATM or bank website.

That said, bank-owned brokerages still command the lion’s share of online brokerage accounts in Canada. As the year progresses, it will be interesting to see what else firms like Qtrade will be up to in order to win attention away from larger and smaller competitors alike.

Interactive Brokers Canada Building the Bench

As was mentioned in last week’s roundup – there are some interesting signs of what Canadian discount brokerages are up to based on some of the activities observed online. This week we turn our attention to a popular online brokerage: Interactive Brokers Canada.

Although there was a fairly large response from investors to the news that Interactive Brokers Canada began accepting registered accounts, the initial buzz has appeared to have died down.

While it is difficult to speculate on just how many individuals have decided to open up either a TFSA and/or RRSP at Interactive Brokers, recent postings for additional customer and technical service support at the Interactive Brokers Canada offices in Montreal seems to suggest that extra hands might be required.

Even though hiring of client service reps aren’t that abnormal (RBC Direct Investing also posted for a client service rep this week), in IB Canada’s case, the headcount is generally kept pretty small. The relatively low headcount is why, according to recent reports, they averaged about $1.3M in revenue annually per employee.

Screenshot from Interactive Brokers website.
Screenshot from Interactive Brokers website.

In addition to the new staff it appears they’re also advertising their new account offerings online – something they typically haven’t done within the Canadian market.

With a very low cost structure to begin with, Interactive Brokers will naturally attract price sensitive investors. Putting these pieces together, however, suggests that their strategy to attract more attention by offering registered accounts and shoring up support might be paying off.

Deal Preview

Heading into a new month means deals and promotions require a quick check-up.

After a busy first quarter of 2015, the deals and promotions from Canadian discount brokerages has slowed down in May. Our sources have suggested that several bank-owned brokerages have been working on promotions, however at this point nothing concrete has surfaced.

With that in mind, there was one extension to report on from Questrade which bumped back the deadline of their prepaid Visa card promotion to the end of this month. That brings the count to 2 of deals from Questrade that are timed to expire at the end of May. The other brokerage offer that is scheduled to expire at the end of May is from Scotia iTrade. Their landmark $500 AND 500 free trade promotion is one of the most aggressive they’ve ever put forward and it was timed specifically around the launch of their investor centre in downtown Toronto.

We’ll be keeping an eye out for anything that surfaces over the weekend and at the launch of the new month.

#DiscountBrokerage Tweets of the Week

In this week’s edition of the tweets of the week, it’s clear once again to see how much activity to and from Questrade takes place on Twitter.

Questrade was busy fielding comments on topics from technology to features. Other brokerages were also on the ball when it came to keeping an ear out for folks interested in them – in particular RBC Direct Investing and Scotia iTrade. One interesting observation was from frustrated tweeters about Virtual Brokers’ customer service, both of whom remained unanswered as we went to publication.

Event Horizon

Vancouver seems to be where it’s at this weekend.

The Montreal Exchange’s Options Education Day takes place this Saturday – preregistration is required.

Also, the Canadian Investor Conference – also known as Canvest – will take place on Sunday and Monday. For more information or to register, click here.

From the Forums

Reviews of Questrade

If there’s one thing that Questrade has appeared to do far more successfully than its online brokerage peers, it has been building “street cred” with Canadian investor forum users and on social media. Unlike on Twitter where individuals either rant (mostly) or rave about a brokerage, on the forums there are typically more complete conversations that include positive things to say about a brokerage. While character length may have something to do with it, the self-policing nature of forum communities generally means that different perspectives help form a more accurate version of what’s going on. In fact, there are often some relatively heated debates involving folks sticking up for their brokerage – something that has yet to appear on Twitter, at least for Canadian brokerages.

In this thread on reddit’s Personal Finance Canada thread, it was particularly interesting to see what individuals really liked or spoke out about regarding Questrade. Worth a read for those thinking about Questrade.

The Dividend Did It

Learning about the nitty gritty of what discount brokerages do is not something most brokerages telegraph well. After all, who’s got the time to explain how the whole thing works (assuming they know themselves!)? In this post from the financial wisdom forum, one user noticed a fluctuation in a limit order they placed that was cause for concern. This one is of particular interest to the dividend enthusiasts.

Into the Close

That’s a wrap for this week’s roundup. After spending a fair portion of the week wrestling with social media (#FirstWorldProblems) an interesting topic that ended up trending was #AdviceForYoungTraders. It was a fascinating thread filled with all kinds of interesting trader maxims. Of course, one of the most, um, concise, was from WWF Wrestling Superstar and often NSFW Iron Sheik (who doles out this ditty regularly):

 

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Discount Brokerage Weekly Roundup – May 22, 2015

Like some kind of odd celestial alignment, the convergence of shorts weather on a short work week just as the S&P 500 hits a new high and causes yet another squeeze on the shorts. Yup, seems like shorts are the theme for this week’s roundup, and as such, this discount brokerage roundup will try to, um, keep it short.

In this edition of the roundup we take a look at the latest deal launched by one bank-owned online brokerage and why it might be a signal for the upcoming summer discount brokerage deals season. Next we gaze into the tea leaves with some interesting signals from one brokerage’s activity patterns as well as look at one looming threat to brokerages that may turn out to be more sizzle than steak. We’ll also take a look at what the chatter about discount brokerages was like on social media with our new #TweetsOfTheWeek. Finally we’ll take a look at the upcoming investor education events and some very interesting chatter from the investor forums.

Cash (or Free Trade) Me if You Can

Just in time for summer, Scotia iTrade has resurrected their 1,000 free trade/$1,000 cash back offer once again albeit with several twists.

When it first launched in January of 2015, it was the only offer that offered a specific promotion for deposits over $500,000 as well as the largest headline number for a cash back or free trade promotion. At the time the offer consisted of either cash back or commission free trades, and included a trial of the Scotia iTrade platform FlightDesk.

In its latest incarnation, the $1,000 cash back or 1,000 free trade offer now includes a 6 month subscription to the US based KeeneOnTheMarket.com trade alert service for individuals who deposit more than $100,000. As was the case in January, it appears that Scotia iTrade is looking to distinguish its promotions from other brokerages with bigger, bolder numbers of deposits sizes, free trades or cash back and now a stockpicker’s subscription service.

Interestingly, through the remainder of May, they will have several concurrent offers which could offer deal hunters a narrow window to pick the best one of the bunch.

Another noteworthy component to the latest deal from Scotia iTrade is that the offer expires well into September. Many other offers from bank-owned brokerages aren’t set to go that long but it looks like Scotia iTrade has firmly placed their bets on this flagship offer for the rest of the summer.

Finally, there is clearly an interesting spin on this offer that is geared towards active traders of US equities/options. Scotia iTrade continues to court this highly prized segment with their $4.99 active trader commission pricing, platform, service offering and now promotions.

It will be interesting to see if any other bank-owned online brokerage steps up to challenge Scotia iTrade in the active trader segment. The recent fee hikes from the major Canadian banks likely saw long-term investment accounts take some collateral damage with disgruntled clients jumping ship. The priority will likely therefore be on winning back those clients with incentives rather than chasing active traders. Whatever the case, Scotia iTrade has opted step into summer swinging with big headlines that other bank-owned brokerages will have to seriously ante up to beat. Should be an interesting summer.

Starting to Sizzle

Between the major news announcements, there are always some minor blips on the radar that indicate that the Canadian online brokerages are working away on something.

One bank-owned brokerage in particular seems to be finding its way back on to the radar more regularly. CIBC Investor’s Edge has been mentioned several times in recent roundups and stories for rolling out new pricing, promotions and seminars this year – something that was distinctly different from most of 2014. This past week they have yet again changed their homepage imaging and seized upon a timely trend by pitching visitors to their website the benefits of TFSA – something that up until now only Questrade had really picked up the ball on.

source: screenshot from CIBC Investor’s Edge Homepage

While it is still early, it appears that there is a trend amongst Canadian discount brokerages to increasingly focus on the content and design of their sites.

Recently CIBC Investor’s Edge and BMO InvestorLine have been building their respective benches in these areas by looking to hire designers and user experience specialists. BMO InvestorLine recently rolled out their new website front-end along with Desjardins Online Brokerage earlier this year and we’ve had confirmation from several other brokerages they are poised to do the same within the next 6 months. CIBC Investor’s Edge looks like they might be gearing up for some substantial design changes in the not too distant future.

CIBC Investor’s Edge bold commission pricing drop has put them back into minds of many DIY investors as well as their competitors, however their most recent maneuvers might signal that competition on user experience between bank-owned brokerages is going to get even hotter.

Don’t Believe the Hype?

For many DIY investors, the recent spike in attention given to robo-advisors has got more than a few feathers ruffled.

In an interesting story from International Adviser, however, one of the groups singled out as being threatened by the robo-advisor trend may breathe a sigh of relief. The reason: profitability.

While there has been lots of interest on the part of retail investors in these robo-advisors, the article points out the numerous challenges to successfully growing to scale where they can threaten the discount brokerage space. The point, as it is in many industries, is that only the strong will end up surviving. It’s a familiar refrain for discount brokerages who know all too well that success hinges on having a critical mass of clients AND being able to stick out from their competitors. For robo-advisors, the fight is only just beginning and it’s likely to expect discount brokerages won’t be letting them advance unchallenged for much longer.

#DiscountBrokerage Tweets of the Week

This week it looks like Twitter users from Questrade were again having trouble sourcing stocks to short. Given that certain markets are pushing all-time highs, it’s interesting to see a) that so many traders are attempting shorts and b) that Questrade users are encountering challenges shorting. While tweets to and from Questrade dominated the news feed, one user vented about the customer service experience at Virtual Brokers – something that has also been getting attention from other users posting to our forum.

Event Horizon

May 26

NBDB – Introduction to Call Options – [Fr]

TD Direct Investing – Understanding Margin & Short Selling – [Mandarin]

Scotia iTRADE – Options Trading For Beginners with Sarah Potter

May 27

Scotia iTRADE – Options Trading – Building A Collar with Montreal Exchange

TD Direct Investing – Advanced Options

TD Direct Investing – Understanding Margin & Short Selling

From the Forums

Keeping count

There are many reasons individuals may decide to open multiple accounts with discount brokerages. Chief among them are risk management (think eggs in baskets), CIPF protection and special features, one of the drawbacks is keeping them all straight. In this post from the financial wisdom forum, it was pretty interesting to see just how many discount brokerage and banking accounts certain individuals admitted to using.

Small Potatoes

It’s becoming trickier for smaller, inactive investors to park their money at a discount brokerage. In this post from Red Flag Deals, the inactivity fee took one investor at Qtrade by surprise. Check out what the community had to say about their options.

At the Close

That’s a wrap for this week. Remember that US markets will be closed on Monday for Memorial Day so for the US traders it will be a short week. Wherever you happen to be this weekend, hopefully you are blessed with great weather or some wildly entertaining stuff to watch. To help launch you into the weekend on a high note, here’s more great footage of people flying – a Canadian in shorts no less!

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Discount Brokerage Weekly Roundup – May 15, 2015

source: geekalerts.com

When it comes to DIY investing – or any investing, emotion is a lever best-not pulled. For discount brokerages, however, being boring doesn’t get attention and not getting attention means being left out.

In this long weekend edition of the roundup, we’re excited to add a new feature into the mix. First, we take a look at the latest attempts by discount brokerages to get attention, then highlight an upcoming learning event. Next, we roll out something new that will shine a light on something lots of people want to know about Canadian discount brokerages. Following our surprise new piece we’ll take a look at the upcoming investor education events and close out with the investor chatter from the forums and very cool video for the rocketeer enthusiasts.

A better toaster

What happens to an industry where it’s tough to tell one provider apart from another? Toss in a toaster.

Odd as it may sound, toasters and financial services go way back. The idea of tossing in a free toaster to attract new bank clients was popular hook in the 1950’s and, while the idea of attaching an incentive to draw in new business is not new, it’s interesting to see what discount brokerages and banks are doing in 2015.

This past week, promotional juggernaut Questrade launched their latest deal of advertising an Apple Watch to individuals signing up for an account and depositing at least $100,000. For those keeping score at home, this brings the consecutive mentions of the Apple Watch in the weekly roundup to three and the number of deals Questrade runs to more than everybody else.

Of course, digging deeper into the fine print, it appears the offer is actually not for an Apple watch, but rather for an Apple Store gift card worth $500.00. A quick check of the Apple store found the following models of Apple watches:

  • Apple Watch Sport (ranges between $449 and $519 +tax)
  • Apple Watch (ranges between $699 and $1459 +tax)
  • Apple Watch Edition (ranges between $13,000 and $22,000 +tax)

Thus, the clever marketers at Questrade have managed to grab headlines and attention with an item that ranges in price between $449 and $22,000, but really refers to the most basic (but still cool) model of the Apple Watch Sport.

Questrade has largely gone unchallenged by other Canadian online brokerages in offering up Apple products as incentives for new account openings. Recall that Questrade has run with the iPad mini promotion multiple times over the past two years.

In the financial services market, and in the online discount brokerage segment in particular, this is one of those moments where someone has done their marketing homework on “differentiation” and the “halo effect”. So what has Questrade done to make themselves stand out?

The answer is just about everything, and it seems to be working.

Did we notice? (Yep); are we talking about it here (earned media: check), are other DIY investors are talking about it on forums and social media? (more earned media: check) and of course co-branding an online brokerage alongside a brand like Apple with their most buzzworthy product right now probably doesn’t hurt either.

Relative to the other Canadian discount brokerages, Questrade appears to be putting on a little bit of a marketing clinic online. Although the tactics aren’t necessarily new, they are nonetheless effective in attracting attention and, importantly, appealing to emotion.

For DIY investors, especially those looking for online trading accounts for the first time, there is only going to be more marketing coming their way. Competition between brokerages in Canada is fierce and if one brokerage is doing something right, others are sure to follow suit. Where could it end? A look at the Chinese banking sector’s approach is a window into how extreme this incentive game gets with iPhone 6s and Mercedes’ being offered.

It’s important, therefore, to see past the incentives and to reign in the emotion. The most important component of picking a service provider is whether they are a good fit. A good set of questions to always keep asking are:

  1. Do they do what you need them to do?
  2. How well do they do it?
  3. How much are they charging for it?

Through the marketing efforts, all businesses (big and small) hope that a promotion or deal can change how you value their offering. That’s simply a business reality for buyers and sellers.

That said, most folks probably need another screen to look at as much as they need another toaster. The art of marketing, however, is more about want rather than need. And, it is exactly why DIY investors should know what they need before they get something they don’t want.

Options Education Day Returns to Vancouver

If you happen to be in Vancouver at the end of May and are interested in learning about options, the Options Education Day tour is coming to town once again.

The topics on the agenda for this session include:

  • Options fundamentals
  • Four ways to hedge against risk
  • Managing the effects of volatility
  • Understanding put-call parity
  • The road ahead: What’s next for Canadian investors?

A number of discount brokerages will also be on hand as sponsors for this event including:

This event typically sells out ahead of the session so be sure to RSVP early to avoid disappointment. The cost for the day-long session is $45 and includes breakfast, lunch and training materials. Click the following link for more information on Options Education Day Vancouver.

Discount Brokerage Tweets of the Week

As part of our ongoing effort to bring together the fuller picture of what’s going on in and around the Canadian discount brokerage landscape, we are excited to (re)release the discount brokerage tweets of the week.

The format of the tweets of the week has changed somewhat from its earlier incarnation. Instead of featuring what online brokerages themselves are saying, we’ve included the conversations, comments and perspectives of both DIY investors and the brokerages who are on Twitter. The brokerages may be on Twitter directly or as part of their parent company’s customer service team. Several of the bank owned brokerages, in particular TD Direct Investing, RBC Direct Investing, BMO InvestorLine and CIBC Investor’s Edge, handle incoming tweets via their parent bank Twitter accounts.

In this first week, it was interesting to see that brokerages big and small encounter issues with account opening and delays getting things up and running. Of course, what’s equally informative is how fast and how helpful client service teams are on Twitter. This week there are tweets about or to the following discount brokerages:

  • BMO InvestorLine
  • Credential Direct
  • Questrade
  • RBC Direct Investing
  • Scotia iTrade
  • TD Direct Investing

Noticeably absent from the list this week was Virtual Brokers, who’ve been quiet on Twitter since early April.

So, as another first we’ve brought to the Canadian discount brokerage space, here are the curated discount brokerage tweets of the week. #Enjoy!

Event Horizon

May 19

NBDB – Take Advantage of Margin Accounts – [Fr]

Scotia iTRADE – How And When To Use The MACD with Pro Market Adivsors

May 20

TD Direct Investing – Technical Analysis – Advanced Indicators

TD Direct Investing – Introduction to Technical Analysis

TD Direct Investing – Introduction to Investing in Options

TD Direct Investing – Market Outlook

Scotia iTRADE – Getting Started With ETFs with iShares

May 21

TD Direct Investing – Introduction to Fixed Income

Scotia iTRADE – Short Selling with AJ Monte

TD Direct Investing – Introduction to Fundamental Analysis

May 22

Scotia iTRADE – Trading Psychology Part 1 with Stefanie Kammerman

From the Forums

Getting the Party Started Right

Opening an online trading account is still a somewhat involved process. In this post from reddit’s Personal Finance Canada section, one user asks about the initial funding requirements for a Questrade account. Fortunately both the community and a Questrade rep provide a detailed answer.

Leftovers

With many parties slated to take place this Victoria Day weekend, there’s the fun part and then there’s what happens after the party’s over. For most there’s some cleanup involved. In this post, again from reddit’s Personal Finance Canada section, when the party was over for one stock in an investors portfolio there were still two laggard shares left in their account. Check out how the community explained the process of getting rid of them.

Discount on the Potato

It seems fitting heading into a long weekend that the infamous ‘take it easy’ approach of the Canadian couch potato portfolio strategy came up this past week. Specifically, in the RedFlagDeals investing forum, one user asked about whether the couch potato portfolio is something that can be used with Virtual Brokers.

The Closing Bell

That does it for this edition of the weekly roundup. A quick reminder that Canadian markets will be closed on Monday for Victoria Day and will reopen for Tuesday. Here’s some spectacular footage of some awesome technology to propel you into the weekend – cue the rocketman! Have a safe and enjoyable holiday weekend.