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Discount Brokerage Deals & Promotions – May 2020

As the saying goes, April showers bring May flowers. After a whirlwind of unexpected changes in the last month, resulting from the global health and economic crises, there appears to be an increase in DIY investor confidence when it comes to stepping back into the markets.

Despite current market volatility, there has been a recent surge in interest and activity from DIY investors. As reported by discount brokerages, trade volumes, account openings, and customer outreach have all increased. In addition, the significant drop in oil prices has prompted even more investors to step out of the darkness to take advantage of the volatility swings.

Even though flowers are blooming all around us – and investor interest has also been flourishing – Canadian discount brokerages have, in contrast, stayed mum about any new promotion activities for May. Perhaps the reason for this is because brokerages are struggling to keep up with the growing call volumes and, for some, subsequent system outages. Or perhaps brokerages are attributing their familiar offerings to another well-known saying: If it ain’t broke, don’t fix it.

Nevertheless, investors who are brave enough to dip their feet into the market waters can scroll on to review the current deals and promotions activity from Canadian discount brokerages this May.

As always, Sparx Trading will add new deal updates as they appear throughout the month, so be sure to check back.

Expired Deals

No expired deals to report at this time.

Extended Deals

No extended deals to report at this time.

New Deals

No new deals to report at this time.


Discount Brokerage Deals

  1. Cash Back/Free Trade/Product Offer Promotions
  2. Referral Promotions
  3. Transfer Fee Promotions
  4. Contests & Other Offers
  5. Digital Advice + Roboadvisor Promotions
  6. Offers for Young Investors

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. 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 December 31, 2020
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2020
BMO InvestorLine Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $250,000; D) $500,000 or E) $1M+, and you may be eligible to receive a cash back reward of up to A) $250; B) $450; C) $800; D) $1,000 or E) $2,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $50,000 B) $100,000 C) $250,000 D) $500,000 E) $1M+ A) $250 B) $450 C) $800 D) $1,000 E) $2,000 Cash back will be deposited week of December 14, 2020 BMO InvestorLine Cash Back Offer Details June 1, 2020

Expired Offers
Last Updated: Apr. 30, 2020 16:20PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 5, 2021

Expired Offers
Last Updated: Apr. 30, 2020 16:44PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $200 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Transfer Fee Promo Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Disnat Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $10,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $10,000 Disnat 1% Commission Credit Promo January 8, 2020
Last Updated: Apr. 30, 2020 16:35PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 20 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions. n/a Hardbacon Free Trade Promo none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none

Expired Offers
Last Updated: Apr. 30, 2020 16:39PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Apr. 30, 2020 16:40PT

Offers for Young Investors

Brokerage Offer Type Eligible Age Range / Client Segment Offer Description Min. Deposit Expiry Date Link
Student Pricing Clients with CIBC Smart™ Account for students $5.95 per trade and zero annual account fees not required None CIBC Student Pricing
Broker@ge 18-30 18-30 years old investors Benefits: * 5 free transactions (Minimum deposit of $1,000 required) * No inactivity fees * No asset minimum to maintain for free registered accounts * Exclusive events * Disnat Mobile App $1,000 None Broker@ge 18-30
Offers for professionals & Students Students in selected fields of study Professionals and students in the below fields can benefit from a reduced pricing structure: * Engineering students * Legal, accounting and business students * Healthcare students * Health sciences students * Nursing students Benefits: * $5.95 commission on equities * $0 commission on ETFs * $0 annual administration fee not required None NBDB Student Pricing
Young investor pricing 18-30 years old investors Benefits: * $7.75 commissions for stock and ETF trades * No account minimums * No quarterly admin fees min. $50 a month through pre-authorized contributions. None Young Investor Pricing
Waiver of account maintenance fee Clients who have RBC Student account, currently or in the past 5 years. The Maintenance Fee ($25 per quarter) is waived, regardless of the account balance. not required None Zero Account Management Fee
Young Investors Offer Clients below 26 years old Low activity account administration fee and the RSP account administration fee are waived. not required None Young Investors Offer
Zero Account Administration Fee Clients below 26 years old The account administration fee ($24.95 per quarter) is waived. not required None $0 Account Administration Fee
Last Updated: Apr. 30, 2020 16:45PT
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Discount Brokerage Weekly Roundup – April 6, 2020

April has finally arrived. As much as the year is moving quickly, it simultaneously feels like it is moving incredibly slowly. As with the reality in markets, any bit of information about where things go next with the COVID-19 crisis is highly prized.

In this edition of the Roundup, we wade into the shallow deals and promotions pool to start April – in spite of record online investor interest in trading online. From there, we shine a spotlight on a major Canadian discount brokerage that looks like they will once again shake up the features offered by other online brokers. We close out this edition of the Roundup with highlights from investor forums and chatter from the Twitterverse.

New Month, Familiar Deals

It’s the start of a new month. Not just any month either – the one month in the year that typically starts off with some good humour. Alas, the lack of new discount brokerage deals or promotions to kick off the month is no joke.

Like the markets themselves, there has been a considerable pullback in the number of brokerages participating in the most appealing deals and promotions categories: cash back and commission-free trading offers.

If we were in ‘normal’ times, this situation might not seem as unusual after the post-RRSP deadline push. After all, it is expected that leading into that deadline, investors are already actively thinking about their money and investments.

That said, these are not normal times at all.

Despite what is clearly the grimmest economic picture many of us have ever lived through, for Canadian online brokerages, what should normally have been a very slow period in April has turned into one of the busiest seasons on record.

Likely a result of the unprecedented volatility, many folks self-isolating and therefore working from home, and with only so much streaming content to be viewed, means that there is now attention being put on stocks and trading online in volumes that likely exceed the Great Financial Crisis. What is very different now, however, is the scale and scope of impact to the economy from the measures being taken by countries across the globe to flatten the curve on COVID-19 spreading.

With so many prized stocks now on a literal fire sale, bargain hunting investors have been rushing into the market through the door that is the online brokerage. Normally, when Canadians are this interested in trading stocks, online brokerages ramp up their offers and incentives. To reiterate – these are not normal times – and one clear indicator of that is the lack of promotional offers that have been deployed for DIY investors.

Nobody wants to be seen to be taking advantage of a crisis, however, and the conundrum for Canadian online brokerages is this: do nothing about reducing fees/commissions at this time or lowering barriers for folks getting into the markets, then ‘business as usual’ could be like profiteering. Conversely, launching a promotion that would be talk up getting into the most volatile market ever could seem remarkably tone deaf.

What is becoming clear in the COVID-19 pandemic is that major brands are stepping up to help in whatever ways they can. Apple is stepping up to make 1 million face shields a week. Tesla is building ventilators. Breweries and even Louis Vuitton are making hand sanitizer. As “order execution only” entities, the single best goodwill gesture for Canadian discount brokerages to offer to Canadians would be waiving of commission or administrative fees – especially for low balances or inactivity – and especially to those seeking financial relief.

In these far-from-normal times, a rethink is required on what brands stand for and mean in the face of this collective crisis. Normally a deal or promotion is intended to appeal to new clients. Perhaps this is the moment when it would be appropriate to consider promoting the infectious kindness that shows we’re all in this together and that even small acts of kindness can go a long way.

RBC Direct Investing Takes Trading Quotes to the Next Level

It’s one thing to be making investment decisions in a volatile market – but for many active investors, it’s a must to be able to see where there are areas of demand or supply when trying to fine-tune a decision to buy or sell. The stakes are much higher when actively investing, so getting the most accurate and up-to-date information on market prices are key. Enter the world of streaming and in-depth quotes.

Late last year, RBC Direct Investing enabled free Level 1 real-time streaming price quotes for TSX and TSX Venture equities and ETFs. This past week, RBC DI rolled out what is arguably one of the best data features after real-time streaming Level 1 quotes: free streaming Level 2 quotes for TSX and TSX-V listed stocks and ETFs.

For DIY investors, and the online brokerage space here in Canada, it is hard to overstate the value this brings to investing online.

Level 2 quotes, also known as depth of market, can cost over $100 per month, and while the new feature from RBC Direct Investing does not bring with it a top-tier trading platform, the value here is hard to overlook.

The table below compares the prices per month that streaming Level 2 quotes would cost at comparable online brokerages in Canada and it is evident that this feature is anything but cheap.

Online Brokerage Trades per Month (TPM) or Trades per Quarter (TPQ) to Waive Quote Fees Quote Fees without Activity Waiver
BMO InvestorLine 25 (TPM); 75 (TPQ) $125/mo
Disnat Direct (Desjardins Online Brokerage) 20 (TPM); 60 (TPQ) $95/mo
National Bank Direct Brokerage 100 (TPM); 300 (TPQ) $148/mo
Questrade 81 (TPM); 243 (TPQ) $89/mo
Scotia iTRADE 10 (TPM); 30 (TPQ) $79.95/mo
TD Direct Investing 10 (TPM); 30 (TPQ) $69/mo
Virtual Brokers $99/mo

 

It is important to once again point out, however, that the prices for this streaming data option at other online brokerages referenced above usually come bundled with a sophisticated trading platform with many more bells and whistles for fast trade execution and charting capabilities than does the web experience at RBC DI.

That said, most of those Canadian discount brokerages referenced above waive some, most, or all of the data fee only when a minimum trading activity or asset deposit threshold is reached. So, the standard offering of the RBC Direct Investing streaming Level 2 quote is of particular appeal to investors who don’t mind the web interface and who can’t or don’t want to constantly have to trade to maintain an activity threshold. Of course, spending on commissions to get a “free” data feed doesn’t quite add up as a winning strategy but that is exactly the position DIY investors would be in at most brokerages.

For everyday investors, free streaming Level 2 quotes may or may not be something that is widely accessed, but for those investors who appreciate the added window into areas of potential pricing support or resistance, this is a very useful feature. In particular, as volatility increases in many illiquid stocks and bid/ask spreads widen, placing market orders can end up in overpaying for a security, and placing a limit order without knowing what else everyone is either selling or buying at puts investors at a significant information disadvantage.

While not quite the bombshell of dropping commission prices, RBC Direct Investing has unquestionably raised the bar considerably for other Canadian online brokerages, especially their bank-owned brokerage peers.

The standard web-based browser experience now including streaming Level 2 quotes means that other online brokerages will have to work harder to adjust their value proposition to a somewhat active or sophisticated investor. Even with so much attention being drawn away from online brokerage features these days, it’s safe to say RBC Direct Investing’s position in the online brokerage race just leveled up.

Discount Brokerage Tweets of the Week

From the Forums

The Best Bet

A Redditor puts forward the question of whether anyone is betting against the market in anticipation of a crash in this post. Fellow forum users go back and forth on the merits of buying inverse ETFs and their plans for the coming weeks and months.

The Long Game

A new investor turns to the forum for advice on how to make sound investments for the long term while the market is still reeling from the impact of COVID-19. In this post, Redditors give advice on how to set up the right portfolio and think beyond the immediate market.

Into the Close

Despite the wild swings in the market, the biggest and most important stories that need to be told are the ones of the brave frontline workers putting themselves in harm’s way and fighting COVID-19, or those mobilizing what they can to push back this sweeping contagion. Thank you to everyone fighting the good fight.

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Discount Brokerage Deals & Promotions – April, 2020

*Updated April 7* It’s finally April and, after the unprecedented changes and challenges that have unfolded over the past month, we would love to say that current world events are nothing but an April Fool’s Day joke gone wrong but sadly, that isn’t the case. 

To start off the month, online brokerages have opted to stick to tried-and-true offerings, perhaps as a result of the air of uncertainty and instability that currently looms over the markets. 

Even with volatility and turbulence rocking the markets in the past month, which has rightfully left many investors feeling panicked, there has been an emergence of risk-taking investors who have been trying to hastily enter the markets in hopes of making fast money or picking up assets at low prices. 

That said, investors should be prepared to wait. Increased interest and call volumes have put a strain on online brokerage technical systems and client service teams – here’s hoping there’s some good music to pass the time on hold.

For investors who are keen on moving fast and stepping into the present market, scroll on to review the current deals and promotions activity from Canadian discount brokerages this month.

Expired Deals

Two deals officially concluded at the end of March. The first was RBC Direct Investing’s promotion that offered 25 commission-free trades with the opening of a new account, which ended on March 27th.

Another deal that expired in March was Qtrade Investor’s cash back promotion, which officially concluded on March 31st. If cash back promotions are what you’re in the market for, though, be sure to scroll down to the table below for similar offerings.

Extended Deals

No extended deals to report at this time.

New Deals

*Update: Apr. 7 – This month, we’re introducing a new category of deals to the tables below: offers for young investors. Whether for yourself, or for someone you may know, this is a great resource for younger investors who may be looking to get started in the markets. It is worth mentioning that different online brokerages have different definitions of what a “young investor” means, so be sure to check to see if you qualify. 

CIBC Investor’s Edge offers special student pricing of $5.95 per trade if you already have an eligible CIBC Account for students, plus save on annual account fees. Scroll down for more details.

Investors within the age range of 18 to 30 are eligible for two current deals. The first is the Broker@age 18-30 promotion from Desjardins Online Brokerage (Disnat), which they’ve stated is “the perfect starter kit to help you invest in the markets.” The second promotion available for investors within this age group is the special Young Investor Pricing offered by Qtrade Investor. For more details, see the tables below. 

Investors who are up to 26 years in age are eligible for two promotions. At Scotia iTrade, young investors can save on administration fees with their Young Investors Offer. At Virtual Brokers, clients in this age range can take advantage of their zero account administration fee offer. See tables below for more details. 

National Bank Direct Brokerage is offering a reduced pricing structure for young professionals and students of various fields. Scroll down to discover which fields are eligible.

Finally, RBC Direct Investing is offering to waive the account maintenance fee for clients who currently have or had an RBC Student Account (within the past five years) with them. More details in the tables below.*


Discount Brokerage Deals

  1. Cash Back/Free Trade/Product Offer Promotions
  2. Referral Promotions
  3. Transfer Fee Promotions
  4. Contests & Other Offers
  5. Digital Advice + Roboadvisor Promotions
  6. Offers for Young Investors

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. 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 December 31, 2020
Scotia iTrade Open and fund a new Scotia iTrade account to be eligible for up to $1,500 in cash back and $6.99 commission pricing, or up to 500 free equity trades. The amount of cashback and free trades are dependent on the funding of your account. Take a look at the offer details link for further information. $5,000 Cash + discounted commissions, or free trades. $6.99 trades available until June 30, 2020; Cash or commission rebate for free trades available until July 31, 2020. iTrade Offer Details February 29, 2020
Open a new RBC Direct Investing account by March 27th and you may be eligible for 25 commission-free equity and ETF trades. You must deposit or transfer $5,000 in your account by May 8th, 2020 to be able to use this promotion. Make sure that the offer code MFTC2 is applied during account opening. As always, be sure to take a look at the terms and conditions for further details. $5,000 25 commission-free trades 1 year Commission-Free Offer Details March 27, 2020
Open and fund a qualifying new or existing account at TD Direct Investing with at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000 or more and you may be eligible to receive a cash back reward up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. Use promo code RSPCash20 when applying online. Be sure to read full terms and conditions. A) $15,000 B) $25,000 C) $100,000 D) $250,000 E) $500,000 A) $100 B) $200 C) $300 D) $500 E) $1,000 Cash back will be deposited by Aug. 16, 2020. TD Direct Investing Promotion March 03, 2020
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2020
When you transfer funds from another account into a CIBC Investor’s Edge account with assets worth at least A) $25,000; B) $50,000; C) $100,000, you may be eligible to receive A) $100; B) $200; or C) $400 in cash back. A) $25,000 B) $50,000 C) 100,000+ A) $100 B) $200 C) $400 Cash back will be deposited between May 18 – September 17, 2020. CIBC Cash Back Offer Details March 4, 2020
Open and fund a new Qtrade account with at least A) $25,000; B) $50,000 C) $100,00; D) $500,000; E) $1M or D) $2M+ in new assets by March 31, 2020 and you may be eligible to receive a cash bonus of A) $75; B) $150; C) $400; D) $800; E) $1,500 or F) $2,000. Individuals who contribute more than $1,000 through pre-authorized contributions by December 31, 2020 may also be eligible to receive an extra $50. Use promo code QTRADECASH at sign up to qualify. Be sure to read full terms and conditions for more details. A) $25,000 B) $50,000 C) $100,000 D) $500,000 E) $1M F) $2M+ A) $75 B) $175 C) $400 D) $800 E) $1,500 F) $2,000 The cash award will be credited to your cash/margin account in the week of October 30, 2020. Qtrade Investor Q1 2020 Cash Back Offer March 31, 2020
BMO InvestorLine Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $250,000; D) $500,000 or E) $1M+, and you may be eligible to receive a cash back reward of up to A) $250; B) $450; C) $800; D) $1,000 or E) $2,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $50,000 B) $100,000 C) $250,000 D) $500,000 E) $1M+ A) $250 B) $450 C) $800 D) $1,000 E) $2,000 Cash back will be deposited week of December 14, 2020 BMO InvestorLine Cash Back Offer Details June 1, 2020

Expired Offers
Last Updated: Apr. 01, 2020 15:44PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none
You can send an invitation link from your Interactive Brokers profile to friends or business contacts for a chance to receive up to $200 reward for each successful referral. The referee needs to maintain $10,000 or more in their account. Please read the full terms and conditions. $10,000 Your can get 30% of the commission generated by each referred account for up to $200.00. Referred clients must maintain at least $10,000 or USD equivalent in their account. 1 year from the account opening date. Interactive Brokers Referral Program none
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 5, 2021

Expired Offers
Last Updated: Apr. 01, 2020 15:55PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $200 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Transfer Fee Promo Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Disnat Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $10,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $10,000 Disnat 1% Commission Credit Promo January 8, 2020
Last Updated: Apr. 01, 2020 15:47PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 20 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions. n/a Hardbacon Free Trade Promo none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none

Expired Offers
Last Updated: Apr. 01, 2020 15:49PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Apr. 01, 2020 15:54PT

Offers for Young Investors

Brokerage Offer Type Eligible Age Range / Client Segment Offer Description Min. Deposit Expiry Date Link
Student Pricing Clients with CIBC Smart™ Account for students $5.95 per trade and zero annual account fees not required None CIBC Student Pricing
Broker@ge 18-30 18-30 years old investors Benefits: * 5 free transactions (Minimum deposit of $1,000 required) * No inactivity fees * No asset minimum to maintain for free registered accounts * Exclusive events * Disnat Mobile App $1,000 None Broker@ge 18-30
Offers for professionals & Students Students in selected fields of study Professionals and students in the below fields can benefit from a reduced pricing structure: * Engineering students * Legal, accounting and business students * Healthcare students * Health sciences students * Nursing students Benefits: * $5.95 commission on equities * $0 commission on ETFs * $0 annual administration fee not required None NBDB Student Pricing
Young investor pricing 18-30 years old investors Benefits: * $7.75 commissions for stock and ETF trades * No account minimums * No quarterly admin fees min. $50 a month through pre-authorized contributions. None Young Investor Pricing
Waiver of account maintenance fee Clients who have RBC Student account, currently or in the past 5 years. The Maintenance Fee ($25 per quarter) is waived, regardless of the account balance. not required None Zero Account Management Fee
Young Investors Offer Clients below 26 years old Low activity account administration fee and the RSP account administration fee are waived. not required None Young Investors Offer
Zero Account Administration Fee Clients below 26 years old The account administration fee ($24.95 per quarter) is waived. not required None $0 Account Administration Fee
Last Updated: Apr. 01, 2020 15:54PT
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Discount Brokerage Weekly Roundup – March 16, 2020

To paraphrase a quote from Bad Boys, things just got very real. Markets are already in unprecedented territory with record volatility and anyone who looks at the hard right edge of a chart might be seeing just how important having some kind of visibility into the future is to financial markets. Let’s just say, capital is doing some major social distancing from risk right about now.

In this edition of the Roundup, we’ll keep things shorter than usual. In the spotlight, the latest online brokerage rankings are out – dial in for a look at which online brokerages continued to score well and which have room to improve. From there we provide a quick deals update, and then relay commentary from DIY investors on Twitter (viewer discretion advised) and from the forums.

More Canadian Discount Brokerage Rankings

Just because major league sports are on hold, doesn’t mean sports metaphors need to be. The latest rankings of Canadian discount brokerages were launched last week and in case you were distracted by other headlines, there was a familiar name taking the top spot.

Financial services research firm, Surviscor, announced their latest Canadian discount brokerage review, which is actually a compilation of four separate reviews conducted. The four areas that were measured as part of the inaugural edition of the “Canadian Digital Brokerage scorCard” include online experience, mobile experience, service experience, and cost of services.

In total, 11 Canadian online brokers were assessed as part of this combined ranking, with Qtrade Investor coming out on top of this set of rankings with a score of 91 percent, followed by Questrade at 85 percent, and TD Direct Investing at 73 percent, to round out the top three firms.

When viewed through a combined lens that looks extensively at “experience,” it is important for DIY investors to understand what that refers to and to consider that the word can mean different things to different people. As cited in their announcement, Surviscor reviewed “over 7000 objective usage-related criteria questions” at each online brokerage (which is a lot of questions!), so there was considerable ground covered in capturing different facets of the DIY investor experience.

The net result of the various analyses conducted paints an interesting picture of the Canadian online brokerage marketplace. To begin with, these rankings suggest that despite having deeper pockets and resources, simply being an online brokerage arm of a big five bank in Canada doesn’t necessarily translate into a great experience or value for investors. While TD Direct Investing (73 percent) and RBC Direct Investing (71 percent) were relatively even in terms of their performance, they were significantly higher than BMO InvestorLine, CIBC Investor’s Edge, and Scotia iTRADE.

In contrast, Questrade, one of Canada’s most popular non-bank-owned online brokers, scored 85 percent. Although Qtrade Investor’s parent is technically not a bank per se (the parent to Qtrade Investor, Aviso Wealth, is owned by Desjardins Group – a financial cooperative) it does have some very strong financial support. Coincidentally, the other online brokerage owned by Desjardins Group, Desjardins Online Brokerage, also managed to land within the top five online brokerages.

For Canadian DIY investors, the extremely volatile markets are likely to push many to the sidelines – if not heading for the exits. Traders and bolder investors, on the other hand, are coming back to these markets. Interestingly, the features and experiences that active traders turn to for research and decision making will undoubtedly come into play in these market conditions. The biggest and most important one of those features, however, is uptime. And, while it is difficult (perhaps not advisable) for any online brokerage to report 100 percent uptime, there is a trail of commentary on social media that gets formed when online brokerage systems falter or fail altogether.

Against the current backdrop of extreme volatility and uncertainty, there are clearly investors willing to step into the market. That said, the latest online brokerage rankings were compiled during relatively positive and less-volatile times and so it will be very interesting to see how current market conditions impact the rankings in 2021.

Quick Deal Update

In spite of the market meltdown, perhaps because of it, stocks are being repriced. As challenging as it is for society and traders alike to make sense of what is unfolding, a little piece of good news is that the cash back offer from BMO InvestorLine is being extended.

Originally scheduled to expire at the beginning of March, the cash back promotion from BMO InvestorLine has been extended to the beginning of June.

For DIY investors brave enough to step into this market, there are still deals available from several Canadian discount brokerages. March is still going to be a time of volatility for online brokerage deals though, with offers from RBC Direct Investing and Qtrade Investor set to expire at the end of the month.

With such a dynamic situation unfolding, perhaps the moves by central banks offer a hint of what Canadian online brokerages need to do in order to get attention in these wild times: extraordinary measures.

Although just speculation, perhaps a big deal is what is needed to help encourage investor confidence. Even better if it came with coordinated action.

Discount Brokerage Tweets of the Week

From the Forums

The Road Less Traveled

A young Redditor turns to the forum for advice on alternative ways to diversify their assets without investing in the stock market. Fellow forum users point him towards local investment opportunities and offer their advice.

Déjà Trade?

A forum user points out the apparent differences between the most recent market correction and that from 2016 in this post.  A lively discussion on the state of the markets and the impact on individual investors follows.

Into the Close

At this point, March Madness has taken on a totally different connotation. For DIY investors, the panic selling is creating all kinds of volatile market conditions, some of which would certainly warrant the purchase of toilet paper. As we collectively move into this social and economic experiment in real time, there will soon be many more investors at home – by force or choice – watching and trading markets. Wherever things go from here, we hope all of you are practicing sound risk management and taking things quantitatively easy.

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Discount Brokerage Weekly Roundup – March 2, 2020

March is now here and while March Madness is synonymous with college basketball, it seems to sum up the sentiment in the stock market as fears about global economic slowdowns and uncertainty around COVID-19 continue to spread. Also at a fever pitch: deals from Canadian online brokerages at the RSP contribution deadline.

In this edition of the Weekly Roundup, we kick things off by looking at the best news coming out of the world of DIY investing this month: deals and promotions activity. From there, a review of the recent trading outage and how that serves as a constant reminder of the risks of trading online. As always, we’ve gathered colourful comments from investors on Twitter and in the investor forums.

Deals Marching On

The beginning of this month saw the apex of the number of offers that Canadian discount brokerages had for DIY investors. With offers from big bank-owned online brokerages and the smaller competitors, the race to RSP season meant a lot of selection for DIY investors to be able to choose from. Transitioning into March, however, there will almost certainly be a significant contraction in the number of promotions.

In terms of deals that expired at the beginning of March or that are set to expire during March, one common element is that most of these offers are from the bigger bank-owned online brokerages. Deals from BMO InvestorLine, TD Direct Investing, RBC Direct Investing, Scotia iTRADE, and CIBC Investor’s Edge are all set to expire in March, with the latest of them being the commission-free trade offer from RBC Direct Investing. In addition, recent online brokerage award winner Qtrade Investor will also see their deal expire at the end of March.

For consumers, the money conversation is still very much active and happening as we ramp up to the income tax filing deadline at the end of April.

What this means is that there are going to be a lot of Canadians with funds available to either direct towards investing or to keep safe somewhere while the market volatility continues to grip stock markets. Against this backdrop, the acquisition of SimpleTax by WealthSimple in 2019 is a particularly savvy example of being able to find a place that many of their potential key customers would be going to in order to make decisions about managing their wealth. And, make no mistake about it, tax planning is a key part of wealth management.

It will be interesting to see how Wealthsimple – in particular Wealthsimple Trade – benefits from this kind of software partnership. With an enormous amount of data being available from tax returns – including household income, investments, and more – there are a number of marketing possibilities with respect to understanding who might be interested in a wealth service provider.

Cycling back to the deals and promotions available for DIY investors, one new offer did surface at the outset of the month – a small commission-free trade offer from Virtual Brokers. In response to the launch of their new mobile app, Virtual Brokers is offering up 5 commission-free trades in exchange for completing a survey and downloading their new mobile app. Although it is small, it is a positive sign that Virtual Brokers is stepping back into the spotlight after having maintained a relatively quiet presence after its acquisition by CI Financial.

DIY investors continuing to think about and manage their financial well-being during the tax season indicates a bullish sign for deals and promotions for investors. That said, the backdrop of market meltdowns is going to make it considerably more difficult to attract DIY investors into the market. While some will see this dip as a buying opportunity, talk and fear of a recession or prolonged uncertainty is enough to keep investors at arm’s length. That reality might mean Canadian online brokerages will ramp up their efforts or incentives to attract gun-shy investors. Whether it is through investor education or using some well-timed, short term promotions, Canadian online brokerages will likely have a very bumpy beginning to spring season.

Wild Week of Market Outages

It’s (fortunately) not something DIY investors and traders see every day. This past week, a technical issue brought trading on Canadian stock exchanges to a grinding halt into the end of the day. No trades could be executed and as a result, lots of traders ended up frozen out and could only watch their trading screens broadcast error messages.

Were it some ho-hum week, it would still be bad, but on a week in which markets fell sharply, heightened emotions were already in play and this outage only amplified worries and concerns about market performance and integrity. Add into the mix the last business week heading into the RSP contribution deadline and it could hardly have been a worse confluence of events.

The fallout from the outage and heightened volume appeared to impact trading systems, and retail investors did not hold back in their dissatisfaction with the experience.

This is the second outage in two years at the TSX and a reminder that for online investing, there are many, many possible failure points for DIY investors to contend with. Whether that issue then contributed to a domino effect of systems issues at Canada’s online brokerages is tough to say. There were definitely messages that the change in price on Friday was actually relative to Wednesday’s closing price, since Thursday’s close technically didn’t happen.

With continued volatility in the immediate forecast, the benefactors are online brokerages who charge commissions. This is typically the kind of market that day traders love (because of the volatility) and that investors (even the nervous ones) tend to sell what they can or take profits off the table. And, that means trading, which means commissions.

Of course, if trading halts because of market technology failures or online brokerage failures, the ones impacted may include a higher number of active traders – the most valuable of the trading food chain for online brokerages in Canada.

Even if stock prices aren’t higher at the moment, stakes for online brokerages are.

Discount Brokerage Tweets of the Week

From the Forums

Upsides to Down Time?

With the effect of the coronavirus being felt in the markets, a Redditor asks fellow forum users to weigh in on how DIY investors have been responding in this post. A discussion ensues on timing the markets and how world events can affect ill-prepared, anxious investors.

The Fare-est of Them All

A forum user seeks advice on which online brokerage to use in this post. Fellow Redditors give advice on how to weigh out their options and how to invest while keeping risk tolerance in mind.

Into the Close

That’s a wrap on another wild week. Activity at the end of the market day on Friday was interesting – it may have been some optimism stepping back in or shorts looking to cover into the weekend. It’s clear that market direction is decidedly undecided. With debates raging over pullbacks versus corrections and the news cycle fixated on coronavirus, some seasoned investors are hoping to employ the same enthusiasm in the markets that is taking place in toilet paper and hand sanitizer aisles in Costco.

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Discount Brokerage Deals & Promotions – March 2020

*Updated March 9* Even though the markets might be in meltdown mode, one of the interesting features of the Canadian discount brokerage deal landscape is that there’s still solid ground for DIY investors in search of a good deal.

Most offers from Canada’s online brokers were timed around the RSP contribution deadline and though several will be expiring in the next few days, there are a number of big names that are staying in the deals and promotions mode through the end of this month.

There will certainly be turnover forecasted in the deals space. Even though TD Direct Investing extended the deadline for their cash back offer from Feb. 29th to March 3rd, the largest bank-owned online brokerage will be joining CIBC Investor’s Edge in winding down their promotion in the first week of March.

Later on in the month, RBC Direct Investing and Qtrade Investor have scheduled the end of their RSP campaigns. BMO InvestorLine does have their RSP offer scheduled to expire in the first week of March however if history is any indicator, there may be another offer coming after March 3rd. Finally, Scotia iTRADE peeled off a little bit early with their promo expiring at the end of February.

In terms of volatility, stock markets aren’t the only place where uncertainty reigns this month. With so much negative sentiment around stocks, it will be a real challenge to Canadian online brokerages to navigate getting DIY investors to step into a falling market. For most DIY investors, however, money is still on their minds – including during tax filing season – so for the right price (or promotion) – it could still be compelling enough to consider opening an online investing account. For that reason, it will be especially interesting to tune into deals and promotions activity this month.

Expired Deals

One deal officially concluded at the end of February and that was from Scotia iTRADE. Their historical cadence of promotions has changed so it is unclear when or if another large public offer will be launched to replace the cash back/free trade/commission drop combo offer.

Extended Deals

*Update: Mar. 9 – If you were worried you had missed out on BMO InvestorLine’s special cash back offer, then have no fear. Originally set to expire on March 3, the deal has now been extended until June 1. This means you have about three months to take advantage of this deal with the code SPARXCASH when you open a new qualifying account. See table below for additional details.*

Although it is only for a few more days into the month, the good news for last minute RSP contributors is that the TD Direct Investing cash back offer has been extended through to March 4th.

New Deals

Virtual Brokers has jumped back into the deals and promotions pool – with a catch. To presumably boost adoption and feedback on their recently launched revamped mobile app, Virtual Brokers is offering up 5 commission-free trades for downloading their app and complete a 3-minute survey about the app.

With a number of expiring offers early in March, we’ll be watching for something new to sprout up in time for spring.


Discount Brokerage Deals

  1. Cash Back/Free Trade/Product Offer Promotions
  2. Referral Promotions
  3. Transfer Fee Promotions
  4. Contests & Other Offers
  5. Digital Advice + Roboadvisor Promotions

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. 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 December 31, 2020
Scotia iTrade Open and fund a new Scotia iTrade account to be eligible for up to $1,500 in cash back and $6.99 commission pricing, or up to 500 free equity trades. The amount of cashback and free trades are dependent on the funding of your account. Take a look at the offer details link for further information. $5,000 Cash + discounted commissions, or free trades. $6.99 trades available until June 30, 2020; Cash or commission rebate for free trades available until July 31, 2020. iTrade Offer Details February 29, 2020
Open a new RBC Direct Investing account by March 27th and you may be eligible for 25 commission-free equity and ETF trades. You must deposit or transfer $5,000 in your account by May 8th, 2020 to be able to use this promotion. Make sure that the offer code MFTC2 is applied during account opening. As always, be sure to take a look at the terms and conditions for further details. $5,000 25 commission-free trades 1 year Commission-Free Offer Details March 27, 2020
Open and fund a qualifying new or existing account at TD Direct Investing with at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000 or more and you may be eligible to receive a cash back reward up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. Use promo code RSPCash20 when applying online. Be sure to read full terms and conditions. A) $15,000 B) $25,000 C) $100,000 D) $250,000 E) $500,000 A) $100 B) $200 C) $300 D) $500 E) $1,000 Cash back will be deposited by Aug. 16, 2020. TD Direct Investing Promotion March 03, 2020
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2020
When you transfer funds from another account into a CIBC Investor’s Edge account with assets worth at least A) $25,000; B) $50,000; C) $100,000, you may be eligible to receive A) $100; B) $200; or C) $400 in cash back. A) $25,000 B) $50,000 C) 100,000+ A) $100 B) $200 C) $400 Cash back will be deposited between May 18 – September 17, 2020. CIBC Cash Back Offer Details March 4, 2020
Open and fund a new Qtrade account with at least A) $25,000; B) $50,000 C) $100,00; D) $500,000; E) $1M or D) $2M+ in new assets by March 31, 2020 and you may be eligible to receive a cash bonus of A) $75; B) $150; C) $400; D) $800; E) $1,500 or F) $2,000. Individuals who contribute more than $1,000 through pre-authorized contributions by December 31, 2020 may also be eligible to receive an extra $50. Use promo code QTRADECASH at sign up to qualify. Be sure to read full terms and conditions for more details. A) $25,000 B) $50,000 C) $100,000 D) $500,000 E) $1M F) $2M+ A) $75 B) $175 C) $400 D) $800 E) $1,500 F) $2,000 The cash award will be credited to your cash/margin account in the week of October 30, 2020. Qtrade Investor Q1 2020 Cash Back Offer March 31, 2020
BMO InvestorLine Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $250,000; D) $500,000 or E) $1M+, and you may be eligible to receive a cash back reward of up to A) $250; B) $450; C) $800; D) $1,000 or E) $2,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $50,000 B) $100,000 C) $250,000 D) $500,000 E) $1M+ A) $250 B) $450 C) $800 D) $1,000 E) $2,000 Cash back will be deposited week of December 14, 2020 BMO InvestorLine Cash Back Offer Details June 1, 2020

Expired Offers
Last Updated: Mar. 9, 2020 11:08PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none
You can send an invitation link from your Interactive Brokers profile to friends or business contacts for a chance to receive up to $200 reward for each successful referral. The referee needs to maintain $10,000 or more in their account. Please read the full terms and conditions. $10,000 Your can get 30% of the commission generated by each referred account for up to $200.00. Referred clients must maintain at least $10,000 or USD equivalent in their account. 1 year from the account opening date. Interactive Brokers Referral Program none
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 5, 2021

Expired Offers
Last Updated: Feb. 28, 2020 17:13PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $200 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Transfer Fee Promo Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Disnat Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $10,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $10,000 Disnat 1% Commission Credit Promo January 8, 2020
Last Updated: Feb. 28, 2020 17:15PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 20 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions. n/a Hardbacon Free Trade Promo none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none

Expired Offers
Last Updated: Feb. 28, 2020 17:15PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Feb. 28, 2020 17:15PT
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Discount Brokerage Weekly Roundup – February 3, 2020

After the ‘big game’ in the NFL, it’s now time for the championship race between Canadian online brokerages to kick into high gear. With just a few weeks left until the deadline for RSP contribution, it will be an all-out sprint by Canadian online brokerages to land new accounts and assets from Canadian DIY investors. It won’t be easy though, with more choices than ever before and jittery markets because of fears about the corona virus, DIY investors are bound to be cautious, which means when it comes to choosing an online brokerage, the juice has to be worth the squeeze.

In this edition of the Roundup, we review the latest discount brokerage promotions that are available as of the beginning of February (great news there are lots!). From there, we launch into even bigger news with another less popular online brokerage cleverly finding a way to get attention by dropping their commission prices to zero well ahead of their peers. Finally, the third big story this week is the launch of the 2020 Globe and Mail online brokerage rankings, which offers another perspective on the different features available from Canadian online brokerages. As always, we’ll cap things off with a review of DIY investor comments (including reactions from the outages) from the forums and Twitter.

New Month, New Deals

On the heels of the Lunar New Year celebration, the start of the new month (and new year) shows that promotional efforts by Canadian discount brokerages are well under way.

The tail end of 2019 and the first weeks of 2020 have been filled with new promotions and pricing announcements at several prominent online brokerages – so much so that news of new feature releases or website redesigns have taken a back seat to the focus on cost.

At the start of February, almost all Canadian discount brokerages have made adjustments of one kind or another to try and win the attention (and assets) of Canadian investors. Many of these brokerages have opted for highly competitive cash back offerings to make it worthwhile for DIY investors to at least consider opening a new account or transferring an account to them. Even so, there are a couple of online brokerages that have remained on the sidelines despite the busy season for DIY investors.

One interesting observation about the state of deals and promotions heading into the final stretch for RSP season is that all of Canada’s large bank-owned brokerages have a promotion in play. Ideally, smaller online brokerages would leverage more aggressive pricing or promotional offers to win attention of investors away from larger bank-owned competitors. This year, however, that isn’t really the case, so it is noteworthy to see bank-owned online brokerages jockeying for investor attention with promotional offers and several smaller brokerages stand aside.

Of the big five bank-owned online brokers, only RBC Direct Investing is offering a purely commission-free trade offer, with the rest of its peers offering up cash back promotions. Typically, cash back promotions are most popular among investors, and even though commission-free trade offers might present significant value, the reality is that cash is still king.

The amounts of cash back offers and requirements to qualify for them this year reveal which kinds of customers brokerages are most interested in trying to appeal to. For example, Scotia iTRADE and TD Direct Investing have minimum deposits of $5,000 and $15,000 for their offers, respectively. This lower threshold means that less established investors – even  beginner or younger investors – may see either of these brokerages as a viable option to open online investing account with. By comparison, offers from CIBC Investor’s Edge and BMO InvestorLine require a minimum deposit of $25,000 and $50,000 respectively, which suggests a more established investor would pay more attention to the offerings by these bank-owed brokers.

Another interesting observation among all the cases of big-bank owned brokerage promotions (except RBC Direct Investing) is that the promotions are tiered offers that offer greater amounts of cash back with higher deposits. This tiered structure also reveals some interesting competitive dynamics among certain brokerages. For example, for deposits exceeding $250,000, it is essentially a race between three big bank-owned discount brokerages: BMO InvestorLine, Scotia iTRADE and TD Direct Investing for cash back incentives to this financially elite club.

Outside of the big bank-owned brokerages, popular online brokerages, such as Qtrade Investor and Questrade, have cash back offers (and in the case of Questrade also commission-free trade offers and a very competitive transfer fee coverage offer) that they hope will help them to stand out from the bank-owned crowd.

Qtrade Investor, which has a cash back offer (also tiered), is up against some stiff competition for new business and assets, as three big bank-owned brokerages are directly competing against Qtrade’s offer. At the other Q-named online brokerage, investors looking for a promotion can find a wide selection of offers. Questrade’s long-standing commission-free trade deal is an option and all of their most popular offers have very low barriers to access or qualify for them, which is ideal for younger investors. In addition, younger investors can benefit from special pricing and commission free trades from National Bank Direct Brokerage, which offers up 10 commission-free trades per year each year the account is open.

With most brokerages now on the deals board, it is curious to see other discount brokerages stand on the sidelines this year.

For instance, neither Virtual Brokers nor HSBC InvestDirect have commission-free trade or cash back promotions this year (as of the time of publication) – an interesting option given the fierce competition for assets. Also interesting is that newcomers to the discount brokerage space, Wealthsimple Trade and CG Direct, opted not to take advantage of RSP season with a new promotion. Passing up this cycle of investor interest means that they are giving up valuable airtime when DIY investors are most actively shopping around.

Ultimately, however, the news is great for DIY investors this month. There are several really strong deals from reputable Canadian discount brokerages. Timing to try to take advantage of these offers couldn’t be better; however, for investors, just be prepared to spend some time waiting on hold or with slow account processing.

Commission Price Drop: HSBC InvestDirect Launches Zero Commission Pricing

The zero-commission spectre has surfaced at yet another Canadian online brokerage. HSBC InvestDirect, one of Canada’s lesser well-known online brokerages, has announced they are prepared to offer zero commissions for clients who qualify as active investors, i.e. anyone who makes 150+ trades per quarter, for a limited time from April through December of 2020.

As has been mentioned in previous Roundups, it will only be a matter of time until larger, more popular Canadian online brokerages are forced to figure out how they are going to adopt zero commission trading.

Fortunately for most competing online brokerages, HSBC InvestDirect is a relatively small and unknown online brokerage to many Canadian investors. Much like what happened when HSBC InvestDirect dropped their prices down to sub $7 per trade (making them the cheapest bank-owned online brokerage as far as standard commissions), the market as a whole effectively overlooked this announcement and went on its merry way.

Even though existing Canadian online brokerages are navel gazing and potentially looking for additional information on their clients to improve monetization, competitors such as Wealthsimpe Trade have already taken what felt like a giant leap.

Wealthsimple Trade has already led the way in this offering and as of late last year, the first ‘household’ name in online brokerages has drastically reduced their per trade commission. National Bank Direct Brokerage reduced their standard trade commissions for active investors (who they define as X trades per month) down to $0.99 per trade. Earlier this year, Desjardins Online Brokerage countered by dropping their commission rates (also for active traders) down to $0.75 per trade.

With HSBC InvestDirect now taking trading commissions down to $0 for active traders, there is clearly a trend taking shape where active traders are likely to be the first benefactors of the reduced pricing from some of the larger, established online brokerages.

The standard commission rates for trading at HSBC InvestDirect are 6.88 for North American ETFs or equities, which makes them among the lowest cost per trade (currently) for bank-owned online brokerages standard commissions.

That said, the cost to qualify for this new pricing means having to trade 150 times in a quarter which at that online brokerage can cost a hefty $1,032. It also means that clients have to continuously trade that kind of volume to maintain their commission-free status – which will be a challenge for all but the most dedicated or active traders. What will make this even more challenging is the user interface and client experience for very active traders, who need (typically) streaming quotes, level 2 preferably and multiple market data, as well as a trading platform that has advanced charting capabilities and rapid order entry. Even at a modest constant pace, the platform will need to handle 2.5 trades per day – which could be reasonable except that there is no robust market trading platform in place to do essential research.

The fact that this new offer hasn’t made the kind of splash we envisioned it would is not surprising given lack of visibility of this online brokerage within the Canadian DIY investor community. HSBC InvestDirect is not that well known among Canadian DIY investors, however their new pricing structure offers a valuable ‘canary in the coal mine’ for the brokerages as a whole and this latest move in pricing might be enough to prompt a larger brand to take a bolder step ahead of other brokerages.

For active traders, the new pricing structure at HSBC InvestDirect (and several other brokerages) is tempting – however, the platform will need to compare with and do better that it is now. Nonetheless, if HSBC InvestDirect was looking for at least a long shot kind of promotional event to generate some noise and coverage, then mission accomplished. Though we have yet to see major media outlets pick up the story, commission-free trading with the convenience of a bank is a secret that can’t be kept much longer.

Globe & Mail 2020 Online Brokerage Rankings

This past week, the 21st edition of Canada’s longest running evaluation of Canadian online brokerages was published by Rob Carrick at the Globe and Mail. Along with the changes in the online brokerage industry in Canada, this analysis of the industry continues to evolve.

This year, there was a familiar structure to the rankings, with letter grades being assigned to each brokerage as well as brief commentary provided from Carrick on the merits and drawbacks of each online brokerage, mostly from the point of view of the ‘everyday’ investor. There were also comparisons of all brokerages analyzed on 10 key questions or components, namely:

  • How do online stock trading commissions compare?
  • Is there a simplified fee for all accounts with small balances?
  • Is commission-free ETF trading available?
  • Foreign exchange charges
  • Are U.S.-dollar registered accounts available?
  • Can you buy high-interest savings ETFs?
  • Can clients send secure e-mails to get personal account questions answered, or use online chat?
  • Are there comprehensive tools to help clients assess their returns over the short and long term and against benchmark indexes?
  • How does the client website experience rank on a scale of 1 to 5?
  • Is there a security guarantee saying clients will be reimbursed fully for losses in their account due to unauthorized transactions?

The grades this year were generally decent, with 8 out of 12 of the online brokerages evaluated scoring a letter grade of B or better. This is an encouraging sign that, generally speaking, the online brokerages in Canada are starting to do a better job of catering to DIY investors’ needs according to this ranking. The top score (A+) was achieved by Qtrade Investor, while the lowest score (D+) was received by HSBC InvestDirect.

The most popular grade (B+) was achieved by four online brokers: Interactive Brokers, Questrade, RBC Direct Investing, and Virtual Brokers. This collective is a very interesting combination because they are comprised of mostly independent online brokerages and one bank-owned online broker. Conversely, of the three discount brokerages that scored A- or higher (Qtrade Investor, Scotia iTRADE, and TD Direct Investing), two thirds of those are bank-owned online brokers. What the latest Globe and Mail online brokerage ranking points to, as far as the experience for the ‘everyday investor,’ is that going with a non-bank owned online brokerage is generally going to be a safer or better bet than going with a large bank-owned brokerage.

As with the previous rankings, the full access to this ranking is for subscribers to the Globe and Mail, which means details on the comparisons section and full commentary are visible only to folks prepared to pony up for the Globe, as well as to readers of forums where this information has also been posted.

BMO InvestorLine B-
CIBC Investor’s Edge C
Desjardins Online Brokerage C
HSBC InvestDirect D+
Interactive Brokers B+
National Bank Direct Brokerage B
Qtrade Investor A+
Questrade B+
RBC Direct Investing B+
Scotia iTRADE A-
TD Direct Investing A
Virtual Brokers B+

 

It bears reiterating, with each ranking or rating mentioned here, that the grades are the product of the ranking system itself. As such, it is important for readers to understand the strengths and limitations of this kind of grading system at helping them arrive at a fair assessment of which online brokerage is ultimately best for them.

The detailed methodology for the online brokerage rankings did not accompany this year’s rankings so it was not clear what, if anything, had changed about the way in which online brokerages were assessed. Nonetheless, the scoring as well as the commentary reflect the informed opinions and expertise of the author, who in this case, has extensive experience in this area.

Overall, rankings from different organizations or entities point to a general improvement in the provision of online investing services for Canadian DIY investors. The difference between online brokerages in Canada from both a pricing, as well as a features, point of view isn’t so drastic, generally speaking, that they would feel compelled to move unless it were for features that weren’t available at their current online broker.

Discount Brokerage Tweets of the Week

From the Forums

Time in the Market is Better than Timing the Market

The perennial question of “the markets are so high, should I buy now?” comes to a head when a Redditor brings forward an article from “Of Dollars and Data” that digs into the numbers for this very question in the US markets. Fellow forum users debate the merits of this argument and break down the numbers even further here.

Inherited Stress

A user asks for advice on which self-managed brokerage account to put some newly-inherited wealth. Users put some fears to rest and offer brokerage options in this post.

Into the Close

Another week is in the books and the start of the month feels decidedly shakier than the start of the previous one. For DIY investors, this is an interesting moment to either scale in or start looking for some protection. Here comes the news cycle ready to report on the scare trade – and as every seasoned investor knows – now might be the time to look for places where things are getting a little too emotional.

 

 

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Discount Brokerage Deals & Promotions – February 2020

February is finally upon us. It’s a great time to indulge in all things that are rosy and sugar-spun for Valentine’s Day and, for Canadian DIY investors, the best time to take advantage of sweet deals being offered by Canadian discount brokerages ahead of the RRSP contribution deadline.

In spite of the cheer, to quote a famous rock anthem, every rose has its thorns. And, in the case of the deals pool heading into February, there was one long term commission-free trading offer that finally got dumped by Desjardins Online Brokerage in favour of their newer pricing strategy.

While goodbyes are never easy, investors can say hello to bright, new beginnings, including offers and lower pricing from brokerages to celebrate this month. As this year is also a leap year, investors will get an extra day in the month to ponder which online brokerage is best.

Qtrade Investor stepped back into the deals pool, offering up a new tiered cash back promotion and RBC Direct Investing is “on again” with its 25 commission-free trade deal. BMO InvestorLine decided to show some more love to its referral program, extending it out to next year and it also launched a new tiered cash back promotion to carry DIY investors through the RRSP contribution scramble. Scroll on to learn more about these deals, as well as a few that are set to expire at the end of this month!

As always, if there are any promotions that would benefit other DIY investors that aren’t covered, feel free to let us know in the comments below.

Expired Deals

The epic run of the Disnat (Desjardins Online Brokerage) 1% commission credit promotion has finally come to an end. The deal offered 1% of assets transferred into a new account in the form of commission credits, up to a maximum value of $1,000, expired in early January. The latest reduction in standard and active commission pricing is likely the driving force.

Extended Deals

Some good news for friends of BMO InvestorLine clients as the bank-owned online brokerage decided to extend the referral offer out another year. The new expiry date for this offer is in January 2021. The extra good news for this cash back referral offer is that it can be stacked on top of existing offers.

New Deals

Not wanting to be left out in the cold, Qtrade Investor joined the deals and promotions pool this RSP season with a new tiered cash back promotion in January. The promotion offers up between $75 and $2,000 cash back for DIY investors who open up a new qualifying account. As an extra sweetener, individuals who contribute more than $1,000 through pre-authorized contributions by December 31st, 2020 may also be eligible to receive an extra $50. Qtrade’s latest promotion is set to end on March 31st, 2020

Though technically making a reappearance, the 25 commission-free trades promotion from RBC Direct Investing is back in the ‘new’ deals category after an absence at the end of 2019. The promotion is offering 25 commission-free equity and ETF trades for any RBC Direct Investing account that is opened by March 27th, 2020. The upside of this offer is that clients will get a whole year to use them.

Finally, BMO InvestorLine upped the ante replacing an outgoing cash back deal, with an even bigger offer in early January. The new deal from BMO InvestorLine expires on March 3rd, 2020, and offers up cash back ranging from $250 to $2,000. To qualify for this offer DIY investors are required to deposit between $50,000 to $1 million or more.

Discount Brokerage Deals

  1. Cash Back/Free Trade/Product Offer Promotions
  2. Referral Promotions
  3. Transfer Fee Promotions
  4. Contests & Other Offers
  5. Digital Advice + Roboadvisor Promotions

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. 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 December 31, 2020
Scotia iTrade Open and fund a new Scotia iTrade account to be eligible for up to $1,500 in cash back and $6.99 commission pricing, or up to 500 free equity trades. The amount of cashback and free trades are dependent on the funding of your account. Take a look at the offer details link for further information. $5,000 Cash + discounted commissions, or free trades. $6.99 trades available until June 30, 2020; Cash or commission rebate for free trades available until July 31, 2020. iTrade Offer Details February 29, 2020
Open a new RBC Direct Investing account by March 27th and you may be eligible for 25 commission-free equity and ETF trades. You must deposit or transfer $5,000 in your account by May 8th, 2020 to be able to use this promotion. Make sure that the offer code MFTC2 is applied during account opening. As always, be sure to take a look at the terms and conditions for further details. $5,000 25 commission-free trades 1 year Commission-Free Offer Details March 27, 2020
Open and fund a qualifying new or existing account at TD Direct Investing with at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000 or more and you may be eligible to receive a cash back reward up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. Use promo code RSPCash20 when applying online. Be sure to read full terms and conditions. A) $15,000 B) $25,000 C) $100,000 D) $250,000 E) $500,000 A) $100 B) $200 C) $300 D) $500 E) $1,000 Cash back will be deposited by Aug. 16, 2020. TD Direct Investing Promotion February 29, 2020
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2020
When you transfer funds from another account into a CIBC Investor’s Edge account with assets worth at least A) $25,000; B) $50,000; C) $100,000, you may be eligible to receive A) $100; B) $200; or C) $400 in cash back. A) $25,000 B) $50,000 C) 100,000+ A) $100 B) $200 C) $400 Cash back will be deposited between May 18 – September 17, 2020. CIBC Cash Back Offer Details March 4, 2020
Open and fund a new Qtrade account with at least A) $25,000; B) $50,000 C) $100,00; D) $500,000; E) $1M or D) $2M+ in new assets by March 31, 2020 and you may be eligible to receive a cash bonus of A) $75; B) $150; C) $400; D) $800; E) $1,500 or F) $2,000. Individuals who contribute more than $1,000 through pre-authorized contributions by December 31, 2020 may also be eligible to receive an extra $50. Use promo code QTRADECASH at sign up to qualify. Be sure to read full terms and conditions for more details. A) $25,000 B) $50,000 C) $100,000 D) $500,000 E) $1M F) $2M+ A) $75 B) $175 C) $400 D) $800 E) $1,500 F) $2,000 The cash award will be credited to your cash/margin account in the week of October 30, 2020. Qtrade Investor Q1 2020 Cash Back Offer March 31, 2020
BMO InvestorLine Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $250,000; D) $500,000 or E) $1M+, and you may be eligible to receive a cash back reward of up to A) $250; B) $450; C) $800; D) $1,000 or E) $2,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $50,000 B) $100,000 C) $250,000 D) $500,000 E) $1M+ A) $250 B) $450 C) $800 D) $1,000 E) $2,000 Cash back will be deposited week of October 12, 2020 BMO InvestorLine Cash Back Offer Details March 3, 2020

Expired Offers
Last Updated: Feb. 1, 2020 14:55PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none
You can send an invitation link from your Interactive Brokers profile to friends or business contacts for a chance to receive up to $200 reward for each successful referral. The referee needs to maintain $10,000 or more in their account. Please read the full terms and conditions. $10,000 Your can get 30% of the commission generated by each referred account for up to $200.00. Referred clients must maintain at least $10,000 or USD equivalent in their account. 1 year from the account opening date. Interactive Brokers Referral Program none
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 5, 2021

Expired Offers
Last Updated: Feb. 1, 2020 14:55PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $200 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Transfer Fee Promo Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Disnat Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $10,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $10,000 Disnat 1% Commission Credit Promo January 8, 2020
Last Updated: Feb. 1, 2020 14:55PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 20 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions. n/a Hardbacon Free Trade Promo none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none

Expired Offers
Last Updated: Feb. 1, 2020 14:55PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Jan. 16, 2020 14:55 PT
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Discount Brokerage Weekly Roundup – January 20, 2020

There’s snow doubt about it, winter definitely showed up in Canada this past week. Of course, for those fortunate or wise enough to have been prepared, weathering the storm just seemed like just a matter of time.

Speaking of time, curling up by a cozy fire to read this edition of the Roundup is a great way to get up to speed on a few interesting developments that took place amidst all the wild weather this past week. To kick things off, we look at the latest (and long-awaited) update to a mobile app for one online brokerage. From there, we provide an update to the deals & promotions being offered by Canadian discount brokerages as a familiar cast member makes a re-appearance just in time for the RSP season. Also, the race to the top of the online brokerage mountain in the US is providing some interesting clues to online brokers here in Canada. Finally, we welcome back the comments and critiques from DIY investors on Twitter and in the forums.

Virtual Brokers Unveils New Mobile App

With more investors turning to their mobile devices for just about everything, having a strong mobile app experience for online brokerages is no longer becoming a ‘nice to have’ feature. In fact, with brokerages like Robinhood (in the US) and Wealthsimple Trade going ‘mobile first’ with their online investing experiences, there is little room for error for existing online brokerages when trying to retain clients.

After a long-awaited update, Virtual Brokers has begun rolling out their new mobile app for both iOS and Android. The new app, which replaces their existing Power Trader Mobile app couldn’t have come any sooner for many clients.  Power Trader Mobile, which has been around since 2013, managed just 2 stars out of 5 on both Google’s Play Store and the Apple App Store.

So, hopefully, with a new year there’s a new start to the mobile experience. Already the early reviews on the App Store paint a picture of a better experience. Although there are only 2 reviews, the score of 4.5 from what look to be beta testers, looks promising.

The features on the new mobile app enable users to trade stocks and mutual funds – including get stock quotes; view account and transaction details; review orders and positions; withdraw and deposit funds, as well as view basic charts.

The interface of the new app also appears to be much more modern looking and easier to navigate. Screen shots available on the App Store highlight a refreshed look and improved user experience.

Like the refresh of a website, the launch of a new trading platform isn’t going to generate a lot of news or waves for DIY investors. Yes, it is something that is probably going to be appreciated by the scores of patient clients who were waiting for something better but the current release of the mobile app by Virtual Brokers is not so much a game changer as it is something that brings them back into contention with other brokerages.

One of the bigger challenges facing Virtual Brokers in the highly competitive online brokerage space in Canada is to get online investors to pay attention to this and any new features they roll out. While the online brokerage rankings offer a great way to showcase Virtual Brokers to the readership of the Globe and Mail, there is a lot of ground to cover to compete against their traditional rivals, Questrade, and the bank-owned brokerages in terms of brands that investors will talk about or tune into. Features like a mobile app launch are important but to truly stand out, pricing and innovation are key elements that should take centre stage. 

New (Reappearing) Deal for RBC Direct Investing

As we tick closer to the RSP contribution deadline, there is yet another discount brokerage deal announcement crossing the wires. Making a reappearance to the deals and promotions section this month, and in time for the RSP season, is a familiar commission-free offer from one of the most popular online brokerages – RBC Direct Investing.

Their 25 commission-free trade offer is back. With trades that are good for up to one year, a minimum deposit of $5,000 to qualify and an expiry date well after the contribution deadline, there is a low hurdle to qualify for this promotion at this bank-owned online broker.

With the re-entry of RBC Direct Investing to the premiere tier of offers for DIY investors, the major bank-owned online brokers are now all offering something substantial this RSP season. In fact, there are really only a handful of online brokerages who don’t have a major offer in this category at this time – notably Virtual Brokers and HSBC InvestDirect. With the bigger or better-known providers now offering up something substantial, there is not going to be any better time for those on the sidelines to launch an offer that can compete with the other online providers.

Schwab Rallies Despite Earnings Miss

If there’s one thing that investors pay attention to when it comes to stocks, it’s earnings. And, generally when earnings don’t meet expectations, prices usually fall. Of course, when they don’t, there is always a pretty good reason behind the gravity-defying behaviour and often it comes back to a bet on something bigger on the horizon.

Such was the case for the largest online brokerage in the US (and planet), Charles Schwab, who reported quarterly earnings this past week. While the reported earnings per share fell short of estimates by a few pennies, the eye-popping numbers that also accompanied this earnings report demonstrates just how big of a juggernaut Schwab has become on the heels of their decision to go to zero-commission equity trading and to acquire their large rival TD Ameritrade.

One big stat to pay attention to in their latest earnings announcement was the drop of commission revenues of 58% (down to $86 million dollars US). Nonetheless, the bigger news is that client assets under management ballooned 24% higher in the year to cross the $4 trillion dollar (US) mark – a new record high for the online brokerage.

For the share price to rise by almost 3% to end the week is signal by investors that they’re looking at the future for this online brokerage with optimism. Indeed, the assets that continue to get accumulated by Schwab are a great reminder that sustainability for online brokerages is going to be linked either to scale, operational efficiency, or irresistible innovation. For Canadian online brokerages, it’s tough to point to any brokerages right now that are winning based on personality (although Wealthsimple is certainly putting on a clinic as far as marketing is concerned), so it’s either go big, go fast, or go home. And as far as the market’s concerned, it seems that go big is the winning option for now.

Discount Brokerage Tweets of the Week

From the Forums

Age-Old Tips

A user wonders if their plan of allocating “my age minus 10 to bonds” is considered wise and fellow Redditors weigh in on a potentially outdated, and overworked, practice. Read more here.

Lights, Camera, Class-Action

When it comes to being in the spotlight ahead of RSP season, the Canadian financial service industry invests quite a bit to be top of mind. In this Reddit post, however, there is a significant storm brewing in the form of a class-action lawsuit over the way mutual funds were recommended to investors.

Into the Close

That’s a wrap on another bumpy week in the markets. In spite of the of volley of news stories of various degrees of shocking, equity markets in the US are sloping higher than a Newfoundland snow drift and Canadian equity markets are also pushing to new heights. If there’s solace or good news to be found anywhere, right now it’s in market momentum. And a Superbowl featuring the 49ers and Chiefs.

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Discount Brokerage Weekly Roundup – January 13, 2020

Welcome to 2020! Lots has happened while the Weekly Roundup has been on hiatus, however much like the snow blanketing rooftops all across the country (including Vancouver), there’s lots of news to shovel through and remarkably a lot to look forward to for DIY investors this RSP season.

In this first edition of the Weekly Roundup in 2020, we highlight the biggest story so far of the new year, the launch of new deals for DIY investors. From there, we report on the latest commission price drop from a turf war in Quebec that might actually start spilling over into the rest of the Canadian online brokerage market. Also, we’ll cover a neat feature for DIY investor clients of one bank-owned online brokerage that will start a new kind of streaming war (that doesn’t feature a baby Yoda unfortunately). Alas to make room for some extra stories, we’ve sidelined the sardonic tweets and put investor forum commentary on ice, but they’ll be back next edition.

New Year, New Deals

What better way to start the new year than with news of big deals and promos for DIY investors eager to open an online investing account. This year, there appears to be quite the battle between bank-owned online brokerages.

With 9 cash back or free trade promotions for Canadian DIY investors to now choose from, this isn’t the highest number of offers we’ve seen in this category, however what does stand out is the number of bank-owned online brokers in the category as well as the type of offers in play.

The new month has already seen deals from BMO InvestorLine launch and as of publication of the Roundup, a new promotion from Qtrade Investor.

Most of Canada’s online brokers have come to market with cash back offers which suggests they mean business when it comes to getting the attention of DIY investors.

In particular, the battle between bank-owned brokerages CIBC Investor’s Edge, Scotia iTRADE, and BMO InvestorLine is a fierce one with the latest offer by BMO InvestorLine narrowly edging out competitor deals in each of the deposit tiers except for the $500,000 mark (at which point they’re tied with Scotia iTRADE).

For the non-bank-owned online brokerages as well as the smaller bank-owned online brokers, however, competing against the bigger players is going to be especially difficult. In the absence of blockbuster features (like the one that RBC Direct Investing rolled out at the end of 2019), the options for competing online brokerages are limited. Nonetheless, Qtrade Investor’s latest offer appears to hold its own in several deposit tier categories – and even is higher than the largest online brokerage in Canada, TD Direct Investing.

Of course, for those that are on the sidelines, there is always the ‘nuclear’ option of dropping commission prices substantially to get attention this RSP season. As we’ve witnessed already this year (in 2020) there is one online brokerage that has dropped commission rates lower AND offered up a commission-free trading bonus, so it is possible to do both, however the first challenge of getting on the radar of investors is a unique hurdle that less popular online brokerages have to overcome.

With the RSP contribution deadline now just a few more weeks away, it will be interesting to see if any online brokerages not currently offering up either a cash back or commission-free trade offer will step forward and what they will step forward with. It is highly likely that we will see more offers in the next few weeks so we’ll keep monitoring this increasingly active space.

Desjardins Online Brokerage Drops Commission Prices

Snow and temperatures aren’t the only things falling to start 2020, prices for online trading are also coming down. Even though it took a while for them to respond (they also may have been dealing with that whole data breach thing too), Desjardins Online Brokerage finally found a way to counter the incredible commission price drop launched last year by their crosstown rival National Bank Direct Brokerage.

To start, the standard commission for Desjardins Online Brokerage has been reduced from 9.95 per trade down to 6.95 per trade. Compared to National Bank Direct Brokerage, this works out to a slightly better deal since only National Bank clients receive the $6.95 per trade pricing. Standard pricing at National Bank Direct Brokerage is still $9.95 per trade.

For active investors, however, Desjardins Online Brokerage really dropped the gloves on National Bank Direct Brokerage by beating them the commission price for this lucrative customer. For active investors, defined at Desjardins Online Brokerage as those who trade at least 30 times per month, commission pricing has dropped to $0.75 per trade. At National Bank Direct Brokerage, the rate for active investors (defined as those who trade at least 100 times per quarter) is $0.95 per trade. Thus, on both the cost per trade as well as the hurdle to qualify, Desjardins Online Brokerage has come out ahead – at least for equities trading. For options trading, however, the required minimum charge for active investors at National Bank Direct Brokerage is $8.20 which is cheaper than the minimum charge at Desjardins Online Brokerage at $8.75.

For investors aged 30 or younger, National Bank Direct Brokerage still holds an edge over Desjardins Online Brokerage. NBDB offers younger investors a $4.95 per trade commission rate as well as 10 commission-free trades per year. By comparison, Desjardins Online Brokerage has their “Broker@ge 18-30” offer which has 5 commission free transactions (one time). Clearly, there is still some work to do for Desjardins Online Brokerage to catch up to National Bank Direct Brokerage for the younger investor segment. However, this latest series of price reductions by Desjardins Online Brokerage highlight another important storm brewing in the Canadian online brokerage space.

While it is an open secret that no major Canadian online brokerage wants to be the first to lower their commission rates to zero, the reality is that the price brawl between Quebec’s largest online brokers could spill over into other parts of Canada too. The price drops for active investors make sense as a starting point, since active investors will certainly be inclined to trade more volume but also subscribe to data packages and trading platforms as well as to dabble in options trading. Keeping these customers happy is crucial as they are the most savvy of what’s going on in the online brokerage world. Ultimately, however, it is a matter of time before mainstream investors get access to lower standard commission rates.

With Desjardins Online Brokerage lowering their active trading commission rates down to $0.75 per trade, the Canadian discount brokerage industry is plumbing new lows for commission rates (Wealthsimple Trade excluded). While the major Canadian online brokerages are still likely to take a wait and see approach, the smaller players are already flashing signs of what is needed to compete in a world where zero commission stock trading is a reality for millions of investors.

Lowering prices may not be fun for Canadian online brokers, but the price of leaving commission prices higher than everyone else seems like it’s going to be more costly in the long run.

RBC Direct Investing Gets Real

An investor is going to be only as good as the information they receive. When it comes to DIY investing, one of the biggest challenges investors face is finding convenient access to the prices of stocks they’re invested in and those they’re following. For most DIY investors, delayed quotes or ‘snap quotes’ (the kind you get from hitting refresh on your browser) were the norm unless you were prepared to pony up significant fees for streaming data.

Last month, however, RBC Direct Investing unveiled an incredibly valuable feature for DIY investors – streaming real-time quotes – at no additional cost and with no trade minimums required to access this feature for free.  Unlike most of their peer firms, streaming real time quotes are not part of the standard offering. Interestingly, as a shift has taken place in website formats to only display a minimum amount of information on websites, finding information on platforms and data has become a bit more challenging than it historically used to be. One possible reason for this is because “most” users aren’t really active traders and it would therefore be less of a prominent feature to talk about or make space for on a ‘minimalist’ design website. Nonetheless, a quick scan of other online brokerages shows that TD Direct Investing offers snap quotes as does Questrade, however the streaming option at both of these brokerages will cost extra. On top of providing free access to streaming quotes, one nice touch that cuts down on the amount of paperwork is that there aren’t any additional agreements that are required to be signed with the exchanges from which data is being pulled. This simply means it’s easier to get going for existing clients and potential new clients who wouldn’t really have wanted to go through the hassle of a feature they wouldn’t likely use.

Of course for Canadian DIY investors, the upside here is that while RBC Direct Investing’s commission prices are still at the standard levels, there is certainly more value to be gained with these features now in place. It is unlikely that the ultra-active investors or day traders will need or want to sign on to RBC Direct Investing for this kind of feature, but for moderately active or curious passive investors, this is certainly a ‘nice to have’ feature that can provide additional context on investing opportunities.

Certainly, features that improve the ability of investors to make better-informed decisions are welcomed. Of course, it is equally important for any investors who now have more convenient access to the flashing numbers and colours that accompany real-time information to exercise caution and discipline when pursuing a trading opportunity.

Into the Close

That’s a wrap on the reboot to the Weekly Roundup. There’s lots of action taking place for investors to digest to start the new year. A heads up to investors in Vancouver to check out the annual Vancouver Resources Investment Conference for a look at mining-related investment opportunities as well as for some fun investor content. Stay warm out there and for those contemplating account openings, this is the time of year to go shopping for a bargain. Good luck and have a profitable start to 2020!