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Desjardins Bank

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Discount Brokerage Weekly Roundup – March 20, 2015

This past week heralded the strangest and rarest of events. No, it wasn’t the solar eclipse or an upset in the NCAA basketball tournament; it was actually the arrival of Spring – in theory.  It was fitting that the lead up into Spring saw a celebration of green for St. Paddy’s day at the beginning of the week and having the markets have a green day to end off the week. The shamrocks and markets weren’t the only green making waves this week, however, as a few ‘green’ discount brokerages were also busy making headlines.

In this week’s roundup, we start by looking at where discount brokerages are stepping up their game 140 characters at a time. Next we take a look at an article about Canadian brokerages and investors with commitment issues – just in time for wedding season. Of course, we’ve got another deal update to add to the list after which we’ll take a look at the upcoming investor education events and close out with a look across the investor forums.

#SocialMediaMatters

As we reported several weeks ago, the social media presence of Canadian discount brokerages has started to ratchet up. Credential Direct and TD Direct Investing have stepped into Twitter in a noticeable way, joining Questrade, Scotia iTrade and Virtual Brokers.

This past week, however, discount brokerages on Twitter showed yet again that they’re evolving quickly to understand how this medium works and how to be relevant in an increasingly busy online medium.

Both ‘big green’ (TD Direct Investing) and little green (Questrade) were spotted getting some major attention from online DIY investors.

Starting first with Questrade and their “What Are You Investing For” contest. Looking at the number and types of responses that Questrade received from the Twittersphere, this recent promotion signals that people are paying attention to Questrade in a major way.  Of course, for their part, Questrade made it compelling by offering up the prize of an Asus tablet so naturally one might expect more interest than if Questrade simply asked the question without the possibility of a prize. One thing that does stand out, however, is that other brokerages aren’t (yet) doing the same thing.  In fact, when it comes to social media (including forums), there are few corners where Questrade does not have a presence (their career team is even on Instagram).

Another interesting angle in the brewing social media battle can be seen with activity this past week from TD Direct Investing.  Specifically, the power of reach.  Although TD Bank has a massive following on Twitter, TD Direct Investing does not have it’s own central account from which it tweets.  Instead, it has taken the rather unique approach of mobilizing a wide number of its employees to start broadcasting TD Direct Investing content.  This past week, TD Direct Investing held an investor education webinar on swing trading and landed a rather large crowd interested in the topic – almost 8,000 folks. While close to 300 attended the live event, what was interesting were the tweets leading up to, during and after the event.  There were interesting/pun-laden graphics ahead of the event, lots of TD folks tweeting about it, lots of people talking about and compliments dished out after it.

The big questions for most DIY investors comes back down to ‘so what?’ What does it matter if a brokerage is on Twitter or not?

In the case of all the discount brokerages currently on Twitter, they understand that responding to people on the social media channels provides a different kind of convenience and a transparent service that takes time to get right. For younger or more tech savvy users, Twitter is a great way to connect directly with a service provider to get an answer to a query or resolve an issue without having to stray far from a news feed or to use another screen (or, God forbid, the phone).

For DIY investors, whether or not they’re clients of a particular brokerage, the content being pushed out by these brokerages is free and accessible.  In the case of TD Direct Investing, finding out about these kinds of educational events via Twitter can help investors informed in a way that traditional media or Google news don’t quite do.  There’s also a whole other kind of research on client service that is possible now that was never really accessible to investors.  Seeing how each brokerage handles itself in the face of complaints or accolades is how consumers make their judgements.

While it might have taken some time for TD Direct Investing to get on board the #HashtagTrain, now that they are actively creating a presence for themselves, the brokerages already on Twitter will now have to (once again) step up their game. Those brokerages not on social media (and those on ‘autopilot’) have a real challenge ahead to step up.  For DIY investors, that kind of competition between brokerages is likely to result in a whole new level of content and creativity which will probably be worth tuning into, at least for a fleeting moment or two.

House of (Prepaid) Cards

Questrade has launched yet another promotion into its suite of current offers.  On the heels of the expired iPad mini promotion, Questrade has revived and slightly tweaked their prepaid Visa card promotional offer.  In their current offer there are now four gift card denominations (ranging from $50 to $250) that are associated with four tiers of deposit amounts ranging from $5,000 to $100,000.  While deposits are required in order to be eligible, it is also interesting to note that clients are also required to make at least one commission-generating trade in order to qualify for the gift card. Thus, while the face value of the gift card is $50, $75, $100 or $250, be sure to factor in the value of a commission-generating trade which can be anywhere from $4.95 to $9.95 (plus applicable fees).  Click for more details on Questrade’s most recent promotion and other online brokerage deals.

Mind the Exit

One of the considerations when choosing an online brokerage is what happens if or when things don’t quite work out. While most Canadian discount brokerages do impose a ‘transfer out’ fee for clients who ask to have their account transferred to another entity, ironically most brokerages are also willing to pay the transfer fee (of between $135 – $150) for clients transferring money into a new account.  Those most impacted by the transfer fees are individuals with less than $15,000 to $25,000, since these are typical deposit thresholds that individuals must be transferring into a new institution in order to qualify for a transfer fee rebate.

In a recent article (available to paid subscribers) by Globe and Mail personal finance columnist and leading voice on Canadian online brokerages, Rob Carrick, he discusses some of the important considerations about transfer fees that individuals should keep in mind when shopping for an online trading account.

One of the interesting points of the article was that if there is the opportunity to test drive a brokerage account via a free trial, it would offer a better idea of the platform and user experience of navigating the broker’s online interface.

Event Horizon

March 21:

Scotia iTRADE – Top Global Investment Themes for 2015 – Larry Berman Roadshow Niagara Falls, ON

March 24:

TD Direct Investing – Stock Talk

Scotia iTRADE – Options Trading For Beginners with Sarah Potter

TD Direct Investing – Introduction to Investing in Options

TD Direct Investing – Understanding Margin & Short Selling

March 25:

Desjardins Online Brokerage (Disnat) – Trading ETFs with Desjardins Online Brokerage

Scotia iTRADE – Options As A Hedging Strategy Using Call Options with Montreal Exchange

March 26:

TD Direct Investing – Evolution of Indexing

TD Direct Investing – Introduction to Investing in Options

From the Forums:

TD Waterhouse RRSP

Finding the right kind of account to get access to popular investment products is something that can be a tad confusing.  In this post on RedFlagDeals’ investing forum, one user gets a little help from the community when wondering how best to start off with a modest RRSP.

To BMO or not to BMO

Sitting on the fence about a brokerage is a common moment for many DIY investors.  In this post from the Canadian Money Forum, one new investor is looking to map out a path through mutual funds and ETFs and is wondering if BMO InvestorLine is the right option.  Check out the perspective of the other investors when it came to staying on board or jumping ship.

Drip by Drip

Slow and steady wins the race. Using dividends to build wealth over time is a tested strategy that many DIY investors buy into. In this post from Canadian Money Forum, one user wants to know a bit more detail about using DRIPs at Canadian discount brokerages.

That’s it for this week’s roundup.  To cap off the ‘social media’ theme, here is a great story of how spreading the message #OdinBirthday on social media gave one 13 year-old boy an awesome way to start the weekend and a birthday to remember. Enjoy the weekend!

Edited March 21/15

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Discount Brokerage Weekly Roundup – March 6 2015

With daylight savings coming to an end, it’s time to spring forward.  Time is definitely on the minds of many this weekend as we let our smart devices put our microwaves and wall clocks to shame by self-updating, but also because of Apple’s big iWatch reveal on Monday.  Speaking of time, Canadian discount brokerages now have a bit more of it with RSP season now in the rear-view mirror.  The break won’t last too long, however, with tax season gearing up, we think Canadian discount brokerages will also be looking to roll out some big announcements of their own very soon too.

In this week’s roundup we rock up to a new month by taking a quick look at the new Spring line of deals and promotions. Next we check out a discount brokerage that got recognized for its call centre,  take a quick trip through the upcoming investor education events for March and finally cap off with some interesting discussions from the investor forums.

Deals March On

After the frenzy of offers in February, March has definitely slowed down in terms of discount brokerage deals and promotions. In our latest deals & promotions post, we take a look at what was left after the dust settled on the RSP-oriented offers.

Despite 8 deals having expired between the last week of February and first week of March, at least one brokerage extended an offer to the end of the month and two brokerages, Questrade and Qtrade, decided to replace expiring offers with new ones. For those keeping score at home that brings the deal tally to 17 (18 if you count the contest offering from Qtrade) at the time of writing which is considerably less than the 26 or so offers/promotions that showed up for February.

This past week one promotion from HSBC InvestDirect and two from Questrade expired.  RBC Direct Investing has chosen to extend their 20 free trade offer until March 31st, likely to compete directly against TD Direct Investing’s offer that runs until late March.

Look for March to be an interesting month for deals because so many offers are timed to expire at the end of the month.  While the most likely outcome is for offers to start getting extended, we can’t help but think that some sizeable promotions with longer deadlines will make an appearance before month’s end.  For more updates on the latest discount brokerage deals, be sure to check the deals & promotions section through the month.

Scotia iTrade Recognized for Call Center

In an announcement earlier this week, Scotia iTrade’s call center performance was recognized by call center research firm Service Quality Measurement Group (SQM).  The award received by Scotia iTrade was the “Gold” Call Center First Call Resolution (FCR) Best Practice Award. Winners of the “Silver” and “Bronze” for this category of award were Regence BlueCross BlueShield and Canadian Tire Financial Services/Millenium1 Solutions.  (click here to view a list of all the 2014 SQM Call Center Award winners)

The award received by Scotia iTrade is part of a broad set of awards given out by SQM to recognize strengths in key areas of running a call center.  In particular, the recognition for their “performance management system” was evaluated on how their management system (the structure by which Scotia iTrade tracks and measures call center performance) improves key metrics such as first call resolution (i.e. properly answering client questions on the first call) among others.

As with other brokerages who earn distinctions in certain categories, it is important to understand what the award actually means/recognizes and how that measure was determined.  In this case, according to the SQM website, submissions for this best practice award were evaluated by 6 subject matter experts.  Thus, while Scotia iTrade has been recognized for having strong call center client service operations, that does not necessarily translate into a better/worse performance relative to their online brokerage call center peers.

Event Horizon

There are a number of interesting investor education events taking place in March.  Scotia iTrade is holding a number of events in partnership with the Independent Investor Institute (headed by Larry Berman).  TD Direct Investing looks to be placing a focus on options education events.

March 7 – Scotia iTRADE – Trading with the Expert with Ziad Jasani

March 8 – Scotia iTRADE – Top Global Investment Themes for 2015 – Larry Berman Roadshow Markham, ON

March 9 – Scotia iTRADE – Trading with the Expert with Ziad Jasani

March 10 – NBDB – Take Advantage of Margin Accounts – [Fr]

March 10 – Scotia iTRADE – ETF Model Portfolios with Horizons ETFs

March 10 – TD Direct Investing – ETFs 101 – Everything You Ever Wanted To Know About ETFs

March 11 – Scotia iTRADE – Options Trading – A Directional Bias with Montreal Exchange

March 11 – Desjardins Online Brokerage (Disnat) – Options, Indispensable in Today’s Markets

March 11 – TD Direct Investing – Introduction to Investing in Options

March 12 – Scotia iTRADE – Top Global Investment Themes for 2015 – Larry Berman Roadshow Ottawa, ON

March 12 – TD Direct Investing – Introduction to Investing in Options

From the Forums

Bueller, Bueller

Sometimes asking a question to a busy forum such as Red Flag Deals actually nets no replies – even in spite of how many views a post may get.  This is a rare situation but perhaps interesting given the question that was asked regarding BMO InvestorLine’s AdviceDirect product.  BMO InvestorLine has been actively advertising to raise awareness of this product however as this forum post shows, there still might be a ways to go before investors are interested.

Bystander Effect

On the other end of the community wisdom spectrum, this post, also from Red Flag Deals’ investing section, demonstrates that sometimes asking a question instead of doing a little bit of searching first means that either the question isn’t appealing or, as was the case in this post, the question has been answered time and time and time again.

That’s a wrap for this week’s roundup.  With Apple bookending the weekend by with the announcement on Friday that they’re being added to the Dow Jones Industrial Average (and displacing AT&T in the process), and on Monday announcing more details on their iWatch, it seems like a sign of the times we live in. Who we use to communicate with isn’t as compelling as what we use to communicate with. Instead of reaching out and touching someone, it looks like the world is more about reaching out and touching a screen. On the bright side, at least the thing will update itself.

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Discount Brokerage Weekly Roundup – February 20, 2015

View image on TwitterIt’s not often that a haircut makes the news. For a change, however, it isn’t the haircut that Greece’s debt holders are going to take – this one comes from North Korea’s Kim Jung Un. So, what does a head of hair from a head of state have to do with Canadian discount brokerages (you might be asking)? This past week they’ve both been taking Twitter by storm.

 In this week’s roundup we’ve pulled together an interesting assortment of news and observations from Canadian online brokerages. First, we take an in-depth look at the latest promotional offer to be launched in an already crowded deal space. Next, we piece together something interesting that’s been happening on Twitter and provide an example of how this social media channel is one DIY investors will want to tune into. On the home stretch we’ll take a look at the official launch of one online brokerage’s new website, cruise through the upcoming investor education events and close out with a look at some interesting developments in the investor forums.

 Credential Direct Deals Themselves In

After standing on the sidelines of the discount brokerage deals and promotions melee, Credential Direct has stepped in swinging with their latest offering.  Along with Credential Direct, Questrade also added a pair of promotions, bringing the total number of advertised Canadian discount brokerage deals to 26.

While Questrade’s newest offers means that they retain the title of offering the most promotions of any discount brokerage, seeing Credential Direct step into the deals and promotions space is going to ruffle a few feathers with their competitors.

Credential Direct’s latest promotion, launched earlier this past week, offers new or existing clients either a cash-back or commission credit amount that varies with the size of the portfolio deposit.  While the cash back and commission credit amounts are in line with offers from CIBC Investor’s Edge and Questrade, what sets this offer apart is the deadline to use the trades (only trades used by September 30 are eligible for rebate) and the tiers of deposit.

Previous to the launch of Credential Direct’s latest promotion, only Scotia iTrade had an advertised deal for deposits of $500,000 or more. With this new deal, however, Credential Direct has now joined the relatively few brokerages that are pitching promotions aimed specifically for clients depositing more than $100,000. And, it is in this category that the Credential Direct offer stands out. Credential Direct is offering unlimited commission-free trading (until the end of September) for clients who deposit $500,000 or more whereas a similar deposit from Scotia iTrade would land 500 commission-free trades.

It warrants mentioning, however, that Questrade also has an unlimited commission-free trading offer with a minimum deposit of $50,000. The dramatic difference in deposit amounts for commission-free trading offers means that both Questrade and Credential Direct are going to likely get compared on how well they each cater to the active trader – the most likely kind of client to take advantage of the commission-free trades. For the brokerages not advertising something ‘special’ to clients bringing in bigger deposits (i.e. >$250,000), they will likely have to come up with something noteworthy just to be seen as ‘keeping up’.

#LookAtMeNow

Although discount brokerages being on Twitter is not something new, there is definitely something interesting happening on the social media network.

This month, Credential Direct looks to have officially stepped into the social media space by launching their own Twitter account and TD Direct Investing, one of the largest Canadian bank-owned brokerages, has stepped up their efforts on Twitter.

Most Canadian discount brokerages (and probably many Canadian investors) are still skeptical of Twitter’s utility.  Online brokerages currently on Twitter include Interactive Brokers (although this account is not Interactive Brokers Canada exclusively), Jitneytrade, Questrade, Scotia iTrade and Virtual Brokers. Of that group, it’s fairly clear that Questrade and Scotia iTrade have been the most active for the better part of the past two years.  All that may change, however, now that Credential Direct and TD Direct Investing are stepping in.

In particular, while Credential Direct has just one account, TD Direct Investing appears to be deploying multiple individuals in the service of broadcasting their message. From a user’s perspective, this might make it cumbersome to follow several different TD Direct Investing related Twitter accounts (we’ve made a list which can be subscribed to here) however from the other brokerage’s perspective, this is definitely a cause for worry.

The big question for self-directed investors, however, is ‘so what?’  Does Twitter even matter?  The answer is increasingly ‘yes’. In 2015, Twitter has now become the news, with as many news agencies reporting about what’s happening on Twitter as there are Twitter users tweeting about the news.

Twitter has become one of the ‘go to’ resources for breaking news, a place to vent, and a way to connect.  In a previous piece on discount brokerages on social media, we highlighted that Twitter is a valuable resource to find out about breaking news, outages, deals or new developments even before any of these hit the mainstream media.

For online brokerages, Twitter also is a place where clients come to voice their concerns or, more rarely, sing the praises of great client experience. DIY investors curious about what it is like to deal with client service at a particular brokerage can simply scan the Twitter feed of any of the brokerages (caution: some of the more colourful comments are definitely NSFW) and review the conversations between client and provider.

The latest moves by TD Direct Investing and Credential Direct signal that Twitter is about to become a new arms race. In this battle, victory goes to the most interesting, not necessarily to the biggest player. Questrade was able to pull this off in the lead up to their launch of the wealth management unit. Going forward however, the new entrants and the existing players will have to step up their collective game 140 characters at a time if they want to earn the interest and attention of DIY investors.

TD Direct Investing now Offers Online Trading with the CSE

As a segue from talking about the value of Twitter, this past week showed the value in finding out some valuable information via the social media channel.  This week there were a number of interesting tweets from the TD Direct Investing team about WebBroker (their online trading platform) being able to trade CSE-listed securities.  The reason these tweets are interesting is because there have been no official announcements/news releases from either the Canadian Securities Exchange or from TD Direct Investing on this demonstrating, at least on this occasion, that Twitter can move faster than PR departments sometimes can.  A quick check of the TD helps community forum also confirmed the new development – although even internally there seemed to be some disconnect between features being enabled and front-line staff finding out about it.

With TD now connected to the CSE, the vast majority of Canadian discount brokerages are patched in and DIY investors can trade CSE listed securities directly from their online trading platforms (instead of having to phone in).

Desjardins Online Brokerage’s New Website Launched

As we had reported last week, Desjardins Online Brokerage had scheduled the roll out of their new website before the end of February.  Their new website officially went live on February 18th and, as was mentioned in our preview of the site, it is a major upgrade from their prior site and raises the bar design-wise on most of the other online brokerage sites in Canada.

 

Event Horizon

Here are this week’s learning opportunities, enjoy!

Feb. 21 (Sat) TD Direct Investing – Introduction to Fundamental Analysis

Feb. 23 (Mon) Desjardins Online Brokerage (Disnat) – Discover the Benefits of the TFSA

Feb. 23 (Mon) TD Direct Investing – Market Outlook – Winter 2015

Feb. 25 (Wed) TD Direct Investing – Understanding Margin & Short Selling

Feb. 25 (Wed) Scotia iTRADE – Options Fundamentals with Montreal Exchange

Feb. 26 (Thurs) TD Direct Investing – Understanding Margin & Short Selling

From the Forums

This past week there was a very interesting development in the investor forums.  One of the more popularly discussed brokerages, Virtual Brokers, joined RedFlagDeals and actually responded to a client complaint.  While Questrade has been dutifully covering all kinds of forum/social media ground, this marks a rare occasion that Virtual Brokers has decided to engage with clients on this particular forum.  The topic – whether fractional shares after a reverse split would be issued – is a very interesting discussion in and of itself and is worth a read to see how it played out.

That’s a wrap on this week’s roundup. While the snow packs may be keeping many folks indoors (not so for the lucky West Coasters), there’s a silver lining that at least the Oscars will be on.  Ironically, of course, a lot of interesting reaction and perspective will be able to be seen on Twitter. #GoFigure #HaveAGreatWeekend

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Discount Brokerage Weekly Roundup – February 13, 2015

If Friday the 13th was supposed to be an unlucky day, somebody forgot to tell stock markets.  Heading into Valentine’s Day weekend bullish investors saw fifty shades of green as they pushed markets to a record high close, yet again. Fittingly, Canadian discount brokerages were also out looking for love from DIY investors offering up just about everything but flowers and chocolate.

In this week’s roundup there’s no shortage of excitement to report on.  We start by highlighting the bombshell news from a bank-owned brokerage determined to return to the spotlight. Next we’ll take an exclusive look at one brokerage’s game changing webpage makeover and what that means for other brokerages. Technology is the next treat served up by an independent brokerage and finally we take a look at the award bling one brokerage is now sporting on their homepage.  As always, we’ve also got a tour through the upcoming educational events and the buzz around the investor forums.

CIBC Investor’s Edge Sends Commission Fees on Spring Break

This past week, CIBC Investor’s Edge has, yet again, launched a pricing feature so big that it can’t be ignored.

Specifically they announced that between February 12th and March 31st 2015 they are offering commission-free trading on almost 2000 ETFs to all clients. For perspective, the other Canadian discount brokerages that offer completely commission-free ETF trading clock in at 150 (Virtual Brokers), 60 (Qtrade) and 50 (Scotia iTrade). CIBC’s offer, albeit a limited time one, definitely stands head and shoulders above the other commission-free offers and highlights how creative brokerages are prepared to get now that overall commission prices have fallen.

For CIBC Investor’s Edge the timing of this move is borderline surgical. It is a great incentive for individuals looking to open an online trading account to consider CIBC and is a bonus to anyone who has an account with ETFs to re-balance at little to no cost.  Because the offer extends well beyond the March 2nd RSP contribution deadline, the benefit of commission-free ETFs is still practical.

To boot, there are only a handful of important restrictions and exceptions.  First, the minimum transaction amount is $100.00. Second, many of the popular leveraged ETFs are not eligible for this promotion (sorry double and triple bull/bear fans). Finally, there’s also a minimum holding period of at least one business day.

We’ll be tracking the reaction from this offer as it is bound to make waves with the other bank-owned brokerages and the commission-free ETF crowd.  The only solace for competitor discount brokerages is that this is a limited time offer – for now.

Desjardins Online Brokerage Set to Launch New Website

This past week SparxTrading.com got an exclusive first look at Desjardins Online Brokerage’s soon-to-be-launched new website. While a new website at a Canadian brokerage is noteworthy, many if not most of Canada’s discount brokerage websites are starting to look and feel dated.  Such is the reality of the digital age.

The challenge for many online brokerages is to appear both innovative and stable all at once.  After all, too much change too often and clients can’t keep up. Too little change and a brand goes from being viewed as a laggard to criticized for not keeping up with the times.  With the website being the crucial touch point for both existing and prospective clients, what it looks like and how it functions matter.

What makes Desjardins’ release particularly strategic is that in design and function it has done something bold and distinctive. Their new website positions Desjardins Online Brokerage as particularly astute at considering user experience.  Crucially, individual investors of today will look at online experiences as extensions and markers of client experience.

Previews of the homepage are available in our sneak peek and more images are available at their website here.

Questrade Launches API

Earlier in the week Questrade’s blog announced the release of an API for individuals to develop apps that interface with Questrade’s IQ trading platform.  For the highly technical DIY investor or app developer, this new level of accessing Questrade and its trading engine mean that there are going to be some creative customizations to the platform in the not-too-distant future.

This is a particularly bold step from this online brokerage as they join only a handful of brokerages (Interactive Brokers being another) that enable external applications to interface with their trading platform and/or market data feed.  In the most compelling form, this paves the way for programmatic/algorithmic trading via their platform.

Victory Lap

Just about a month after they were announced as one of the best online brokerages for client service (by Dalbar Canada), HSBC InvestDirect was spotted this past week flashing their awards. Fellow award winner RBC Direct Investing has, curiously, not yet posted something similar.

Screenshot of HSBC InvestDirect website with their Direct Brokerage Service Awards.

Event Horizon Feb. 13, 2015

Feb. 17 (Tues) Scotia iTRADE – Options for Long(er) Term Stock Positions

Feb. 17 (Tues) NBDB – Introduction to Put Options – [Fr]

Feb. 17 (Tues) NBDB – Enhancing Yields and Cash Flow in Your Stock Portfolio

Feb. 18 (Wed) TD Direct Investing – Introduction to Technical Analysis

Feb. 18 (Wed) TD Direct Investing – Options as an Income Strategy

Feb. 18 (Wed) TD Direct Investing – Advanced Indicators

Feb. 18 (Wed) Scotia iTRADE – Investing in Rising Interest Rate Environment with iShares

Feb. 19 (Thurs) TD Direct Investing – Building Wealth Through Registered Accounts

Feb. 19 (Thurs) Scotia iTRADE – Head and Shoulder Patterns with AJ Monte

Feb. 20 (Fri) TD Direct Investing – Introduction to Technical Analysis

From the Forums

CIBC Investor’s Edge Commission-free ETFs Winning with Investors 

New Account RSP bonuses 

Are Level 2 Quotes Worth It?


That’s a wrap for this week’s roundup.  Have a great weekend in spite of what movies you may or may not have to watch.

 

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Exclusive: Sneak Peek at Desjardins Online Brokerage’s New Website

Exclusive first look at the new homepage for Desjardins Online Brokerage’s new website

The big story for Canadian online brokerages in 2014 was undoubtedly lower commission pricing. For 2015, however, it appears that Desjardins Online Brokerage has clearly cast user experience and design into the spotlight as they prepare for the launch of their newly redesigned website.

SparxTrading.com was fortunate enough to get an exclusive first look at Desjardins Online Brokerage’s new website and, by all accounts, their new website raises the bar for their discount brokerage peers to step up in both function and form.

One Step at a Time

The new Desjardins Online Brokerage website is another iteration in a coordinated series of improvements to their online user experience.

Last year, for example, they released a newly designed investor education calendar that appeared to presage this new look and feel.  Further, in our profile of Desjardins Online Brokerage, Vice President and General Manager Laurent Blanchard revealed an upcoming refresh to the website was in the works.

As a firm that prefers to discuss features that they are confident they will deliver on, the suggestions of a new website have been few but present for those paying attention.  According to internal sources, the Desjardins team are both proud and excited for the upcoming milestone launch of the new site which is scheduled to go live by the end of February 2015.

Walking the Online Walk

The irony of succeeding as an online brokerage is that you not only have to be able to succeed on the transactional side (i.e. provide the service of online brokerage), but also demonstrate that you understand and can respond to the constant evolution of being online. As the storefront of their online presence, the look, feel and performance of a website will definitely factor into what visitors think of the brand and whether or not ‘they get it’.

While many of Canada’s online brokerage websites don’t get it ‘wrong’ per se, so few have embraced what the US online brokerages already have in terms of simplified design and function for a multi-screen world.

The drastic design difference between Desjardins Online Brokerage’s new website and anything at other Canadian discount brokerages, however, may spur competitors to pay attention to the importance of what a site looks and feels like in today’s world. If, for some reason, it does not, there’s all kinds of data to suggest consumers will choose to use a better designed product (just ask Apple).

New Features

In form and function, Desjardins Online Brokerage’s new website has several important upgrades over their current site.

First, finding information is much easier. The design elements on the new website help make information easier to spot and easier to retrieve. Using the blocked design (e.g. putting things in squares) makes viewing the website on a tablet or mobile device easier and substantially more efficient to navigate.

The top and bottom menus are clear, intuitive and well-spaced out.  There is a manageable number of choices (five) with the most important for most DIY investors (finding out about fees and getting in touch with client service) easily accessed from the top menu.

Top menu on new Desjardins Online Brokerage website

Another defining feature is accessibility to investor education.  Desjardins Online Brokerage is one of a few Canadian brokerages that has invested heavily in investor education and their homepage layout clearly reflects that. The new website clearly positions educational events and investor education video content prominently on the bottom of the page.  This means that clients and non-clients alike can view this information easily and quickly.

Investor education section on the new Desjardins Online Brokerage website

Finally, it’s just interesting to look at. The prominent video background of a fictional investor named ‘Nicolas’ is definitely eye-catching however there is also a very slick market data and stock quote interface that invites users to look up a symbol via Desjardins’ website. Mixed in with the thoughtful visual elements, there is also a good balance between static and dynamic content as well as sections that can slide open or closed.

As is often the case with good design, the devil is in the details. Paying attention to design reflects a well-thought out, user-focused experience however against limited time and finite resources there’s inevitably things still to do. In the case of Desjardins’ website, one of those key pieces will be enabling online account opening. While they’ve acknowledged it’s on their list of features to implement, in the interim, the new website will offer some improvements to the current form-based process.

The Bottom Line

For a Canadian financial services firm, especially one tied to online investing, to capture the look and feeling of being ‘current’ is noteworthy.  More importantly, however, the new Desjardins Online Brokerage website has shone a light on the importance of translating website user experience into what people think about the brokerage.  The new website reflects the broader trend with current websites generally: that paying attention to users matters. With the noise of commission pricing now fading, creating a great end-to-end experience is a message other Canadian brokerages will start to receive loud and clear.

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Discount Brokerage Weekly Roundup – February 6, 2015

Canadian discount brokerages are hitting February at full speed. With a slew of deals, events and the roll out of new features it doesn’t appear like very much will be slowing down the activity at Canada’s brokerages.

In this week’s roundup we cover the ramping up of the new feature launch at one of Canada’s oldest discount brokerages, a highlight reel of deals and promotions to kick off the month, a tour through the educational events taking place in February and finally a new twist on an old favourite in the forums.

On a Roll

Late last year Desjardins Online Brokerage quietly unveiled their conditional order feature. This past week, they were not so quiet any more as the front page of their website announced the presence of this feature and the official roll out to both the Classic and Disnat Direct clients.

According to their website, the conditional order settings available via Desjardins Online Brokerage include:

  • A trade execution triggers one or more orders
  • A trade execution triggers one or more cancellations;
  • An event triggers one or more orders.

Included on the landing page explaining the conditional order types are also three video tutorials (also viewable on YouTube) that provide additional detail on how these order types work and can be used on the Disnat trading platform.

In both the year in review/look ahead article and the video interview with Desjardins Online Brokerage, 2015 was flagged as a year in which a number of new features and upgrades are coming.

Be sure to check out SparxTrading.com next week as we have an exclusive first look at another one of Desjardins’ major new projects for 2015.

New Month New Deals

One of the biggest stories from January was just how many promotional offers were being put forth from Canadian discount brokerages. The competition for consumers has certainly paid off as there are now 21 open offers on our deals page as well as additional special offers and contests not listed.

Just how do the offers stack up? This month the deals picture is somewhat unchanged to last month. The count of offers at each brokerage shows Questrade as the most active in terms of promotional offers with at least seven followed by BMO InvestorLine with four and Scotia iTrade with two. All other brokerages had one offer.

Count of Canadian discount brokerage deals for February 2015

Of all the Canadian discount brokerages Questrade is aggressively pursuing clients as seen in their promotional activity, advertising and outreach efforts in most of the Canadian investor forums, Twitter (and reddit). With ultra-low pricing on their side as well, the other Canadian brokerages are going to have to become much more nimble in order to keep pace.

It’s worth mentioning that Qtrade Investor does have a contest running but was not included in this list because it does not meet the standard criteria for commission rebate/credit or reward.

Also, thanks to a user comment from Kris, we’ve updated the transfer fee promos section to include an offer from CIBC Investor’s Edge that wasn’t posted on their website but was confirmed by their client service reps.

Event Horizon

This upcoming week features a number of free investor education events, with a particular focus on options trading. Click on a link below to find out more information.

Feb. 10 (Tues) NBDB – Introduction to Call Options – [Fr]

Feb. 10 (Tues) Scotia iTRADE – Transitioning to an ETF Portfolio with Horizons ETFs

Feb. 10 (Tues) TD Direct Investing – Introduction to Investing in Options

Feb. 11 (Wed) Scotia iTRADE – Options Trading and Volatility with Montreal Exchange

Feb. 11 (Wed) TD Direct Investing – Advanced Options

Feb. 11 (Wed) TD Direct Investing – Option Strategies for your RSP and TFSA Accounts

Feb. 11 (Wed) TD Direct Investing – Building Wealth Through Registered Accounts

Feb. 11 (Wed) TD Direct Investing – Technical Analysis – Candlestick Charting

Feb. 11 (Wed) Desjardins Online Brokerage (Disnat) – Options Trading Mistakes to Avoid

Feb. 12 (Thurs) NBDB – Learn About Investment Basics – [Fr]

From the Forums

This week’s from the forums section, we’re going to try something a little different. We’ve collected some interesting threads from the past week that are related to discount brokerages. The threads have been summarized in our corresponding community sections. Click on the links below to view them.

That’s a wrap for this weekend. No matter if you have a snow shovel or umbrella to fight the elements, stay out of trouble and see you next week. Of course if you somehow don’t manage to stay out of trouble, here’s a guy who knows some guys.

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Review: Dalbar Direct Brokerage Service Evaluation 2014

For Canadian discount brokerages, the idea of providing great client service is a moving target. Not too long ago service used to refer to the ‘offline’ world and meant having a face-to-face interaction at a branch. That gave way to the telephone, and the telephone to email, and email to web chat and web chat to social media.

The result of this communication evolution is that online brokerages are forced to cater to a wide spectrum of touch points that consumers can now access in order to manage their online investments. While consumers benefit from being able to (theoretically) stay connected to their brokerage howsoever they please, the reality is that client service at any brokerage on any channel is only going to be as good as the brokerage’s investment on it.

DIY investors shopping around for online brokerages based on client service should take note of this. If client service, and specifically telephone service, is of interest, then Dalbar Canada’s recently released direct brokerage evaluation of telephone client service interactions is worth looking into. And, while many brokerages are finding their way through the myriad of new technology touch points, telephones, it seems, still matter to online investors.

Who You Gonna Call?

Where and how telephone-based client service fits into today’s highly screen-driven age is a bit confusing. On the one hand while some issues can be resolved via online only methods there are times when getting someone on the phone is necessary.

From highly specific account inquiries to routine trading strategies, such as ‘journaling’ or exercising options, there are still many roads that require DIY investors to turn to telephone agents to address their needs. Of course, when a website goes down or a trading outage occurs, the only way to get an answer is to turn to the phone. Those interactions, as it turns out, impact how a client experiences doing business with that provider and what they ultimately tell others about those experiences.

Dalbar Canada, a financial service analysis firm, understands the value and impact quality service has on direct brokerage client relationships and has been measuring the quality of telephone interactions for many years now.

Given that brokerages use the results of Dalbar’s evaluations in their advertising, it is important for DIY investors to understand some context behind the results.

Widening the Circle

According to Dalbar, “quality” of client interaction at a direct brokerage is broken into four key components:

  • product and procedural knowledge
  • professionalism
  • ease of doing business and
  • the ability to deepen relationships with clients

These categories reflect strategic points around which a firm can either strengthen or weaken the relationship with their clients. While what a telephone agent knows is certainly crucial, how they communicate that information goes a long way in providing a positive experience. Whether the agent takes a ‘big picture’ view of clients question or simply responds literally to the question asked also influences whether a client leaves the call feeling frustrated or satisfied. What Dalbar measures when they analyze the interaction between provider and client is therefore a clear snapshot of the ‘human’ element of the brokerage experience.

It should be mentioned that one of the parameters these awards either don’t measure or report is the availability (i.e. hours to reach an agent) nor the duration. So, while it may be nice to get a nice person, there is still something to be said about getting a person when you need one, even outside of market hours.

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Discount Brokerage Weekly Roundup – January 9, 2015

Whether it’s oil prices, temperatures or Calvin Klein, January has started with a clear theme of racing to the bottom. Thankfully, there’s been a bright spot this past week at the Consumer Electronics Show in Las Vegas where the focus has been on innovation. The latest and most intriguing gadgets get showcased at the show and reinforces something that Canadian brokerages know all too well – to get ahead you have to keep innovating.

In this week’s discount brokerage roundup, we take the theme of ‘innovation’ and review some of the exciting changes that Canada’s online brokerages have planned for 2015 that they mentioned in our special year in review and look ahead piece. We’ll also shine the spotlight on an upcoming conference in Vancouver that’s sure to be on the minds of many resource stock investors. Lastly, be sure to check out some of the interesting conversations between investors from the investor forums.

Discount Brokerages in 2015

It’s been a familiar refrain for over 10 years now – Canada’s online brokerages are in a very competitive arena. While the commission prices were slow to fall, they gradually have been declining with last year providing an incredible price shock across the board.

For 2015, however, many discount brokerages are hoping that commission prices stay put. Even if prices do stand still, the collective perspectives we gathered show that no Canadian online brokerages can afford do so.

We’ve collected the hints and references to what’s coming next that the brokerages that participated provided to us and summarized them below. It should come as no surprise, however, that brokerages provided only a fraction of what they’re actually working on. Nonetheless, here is a brief summary of what we’ve gleaned for 2015.

CIBC Investor’s Edge – Upcoming Features: Documentation/Trade Confirmations

There’s definitely been a resurgence of interest in CIBC Investor’s Edge after their pricing drop announcement. However, there’ve also been a whole host of other activities ‘behind the scenes’ that CIBC has undertaken in order to improve their client experience. One of the key areas of focus will be on paperless confirmations and ‘digitizing’ the record-keeping (and compliance) aspects of online investing.

Credential Direct – Upcoming Features: Webinars & Seminars

Credential Direct has hinted that the upcoming year will be one in which they continue to build on the investor education theme with webinars and seminars. This past week we also spotted a posting for additional marketing support indicating that we can expect Credential Direct to get themselves back into the spotlight in the not too distant future.

Desjardins Online Brokerage – Upcoming Features: Client Experience

The term ‘client experience’ is admittedly broad. That said, it is an accurate reflection of the way Desjardins Online Brokerage is approaching the changes it has planned for 2015. Probably the biggest ‘hint’ of what’s to come came from the interview with Laurent Blanchard, VP & General Manager of Desjardins Online Brokerage, where he let viewers know that a new website is coming soon.

Jitneytrade – Upcoming Features: Trading Platform

Jitneytrade revealed that they’re planning to upgrade their web-based trading platform to enable users to now access account data as well as trade data from the same place. We suspect, however, that recent moves by other brokerages (such as BMO InvestorLine) into the active trader space, direct competitors Interactive Brokers into the registered account space and equity market volatility may spell an interesting 2015 for active traders and Jitneytrade.

National Bank Direct Brokerage – Upcoming Features: Investor Education

The president of National Bank Direct Brokerage, Nancy Paquet, shared her sentiments about 2015 in her interview and in the review piece with a clear message: investor education is going to be a priority in 2015. We’ve already seen their investor education providers and topics broaden. NBDB is kicking off 2015 with a lot of effort to help investors understand their latest product ‘Investcube’. Interestingly, they have increased their push into in-depth investor education by partnering with Learn to Trade Global, whose principal instructors also do work for the Montreal Exchange in teaching about options.

Questrade – Upcoming Features: Platforms

Questrade is not one to stand still for very long. As we reported last week, 2015 may hold more surprises in their wealth management arm with the possible launch of ETFs. From the direct investing side, however, 2015, looks like Questrade will focus on improving their trading experience on the IQ mobile, improving charting and option analytics.

RBC Direct Investing – Upcoming Features: Platforms

RBC Direct Investing played their cards close when it came to the upcoming innovations for 2015. Among the features that were mentioned were the Community feature which now boasts over 12,000 members. Interestingly, the recently released RBC Direct Investing newsletter also highlights the important role that the community platform will play in helping investors choose and monitor potential trading ideas. Another interesting hint from the year in review piece was that RBC Direct Investing will be testing out new features to their trading platforms.

Scotia iTrade – Upcoming Features: Performance Reporting

Scotia iTrade continues in its focus on portfolio measurement and analysis with the addition of a ‘performance reporting tool’. Also on their radar for 2015 will be enhancements to trading platforms.

TD Direct Investing – Upcoming Features: Performance Reporting

TD Direct Investing is looking to join in with other brokerages in augmenting their performance features. Specifically TD has indicated that realized gain/loss reporting is coming up in the early part of 2015.

Flurry of Deals

January kicked off with a number of promotions and deals being extended however as we venture forward it looks like some deals are making a comeback too. This past week Questrade re-launched two promotions: their ‘trade free for 3 months’ offer as well as the ‘100 free trades’.   The timing of these offers coincide with RSP season and, when viewed as a group, the offers from Questrade now appeal to a wide range of minimum deposit sizes from $1,000 to $50,000.

Event Horizon

If you’re an investor in the mining and exploration sectors, you’re likely going to want to either attend or tune into the upcoming Vancouver Resource Investment Conference by Cambridge House International on January 19th & 20th.  This is the 20th anniversary for the show and it comes at a time when junior mining and exploration stocks, many of which are typically the focus of the show, have suffered significant sell offs.  As such, this should be an interesting event with a mix of celebration and optimism combined with the sobering reality of a sector that’s looking to navigate a very uncertain path ahead.  There are many familiar names on the speakers list and a full floor of exhibitors.  For more information, check out their website and the video they’ve prepared as the lead up to the event.

January 13:  Scotia iTRADE – Best Practices In ETF Trading with Horizons ETFs (Online)

January 13: NBDB – Building Diversified Portfolios with ETFs – [Fr] (Montreal)

January 13: TD Direct Investing – Introduction to Investing in Options (Toronto)

January 13: NBDB – Portfolio management using momentum strategies – [Fr] (Online)

January 14: TD Direct Investing – Introduction to Investing in Options (St. John’s)

January 14: TD Direct Investing – Introduction to Investing in Options (Montreal)

January 14: Scotia iTRADE – Advanced Options Strategies with Montreal Exchange (Online)

January 14: TD Direct Investing – Introduction to Technical Analysis (White Rock)

January 15: NBDB – Introduction to technical analysis : Supports and resistances – [Fr] (Montreal)

January 15: TD Direct Investing – Income Investing Using ETFs (Toronto)

January 15: TD Direct Investing – Introduction to Technical Analysis (Ottawa)

From the Forums

To Bot or not to Bot

There’s been a lot of hype through 2014 regarding the presence of ‘robo-advisors’.  In this post from RedFlagDeals.com’s investing thread, there’s an interesting perspective on whether or not robo-advisors are all they’re cracked up to be.

Tossing Around the Crystal Ball

It’s always great to see what the sentiment is going into a new year.  In this post from the Financial Wisdom Forum, the forum participants provide their best guestimates for a contest on what 2015 will bring.

That’s a wrap to week two of 2015.  Think warm thoughts – except if you happen to be in Vancouver, in which case you may want refrain from calling your friends elsewhere in Canada to tell them what the weather’s like.  Have a great (and hopefully warm) weekend!

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Discount Brokerage Deals and Promotions – January 2015

*Updated Jan 26/15* Welcome to 2015! For many, the start of a new year is the time to mark a new beginning. For Canada’s online brokerages, however, the theme coming into January isn’t so much about being new as it is about being present.

While many of the deals and promotions listed in December were poised to expire at the end of the month, it appears that they would ‘expire another day’.   Curiously, of the 5 6 offers that were extended out into 2015 only the offer from Scotia iTrade (their 100 free trade offer) had its expiry date bumped to January 9th. Whether this is a clue to something possibly coming soon or simply a strange mini-extension, the good news is that it won’t be too long till we find out.

At the outset of January there is one new offer added into the mix, once again from Questrade. Their newest offer (see below for more details) is a commission-free trading offer aimed at clients with deposits of $25,000 or more. Another offer that landed mid-December that warrants mentioning is National Bank Direct Brokerage’s sizeable cash back offer – interestingly aimed at depositors with at least $20,000. Interestingly, brokerages competing for deposits of $20,000 to $25,000 include CIBC Investor’s Edge, NBDB and, now, Questrade.

As the holidays and vacations wear off, and the ramp up to RRSP season begins, we anticipate seeing some major activity from the various discount brokerages. Be sure to check back again throughout January as we monitor the developments with various deals and promotions.

*Update: BMO InvestorLine has extended their tablet app free-trade offer deadline to February 26th. Their ‘smile’ promotion is still scheduled to expire January 18th.

Expired Deals

At the time of writing, there are four offers that officially expired going into January:

  • RBC Direct Investing’s 20 commission-free trade offer
  • Questrade’s 30 free trade offer
  • Questrade’s $250/$100 cash back offer
  • Scotia iTrade’s $500 cash back (or 500 free trade) offer
  • *Update Jan 22/15* BMO InvestorLine’s “Smile Promotion” $250 cash back offer

Extended Deals

Rather than let them slip into history, Canadian discount brokerages sought to extend the shelf life of several big offers, some well into 2015 and others just over a week. Here’s the list of extended offers:

  • Scotia iTrade’s refer-a-friend offer extended to March 15th
  • BMO InvestorLine youth offer extended to March 31st
  • *Update Jan 5/15* BMO InvestorLine tablet app offer extended to February 26th
  • Questrade $50 prepaid Visa offer extended to February 27th
  • Scotia iTrade 100 free trade offer extended to January 9th
  • Desjardins Online Brokerage (Disnat) $300 commission credit offer extended to March 31st

 New Deals

The only new promotion for January by a Canadian discount brokerage was one launched by Questrade. Specifically their “new year’s” offer enables qualified clients to have 25 commission-free trades which are eligible for use throughout the year. Unlike many commission-free trade offers which have a shelf life of anywhere between 30 and 90 days, this offer is unique given how long clients have to use the commission-free trades (the deadline to use the free trades is December 31st 2015). While the number of trades is not necessarily as high as other offerings, the length of time to use the trades stands out. The caveat, however, is that there is a minimum deposit of at least $25,000 required to qualify. See the table below for additional details.

*Update Jan 11/15* Questrade has just added two additional offers (see below). For one of their offers, they are bringing back the unlimited commission-free trade promotions which last from one to three months depending on the deposit made. The other offer (the “Multi Leg” promotion) enables qualified clients to trade up to 100 trades commission-free.

*Update Jan 12/15*

  • Questrade has resurrected their iPad Mini offer in time for RSP season.  For a deposit of $100,000 or more, individuals can be eligible to receive an iPad Mini 2 (16GB, wi-fi only). In order to receive the iPad Mini, individuals have to fund their account and make at least one commission-generating trade. For more information see the table below.
  • Scotia iTrade has launched a massive offer on the heels of their previous deal expiry.  Scotia iTrade is now offering a modified cash back or commission-credit promotion for deposits from $15,000 to $1,000,000 – yes that’s not a typo.  Scotia iTrade is now the only brokerage to scale up the promotional offers beyond the $250,000 ceiling of other brokerages and with this latest promotion they’ve topped their previous offer (500 trades for $500,000).  The current offer actually goes beyond just commission rebates or cash back, there is also a 90 day free use of their platform (FlightDesk) and a free 2 day educational seminar with their education partner Larry Berman.  The list of terms and conditions for this offer is quite extensive so be sure to read it fully if you’re considering the deal. Some particulars to pay attention to are the rebate period for commission credits (180 days) and minimum balance requirements.
  • RBC Direct Investing has also stepped into the deal arena with a commission-rebate offer.  The promotion enables qualified applicants to receive 20 commission-free (commission fees will be rebated) trades that are good for use for up to one year.  One of the highlights of this offer is that no minimum deposit is required in order to qualify.  See table below for further details.

*Update Jan 16/15*

  • Qtrade has launched a new RRSP-themed contest.  Individuals opening (and funding) or contributing to an RSP account with at least $2,000 by March 2nd, 2015 could be eligible to win a $500 contribution to their account each month for a year.  Given that this is a contest, it is not listed in the table below however for full details, click the terms and conditions link here.  One thing to consider of course is the eligible contribution room within your RRSP to receive the extra top up.
  • Questrade has launched yet another offer, making them the brokerage offering the most promotions this month. Their latest DIY investing offering is a tiered offer unlimited commission-free trading depending on the amount deposited. For deposits of $50,000 or more, Questrade is offering up to three months of commission-free trading; for $25,000 – $49,999 Questrade is offering two months of commission-free trading and for $1,000, individuals can be eligible for one month of commission-free trading.  See the table below for more details.
  • Virtual Brokers has stepped back into the deals & promotions space by offering an RRSP-themed offer. Individuals who deposit at least $5,000 in new equity can qualify to receive 50 commission-free equity trades. For deposits of $10,000 in new equity, Virtual Brokers is offering 100 commission-free equity trades.  This is one of the most competitive commission-free offers for the deposit levels. See the table below for more details.

*Update Jan 22/15*

  • BMO InvestorLine has replaced their $250 cash back offer (the Smile Promotion) with a new RSP-focused promotion with a higher cash back component. Like the promotion it is replacing, the latest offer from BMO InvestorLine (live as of Jan 19/15) requires a deposit of at least $100,000 to qualify. Individuals who qualify for this promotion can receive $300 cash back. See the table below for additional details and deadlines.
  • HSBC InvestDirect is now also offering up its own RSP season themed offer.  In their case, the deal appears to have gone line early in January but has only recently made it onto their website.  The offer states that eligible clients can receive up to 50 commission-free equity trades which are good for up to 88 calendar days.  It is noteworthy that the commission-free trades apply to equity/ETF trades and not to options or fixed-income trades. Also, according to the terms and conditions there is no minimum deposit required nor is there a stated promo code. See table below for more details.

*Update Jan 26/15*

  • One of Canada’s largest online brokerages, TD Direct Investing, has now also jumped into the deals pool this month.  Their latest commission-rebate offer features trading commission rebates on three tiers of deposits.  For deposits of between $25,000 – $49,999 eligible accounts receive up to 50 commission-free trades; for deposits of $50,000 – $99,999, eligible accounts can receive up to 100 commission-free trades and for deposits of $100,000 or more, up to 200 trades may be rebated. This offer applies to equity and options trades.  See table below for additional information.

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
Open a new account with HSBC InvestDirect and you could be eligible to receive up to 50 commission-free equity/ETF trades for 88 calendar days. Be sure to read the terms and conditions for full details. n/a 50 commission-free trades 88 days (payout for rebate is within 90 days of end of free trade period) HSBC InvestDirect 2015 Winter Offer March 2, 2015
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion March 31, 2015
Open a new qualifying account with RBC Direct Investing and you may be eligible to receive up to 20 commission-free trades. A promotion code is required for this offer; click on the the link for the promotional page to generate a code. Be sure to read the terms and conditions for full details on this offer. n/a 20 commission-free trades 1 year Terms & Conditions & RBC Direct Investing Trade Free for 1 Year Promotion Page March 2, 2015
BMO InvestorLine Download the BMO InvestorLine iPad app and you could qualify for up to 5 commission-free trades. This offer is open to new and existing clients and can be combined with other offers. Clients must have a qualifying account in order to be eligible. Read full terms and conditions for details. n/a 5 commission-free trades ($50 max value) 30 days Tablet Trades Promotion February 26, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open and fund a qualifying account (TFSA, Cash/Margin or RRSP) at Questrade with at least A) $1,000 or B) $10,000 and you may be eligible to receive A) 10 or B) 100 commission-free trades. Use promo code 100FREEML15W when registering. Be sure to read the terms and conditions for this offer. A) $1,000 B) $10,000 A) 10 commission-free trades B) 100 commission-free trades 60 days Multi-leg Offer February 27, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least A) $1,000 B) $25,000 or C) $50,000 to receive either A) 30 days B) 60 days or C) 90 days of unlimited commission-free stock & options trades. Use promo code UNLIMITEDW15 when signing up. Be sure to read the terms and conditions for more information. A) $1,000 B) $25,000 C) $50,000 Unlimited commission-free trades during associated period. A) 30 days B) 60 days C) 90 days Questrade Unlimited Trading Offer March 2, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least A) $1,000 B) $25,000 or C) $50,000 to receive either A) 30 days B) 60 days or C) 90 days of unlimited commission-free stock & options trades. Use promo code UNLIMITEDRSP when signing up. Be sure to read the terms and conditions for more information. A) $1,000 B) $25,000 C) $50,000 Unlimited commission-free trades during associated period. A) 30 days B) 60 days C) 90 days Questrade RRSP Promotion March 2, 2015
Open a new account (TFSA, Margin, RRSP or FX/CFD) and place at least one trade within 60 days of opening and you may be eligible to receive a $50 prepaid Visa card from Questrade. Use promo code VISA50. Be sure to read terms and conditions for full details on this offer $5,000 $50 Visa gift card Cards will be mailed within 40 business days of reaching account funding requirement. $50 Prepaid Visa Card Offer February 27, 2015
Open and fund a new account with at least A) $5,000 or B)$10,000 in net new equity and you may be eligible to receive A) 50 or B) 100 commission-free trades. Use promo code “RRSP15” when signing up for an account to qualify. Be sure to read the terms and conditions of the offer for full details. A)$5,000 – $9,999 B)$10,000+ A) 50 commission-free trades B) 100 commission-free trades (max commission per trade $6.49) Trades must be used by September 30, 2015 (commissions to be rebated by October 2015) RRSP Free Trade Promotion February 27, 2015
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A)$10,000 B)$50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade March 15, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999, B)$50,000 – $99,999, C)$100,000 – $249,000, D) $250,000 – $499,999, E) $500,000 – $999,999, or F) $1,000,000+ and you may be eligible to receive a corresponding cash-back or commission rebate. For commission-free trades use code: WTT15 or for cash rebates use code: DL5RP. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. This offer also includes a free ‘swing trading’ course with Larry Berman and 90 days free of FlightDesk. A)$15,000 – $49,999 B)$50,000 – $99,999 C)$100,000 – $249,000 D)$250,000 – $499,999 E)$500,000 – $999,999 F)$1,000,000+ A) 50 commission-free trades OR $50 cash B) 100 commission-free trades OR $100 cash C) 250 commission-free trades OR $250 D) 350 commission-free trades OR $350 E) 500 commission-free trades OR $500 F) 1000 commission-free trades OR $1000 180 days for commission-free trades Cash back to be deposited by November 30, 2015. 1000 Free Trade Offer March 31, 2015
Scotia iTrade Open a new account with Scotia iTrade with either A) $15,000 – $99,999 B) $100,000 – $499,999 or C) $500,000+ and you may be eligible to receive either A)100 free trades or $50 cash B)250 free trades or $250 or C)500 free trades or $500 cash. Accounts must be opened prior to December 31st, 2014. New clients use code: FATD14E for free trades and code: MONF14 for cash back. Existing clients must call client service (1-888-769-3723) to qualify. Be sure to read terms and conditions regarding minimum balance requirements and other details. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trades or $50 cash B) 250 commission-free trades or $250 cash C) 500 commission-free trades or $500 cash For commission-free trades: 180 day limit For cash back: payout occurs by August 31, 2015 Cash back + Free trade offer December 31, 2014
Open a new account and fund it with at least (A) $20,000 or (B)$100,000 and NBDB may provide up to (A) $500 or (B) $1,000 in commission rebates for qualifying accounts. Use promo code “CashBack2015” when signing up. Be sure to read the terms and conditions for eligibility and refund dates. A)$20,000 – $99,999 B)$100,000+ A)$500 commission rebate B)$1,000 commission rebate 90 days (rebate of commissions depends on sign up date and is outlined on terms/conditions) Cash Back Offer March 31, 2015
Open a new account with TD Direct Investing with at least A) $25,000 B) $50,000 or C) $100,000 and you may be eligible to receive rebates on up to A) 50 B) 100 or C) 200 equity and/or options trades. Be sure to read full terms and conditions A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000+ A) 50 commission-free trades B) 100 commission-free trades C) 200 commission-free trades 60 days (commission rebates to be issued on Aug. 15/2015) TD Direct Investing Free Trade Promotion March 27, 2015
Open a new account or fund an existing account at CIBC Investor’s Edge with at least A)$25,000-$49,999 B)$50,000 – $99,999 or C)$100,000+ and you may be eligible to receive A)$100 cash back and 25 free trades; B)$200 cash back and 50 trades or C)$300 cash back and 100 free trades. Be sure to read the terms and conditions for full details on this offer. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,00+ A) $100 cash back + 25 commission-free trades B) $200 cash back + 50 commission-free trades C) $300 cash back + 100 commission-free trades Cash back payout occurs within 30 days of account funding; Time limit to use commission free trades is 60 days Investors Edge Cash Back and Free Equity Trades Offer February 28, 2015
Open a new account (TFSA, Margin, RRSP) with at least $25,000 and you may be eligible to receive 25 trades commission free. Use promo code TRADEFREE2015 when signing up to qualify. Be sure to read the terms and conditions for details on this offer. $25,000 25 commission-free trades (commissions rebated within 10 days of trade) Trades may be used up until December 31st 2015. Trade Free For a Year Offer January 30, 2015
Disnat Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $50,000 $300 commission credit 6 months Disnat $300 Commission Credit Promo March 31, 2015
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,000 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). Contact InvestorLine for full terms and conditions. October 30, 2015
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $300 cash back. Use the promo code RSP2015 when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $300 cash back Payout occurs after 6 months RSP 2015 Promotion March 31, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least $100,000 to be eligible to receive an iPad mini. Use promo code IPADMINI15Q2 when signing up. Read the terms and conditions for more information about eligibility. $100,000 iPad Mini 2 (16gb wi-fi only) [retail value ~$370 including taxes] iPad Mini will be sent within 60 days of account being funded and 1 commission-generating trade being placed. iPad Mini Offer March 13, 2015
Expired Offers: The following offers have expired this month and are shown for reference only. #colspan# #colspan# #colspan# #colspan# #colspan# #colspan#
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $15,000 before December 31, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions. $15,000 100 commission-free trades ($999 value @ $9.99 commission rate) 60 days Scotia iTrade 100 free trades + FlightDesk January 9, 2015 *Expired*
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $250 cash back and a rebate of commissions on up to 25 trades made within 50 days of opening the account. Use the promo code SMILE when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $250 cash back + 50 commission-free trades (rebated) 50 days (payout for cash back and commission rebate occurs after 6 months) Smile Promotion January 18, 2015 *Expired*

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Scotia iTrade Transfer $15,000 or more to Scotia iTrade from another Canadian brokerage, and iTrade may pay up to $150 in transfer fees. $150 $15,000 1000 Free Trade Offer March 31, 2015
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $150 $25,000 Transfer Fee Promo none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more in equity to Virtual Brokers and they’ll cover the transfer-out fees up to $150. $150 $25,000 Transfer Fee Rebate Terms & Conditions March 31, 2015
Transfer $25,000 or more into a new TD Direct Investing account and they will cover up to $150 of transfer fees. $150 $25,000 TD Direct Investing Free Trade Promotion March 27, 2015
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $150 $50,000 Disnat $300 Commission Credit Promo March 31, 2015
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Discount Brokerage Weekly Roundup – December 26, 2014

It’s hard to believe but another year is almost in the books. Going into the end of the year, things typically quiet down across the markets and amongst the online brokerages this past week was equally quiet. Of course, that didn’t stop major US indices from continuing to push new highs and breaking records yet again.

Going into the end of a year, it is also a natural point to look back and reflect on the events, big and small, that helped shape 2014 for DIY investors as well as look ahead to 2015 to see what Canadian online brokerages may get up to.

In this last roundup of 2014, we’ll keep it short and sweet. We’ll take a look at another brokerage that participated in our executive video series, highlight another brokerage commercial making the rounds on US airwaves and take a quick victory lap with the biggest discount brokerage story of 2014.

Interview with Desjardins Online Brokerage

The second episode of our executive video series was launched just ahead of the Christmas holiday this year. In this episode, we spoke to Laurent Blanchard the Vice President and General Manager of Desjardins Online Brokerage. The conversation was yet another example of the interesting individuals at the helm of Canada’s online brokerages. It was definitely fascinating to learn not only about the personalities behind the company however there’s also an exclusive sneak peek at what Desjardins Online Brokerage has planned for 2015. Check out the video on their profile page here.

Commercial Viability

Given the competitive landscape for online brokerages, advertising is almost a given. For DIY investors, going into 2015 means preparing from an onslaught of advertisements across all the screens we use. Throughout 2014 we’ve highlighted a number of commercials that we’ve spotted being broadcast by various brokerages and as we head into the end of 2014, here’s one from Interactive Brokers that caught our attention. While aimed at US audiences, the point of the commercial definitely positions Interactive Brokers as an attractive consideration based on their pricing – a story that has dominated the landscape here in Canada for 2014. It will be interesting to see how Canadian brokerages step up to handle the pricing message as this is going to continue to be highly volatile issue (we think) even in 2015.

Headline Number

If there is one story that stood out in 2014, it was certainly the drop in standard commission pricing.

When we first reported the story in January that RBC Direct Investing had lowered their commission prices, it was clear that they had done something game-changing. Based on their size in the marketplace and their popularity as a provider, it was a move that would force the response of almost every other bank-owned brokerage as well as independent online brokerages to step up.

In the weeks that followed, major bank-owned brokerages such as TD Direct Investing and BMO InvestorLine also lowered prices with other brokerages eventually joining in. It would take until October for the next major price drop to take place, but in a bold maneuver, we broke the news that CIBC Investor’s Edge was going to lower their standard commission pricing to $6.95.

Aside from being a major win for DIY investors, the lowering of standard commission prices showed just how important pricing is to the online brokerage world.

The speed and magnitude of the shift in pricing has demonstrated that when something matters to providers, they move quickly on it regardless of their size. Whether a firm matches or betters CIBC’s offer will be interesting to watch for given the apprehension felt by brokerages at having to come down to the sub-$10 level. Looking to the US, where there is now zero-commission trading (thanks to a startup firm Robinhood), as well as to the deep discount providers here in Canada such as Questrade and Virtual Brokers, however, there is still room for commission pricing to fall.

Once the domino of pricing fell, a chain of events had also been set in motion that would widen the scope of the efforts of discount brokerages to win the attention and loyalty of DIY investors.

On the heels of the announcement from RBC Direct Investing in January, we stated that not only would other brokerages follow, but that there would also be a shift by online brokerages to “demonstrate the value of their customer service, new features or trading platforms.”

Indeed, over the course of the year, after the wave of price drops came the announcement for new services (such as USD registered accounts from NBDB and TD Direct Investing, ), a long (and growing) list of new features (such as bracket order types) and even new trading platforms (e.g. BMO InvestorLine’s active trader platform).

To cap off the year, we assembled a collection of perspectives from 9 Canadian online brokerages that also provided a fascinating look back at 2014 through the eyes of the brokerages themselves. In case you missed the snapshot series we put together on our Twitter feed, here are the top 5 themes we spotted from that series.

A year of milestones

In addition to the online brokerages, 2014 was also a great year for SparxTrading.com. A couple of really special milestones that we achieved this year were the release of our revised brokerage profile pages, the beta launch of our online community, the roll out of our executive video series and our year in review compilation from 9 of Canada’s online brokerages.

We’re definitely excited about 2015 as we’ve got a number of great features planned and are looking forward to staying on top (and helping to make sense of) what Canada’s discount brokerages do next.

On behalf of the SparxTrading.com crew, have a fantastic (and safe!) New Year!