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Interactive Brokers

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Discount Brokerage Weekly Roundup – February 20, 2015

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

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

 Credential Direct Deals Themselves In

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

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

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

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

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

#LookAtMeNow

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

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

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

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

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

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

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

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

TD Direct Investing now Offers Online Trading with the CSE

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

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

Desjardins Online Brokerage’s New Website Launched

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

 

Event Horizon

Here are this week’s learning opportunities, enjoy!

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

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

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

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

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

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

From the Forums

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

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

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Discount Brokerage Weekly Roundup – February 13, 2015

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

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

CIBC Investor’s Edge Sends Commission Fees on Spring Break

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

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

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

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

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

Desjardins Online Brokerage Set to Launch New Website

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

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

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

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

Questrade Launches API

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

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

Victory Lap

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

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

Event Horizon Feb. 13, 2015

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

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

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

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

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

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

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

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

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

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

From the Forums

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

New Account RSP bonuses 

Are Level 2 Quotes Worth It?


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

 

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Discount Brokerage Weekly Roundup – February 6, 2015

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

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

On a Roll

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

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

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

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

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

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

New Month New Deals

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

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

Count of Canadian discount brokerage deals for February 2015

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

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

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

Event Horizon

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

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

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

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

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

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

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

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

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

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

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

From the Forums

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

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

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Discount Brokerage Deals and Promotions – February 2015

*Update Feb. 16/2015* It’s fitting that on Superbowl weekend that we launch into one of the most competitive discount brokerage promotions months on record. After all, for football teams and fans alike this is the biggest weekend of the season.

For brokerages heading into RSP season the sentiment is somewhat similar.  How can we be so sure? With 21 24 open offers (22 26 if you include some of the contests and selectively advertised deals), more than half are timed to end on or just ahead of the RSP contribution deadline of March 2nd.

The deals frenzy has managed to pull most Canadian online brokerages off the sidelines and into the fray.  Brokerages such as HSBC InvestDirect, RBC Direct Investing and Virtual Brokers who have historically been far less active in the deals space each have open offers.  Other big names such as TD Direct Investing and Qtrade also jumped in through January.  There have also been reports of ‘“selectively advertised’ offers from brokerages such as BMO InvestorLine which, because they are generally intended for a select few, are not included in the table below.

Brokerages not offering some kind of promotion are now in the minority – however it’s still early into February and there may be more surprises to come.

Expired Deals

There were three offers that officially expired in January.

  • Questrade’s 25 commission-free trades for a year promotion
  • BMO InvestorLine $250 cash back promotion + 50 commission-free trade
  • Scotia iTrade’s 100 free trades + FlightDesk promotion

Extensions

One minor extension was spotted on the Scotia iTrade refer-a-friend promotion which saw the expiry date shift from mid-March to the end of the month.

Revisions

Another interesting change was also spotted on the Virtual Brokers offer.  It appears that Virtual Brokers has had a change of heart with regards to how long commission-free trades will be eligible.  Specifically they’ve elected to roll back the date from the end of September back to the end of April.  While having an offer shorten or expire early is not unprecedented, it is rare, and it drives home the importance of understanding that offers can change without notice.  While the initial offer to use trades until the end of September made it very competitive, the choice to roll back the dates makes the offer more comparable to others out there.

New Deals

At the time of publication (Feb. 1) there were no new deals that were launched at the outset of February.

As always if there’s anything that we’ve missed please pass this information along and we’ll try to include it in our listings.  If we can’t place it in the table (e.g. if it’s selectively advertised) you can also submit it to the deals thread in our community section.

*Update Feb. 4/15* The transfer fee coverage for CIBC Investor’s Edge has been updated.  Although not posted on their website, we have confirmed with client reps that the there is a transfer fee coverage of $135 + tax for deposits of at least $25,000 from another brokerage/institution. This is (and has been) a standing offer and is now included in the transfer fee table going forward.

*Update Feb. 16/15* A trio of new offers are launching at the mid-point in February.

The first offer is from Credential Direct – a brokerage that hasn’t historically offered many promotions/deals.  Nonetheless, the latest promotion from Credential Direct is a choice between either cash back or commission-free trades.  The offer is made up of three tiers based on deposit size.  For the first deposit tier ($25,000-$99,999) qualified applicants can receive either 100 commission free trades or $100 cash back.  The next deposit tier ($100,000 – $499,999) offers 200 commission-free trades or $200 cash back.  Finally, for deposits of $500,000 or more Credential Direct is offering either unlimited trades or $500 cash back.  Included alongside this promotion is a transfer fee coverage deal whereby Credential Direct will cover up to $150 in transfer out fees from another broker for individuals depositing/transferring at least $25,000. There are a couple of important points to be aware of including charges for ECN, SEC and/or marketplace fees.  See table below for further details.

The second offer to hit our radar mid-month was from Questrade.  Their latest offer is a combination of commission-free trades along with a subscription offer to Motley Fool Canada. For deposits of at least $10,000 qualified applicants will receive 100 commission-free trades along with a three month subscription to Motley Fool Stock Advisor Canada newsletter service.  For those interested in learning more about what that service entails, here is a link to the Motley Fool Stock Advisor Canada FAQ page.  See the table below for additional details.

The third offer, also from Questrade, is a Chinese New Year themed promotion that has a cash-back component as well as a draw for a gold coin.  The minimum deposit for this promotion is $5,000 and applies to individuals opening margin accounts or Forex/CFD accounts only.  Registered accounts were not mentioned as being eligible for this promotion.  See table below for additional details.

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
Open a new account with HSBC InvestDirect and you could be eligible to receive up to 50 commission-free equity/ETF trades for 88 calendar days. Be sure to read the terms and conditions for full details. n/a 50 commission-free trades 88 days (payout for rebate is within 90 days of end of free trade period) HSBC InvestDirect 2015 Winter Offer March 2, 2015
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion March 31, 2015
Open a new qualifying account with RBC Direct Investing and you may be eligible to receive up to 20 commission-free trades. A promotion code is required for this offer; click on the the link for the promotional page to generate a code. Be sure to read the terms and conditions for full details on this offer. n/a 20 commission-free trades 1 year Terms & Conditions & RBC Direct Investing Trade Free for 1 Year Promotion Page March 2, 2015
BMO InvestorLine Download the BMO InvestorLine iPad app and you could qualify for up to 5 commission-free trades. This offer is open to new and existing clients and can be combined with other offers. Clients must have a qualifying account in order to be eligible. Read full terms and conditions for details. n/a 5 commission-free trades ($50 max value) 30 days Tablet Trades Promotion February 26, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open and fund a qualifying account (TFSA, Cash/Margin or RRSP) at Questrade with at least A) $1,000 or B) $10,000 and you may be eligible to receive A) 10 or B) 100 commission-free trades. Use promo code 100FREEML15W when registering. Be sure to read the terms and conditions for this offer. A) $1,000 B) $10,000 A) 10 commission-free trades B) 100 commission-free trades 60 days Multi-leg Offer February 27, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least A) $1,000 B) $25,000 or C) $50,000 to receive either A) 30 days B) 60 days or C) 90 days of unlimited commission-free stock & options trades. Use promo code UNLIMITEDW15 when signing up. Be sure to read the terms and conditions for more information. A) $1,000 B) $25,000 C) $50,000 Unlimited commission-free trades during associated period. A) 30 days B) 60 days C) 90 days Questrade Unlimited Trading Offer March 2, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least A) $1,000 B) $25,000 or C) $50,000 to receive either A) 30 days B) 60 days or C) 90 days of unlimited commission-free stock & options trades. Use promo code UNLIMITEDRSP when signing up. Be sure to read the terms and conditions for more information. A) $1,000 B) $25,000 C) $50,000 Unlimited commission-free trades during associated period. A) 30 days B) 60 days C) 90 days Questrade RRSP Promotion March 2, 2015
Open a new account (TFSA, Margin, RRSP or FX/CFD) and place at least one trade within 60 days of opening and you may be eligible to receive a $50 prepaid Visa card from Questrade. Use promo code VISA50. Be sure to read terms and conditions for full details on this offer $5,000 $50 Visa gift card Cards will be mailed within 40 business days of reaching account funding requirement. $50 Prepaid Visa Card Offer February 27, 2015
Open a new margin, or FX/CFD account with a deposit of at least $5,000 and place at least one commission-generating trade and you may be eligible to receive a cash back offer of $88.88 and an entry into a draw for a gold coin. Use promo code CHINESESNY2015. Be sure to read terms and conditions for full details on this offer $5,000 $88.88 cash back Cash rebate takes place up to 30 days after meeting eligibility Chinese New Year Promotion March 6, 2015
Open and fund a new account with at least A) $5,000 or B)$10,000 in net new equity and you may be eligible to receive A) 50 or B) 100 commission-free trades. Use promo code “RRSP15” when signing up for an account to qualify. Be sure to read the terms and conditions of the offer for full details. A)$5,000 – $9,999 B)$10,000+ A) 50 commission-free trades B) 100 commission-free trades (max commission per trade $6.49) Trades must be used by April 30, 2015 (commissions to be rebated by October 2015) RRSP Free Trade Promotion February 27, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least $10,000 dollars to be eligible to receive 100 commission-free trades and a three month subscription to Motley Fool Stock Advisor Canada newsletter. Use promo code 100FREEMFSUBwhen signing up. Be sure to read the terms and conditions for more information. $10,000 100 commission-free trades 60 days Motley Fool Subscription Promotion April 30, 2015
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A)$10,000 B)$50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade March 31, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999, B)$50,000 – $99,999, C)$100,000 – $249,000, D) $250,000 – $499,999, E) $500,000 – $999,999, or F) $1,000,000+ and you may be eligible to receive a corresponding cash-back or commission rebate. For commission-free trades use code: WTT15 or for cash rebates use code: DL5RP. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. This offer also includes a free ‘swing trading’ course with Larry Berman and 90 days free of FlightDesk. A)$15,000 – $49,999 B)$50,000 – $99,999 C)$100,000 – $249,000 D)$250,000 – $499,999 E)$500,000 – $999,999 F)$1,000,000+ A) 50 commission-free trades OR $50 cash B) 100 commission-free trades OR $100 cash C) 250 commission-free trades OR $250 D) 350 commission-free trades OR $350 E) 500 commission-free trades OR $500 F) 1000 commission-free trades OR $1000 180 days for commission-free trades Cash back to be deposited by November 30, 2015. 1000 Free Trade Offer March 31, 2015
Open a new account and fund it with at least (A) $20,000 or (B)$100,000 and NBDB may provide up to (A) $500 or (B) $1,000 in commission rebates for qualifying accounts. Use promo code “CashBack2015” when signing up. Be sure to read the terms and conditions for eligibility and refund dates. A)$20,000 – $99,999 B)$100,000+ A)$500 commission rebate B)$1,000 commission rebate 90 days (rebate of commissions depends on sign up date and is outlined on terms/conditions) Cash Back Offer March 31, 2015
Open a new account with Credential Direct and fund it with at least A) $25,000 B)$100,000 or C)$500,00+ to receive either A) 100 commission-free trades or $100 cash back; B) 200 commission-free trades or $200 cash back or C) unlimited commission- free trades or $500 cash back. Be sure to read terms and conditions for full details. A)$25,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trade or $100 cash back B) 200 commission-free trades or $200 cash back C) Unlimited commission-free trade or $500 cash back Trades must be used by September 30, 2015 and will be reimbursed on October 15 2015. Cash back deposited October 15, 2015. Credential Direct Spring Promotion April 15, 2015
Open a new account with TD Direct Investing with at least A) $25,000 B) $50,000 or C) $100,000 and you may be eligible to receive rebates on up to A) 50 B) 100 or C) 200 equity and/or options trades. Be sure to read full terms and conditions A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000+ A) 50 commission-free trades B) 100 commission-free trades C) 200 commission-free trades 60 days (commission rebates to be issued on Aug. 15/2015) TD Direct Investing Free Trade Promotion March 27, 2015
Open a new account or fund an existing account at CIBC Investor’s Edge with at least A)$25,000-$49,999 B)$50,000 – $99,999 or C)$100,000+ and you may be eligible to receive A)$100 cash back and 25 free trades; B)$200 cash back and 50 trades or C)$300 cash back and 100 free trades. Be sure to read the terms and conditions for full details on this offer. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,00+ A) $100 cash back + 25 commission-free trades B) $200 cash back + 50 commission-free trades C) $300 cash back + 100 commission-free trades Cash back payout occurs within 30 days of account funding; Time limit to use commission free trades is 60 days Investors Edge Cash Back and Free Equity Trades Offer February 28, 2015
Disnat Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $50,000 $300 commission credit 6 months Disnat $300 Commission Credit Promo March 31, 2015
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,000 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). Contact InvestorLine for full terms and conditions. October 30, 2015
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $300 cash back. Use the promo code RSP2015 when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $300 cash back Payout occurs after 6 months RSP 2015 Promotion March 31, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least $100,000 to be eligible to receive an iPad mini. Use promo code IPADMINI15Q2 when signing up. Read the terms and conditions for more information about eligibility. $100,000 iPad Mini 2 (16gb wi-fi only) [retail value ~$370 including taxes] iPad Mini will be sent within 60 days of account being funded and 1 commission-generating trade being placed. iPad Mini Offer March 13, 2015

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Scotia iTrade Transfer $15,000 or more to Scotia iTrade from another Canadian brokerage, and iTrade may pay up to $150 in transfer fees. $150 $15,000 1000 Free Trade Offer March 31, 2015
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Spring Promotion April 15, 2015
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more in equity to Virtual Brokers and they’ll cover the transfer-out fees up to $150. $150 $25,000 Transfer Fee Rebate Terms & Conditions March 31, 2015
Transfer $25,000 or more into a new TD Direct Investing account and they will cover up to $150 of transfer fees. $150 $25,000 TD Direct Investing Free Trade Promotion March 27, 2015
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 confirmed with reps. Contact client service for more info (1-800-567-3343) none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $150 $50,000 Disnat $300 Commission Credit Promo March 31, 2015
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Review: Dalbar Direct Brokerage Service Evaluation 2014

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

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

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

Who You Gonna Call?

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

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

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

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

Widening the Circle

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

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

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

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

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Discount Brokerage Weekly Roundup – January 16, 2015

For traders who had grown ‘complacent’ over the lack of market volatility in 2014, the adage of ‘be careful what you wish for’ seems a bit prescient. Whether it was the unexpected move on the Swiss Franc, squashed rumours of a Blackberry buyout, Bombardier grounding their Learjet program or the continued fallout from tanking oil prices, volatility is back with a vengeance.

Canadian discount brokerages, on the other hand, are dealing with a different kind of volatility. In their case, it’s trying to figure out how to win at the RSP game.  In this week’s roundup we take a look at the ever growing list of deals/promotions streaming in from Canadian brokerages, earnings highlights from US online brokerages, a preview of the upcoming investor education events and finally the topics that got DIY investors chatting.

Cash Register

Like Shakira’s hips, data doesn’t lie (see chart). We are heading squarely into the storm of TFSA and RRSP season and brokerages big and small are pulling out all the stops to try and woo self-directed investors into picking an online trading account.  As a result, January’s deals and promotions have been piling up faster than an Ottawa snow bank.

This past week another three offers were added into the discount brokerage deals & promotions mix, taking the current total to 21 offers. Questrade added yet another to their promotional pool and Virtual Brokers has finally stepped into the promotions space as has Qtrade. All three of these offers are directly targeted to getting the attention of investors looking for a registered account.  While the seasonality of the deals certainly factors in, we also think that from this point forward, the competitive landscape for registered accounts has changed. Among the many reasons why things are different, the biggest threat to the non bank-owned brokerages is that Interactive Brokers Canada has started to offer both RSP and TFSA registered accounts. Stay atop all of the deals action by checking our deals and promotions section through January and February. We think there still may be some additional offers yet to launch that could cause quite the stir.

One App to Manage Them All

With mobile technology becoming a mainstay of everyday life (apparently ‘millennials’ check their mobile phones an average of 43 times per day), online brokerages are increasingly turning their attention to ensuring their platforms work on the go.  BMO InvestorLine is one of the latest bank-owned online brokerages to be pushing their integrated banking and mobile trading app, releasing this announcement this past week.  Not too long ago, however, brokerages such as Qtrade and Scotia iTrade  also made improvements to their tablet trading experience.  Even though BMO InvestorLine had officially rolled out the app in 2014, in the heated battle to highlight something other than commission pricing, look for more brokerages to showcase the features they think set them apart from their peers.

All About the Benjamins

One of the largest online brokerages in the US, Charles Schwab, reported their quarterly earnings today. They are an interesting model to look at as they moved their business away from being primarily a discount brokerage and more towards providing ‘full service’ and advice.  This model is not unlike the approach taken by Questrade, which, if Schwab is any indicator, may help add value to the company during periods of low interest rates and somewhat muted trading activity.  Schwab took in $1.5 billion in earnings for the quarter ending December 31 which is up 9% over the previous quarter. The key metric of Daily Average Revenue Trades (DARTs) was up 17% compared to the previous quarter and the average revenue per trade came in at $12.04. Another big name in the discount brokerage space, Interactive Brokers, releases their earnings next week so it should be interesting to see if the volatility late in the year translated into increased trading commission activity.

Event Horizon

A quartet of educational events are on tap for you next week, enjoy. Jan. 20 (Tues) Scotia iTRADE – Introduction to Puts with Pro Market Advisors Jan. 20 (Tues) NBDB – Managing Risk While Investing in Stock Jan. 21 (Wed) Scotia iTRADE – Fixed Income Strategies Using ETFs with iShares Jan. 22 (Thur) Scotia iTRADE – Trading The Gap with AJ Monte

From the Forums

 

Fee the burn

At the start of a new year, the focus on dropping a few pounds is on the mind of many.  While getting active can have health benefits, in the online trading account world, inactivity gets dinged with a fee.  Perhaps online brokerages are on to something. Check out this post from RedFlagDeals’ investing forum for one individual’s query on when exactly RBC Direct Investing’s kicks in

Getting Registered

With RRSPs and TFSAs still a hot button issue for this and next month, we’re still tracking the storm that is the launch of Interactive Brokers’ registered accounts.  Here is yet another post from a RedFlagDeals.com investing thread on the launch of IB registered accounts and what that might mean cost wise for folks with multiple accounts.

That’s a wrap for this week’s roundup.  For those lucky enough to be taking in the Vancouver ‘winter’ hope to see you at the Vancouver Resource Investment Conference this weekend! And for those who aren’t, here’s a multimillion dollar version of the ‘fireplace log’ to give you warm thoughts (and to take your mind off some portfolio explosions that may have happened) courtesy of Elon Musk and co. 

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Discount Brokerage Weekly Roundup – January 9, 2015

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

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

Discount Brokerages in 2015

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

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

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

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

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

Credential Direct – Upcoming Features: Webinars & Seminars

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

Desjardins Online Brokerage – Upcoming Features: Client Experience

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

Jitneytrade – Upcoming Features: Trading Platform

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

National Bank Direct Brokerage – Upcoming Features: Investor Education

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

Questrade – Upcoming Features: Platforms

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

RBC Direct Investing – Upcoming Features: Platforms

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

Scotia iTrade – Upcoming Features: Performance Reporting

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

TD Direct Investing – Upcoming Features: Performance Reporting

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

Flurry of Deals

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

Event Horizon

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

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

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

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

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

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

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

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

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

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

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

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

From the Forums

To Bot or not to Bot

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

Tossing Around the Crystal Ball

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

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

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Discount Brokerage Weekly Roundup – January 2, 2015

Welcome to the first discount brokerage roundup of 2015. While many folks are still in holiday mode, online brokerages are busy getting into shape for the all-important first calendar quarter. The countdown that brokerages are looking at is the all-important RRSP contribution deadline (March 2 this year).

In this week’s roundup we take a look at the new deals & promotions being offered by Canadian brokerages, one brokerage’s bold move to challenge a highly competitive industry as well as insights about the retail investor from one brokerage’s trading stats. Of course, we cap off the roundup with a look at the upcoming education events and a quick tour of the forums.

In with the old

With the start of a new month it’s time to take a look at the deals and promotions being offered by Canada’s discount brokerages. It looks like the theme coming into 2015 was to ‘stay the course’ for many brokerage offers. Of the 8 offers set to expire at the end of December, 5 were extended. In total there are 14 open offers however January could hold a surprise or three. Of the three offers set to expire this month, two are from BMO InvestorLine and one from Scotia iTrade. It should be interesting to see what the bank-owned giants do going into one of their busiest seasons.

The only brokerage to kick off January with a new offer is Questrade. They’ve introduced yet another offer into their promotional mix with a commission-rebate offer for 25 trades that can be used throughout 2015. Click the following link for a full breakdown of all of January’s discount brokerage deals.

Questrade stepping into the ETF game

In another interesting move by Questrade into the wealth management space, Questrade recently filed a preliminary prospectus for the launch of up to 6 new ETFs. According to the prospectus, the funds are based on several US based indices and hedged to Canadian dollars. Here is a list of the proposed funds and symbols (on the TSX):

  1. Questrade Russell US Midcap Growth Index ETF Hedged to CAD (“QMG”)
  2. Questrade Russell US Midcap Value Index ETF Hedged to CAD (“QMV”)
  3. Questrade Russell 1000 Equal Weight US Technology Index ETF Hedged to CAD (“QRT”)
  4. Questrade Russell 1000 Equal Weight US Industrials Index ETF Hedged to CAD (“QRI”)
  5. Questrade Russell 1000 Equal Weight US Health Care Index ETF Hedged to CAD (“QRH”)
  6. Questrade Russell 1000 Equal Weight US Consumer Discretionary Index ETF Hedged to CAD (“QRD”)

The recent formal launch of PortfolioIQ and Questrade’s move into the wealth management space, it appears that Questrade is diversifying away from being an exclusive discount brokerage and emulating the model seen in the US (such as with Schwab and Ameritrade) where there has been a successful push into wealth management. Bank-owned discount brokerages that also have ETFs attached to the wealth management arms (such as BMO) will most certainly take notice of this move.

Questrade’s diversification away from being strictly a discount brokerage has pitted them against a number of big players in the wealth management space, and this latest maneuver will definitely force them to compete in yet another exceptionally competitive space.

Interactive Brokers trading metrics

A quick peek into the trading metrics for Interactive Brokers’ December figures shows that they’re continuing to grow their customer base. New accounts are up 1% month over month but impressively 17% year over year, with the number of accounts standing at 281,000.   Interestingly, December was the weakest month out of the year for net new accounts. Trading activity in December was strong with 590,000 Daily Average Revenue Trades (DARTs), the second most active month after October in 2014.

For Canadian brokerages, an interesting data point that the Interactive Brokers shows is that retail interest in the markets continues to be strong (at least in the US). Also, Interactive Brokers is clearly a strong competitor for the highly prized active trader segment. It may have something to do with the fact that the average commission per equity trade was a mere $2.58 with an average order size of 1,968 shares.

Event Horizon

Investor education events are ramping up again. Here is a list of the events coming up in the next week:

January 6 – Scotia iTRADE – Getting Started With Technical Analysis with Pro Market Advisors (online)

January 7 – TD Direct Investing – Understanding Margin & Short Selling (Regina)

January 7 – Scotia iTRADE – Smart Beta ETFs with First Asset Management (online)

January 9 – Scotia iTRADE – Bond Basics with Scotia McLeod (online)

From the Forums

Registering a Vote

As the RRSP contribution deadline will become the focus over the next few weeks, the move by Interactive Brokers to offer Canadian registered accounts is likely to become increasingly discussed. The following post from Canadian Money Forum sums up the sentiment nicely.

Flipping the Switch

Another consideration going into the RRSP season is which brokerage to consider. This post from RedFlagDeals offers a great perspective on some of the merits of brokerages currently on the minds of DIY investors.

That’s a wrap for this week’s roundup. Have a great weekend trying to stay dry or out of the snow/ice or whatever Mother Nature is throwing our way. In the meantime, here’s to a profitable New Year ahead!

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Discount Brokerage Weekly Roundup – December 26, 2014

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

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

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

Interview with Desjardins Online Brokerage

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

Commercial Viability

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

Headline Number

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

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

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

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

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

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

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

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

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

A year of milestones

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

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

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

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Discount Brokerage Weekly Roundup – December 19, 2014

*Edited Dec. 22/14* It looks like December isn’t going to go quietly. With huge volatility coming into the markets, traders are certainly cheering. Canada’s discount brokerages are also not wont to stand still going into the year end. Whether they’re gearing up for a busy 2015 or pushing hard into the finish line of 2014, this is definitely a year for the record books all around.

In this week’s roundup, we take a look at a major compilation of Canadian online brokerage’s perspectives on the year that was and the year upcoming. Following that we take a look at one online brokerage that had a change at the top, a brokerage that decided to launch an early Christmas gift to potential clients, some news from a technical analysis provider and round out with some festive forum banter.

Online brokerage year in review & preview

2014 has been a wild ride for DIY investors. It started with a boom and is ending with a bang.

This past week we released our exclusive compilation of perspectives from 9 Canadian online brokerages. Here is the list of discount brokerages that participated (the links go to their particular submission):

Regardless of their size or focus, when compared alongside one another, there was a wealth of information about the year that has just passed.

Without question, commission price lowering was one topic that stood out almost across the board. As each discount brokerage showed, however, price wasn’t the only place they sought to evolve. New features, order types, services, platforms, investor education offerings and service experiences were among the other areas that brokerages were all actively working to improve in.

Something that was really special about this compilation was what certain brokerages were able to share about what’s coming around the corner for 2015.

For example, in our recent interview with Nancy Paquet, President of National Bank Direct Brokerage, she shared with us the focus that NBDB will be placing on investor education – however they’re not alone. In addition to NBDB, brokerages such as Desjardins Online Brokerage, Scotia iTRADE and TD Direct Investing are all highly active in terms of providing investor education and plan to be even more so in 2015.

What was interesting to learn from the year in review compilation was that Credential Direct may be looking to augment its educational resources as well as the news that Jitneytrade has been partnering with educational providers. Even for several brokerages that didn’t participate in the year-end review, we’ve learned that investor education is going to be a priority in 2015.

As a lead into the holiday season this year, we thought it would be great to offer up the top 5 themes we saw emerge from the year end compilation. With so much information provided by the brokerages, we’ve put together a fun way to learn about what the brokerages had to say. Here’s a teaser from day one of the top 5 countdown. We’ll be releasing one a day over the next 5 days exclusively on our twitter feed.

Qtrade announces leadership changes

This past Wednesday, Vancouver based online brokerage Qtrade Financial announced that CEO Scott Gibner and President and COO Joe Perrin will leave the organization as of January 16, 2015.

Bill Packham, who is the Co-Chair of the Qtrade Board of Directors, will take over as interim CEO, as the firm seeks to make a permanent appointment.

The announcement comes just weeks after Qtrade earned top billing in the annual Globe and Mail Online Broker Rankings. In a statement, Qtrade’s Board Co-Chair and Director, John Sibley, thanked Gibner and Perrin for their “vision, inspiration and dedication to Qtrade.”

Packham brings along several years of executive experience having served as the Co-Chair of Qtrade’s Board of Directors since the completion of the arrangement transaction between Qtrade and Desjardins Group in April 2013. He is also Executive Managing Director, Wealth Management and Life and Health Insurance with the Desjardins Group.

National Bank Direct Brokerage launches new deal

December continues to be a big month for news. In the deals & promotions department, National Bank Direct Brokerage boldly launched a rather sizeable commission-rebate offer going into the holiday season – perhaps as an early Christmas gift to potential new clients. The offer provides up to $500 in commission fee rebates for deposits of $20,000 or more and rebates of up to $1,000 for deposits of $100,000 or more. Click here to read more about this promotion.

A technical win for Recognia

The maker of the most popular technical analysis platforms among Canadian brokerages, Recognia, was acquired this week by Paris-based investment research firm Trading Central. Headquartered in Ottawa, Recognia actually services over 45 brokerages in 12 countries with their various software platforms. Most DIY investors would recognize Recognia’s flagship ‘Technical Insight’ tool as part of the suite of research/tools for technical analysis provided by their online broker.

Event Horizon

Things have quieted down significantly on the events front going into the Christmas holidays. Here is the lone event featured for next week:

Dec. 23 (Tues) Scotia iTRADE – ETFs 101 with Horizons ETFs (Online)

From the Forums

 Chatter on Interactive Brokers

Last week we wrote about Interactive Brokers starting to offer registered accounts. Slowly news has filtered through to Canadian investor forums so we thought we’d provide a couple of threads that discuss Interactive Brokers’ latest move:

Battle of the Banks

In this post from the reddit Personal Finance Canada thread, one user is considering going with CIBC Investor’s Edge, TD Direct Investing or RBC Direct Investing. Find out what redditors (who normally champion the smaller brokerages) had to say about dealing with the bigger bank-owned brokerages.

That’s a wrap for this week’s roundup. We’re right around the corner from Christmas so hopefully everyone makes it onto the nice list this year – although for the not so nice, getting some coal may not be the worst thing at this point. On another note – it’s also a milestone week for the ending of a great show – the Colbert report. In case you missed it, here is a much bigger and more awesome send off than anyone on TV could really pull together.

Happy Holidays and Season’s greetings to all from the crew at SparxTrading.com. We’ll see you again (soon)!

 Editor’s Note: The list of participating brokerages in the year in review has been updated to include a submission from CIBC Investor’s Edge which was received after the original publication date.