If you’re fortunate enough to be in a place where spring is starting to arrive, the sight of new growth is a welcome change. Another spot where there are some pleasant surprises of growth: our online brokerage deals and promotions section.
This month, we’re excited to see a new commission-free trade deal cross the wires at the start of the month from HSBC InvestDirect. After the appearance of a new commission-free offer last month from National Bank Direct Brokerage it appears the look for the spring season is commission-free trading.
Of course, what would April be without some clouds and rain? Offers that expired heading into the month include RBC Direct Investing’s cash back (plus free trades) promotion.
As the saying goes, however, April showers bring May flowers and there seems to be more pleasant surprises showing up this month, so stay tuned for updates and be sure to check out our new deals and promotions filter to analyze the latest offers.
Expired Deals
March was a blustery month for deals activity among Canadian online brokerages. Most of the offers that were timed around RRSP season expired early in the month however there were two interesting promotions later in the month that also wound down.
In the middle of the month, Wealthsimple Trade’s latest referral contest expired. And, at the end of March, RBC Direct Investing’s cash back plus free trade promotion officially concluded.
Extended Deals
No extended deals to report at this time.
New Deals
Great news for deal hunters looking for commission-free trades as the start of this month features two new offers to review.
First, HSBC InvestDirect launched a new commission-free trade offer of 60 commission-free equity and ETF trades (North America only). This offer enables qualifying customers to trade commission-free (up to 60 trades) for 60 days. This promotion expires on June 30 and applies to both existing and new clients.
Second, be sure to review National Bank Direct Brokerage’s massive 100 commission-free trade offer. This crossed our radar in March and coincided with their recent commission-price drop, making this a competitive offer from a Canadian bank-owned online broker.
It’s fitting that after so much discussion about “shorts” in the news, we also now have a short(er) trading week upon us. With one fewer trading day, it also means the deadline for RRSP contributions is ticking closer, adding to the pressure that is evidently already building at Canadian online brokerages this month.
In this edition of the Weekly Roundup, we take yet another look at the customer service angle at Canadian online brokerages, this time zeroing in on another recent set of rankings that measure digital interactions. From there, we dive into some exciting new features being launched by Canadian brokerages that will help take some of the guesswork out of investing before and during retirement. As always, we’ll serve up a generous helping of investor commentary from Twitter and the investor forums.
Canadian Online Brokerages Struggle at Delivering Service Online
The drumbeat for better customers service among DIY investors in Canada is getting louder by the day.
Increased coverage among high-profile financial writers in Canada, as well as a number of studies by financial research firms, validates what we have been seeing for many months on social media: Most Canadian online brokerages are falling short on providing timely customer service experiences.
Columnist @rcarrick said he’s received complaints about several bank-owned firms, but @TD_DirectInvest was named most often. As the largest player in the brokerage business, TD has had issues keeping up with client demand to speak to its live reps. https://t.co/J7SXJWBNWx
While data has been emerging this year that puts the issues faced by online brokerages in the spotlight, it is somewhat confusing for online investors since different studies measure different aspects of the “service” experience.
Both the actual wait times experienced by Canadian DIY investors and the unpredictability of what users can expect when reaching out as either a customer or an interested consumer have potentially far-reaching consequences to the industry as a whole. And, as the data shows, if these issues are not addressed, the recent online brokerage challenges taking place in the US could spill over to providers here in Canada.
The Story in Numbers
At the end of January, a couple of important Canadian online brokerage rankings were published. We covered The Globe and Mail’s online brokerage rankings in detail earlier this month, with a significant amount of time spent diving into the wait times that were measured at Canadian online brokerages in January (2021).
Online Brokerage
Wait Times (min)
BMO InvestorLine
87
CIBC Investor’s Edge
101
Desjardins Online Brokerage
170
HSBC InvestDirect
125
Interactive Brokers
66
National Bank Direct Brokerage
69
Qtrade Investor
28
Questrade
128
RBC Direct Investing
90
Scotia iTrade
179
TD Direct Investing
58
Virtual Brokers
7
For a quick refresh, the table above contains the average wait time data reported as part of the online brokerage rankings among the 12 firms that were reviewed. Interestingly, in a post by DALBAR on LinkedIn, additional information about the wait times was provided that illustrates the range of wait times at each firm. Readers of the Weekly Roundup post in which these numbers were thoroughly examined can appreciate why average values, on their own, might not convey the full picture. The study data cited by The Globe and Mail rankings reported the average wait times, but the graphic below adds additional context around those average values.
Aside from the 25x difference between the average of the lowest wait times (Virtual Brokers) compared to the highest average wait times (Scotia iTrade), one of the most striking trends to jump out is variation in wait times that occurred as online brokerages took longer to respond. At the far right of the chart shown above, five firms in particular stand out with highly variable wait time ranges:
Of these firms, it was most evident that Questrade had the highest range of wait times, which stretched from about 50 minutes to just under 300 minutes, with an average of 128 minutes. By comparison, HSBC InvestDirect had an average of 125 minutes but a much narrower range of wait times, stretching from just over 60 minutes to about 210 minutes. When ranges this wide are part of the service experience, it is essentially a gamble for DIY investors as to exactly how long they are going to have to wait before connecting with a service agent.
Another striking feature of the data on the chart is where Qtrade Investor landed in terms of wait times. Their “worst” wait time (of about 50 minutes) was approximately the best wait time that any firm behind them could achieve.
These data points are also important because of how they compare against another set of online brokerage rankings that focused specifically on service levels. Financial services research firm Surviscor also released online brokerage service rankings at the end of January and concluded that there were clear and persistent shortcomings in the response times of most Canadian online brokerages.
Unlike the DALBAR study, which took a snapshot of one week’s worth of telephone data in January 2021, Surviscor conducted 163 service inquiries per online brokerage between January and December of 2020 on contact forms, emails, and social media channels.
The average industry response time in 2020 ended up being 55 hours, which was actually an improvement over 2019, in which response times across the industry averaged out to 62 hours. One of the most compelling points observed in the Surviscor analysis of service response times, however, was that service has been trending in the wrong direction for many years now, and although COVID-19 can certainly be considered a contributing factor, the data shows that even before the pandemic, meeting customer response times online was a challenge.
Change the Channel or Channel the Change
When comparing the data from the Surviscor and DALBAR studies, it’s clear that the kind of service experience a consumer can encounter with a Canadian online brokerage depends on the channel used, which is a big problem on a number of levels.
First, and perhaps most ironic, is that when it comes to online capabilities for service touchpoints at Canadian online brokerages, in spite of the hairpulling wait times, it is still faster (in most cases) to wait on the phone than it is to send electronic correspondence.
In fact, when comparing the magnitude of the difference between the phone and online channels, the range went from 1x (Questrade) to 786x (Virtual Brokers). Excluding the outliers, the average factor difference was 39x between phone and online interactions. One clear standout in both the digital and telephone categories was Qtrade Investor, which had the shortest wait time on the phone and the second-fastest response time online.
To Surviscor’s point, the digital interactions may have been deprioritized compared to phone channels because customers would be more likely to use the phone channels; however, as far as making a first impression count, most Canadian online brokerages would not get a flattering response.
A second important consideration is that for the financial services industry as a whole, trust is an integral part of consumer confidence.
Granted, DIY investors are flocking to the markets in droves because of perceived generational opportunities to build wealth, but when those same investors are hitting roadblocks to getting issues addressed or questions answered, confidence takes a hit. If you add issues of platform stability to that, then individual investors lose faith that financial services firms are up to the task of safely and reliably providing the opportunities for wealth creation that much of the marketing suggests is possible.
With just a few weeks to go until the RSP contribution deadline for 2020, this is prime time for DIY investors looking to online brokerages for RSP options. It is against this backdrop that the wait times experienced by Canadian investors stand out as something that could ultimately become a much more important component to online brokerage selection than has been the case in the past. Deeper than that, however, the notion of lag time is anathema in the age of online investing.
The recent Robinhood debacle that resulted in trading in certain securities being restricted has been blamed on wait times for trade settlement – a stunning vulnerability in the year 2021. For DIY investors in Canada, the clear and present risk to consider is an online brokerage’s capacity to meet a respectable service delivery standard, especially during times of market volatility or heightened interest (which is arguably when those systems are needed the most).
For Robinhood, not only did they suffer a blow in the court of public opinion, but they are also going to have to answer tough questions from lawmakers and face the wrath of an increasing number of lawsuits. Other than the growing chorus of complaints from Canadian consumers and financial media, there isn’t anyone holding online brokerages accountable for their service standards.
Ironically (again), the longer Canadian online brokerages take to address these service gaps, the more likely it is that the industry will find themselves taking centre stage in a mass media story or, worse, the focal point of a Reddit wave. Make no mistake, the clock on this story is most certainly ticking.
New Features From Online Brokerages Chip Away at Guesswork
After talking at length about where Canadian online brokerages are struggling, it’s a nice change of pace to shift the focus to areas in which they’re looking to innovate and deliver additional value to clients as well as to DIY investors more broadly.
Readers of SparxTrading.com know that we regularly engage with Canadian online brokerages on a number of new features and developments (case in point: our Look Back / Look Ahead series). Two interesting features that were brought to our attention from Canadian online brokerages are worth highlighting to readers.
BMO InvestorLine Launches a Checkup for Portfolios
With a tsunami of new investors joining the stock market, one of the biggest challenges many of them face is understanding how to answer a very basic question: “Am I on the right track?”
Fortunately for DIY investors, BMO InvestorLine recently announced a new online tool that helps investors analyze their current portfolios against a set of investor profiles, to see whether or not their portfolios are in line with their desired investment objectives.
The adviceDirect Portfolio Health Check tool is interesting for a number of reasons, but chief among them is that it is freely available to the general public to use, and it is both simple and fast to complete.
Individuals can enter details about their financial picture (no personally identifiable information is captured) and assess it on four key parameters: asset allocation, diversification, security ratings, and risk. In about three steps, users can quickly see where they measure up to their “personality” type and also see what they may want to consider changing in order to bring their portfolio in line with their respective investing personality type.
In terms of who might be interested, this tool appears to be built around investors (rather than traders) who are interested in taking a portfolio approach to building wealth. This means that the tool is likely to have mass appeal, and it serves as a great starting point to the conversation about whether or not the composition of a portfolio is on target.
From a business development standpoint, this is also an interesting and savvy move by BMO InvestorLine to be part of the conversation about wealth management. Analogous to mortgage calculators helping potential homeowners understand some of the mechanics around house purchases and borrowing, the adviceDirect Portfolio Health Check tool is a timely resource for anyone wanting to get a digital “second opinion” on how their investments stack up. This is entirely in line with their adviceDirect offering, which enables investors to consult with a licensed investment professional about recommendations but leaves the actual work up to the investors themselves to implement.
In a crowded landscape of online brokerages that would normally be focusing on commission pricing, this public-facing tool will enable BMO InvestorLine to be visible to the right kinds of investors at the right moment and, because it is free, for the right price.
Looking in the RRIF-View Mirror
Against the backdrop of service enhancements at Canadian online brokerages, one important feature launched at the end of 2020 will help clients of RBC Direct Investing who are thinking about income when retiring.
Starting in December 2020, RBC Direct Investing enabled clients with Registered Retirement Income Fund accounts (such as RRIFs, LIFs, LRIFs, RLIFs, PRIFs) to be able to view payment details online, without needing to call or wait for a letter. In light of the wait times on the phone channel, this is a timely development.
To help navigate the most important details of a RRIF, the “RRIF View” provides a snapshot of a client’s plan, with information on the required minimum annual withdrawal amount and scheduled payment dates.
While this is a small development, it is an interesting example of a feature that is important to users who have this kind of account – it got a quick highlight as part of the Navigators series that publishes updates at RBC Direct Investing.
At this time of year, there is a lot of discussion about contributing to RRSPs, but there isn’t nearly as much information available on the next steps of funding retirement, in particular the variety of options available to individuals with an RRSP.
Fortunately, RBC Direct Investing also has a fairly good guide explaining RRIFs, which is helpful for individuals needing to navigate this new account type. With this new feature, RBC Direct Investing might also have the opportunity to spark a conversation about online brokerage platforms and the ease with which RRIF account holders can stay on top of key information.
A potential investor asks in this post whether they should wait until after the stock market crash – or at least massive correction – that many experts predict is imminent, in order to buy stocks at rock-bottom prices. Fellow Redditors share their strong opinions about the value of time in the market versus trying to time the market.
Up, Up & Away
From boredom to FOMO to a record bull market, there are many reasons that retail investing is surging in Canada right now. In this post, hundreds of Redditors discuss meme stocks, cryptocurrency, market bubbles, crashes, index funds, interest rates, and a whole lot more.
Into the Close
With the combination of Lunar New Year, Valentine’s Day, and Family Day, there have been many reasons to celebrate this past week, and Friday being that much closer certainly adds one more item to the list. There’s a lot of gripping drama playing out in the US this week, with the GameStonks trade under the microscope. With snow and cold showing up just about everywhere, including Texas, this is going to be a weird one. Hang in there.
Just because the month is short, doesn’t mean we can’t be long on fun! From Lunar New Year to Valentine’s Day to Family Day, there is much cause for celebration – with safe social distancing in mind, of course. Another reason for DIY investors to rejoice: there’s still time to meet the RRSP contribution deadline for 2020!
Amidst the recent stock market volatility, there is one constant to look forward to at this time of year: a steady stream of promotions from online brokerages ahead of the RRSP contribution deadline. With over 30 kinds of promotional offers in the mix, there’s bound to be something available from most Canadian brokerages.
For all those looking for sweet deals during this rosy month, be sure to keep reading for all the latest promotions from Canadian online brokerages for February. We forward to a month filled with new surprises, and we will continue to monitor and provide updates on new online brokerage deals throughout the month.
In the spirit of Lunar New Year, we wish everyone an upcoming year filled with good luck and great prosperity – we’re hoping it will start with finding your perfect online brokerage deal here!
Open a new RBC Direct Investing account by March 31, 2021 and fund it with at least A) $5,000; B) $25,000; C) $50,000; D) $100,000; E) $250,000; F) $500,000 or G) $1M+ by May 31, 2021 and you may receive a cash back of A) $50; B) $100; C) $200; D) $300; E) $500; F) $1,000 or G) $2,000; plus 10 free trades to be used by August 31, 2021. The fund must be from a non-RBC investment account.
Use promo code WCMP2 during account opening and be sure to review the full Terms and Conditions.
A) $5,000
B) $25,000
C) $50,000
D) $100,000
E) $250,000
F) $500,000
G) $1M+
Cash Back:
A) $50
B) $100
C) $200
D) $300
E) $500
F) $1,000
G) $2,000
Plus 10 free trades
Scotia iTRADE is offering two choices for new investors who open accounts before March 1, 2021 and fund it with at least A) $5,000; B) $10,000; C) $25,000; D) $50,000; E) $100,000; F) $250,000; G) $500,000 or H) $1M+:
Option 1: you can use promo code C21 to receive cash reward of A) $25; B) $50; C) $100; D) $200; E) $400; F) $750; G) $1,000 or H) $1,500; plus a discounted commission of $6.99 per trade until June 30, 2021.
Option 2: Use promo code FT21 and you may be eligible for A) 10; B) 20; C) 50; D) 100; E) 200; F) 300; G) 400 or H) 500 free trades to use for 90 days after the account is funded.
See terms and conditions for full details.
A) $5,000
B) $10,000
C) $25,000
D) $50,000
E) $100,000
F) $250,000
G) $500,000
H) $1M+
Cash Back:
A) $25
B) $50
C) $100
D) $200
E) $400
F) $750
G) $1,000
H) $1,500
or Free Trades:
A) 10
B) 20
C) 50
D) 100
E) 200
F) 300
G) 400
H) 500
Fund your new or existing CIBC Investor’s Edge account before March 2, 2021 with at least A) $10,000; B) 25,000; C) $50,000; D) $100,000; E) $500,000 or F) $1M+ and you may be eligible to receive a cash back reward of up to A) $50; B) $100; C) $200; D) $500; E) $1,000 or F) $2,000. To qualify, the fund must be from outside CIBC. No promo code required. See terms and conditions for full details.
A) $10,000
B) 25,000
C) $50,000
D) $100,000
E) $500,000
F) $1M+
Cash Back:
A) $50
B) $100
C) $200
D) $500
E) $1,000
F) $2,000
Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $15,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F)$1M+, and you may be eligible to receive a cash back reward of up to A) $150; B) $250; C) $500; D) $800; E) $1,000 or F) $2,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions.
A) $15,000
B) $50,000
C) $100,000
D) $250,000
E) $500,000
F) $1M+
Cash Back:
A) $150
B) $250
C) $500
D) $800
E) $1,000
F) $2,000
Open a new TD Direct Investing account by March 1, 2021 with promo code INVESTNOW and fund it with new assets worth at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000, and you may be eligible to receive a cash back reward of up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. The fund must be deposited to the account by April 30, 2021 and at least one trade is placed by June 30, 2021.
In addition, you may also be eligible for another $100 cash reward by setting up a Monthly Contribution Plan (min. $100 per month) with the first contribution occur before April 30, 2021.
The maximum reward one could receive is $1,100. See terms and conditions for full details.
A) $15,000
B) $25,000
C) $100,000
D) $250,000
E) $500,000
Cash Back:
A) $100
B) $200
C) $300
D) $500
E) $1,000
New clients who open and fund a new Qtrade Investor account before March 01, 2021 with at least A) $25,000; B) 50,000; C) $100,000; D) $500,000; E) $1M or F) $2M+ may be eligible to receive a pre-paid Visa gift card of up to A) $50; B) $100; C) $250; D) $800; E) $1,500 or F) $2,000. Only the first 500 customers are eligible. Please use promo code VISA2K. See terms and conditions for full details.
A) $25,000
B) $50,000
C) $100,000
D) $500,000
E) $1M
F) $2M+
Cash Reward:
A) $50
B) $100
C) $250
D) $800
E) $1,500
F) $2,000
New accounts opened between Jun 22 and Dec 31, 2020 will be awarded 100 free online trades in one year. This promotion applies to new and existing NBDB clients who use the code “FREE2020” to open new accounts. There’s no minimum funding requirement, however some other restrictions may apply.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully.
Open a new RBC Direct Investing account by December 31, 2020 and fund it with at least $5,000 by March 5, 2021 and you will receive commission rebates for 25 trades that occur within 1 year of account opening. Be sure to use promo code NTBW2 during account opening. You will be charged regular commissions on the trading date, and the rebate will be deposited back into your account after 3-5 business days. If you are an existing customer to RBC DI, the type of the new account being opened must be different from the account types that you current have.
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details.
$25,000
commission-free trades for 1 month + 1 month of advanced data.
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.
A) $1,000
B) $10,000
C) $25,000
D) $50,000
E) $100,000+
$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral)
For referred individuals:
A) $25 cash back
B) $50 cash back
C) $75 cash back
D) $100 cash back
E) $250 cash back
Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)
If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link.
A) $10,000
B) $50,000+
A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90)
B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50)
You may receive $10 cash incentive for each new client that you refer to Wealthsimple Trade. They must use your unique referral link during account opening and make a trade value of at least $100. The referred friend will also get $10.
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details.
$1,000
$25 cash back (for both referrer and referee)
Cash deposited at the end of the month in which referee’s account funded
If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details.
$5,000
You(referrer): $50; Your Friend(referee): $50
Payout occurs 45 days after minimum 90 day holding period (subject to conditions).
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered.
$152.55
$15,000
Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information.
none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details.
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details.
$150
$25,000
Transfer Fee Promo
Contact client service for more information (1-800-465-5463).
none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.
$135
$25,000
Confirmed with reps. Contact client service for more information (1-800-567-3343).
none
Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details.
$200
Contact client service for more information
Contact client service for more information (1-888-776-6886)
none
Expired Offers
Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $10,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info.
The minimum commission per equity trade ($1.99) is waived for new accounts from account opening till December 31, 2020. As a result, your commission is just 1¢/share (max $7.99). However, this offer does not apply to Odd Lot orders (i.e. orders with quantity less than 100 shares if price >= $1 or price < $0.10; or less than 500 shares if price in the $0.10 – $0.99 range).
Please be reminded that at Virtual Brokers ETFs are always free to buy.
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 200 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions.
Open a new Non-Registered trading account and fund it with at least $100 by December 18, 2020 and you may receive a random cash bonus ranging from $1 to $4,500. The cash bonus amount will be equivalent to the value of one of the fifteen stocks that have been selected by Wealthsimple Trade for this program. Please refer to the Terms and Conditions for more details.
Desjardins Online Brokerage is offering 5 commission-free trades for new 18-30 years-old Disnat Classic clients depositing at least $1,000. See terms and conditions for full details.
Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details.
Be one of the first 100 clients to open and fund an account with a minimum of $10,000 at Qtrade Investor using the promo code TRADE695 and you may be eligible for 100 trades at a preferred commission rate of $6.95 for 6 months. See terms and conditions for more details.
Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link.
Open a new SmartFolio account and fund it with at least $1,000 and you could receive 0.5% cash back up to $1,000. Use promo code SFJAN1000 when opening a new account. See terms and conditions for full details. This offer is limited to new SmartFolio clients only, and can be combined with the refer-a-friend promotion.
BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details.
Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth.
Professionals and students in the below fields can benefit from a reduced pricing structure:
* Engineering students
* Legal, accounting and business students
* Healthcare students
* Health sciences students
* Nursing students
Benefits:
* $5.95 commission on equities
* $0 commission on ETFs
* $0 annual administration fee
Accounts holders who are 30 years old or younger are offered 10 free trades each year. After the free transactions, a commission rate of $4.95 per transaction will be applied (which is just half of the regular price).
So. Much. To. Unpack. Unlike most pundits this week, we’re not going to talk about GameStonks, at least not in the kind of depth we normally would. No, for the moment we’ll save the commentary for the forum chatter and DIY investor feedback from Twitter.
There’s plenty on the menu for this edition of the Roundup. In fact, there’s so much to say about the latest online brokerage rankings from Rob Carrick at The Globe and Mail that we’ve decided to focus this edition on the wealth of data and insights the latest edition has delivered. To keep things on point with the conversations happening online, we’ve also included highlights from the forums and on Twitter. Get comfy – this is going to be a long (but fun) ride.
The Unsettled Elephant in the Room
We can safely say this up front: This current market is unlike anything we’ve ever seen before.
Specifically, the mobilization of massive waves of investors pouring into stocks that are heavily shorted and being able to generate shockwaves through the capital markets. Never before, or at least not in recent memory, have so many people learned so much about shorting, squeezing, margin, clearing, and settlement as they have in this past week.
Moreover, the lesson in what matters most to online investors – content and community – came courtesy of Reddit, a website that eschews modern aesthetics.
An almost incalculable number of lessons are to be learned from the time we’re living through (especially as DIY investors), so we won’t be covering these in this edition of the Roundup because there’s simply not enough time and space this week for all of it. In fact, in compiling the reactions online to the Canadian discount brokerages via Twitter, the software we use crumbled under the sheer volume of the conversation, taking with it hours of work sifting through visceral and convulsive reactions by online investors (traders) to the trading of GameStop, AMC, Blackberry, and others.
For now, it’s sufficient to leave this video as a tongue-in-cheek summation of events.
Rest assured, as the dust settles (probably faster than trades from Robinhood – had to do it), the spotlight will move to the seismic shift in trading behaviour we’re witnessing right now.
ICYMI: Robinhood CEO Vlad Tenev spoke out yesterday after the company decided to restrict trading in GameStop and other stocks. “In order to protect the firm and protect our customers we had to limit buying in these stocks,” he told @andrewrsorkin. https://t.co/LsJ5iNjJABpic.twitter.com/XutnOQn9YN
2021 Canadian Online Brokerage Rankings: Spotlight on Service
Now in its 22nd edition, The Globe and Mail online brokerage rankings, authored by Rob Carrick, are one of the most popular rankings available for Canadians who are shopping around for a new online brokerage or are simply interested in making sense of trends in the DIY investing space.
This past week, the latest edition of the rankings was published, and this one is by far one of the most interesting editions yet.
Fair warning, this post is going to be a long one, in part given the historic nature of current market conditions but also because of additional data added to this year’s review that doesn’t ordinarily appear in it.
What Goes Into the Online Brokerage Rankings?
Over the past two decades, there have been numerous changes to the review, ranging from what time of year it gets published, to the criteria used to evaluate brokerages, to the accessibility of the reviews themselves. These small changes make comparing absolute performance from year to year a challenge, so as a result, one of the best ways to understand the meaning of these reviews is on a relative basis. Contextually, there are important changes or factors that arise over time that make up part of how online brokerages get evaluated.
An important factor to note in the assembly of the rankings is that this review is based on data from the prior year. Or at least that’s how things used to operate. While the bulk of the 2021 online brokerage rankings are based on data from 2020, there is a significant addition to this year’s results: telephone customer service wait times that were collected in mid- to late-January of 2021. The data, which was supplied by financial research firm DALBAR Canada, tested the telephone wait times at all Canadian online brokerages.
It bears mentioning that the likely reason behind including telephone customer service experience stems from the many (many) complaints from online investors over the past year and especially in the latter portion of 2020 (and early 2021) concerning reaching an online brokerage by phone. If there is one thing that Rob Carrick’s reviews and commentary on the online brokerage space in Canada have evolved into, it’s a barometer for some of the most salient issues (and frustrations) faced by DIY investors.
With some important context out of the way, let’s dive into the results themselves to see what the scores looked like across the board this year, who was included (and who was not), as well as some of the important drivers of success in this year’s rankings.
Results from the 2021 Canadian Online Brokerage Rankings
To help put this year’s results into context, the table below compares the most recent set of scores to those of the past two years (2020 and 2019).
One of the first things that jumps out is in relation to first place in these rankings and which online brokerage scored the best: Qtrade Investor.
For the past three years, Qtrade Investor has achieved the highest score in this ranking and, in 2019, had to share that accolade with Virtual Brokers and TD Direct Investing. Since 2019, however, Qtrade Investor has handily outscored its rivals – including last year, when it scored an A+ rating. This year, Qtrade did earn the highest mark, an A, but it was a lower score than last year. No stranger to the podium, Qtrade Investor has been voted best online brokerage by The Globe and Mail 12 times in the 22-year history of the rankings.
Coming in second this year was TD Direct Investing, which is one of Canada’s largest and most popular online brokerages. As with Qtrade Investor, TD Direct Investing saw their score in 2021 drop from 2020, in this case falling to an A- from an A.
Third place, interestingly, was a tie between Interactive Brokers and Questrade, both of whom received grades of B+. One of the reasons this is an interesting result is because Interactive Brokers was, for many years, not included in The Globe and Mail rankings since they primarily catered to more active investors and traders (as opposed to the “everyday investor”) and they lacked an RRSP offering, which they now currently do offer. Since 2019, Interactive Brokers’ score has remained fairly level at B+, but Questrade has seen their score slip slightly, from an A- in 2019 to B+ in both 2020 and 2021. This year, however, that B+ was good enough to tie for third place.
While the middle-of-the-pack experience has largely remained intact, HSBC InvestDirect has consistently remained at the bottom of the rankings for the past three years. Despite their low commission rates, international access, and award-winning client service, several factors that matter more to these ratings, such as mobile accessibility, impacted the scores.
Also of note this year, only two of the 12 Canadian online brokerages covered this year improved in their scores relative to last year. BMO InvestorLine raised their score from a B- to a B, and CIBC Investor’s Edge improved from a C to a C+. In contrast, five online brokerages dropped in scoring compared to last year, the most notable among them being Scotia iTrade, which went from an A- to a B. Another interesting negative trend showed up for Virtual Brokers. In 2019 they tied for the highest score, an A that year, with Qtrade Investor and TD Direct Investing. In 2020, however, they slipped to a B+, and in 2021 they scored a B.
Not on the list of Canadian online brokerages reviewed for this ranking was Wealthsimple Trade – a notable absence given both the visibility and the popularity with younger investors. This is not the first review that the newest kid on the online brokerage block has had to sit out. However, in the context of Wealthsimple Trade’s features, pricing, and volume of interest, not to mention sheer growth in numbers, DIY investors are likely curious about how the brokerage would fare in the rankings framework.
As far as grades go, a comparison to 2019 shows that performance across the board has, on a relative basis, worsened. The strongest drivers for scoring on The Globe and Mail brokerage rankings have always leaned toward the experiences of “everyday investors” rather than more-active traders. This year, the ranking criteria are based on:
Convenience and security
Cost
The investing experience
Tools
Importantly, a big part of the convenience and security component of this year’s results included phone access, something that has been a major pain point throughout 2020 but especially into the end of the year.
Call Options
To address this timely topic, in addition to relying on data generated from 2020, this year the online brokerage rankings included telephone wait time data supplied by financial services research firm DALBAR Canada – and those results were also fascinating.
One of the first, and most glaring, results from that snapshot is that wait times in January at online brokerages averaged out at 92 minutes, with a standard deviation of almost 52 minutes. The importance of reporting the standard deviation here is clear because, while an average wait time of 92 minutes is bad enough, it doesn’t accurately convey how bad things are right now for DIY investors trying to contact customer service.
For a more accurate view, there’s going to be a little bit more math required.
What the overall average of wait times doesn’t convey is that the data has a couple of very clear outliers at both the short and the long ends of wait times. To help put this into perspective, the shortest wait time average was 7 minutes (Virtual Brokers), and the longest was 179 minutes (Scotia iTrade). That works out to almost 26x more time spent waiting to speak to someone at Scotia iTrade than at Virtual Brokers.
These two extreme data points suggest they were outliers, and outliers tend to add noise or skew the more realistic picture. The next outlier in the data was Qtrade Investor, with an average wait time of 28 minutes – which is still long by most reasonable standards but is significantly lower than the next highest online broker, TD Direct Investing, where telephone wait times were 58 minutes on average.
Excluding the wait times of Virtual Brokers and Qtrade Investor as outliers, the average wait times at 83% of the Canadian online brokerages worked out to be 107 minutes, more than double what it would be if Virtual Brokers and Qtrade Investor were included in the analysis. Even more telling, the standard deviation drops to 42 minutes. At the upper end of the wait time range, if we exclude Scotia iTrade, with a wait time of 179 minutes, and Desjardins Online Brokerage, with a wait time of 170 minutes, a much more accurate view of wait times emerges.
The average wait time drops from 107 minutes to 91 minutes (about a 15% decrease), and the standard deviation drops from 42 minutes to 26 minutes (a 38% decrease). This represents 66% of the data, or eight out of 12 online brokerages.
Wait Times
Average (mins)
Standard Deviation (mins)
% of Brokers Represented
All Brokerages
92
52
100
Shortest Outliers Excluded
107
42
83
All Outliers Excluded
91
26
66
3 of Big 5 Banks (outliers excluded)
93
7
25
In light of the above data (that excludes outliers at the upper and lower extremes), and assuming a normal distribution, 68% of the time, calling an online brokerage in Canada in January would have resulted in a wait time of between 65 and 117 minutes. And 95% of the time, or 19 times out of 20, the wait time for a DIY investor would have been between 39 and 143 minutes. And 99.7% of the time, a Canadian DIY investor would have waited between 13 and 169 minutes. In other words, getting served quickly would be more because of good fortune than because of the system working as it should.
Let that sink in for a moment. These are private, profit-driven, million- or billion-dollar brands (in some cases) that are posting these kinds of numbers. For illustration, three out of the big five Canadian bank-owned online brokerages posted a remarkably consistent range of wait times: 93 minutes with a standard deviation of 7 minutes. On a peer-to-peer basis, this highlights how far ahead TD Direct Investing’s scores (with wait times of 58 minutes) would be relative to the others and how far behind Scotia iTrade sits. In either of these two cases, these would be considered so far outside of a statistical norm that it is not by accident that they’re achieving these numbers.
Imagine the frustration, dropped calls, and erosion in trust that occurs when an on-demand world meets a two- or three-hour wait time. And this doesn’t even factor in waiting by online chat.
It naturally raises the question: What are Virtual Brokers and Qtrade Investor doing so well, which causes them to be able to answer the phone so fast (relatively speaking), and what are Scotia iTrade and Desjardins Online Brokerage doing so poorly? One possible conclusion points to a capability of being ready to scale up, as pointed out in the Influencer Edition of the Look Back / Look Ahead series.
Now, to be clear, these numbers do not indicate whether or not issues were resolved, just how long it took for someone to answer the phone. Also, these are snapshots in time, and there is no comparable data taken from similar time periods to benchmark against. The fact that these tests added to the caller queue means they affected wait times, even if the impact was slight, so the numbers do need to be treated with some caution.
Even so, it is cause for concern for DIY investors to see that wait times can be meaningfully measured in hours instead of minutes. Coming into the peak season for RRSP contributions, it means that volume will only increase, as will frustration levels. If there are any outages, huge rallies or crashes in the market, or other market-moving events, then RRSP contributions via telephone are going to be nearly impossible at most Canadian online brokerages.
Of course, telephone service isn’t a major selling point for a lot of online investors. In fact, many will never have to deal with a client service rep on the phone, but there are some things that can happen only by talking to a representative. For a portion of the DIY investor population, that translates into being forced to wait.
That said, there are indications that this is clearly an issue of concern to certain online brokerages and that relief may be on the way.
Relief for Long Wait Times
First, in an interesting interview by Preet Banerjee with BMO InvestorLine’s president, Silvio Stroescu, there were some fascinating insights on the impact of the past year on this online brokerage. According to Stroescu, the huge influx of demand for online investing accounts, as well as from investors looking to “upgrade” their accounts, took customer service wait times from an average of five minutes in early 2020 to about 40 minutes in 2021.
The numbers reported by Stroescu for 2021 are still much higher than he was happy with, and in the interview he did explain a number of steps that BMO InvestorLine is undertaking to close the service gap. In fact, as early as this past summer, Stroescu mentioned that BMO InvestorLine undertook significant hiring and ramp-up to provide additional service support. Nevertheless, the observed results of DALBAR’s numbers and reported numbers of Stroescu all point to a significant wait time for online investors calling in.
Another interesting piece of news came from Questrade, in advance of the RSP season rush, in the form of a client email. In that email, they acknowledged that “longer wait times are the norm with all brokerages at this time,” that over the past year they have doubled the number of client service specialists, and that in the “coming weeks” they are slated to add over 100 customer service agents.
Putting the Pieces Together
Clearly, there’s much to digest from the data in this year’s edition of the Canadian online brokerage rankings by The Globe and Mail’s Rob Carrick.
So much of the story that started in March of 2020 was about the volume of activity as well as the influx of individuals who wanted to trade on the market. The impact on Canadian online brokerages, in terms of service as well as stability, has been clear. The statistics point to a systemic lack of capacity to be able to address the surge in interest in online investing coupled with technology and operational shortfalls.
What, as a DIY investor, is especially worrisome about the online brokerage experience is that it has taken so long to remedy the capacity issues. Markets rely on confidence, and confidence comes from certainty. The relative stability of scores in the Canadian online brokerage space points to a “business as usual” pace that was moving far too slowly, or did not plan adequately, for the kind of strain that ultimately emerged over the past year. That said, at certain online brokerages, the persistent wait times point to a much deeper issue and lack of prioritization of client service. Conversely, some other brokerages have clearly shown the capacity to keep up somewhat reasonable wait times.
The qualitative commentary this year was in line with previous years; however, one of the great features for investors trying to get a quick answer on comparing features is toggling comparisons for key items like commission-free ETFs, high-interest savings ETFs, and performance reporting.
As much as we have said about this year’s rankings, there’s also a lot that we haven’t yet covered, including the reactions of investors to this data. This year’s rankings generated almost immediate reactions by readers, with the dominant theme being wait times at various brokerages.
With the latest rankings data in hand, it won’t just be hedge funds feeling the squeeze this year. The online brokerages in Canada now have added pressure to solve the customer service wait time issue and win back the trust of investors. Failing to do so quickly would almost certainly, at this point, raise the prospect of additional regulation and compliance to mandate accessibility and accountability.
After so many years of the markets doing well and interest rates dropping, one investor wonders in this post if a market downturn is now unlikely, if not impossible. Other Redditors share their strong opinions on whether the stock market can stay up forever.
Into the Close
That’s a wrap on just one of the several big events that transpired this past week. Looking forward, there’s a new month, which means a deals update is on its way, and there will likely be no letup from the buying army of retail investors who’ve firmly locked into all sorts of shorted stocks, including silver. Buckle up for volatile times ahead.
*Update: January 8* Cheers to 2021! While 2020 marked a year full of surprise and change – both inside and outside the DIY investing space – we believe it is safe to say we are all ready for a fresh start. To help you ring in the new year and celebrate in (financial) style, Sparx Trading has rounded up the latest deals and promotions from Canadian discount brokerages.
With 2021 officially here, RRSP season is now officially in full swing. Whether it is a personal New Year’s resolution of yours or not, make sure you do not fall victim to procrastination this year. The deadline for contribution to RRSPs to count for the 2020 tax year is March 1st, 2021.
Scroll on to learn more about all the current online brokerage deals and promotions for January – including a new offering and a few that are set to expire at the very start of the month.
As always, we will continue to monitor the deals space and provide updates on new discount brokerage developments, so make sure you check back throughout the month. In the meantime, if you discover any new deals that you believe would be of interest to fellow DIY investors, please let us know in the comments below.
Expired Deals
The stroke of midnight not only signified the beginning of a new year, but it also signified the end of several online brokerage deals. Optimistically, we expect that after the holiday, various online brokerages will be updating their sites and long-standing offers which technically happened to expire might be given a new lease on life. That said, here’s what officially expired as of January 1st, 2021.
National Bank Direct Brokerage’s 100 free online trades
Questrade’s 5 commission-free trades and month-long commission-free trades/advanced data (now back)
RBC Direct Investing’s 25 commission-free trades
Virtual Brokers’ “No Minimum 2020” promotions all expired on December 31st, 2020
During the month of December, we also saw a rather creative cash back offer from Wealthsimple Trade quietly expire.
Looking ahead, three promotions are scheduled to expire on January 5th, 2021: BMO SmartFolio’s cash back promotion, BMO InvestorLine’s refer-a-friend campaign, and BMO InvestorLine’s Fall 2020 cash back campaign. See tables below for full promotion details and eligibility requirements.
Extended Deals
*Update: Jan. 8 – Questrade’s promotion section is now up to date as their entry level five commission-free trade offer makes a comeback. Also back, is the 30 days of unlimited commission-free stock and option trades in the form of commission rebates, plus one free month of an advanced data package, when opening a new account. Both deals will expire on December 31st. See the full terms and conditions in the tables below.*
New Deals
*Update: Jan. 8 – RBC Direct Investing has launched a new cash back promotion that will run until the spring. Set to expire on March 31st, this new deal offers cash back and commission-free trades to investors who open a new account and transfer funds from a non-RBC investment account to their new account. See the table below for full terms and eligibility details.
BMO InvestorLine has also launched a new cash back promotional offer which is set to expire on March 2, 2020. This new promo is a tiered promotion and qualifying deposit levels start at $15,000. Scroll down to see the full promotion terms and conditions.*
Though not technically new, we are adding the Wealthsimple Trade referral promotion to our coverage. DIY investors can receive cash towards their next trade each time a new client signs up for an account using their referral link. For more details, including eligibility requirements, please see the table below.
Open a new RBC Direct Investing account by March 31, 2021 and fund it with at least A) $5,000; B) $25,000; C) $50,000; D) $100,000; E) $250,000; F) $500,000 or G) $1M+ by May 31, 2021 and you may receive a cash back of A) $50; B) $100; C) $200; D) $300; E) $500; F) $1,000 or G) $2,000; plus 10 free trades to be used by August 31, 2021. The fund must be from a non-RBC investment account. Use promo code WCMP2 during account opening and be sure to review the full Terms and Conditions.
A) $5,000 B) $25,000 C) $50,000 D) $100,000 E) $250,000 F) $500,000 G) $1M+
Cash Back: A) $50 B) $100 C) $200 D) $300 E) $500 F) $1,000 G) $2,000 Plus 10 free trades
Scotia iTRADE is offering two choices for new investors who open accounts before March 1, 2021 and fund it with at least A) $5,000; B) $10,000; C) $25,000; D) $50,000; E) $100,000; F) $250,000; G) $500,000 or H) $1M+: Option 1: you can use promo code C21 to receive cash reward of A) $25; B) $50; C) $100; D) $200; E) $400; F) $750; G) $1,000 or H) $1,500; plus a discounted commission of $6.99 per trade until June 30, 2021. Option 2: Use promo code FT21 and you may be eligible for A) 10; B) 20; C) 50; D) 100; E) 200; F) 300; G) 400 or H) 500 free trades to use for 90 days after the account is funded. See terms and conditions for full details.
A) $5,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000 F) $250,000 G) $500,000 H) $1M+
Cash Back: A) $25 B) $50 C) $100 D) $200 E) $400 F) $750 G) $1,000 H) $1,500 or Free Trades: A) 10 B) 20 C) 50 D) 100 E) 200 F) 300 G) 400 H) 500
Fund your new or existing CIBC Investor’s Edge account before March 2, 2021 with at least A) $10,000; B) 25,000; C) $50,000; D) $100,000; E) $500,000 or F) $1M+ and you may be eligible to receive a cash back reward of up to A) $50; B) $100; C) $200; D) $500; E) $1,000 or F) $2,000. To qualify, the fund must be from outside CIBC. No promo code required. See terms and conditions for full details.
A) $10,000 B) 25,000 C) $50,000 D) $100,000 E) $500,000 F) $1M+
Cash Back: A) $50 B) $100 C) $200 D) $500 E) $1,000 F) $2,000
Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $15,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F)$1M+, and you may be eligible to receive a cash back reward of up to A) $150; B) $250; C) $500; D) $800; E) $1,000 or F) $2,000. Use promo code SDCASH2000 when registering to qualify. Be sure to read full terms and conditions.
A) $15,000 B) $50,000 C) $100,000 D) $250,000 E) $500,000 F) $1M+
Cash Back: A) $150 B) $250 C) $500 D) $800 E) $1,000 F) $2,000
Open a new TD Direct Investing account by March 1, 2021 with promo code INVESTNOW and fund it with new assets worth at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000, and you may be eligible to receive a cash back reward of up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. The fund must be deposited to the account by April 30, 2021 and at least one trade is placed by June 30, 2021. In addition, you may also be eligible for another $100 cash reward by setting up a Monthly Contribution Plan (min. $100 per month) with the first contribution occur before April 30, 2021. The maximum reward one could receive is $1,100. See terms and conditions for full details.
A) $15,000 B) $25,000 C) $100,000 D) $250,000 E) $500,000
Cash Back: A) $100 B) $200 C) $300 D) $500 E) $1,000
New clients who open and fund a new Qtrade Investor account before March 01, 2021 with at least A) $25,000; B) 50,000; C) $100,000; D) $500,000; E) $1M or F) $2M+ may be eligible to receive a pre-paid Visa gift card of up to A) $50; B) $100; C) $250; D) $800; E) $1,500 or F) $2,000. Only the first 500 customers are eligible. Please use promo code VISA2K. See terms and conditions for full details.
A) $25,000 B) $50,000 C) $100,000 D) $500,000 E) $1M F) $2M+
Cash Reward: A) $50 B) $100 C) $250 D) $800 E) $1,500 F) $2,000
New accounts opened between Jun 22 and Dec 31, 2020 will be awarded 100 free online trades in one year. This promotion applies to new and existing NBDB clients who use the code “FREE2020” to open new accounts. There’s no minimum funding requirement, however some other restrictions may apply.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully.
Open a new RBC Direct Investing account by December 31, 2020 and fund it with at least $5,000 by March 5, 2021 and you will receive commission rebates for 25 trades that occur within 1 year of account opening. Be sure to use promo code NTBW2 during account opening. You will be charged regular commissions on the trading date, and the rebate will be deposited back into your account after 3-5 business days. If you are an existing customer to RBC DI, the type of the new account being opened must be different from the account types that you current have.
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details.
$25,000
commission-free trades for 1 month + 1 month of advanced data.
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.
A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+
$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back
Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)
If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link.
A) $10,000 B) $50,000+
A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50)
You may receive $10 cash incentive for each new client that you refer to Wealthsimple Trade. They must use your unique referral link during account opening and make a trade value of at least $100. The referred friend will also get $10.
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details.
$1,000
$25 cash back (for both referrer and referee)
Cash deposited at the end of the month in which referee’s account funded
If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details.
$5,000
You(referrer): $50; Your Friend(referee): $50
Payout occurs 45 days after minimum 90 day holding period (subject to conditions).
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered.
$152.55
$15,000
Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information.
none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details.
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details.
$150
$25,000
Transfer Fee Promo Contact client service for more information (1-800-465-5463).
none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.
$135
$25,000
Confirmed with reps. Contact client service for more information (1-800-567-3343).
none
Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details.
$200
Contact client service for more information
Contact client service for more information (1-888-776-6886)
none
Expired Offers
Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $10,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info.
The minimum commission per equity trade ($1.99) is waived for new accounts from account opening till December 31, 2020. As a result, your commission is just 1¢/share (max $7.99). However, this offer does not apply to Odd Lot orders (i.e. orders with quantity less than 100 shares if price >= $1 or price < $0.10; or less than 500 shares if price in the $0.10 – $0.99 range). Please be reminded that at Virtual Brokers ETFs are always free to buy.
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 200 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions.
Open a new Non-Registered trading account and fund it with at least $100 by December 18, 2020 and you may receive a random cash bonus ranging from $1 to $4,500. The cash bonus amount will be equivalent to the value of one of the fifteen stocks that have been selected by Wealthsimple Trade for this program. Please refer to the Terms and Conditions for more details.
Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details.
Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details.
Be one of the first 100 clients to open and fund an account with a minimum of $10,000 at Qtrade Investor using the promo code TRADE695 and you may be eligible for 100 trades at a preferred commission rate of $6.95 for 6 months. See terms and conditions for more details.
Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link.
Open a new SmartFolio account and fund it with at least $1,000 and you could receive 0.5% cash back up to $1,000. Use promo code SFJAN1000 when opening a new account. See terms and conditions for full details. This offer is limited to new SmartFolio clients only, and can be combined with the refer-a-friend promotion.
BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details.
Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth.
Professionals and students in the below fields can benefit from a reduced pricing structure: * Engineering students * Legal, accounting and business students * Healthcare students * Health sciences students * Nursing students Benefits: * $5.95 commission on equities * $0 commission on ETFs * $0 annual administration fee
Accounts holders who are 30 years old or younger are offered 10 free trades each year. After the free transactions, a commission rate of $4.95 per transaction will be applied (which is just half of the regular price).
Take a deep breath. Believe it or not, December is here, and with it, news of several COVID-19 vaccines, stock markets making record highs, and hope on the horizon. Certainly not a coincidence. Another non-coincidence at this time of year is the appearance of special treats and the idea of wrapping things up with a bow.
In this special edition of the Roundup, we turn once again to the topic of deals and promotions, with a regularly scheduled check-in of the deals landscape to kick off the new month. From there, the big announcement: Sparx Trading’s exclusive Look Back Look Ahead series for 2020-2021 is now live! We’ve got a great overview of this unique series that features Canadian online brokers giving their perspective on the past year as well as on what’s coming in 2021. And, as always, we’ve got a full helping of DIY investor comments from Twitter and the DIY investor forums.
De(al)cember Update
The countdown to the end of the year has been going on for some time, but now that December’s here, the finish line to 2020 is in sight.
Despite the gloomy weather and even gloomier forecasts for COVID-19, the SparxTrading.com online brokerage deals and promotions section offers some brighter news. As is customary at the start of each month, we take stock (pun intended) of the deals and promotions landscape among Canadian online brokerages. The good news: this year is as strong as ever in terms of promotional activity among Canadian brokerages.
Although no new deals launched at the beginning of December, a very competitive offer from National Bank Direct Brokerage did get extended for another month. The 100 commission-free trade offer by NBDB is one of the most competitive offers for DIY investors interested in commission-free trades, and with zero deposit requirements, it also has the lowest hurdle.
Last month was a watershed moment for deals and promotions activity among Canada’s online brokerages. After being mostly dormant since the end of RSP season last year, almost all online brokerages decided to launch a cash-back or commission-free trade offer.
Interestingly, there are still a few brokerages currently not on the deals and promotions list, something we anticipate changing either this month or early next month. Firms we expect to see stepping into the promotional space soon are Qtrade Investor, HSBC InvestDirect, and Virtual Brokers, given the fact that other brokerages are already offering something.
Finally, another deal we’re watching this month is Wealthsimple Trade’s “free stock” offer, which is set to expire on December 18th. It is an unusual time for a promotion to end, but it is encouraging to note that the deal is happening at all, since offering zero-commission trading is a significant draw on its own.
With all of these offers currently in play, this is likely an ideal window for online investors interested in an investing account to maximize the selection of promotions.
So, while the weather outside is frightful, this might be the most wonderful time of the year for getting a little extra boost for opening an online brokerage account.
Sparx Trading’s Online Brokerage Look Back Look Ahead Is Live!
More countdown-related content continues to emerge this month, this time from yours truly at Sparx Trading.
Our highly anticipated fourth edition of the Look Back Look Ahead series is here, and – to borrow from Robinhood’s Market Snacks podcast (fair game to borrow from Robinhood, amirite?) – this is the best one yet.
This edition features in-depth submissions from six Canadian online brokerages that offer a fascinating set of perspectives on how 2020 unfolded and preview what they have in store for 2021. In addition, we’ve given our own perspectives on the online brokerages that did not provide a submission and outlined what we thought were noteworthy developments during the year. Finally, we’ve provided a detailed preview of what the next version of SparxTrading.com has in store for DIY investors.
The series is now in its fourth iteration, and it’s interesting to see how things have evolved since we first launched it in 2014. One of the readily apparent changes is that in addition to a blog format, we also have a magazine edition, which we rolled out starting in 2018. Even though it takes considerable work to pull together a magazine format, we thought it was an opportunity to create something great-looking and engaging, which offered a different way to present stories about an exceptionally fascinating year.
One thing that has remained consistent about contributions to the Look Back Look Ahead series has been the unique perspective that only the voices of the online brokerages’ senior leaders can provide. It remains a rare opportunity to hear from senior stakeholders on how the year unfolded as well as their vision for the year ahead.
Another great feature of this year’s issue is that the Q&A format provides an interesting perspective on several points relevant to DIY investors, including:
What beginning investors can expect
What active investors can expect
Which online investing trends they think will matter to DIY investors
What user experience means to their firm
What sets their firm apart from their peers
As referenced in the beginning of the blog version of this series, there were a number of themes that emerged from the responses and analysis of the online brokerage landscape from 2020. Three big themes that stood out were the need for agility, the importance of communication, and the rising prominence of user experience.
Based on a macro view of what has transpired this year, the consensus is that COVID-19 helped accelerate the future into the present. For the world of online investing, it seems that DIY investors will be looking beyond just the headline price of commissions to the full experience of what it means to be “self-directed.” Case in point: Despite DIY investors having to pay commissions for trades, the industry as a whole saw record-breaking account openings and trading volumes during the height of the market volatility, from March through the summer.
What has become clear, now even more than in previous years, is the need for transparent and ongoing communication in order to create strong relationships with clients. With the heightened uncertainty, communication channels at online brokerages have been tested, and going forward, the hallmark of an online brokerage who “gets it” will be one that excels at communicating with clients proactively. Further, DIY investors will be looking for brokerages to harden the systems that matter in a crisis or in times of extreme volatility. Patience for service interruptions or delays has worn thin, and demonstrating “uptime” is also going to become a marker of quality.
On a lighter note, observant viewers will notice that our cover art tried to capture the work-from-home look, something that embodies the spirit of 2020 for many of us. There are some special details we tucked into the image that we’re sure DIY investors can appreciate. Sticking to the aesthetic for a moment, the soon-to-be-launched new website and content will feature our bull and bear prominently. Unless it’s sensationalistic, a lot of financial content is difficult to engage with, so we hope to continue to provide a more engaging way in which to consume DIY-investor-focused content.
Personally, I found this issue to be an enriching read, and I am excited by the prospect of DIY investors discovering something new and interesting about the Canadian online brokerage landscape as we move through the end of 2020 (thankfully) and into a new chapter in 2021.
To read the Look Back Look Ahead series, click here.
A Redditor in Ontario with a baby arriving soon asks in this post how to establish an RESP and get the full benefit of it – and also wonders if they need to be actively involved after the initial setup.
Exasperated by Exorbitant Expenses
In this post, one frustrated investor wants to know why Canadian brokerages have such high fees compared to their American counterparts. Redditors weigh in with their best theories.
Into the Close
That’s a wrap on this early-December edition of the Roundup. Markets continue to price in optimism around the corner, which should continue to lift spirits for now. There have been some significant comeback stories this past week – including Blackberry – and even more excitement as IPOs like Airbnb and DoorDash prepare their public debuts. One thing’s for sure, there’s lots to keep DIY investors glued to their screens in what was supposed to be a quieter time of year.
After making it through 2020, there are few things that would count as truly surprising anymore. Between COVID-19, the wild US presidential election and everything else that has unfolded this past year, 2021 can’t come fast enough for many of us.
For Canadian DIY investors and Canada’s online brokerages, despite a wild year of volatility, volume and very rapid change the macro picture appeared to be a positive one. Record account opening, revenues from trading and after a sharp selloff, a strong rebound in stock markets have favourably positioned Canadian online brokerages heading into the new year.
In the latest edition of Sparx Trading’s exclusive Look Back / Look Ahead series, Canada’s online brokerages provide a unique snapshot of the past year at their respective firms, as well as provide an enticing view to 2021 – yet one more reason the new year can’t come quickly enough.
This edition is one of the most fascinating yet. If for no other reason, hearing about what 2020 was like at Canada’s online brokerages during such historic times is worth tuning into. There is, however, so much more worth finding out about.
Also included in this issue is a fascinating preview of what Canada’s online brokerages have in store for DIY investors in 2021. Further, our unique Q&A feature zeros in on what beginner and active investors can expect from each online broker as well as what sets each online brokerage apart from their peers.
There is lots more content that DIY investors can dig into, so be sure to check out the featured brokerages that provided detailed submissions of the year that was and what’s coming up.
In the meantime, we’ve put together three key themes that emerged from this year’s series that provide some food for thought when assessing the Canadian online brokerage space.
Theme 1: Agility
COVID-19 forced massive change on everyone, online brokerages included. Withstanding a pandemic-level impact was only one of the major challenges Canada’s online brokerages had to move quickly to address, however.
Compounding the challenge was the sheer volume of interest from DIY investors to open up and fund their online investing accounts. Ultimately it came down to agility, technical capability and operational resilience.
Online brokerages who already had invested in online account sign ups were able to more readily handle the challenges that accompanied the immense interest in opening accounts than those who had to route investors through paper-driven sign up processes.
The key takeaway for DIY investors is that COVID-19 showed which online brokerages were more ‘change ready’ and which features matter during times of heightened market volatility.
Theme 2: Communication
With so much of our lives now digitized, instant access to what’s going on is now the norm. A great example is Uber Eats – where you can find out in real time where your food order is.
In that world, DIY investors will be hungry for more information from their online brokerages. It might be price, it might be service experience, it might be platforms or even promotions. One thing that stands out about online brokerages in 2020 is that those who prioritized connecting and communicating with investors are now better positioned to have their story and message heard.
With so many online brokerages available to service DIY investors in Canada, those that are able to create special content or deliver engaging investor education experiences or simply have a solid, regular communications strategy in place can ensure DIY investors have something worth tuning into.
Theme 3: User Experience
This was one of the more fascinating trends to dive into in this issue of the Look Back Look Ahead feature.
For DIY investors, it was reassuring to see online brokerages define user experience in terms of customer experience. That said, one of the challenges created by 2020 is that there are lots of novice investors who have entered the markets on a whim and for whom the markets only appear to be making new highs.
Providing this new crop of investors with the right tools and resources to navigate the journey of online investing will be important. Further, the balancing act continues between older clients who may not be as tech savvy or inclined towards mobile features, and younger investors who are demanding different aesthetics to websites and apps. Interestingly, there will be several notable upgrades in platforms and online investing experiences coming throughout 2021 so we’ll be curious how different online brokerages tackle the challenges in the new year.
Click the links below to learn about what each Canadian online brokerage had to say about 2020 and what to look forward to in 2021.
*Update: December 18* After what has simultaneously felt like the fastest yet slowest year ever, we have finally made it to December! In true holiday fashion, Sparx Trading is here to spread old-fashioned cheer and merry updates as we take a (cautious and socially distanced) step into the final month of 2020.
Scroll on to learn more about all the current online brokerage deals and promotions for December. We’re keeping a close eye on the deals space, so don’t forget to check back throughout the month for more jolly updates. And if you find an offer that would be great for other DIY investors to know about, please let us know in the comments.
Expired Deals
*Update: Dec. 18 – Wealthsimple Trade’s trade free stock promotion ends on today, December 18th, 2020. Be sure to open an eligible account by 11:59:59 PM EST today to qualify. Full details can be found in the table below.*
Extended Deals
National Bank Direct Brokerage’s 100 free online trades promotion has been extended! The new deadline for this huge free trade offer expires December 31st, 2020.
New Deals
*Update: Dec. 18 – Qtrade Investor has just launched a promotion for new clients who open an account by March 1st, 2021. Clients who open a new account are being offered two rewards to choose from: a cash reward or preferred pricing trades. See the table below for more details on the promotional rewards, as well as full terms and conditions.*
Scotia iTRADE is offering two choices for new investors who open accounts before March 1, 2021 and fund it with at least A) $5,000; B) $10,000; C) $25,000; D) $50,000; E) $100,000; F) $250,000; G) $500,000 or H) $1M+: Option 1: you can use promo code C21 to receive cash reward of A) $25; B) $50; C) $100; D) $200; E) $400; F) $750; G) $1,000 or H) $1,500; plus a discounted commission of $6.99 per trade until June 30, 2021. Option 2: Use promo code FT21 and you may be eligible for A) 10; B) 20; C) 50; D) 100; E) 200; F) 300; G) 400 or H) 500 free trades to use for 90 days after the account is funded.
Fund your new or existing CIBC Investor’s Edge account before Mar 2, 2021 with at least A) $10,000; B) 25,000; C) $50,000; D) $100,000; E) $500,000 or F) $1M+ and you may be eligible to receive a cash back reward of up to A) $50; B) $100; C) $200; D) $500; E) $1,000 or F) $2,000. To qualify, the fund must be from outside CIBC. No promo code required.
Open a new TD Direct Investing account by Mar 1, 2021 with promo code INVESTNOW and fund it with new assets worth at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000, and you may be eligible to receive a cash back reward of up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. The fund must be deposited to the account by April 30, 2021 and at least one trade is placed by June 30, 2021. In addition, you may also be eligible for another $100 cash reward by setting up a Monthly Contribution Plan (min. $100 per month) with the first contribution occur before April 30, 2021. The maximum reward one could receive is $1,100.
Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $250,000; D) $500,000 or E) $1M+, and you may be eligible to receive a cash back reward of up to A) $100; B) $250; C) $450; D) $950 or E) $2,000. Use promo code SDCASH2000 when registering to qualify. Be sure to read full terms and conditions.
New clients who open new Qtrade Investor accounts before Mar 01, 2021 have 2 options: (1) Fund your new Qtrade Investor account with at least A) $25,000; B) 50,000; C) $100,000; D) $500,000; E) $1M or F) $2M+ and you may be eligible to receive a pre-paid Visa gift card of up to A) $50; B) $100; C) $250; D) $800; E) $1,500 or F) $2,000. Only first 500 customers are eligible. Please use promo code VISA2K. (2) The first 100 clients who use promo code TRADE695 may be eligible for 100 trades at a preferred commission rate of $6.95 for 6 months. Minimum deposit $10,000 is required.
New accounts opened between Jun 22 and Dec 31, 2020 will be awarded 100 free online trades in one year. This promotion applies to new and existing NBDB clients who use the code “FREE2020” to open new accounts. There’s no minimum funding requirement, however some other restrictions may apply.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully.
Open a new RBC Direct Investing account by December 31, 2020 and fund it with at least $5,000 by March 5, 2021 and you will receive commission rebates for 25 trades that occur within 1 year of account opening. Be sure to use promo code NTBW2 during account opening. You will be charged regular commissions on the trading date, and the rebate will be deposited back into your account after 3-5 business days. If you are an existing customer to RBC DI, the type of the new account being opened must be different from the account types that you current have.
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details.
$25,000
commission-free trades for 1 month + 1 month of advanced data.
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.
A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+
$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back
Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)
If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link.
A) $10,000 B) $50,000+
A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50)
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details.
$1,000
$25 cash back (for both referrer and referee)
Cash deposited at the end of the month in which referee’s account funded
If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details.
$5,000
You(referrer): $50; Your Friend(referee): $50
Payout occurs 45 days after minimum 90 day holding period (subject to conditions).
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered.
$152.55
$15,000
Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information.
none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details.
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details.
$150
$25,000
Transfer Fee Promo Contact client service for more information (1-800-465-5463).
none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.
$135
$25,000
Confirmed with reps. Contact client service for more information (1-800-567-3343).
none
Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details.
$200
Contact client service for more information
Contact client service for more information (1-888-776-6886)
none
Expired Offers
Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $10,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info.
The minimum commission per equity trade ($1.99) is waived for new accounts from account opening till December 31, 2020. As a result, your commission is just 1¢/share (max $7.99). However, this offer does not apply to Odd Lot orders (i.e. orders with quantity less than 100 shares if price >= $1 or price < $0.10; or less than 500 shares if price in the $0.10 – $0.99 range). Please be reminded that at Virtual Brokers ETFs are always free to buy.
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 200 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions.
Open a new Non-Registered trading account and fund it with at least $100 by December 18, 2020 and you may receive a random cash bonus ranging from $1 to $4,500. The cash bonus amount will be equivalent to the value of one of the fifteen stocks that have been selected by Wealthsimple Trade for this program. Please refer to the Terms and Conditions for more details.
Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details.
Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details.
Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link.
Open a new SmartFolio account and fund it with at least $1,000 and you could receive 0.5% cash back up to $1,000. Use promo code SFNOV1000 when opening a new account. See terms and conditions for full details. This offer is limited to new SmartFolio clients only, and can be combined with the refer-a-friend promotion.
BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details.
Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth.
Professionals and students in the below fields can benefit from a reduced pricing structure: * Engineering students * Legal, accounting and business students * Healthcare students * Health sciences students * Nursing students Benefits: * $5.95 commission on equities * $0 commission on ETFs * $0 annual administration fee
Accounts holders who are 30 years old or younger are offered 10 free trades each year. After the free transactions, a commission rate of $4.95 per transaction will be applied (which is just half of the regular price).
Just because Halloween was seriously curtailed this year doesn’t mean there can’t still be a few treats dished out in a socially distant way. Besides, at this point, we’re all probably in need of some kind of boost to see us through what is going to be a wild week.
In this extended version of the Roundup, we kick things off with the launch of a new month and that means an update to see what’s been happening with online brokerage deals. From there, we continue coverage of the growing trend of DIY investor content that showed up in October, and how for one online brokerage, it was the lead-up to something big. And, for a bonus treat, we have included a handful of stories that we were watching but which didn’t make it into the full Roundup format – enjoy these bite-sized updates. As always, we close things out with updates from the investor forums and DIY investors on Twitter.
Cold November Rain, Warming Discount Brokerage Deals?
For Canadian deal-hunting DIY investors, the start of November is when the stars align. Not only is it the month in which Black Friday deals surface, but it also is the start of a new fiscal year for many online brokerages in Canada, and – the best part – it is the ramp-up to the busiest stretch for online brokerage deals.
Even though RSP season is still several months away, November is typically the month in which online brokerages start launching some of their best offers of the year.
Out of the gate, the activity in this month’s discount brokerage deals and promotions section is quiet. No new offers launched as of the first day of the month (or at least no offers were advertised), but the fact that the new month started on a Sunday might have had something to do with that.
Thus, the picture for the start of the month is that the official deal count dropped by one, as the HSBC InvestDirect commission-free trade offer officially expired at the end of October (30th).
The news for DIY investors looking for a deal wasn’t all gloomy this past month.
Questrade announced that they have removed their inactivity fees. In doing so, they are now one of two online brokerages that have no inactivity fees regardless of account size. That simplifies not only pricing but also the terms and conditions investors have to keep track of.
In the past, November has been a very big month for online brokerage promotions to come to market. We suspect that despite 2020 being a historic year for account openings and new investors flooding to online brokerages, the strategy going into 2021 and RSP season, in particular, will be to bring some splashier promotions online, since the deals activity for most brokers was relatively quiet in the spring and summer.
This month, probably more than any other November, is going to be full of (hopefully pleasant) surprises. Stay tuned!
Online Learning in the Spotlight for DIY Investors
Anyone new to the markets in the past several months is getting an interesting lesson in the strange relationship between economic fundamentals and the stock market. Despite a wide range of negative news, there are certain stocks that have continued to rally, fueled in large part by the beliefs of investors who are putting their capital and hopes on some generational changes.
With so many new investors now participating in the market, it seems that investor education was especially relevant this year. For its part, TD Direct Investing has leaned heavily into their investor education programming, with a series of events including two webinars with notable personal finance voices.
Earlier this month, we reviewed a webinar held by TD Direct Investing with YouTube investing personality Brandon Beavis. This session, entitled “Become a More Resilient Investor,” covered the basic principles of investing and provided Beavis’s perspectives on taking a balanced approach to getting started in the markets.
Another interesting webinar held by TD Direct Investing for Investor Education Month featured personal finance author Sandy Yong. Her presentation, entitled “How to Start Investing on a Budget,” was aimed at beginner investors (very beginner investors) and mapped out several steps that individuals who think they do not have money available to invest could follow to help them on their journey. As with the Beavis presentation, the perspective on investing provided by Yong was to take a balanced and diversified approach.
While the presentation itself was informative to anyone looking for a very basic primer on how to go about getting started in planning for an investing journey, some of the Q&A topics dug into specifics like dollar-cost averaging and the differences between TFSAs and RRSPs.
These sessions seemed to set the stage for an important full release of the new TD GoalAssist feature that officially debuted last week. After being in development since 2019, the new app-based offering from TD Direct Investing tackles a number of items that investors (especially TD Direct Investing clients and DIY investors) have been clamouring for, such as commission-free ETF trading (on the app only) of TD ETFs. Other big benefits: There are no account minimums required, and TFSA, RRSP, and cash accounts are supported.
We’ll have more to say about this new service in the weeks to come. However, the investor education efforts at TD Direct Investing recently and the launch of the new GoalAssist seem strategically aligned at this point.
Now, to shift gears from focusing on the lead-up to a product launch to shining a spotlight on one very shiny new industry, this month also featured another big bank-owned online brokerage, BMO InvestorLine, sponsoring a fascinating webinar on an increasingly popular industry segment: eSports.
Presented by Evolve ETFs – a Canadian ETF provider that gives investment exposure to the eSports sector – this webinar helped to explain the opportunities available in the eSports and eGaming sectors and outlined how investors can look at participating in them. Because they offer an ETF aimed at the eSports sector (ticker HERO on the TSX), there is clearly an interest in bringing general awareness and understanding to the sector. However, there is also clearly an audience of investors – especially younger investors – who have witnessed firsthand the popularity of this growing industry.
Providing access to interesting investment themes via ETF providers is one way that online brokerages, like BMO InvestorLine, can easily relay information about market opportunities without having to create content themselves. With DIY investors looking to understand many of the new and emerging sectors, this kind of niche ETF provider presentation is something we anticipate seeing more of at other online brokers.
A Quick Tour Through Other Stories
Despite the already-long format of the Weekly Roundups, there are often several stories that don’t make it to being covered but that could be of interest to DIY investors and are definitely relevant to the world of DIY investing. Starting this month, we’ll be sharing these stories at the end of each month as a way to bring these topics to light, even if we don’t do our usual deep-dive format with them.
Although it might have been a self-fulfilling prophecy heading into election day in the US, the reality that has played out over the past week has shown that raising margin rates ahead of the storm of uncertainty proved to be a smart move. Read more here.
Interactive Brokers Earnings Report
All things considered, it was a pretty good year for Interactive Brokers. What counts as good? A 47% year-over-year increase in the number of accounts and growth in “all client segments and all geographic regions” ought to do it. Also discussed was the launch of another new feature: the ESG-driven Impact Dashboard. Dive into the full transcript and more details here.
Class-Action Lawsuit
DIY investors who purchased or hold mutual funds through their discount brokerage are the focus of several class-action lawsuits, specifically on the issue of trailing commissions.
Read more about which online brokerages (several of the big bank-owned online brokerages are named in these actions) are impacted, and find out how to stay on top of developments in these cases, here.
Discount Brokerage Tweets of the Week
From the Forums
A Day Late & A Dollar Short
In this post, a Redditor gets frustrated by delays for fund transfers and asks which online brokerages “have same-day deposits?”
The Smart Money
A twentysomething in a new job asks in this post if it’s smarter to put their signing bonus money into a TFSA or RRSP. Fellow Redditors weigh in.
Into the Close
That’s a wrap on the pre-election, once-in-a-blue-moon, I-can’t-even edition of the Roundup. There’s really only one big story that matters this week, so here’s hoping everyone finds a little reprieve by the end of it.
*Update: November 27* Daylight isn’t the only thing being saved this as we enter the month of November. It seems like DIY investors are also in for some savings too.
Like adjusting the clocks back, it’s going to take some getting used to online investing in November. With the US presidential election likely to shape the rest of the month, online brokers and investors alike are uncertain as to what the fallout will be.
Heading into a new month there is a mixed picture for promotional offers. On a down note, the 60-day commission-free trade offer from HSBC InvestDirect concluded at the end of October. On the plus side, however, Questrade rolled back the clock on inactivity fees, taking them back to zero. While technically not a promotion, it is a piece of good news for DIY investors looking to park their money without penalty.
Another bit of good news for DIY investors is November is historically a big month for online brokerage offers coming to market. We expect that several big names will be launching new offers in anticipation of RRSP season and the heightened activity around TFSAs and markets heading into the end of the year.
So, don’t forget to check back throughout the month for any updates. The US election is expected to heavily impact investor behaviour and in turn, the discount brokerage space. As always, we’ll continue to monitor and provide new developments on discount brokerage promotions as they arise but if you hear about any offers that would be interesting to fellow DIY investors, feel free to drop a comment below.
Expired Deals
The 60-day free online equity and ETF trading promotion from HSBC InvestDirect concluded on October 30th.
Extended Deals
No extended deals to report at this time.
New Deals
*Update: Nov. 6 – Brokerage promotions for November are heating up, with four online discount brokerages unveiling new cash back deals at the start of this month. BMO InvestorLine, BMO SmartFolio, and TD Direct Investing are all offering cash back bonuses for clients who open a new qualifying account, while CIBC Investor’s Edge is offering cash back for clients who fund a new or existing account. See the table below for full details, including eligibility requirements, applicable promo codes, and deadlines.*
*Update: Nov. 13 – Despite it being Friday the 13th, luck is on the side of DIY investors, as two online brokerages have recently unveiled new promotions. Scotia iTRADE launched a deal that allows new clients to choose from bonus cash back or free trades, and RBC Direct Investing is offering 25 commission-free trades to clients who open new accounts. For full promotion details and eligibility requirements, see the table below. *
*Update: Nov. 27 – Our radar has picked up on a new deal, just in time for Black Friday. Wealthsimple Trade is offering a free stock promotion for clients who open and fund a new Non-Registered trading account by December 18th. See the table below for full terms and conditions. *
Scotia iTRADE is offering two choices for new investors who open accounts before March 1, 2021 and fund it with at least A) $5,000; B) $10,000; C) $25,000; D) $50,000; E) $100,000; F) $250,000; G) $500,000 or H) $1M+: Option 1: you can use promo code C21 to receive cash reward of A) $25; B) $50; C) $100; D) $200; E) $400; F) $750; G) $1,000 or H) $1,500; plus a discounted commission of $6.99 per trade until June 30, 2021. Option 2: Use promo code FT21 and you may be eligible for A) 10; B) 20; C) 50; D) 100; E) 200; F) 300; G) 400 or H) 500 free trades to use for 90 days after the account is funded.
Fund your new or existing CIBC Investor’s Edge account before Mar 2, 2021 with at least A) $10,000; B) 25,000; C) $50,000; D) $100,000; E) $500,000 or F) $1M+ and you may be eligible to receive a cash back reward of up to A) $50; B) $100; C) $200; D) $500; E) $1,000 or F) $2,000. To qualify, the fund must be from outside CIBC. No promo code required.
Open a new TD Direct Investing account by Mar 1, 2021 with promo code INVESTNOW and fund it with new assets worth at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000, and you may be eligible to receive a cash back reward of up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. The fund must be deposited to the account by April 30, 2021 and at least one trade is placed by June 30, 2021. In addition, you may also be eligible for another $100 cash reward by setting up a Monthly Contribution Plan (min. $100 per month) with the first contribution occur before April 30, 2021. The maximum reward one could receive is $1,100.
Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $250,000; D) $500,000 or E) $1M+, and you may be eligible to receive a cash back reward of up to A) $100; B) $250; C) $450; D) $950 or E) $2,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions.
New accounts opened between Jun 22 and Nov 30, 2020 will be awarded 100 free online trades in one year. This promotion applies to new and existing NBDB clients who uses the code “FREE2020” to open new accounts.There’s no minimum funding requirement, however some other restrictions may apply.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully.
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully.
Open a new RBC Direct Investing account by December 31, 2020 and fund it with at least $5,000 by March 5, 2021 and you will receive commission rebates for 25 trades that occur within 1 year of account opening. Be sure to use promo code NTBW2 during account opening. You will be charged regular commissions on the trading date, and the rebate will be deposited back into your account after 3-5 business days. If you are an existing customer to RBC DI, the type of the new account being opened must be different from the account types that you current have.
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details.
$25,000
commission-free trades for 1 month + 1 month of advanced data.
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.
A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+
$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back
Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)
If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link.
A) $10,000 B) $50,000+
A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50)
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details.
$1,000
$25 cash back (for both referrer and referee)
Cash deposited at the end of the month in which referee’s account funded
If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details.
$5,000
You(referrer): $50; Your Friend(referee): $50
Payout occurs 45 days after minimum 90 day holding period (subject to conditions).
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered.
$152.55
$15,000
Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information.
none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details.
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details.
$150
$25,000
Transfer Fee Promo Contact client service for more information (1-800-465-5463).
none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.
$135
$25,000
Confirmed with reps. Contact client service for more information (1-800-567-3343).
none
Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details.
$200
Contact client service for more information
Contact client service for more information (1-888-776-6886)
none
Expired Offers
Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $10,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info.
The minimum commission per equity trade ($1.99) is waived for new accounts from account opening till December 31, 2020. As a result, your commission is just 1¢/share (max $7.99). However, this offer does not apply to Odd Lot orders (i.e. orders with quantity less than 100 shares if price >= $1 or price < $0.10; or less than 500 shares if price in the $0.10 – $0.99 range). Please be reminded that at Virtual Brokers ETFs are always free to buy.
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 200 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions.
Open a new Non-Registered trading account and fund it with at least $100 by December 18, 2020 and you may receive a random cash bonus ranging from $1 to $4,500. The cash bonus amount will be equivalent to the value of one of the fifteen stocks that have been selected by Wealthsimple Trade for this program. Please refer to the Terms and Conditions for more details.
Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details.
Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details.
Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link.
Open a new SmartFolio account and fund it with at least $1,000 and you could receive 0.5% cash back up to $1,000. Use promo code SFNOV1000 when opening a new account. See terms and conditions for full details. This offer is limited to new SmartFolio clients only, and can be combined with the refer-a-friend promotion.
BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details.
Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth.
Professionals and students in the below fields can benefit from a reduced pricing structure: * Engineering students * Legal, accounting and business students * Healthcare students * Health sciences students * Nursing students Benefits: * $5.95 commission on equities * $0 commission on ETFs * $0 annual administration fee
Accounts holders who are 30 years old or younger are offered 10 free trades each year. After the free transactions, a commission rate of $4.95 per transaction will be applied (which is just half of the regular price).
