Deals – Page 31 – SparxTrading

Posted on February 28, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – February 28, 2014

Less than a week after skiers and snowboarders were making their way down the slopes, a different set of peaks and valleys are now confronting investors. At the peak, the S&P 500 chased a new all-time high this week. Down in the valley is bitcoin because of the loss of a major exchange to a possible theft.

Canadian discount brokerages were also busy navigating their own ups and downs this past week. In this roundup we look at a major Canadian online brokerage that went temporarily offline, roll outs of a new set of US Dollar registered accounts, the continued ripple effect of standard commission price drops, a couple of interesting educational resources and finally, some insightful threads from the Canadian investor forums.

TD WebBroker Goes Offline

As one of Canada’s largest bank-owned discount brokerages, clients of TD Direct Investing had a rough couple of days this week when WebBroker (and EasyWeb) went offline due to technical difficulties. The cause of the outage was not disclosed however the outage caught the attention of investors on social media, forums and mainstream media.

View the story “TD Direct Investing’s WebBroker Goes Offline” on Storify

The outage is an important example of what can sometimes go wrong when trading online and also where traders can turn when something unknown happens. Active traders that had open positions or trades going against them were likely in for a white-knuckle ride as they were forced to wait and watch the market unfold. For others who were looking to contribute into their RRSP accounts ahead of the deadline, the downtime was understandably frustrating.

While it is cold comfort to investors or traders who are unable to access their account, the fact is that technical glitches can happen to any online brokerage, exchange or data providing member in the convoluted pathway between buyer and seller. Part of trading online means preparing for and accepting these hazards.

Even though TD did apparently broadcast the service interruption, it was interesting to note that on Twitter there were a number of messages from users indicating the issue first arising, escalating and finally being resolved. The use of Twitter as a way to stay informed about what’s happening in near real-time comes in handy when other channels aren’t providing much information.

USD Registered Accounts Quietly Rolling Out

US dollar registered accounts are great feature for those who do a great deal of trading in US listed equities and options. While several bank-owned online brokerages do offer this, some of the major brokerages such as TD Direct Investing, have yet to bring this feature to clients.

A comment left by visitor ‘Jin’ earlier this week brought to light that National Bank Direct Brokerage is quietly offering existing and prospective clients USD TFSAs and RRSPs. Upon following up with a client rep from NBDB, they explained that these accounts are being rolled out as part of a multi-phase plan and that currently they are about 2/3 of the way through this process. What this means for investors is that, for the moment, these registered accounts can accept deposits in USD and clients can trade (and hold) USD equities, however withdrawals from the account will result in a currency conversion back into CAD. We’ll continue to monitor this as more information becomes available.

Price Drops Continuing to Make a Splash

While Canadian discount brokerages commission pricing still has plenty of room to fall when compared to brokerages in the US (such as Robinhood which doesn’t charge any commissions on a trade) the recent moves by bank-owned online brokerages are continuing to make waves with investors. This article from the Toronto Star is a perfect example of the spotlight now shining on pricing. For those considering the new lower commission costs, it is also important to consider any other costs that still may be associated with the account, such as inactivity fees or minimum balance fees. The second of our two-part series (released this week) looks at the commission-price drops at bank-owned online brokerages and in particular at some of these fees.

Know Your Options

One of the new ‘battlegrounds’ for the deep discount brokerages is in options trading. Recently Virtual Brokers released a new promotion that offers free data for their PowerTrader Pro platform for clients who make one or more complex options trades. Earlier today, Questrade released a free guide to options trading which explains some of the complex trade types that can be placed using the Questrade IQ platform. To download a free copy of the guide, click here.

Another interesting story readers may be interested in tracking is a special by CBC Marketplace this Friday (tonight). This story is the result of a mystery shop exercise at Canadian financial firms (including Canada’s big 5 banks) to see what kind of financial advice was being dished out by the firms’ “financial advisers”.

From the Forums

This week’s forum threads capture the outage at TD described above (and the lessons other investors can draw from this situation) as well as an instructive post on how to convert from USD to CAD using Interactive Brokers.

Murphy’s Law

The forums were alight with users of TD Direct Investing not being able to access their accounts. Check out the following posts on Canadian Money Forum and Red Flag Deals as a sobering reminder that as DIY investors there’s a lot more that can go wrong when trading online.

Crossing the Border

For those curious about using their brokerage to convert between USD and CAD, there have been a number of different approaches. This post on RedFlagDeals’ forum provides a concise ‘how to’ for users of Interactive Brokers.

That does it for this February-ending edition of the weekly roundup. Have a safe and warm weekend!

Posted on February 21, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – February 21, 2014

This past week in the Canadian discount brokerage space seemed about as quiet as the US Women’s Olympic hockey team dressing room after that most spectacular win by Team Canada. The silence on the brokerage front, however, is likely indicative of the planning and ‘strategizing’ by marketing and product teams as the battle for brokerage supremacy heats up. In fact, there are whispers around the discount brokerage industry are that there will be additional deals and price drops in the very near future. For the present though, this roundup will take a look at the next brokerage to join the sub-$10 per trade club , the results of an interesting survey about RRSPs as well as a selection of interesting conversations from across the Canadian investor forums.

If a Commission Drops in the Forest…

This past week National Bank Direct Brokerage became the fourth bank-owned brokerage to drop its standard commission fee to under $10. Interestingly the response on either forums or social media didn’t generate much interest. On our end, however, we did ensure that NBDB’s pricing drop did not go unnoticed. Today we launched part 1 of the two part series looking at all of the bank-owned online brokerages’ recent commission lowering moves, including National Bank’s.

Stash First, Save Later

In addition to their commission announcement, National Bank Direct Brokerage also announced the results of a survey that looked at opinions of Quebec internet users 18 and older regarding RRSP contributions. The findings of the study were interesting in terms of the amounts that individuals disclosed they thought would need as a minimum in order to contribute to their RRSPs. According to the survey the average contribution amount turned out to be $2750 suggesting that individuals may have a preference for contributing lump-sum amounts versus making smaller, regular contributions.

Coincidentally, with the latest commission price drops, at least two bank-owned brokerages (TD Direct Investing and RBC Direct Investing) have made pre-authorized contributions to an account or having an RRSP account part of the criteria that can help those with modest or small portfolio balances not incur quarterly maintenance/account fees.

Around the Forums

As we edge closer to the RRSP contribution deadline for 2013, the conversations around the forums are definitely starting to reflect both tax and RRSP type of questions. Of course, some folks are already anticipating what to do with their income tax refunds by getting prepared to invest and so online trading account questions are also popping up. This week there’s a couple of interesting posts that reflect some of the nitty gritty that DIY investors typically encounter when investing online.

For Whom the Border Tolls

The Olympic spirit may be all about bringing different countries together, but investing in stocks from different countries can cause all kinds of ‘quirky’ issues. The following post from Canadian Money Forum details the woes of holding American Depository Receipts (ADRs) (i.e. shares in foreign company) and the coordination of dividends that come from them.

A Taxing Problem

In the following post, a forum user has to figure out what to do with all the money they’ve made in a margin account. Oh, it sounds like a tough life. For investors, however, when things do go the right way there are important tax considerations that fellow forum members provide some perspective on. Of course, nothing beats the advice of a qualified accounting professional in these cases.

That wraps things up for this week. The Olympics are coming to an end next week and it looks like Canada’s done a smashing job. Congratulations to all of the Canadian athletes and good luck to the men’s hockey team as they face-off against the Swedes. Also, February is officially coming to an end next week so be sure to check the deals and promos section to see which deals are also going to wrap up. Have a great weekend and #GoCanadaGo!

Posted on February 21, 2014 by user — Leave a comment

Ten is the New Thirty: A Review of Price Drops at Canadian Bank-Owned Online Brokerages – Part 1

For Canadian discount brokerages, 2014 has already been an eventful year. It has now been just over a month since RBC Direct Investing announced the lowering of their standard trading commissions and in that time, the predicted response from several other bank-owned online brokerages has materialized. Since the RBC announcement, BMO InvestorLine, TD Direct Investing and National Bank Direct Brokerage have all lowered their standard equity commission pricing with more bank-owned brokerages expected to follow suit.

Going forward, there are two important reasons why do-it-yourself investors will have to pay extra attention to the online trading account plans being pitched to them. First, in the short term, expect pricing to continue to change as more brokerages adjust to the new ‘standard’ fee at below $10 per trade. Second, discount brokerages will be marketing even harder to communicate what makes one brand better than another. For consumers, the upside is that they can likely expect more promotions, however the downside is that they will likely have to untangle a lot of clever marketing and read the fine print much more closely on any offers presented by Canadian discount brokerages.

In this two part series, we take a look at the bank-owned discount brokerages and the recent shift in standard commission pricing to uncover what this means for self-directed investors and for the discount brokerage industry in Canada.

Catch a Falling Star*

The priority self-directed investors place on commission pricing is an open secret amongst discount brokerages big and small. As a case in point, several of the discount brokerage rankings that use cost as part of their measurement framework typically weight cost among their top categories. Considering the competitive dynamics of the industry, however, it is understandable why price is a popular battleground between competing firms. While having a major bank-owned brokerage such as RBC Direct Investing lower its pricing, there may have been other forces at play too. The presence of deep-discount brokerages such as Questrade and Virtual Brokers may have also helped to accelerate the pricing cuts. Whatever the case, it is clear that consumers were growing impatient with prices and other providers were able to gain traction with that dissatisfaction.

Judging by the consumer reactions online to the commission price cut as well as the speed with which other major bank-owned online brokerages have followed RBC’s move, two things are clear: competition amongst discount brokerages remains high and pricing matters to consumers.

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Posted on February 1, 2014January 30, 2021 by user — Leave a comment

Discount Brokerage Deals & Promotions – February 2014

*Updated Feb. 27th 2014*

Now that February is here, the RSP contribution deadline (March 3^rd) is in the crosshairs of many investors. Canadian discount brokerages have already stepped up the deals & promotions activities with last month seeing over 20 deals offered. The most active of all the discount brokerages was Questrade followed by BMO InvestorLine however RBC Direct Investing’s commission lowering announcement also had brokerages scrambling to provide offers to get investors’ attention.

With 7 of the deals set to expire within the first few days of March, the sprint to the RSP deadline is on. Given the combination of news from RBC and the scramble for new client assets at this time of year, February should hold its own fair share of surprises. Be sure to check back regularly for updates or follow @SparxTrading on Twitter for announcements of deal/promo updates. So, without further ado, here’s the discount broker deal rundown at the beginning of February.

Expired Deals:

Most of the deals that expired in January did so at the beginning of the month. These deals included:

Questrade’s Boxing Day Promo
RBC Direct Investing’s 25 Free Trade offer
BMO InvestorLine’s 250 free trade promo

Interestingly, a deal that was a bit of a ‘flash’ offer from CIBC Investor’s Edge that started and finished in January. They were offering $400 + 50 free trades for $50,000 deposits and $200 + 25 free trades for $25,000 deposits. It has been quite some time since CIBC has offered a special however given the changes going on in the marketplace, it may not be long until we hear from them again.

Extended Deals:

There was one deal that had its deadline extended out: Scotia iTrade’s refer-a-friend offer. This promotion now expires at the end of March.

New Deals:

Updated Feb. 27/14: HSBC InvestDirect has launched a promotion for new and existing clients to celebrate their performance on Dalbar’s direct brokerage service evaluation. The promotion offers clients 30 days of unlimited commission-free equity trading of North American and international equities (including ETFs). Commissions generated from this 30 day period will be refunded within 90 days. The terms and conditions are very manageable to get through and there is a well prepared FAQ document that explains how the deal works. This promotion is set to run until March 31/2014. See table below for more info.

Technically this is the section for ‘new deals’ however Scotia iTrade’s 100 free trade + Flight Desk offer has been substantially modified to warrant placing it in the ‘new’ section. It appears that Scotia iTrade has reduced the deposit amount required to qualify for this deal from $25,000 to $15,000 and has extended the deadline from the end of March until the end of June. For those considering the deal, be sure to note the change in promo code also.

Discount Brokerage Deals

Brief Description	Minimum Deposit Amount	Commission/Cash Offer Type	Time Limit to Use Commission/Cash Offer	Details Link	Deadline
A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform.	n/a	Discounted Commission Rates	none	For more details click here	none
Open a new account at HSBC Invest Direct by March 31st, 2014 and receive 30 calendar days of free equity (including ETF) trading of North American and International equities. This offer is open to new and existing HSBC InvestDirect clients. Be sure to read the terms and conditions and the FAQs for more details.	$0	Unlimited equity trades (commissions to be rebated within 90d)	30 days	HSBC Dalbar Award Offer Terms & Conditions. For FAQ information, click here	March 31, 2014
Open a new account with RBC Direct Investing before March 3, 2014 and they will offer 20 commission free trades that are good for use for up to 90 days. Use promo code: 20W17 when opening the account. Be sure to read the offer page and the terms and conditions page for full information.	$0	20 free trades (equity & etf)	90 days	For the offer page, click here and for the terms and conditions, click here	March 3, 2014
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	none	none	none
Open an account with Virtual Brokers with a deposit at least $1,000 and Virtual Brokers will offer 25 commission free trades which can be used for up to 1 year. Use promo code “25FTNE” when signing up. This offer is open to new clients only. Be sure to read the terms and conditions for full details on this offer.	$1,000	25 commission-free trades	365 days	25 free trades offer	March 31, 2014
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account.	$1,000	$50 commission credit (friend) $100 commission credit (referrer bonus)	60 days	Refer a friend	none
Open a new account (TFSA, Margin or RRSP) by March 1 2014 A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code QT100 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.	A)$1,000 B)$10,000	A)10 free trades B)100 free trades	60 days	100 commission-free trades	March 1, 2014
Open a new TFSA, margin or registered account with Questrade and receive either A) 31 days B) 62 days or C) 90 days of unlimited commission-free stock & options trades. Use promo code UNLIMITEDW14 when signing up. Be sure to read the terms and conditions for more information.	A)$1,000 B)$25,000 C)$50,000	Unlimited commission-free trades during associated period.	A) 31 days B) 62 days C) 90 days	Questrade Unlimited Trade Promo	March 3, 2014
If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link.	A)$10,000 B)$50,000+	A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50)	60 days	Refer A Friend to Scotia iTrade	March 31, 2014
Deposit $5,000 into an RSP and $5,000 into either a cash or TFSA account and Credential Direct will waive the $50 administration fee for the RSP account. Be sure to contact their customer service to clarify the exact terms & conditions.	$10,000 ($5000 into RSP + $5000 into TFSA/Cash account)	$50 admin fee waived	none	5+5 Promotion	March 3, 2014
Open a new account with Scotia iTrade and fund it with at least $15,000, and you can receive 100 commission-free trades, 60 days of FlightDesk and be entered into a contest for a trip to the Stanley Cup Finals or one of 5 runner-up prizes of iPad Air (64gb). Use Promo code RS13-SCE when opening the account. Existing clients must call customer service to qualify for contest entry. There are lots of terms, conditions, and rules/regulations so be sure to read them for more details.	$15,000	100 free trades ($999 max value @ 9.99 commission rate)	60 days	Stake Your Claim to the Stanley Cup Promotion	March 24, 2014
Transfer $15,000 from another institution into an HSBC InvestDirect account and receive 5 commission-free equity trades. This deal also offers a transfer-fee rebate of up to $150 per account transferred.	$15,000	5 commission-free equity trades	Trades valid for use until May 31, 2014	HSBC InvestDirect Transfer Fee Promo	February 28, 2014
Open a new account before March 31, 2014 with at least a)$20,000 or b)$100,000 and National Bank Direct Brokerage will offer up to a)$500 or b)$1000 in commission fee credits. Use the promo code “CASHBACK2014” when signing up to qualify for this offer. Be sure to read the terms and conditions for this offer especially the refund dates for commission credits.	A)$20,000 B)$100,000	A)$500 commission credit B)$1000 commission credit	90 days	Invest and get cash back offer	March 31, 2014
Open and fund a new Scotia iTRADE account with at least $25,000 before March 31, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions.	$15,000	100 commission-free trades ($999 value @ $9.99 commission rate)	60 days	Scotia iTrade 100 free trades + FlightDesk	June 30, 2014
Open and fund a new account at CIBC Investor’s Edge with either A)$25,000 or B)$50,000 and receive either A)$200 + 25 free equity trades or B)$400 + 50 free equity trades. This is an in-branch promotion so contact either customer service or a branch for specific terms and conditions.	A)$25,000 B)$50,000	A)$200 + 25 commission-free equity trades B)$400 + 50 commission-free equity trades	1 year	Must visit branch to qualify	February 1, 2014
Open and fund a new RSP or TFSA account with BMO InvestorLine with either A)$25,000 or B)$50,000 and they will pay either A)$100 or B)$250 cash back. The promo code for the $100 cash back is “SELECTR100” and for the $250 cash back offer is “SELECTR250”. Be sure to read the terms & conditions for more information.	A)$25,000 B)$50,000	A)$100 B)$250	Payout occurs after 6 months	Registered Account Cross Sell Campaign	March 31, 2014
Open and fund a new Cash, Margin, or RSP account with BMO InvestorLine with $25,000 or more and receive $88 cash back. The promo code for the $88 cash back offer is LUNAR2014. Be sure to read the terms & conditions for more information.	$25,000	$88	Payout occurs after 3 months	2014 Lunar New Year Promotion	February 22, 2014
Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$50,000	$300 commission credit	6 months	Disnat $300 Commission Credit Promo	March 31, 2014
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.	A) $50,000 – $249,000 B) $250,000+	A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100	Payout occurs after 60 days (subject to conditions).	Refer A Friend Terms & Conditions	October 31, 2014
[Main offer]Open a new account or deposit new funds of $100,00 or more and you can be eligible for cash rebates of $250 and 250 commission-free trades (Promo code: RSP250). [Bonus Offer] If you open a new account or fund another account you could also be eligible for an additional $50 and 50 commission-free trades (Promo code ADD50). Be sure to read the full details & terms of this offer.	$100,000 (main offer) $5000 (bonus offer)	[main offer] $250 cash back + 250 commission-free trades (max value $2500) [Bonus offer] $50 + 50 commission-free trades	90 days	$300 + 300 trade offer	March 10, 2014
Open a new account or transfer new assets of $100,000 or more and choose between receiving either a)A 16GB iPad Mini or B)$250 cash back. Be sure to choose the appropriate code (IPADMINIW13 for the iPad Mini and CASH250W13 for the cash back offer) for each offer. There are several important conditions so be sure to read the terms and conditions for this offer.	$100,000	A) iPad Mini (16 GB) [~$270-320 value] B) $250 Cash	Payout/iPad delivery occurs after 30 days.	iPad Mini or $250 Cash Back	March 1, 2014

Transfer Fee Deals

Brief Description	Maximum Transfer Fee Coverage Amount	Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
Transfer in $15,000 or more into an HSBC InvestDirect account from another institution, and HSBC will cover up to $150 of transfer fees per funded account.	$150	$15,000	HSBC InvestDirect Transfer Fee Promo	February 28, 2014
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees	$135	$15,000	Transfer Fee Rebate Details	none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	none
Virtual Brokers will cover transfer fees from your transferring institution to a maximum of $150 per account. This offer is only applicable to accounts opened with at least $25,000 in equity before March 31, 2014	$150	$25,000	Transfer Fee Promo	March 31, 2014
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees	$135	$25,000	Transfer Fee Rebate	none
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.	$125	$25,000	Transfer Fee Promo	none
Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$150	$50,000	Disnat $300 Commission Credit Promo	March 31, 2014

Posted on January 31, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – January 31st, 2014

As January comes to an end, looking back on all of the deals and announcements from discount brokerages, it seems like that there was way more drama amongst the brokerages than even Justin Bieber could muster up. And if this past week is any indication of what’s ahead, February will see discount brokerages pushing to make headlines of their own.

Even though January was coming to an end, the Chinese New Year was just beginning and with it came deal announcements from two bank-owned brokerages as well as a dysfunctional relationship themed commercial just in time for Valentine’s Day. Online brokerages were also in the spotlight for other reasons too as a pair of articles on trading traps and practice accounts came across our radar. Finally, with all the deals now flying around a great forum post gives some perspective on how many free trades are enough.

Giddy Up

BMO InvestorLine kicked off the year of the horse with the launch of the traditional Chinese version of its website as well as with a cash-back promotion for $88. Interestingly, BMO is also offering a deal with a slightly better payout of $100 alongside this promotion which makes it a bit of a tough call for investors who have to decide between being richer or potentially being lucky. For full deals info, check out the discount brokerage promotions section here.

Caught in a Bad Romance

Also, with Valentine’s Day around the corner, it looks like BMO InvestorLine is pulling out all the stops with a relationship-themed video about choosing an online broker. We spotted this video (see below) posted on Vimeo by what looks to be the agency associated with the commercial. While having more than one brokerage is common for many investors, it’s an interesting to see the already intense marketing battle for brokerage clients heat up and move to video.

BMO InvestorLine – “A BMO InvestorLine Love Story”

Love for a Limited Time

Earlier this week, CIBC Investor’s Edge also ran a promotion alongside their Client Appreciation Day (Jan. 30^th) in which they offered a very limited time offer of $400 for $50,000 deposits or $200 for $25,000 deposits. Those wanting to access the deal for the online brokerage had to go into a CIBC branch to sign up.

Some Strings Attached

A pair of interesting articles for DIY investors crossed our radar this past week. The first one from Yahoo Finance was about the traps that investors can get lured into by ‘low fee’ brokerages, especially in the context of TFSA accounts. While there were some important points about avoiding over trading, another key point highlighted that DIY investors should decide what features or services are most important to their needs before deciding on commission price alone.

Another article from the Financial Post also geared towards self-directed investors had to do with practice trading accounts. One of the central messages of the article is that practice accounts are better equipped to train investors on order entry rather than becoming savvy investors. While somewhat true, there is definite value in being able to test and develop one’s discipline levels in a simulated environment rather than with actual cash. As the famous investment saying goes, “if you don’t know what kind of investor you are, the stock market is an expensive place to find out.”

From the Forums

Champagne Problems

Whether or not free trades are an incentive for those opening an online brokerage account depends on what kind of investor you’re talking about. In this forum post from Canadian Money Forum, it is interesting to see that in spite of having 60 commission-free trades, one investor couldn’t really come up with trade ideas to use them on before the trade offer expired. This highlights that sometimes how long a ‘free trade’ is available for might be more valuable than how many are offered.

That does it for this week’s roundup. It will certainly be an exciting weekend for those keen on catching the Super Bowl. For a fun read on picking Super Bowl champs using investing strategies, check out this link. Let’s see if the Seahawks can buck this trend. Have a great weekend!

Posted on January 17, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – January 17, 2014

Staying on top of all of the discount brokerage action going on this January feels a bit like chasing either Russell Wilson or Colin Kaepernick around the field. The competition between these two elite quarterbacks pales in comparison, however, to that of Canadian brokerages.

This past week saw a game-changing commission drop announcement by a major bank-owned online brokerage that has probably got the other brokerages scrambling. Against the backdrop of that news, there were still yet more deals being announced and the investor forums were ablaze with cheers and jeers on what it all means. Let’s kickoff this week’s roundup with the biggest news from RBC.

RBC Direct Investing Drops Commission Pricing

It was tough to measure what dropped further this week: the prices for commissions at RBC Direct Investing or the jaws of their competitors. RBC lowered the boom this week with their announcement that their standard commission rate is now $9.95 flat for all clients. The reactions were swift across social media and on forums as to the gravity of this announcement and what it means for investors as well as the discount broker competitors. While most of the reactions were positive, there were reactions from some individuals that felt that customer service wait times would be bogged down by the flood of new clients.

View the story “RBC Direct Investing Lowers Commission Fees” on Storify

How things play out is only something we can wait and watch however to put it into perspective, the price drop from ~$29 down to $9.95 puts RBC Direct Investing’s commission pricing in line with that of the lowest cost discount brokerages – Questrade and Virtual Brokers. The fact that they’re offering $9.95 flat means that in some instances, RBC may be cheaper because they won’t be passing through ECN fees. Of course, in addition to lowering the price, they’ve also simplified it. Gone are the days of elaborate calculations as to what the commission charge will be for a stock under a certain price and of a certain order size.

In a nutshell, while investors stand to benefit from the move and for RBC Direct Investing’s competitors, especially the lower cost brokerages, are going to have to get very creative and/or very efficient. Introducing steep inactivity fees or raising fees is no longer a viable strategy going forward. For RBC’s larger bank-owned peers, if mortgage-rates were any indicator, the lowering/simplifying of standard commission fees is now just a matter of time.

January is Deal-icious for Discount Brokerage Accounts

Staying on the RBC Direct Investing theme, the cherry on the sundae was the announcement that RBC Direct Investing is also offering up 20 commission-free trades with a new sign up. These trades can be used for up to 90 days after account funding. Co-incidentally, HSBC InvestDirect also quietly put a deal back on their homepage. In HSBC’s case, for accounts that switch over to them, InvestDirect is willing to cover up to $150 of transfer fees and offer 5 commission-free equity trades. Click the following link to learn more about the latest discount brokerage deals & promos. Both RBC and HSBC were recipients of top honors in the Dalbar direct brokerage client service evaluation, the results of which were announced last week.

From the Forums

Canadian investor forums were ablaze with the move by RBC to lower their commissions. As the time draws closer to the RSP deadline for this year, the interest level and topics of discussion will start to pick up as they did this week.

The Wave

There were more than a few threads that were started in response to the RBC Direct Investing commission announcement. Here are two of the more popular ones from Canadian Money Forum and from RedFlagDeals.

Going Solo

In this post from Canadian Money Forum, forum user ‘intricated’ contemplates how to make the jump from having a financial advisor to going it alone. Find out some of the hazards and experiences other users flagged as being important when deciding to become a DIY investor.

Thanks for going the distance on this one. Have a great weekend and of course, go Seahawks.

Posted on January 10, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – January 10, 2014

This week it was bone-chillingly cold everywhere in Canada except for the discount broker deal space (and maybe Vancouver). Several big promotions heated up the deals space this week in what is likely a sign of the fierce competition for self-directed investors’ assets to come this RSP deadline season. Just in time for all that were a couple of big announcements too. One from a discount broker lowering their commission fees and another from a discount brokerage customer service evaluation. Closing out the roundup, we’ll take a look at the investor forums for some valuable lessons for those venturing into wild west of online trading.

Discount Brokerage Promotion Bonanza

As many readers may know, the discount brokerage deals section is one of the most popular places for investors looking for an online trading account to review. This month however, there has been an unusual spike in activity, including from some usually dormant brokerages (such as Qtrade & Credential Direct for example).

On the whole, it looks like it’s a bench clearing deal brawl with BMO InvestorLine, Credential Direct, Qtrade and Scotia iTrade all launching some kind of contest, promotion or deal. Before the hockey tickets & cash settle, there are some insider sources that have mentioned some very big discount brokerage deals still to come.

The Gloves are Off

In a related vein, this past week Questrade dropped the gloves (and their commission fees) in the competition to offer Canada’s lowest trading commissions. Following Virtual Brokers’ lead a few months ago, Questrade too has now lowered their minimum commission on a trade down to a penny (on their active trader plan).

There is likely more to come from these two brokerages as RSP season heats up however the title of having the lowest commission in Canada is now one that Virtual Brokers will have to share.

Service with a Smile

Now that January is here, it is time for Dalbar’s online brokerage customer service award announcement. This year things are a bit different with two brokerages being named as providing, in Dalbar’s assessment, leading customer service.

The two brokerages coming out on top of the field were HSBC InvestDirect (who earned the honor the previous year) and RBC Direct Investing. Last year’s race was a close one so it is not a big surprise that these two brokerages find themselves atop the field for best customer service this year.

From the Forums:

With more people deciding to spend their time indoors, more than a few of them found their way into the investment forums. As with the weather, winter can provide its own investing lesson: bundling up can save you a bundle. Here are this week’s cautionary winter tales from the forums.

Limited Exposure

In this post, one user finds out the hard way about the difference between market orders and limit orders. Of course, with many investors it’s learning by trial and error however here’s how the community stepped in to clarify when and how order types matter.

Getting out of the Driveway

Even with many of the advances in opening up discount brokerage accounts, there is still a natural drag of transfer time and reporting that seems misplaced in this world of instant everything. In this post from the RedFlagDeals investing forum, a user getting started with Interactive Brokers gets a little helpful informational nudge from fellow forum users.

That does it for this week’s roundup. Be sure to check out the deals section regularly as this month is probably going to continue to see more deals announced. Have a great weekend!

Posted on January 1, 2014January 30, 2021 by user — Leave a comment

Discount Brokerage Deals & Promotions – January 2014

[Updated: Jan 31/2014] *While we thought the beginning of January would be a busy time for deals, we didn’t know it would be THIS crazy. Since the beginning of the month there have been quite a few big announcements. Read below for more details* Welcome to the first discount brokerage deals post of 2014! 2013 was a great year for self-directed investors looking for deals & promotions when opening an online trading account. This past year the promos pitched from Canadian discount brokerages included:

commission rebates
cash back offers
referral bonuses and
other incentives (such as AirMiles and iPad minis)

If 2013 was any indication, this year’s competition for new accounts will be even more fierce amongst discount brokerages. Coming into 2014 one discount brokerage (Questrade) actually went so far as to launch a week-long promotion on Boxing Day. So, while several discount brokerages have extended the deadlines on existing offers well into 2014, they may need to adjust that strategy if/when more aggressive offers start showing up. In terms of timing, with RRSP season right around the corner, there is a good chance DIY investors are going to see some interesting offers surface in the near future. And on that note, let’s launch into the first deals post for 2014.

Expired Deals

The end of December took with it a couple of discount brokerage deals. First, the TD Direct Investing offer of 50 free trades (which expired on Dec. 20th) and also somewhat mysteriously, the HSBC InvestDirect 50 trade offer. Why the mystery? Just before the end of the month HSBC InvestDirect had extended the deadline for their offer into March of 2014 however at the writing of this post (on Jan. 1) the offer has been removed from their website. We’ll stay on top of this one to see if the offer does come back in 2014.

Pending Deals

[Update: Jan 2/2014 – Scotia iTrade has now updated terms and conditions with a new expiry date on the refer-a-friend offer. This deal has now been moved to the extended deals section] The Scotia iTrade refer-a-friend offer is back in this section at the time of writing (Jan. 1). The Scotia iTrade website shows the offer available but the terms and conditions are not yet updated beyond Dec. 2013. We’ll check back to see if they extend this offer again and to what date.

Extended Deals

The trend towards extending deals continues with two discount brokerages. First, Disnat has extended the deadline on their $300 commission credit offer out until the end of March 2014. Second, BMO InvestorLine has extended their Refer-a-Friend promotion offer well out into next year with the new deadline for this offer being October of 2014. [Updated: Jan 2/2014 – Scotia iTrade’s refer-a-friend deal has now been extended to January 31, 2014]

New Deals

Updated: Jan 31/2014 Even though this is the last day of the January, there was another deal that caught our attention from BMO InvestorLine. The offer is in celebration of the launch of the traditional Chinese version of the BMO InvestorLine website and also in celebration of Chinese New Year. For this promotion, those who deposit a minimum of $25,000 may qualify for $88 cash back. See the table below for further details.

Updated: Jan 28/2014 CIBC Investor’s Edge is having a ‘flash promotion’ of sorts on top of their ‘customer appreciation’ program. From January 26th until February 1st CIBC Investor’s Edge is offering new clients either a) $400 and 50 equity trades for a $50,000 deposit or b)$200 cash back and 25 equity trades. The commission-free trades are good for up to one year and they will not be charged up front (so there is no waiting for a rebate). This is an ‘in branch’ promotion that lasts until Feb 1st so unfortunately detailed terms and conditions are not available online.

Updated: Jan 27/2014 As January draws to a close, Virtual Brokers has jumped into the deal pool by offering a 25 free trade offer for new clients that are good for use for up to one year. The minimum deposit to be eligible for this offer is $1,000. According to the terms and conditions, the rebates for commission free trades takes place within 8 weeks of the last trade being used so the rebate depends on usage of the ‘free’ trades. Be sure to read the terms and conditions (link below) for full details.

Updated: Jan 21/2014 Another deal spotted this January is the commission credit offer by National Bank Direct Brokerage (NBDB). NBDB is offering $500 in commission credits for new accounts opened with $20,000 or more, and a $1,000 credit for account deposits of $100,000. Reimbursement takes place after 90 days according to the schedule laid out in their terms & conditions.

Updated: Jan 14/2014 Even though there are more deals to come for January, the offer announced today by RBC Direct Investing comes in conjunction with lowered commission-fee announcement and is most certainly going to make waves with other discount brokerages as well as with investors. In terms of the deal, RBC Direct Investing is offering 20 commission-free trades (on equities or ETFs) that are good for up to 90 days.

Updated: Jan 13/2014 Questrade has reintroduced it’s “unlimited” trading offers once again. With this deal, new or existing clients can get 1, 2 or 3 months of commission-free trading (depending on the deposit) when they open a new TFSA, registered or margin account.

Updated: Jan 11/2014 – A pair of deals/offers also released this week: Update 1: Credential Direct has an offer to waive their $50 RSP administration fee for those who deposit $5000 into their RSP account as well as $5000 into a TFSA or cash account. According to their fee sheet, Credential Direct charges an administration fee of $50 per year on RSPs with balances less than $15,000. Update 2: BMO InvestorLine has announced yet another offer this month. They are offering cash back for those new or existing clients who open an RSP and/or TFSA accounts. For deposits of $25,000 or more, the cash back reward is $100 and for deposits of $50,000 or more, the cash back reward is $250. This deal is not listed on the front end of the website however a link is provided to the info below.

Updated: Jan 8/2014 – There have been a number of deals/promotions announced by discount brokerages over the past 2 days.

Update 1: First up was an expected update from BMO InvestorLine. Their current offer (which expires in March 10 2014) is a bit of a twist on their previous $250/250 free trade offer. In the current promotion, the total cash rebate can be as high as $300 and 300 commission-free trades offered (up to a total maximum of $3000 in commission fees). The terms and conditions are incredibly long (~1650 words before examples) so be prepared for some reading to thoroughly understand the deal. The examples are nicely laid out so that helps in understanding how this offer works.

Update 2: Qtrade Financial has also jumped into the promotional pool by offering a contest for new deposits. Qtrade is holding a draw for a grand prize of $10,000 open to new and existing clients who deposit at least $10,000 in cash or securities into an account. Every $10,000 gets the depositor 1 entry into the draw. There are also monthly draws for a $1,000 Visa gift card in February, March & April. The terms and conditions are also a bit lengthy but explain how it works well. The contest runs from January 1, 2014 to March 31, 2014. As this is purely a contest, it is not included in the table below however click here for the Qtrade Financial Best of Canada Giveaway contest.

Update 3: Scotia iTrade has launched a new promotion/contest by offering 100 commission-free trades, 60 days of their FlightDesk and chances to win tickets to the Stanley Cup finals and secondary prizes of 16GB Apple iPad Airs. For new accounts with at least $15,000, individuals will be eligible to receive the free trades and ballots that will be entered into a draw for their grand prize as well as for the secondary prizes. As an incentive to gain additional deposits, Scotia iTrade is offering 5 ballots for every $5,000 on top of the original deposit amount that comes from a non-Scotia iTrade account. The good news for those interested in the contest is that there is no purchase necessary in order to enter – an entry into the contest can be made from the Scotia iTrade website. The terms & conditions along with the rules & regulations of this contest are over 2900 words (~8 pages) so there is quite a bit of material to get through to fully understand the offer. ]

Updated: Jan 2/2014 – Virtual Brokers has added a transfer fee deal in which they will cover up to $150 of the cost of transferring an account over to them (minimum deposit of $25,000)] There aren’t any new deals to report on as of Jan. 1st, however there are two deals that expire within the first week of January which means there may be some new deals to announce shortly. The deal of particular interest is BMO InvestorLine’s $250 cash back & 2 month commission-free trade offer which expires January 6th. As always if there are any new deals you hear of or if there’s any that have been missed, drop us a note here or in the comments section.

Discount Brokerage Deals

Brief Description	Minimum Deposit Amount	Commission/Cash Offer Type	Time Limit to Use Commission/Cash Offer	Details Link	Deadline
A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform.	n/a	Discounted Commission Rates	none	For more details click here	none
Open a new account with RBC Direct Investing before March 3, 2014 and they will offer 20 commission free trades that are good for use for up to 90 days. Use promo code: 20W17 when opening the account. Be sure to read the offer page and the terms and conditions page for full information.	$0	20 free trades (equity & etf)	90 days	For the offer page, click here and for the terms and conditions, click here	March 3, 2014
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	none	none	none
Open an account with Virtual Brokers with a deposit at least $1,000 and Virtual Brokers will offer 25 commission free trades which can be used for up to 1 year. Use promo code “25FTNE” when signing up. This offer is open to new clients only. Be sure to read the terms and conditions for full details on this offer.	$1,000	25 commission-free trades	365 days	25 free trades offer	March 31, 2014
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account.	$1,000	$50 commission credit (friend) $100 commission credit (referrer bonus)	60 days	Refer a friend	none
Open a new account (TFSA, Margin or RRSP) by March 1 2014 A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code QT100 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.	A)$1,000 B)$10,000	A)10 free trades B)100 free trades	60 days	100 commission-free trades	March 1, 2014
Open a new TFSA, margin or registered account with Questrade and receive either A) 31 days B) 62 days or C) 90 days of unlimited commission-free stock & options trades. Use promo code UNLIMITEDW14 when signing up. Be sure to read the terms and conditions for more information.	A)$1,000 B)$25,000 C)$50,000	Unlimited commission-free trades during associated period.	A) 31 days B) 62 days C) 90 days	Questrade Unlimited Trade Promo	March 3, 2014
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	January 31, 2014
Deposit $5,000 into an RSP and $5,000 into either a cash or TFSA account and Credential Direct will waive the $50 administration fee for the RSP account. Be sure to contact their customer service to clarify the exact terms & conditions.	$10,000 ($5000 into RSP + $5000 into TFSA/Cash account)	$50 admin fee waived	none	5+5 Promotion	March 3, 2014
Open a new account with Scotia iTrade and fund it with at least $15,000, and you can receive 100 commission-free trades, 60 days of FlightDesk and be entered into a contest for a trip to the Stanley Cup Finals or one of 5 runner-up prizes of iPad Air (64gb). Use Promo code RS13-SCE when opening the account. Existing clients must call customer service to qualify for contest entry. There are lots of terms, conditions, and rules/regulations so be sure to read them for more details.	$15,000	100 free trades ($999 max value @ 9.99 commission rate)	60 days	Stake Your Claim to the Stanley Cup Promotion	March 24, 2014
Transfer $15,000 from another institution into an HSBC InvestDirect account and receive 5 commission-free equity trades. This deal also offers a transfer-fee rebate of up to $150 per account transferred.	$15,000	5 commission-free equity trades	Trades valid for use until May 31, 2014	HSBC InvestDirect Transfer Fee Promo	February 28, 2014
Open a new account before March 31, 2014 with at least a)$20,000 or b)$100,000 and National Bank Direct Brokerage will offer up to a)$500 or b)$1000 in commission fee credits. Use the promo code “CASHBACK2014” when signing up to qualify for this offer. Be sure to read the terms and conditions for this offer especially the refund dates for commission credits.	A)$20,000 B)$100,000	A)$500 commission credit B)$1000 commission credit	90 days	Invest and get cash back offer	March 31, 2014
Open and fund a new Scotia iTRADE account with at least $25,000 before March 31, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code 100FT. See details link for further terms and conditions.	$25,000	100 commission-free trades ($999 value @ $9.99 commission rate)	60 days	Scotia iTrade 100 free trades + FlightDesk	March 31, 2014
Open and fund a new account at CIBC Investor’s Edge with either A)$25,000 or B)$50,000 and receive either A)$200 + 25 free equity trades or B)$400 + 50 free equity trades. This is an in-branch promotion so contact either customer service or a branch for specific terms and conditions.	A)$25,000 B)$50,000	A)$200 + 25 commission-free equity trades B)$400 + 50 commission-free equity trades	1 year	Must visit branch to qualify	February 1, 2014
Open and fund a new RSP or TFSA account with BMO InvestorLine with either A)$25,000 or B)$50,000 and they will pay either A)$100 or B)$250 cash back. The promo code for the $100 cash back is “SELECTR100” and for the $250 cash back offer is “SELECTR250”. Be sure to read the terms & conditions for more information.	A)$25,000 B)$50,000	A)$100 B)$250	Payout occurs after 6 months	Registered Account Cross Sell Campaign	March 31, 2014
Open and fund a new Cash, Margin, or RSP account with BMO InvestorLine with $25,000 or more and receive $88 cash back. The promo code for the $88 cash back offer is LUNAR2014. Be sure to read the terms & conditions for more information.	$25,000	$88	Payout occurs after 3 months	2014 Lunar New Year Promotion	February 22, 2014
Expired Open a new account at Questrade by January 2, 2014 and fund it with a minimum of $25,000 to receive 25 commission-free trades which can be used throughout 2014. Use offer code BOXING13 when signing up for the account to qualify. Be sure to read the terms and conditions associated with this offer for more details.	$25,000	25 commission-free trades	End of 2014	Questrade Boxing Day Promo	January 2, 2014
Expired Open and fund a new account with $25,000 or more and you will qualify for 25 free trades. The offer code changed with different visits to the site, so click through the RBC Direct Investing homepage to generate a valid code. There are a number of terms and conditions attached to this offer, be sure to read see the details link.	$25,000	25 commission-free trades (no restriction on commission rate listed)	365 days	25 Free Trades Offer Terms & Conditions ; Link To generate an offer code no longer valid.	none
Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$50,000	$300 commission credit	6 months	Disnat $300 Commission Credit Promo	March 31, 2014
Expired Open a new account or upgrade an existing account with A) $50,000 or more OR B)$100,000 or more and receive either A)250 commission-free mobile-placed trades OR B) 250 commission-free mobile-placed trades + $250 cash back. Use Promo Code: MOBILE when signing up to qualify. NOTE: There are lots of details/important conditions attached to this promotion. Be sure to read the terms and conditions carefully.	A) $50,000 B)$100,000	A) 250 commission free mobile-placed trades B) 250 commission free mobile-placed trades + $250 Cash Back	Payout occurs after 6 months	Free Mobile Trading/Cash Back Offer	January 6, 2014
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.	A) $50,000 – $249,000 B) $250,000+	A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100	Payout occurs after 60 days (subject to conditions).	Refer A Friend Terms & Conditions	October 31, 2014
[Main offer]Open a new account or deposit new funds of $100,00 or more and you can be eligible for cash rebates of $250 and 250 commission-free trades (Promo code: RSP250). [Bonus Offer] If you open a new account or fund another account you could also be eligible for an additional $50 and 50 commission-free trades (Promo code ADD50). Be sure to read the full details & terms of this offer.	$100,000 (main offer) $5000 (bonus offer)	[main offer] $250 cash back + 250 commission-free trades (max value $2500) [Bonus offer] $50 + 50 commission-free trades	90 days	$300 + 300 trade offer	March 10, 2014
Open a new account or transfer new assets of $100,000 or more and choose between receiving either a)A 16GB iPad Mini or B)$250 cash back. Be sure to choose the appropriate code (IPADMINIW13 for the iPad Mini and CASH250W13 for the cash back offer) for each offer. There are several important conditions so be sure to read the terms and conditions for this offer.	$100,000	A) iPad Mini (16 GB) [~$270-320 value] B) $250 Cash	Payout/iPad delivery occurs after 30 days.	iPad Mini or $250 Cash Back	March 1, 2014

Transfer Fee Deals

Brief Description	Maximum Transfer Fee Coverage Amount	Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
Transfer in $15,000 or more into an HSBC InvestDirect account from another institution, and HSBC will cover up to $150 of transfer fees per funded account.	$150	$15,000	HSBC InvestDirect Transfer Fee Promo	February 28, 2014
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees	$135	$15,000	Transfer Fee Rebate Details	none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	none
Virtual Brokers will cover transfer fees from your transferring institution to a maximum of $150 per account. This offer is only applicable to accounts opened with at least $25,000 in equity before March 31, 2014	$150	$25,000	Transfer Fee Promo	March 31, 2014
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees	$135	$25,000	Transfer Fee Rebate	none
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.	$125	$25,000	Transfer Fee Promo	none
Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$150	$50,000	Disnat $300 Commission Credit Promo	March 31, 2014

Posted on December 27, 2013 by user — Leave a comment

Discount Brokerage Weekly Roundup – December 27 2013

Amongst Canadian discount brokerages, it was supposed to be a quiet ride into the end of 2013. Alas, it was not to be. With a Boxing Day promotion launched by one of Canada’s discount brokerages this past week, the competition for Canadian investors officially hit a new high. This bodes well for self-directed investors going into 2014 as both pricing and services can be expected to improve from discount brokerages looking to gain an edge on one another. In the final (and shortened) weekly roundup of 2013, we’ll take a look at this latest disruptive deal as well as some of the interesting chatter from investors around the forums and social media.

Questrade Throws a Jab by Offering up a Boxing Day Promotion

Discount brokerages and the holiday season have historically been a poor mix. Questrade, however, seems to have defied the unofficial tradition amongst discount brokerages to ‘take it easy’ by offering up a Boxing Day promotion. Specifically, Questrade announced on Boxing Day they are offering up 25 commission-free trades to new accounts depositing at least $25,000. Moreover those 25 trades are good for all of 2014. This deal takes aim at a similar offer from RBC Direct Investing, who for a short while, claimed that they were the only discount brokerage offering commission-free trades that lasted a year. Click here to learn more about the Questrade Boxing Day promotion.

From the Forums

While a lot of folks were out comparison shopping the latest TVs and tech toys this past week a handful of folks also were shopping around for discount brokerages. This week, there is a post that pitted broker vs broker that was of particular interest as well as a lesson one investor got away with learning on the cheap.

RBC Direct Investing vs TD Waterhouse (TD Direct Investing)

Up first was this post on Canadian Money Forum which was a lively debate on the strengths and limitations of a couple of bank owned discount brokerages.

Fat Finger Trades

Many active traders have at least one bad ‘fat finger’ trade story and can relate to this post from the Red Flag Deals forum. Although this user managed to get out unscathed, the lesson is an important one for traders to take heed of.

That does it for the discount brokerage weekly roundups for 2013. Have a safe and happy New Year’s and here’s hoping 2014 is a great year in the markets!

Posted on December 20, 2013 by user — Leave a comment

Discount Brokerage Weekly Roundup – December 20, 2013

Here we are just a few days away from Christmas and while it seemed that things would settle down going into the end of the year, the discount brokerage world has been anything but quiet. In this week’s roundup, news of fees dropping from a major Canadian discount brokerage kicks things off. Next, the major story, an online brokerage in the US takes a stab at completely commission free trading. Finally, we round off with a trio of interesting topics for DIY investors courtesy of the Canadian investing forums.

National Bank Direct Brokerage Caps Fees

Earlier this week, one of Canada’s bank-owned discount brokerages, National Bank Direct Brokerage (NBDB), formally announced that they are making it easier for clients to qualify for exemptions to their annual administrative fees. The fee schedule change actually rolled out at the beginning of December, well ahead of the formal announcement.

Under this new structure, it will now be possible to be exempt from this $100 annual fee if clients either: make at least 5 commission-generating trades (either equity, ETF or option trades) between June 1^st & May 31^st or have personal assets of at least $20,000 as of May 31^st. For more information, click here.

Startup Online Broker Robinhood to Offer Free Stock Trading

Yes, that is correct. A bombshell of an announcement came out of the US online brokerage market when startup broker Robinhood revealed that they are going to be offering commission-free stock trading.

While the details as to when the service will roll out and exactly who will be able to use it, the fact that pricing has now hit the ultimate low is cause for concern amongst discount brokerages in the US as well as in Canada. For now though the roll-out plan will be done in stages and in the US only for those states where the service meets regulators’ approval.

Whether or not this startup can succeed where others have stumbled (like Zecco) in offering commission free trading remains to be seen however one of the early investors in the company is Google Ventures, so for the moment they’ve got substantial support to try and roll out the idea. Click for more info or to sign up for the RobinHood account.

Here is a collection of articles that provide some additional information:

From the Forums

This weeks forums were abuzz with year end reflections and prognostications for 2014. Tucked in amongst the year end talking points were a couple of interesting threads on what can go wrong when transferring into/out of a brokerage account, using borrowed funds to invest, and keeping more than one brokerage around.

A Messy Breakup

While not a typical kind of occurrence, this post by one user in the Red Flag Deals forum describes their nightmare-like scenario of what can go wrong when switching trading account providers. Other forum users chime in to provide a more balanced view, however it serves as an important reminder that when moving account holdings between institutions, it is important to stay on top of the transition.

Something Borrowed

In the following post, the forum user ‘inverstmentmentjinja’ pitched the idea of borrowing money from a line of credit to invest. While borrowing to invest is a common strategy (especially on margin), read what the forum users had to say about some of the math used to support the strategy.

The More the Merrier

In this quick post, the user wants to know which other members have decided to have trading accounts at multiple brokers. The practice is actually quite common when retail investors want to either diversify who they have their money with, or want to use features at one broker that aren’t offered at another.

Tip of the Hat

Thanks to the Financial Webring forum readers IG17 and brucecohen for recommending & checking out the discount brokerage deals & promotions section in this post.

Happy Holidays!

That does it for this week. Have a safe and wonderful holiday season and thanks to everyone who’s made 2013 such a fantastic year for SparxTrading.