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Discount Brokerage Weekly Roundup – December 8, 2017

If there are two things dominating the headlines the past few weeks, it’s bitcoin (or cryptocurrency) and America. While Canadian DIY investors have a chance to peek around the corner to see what online brokerages have coming in 2018, we also wanted to review what US discount brokerages were up to to see what else might be coming down the pipeline soon.

So, for this edition of the roundup, we take a look state side to note moves this past week by two US online brokerages that could help shape what new trading features could be available to Canadian DIY investors. From there, we’ll provide a snapshot of the latest tweets by DIY investors about Canada’s discount brokerages and we’ll cap off the roundup with highlights from the forums.

Interactive Brokers Hitting its Stride

As part of our exclusive review of Canadian online brokerages in 2017, one of the biggest trends that stood out was that online brokers are locked in a technological arms race. One online brokerage in particular, however, stands out from its peers in the way in which it has built up its business by betting big on technology and automation to lower its operating costs (thereby passing along savings to clients).

Interactive Brokers, parent company to Interactive Brokers Canada, released its monthly performance metrics at the outset of December and according to the numbers, they are having an exceptionally good year. Let’s have a quick look at some of the key numbers on a year over year basis:

  • 795 thousand Daily Average Revenue Trades (DARTs): 9% higher year/year
  • Client equity of $121.6B: 44% higher than prior year
  • 474 thousand client accounts: 25% higher than prior year

For greater clarity, a presentation given earlier this week at the Goldman Sachs US Financial Services Conference illustrates just how dominant Interactive Brokers has become in the US online investing market space:

Why this matters for other online brokerages – and perhaps for traditional financial service providers – is that Interactive Brokers has shown a consistent ability to make its technology work and to keep costs for traders so low that it is a natural contender for DIY investors – especially active ones. As such, their foray into traditional ‘banking’ services could signal the natural evolution of integrated financial services that might encroach on more than just the online investing space here in Canada.

While it’s difficult to extrapolate a straight line into the future, the performance of Interactive Brokers over the past year seems to signal that years of creating a technology driven culture positions them well to compete in the modern-day footrace to become an outstanding online brokerage, especially from the trade execution side.

For Canadian DIY investors, Interactive Brokers Canada is one of two online brokerages that might offer a conduit for innovative services in the online brokerage space in America to migrate north. The other, TD Direct Investing, may look to import ideas developed by TD Ameritrade into the Canadian space.

In either case, however, Interactive Brokers has made a compelling business case for other online brokerages to invest in automation and operational efficiency, and to do so at an accelerated pace.

Interactive Brokers, as well as online brokerage Robinhood, in the US have both demonstrated commission pricing can continue to come down. Another very compelling slide from the Interactive Brokers presentation deck shows how much lower Interactive Brokers’ commissions are for equity and, in particular options trading, relative to their US peers even after a significant commission price cut by the group of online brokerages earlier this year.

The bottom line for Canadian discount brokerages is to figure out how to offer their services faster and less expensively because Interactive Brokers Canada is likely to continue to attract more mainstream attention.

After the addition of RSP and TFSA accounts to Interactive Brokers Canada and the regular feedback from DIY investors to include Interactive Brokers Canada in the highly popular Globe and Mail online brokerage rankings, the combination of low pricing and popularity with DIY investors (at least the most active ones), might bode well for bringing Interactive Brokers Canada into the spotlight alongside the dozen or so other online brokerages regularly included in the review.

Interactive Brokers’ latest trading metrics and recent investor presentation paint a very interesting picture of how they continue to grow market share with active DIY investors – a highly prized segment in the online brokerage market.

Whether IB can disrupt the Canadian marketplace to the same degree that they have in the US remains to be seen, however the combination of global ambition, high degree of popularity with active DIY investors and a major emphasis on technology suggests Interactive Brokers Canada may find itself in the spotlight sooner than their peers would hope.

TD Ameritrade Betting on Bitcoin

One of the most intriguing things about the capital markets is that when there are buyers, there are inevitably people motivated to figure how to sell. Case in point: bitcoin.

The beyond-meteoric rise in the digital currency this year has continued to gain international attention, and likely drawn the interest of traders everywhere to figure out whether or not this would be a worthwhile risk to take on to trade.

And, while many folks (including the founder and CEO of Interactive Brokers) have warned against enabling futures trading of bitcoin, the green light has been given and one online brokerage in the US, TD Ameritrade, appears to be the first to move into the space to enable clients to trade these instruments.

It will be interesting to follow what happens with Bitcoin and in particular the institutions that enable trading of futures of Bitcoin. The fact that online brokerages in the US are now gearing up to participate in the trading of Bitcoin derivatives is, perhaps, a signal that a new product line will be coming soon to online brokerages that have traditionally dealt in equities and options.

We’re definitely keen to monitor this development starting on Sunday and naturally to see how Canadian online brokerages try to keep pace with investor interest (or fever) to participate in the cryptocurrency trading that is gripping the world.

Discount Brokerage Tweets of the Week

There was no shortage of heat coming from Twitter this past week as several Canadian online brokerages faced more than a few unhappy campers when outages and long phone line wait times drove DIY investors online to complain.  Mentioned by Canadian DIY investors were BMO InvestorLine, CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

It’s not easy getting green

Comparing one of Canada’s largest online brokerages (TD Direct Investing) with one of social media’s most popular online brokerages (Questrade) turned up some interesting posts this past week in the DIY investor forums. In this post, from reddit’s Personal Finance Canada thread, one user was looking to get the most mileage on saving fees and asked for the pros and cons of choosing a passive investing strategy at each of the two ‘green’ online brokerages.

Party in the TFSA

While that Miley Cyrus reference is upbeat and generally capture how investors perceive TFSAs, perhaps another song – Wrecking Ball might also describe the downside of TFSA. In this post from reddit’s Personal Finance Canada section, one user gets enlightened on the pluses and minuses of a TFSA when asking about a good online brokerage for TFSAs.

Into the Close

That’s a wrap on this edition of the roundup. This weekend will be a tense one as all eyes will be on what happens next with cryptocurrency. Of course, for a change of pace from fantasy money, there’s also fantasy football playoffs that have started. Best of luck on whichever screens you’re on!

 

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Discount Brokerage Weekly Roundup – December 1, 2017

Even though 2017 is in the final stretch, it appears there’s still quite a bit of activity in the Canadian online brokerage space. From awards to new deals crossing the wire, the last few weeks of the year will probably have a few more surprises to offer DIY investors.

In this week’s (shortened-because-it’s-coming-from-Mexico) roundup, we take a look at the latest ratings of online brokerage mobile experiences and what trends are emerging as brokerages race to improve trading on the go. From there, we’ll take a look at the latest crop of deals and promotions to cross the wire. As always we’ll track and close up this edition of the roundup with conversation of DIY investors on Twitter and what they were saying about Canada’s online brokerages this past week.

BMO InvestorLine sets the pace on mobile

This past week, the latest edition of the Surviscor mobile discount brokerage scorCard was released and BMO InvestorLine was crowned as Canada’s top discount brokerage for mobile customer experience.

For the second consecutive time in the survey’s history, BMO InvestorLine finished atop of 11 Canadian online brokerages reviewed for their mobile customer experience with a score of 76% (out of 100). Questrade (66%) and Qtrade Investor (61%) were ranked second and third respectively. In the previous set of mobile brokerage rankings, two out the top three online brokerages were bank-owned brokerages however in 2017, BMO InvestorLine stood out as the only bank-owned brokerage in the top three.

In addition to being ranked first overall in 2017, BMO InvestorLine also received four category honours, including the top scores in the “Getting Connected,” “Market Intelligence,” “Account Services” and “Mobile Transactions” categories.

 

Surviscor’s mobile brokerage assessment was first launched in 2015 and evaluates online brokerages using both Apple and Android mobile devices. The categories that the mobile brokerage analysis measures are:

  • Getting connected
  • Mobile usability
  • Account support
  • Market intelligence
  • Mobile transactions
  • Mobile resources

Glen Lacoste from Surviscor appeared on BNN (see video here) to provide his perspective on the latest set of online brokerage mobile experience results and noted that while most bank-owned online brokerages appear to be doing well on the banking side of their mobile applications, the DIY investing tools and resources are lagging.

Digital enhancements have been a big focal point for all of Canada’s online brokerages and it appears that the trend towards improving online experiences will only continue to strengthen.

In our exclusive look back on 2017,  Silvio Stroescu, President of BMO InvestorLine, highlighted several digital milestones that BMO InvestorLine achieved in 2017 and how “getting better at getting better” defines the new normal for financial services providers who want to come out ahead. While other online brokerages are also making strides to improve the innovation cycle, the latest recognition by Surviscor indicates that BMO InvestorLine is still the online brokerage setting the pace in Canada when it comes to overall mobile experience.

December deals and promotions update

Markets and cryptocurrencies aren’t the only reasons for DIY investors to be excited heading into the end of 2017. For anyone looking to open a new online investing account, whether it’s an RRSP, TFSA or margin trading account, there’s something for everyone.

As all seasoned traders know, higher prices lead to higher prices – at least for some stretch of time.  For all DIY investors, however, there seems to be an additional rule when shopping for online brokerages which is online brokerage deals lead to more online brokerage deals.

This month’s promotional landscape is a great example of that. The deals count heading into December is now at a very healthy 25, with a noteworthy comeback in the cash back and discounted commission price category of deals.

And, as investors continue to get excited about the crytopcurrency/blockchain and marijuana legalization stories, companies will almost inevitably come to the public markets in these sectors which in turn, will draw investors interested in capitalizing on these stories into the market.

The net result should line up for a very exciting December/January for DIY investors. As Canadian online brokerages prepare for the RRSP contribution deadline, those brokerages currently not offering a promotion (especially a cash back or discounted commission promotion) are likely to launch one.

Stay tuned in our deals/promotions section for what will undoubtedly be a fun finish to 2018.

Discount Brokerage Tweets of the Week

 

Into the Close

That’s a wrap on this week’s action. Being Friday and with the US markets heading into some very interesting turbulence, hopefully there will be a chance to relax – unless, of course, you happen to be on Twitter or watching any cryptocurrencies, in which case, buckle up. Have a great (and potentially profitable) weekend!

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Discount Brokerage Deals and Promotions – December 2017

*Update: Dec. 21* If there’s one thing that we love to share heading into the end of the year, it’s holiday cheer. And, heading into the end of 2017 there’s lots to be cheerful for if you’re a DIY investor looking to open an online trading account at one of Canada’s discount brokerages.

Discount Brokerage Deals Quick Nav

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

As the end of the calendar year (which is important for TFSA’s) and the RRSP contribution deadline (in March) tick closer, Canadian discount brokerages are gearing up for another busy season of DIY investors shopping around for the best deal on an online trading account.

Another reason online brokerages are looking to attract DIY investors is the meteoric rise in Bitcoin and and all things cryptocurrency as well as the interest in stocks/companies poised to benefit from legalization of recreational marijuana in Canada and beyond. Even though stock markets are at all-time highs, it seems that general investor sentiment is positive overall which in turn, attracts investors off the sidelines and into the online brokerage space.

So, fundamentally, it seems that now would be an opportune time for Canadian online brokerages to ramp up their incentive offers to win over DIY investors on the fence about choosing an online brokerage.

With that in mind, we’ll be keeping an eye out for offers that come to market between now and the end of 2018 and, as always, if you spot something that might be of value to other DIY investors, please place it in the comments below.

Expired Offers

There were no offers that expired heading into December.

Extended Offers

There were no offers that were extended heading into December.

New Offers

*Update: Dec. 21: Just in time for the holiday shopping season (and RSP season), TD Direct Investing has launched a very competitive cash-back offer through to the beginning of March 2018. This tiered offer starts at qualifying deposits (or asset transfers from another online brokerage) of $10,000 ($100 cash back) and goes to deposits of $500,000 or more ($1,000 cash back). See table below for more information.*

*Update: Dec. 9: Better late than never for the latest deal to cross our radar. HSBC InvestDirect is offering a trade commission rebate offer for up to 30 trades. This promotion follows their recent commission-price cut which we reported in October. For those interested in HSBC InvestDirect, the deadline for eligibility for this offer is December 15th 2017. See table below for more information.*

Virtual Brokers added a new promotion for discounted commission pricing. For a limited time, eligible individuals are able to receive up to 15 trades per month at $4.99 per trade for up to two months. The minimum deposit to be eligible for this offer is $5,000 and the offer is set to expire in March 2018.

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account with HSBC InvestDirect and you may be eligible to receive up to 30 North American equity trades commission-free. See terms and conditions for full details. n/a 30 commission-free North American equity trades 60 days (commissions will be reimbursed after 90 days). HSBC InvestDirect Fall Offer December 15, 2017
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2017
Open and fund a new account with Virtual Brokers with at least $5,000 and you may be eligible to receive up to two months of trading at $4.99 per trade (maximum of 15 trades per month). Use promo code 499COM2017 when signing up to qualify. See terms and conditions for full details. $5,000 Up to 2 months of trading at $4.99 per trade (max 15 trades per month) Commissions will be reimbursed after June 30, 2018. For more details, click here March 31, 2018
Open and fund a qualifying account with TD Direct Investing with at least A) $10,000; B) $50,000; C) $100,000; D) $250,000 or E) $500,000+ and place at least 5 commissionable trades within 90 days of account opening and you may be eligible to receive either A) $100; B) $200; C) $300; D) $500 or E) $1,000 in cash back. Be sure to read full terms and conditions for eligibility for this offer. A) $10,000 B) $50,000 C) $100,000 D) $250,000 E) $500,000+ A) $100 B) $200 C) $300 D) $500 E) $1,000 Cash award will be paid to the client before the last day of the month following the conclusion of the qualification period (90 days). #RetireReady Promotion March 1, 2018
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo January 31, 2018
Transfer at least A) $25,000; B) $50,000; or C) $100,000 into a new or existing RRSP, spousal RRSP or TFSA at CIBC Investor’s Edge before March 1, 2018 and you may be eligible for a cash back offer of A) $100; B) $200 or C) $400. Be sure to read terms and conditions for full details. A) $25,000 B) $50,000 C) $100,000 A) $100 B) $200 C) $400 Cash back will be deposited the week of May 4, 2018 (for transfers received by Dec. 31, 2017) or July 3, 2018 (for transfers received after Dec. 31, 2017). CIBC Investor’s Edge Cash Back Promo March 1, 2018
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1M+ and you may be eligible to receive a pre-paid Visa gift card worth A) $50; B) $100, C) $200; D) $300; E) $600 or F) $1200. Use code VISA18 when signing up. Be sure to read terms and conditions for full details. A) $25,000 B) $50,000 C) $100,000 D) $250,000 E) $500,000 F) $1M+ A) $50 B) $100 C) $200 D) $300 E) $600 F) $1200 pre-paid card should arrive by July 31st 2018 Scotia iTRADE offer March 1, 2018
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, with at least A) $50,000; B) $100,000 or C) $250,000+ in net new assets and you may be eligible to receive up to A) $50; B) $100 or C) $300 cash back. In addition, eligible individuals can receive an extra $50 as part of the refer a friend program. Use promo code SPARXCASH when signing up for the cash back offer. Be sure to read the terms and conditions for more details on the offer. A) $50,000 B) $100,000 C) $250,000+ A) $50 B) $100 C) $300 Cash back will be deposited the week of Aug. 13, 2018. Fall cash back offer Phase 2 January 1, 2018

Expired Offers
Last Updated: Dec. 21, 2017 15:00 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 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. $50,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period(subject to conditions). BMO InvestorLine Refer-a-Friend June 30, 2018

Expired Offers
Last Updated: Dec. 1, 2017 13:50 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
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
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $20,000 Transfer Fee Rebate none
Transfer $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 Transfer Fee Rebate none
Transfer $25,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $25,000 Transfer Fee Rebate none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer 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 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo tbd
Transfer $25,0000 or more to Scotia iTRADE and they cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo March 1, 2018
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
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 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo January 31, 2018
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, by transferring in at least $200,000+ in net new assets and you may be eligible to have transfer fees covered up to $200. Use promo code SPARXCASH when signing up to also be eligible for cash back offer. Be sure to read the terms and conditions for more details on the offer. $200 $200,000 Fall cash back offer Phase 2 January 1, 2018

Expired Offers
Last Updated: Dec. 1, 2017 13:50 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Disnat Desjardins Online Brokerage, in conjunction with MoneyTalks, is offering 3 months of the “Inside Edge” investor information service to Desjardins Online Brokerage clients. Use promo code DESJ2016 during checkout to qualify. Be sure to read full terms and conditions for more information. n/a MoneyTalks Inside Edge Discount none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none

Expired Offers
Last Updated: Dec. 1, 2017 13:50 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $5,000 1 year no management fees STSF January 2, 2018 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $5,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Dec. 1, 2017 13:50 PT
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Discount Brokerage Weekly Roundup – November 24, 2017

It’s black Friday which means deal hunters are out in full force online and in the stores looking for a great bargain. For DIY investors, looking for a deal in the markets or even looking for a deal when opening an online trading account got a little easier as yet another Canadian online brokerage joined the deals pool this week.

We’ll keep things light and easy for this week’s roundup with a quick check in on the latest online brokerage deal to cross the wires followed by a roundup of the DIY investor education events that are taking place heading into the end of 2017. As usual, we’ll also serve up a generous helping of DIY investor chatter from Twitter and interesting conversations from the DIY investor forums.

Virtual Brokers launches new promotional pricing offer

Just in time for the Black Friday offers, this week Virtual Brokers stepped back into the spotlight with a new promotional commission price offer.

Trade commissions are now being offered at $4.99 per trade for two months, with a maximum of 15 trades per month at the discounted pricing. According to the terms and conditions of the deal, the full commission will be charged at the time of trade execution and then a reimbursement will be offered after June 30th, 2018 provided eligibility conditions are met.

With the addition of the Virtual Brokers offer, this puts the active advertised deal count we’ve spotted at 25 and is a signal that the 2018 RRSP season will be off to a heated start. Also of interest, the cash back and commission-free trade promotion category is regaining ground lost in 2017 as competition between Canadian discount brokerages heats up.

Click the following link to see the latest discount brokerage deals/promotions info for November.

Investor Education Events on the Horizon

Heading into the end of the year, there are still a couple of investor education events for DIY investors that are worth tuning into or attending in person. We’ve flagged a few that might be of particular interest for getting some perspective on how to trade the markets heading into 2018 as well as a pair of sessions that are focused on every trader’s least favourite (but nonetheless very important) topic: taxes.

Here’s a quick rundown:

What’s Your Investor Personality – Larry Berman – Nov. 25th; Dec. 2nd

Larry Berman will be making an appearance in Vancouver on November 25th as part of the cross-country tour he has been on since mid-October. Vancouver is the second last stop with the final show taking place in Toronto on December 2nd.

On the docket for the presentation in Vancouver is a discussion by BMO ETFs to debunk some of the common misconceptions about ETFs. Following this presentation, Larry Berman will discuss the role that psychology plays in influencing investor behaviour and how some simple ETF strategies can be applied to assist investors with their own investment biases.

For more information on the remaining segments of the tour, click here.

Online Free Trading Workshop  – Ziad Jasani – Dec. 2nd

Ziad Jasani of the Independent Investor Institute is holding a webinar on December 2nd to assess market risks and opportunities heading into the end of 2017. Topics to be covered include: global equity markets; macro assets as well as short and long-term trading and allocation strategies. Click here for more information (just wait about 5 seconds for the registration window to pop up).

Tax-Effective Estate Planning – CIBC Investor’s Edge – Dec. 13th

Over the past several months, we’ve observed an uptick in the number of investor education events being held by CIBC Investor’s Edge. The next webinar coming around the corner is by the ever-popular Jamie Golombek, managing director, tax & estate planning with CIBC and it focuses on steps that individuals can take with regards to estate planning, with a focus on minimizing taxes upon death.

For more information or to register for this event, click here.

Proposals for the Taxation of Private Corporations and Tax Planning Strategies – TD Direct Investing (Montreal) – Dec. 13th

TD Direct Investing has geared down the number of events it’s holding heading to the end of the year, however there was one even in Montreal that caught our attention. Specifically, it is a session will dive into recent proposed tax changes by the Federal Government and how they may impact business owners. For more information on this session, click here.

In case you missed it: 2017 Online Brokerage Year in Review

In case you missed last week’s edition of the weekly roundup where we announced that the 2017 Canadian Online Brokerage Review and 2018 Preview was live, we highly encourage you to read through it.

With responses from 9 of Canada’s most popular online brokerages, this series offers a unique and fascinating overview of what Canada’s online brokerages were up to in 2017 as well as what many of them have in store for DIY investors for 2018.

To view the responses from participating online brokerages, click any of the links below:

Discount Brokerage Tweets of the Week

The temperature outside may be falling but DIY investors turned up the heat on Twitter to report everything from glitches in account opening to platform outages and more. The news wasn’t all bad, however, as there were some bright notes included in this week’s selection. Mentioned this week were BMO InvestorLine, CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

RESP Questions

When it comes to navigating RESP options for Canadian DIY investors, things can get a little complicated – especially when mixing in provincial bonuses and the additional options that are now available beyond online brokerages (e.g. robo-advisors). In this post from RedFlagDeals.com’s investing forum, one user from Quebec is looking for a little perspective on choosing between TD Direct Investing, Questrade’s self-directed account or Portfolio IQ.

Avoiding RRSP Fees

For DIY investors, every penny counts. When it comes to having to pay fees to access your own money, however, getting dinged for that access doesn’t typically go over well. In this post, from reddit’s personal finance Canada thread, it was interesting to see the responses one DIY investor received when asking about getting around withdrawal fees from an RRSP.

Into the Close

That’s a wrap on this week’s roundup. With US stock markets closed for Thanksgiving, things were a bit quieter than usual for some. Fortunately, there was lots of hype for Black Friday and sales galore to take advantage of across the weekend and into Cyber Monday. Of course, for anyone dipping into cryptocurrency trading right now, the madness of Black Friday seems pretty tame. Have a great weekend and best of luck hunting for great bargains in the stores and online or just kicking back and relaxing!

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Discount Brokerage Weekly Roundup – November 17, 2017

If we didn’t need any more reminders that we’re hurtling towards the future faster and more furious than ever, we nonetheless got not one but two this week with Elon Musk’s mindblowing new Tesla semi-truck and updated roadster. What, you might be asking, does this have to do with Canadian discount brokerages? Well, simply put, Tesla’s re-imagining of the trucking industry is a reminder that no industry is safe from disruption by technology, and that includes the online trading industry.

In this edition of the roundup, we look at the recently published and highly-anticipated year in review series as told by the Canadian online brokerages themselves. From there, we’ll review the latest discount brokerage deal to cross the wires as well as some interesting opinions by one online brokerage CEO on the perils of bitcoin trading. Finally, we wrap up with the results of our scans of social media and the DIY investor forums for investor chatter.

2017: A look back on a very eventful year

Earlier this week we published our highly anticipated Canadian online brokerage ‘year in review and preview to 2018.’ This series, which featured participation from leaders from 9 of Canada’s online brokerages, provides a unique window into the performance and priorities for each firm in 2017 as well as a sneak peek into what DIY investors can expect for 2018.

We were genuinely excited by the responses and participation from Canada’s online brokerages. Not only did they chronicle some of the major milestones and accomplishments for 2017, we also were able to see some trends emerging across the responses we received, and have summarized several of them below.

One of the first and clearest trends that emerged across Canada’s online brokerages for 2017 was being able to harness web and trading technology and, in turn, improve user experience.

As financial services firms, Canada’s online brokerages face similar challenges that other financial service providers do in that they require constant responsiveness to changes in technology and consumer technology preferences. This past week, for example, there was news that BMO has created a voice-enable service that pairs with Amazon’s Alexa and also that RBC is field testing a robo-advisor.

Of course, as features and services evolve, online brokerages may be able to deliver more value to DIY investors without increasing commission pricing. The fierce competition among Canada’s discount brokerages mean that everyone is vigilant about enhancing perceived value to their clients by using technology. This past year, for example, saw firms such as National Bank Direct Brokerage drop commission fees on all ETFs or other firms, such as RBC Direct Investing and Credential Direct, launch personal-finance focused content to their clients.

Another important theme that emerged from the responses from Canada’s online brokerages about 2017 was that the trading experience is being fine-tuned across the board.

There are surprisingly many moving parts to the investing/trading process and the entire cycle from how trades are placed to managing and monitoring the status of open orders to keeping track of the documentation associated with an online trading account has seen improvements. BMO InvestorLine, for example, made accessing tax documentation smoother and both Questrade and TD Direct Investing improved the options trading capabilities for clients interested in these products.

In addition to the look back on 2017, several online brokerages provided a glimpse of what’s in store for DIY investors in 2018.

As we reported last week, Qtrade Investor actually published information on many of the enhancements they have planned or have just deployed, including removing account deposit minimums and new features for tracking contributions to registered accounts. However, they are not alone.

Other online brokerages, such as NBDB and TD Direct Investing are forecasting improvements to account opening processes, while on the active trader side of the spectrum, firms such as Interactive Brokers Canada and TD Direct Investing have upgrades planned to account and trade management planned for the near future.

Check out the full list of online brokerages in the year in review article here or by clicking one of the links below.

Scotia iTRADE deals in

Just in time for the Black Friday rush, one more Canadian online brokerage has released its own cash-back offer. This week, Scotia iTRADE rejoined the discount brokerage deals and promotions pool in a significant way by launching their latest offer: a tiered pre-paid Visa card for opening a new account.

Source: Screenshot from Scotia iTRADE website

As with previous promotions, this is a tiered offer that provides a cash back amount in line with the amount of assets deposited. Qualifying deposits start at $25,000 which will land a $50 pre-paid gift card and go up to $1200 for deposits of $1,000,000 or more. Check out the deals section for more details..

Interactive Brokers founder warns of Bitcoin Futures

The new world of online trading has expanded to include cryptocurrency. While still highly controversial, there have been recent developments that show signs that cryptocurrency trading is going mainstream – including the clearing of futures of bitcoin.

This past week, the founder and CEO of Interactive Brokers, Thomas Peterffy, took the bold step of issuing a stern warning to regulators and financial market participants about the potential systemic risk of clearing trades of bitcoin futures.

The ‘father of high-speed trading’ just put bitcoin on blast from CNBC.

One especially interesting nugget that he provided in the interview was that Interactive Brokers would be open to enabling clients trade bitcoin and even possibly bitcoin futures through the appropriate venue. The key takeaway, however, is that there needs to be a separation between bitcoin futures clearing organizations and organizations that also clear regulated securities.

Check out the interview he gave on CNBC above and read the notice he placed in the Wall Street Journal – it definitely helps put some the recent enthusiasm in bitcoin into perspective.

Discount Brokerage Tweets of the Week

From outages to wait times, most of this week’s tweets provide an interesting look into what happens when things go off the rails at Canadian online brokerages. Of course, there are a handful of positive ones in the bunch too. Mentioned by Canadian DIY investors were BMO Investorline, CIBC Investor‘s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, and TD Direct Investing.

From the Forums

Mini e-Series

TD Direct Investing’s e-Series funds are undoubtedly a hit with DIY investors. In this post from reddit’s personal finance Canada section, one reader was curious about how to optimize participating in the e-Series but minimizing the banking costs. Worth a read.

Starting Young

One of the great things about being young in 2018, aside from Snapchat and high-speed internet, is that many online brokerages have pricing or pricing breaks for younger investors. Find out what tips this young investor on reddit’s personal finance Canada section received when inquiring about the best online brokerage for young investors.

Into the Close

With all this talk of fantastical electric vehicles, it seems fitting to celebrate the weekend by recharging for the week ahead. Of course, traders will almost inevitably be looking for ways to ‘buy low’ for the upcoming Black Friday, so best of luck hunting deals inside of and outside of the stock (or cryptocurrency) market. Have a great weekend!

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2017 Canadian discount brokerage review & 2018 preview

Hard to believe how fast time flies. As we near the end of the 2017, we felt it was an appropriate time to reflect on what has been yet another eventful year for Canadian online brokerages. And, while we could comment on the rise of roboadvisors or the changing preferences of online investors, we figured it would be far more interesting to hear what Canada’s online brokerages had to say about their milestones in 2017 and what they have planned for 2018.

In total, we received submissions from 9 Canadian online brokerages and we’re excited to share these perspectives from, in many cases, the voices of the individuals leading these organizations.

In keeping with the spirit of the exercise, we’ll keep the commentary to a minimum but before diving in, we highlight three interesting themes we noted shine through from comparing all of the submissions. If there’s one takeaway for online brokerage industry however, it’s that brokerages can no longer afford to stand still.

Theme 1: It’s a technological arms race

While it hardly seems surprising that online brokerages would naturally be heavily reliant on technology, the rapidly changing nature of technology has required all of Canada’s online brokerages to become more adept at leveraging this technology in their favour.

Larger online brokerages have had to adapt their technology development cycles to be faster and more agile; smaller online brokerages have had to learn how to leverage technology to do more to compete with larger bank-owned brokerages and nearly all online brokerages have had to learn how to create a seamless trading experience across screens and devices.

As smartphones continue to surpass home computers in usage, price and functionality, and as internet speed and coverage increase, there’s a greater likelihood that consumers will be using smartphones for many aspects of the trading experience. A very interesting example of this from 2017 has been the investment in enhancing options trading capability by Questrade and TD Direct Investing.

A noteworthy mention is Interactive Brokers’ deployment of a ‘personal assistant’ style trading interface (called IBot) which offers a view of how ‘AI’ might find its way into online brokerage services and help online investors execute and manage trades with simplified text and spoken commands.

Theme 2: Delivering more value to DIY investors

In a fiercely competitive discount brokerage landscape, commission costs still stand out as one of the most (if not the most) important factor for many Canadian DIY investors to consider when choosing an online brokerage. While prices still have room to fall (and they are falling), the reductions in standard commission pricing are not likely to be as significant as they were in 2014 and as a result, other features have to help Canadian online brokerages stand out.

Enhancing the value that DIY investors receive, and more importantly perceive, is one strategy online brokerages can use to keep from having to lower trading commissions.

While none of the online brokerages who provided a submission lowered their standard commission pricing this year (so far), they have found ways to lower commission pricing on certain products – such as ETFs in the case of National Bank Direct Brokerage, or to enable DIY investors to use loyalty points to pay for commissions (RBC Direct Investing).

Other sources for enhancing value came from improving and creating DIY investor content. Whether it was through investor newsletters, blogs or other content sources and streams, a number of Canadian online brokerages were actively creating and curating DIY investor-focused content.

Theme 3: Focus on better trading experiences

A third interesting theme for 2017 was to improve the trading experience. Whether it was focusing on making complex trading strategies easier to execute (e.g. TD Direct Investing and Questrade deployed improvements to complex options trading execution) or improving management of holdings and documentation (as in the case of BMO InvestorLine and Qtrade Investor), there has been and will continue to be a lot of resources devoted to enhancing how and where online trading takes place.

Like a good Netflix series, we’ve released all of the submissions provided to us by Canada’s online brokerages – although there are no shadow monsters or stranger things (we promise). So, go ahead and binge-read about some of the highlights from 2017 and get a sneak peek at what’s in store for 2018.

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Discount Brokerage Weekly Roundup – November 3, 2017

…Aaand we’re back. Now that November is here, it’s not only fireplaces and furnaces that are heating up, but also the action at Canadian discount brokerages. Specifically, the promotional activity is starting to ramp up and it looks like the gloves may be coming off to end 2017.

In this edition of the weekly roundup, we take a look at the latest deals and promos to go live from Canadian online brokerages and one of the biggest trends we’ve spotted that might make life pretty interesting for DIY investors and other online brokerages alike. From there we take a look at an interesting series about to launch from SparxTrading.com in the next few weeks and follow up with a very unique interview we found of the CEO of one of Canada’s independent online brokerage’s. As always, we’ll take a look at what DIY investors were chatting about on Twitter and in the DIY investor forums.

New Month, New Deals

While we probably won’t see another Black Friday or Cyber Monday style promotion for online trading accounts, the reality is that as RRSP season gets closer, we expect to see more incentive offers come to market, especially from online brokerages that typically sit on the sidelines for most of the year.

Fortunately, by the first Friday in November, there are already two new discount brokerage deals to kick off the month.

First out of the gate was BMO InvestorLine, who launched a new cash back promotion to replace their previous promotion that expired at the end of October.

This new offer has three different cash back levels based on the amount deposited. Cash back amounts range from $50 to $300 depending on the amount deposited. Interestingly, the minimum deposit to qualify for the current BMO InvestorLine cash back promotion is $50,000, which is typically lower than the $100,000 qualifying deposit level from past promotions.

Also noteworthy is that the cash back amounts can be combined with the referral bonus offer ($50 cash). So, new clients can receive a cash back promotion plus the amount from the referral bonus.

Another cash back offer to hit the market this week was from CIBC Investor’s Edge. This is another tiered offer with cash back amounts ranging from $100 (for deposits of $25,000 to $49,999) to $400 (for transfers of $100,000 or more). There is an important detail to this offer which is that accounts eligible for this promo are RRSP or TFSA accounts.

Currently, BMO InvestorLine and CIBC Investor’s Edge are the only major online brokerages offering a standalone cash back offer. All the other cash back offers have to be accessed through the referral offers, and even then, only three online brokerages (BMO InvestorLine, Questrade and Scotia iTRADE) have these cash back referral programs in place.

The bigger trend, it appears, is for Canadian online brokerages to be encouraging switching from competitor firms.

Almost all of Canada’s online brokerages have switching fee coverage offers. BMO InvestorLine offers the most coverage ($200) for transfer fees, however the deposit amount required for that transfer coverage is $200,000. By comparison, RBC Direct Investing and HSBC InvestDirect require at least $15,000 to cover transfer fees.

Interestingly, Desjardins Online Brokerage’s current promotion is geared towards attracting DIY investors from other online brokerages. Their 1% commission-credit campaign was recently updated with and extended deadline (through to January 31st) and has also revised the promotion code with a greater emphasis on the transfer aspect of the promotion. Similarly, the latest promotion from CIBC Investor’s Edge also appears to put greater emphasis on transferring an existing account from another institution.

For DIY investors, this kind of promotion is a signal that discount brokerages are becoming more assertive in pushing for assets, especially those from other brokerages. It should, in theory, push other online brokerages to step up their efforts to a) retain clients but also b) onboard new clients. As a result, we expect November will have additional new offers come online, and all DIY investors will want to keep an ear to the ground for what Canadian brokerages are offering.

Year in Review

It’s hard to believe the year is almost over but with just 7 more weeks until Christmas, the lights, decorations and holiday tunes will be hard to miss.

To get into the giving spirt, exclusively for readers of SparxTrading.com, we’ve got a special present of our own lined up: a collection of reviews and perspectives provided by Canadian online brokerages on the year that was.

While there might still be a few more surprises coming before the year is out, it will nonetheless be a great opportunity to hear what Canada’s online brokerages have to say about their milestones for the year as well as what DIY investors can expect in 2018. Stay tuned as these will start rolling out in the next two weeks!

Questrade CEO Provides Perspective on Investing

Every so often an interesting nugget crosses our radar. Although we didn’t report this last week, we came across an interesting interview by blogger Jessica Moorhouse with CEO and founder of Questrade Edward Kholodenko.

Now, for any veteran investor in the markets and especially anyone doing investing in early stage companies or mining/exploration stocks, one of the key indicators to use in deciding whether to invest in a company is to look at the management and leadership. In the case of choosing an online brokerage, it is a challenge to get a very candid view of the leadership to understand what their vision is of the brand and what direction they are taking the firm in, so this video interview helps to shed some light on Questrade’s story through that of its founder.

Within Canada, Questrade is unique in that sense because they are still an independent brokerage and because their CEO isn’t camera shy. In this almost 30-minute interview, there’s a lot of ground that gets covered – including the story behind how Questrade got started. More interesting, however, is the entrepreneurial approach that Kholodenko has taken in founding Questrade, a theme that seems to have characterized its growth path since its launch. From the time that Questrade launched as a discount brokerage in Canada, they have since broadened their reach into ETFs, market making and managed wealth services, including the robo-advisor space.

Perhaps as a result of constantly evolving their technology offering in the financial services space, Questrade was recently invited to participate on a team to improve delivery of financial services technology in Ontario.

Of course, technology companies are not without growing pains. At discount brokerages in Canada, big and small, technology hiccups occur – and Questrade has had their fair share over the years. Any scan of the discount brokerage tweets of the week show that momentary interruptions in service, especially during market hours, get the attention of active (and typically vocal) investors. Nevertheless, the challenge to evolve and innovate is always there, so this interview offers a unique window into this online brokerage and especially the perspective of its CEO on DIY investing, robo-advisors and more.

Discount Brokerage Tweets of the Week

There were glitches galore across the board this past week. Find out what DIY investors were chatting about. Mentioned this week were Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing, and Virtual Brokers.

From the Forums

Friends & Family Feud

Referral programs at DIY brokerages are interesting approaches to acquire new clients. While there are a handful of programs in Canada, one of the most popular is Questrade’s. In this (very long) post from reddit’s personal finance Canada thread, one user provides a very interesting window into their experience with the referral program and all important “fine print” that is so important to read through.

DIY vs Robo

With investors now becoming more familiar with robo-advisors as a choice in the wealth management mix, there’s a natural question as to whether or not DIY investing is better or worse than robo-advisors. In this post from reddit’s personal finance Canada forum, it was interesting to read responses comparing the Canadian Couch Potato vs Wealthsimple.

Into the Close

That’s a wrap on another week. Daylight savings ends this weekend so there’s at least one more hour before market open on Monday. With lots of sports on the docket for the weekend, there’s certainly an extra hour to enjoy it all. Of course, now that winter has started to show up (amirite Vancouver?) in some places, the warm glow of a computer screen or LED TV is pretty tempting. Have a great weekend!

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Discount Brokerage Deals and Promotions – November 2017

*Updated Nov. 17* Just because Halloween’s over doesn’t mean there aren’t treats left over for Canadian DIY investors in November. Even though the RRSP contribution deadline for 2017 is still a few months away, Canadian discount brokerages will be starting to gear up for their ‘busy’ season, aka RRSP contribution season, which tends to peak in February and March. Investors who want to get a jump on their personal finances are starting to kick the tires on Canadian online brokerages which means that incentive offers are starting to percolate.

Discount Brokerage Deals Quick Nav

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

The good news for DIY investors searching for an online trading account is that there are still 23 or so offers available at the start of November.

By far, the most dominant category of offers is transfer fee promotions. So, it looks like almost all Canadian online brokerages are making it easier for DIY investors looking to jump ship to do so. Cash back and commission-free trading offers are the next most popular category, with the balance in this category tilted heavily towards commission-free trade offers.

Heading into the new month there is one new offer from BMO InvestorLine, a transfer offer from Credential Direct that resurfaced, and a slight modification to an offer from Desjardins Online Brokerage.

As always, if there are any promotions that you may come across that we haven’t mentioned, let us know in the comments section below.

Expired Offers

Heading into November, Scotia iTRADE’s personal finance story contest (#mymakeithappen) ended on October 31st. The final draw from the Apple watch will take place on November 24th.

Also expiring at the end of October was BMO InvestorLine’s initial fall cash-back promotion. A new promotion (see below) has been launched to replace it.

Extended Offers

The 1% commission credit offer from Desjardins Online Brokerage has been extended and modified slightly. The new expiry date for this offer has moved to January 31st, 2018 and the promo code to qualify for this offer has also been updated to DisnatTransfer. Another observation about this offer is that it appears to be more targeted towards asset transfers specifically rather than new account opening – i.e. this promotion is for DIY investors transferring from another online brokerage.

New Offers

*Updated Nov. 17 – It may have taken a while, but the deals and promotions turned it up a notch thanks to Scotia iTRADE this past week. This tiered deposit offer ranges from prepaid Visa cards of $50 all the way to $1200. Qualifying deposit amounts begin at $25,000. Be sure to read the table below for more info. *

*Updated Nov. 3 – CIBC Investor’s Edge has jumped into the promotional offer pool with a cash back offer directed at DIY investors interested in registered accounts – specifically RRSP and TFSA accounts. This cash back promotion offers between $100 and $400 cash for deposits ranging between $25,000 and $100,000+. See table below for more details.*

As of November 1st, BMO InvestorLine has officially launched its newest cash back promotion. This promo consists of three tiers, starting with a minimum deposit of $50,000 and ranging to $250,000+. As with previous offers, this promotion can also be combined with the refer-a-friend bonus which means that individuals opening a new account could receive an additional $50. This offer is good through January 1st, 2018. See the table below for more details.

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2017
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo January 31, 2018
Transfer at least A) $25,000; B) $50,000; or C) $100,000 into a new or existing RRSP, spousal RRSP or TFSA at CIBC Investor’s Edge before March 1, 2018 and you may be eligible for a cash back offer of A) $100; B) $200 or C) $400. Be sure to read terms and conditions for full details. A) $25,000 B) $50,000 C) $100,000 A) $100 B) $200 C) $400 Cash back will be deposited the week of May 4, 2018 (for transfers received by Dec. 31, 2017) or July 3, 2018 (for transfers received after Dec. 31, 2017). CIBC Investor’s Edge Cash Back Promo March 1, 2018
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1M+ and you may be eligible to receive a pre-paid Visa gift card worth A) $50; B) $100, C) $200; D) $300; E) $600 or F) $1200. Use code VISA18 when signing up. Be sure to read terms and conditions for full details. A) $25,000 B) $50,000 C) $100,000 D) $250,000 E) $500,000 F) $1M+ A) $50 B) $100 C) $200 D) $300 E) $600 F) $1200 pre-paid card should arrive by July 31st 2018 Scotia iTRADE offer March 1, 2018
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, with at least A) $50,000; B) $100,000 or C) $250,000+ in net new assets and you may be eligible to receive up to A) $50; B) $100 or C) $300 cash back. In addition, eligible individuals can receive an extra $50 as part of the refer a friend program. Use promo code SPARXCASH when signing up for the cash back offer. Be sure to read the terms and conditions for more details on the offer. A) $50,000 B) $100,000 C) $250,000+ A) $50 B) $100 C) $300 Cash back will be deposited the week of Aug. 13, 2018. Fall cash back offer Phase 2 January 1, 2018

Expired Offers
Last Updated: Nov. 17, 2017 22:30PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 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. $50,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period(subject to conditions). BMO InvestorLine Refer-a-Friend June 30, 2018

Expired Offers
Last Updated: Nov. 1, 2017 21:30 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
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
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $20,000 Transfer Fee Rebate none
Transfer $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 Transfer Fee Rebate none
Transfer $25,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $25,000 Transfer Fee Rebate none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer 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 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo tbd
Transfer $25,0000 or more to Scotia iTRADE and they cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo March 1, 2018
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
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 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo January 31, 2018
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, by transferring in at least $200,000+ in net new assets and you may be eligible to have transfer fees covered up to $200. Use promo code SPARXCASH when signing up to also be eligible for cash back offer. Be sure to read the terms and conditions for more details on the offer. $200 $200,000 Fall cash back offer Phase 2 January 1, 2018

Expired Offers
Last Updated: Nov. 17, 2017 22:30 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Disnat Desjardins Online Brokerage, in conjunction with MoneyTalks, is offering 3 months of the “Inside Edge” investor information service to Desjardins Online Brokerage clients. Use promo code DESJ2016 during checkout to qualify. Be sure to read full terms and conditions for more information. n/a MoneyTalks Inside Edge Discount none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none

Expired Offers
Last Updated: Nov. 1, 2017 21:30 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $5,000 1 year no management fees STSF January 2, 2018 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $5,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Nov. 1, 2017 21:30 PT
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Discount Brokerage Deals and Promotions – October 2017

Even though the leaves are starting to change colour this month, it seems that this fall, not much is changing with Canadian discount brokerage deals and promotions.

Discount Brokerage Deals Quick Nav

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

For DIY investors hunting around for a special incentive offer before opening an online investing account, the good news remains that there are a number of offers to take advantage of.

Coming into this month, however, there were no new offers on the board. As the Canadian landscape of discount brokerages evolves, however, we’re forecasting some very interesting developments in the deals space this month and before 2017 is over. Most notably, the acquisition of Virtual Brokers’ parent company, BBS Securities, by CI Financial likely means that other online brokerages are going to have to decide to get in front of a deeper pocketed rival.

As always, we’ll keep an eye out on the latest offers to emerge through the month and if there are any offers that you think would be useful to our readers, feel free to let us know in the comments section below.

Expired Offers

Two offers from Virtual Brokers officially expired at the end of September. The promotions that were retired were the cash back and commission-free ETF trade offers.

Extended Offers

No offers were extended.

New Offers

No new offers were launched at the beginning of the month.

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2017
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatFlex or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo December 31, 2017
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, with at least A) $100,000 or B) $250,000+ in net new assets and you may be eligible to receive up to A) $300 or B) $750 cash back. In addition, eligible individuals can receive an extra $50 as part of the refer a friend program. Use promo code SPARXCASH when signing up for the cash back offer. Be sure to read the terms and conditions for more details on the offer. A) $100,000 B) $250,000+ A) $300 B) $750 Cash back will be deposited the week of June 11, 2018. Fall cash back offer October 31, 2017

Expired Offers
Last Updated: Oct. 3, 2017 23:30PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 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. $50,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period(subject to conditions). BMO InvestorLine Refer-a-Friend June 30, 2018

Expired Offers
Last Updated: Oct. 3, 2017 11:55 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
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
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $20,000 Transfer Fee Rebate none
Transfer $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 Transfer Fee Rebate none
Transfer $25,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $25,000 Transfer Fee Rebate none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer 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 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo tbd
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
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 1-866-873-7103 and mention promo code DisnatFlex. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo December 31, 2017
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, by transferring in at least $200,000+ in net new assets and you may be eligible to have transfer fees covered up to $200. Use promo code SPARXCASH when signing up to also be eligible for cash back offer. Be sure to read the terms and conditions for more details on the offer. $200 $200,000 Fall cash back offer October 31, 2017

Expired Offers
Last Updated: Oct. 03, 2017 23:35 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Disnat Desjardins Online Brokerage, in conjunction with MoneyTalks, is offering 3 months of the “Inside Edge” investor information service to Desjardins Online Brokerage clients. Use promo code DESJ2016 during checkout to qualify. Be sure to read full terms and conditions for more information. n/a MoneyTalks Inside Edge Discount none
Scotia iTrade Share a story about a personal finance goal or moment (max 1000 characters) and complete the contest submission form and you may be eligible to win one of three monthly prizes of an Apple Watch Series 2. Contest is open to all Canadian provinces except residents of Quebec. Be sure to read contest terms and conditions for full details. n/a Terms & Conditions available here: Scotia iTRADE #MyMakeItHappen Contest; Entry link available here. October 31, 2017
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none

Expired Offers
Last Updated: Oct. 3, 2017 23:35 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $5,000 1 year no management fees STSF October 31, 2017 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $5,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Oct. 3, 2017 23:35 PT
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Discount Brokerage Weekly Roundup – September 22, 2017

With the first day of fall arriving this week, it’s unbe”leaf”able how fast time flies. And while the news was busy reporting world leaders trading insults, stock market charts show that the investing world continues to be busy trading shares, as trends continue moving up and to the right. Curiously, charts tracking performance of Canadian online brokerages are hard to come by but fortunately we’ve put together something special for this edition of the roundup that looks at the trends in online brokerage performance.

This week, we take a deep dive into the latest Canadian online brokerage rankings from J.D. Power and crunch some numbers to uncover how Canada’s discount brokerages are keeping pace with changing investor needs. From there we’ll take a quick peek at what’s been happening on social media and what investors are talking about on the forums.

Rankings show Canadian DIY investors are happier than ever with online brokerages – sort of

The latest results from the 9th iteration of J.D. Power’s Canadian self-directed investor satisfaction study were published last week and paint an interesting, somewhat paradoxical, picture of the world in 2017 for DIY investors and Canadian discount brokerages.

On the one hand, the insights from a survey of over 2600 DIY investors surveyed in May and June of this year indicated that more than half of respondents indicated there is a “current or imminent need for full-service advice” suggesting that that online brokerages “have significant assets at risk of attrition if they are not able to meet this need.” Simply put, it looks like lots of DIY investors may be seeking to not DIY so much anymore.

Of course, why that insight is so interesting is because scores for DIY investor satisfaction with Canadian online brokerages have, at least for the past five years that we checked, not ever been this high on the J.D. Power rankings study. Top online brokerage this year, Desjardins Online Brokerage, managed to achieve a rating of 785 (out of 1,000), a score well above the highs achieved by Canadian brokerages since 2013. So what gives?

This was one a few curiousities that led us to take a step back to see what a long-term analysis of these annual survey results would reveal. After all, DIY investors looking for an online brokerage do so hopefully never having to look to change to another brokerage. The notion that maybe preferences or needs of investors are changing, especially when considering millennials, prompted us to look back on previous rankings for some additional context on these latest figures.

Canadian discount brokerage rankings, for the most part, present an annual snapshot into the opinions of investors or online brokerage researchers. While it does offer a ‘current’ view, one shortcoming of presenting data in this way is that it becomes tricky to establish what the track record is for a particular brokerage is over time. In the case of J.D. Power’s latest rankings, asking, for example, how consistent an online brokerage is at satisfying clients, might offer additional depth for someone looking for a longer term relationship with their online brokerage.

As such, we decided to put J.D. Power’s 2017 discount brokerage rankings into context by comparing results from the past five years’ (from 2013 to 2017 inclusive) worth of scores. And, to borrow from a buzzfeed style reference, what we found was very cool.

Now, before going down the data rabbit hole, we should mention that like investor preferences, the investor satisfaction study has also evolved over time – so take the year to year comparison with a grain of salt. Nonetheless, the rationale for comparing year over year results is based on the assumption that investor satisfaction (however it may be defined) is important as an end point.

To keep things simple, we’ve identified three things about the trends in the online brokerage data going back to 2013 that can add a lot of context for anyone thinking about opening an online brokerage account or even anyone thinking of jumping ship to another online brokerage.

Insight 1: Satisfaction is on the rise

The first very interesting insight is that the scores among Canadian online brokerages on the J.D. Power investor satisfaction study are improving for the Canadian industry as a whole.

This uptrend in satisfaction levels may be a reflection of the efforts put in by these brokerages to improve the customer experience overall, or (less likely) the lowering of standards by consumers as to what they’re going to get from an online brokerage. Based on efforts by big Canadian banks, for example, there have been numerous resources allocated to improving their image and client experience, in branches and online and it appears to be paying off.

Looked at another way, the good news is that Canadian DIY investors are more satisfied with their online brokerages than at any point in the previous five years. In fact, the firm that put in the lowest score in terms of investor satisfaction in 2017 (Questrade) scored 752 out of 1,000. To put that into context, in 2016 there were only two out of 10 firms with scores higher than 752 – BMO InvestorLine (762) and Desjardins Online Brokerage (774).

At the top end of the scale, Desjardins Online Brokerage, with a score of 785, earned a score higher than any other in the past five years and was followed closely by Qtrade Investor (778) which also scored higher than any other brokerage in the study over the past five years.

Insight 2: Brokerages are becoming more alike

Averages, however, don’t tell the whole story. Another very interesting observation is that the range between the top and bottom companies is narrowing. As the chart below suggests, scores for most Canadian online brokerages are converging making harder to distinguish between Canadian online brokerages.

Numerically the range between the highest and lowest reported scores fell from a high of 64 in 2013 and 2014 down to 33, a decline of almost 50%.

It will be interesting to see how online brokerages in Canada can differentiate themselves enough or create enough perceived value to encourage DIY investors to move assets from one firm to another. One way would certainly be through promotions. Another, however, as National Bank Direct Brokerage has demonstrated, suggests something bolder would be required. The J.D. Power survey of DIY investors was performed between May and June of this year, far in advance of the announcement that all ETFs at NBDB would be able to be traded commission-free. Even so, pricing is just one of a handful of factors that determine the scoring of the investor satisfaction study, so it will be interesting to see what happens in 2018.

Insight 3: Consistency counts

Finally, the third very interesting set of insights emerged by taking a long-term view of the Canadian online brokerage ranking data. If it sounds a bit math-y it is, but stick with it as it does provide some neat data.

We expected that firms that would be the most “predictable” or consistent, would have lower variation in satisfaction scores from one year to the next. We measured this by looking at the overall average of scores, and more importantly, at the standard deviation, or variability in the scores across time. Also, we expected that, if an online brokerage is doing a good job of keeping up with investor needs and preferences as measured by the investor satisfaction study criteria, then the scores should also be high.

So, in a nutshell, if the investor satisfaction scores are consistent and high that would make a strong case that the online brokerage is doing a consistently good job of satisfying its clients.

*note: gradients are applied to each column for improved visibility of high or low scores for each year; colours for standard deviation are reversed so low values are in green while high values are in red.

After crunching the numbers back to 2013, National Bank Direct Brokerage emerged as the best combination of strong satisfaction scores and low variation (standard deviation) from year to year. That is certainly a counterpoint to the drop they experienced in 2017 and it highlights the big picture that additional data can provide.

Another very consistent (albeit not as high scoring) firm was TD Direct Investing, which put in a close to average performance every year but whose clients also rated them as such. While it might not seem to be headline worthy, the reality is when it comes to business and investing, predictability is worth something.

It is also worth mentioning BMO InvestorLine in the long-term analysis as they also usually achieved better than average satisfaction scores with better than average consistency and so even though they have not won ‘top prize’ this year, data shows that they are a reliable choice to keep pace with investor needs.

At the other end of the consistency spectrum, firms with higher volatility in satisfaction scores also stood out, but not necessarily in a bad way. 2017 appears as a turnaround year for a pair of firms that have historically underperformed their peers in the investor satisfaction ranking.

The most evident change in performance was with Qtrade Investor, whose track record of scoring below average (going back to 2013) was handily shattered this year as they put in the second highest score (778). Interestingly, Desjardins Online Brokerage owns a significant stake of Qtrade Investor so the connection between these two online brokerages finishing at the top of the ranking may have something to do with these two firms comparing notes. Last week, there was also a piece in the Globe and Mail by Rob Carrick that provided additional context to Qtrade Investor’s strong performance in the Globe and Mail ranking of online brokerages vis a vis the J.D. Power rankings.

The other online brokerage that may be having a turnaround year is Scotia iTRADE. This year’s ranking was the first of the past five years in which Scotia iTRADE managed to score higher than average (albeit by two points). The fact that this was so different than years past is a signal that investor satisfaction with this discount brokerage was more positive in 2017 and is worth watching as they continue to roll out interesting initiatives (such as their social responsible investing tool).

As this analysis shows, there is something to be said for consistency. Unfortunately for many investors, innovation is about change and change comes with risks, so it is a double-edged sword when choosing an online brokerage that isn’t a trail-blazer or choosing one that is.

Even though how investor satisfaction is measured may change over time, everyone can agree that satisfied clients are generally a good thing. Taking the long-view on the most recent set of online brokerage rankings enables consumers to distinguish between who might be having had a unusually good (or bad) year, and who usually has good or bad year(s) when it comes to keeping clients satisfied.

Interestingly, the additional data from this year’s survey shows that providing access to advice, including robo-advice, as well as improving mobile trading experience (and user experience generally) might be areas for Canadian brokerages look to next to put more effort. The good news for DIY investors, however, is that it looks like much of what customers are saying about their online brokerages is good and that (hopefully) expectations of what makes an above average experience have been raised.

Discount Brokerage Tweets of the Week

Taking a peek under the hood at Canadian discount brokerage customer service this week. Mentioned by Canadian DIY investors were BMO InvestorLine, Questrade, RBC Direct Investing, Scotia iTRADE, and TD Direct Investing.

From the Forums

Making a switch

The grass may be greener for one online investor looking to move to the big green brokerage. In this post on reddit’s personal finance Canada section, one user asks for some more information about making the switch to TD Direct Investing.

North of the wall

In this post from reddit’s personal finance Canada subreddit, an online investor with a US trading account looks to Canadian DIY investors for suggestions on an online brokerage that is ETF friendly.

Into the Close

Congratulations for making it through a marathon roundup. We kicked things off with a corny pun so here are many more to close out on. Have a great weekend and enjoy a few well-deserved, corny laughs.