InvestorLine – Page 21

Posted on April 1, 2017 by user — 2 Comments

Discount Brokerage Deals & Promotions – April 2017

*Updated April 14* Even though this is technically April Fool’s Day, the pullback in deals is no laughing matter. After a very busy March in which there were as many as 35 deals in play, April kicks off with a more modest 24 live deals. The bigger story, however, is recognizing that now might not be the best timing for brokerages to be on the sidelines.

Having compared online brokerage deals & promotions for several years now, there is clearly some seasonality at play. Last year, for example, the transition from March to April saw the deal count drop from 33 to 19.

Discount brokerage deals and promotions typically ramp up at the beginning of a new year and crest heading into the RRSP contribution deadline at the beginning of March, after which things slowly subside.

Coming into 2017, however, it was noteworthy that several online brokerages had launched their major promotional pushes just before the end of 2016, signaling a much fiercer competitive environment for attracting new clientele.

And, although the start of April begins with a major contraction in offers, it is also interesting to see that competitive forces are still at play in the early part of 2017.

While we can’t be certain of the timing of this change, National Bank Direct Brokerage quietly lowered their minimum transfer deposit requirement from $25,000 to $20,000 for individuals to receive a transfer fee credit. The majority of Canadian online brokerages have set the bar at $25,000 to qualify for the transfer fee credit to apply so this move from NBDB might be enough to tip a few competitors to do the same.

Another interesting development at the outset of a new month is absence of special offers listed on the Scotia iTRADE ‘special offers’ page.

Along with BMO InvestorLine, Scotia iTRADE has been a stalwart of the deals race, typically running promotions to attract new clients. Interestingly, the ‘refer-a-friend’ and the ‘Start Right’ offers appear to have been labeled as “programs” (in the Fees section) rather than being listed under the special offers section. The same is true for their ‘buck-a-bond’ offer, which has been a fixture of previous special offer sections.

The restructuring of Scotia iTRADE’s deals could be a consequence of the new website organization but for DIY investors looking for an incentive, this change has made it less clear that there are offers available.

On the surface, it seems that running offers/promotions when DIY investors are in the market for opening an account makes sense. It’s why retailers concentrate their efforts around big shopping dates in the calendar year. Unlike retail, however, the reality is that DIY investors, especially those on the margins, might be driven more by the investment climate than by seasonal deadlines.

With our own internal data showing steady DIY investor interest, markets trading at all-time highs and economic forecasts flashing green, there’s a case to be made that there’s no better time for brokerages to be offering up more promotions rather than less. If investors are coming back to the markets, it will be interesting to see just how long brokerages are going to sit this opportunity out. Stay tuned.

Expired Deals

*Update: April 3 – BMO InvestorLine has retired their winter promotion and replaced it with a new offer (see below).*

There were 12 deals that expired at one point or another during March. Here’s a list of the deals that didn’t make it into April (as of April 1^st):

CIBC Investor’s Edge – Cash back promotion
Credential Direct – Cash back promotion
HSBC InvestDirect – 50 commission-free equity trades
National Bank Direct Brokerage – Cash back promotion
Qtrade Investor – Cash back promotion
RBC Direct Investing – Pay with points promotion
Scotia iTRADE – Travel points promotion
Scotia iTRADE – Transfer fee promotion
Scotia iTRADE – Visa Gift Card promotion
TD Direct Investing – 200 commission-free trade promotion
Virtual Brokers – $10,000 commission rebate offer
Virtual Brokers – 5i Research Subscription Offer

Extended Deals

No deals that were set to expire at the end of March have been extended (as of time of publication).

New Deals

*Update: April 14 – Qtrade Investor is once again offering their transfer promotion which lowers the minimum deposit amount required to qualify for covering transfer fees from $25,000 to $10,000. This is the most competitive transfer fee offer currently available from a Canadian online brokerage. See table below for more details.*

*Update: April 3 – BMO InvestorLine has introduced a very competitive cash back or commission-free trade deal for DIY investors. For deposits of at least $100,000, eligible individuals can receive either $200 cash back or 20 commission-free trades; for deposits of at least $250,000, eligible individuals can receive either $1,000 cash back or 100 commission free trades. According to the terms and conditions for this deal, the eligible account types are cash or margin (individual or joint) accounts, corporate accounts, sole proprietorship accounts, RRSP and spousal RRSP accounts.*

No new deals or promotions to report (as of time of publication).

Discount Brokerage Deals

Cash Back/Free Trade/Product Offer Promotions
Referral Promotions
Transfer Fee Promotions
Contests & Other Offers

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
	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 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 registered account at Virtual Brokers with at least A) $5,000; B) $25,000; or C) $50,000+ in new assets and you may be eligible to receive A) $30; B) $50; C) $100 cash back. Use promo code RRSPCB2017 when signing up. Be sure to read terms and conditions for full details.	A) $5,000 – $24,999 B) $25,000 – $49,999 C) $50,000+	A) $30 B) $50 C) $100	Cash back will be deposited just after October 31, 2017	RSP cash back bonus	April 30, 2017
	Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 2 months of commission-free equity trading and a $250 USD/mo credit towards Edge Trader Pro for 2 months. Use promo code 2MFREE2017 at sign up to qualify. Be sure to read full terms and conditions for details.	$5,000	2 months commission-free equity trading + $250 USD/mo platform fee rebate.	2 months	2 months free trading	April 30, 2017
	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	April 28, 2017
	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 A) $200 cash back or 20 commission-free trades; B) $1,000 cash back or 100 commission-free trades. Use promo code CASH when signing up for cash back offer or TRADES to be eligible for commission-free equity trade offer. Be sure to read the terms and conditions for more details on the offer.	A) $100,000 – $249,999 B) $249,999+	A) Cash back: $200 OR 20 commission-free trades B) Cash back: $1,000 OR 100 commission-free trades.	Cash back will be deposited the week of January 8, 2018. Commission-free equity trades are eligible for use up to August 6, 2017.	Cash back or Free trade offer	June 5, 2017
Expired Offers
	Open a new qualifying account with BMO InvestorLine, and fund it with at least A) $100,000; B) $200,000 or C) $300,000+ in net new assets and you may be eligible to receive A) $200; B) $400 or C) $750 cash back. Use promo code PROMO750 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer.	A) $100,000 – $199,999 B) $200,000 – $299,999 C) $300,000+	Cash back bonus A) $200 B) $400 C) $750	Cash back will be deposited the week of November 6, 2017.	2017 Winter Campaign Expired	April 2, 2017 Expired
Last Updated: April 22, 2017 01:00 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
	If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link.	A) $10,000 B) $50,000+	A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50)	60 days	Refer A Friend to Scotia iTrade	tbd
	If you (an existing 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, 2017
Expired Offers
	Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	30 days	none	none
Last Updated: April 1, 2017 14:30 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 $10,000 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	$10,000	Transfer Fee Rebate	May 11, 2017
	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 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	April 28, 2017
Expired Offers
Last Updated: April 14, 2017 23:30 PT

Other Promotions

Company	Brief Description	Minimum Deposit Amount Required	Details Link	Deadline
	Credential Direct has partnered with Trend Micro to offer 50% off Trend Micro Titanium Internet Security. Use code “TrendCF” at checkout.	n/a	Trend Micro Special Offer Code	none
	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
	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
	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
	Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) and you may be eligible to win a $250 gift card to the Apple store. Use promo code 250AGC2017 during sign up to be eligible. Residents of Quebec are not eligible for this contest. Be sure to read terms and conditions for full details.	$1,000 (Classic Commission Account)	$250 Apple Gift Card Draw	April 30, 2017
	Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) or $5,000 (for the Commission Free Trading Account) and you may be eligible to receive a one-year subscription to access 5i Research. Use promo code 5iVB2016 when signing up. Be sure to read terms and conditions for full details.	$1,000 (Classic Commission Account); $5,000 (Commission Free Trading Account)	5i Research Offer	March 31, 2017
Expired Offers
Last Updated: April 1, 2017 14:30 PT

Posted on March 31, 2017 by user — Leave a comment

Discount Brokerage Weekly Roundup – March 31, 2017

Even though March is over, it still doesn’t quite feel like the madness is behind us yet. Nonetheless, housing prices (in Toronto) and stock markets are still buoyant, and are managing to keep up appearances. For investors & discount brokerages, it seems the old farmer adage stands: make hay while the sun shines.

In this edition of the roundup, we look at the deals and promotions turnover set to take place across the board as we head into a new month. From there, we’ll review the latest security feature from a Canadian bank-owned discount brokerage that leverages voice biometrics. As always, we’ll look at what DIY investors had to say on Twitter and wrap up the week with a couple of interesting forum posts.

Marching Forward

After the madness of the RSP contribution season, a rally in the stock market, and rumblings of interest rate increases, it appears as if the landscape for online brokerages is due for a bit of a shakeup.

As we head into a new month, it is already clear that there will be a great deal of change on the deals & promotions front with at least six offers officially set to expire at midnight. Interestingly, deals from National Bank Direct Brokerage, CIBC Investor’s Edge and Scotia iTRADE were pulled from their websites in advance of the official calendar roll over.

The transition from March madness to April (sadness?) is not unusual. Last year, the shift from March to April saw the deal count fall 42% from 33 offers down to 19, with most of the offers disappearing from the cash back/free trade category. The deal count through March of this year reached close to 30 before pulling back slightly with the expiration of deals from Credential Direct, Qtrade Investor and HSBC InvestDirect.

One curious observation this year is that online brokerages have removed offers from their website in advance of the calendar roll over. Typically these deals last through the last day of the offer, even sticking around a few days after the deal has expired.

It’s not quite clear what this means for publication of new offers, however it seems that brokerages are being slightly more responsive than they have been previously. Also, it is curious to note that, at the time of publication, there were no longer any promotional offers or deals listed on the Scotia iTRADE special offers section. Scotia iTRADE has been staple of the deals race for a very long time, so it will be interesting to see if they populate their deals section again soon or if this is a signal of a change in strategy.

We will continue to monitor the deals & promotions section heading into April, especially since the landscape for DIY investors’ choice of promotions keeps shifting. With several ‘coming soon’ features announced by brokerages (including one described below) there may be a convenient promotion to accompany new feature releases.

List of some of the brokerages and deals expired as of March 31^st:

Virtual Brokers’ $10,000 Commission Credit Offer
National Bank Direct Brokerage Cash Back Promotion
Scotia iTRADE Winter 2017 Commission Rebate Offer
CIBC Investor’s Edge Cash Back & Free Trade Offer
TD Direct Investing 200 Commission-free Trade Offer

New Voice of Security

Whether it’s Siri, Google or Alexa, there’s no question that voice recognition is playing a greater role in the day to day lives of consumers. Now, it appears, it will do the same for DIY investors.

Voice recognition technology has typically found its way into the financial services world as a means to replace users having to push numbers on a keypad to navigate, but now it is possible for this technology to verify the identity of who’s on the line.

An announcement posted on the CIBC Investor’s Edge website indicates that voice recognition biometrics will soon be integrated into the customer service experience at one of Canada’s bank-owned online discount brokerages. Instead of fumbling about with passwords, PINs or security verification questions, individuals who are in a hurry will simply be able to rely on a ‘voiceprint’ for security authentication.

Screenshot from CIBC Investor’s Edge Website

How much time can be saved using voice biometric login? Quite a bit, it seems. A recent study of voiceprint-based biometric authentication from Citibank’s Asian Pacific region found that the average time to validate a client’s identity dropped from 45 seconds to 15 seconds using this new technology. In a world where user experience online demands web pages load in fractions of a second, it’s easy to see why making the case to shave the telephone authentication experience down makes sense.

Another improvement to the telephone experience CIBC Investors Edge users will enjoy is being able to schedule a call back instead of waiting on hold.

Granted, it seems like a small improvement, but for impatient traders or investors who would rather listen to the market news instead of hold music (or hold commercials), the call back feature is a godsend and will make scenarios like the one mentioned above a thing of the past. Of course, while call backs are preferable, how long it takes for an agent to call back is another matter entirely.

The announcement page for this new feature also has compiled a useful list of questions, including what should happen if voice authentication does not work or does not allow a user in.

This latest feature announcement, while not revolutionary, is still evolutionary and helps to exemplify that the bigger bank-owned discount brokerages are not standing still when it comes to innovation. When it comes to deciding on how to improve consumer experience as an online brokerage, this one seems to be a good call.

Discount Brokerage Tweets of the Week

If there’s a rule to social media and discount brokerages, it’s that when things break, you’ll hear about it on Twitter. Mentioned this week were BMO InvestorLine, Disnat, Questrade, Scotia iTRADE, TD Direct Investing & Virtual Brokers.

From the Forums

Conversion Factor

DIY investors are always on the lookout for a good deal. In this post, from reddit’s Personal Finance Canada, one DIY investor looking for a better way to convert between USD & CAD found a good tip to consider at a popular online brokerage.

Qtrade vs Questrade

Without meaning to, the Q-named Canadian discount brokerages are often mistaken for one another. In this post, however, one user had narrowed the field down to choosing between Qtrade Investor and Questrade. More instructive, however, is the response on this channel that Questrade managed to provide.

Into the Close

That does it for another week in the markets. Assuming that nothing totally crazy happens on Twitter this weekend, enjoy April Fool’s Day, the start of spring training and celebrating the successful launch (and return) of the SpaceX rocket. For a head start on April Fool’s pranks, here’s a fun rundown of them.

Posted on March 24, 2017 by user — Leave a comment

Discount Brokerage Weekly Roundup – March 24, 2017

Investor’s know that when it comes to investing, there’s generally no such thing as a sure thing. In a week where there was so much going on, it was curious to see those that were convinced of a done deal (aka repeal & replace) come undone at the seams and those that were convinced of the worst (i.e. a capital gains tax hike) not see it come through.

This week’s roundup is chalked full of goodies courtesy of the federal budget and a handful of Canadian discount brokerages who’ve supplied investors with some interesting analysis and overviews of important changes for DIY investors to take note of. While the budget dominated the headlines, the next big story covered in the roundup looks at an interesting ‘blip’ on the radar from one of Canada’s largest online brokerages and how this might change the toolbox for younger DIY investors. From there we’ll scan through the latest tweets and DIY investor forum posts to see what investors and brokerages were talking about.

Budgetpalooza

This week, the highly anticipated federal budget was announced and it was maybe more of a surprise because of what it didn’t contain than for what it did.

Canadian DIY investors and pundits breathed a collective sigh of relieve when it was clear that the capital gains exemption rate would be left untouched at the current 50% rate.

Even though many experts describe the budget as a ‘business as usual’ move, it nonetheless weighed in at over 200 pages and did contain a number of nuggets that investors will need to pay attention to. Of course, like just about everything related to DIY investing, getting a full view of what the budget changes may mean requires quite a bit of reading and researching different sources.

Fortunately for DIY investors, there are couple of resources from Canadian online brokerages that can help make sense of the budget from an investor’s point of view.

We’ve identified three discount brokerages who’ve put together some useful resources related to this most recent budget announcement that DIY investors may want to pay closer attention to: Desjardins Online Brokerage, BMO InvestorLine (via BMO Wealth Management) and CIBC Investor’s Edge.

Here’s a quick overview of each source and what information that DIY investors might find most useful.

Budget 2017 Review: Desjardins Online Brokerage

Starting first with Desjardins Online Brokerage, who managed to pull together very good summaries of the budget very quickly. Their budget coverage included an ultra quick read/summary of some highlights of the budget including:

Access to the Canada Learning Bond (CLB)
Anti-avoidance rules applicable to registered plans
Phasing out the Canada Savings Bond Program
Consolidation of caregiver credits
Tuition tax credit
Tax credit for transit
Capital gain inclusion rate in computing income

None of these topics was explored in detail in the summary, but to provide added depth – especially from an economic perspective, there was also a budget analysis audio cast (great for listening on the road or treadmill) and PDF report. This report would be of interest to DIY investors who want take a ‘macro’ look at the possible impact of the budget on the Canadian economy.

Budget 2017 Review: BMO InvestorLine (BMO Wealth Management)

The BMO Wealth Management budget overview provided by BMO InvestorLine offered clients a detailed explanation of key changes in the budget that was particularly strong in highlighting a few changes that can impact DIY investors. In addition to the detailed article, there was a video interview (shown below) that provided a recap.

On a side note, the content/digital marketing efforts of the Canadian financial institutions are starting to ramp up (this is probably another topic for another day, but feel free to drop us a note if you want to chat about it!)

Some points of interest from the BMO Wealth Management 2017 budget overview were:

the detailed explanations on Anti-avoidance rules which are of importance to investors with RESPs or those thinking about using a DIY investor account for an RESP
timing of recognition of gains & losses for derivatives which should be important for advanced DIY options traders/investors to review
tax incentives for investors of flow-through entities (related to mineral exploration).

Budget 2017 Review: CIBC Investor’s Edge

The budget overview from CIBC Investor’s Edge consists of two parts. The first, a document prepared by tax and estate planning experts Jamie Golombek and Debbie Pearl-Weinberg, was a somewhat detailed look at key components of the budget that could impact individuals and small business owners.

This document covered quite a bit of ground but was nonetheless very readable. The most salient points for DIY investors included had some good explanations of rules impacting RESPs/RDSPs and a very good example of the changes to timing of recognition of gains and losses for derivatives – a must read for options traders.

In addition to their overview document, there will be a webinar presented by Jamie Golombek, scheduled for Wednesday March 29^th from 12pm – 1pm ET, which will cover:

tax filing tips
splitting investment income with family members
Investing in RRSPs or TFSAs vs paying off debt
Donation strategies for investors

As this is investor focused content, it will likely provide some additional depth and colour to the points DIY investors are likely to encounter when tax planning.

Other brokerages

Although not directly from TD Direct Investing, the Money Talks series produced by TD provided some investor-focused budget content in video format and TD Economics put together a brief analysis of the budget from a ‘macro’ perspective.

The five minute-ish Money Talks video touched very briefly on several topics related to the budget, including what didn’t happen this budget. The big takeaway from this video was to talk to a tax/investment advisor for more guidance.

You’ve got a fund in me

It’s not often these days that DIY investors get to hear about mutual funds. In fact, when looking back at the past few years of investor education events, there haven’t been many (daresay any) of educational events for DIY investors from Canadian discount brokerages that specifically dealt with mutual funds.

That changed this week as TD Direct Investing held a webinar on mutual funds that appeared to coincide with the release of TD Managed ETF Portfolios (which are available as D-series mutual funds).

On the surface, it appears that DIY investors (especially those with modest portfolio sizes) who are looking for a convenient, cheap(ish) option for getting diversified exposure for their investment could be in luck. For a very good overview of what’s under the hood on the new offer, especially the finer point of these funds having an actively managed component, check out the Canadian Couch Potato article here.

In addition to the new product angle, what was most interesting about the TD Direct Investing webinar we reviewed this week was that the webinar appeared to provide only a partial view of the full landscape of mutual fund choices available to DIY investors who are with TD Direct Investing.

Specifically, there was no mention of the TD e-Series funds during the presentation even during the discussion of funds that could be accessed by DIY investors. Given the popularity of the TD e-Series funds with DIY investors and those that presumably would also be interested in the new D-Series funds, it was a very curious choice to omit.

Nonetheless, the combination of a webinar topic on mutual funds, especially those marketed to DIY investors, as well as the launch of a new DIY-focused set of mutual funds that have earned cautious praise from an influential voice in the Canadian DIY investing, signal a potentially interesting development across the industry.

Challenged by robo-advisors on the one hand and the trend towards passive (and ETF investing) on the other, bringing back the mutual fund into the DIY investor tool box is something other larger players might also try to get behind.

While it may not be the ‘cheapest’ option for DIY investors, these new mutual funds may gain traction because of perceived value. Specifically, for younger or less experienced investors, that value lever is convenience, something bank-owned discount brokerages such as TD Direct Investing know just as good as any firm how to sell.

Discount Brokerage Tweets of the Week

March madness was in full effect – and it wasn’t just basketball either. Mentioned this week were CIBC Investor’s Edge, Questrade (a lot!), Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

The Waiting Game

Does transferring to or from a discount brokerage really have to be so painful? Transfers happen all the time, however the internet is littered with horror stories from DIY investors who’ve had things go off the rails when trying to get into or out of an online brokerage account. Find out from this post what one investor had to go through when trying to transfer into a popular discount brokerage.

Into the Close

Investors have had a lot to chew on this week. Fortunately, spring is officially here, so here’s to thinking about warmer weather. In the meantime, hockey fans enjoy the race to the playoffs (for those who are still in it) and best of luck ducking the political drama this weekend!

Posted on March 10, 2017 by user — Leave a comment

Discount Brokerage Weekly Roundup – March 10, 2017

For many families, the reality of March break is about to set in. What it means is that, while there may be a change in pace, the word ‘break’ doesn’t quite mean the same to the parents as it does to the kids. Unfortunately for everyone though, there is no break from the mania that is Trump coverage. And, for online brokerages and DIY investors in the US and possibly here in Canada, there is the very real possibility that there are still more waves to be made when it comes to DIY investing.

In this week’s roundup, we recap a couple of interesting stories from the SparxTrading blog roll. Specifically, we look at the escalating commission-fee price war between major US online brokerages, the evolving regulatory landscape for investment product/service providers and how these events may shape Canadian DIY investing in the near term. Next, we look at how Canadian discount brokerages are approaching online security and what DIY investors should be doing to better protect themselves online. As is usual fare, we’ll also be looking at the tweets from DIY investors and close out with chatter from the Canadian investor forums.

Fee-ling the Pinch: US Online Brokerage Fee Wars and the Fiduciary Duty Rule

Turn on the TV, surf the internet, open a newspaper and the one thing dominating the news cycle is Trump. For DIY investors, in the US and potentially here in Canada, however, there are a pair of stories that are probably worth tuning into more closely.

In this week’s blog post, we examine the latest explosive fight between giants in the online brokerage space in the US and the fallout from a price war. But there’s more to the story than just a simple race to the bottom. There’s also the likely possibility that the largest players, such as Schwab, smell blood and sense an opportunity to gain ground on their much smaller (but still sizable) peers.

Here’s a quick recap. US online brokerage fees and commissions have been on the chopping block since last year, in part prompted by competitive dynamics and the announcement from the Department of Labor’s new fiduciary duty rule, which was slated to come in to effect next month, in April. That rule could bring financial advisors into conflict of interest with their clients as it sets higher standards demanding advisors act in the best interest of their clients and not their own or their firm’s.

The tumble in commissions and fees for the biggest asset management firms such as Fidelity, Blackrock, Vanguard and Schwab also impacted their stock prices. Stock prices have waivered since the fees war escalated, and new EPS estimates were impacted by the millions lost in fees from cost cuts hovering at the 30% mark in plenty of cases.

Fidelity, for example, dropped its online stock trading fees by a whopping $3, costs sit now at $4.95/trade. And a few days ago, Schwab lowered its base trade commission to match Fidelity after already lowering its prices in February; other brokerages have followed suit including TD Ameritrade and E*Trade Financial. Firms are saying the price wars are just part of doing business, but Blackrock, at least, acknowledged that their fees were dropping in response to the DOL’s impending fiduciary rule.

For Canadian DIY investors, and discount brokerages, there are several important lessons.

First, Canadian Securities Administrators (CSA) are considering setting similar standards for financial advisors here in Canada. While there is a lack of consensus between provincial regulators as to exactly what a ‘best interest standard’ would look like, recent admissions by TD Bank staff that they put profits and performance ahead of client best interests may accelerate the timetable and will to push these standards into being.

Second, larger online brokerage players are in a very strategic position to benefit from this rule and they can essentially force smaller online brokerages into a very challenging position by lowering standard commission pricing. In other words, the US online brokerage market is an interesting playbook for any large, competitive bank-owned brokerage to emulate.

Finally, although the US and Canadian markets may be different, there are still fundamental economic forces at play. Canadian DIY investors will, like their US investor counterparts, be drawn to better perceived value. One of the reasons Schwab has been able to withstand (and in some cases instigate) a fee drop is because beyond lowering commissions on trading, they’ve also expanded the selection of commission-free ETFs, introduced a robo-advisor service and provided other advisory services to clients.

For the full analysis on how the fee wars and regulatory shifts could influence the Canadian online brokerage marketplace, click to read the blog here.

Online Security for Canadian DIY Investors: How to Stay Safe While Trading Online

As part of Fraud Awareness Month, we continue our look into how DIY investors can better inform and protect themselves about online fraud when trading online.

In our most recent blog post, we take a deeper dive into the world of online brokerage security guarantees and what they do (or don’t) cover and what they require DIY investors to do to qualify.

Fraud is kind of a big deal

Fraud has grown to epic proportions in the last decade, becoming a local, national and international security concern. Worldwide costs of cybercrime are estimated to run between $375 billion and $575 billion annually. In Canada, recent survey results show that companies here lose an average of about $6 million with every data breach.

For Canadian discount brokerages, there hasn’t been any major public, large scale breach that’s made headlines. Rather than become a news story, however, the financial services industry has started – albeit slowly – to adopt a variety of good practices to keeping clients safe. One such approach that is favoured by many in the tech community is two factor authentication (TFA).

Two factor authentication essentially ads an extra step to the traditional user name and login in which a security code (or secondary ID source) is used to confirm identity. Interestingly, only a handful of Canadian discount brokerages do offer this, but it is increasingly getting attention from IT departments across the Canadian brokerage community as a feature which could offer a more robust approach to security.

Details matter

Like most insurance policies, the devil is in the details. For Canadian online brokerages offering up a security guarantee, we found it particularly interesting that there were many different approaches and instructions given to DIY investors regarding online security.

Aside from some of the more well-known preventative measures, such as not sharing a password with another person or using a public computer to log into a trading account, there were other measures, such as ensuring you have an up to date anti-virus, logging out after every session AND closing the browser or sharing a password with an account aggregator (such as Mint) that could invalidate the security guarantee.

Perhaps the best suggestion to address possible fraud is to regularly and frequently check account status for any suspicious activity. Discount brokerages, such as BMO InvestorLine and RBC Direct Investing, stipulate that clients must report a breach within five business days of receiving a monthly statement. For the buy and hold crowd, this means taking the effort every month to check what’s happened on every statement.

The biggest takeaway from looking at the different online security guarantees offered by Canadian discount brokerages is that the brokerages do put quite a bit of responsibility for security on clients themselves so if the security guarantee is a ‘selling point’ for any brokerage, make the effort to check what’s required to comply before getting going.

Discount Brokerage Tweets of the Week

The conversation on Twitter this week highlighted the special role that it plays as a customer service tool for DIY investors. Mentioned this week were BMO InvestorLine, CIBC Investor’s Edge, Questrade, Scotia iTRADE & TD Direct Investing.

From the Forums

Hard lessons

Some good advice we could all heed out of the forums this week: “Never bet with money you’ll regret losing” sent out to one young investor who lost $6K in the past year with risky investments . . . hopefully a lesson you only learn to learn once . . .

ETF or e-Series

The ever-popular debate continues for DIY investors looking to stretch the most value out of their investment dollar. In this post from RedFlagDeals’ investing forum, users chime in on whether TD e-series or Questrade’s commission-free ETF buying would be the better bet.

Into the Close

Another sure sign of spring being just around the corner: losing an hour of sleep for daylight savings ending. For the traders out there it just means one less hour to wait to get back into the swing of things. Have a great (shortened) weekend!

Posted on March 10, 2017 by user — Leave a comment

Online Security for Canadian DIY Investors: How to Stay Safe While Trading Online

Data breaches, fraudulent activity, and online tricks and traps are all around us. It happens so often we’ve dubbed March fraud month to raise awareness of the growing issues. In fact, we’ve got enough to say about it that we’ve broken up this article into two parts. Part one looks at two factor authentication (TFA) and your responsibilities as a DIY investor. Part two examines investor confidence and how you can check to be sure your advisor is trustworthy, accredited and competent. To cap things off, we’ve also included some handy resources at the end of Part one.

Online brokerage security agreements: a handshake

First things first: don’t freak out. Despite the multitude of risks and negative headlines concerning online activity, there’s plenty of security, and lots you can do to ensure your online brokerage account is safe and secure.

That said, what DIY investors cannot do is stay complacent, or just assume that an online brokerage is either solely responsible for online account security or necessarily doing all it could to keep investment safe. Just like learning about how to choose investments comes with the territory of investing online, going the DIY investor route also requires learning enough about technology and online security to ensure that access to your trading account is as safe as is reasonably possible.

While online brokerages may have regulatory compliance standards in place that ensure a minimum level of security, investors (i.e. online brokerage clients) must also take steps to keep up too.

It’s a handshake agreement between you and your online brokerage that only works when you both maintain a steady grip.

Internet security: conditions apply

The good news for DIY investors is that most Canadian discount brokerages have a security agreement of one kind or another, offering a “100% security guarantee.”

Those agreements, however, have stipulations that depend on a DIY investor maintaining good security practices, which begs the question, what strings are attached to the ‘100% security guarantee?’

Most guarantees offered by Canadian discount brokerages are limited to “direct losses” in your online brokerage account that come about from “unauthorized” activity. At the very least that means they likely won’t cover losses that occur if you allow someone to use your account and then that person cleans you out. Also, most online brokerage security guarantees say that you must adhere to the conditions they have placed on your end. That might include installing up-to-date software such as firewalls and frequent passcode changes, among other conditions. The bottom line: Learn them. Know them. Do them.

Meet security conditions if you want losses reimbursed

Online security conditions vary among online brokerages, so be sure to check yours out—and carefully.

Here are some common concerns:

Use a unique user name and password that you change frequently. But how often is that? Not as often as you might think. A UNC-Chapel Hill study showed that people tend to create new passwords out of old ones, thus making the new one as easy to breach as the previous one. Lifehacker argues that hackers run hardware and software full-time to crack user names and passcodes and frequently changing a password isn’t going to stop them. And Mark Burnett, author of Perfect Passwords, told Wired that it’s enough to change your password every six months to one year . . . if you use one that’s 16 to 20 characters long.
Install a firewall. A firewall is like a security guard at the door to the building, checking the list for who goes in and who goes out. Of course, to add to the confusion, one of the go-to diagnostics for connectivity troubles for many trading software platforms is to disable a firewall to verify if that interferes with connecting.
Ensure your browser uses 128-bit or even 256-bit encryption—and has its own firewall. Some brokerage agreements demand it.
Protect your wireless network and internet connection from hacking by using a strong password.
Install the latest anti-spyware and anti-virus software.

These aren’t anywhere near all the conditions that you might have to meet for your internet security guarantee to kick in. And, in most cases, whether you have met the required conditions is determined by the online brokerage, not you. So, you might want to track things like how often you change your password and, at a minimum, regularly check your account (even if you’re a passive investor) to ensure no irregular account activity is taking place.

Ultimately, account security is a two-way street, and you might want to ask your online brokerage if their security system is the best it could be. More and more companies online are turning to two factor authentication, aka 2fa or TFA, as data breaches and fraud become only more prevalent.

Online brokerages: how they keep your online accounts secure

Of 14 Canadian online brokerages, three currently offer two factor authentication (TFA) including BMO InvestorLine, Interactive Brokers and HSBC Invest Direct. But what is TFA, anyway, and does it matter to have it as part of your log in system at your online brokerage? Well, the short answer might be, how much do you care about your money and investments?

Two factor authentication (TFA): the way of the future?

If you don’t know already, two factor authentication (TFA) requires two steps, or factors, as part of the authentication process when you access your account.

The first step is your username and password. The second step is either a physical token (like your debit card) or a PIN. The PIN is usually sent to you via your cell phone when you enter your user name and password. You can see it’s a pretty secure approach since only you (presumably) have your phone with you, and only you know your username and password.

The 11 online brokerages that currently do not use this system have other, multiple levels of security. These include 128-bit or even 256-bit encryption, multiple firewalls, anti-virus software, internal protocols and constant electronic monitoring, among other measures. Thought hackers get better all the time, two factor authentication (TFA) may be the best security around right now.

DIY investors and regulatory agencies call for increased vigilance as data breaches escalate

Data breaches cost Canadian companies an average of $6.03M every time they occur according to The Ponemon Institute, and Blackberry estimates that total costs for Canadian companies will reach $23B by 2019.[i]

And, like most costs, those losses are eventually passed on to consumers. Canada’s regulatory agencies are also weighing in on the matter. The Investment Industry Regulatory Organization of Canada (IIROC) itself the victim of a data breach in 2013[ii] offers a cybersecurity report card to its member organizations.[iii]

As well, the Mutual Fund Dealers Association of Canada (MFDA) offers a 4-part toolkit that investors can use as a guide including checking out your advisor and the organization to see if either has been litigated against.

Costs alone may lead to two factor authentication (TFA) become more widely used, as losses from data breaches or hacking can be fantastic. While industry certainly has financial motive to prevent exploits, DIY investors are making their thoughts on the matter heard too.

In 2016, for example, Redditors had a vigorous debate over security at a popular online brokerage, Questrade. One redditor commented, “I think this should be a higher priority than their many website facelifts of recent months.”

As they often do on the DIY investing forums, John, a support representative from Questrade, responded: “I can confirm that we have moved beyond the investigation phase and are working on a two-factor authentication solution. We will be announcing more details as the project progresses.”

If your DIY investor account is breached, act fast

In the event your account is compromised, there are several things that will need to be done relatively quickly to qualify for coverage of an online brokerage security guarantee.

Here are a few:

Notify your online brokerage immediately.
Change all passwords immediately.
Determine what data has been breached.
Contact all credit reporting agencies.
Put stops on all your credit cards.

DIY investor takeaways

Although most Canadian online brokerages do offer guarantees protecting investors from unauthorized access, the fine print of what clients must do often varies from brokerage to brokerage. It is therefore important to ensure that you comply with your discount brokerage’s specific conditions to have the guarantee apply.

Finally, here’s a list of a few extra resources to help boost online fraud awareness.

Are you susceptible to fraud, security breaches and online vulnerability?

DIY Investor check: take this quiz to see how vulnerable you could be to an investment scam
Get smarter about money with http://www.getsmarteraboutmoney.ca/en/life-events/preventing-fraud/Pages/default.aspx#.WLNQ9Bwn9xU
Check out this four-part toolkit from the MFDA and take the quick quiz to check your knowledge on fraud.
Investment Industry Regulatory Organization of Canada (IIROC) resource on fraud protection — they have also produced a cybersecurity report. Using this report, member firms can ensure they are up-to-date with online security measures.

Sources:

[i] Sagan, A. (2016, June 29). Average cost of data breach in Canada is $6.03M: study. Retrieved from http://globalnews.ca/news/2793414/average-cost-of-data-breach-in-canada-is-6-03m-study/

[ii] The IIROC lost financial information for 52,000 clients involving 32 investment firms when a laptop went missing in February, 2013. IIROC. (2016). IIROC to support clients whose personal information was on a lost portable device [Press release]. Retrieved from http://www.iiroc.ca/Documents/2013/d8d465f9-0a37-4325-8732-1b12cbd2ddb8_en.pdf

[iii] IIROC. (2016). IIROC issues cybersecurity report cards for dealer firms [Press release]. Retrieved from http://www.iiroc.ca/Documents/2016/8272fe2a-a1a5-4319-9b0c-7739d04ff097_en.pdf

Posted on March 3, 2017 by user — Leave a comment

Discount Brokerage Weekly Roundup – March 3, 2017

Crazy real estate, crazy IPOs, crazy politics, crazy Oscars, crazy Amazon outages and one very crazy sprint to the RRSP contribution deadline. Not a bad way to ring in the third month of 2017. There’s certainly no shortage of items pulling DIY investors’ attention in every direction this past week and perhaps no coincidence that Canadian discount brokerages are trying to capitalize on the increased attention investors are paying to the market by making some ‘bigly’ moves of their own.

In this week’s roundup we take a look at the latest collection of discount brokerage deals that DIY investors can choose from and how different brokerages are working to stay on the radar of those investors. Next we take a look at the big news story for investors – the Snapchat IPO and whether investors will be over it or all over it. From there we take a look at the latest online brokerage tweets of the week as well as a couple of interesting posts from the investor forums.

New Deals Roundup

With stock markets flirting with new all-time highs, investor sentiment towards getting into the markets has clearly thawed. Investment capital is flowing again and there’s no better indicator of that than the excitement and hype that was the ‘snapchat’ IPO. Another interesting indicator, however, is the number of Canadian discount brokerages offering up promotions or deals.

Heading into the new month, almost all Canadian discount brokerages, with the exception of two (Interactive Brokers Canada and Laurentian Bank Discount Brokerage) are offering some kind of incentive offer to attract new clients or new assets from existing clients. In total, we’ve spotted 30 deals that are being actively advertised or publicly promoted.

Breakdown of Canadian discount brokerage deals for March 2017.

While most brokerages offer up the standard transfer fee coverage, this category of deal makes up roughly one third of the offers out there. The rest are a mixture of commission rebate offers, cash back promotions or some other kind of promo.

Although no new deals technically hit the wires at the outset of the month, there was some activity in the final days of February which helped put a little spring in the step of the deals activity heading into March.

The good news from two brokerages came in the form of deal extensions. Both Qtrade Investor and Desjardins Online Brokerage extended their offers a little further into 2017. In the case of Qtrade Investor, their cash back offer was extended to mid-March. For Desjardins Online Brokerage, their popular 1% commission-rebate offer has been extended out to almost the end of April (April 28^th).

Scotia iTRADE was the other Canadian discount brokerage to ramp up the deals activity with the launch of their VISA gift card offer that coincided with the launch of their new front-facing website. The deal itself offers between $50 and $500 for deposits ranging from $25,000 to $1,000,000+.

Overall, Virtual Brokers is leading the pack with six different offers in play followed by Scotia iTRADE which is now offering up five. Interestingly, the Scotia iTRADE site special offers section currently is displaying only two offers, however links to the deals (shown in the deals & promotions section tables) do point to the live offer pages.

As we head further into March, however, it won’t be just the number of deals that makes the difference but also the visibility of those offers.

TD Direct Investing, for example, does not have as many deals going as their peers but has increased their advertising presence – including front page newspaper ads and increased online advertising – in a bid to get their deal or brokerage noticed. It will be interesting to see how their counterparts, such as RBC Direct Investing who doesn’t have a commission-free or cash back offer (they do have a ‘points’ related offer for existing RBC clients) or CIBC Investor’s Edge (who does have a very competitive offer) elect to respond in the sprint to income tax refund season.

From the Blog: Oh SNAP! An IPO like no other?

It may have taken a couple years to get here, but the biggest threat to Facebook’s dominance in the social media space successfully IPO’d this past week and now has a market cap of $34B US. From a startup in 2010 to public company in 2017, Snapchat – or more formally Snap Inc, debuted on Thursday to a very warm reception.

Screenshot from the opening of SNAP at NYSE.

Despite all of the hype leading up to the IPO, there were lots of investors – mainstream investors in particular – that had to wait until shares went live on the open market in order to get a piece of the action.

Only time will tell if this millennial phenom can sustain the imagination of investors, advertisers and the very fickle user base of younger technophiles.

In a blog post this week, we took a look at the lead up to the Snapchat IPO and add a bit more colour to a story that is bound to have investors of all ages debating whether SNAP is a hit or is just hype. Click here to read more.

Fraud Prevention Month

March is the official month of fraud awareness and prevention. For DIY investors, the world of investing can be a dangerous place. From ‘hot tips’ to the threats of being hacked, there are numerous risks that all investors would be wise to understand and properly prepare for.

Stay tuned this week as we launch an interesting comparison of the different fraud protection measures currently in place at Canadian discount brokerages and what DIY investors can do to better protect themselves against fraud – including evaluating the security of their online brokerage.

Discount Brokerage Tweets of the Week

Lots of chatter as DIY investors slid into the RRSP contribution deadline this week. Mentioned were BMO InvestorLine, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Closing time

Break ups are hard. But for one DIY investor, who chronicled their exit from Virtual Brokers, the process was not as simple as it seemed. Click here to read the reddit post on how it all went down.

Down to the Wire

The procrastinators for RRSP contribution deadlines might be able to relate to this post from reddit’s Personal Finance Canada section. One user who was close to the deadline was looking for a quick route to open an online brokerage account for an RRSP and was considering Questrade but was up against a few hurdles for just how long it would take to get funded. Read on to find out the play by play heading into the contribution deadline.

Into the Close

Well if there was one lesson from this week, it’s to expect the unexpected. Good tip for traders heading into the weekend as chatter of interest rates and more fallout from scandals from the US await. So, on that note, have a great weekend and for a bit of schadenfreude, here’s that Oscar moment that is so hard to watch but so hard not to.

Posted on March 2, 2017 by user — Leave a comment

Discount Brokerage Deals & Promotions – March 2017

March is finally here. With the promise of spring ahead of us and the RSP deadline now behind us, attention is going to shift to tax season and where, how and with whom those refunds will be invested. The great news for DIY investors is that there are still lots of promotional offers to choose from when looking at potential Canadian discount brokerage deals, so there’s no shortage of options.

This month we kick off with a whopping 29 offers from 13 different discount brokerages. Almost all Canadian discount brokers have some kind of promotional offer (except for Interactive Brokers), even if it is just a simple transfer fee coverage offer. Like all good things, however, several of the discount brokerage deals offered this month have a particularly short shelf life expiring during or at the end of March. So, while it has been possible to see what offers might have launched through the RSP deadline, there’s a good probability that many of these deals won’t be around for the rest of the year or even until next year.

Read on to get the full breakdown of expired, extended and new offers to hit the tape this month. Of course if there are any offers that you spot or know of that other DIY investors would find useful, let us know in the comments section below.

Expired Deals

After having received a minor extension to meet the RSP contribution deadline, the RBC Direct Investing Rewards points offer officially expired on March 1^st.

Extended Deals

There’s nothing like the word ‘extension’ to put a smile on the faces of procrastinators everywhere. Fortunately, two offers managed to stick around just a little while longer.

The first extension is from Desjardins Online Brokerage who extended their commission rebate offer through to April 28^th. Next, Qtrade Investor extended their cash back offering until March 15^th. See the table below for more details.

New Deals

Rolling into the new month, there were technically no new offers announced at the very start of March. In late February, however, Scotia iTRADE launched a new Visa card (cash back) deal that coincided with the launch of their new website. Although the offer itself didn’t appear in the promotions section at the time of writing, the link to the offer was live on their site.

Visa card values range from $50 to $500 for deposits that range from $25,000 to $1,000,000+. See table below for more details.

Discount Brokerage Deals

Cash Back/Free Trade/Product Offer Promotions
Referral Promotions
Transfer Fee Promotions
Contests & Other Offers

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
	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 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 registered account at Virtual Brokers with at least A) $5,000; B) $25,000; or C) $50,000+ in new assets and you may be eligible to receive A) $30; B) $50; C) $100 cash back. Use promo code RRSPCB2017 when signing up. Be sure to read terms and conditions for full details.	A) $5,000 – $24,999 B) $25,000 – $49,999 C) $50,000+	A) $30 B) $50 C) $100	Cash back will be deposited just after October 31, 2017	RSP cash back bonus	April 30, 2017
	Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 2 months of commission-free equity trading and a $250 USD/mo credit towards Edge Trader Pro for 2 months. Use promo code 2MFREE2017 at sign up to qualify. Be sure to read full terms and conditions for details.	$5,000	2 months commission-free equity trading + $250 USD/mo platform fee rebate.	2 months	2 months free trading	April 30, 2017
	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	April 28, 2017
	Open and fund a new account with Virtual Brokers with at least $10,000 and you may be eligible to receive a commission-credit of up to $10,000. Use promo code 10K2017 at sign up to qualify. Be sure to read terms and conditions for full details.	$10,000	Up to $10,000 in commission credits (@ $9.95 per trade)	deadline to use trades March 31, 2017. Commission rebates to be offered in January 2018.	$10,000 Commission Credit Offer	March 31, 2017
	Open and fund a new account by March 31st with at least A) $20,000 or B) $100,00+ and you may qualify to receive up to either A) $500 or B) $1000 in commission reimbursements. Be sure to read terms and conditions for full offer details.	A) $20,000 – $99,999 B) $100,000+	A) up to $500 commission reimbursements B) up to $1000 commission reimbursements	90 days	National Bank Direct Brokerage Cash Back Promotion	March 31, 2017
	Open and fund a new account at TD Direct Investing with at least A) $25,000; B) $50,000 or C) $100,000+ and you may be eligible to receive A) 50; B) 100 or C) 200 commission-free trades. Be sure to read terms and conditions for full offer details	A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000+	A) 50 commission-free trades (max value: $500) B) 100 commission-free trades (max value: $1000) C) 200 commission-free trades (max value: $2000)	April 28th, 2017 Commission charges will be credited the month following when the charge was incurred.	TD Direct Investing 200 Commission-free Trade Offer	March 31, 2017
	Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,000 or D) $250,000+ and you may be eligible to receive A) 75; B) 150; C) 200 or D) $250,000+ in commission-free trades. In addition, new clients will also receive FlightDesk active trading platform free for 90 days. Use promo code W17FT when signing up to be eligible. Be sure to read terms and conditions for full details.	A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000+	A) 75 (max value: $749.25) B) 150 (max value: $1498.50) C) 200 (max value: $1,998) D) 250 (max value: $2,497.50)	90 days	Winter 2017 Free Trade Offer	March 31, 2017
	Open and fund a new account at CIBC Investor’s Edge with at least A) $50,000 or B) $100,000 and you may be eligible to receive A) $200 or B) $400 in cash back. Also, individuals who setup a regular investment plan may also be eligible to receive 50 commission-free equity trades. Be sure to read terms and conditions for more information.	A) $50,000 – $99,999 B) $100,000+	A) $200 B) $400 +Bonus 50 commission-free trades for setting up Regular Investment Plan.	Cash back will be deposited within 30 business days after account funding. Commission-free equity trades good for 60 days after setup of Regular Investment Plan.	Cash Back & Free Trade Offer	March 31, 2017
	Open a new qualifying account with BMO InvestorLine, and fund it with at least A) $100,000; B) $200,000 or C) $300,000+ in net new assets and you may be eligible to receive A) $200; B) $400 or C) $750 cash back. Use promo code PROMO750 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer.	A) $100,000 – $199,999 B) $200,000 – $299,999 C) $300,000+	Cash back bonus A) $200 B) $400 C) $750	Cash back will be deposited the week of November 6, 2017.	2017 Winter Campaign	April 2, 2017
Expired Offers
	Open a new account with HSBC InvestDirect and you may be eligible to receive up to 50 commission-free North American equity trades. Be sure to read terms and conditions for full offer details.	n/a	50 commission-free North American equity trades	60 days	HSBC InvestDirect Cash Bonus Promo	March 3, 2017
	Open and fund a new account with Qtrade Investor with a deposit of at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1,000,000 or more and you may be eligible to receive a cash back bonus of A) $25; B) $50; C) $100; D) $250; E) $500 or F) $1,000. Be sure to read terms and conditions for full details.	A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+	A) $25 B) $50 C) $100 D) $250 E) $500 F) $1,000	Cash back will be deposited by July 31, 2017.	Qtrade Investor Cash Back Bonus	March 15, 2017
	Open and fund a new account or fund an existing account at Credential Direct with at least A) $15,000; B) $50,000; C) $150,000; D) $500,000 or E) $1,000,000+ in new assets and you may be eligible to receive A) $75; B) $125; C) $200; D) $500 or E) $1,000. Use promo code CASH2017RSP when signing up. As an added bonus, Credential Direct will donate an amount equivalent to 10% of the bonus paid out to United Way. Be sure to read terms and conditions for full details.	A) $15,000 – $49,999 B) $50,000 – $149,999 C) $150,000 – $499,999 D) $500,000 – $999,999 E) 1,000,000+	A) $75 B) $125 C) $200 D) $500 E) $1,000	Cash back will be deposited week of October 9, 2017.	Credential Direct Cash Back Promotion	March 16, 2017
Last Updated: Mar. 17, 2017 17:35 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
	If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link.	A) $10,000 B) $50,000+	A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50)	60 days	Refer A Friend to Scotia iTrade	tbd
	If you (an existing 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, 2017
Expired Offers
	Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	30 days	none	none
Last Updated: Mar. 2, 2017 00:15 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 $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
	Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees	$135	$25,000	Transfer Fee Rebate	none
	Disnat 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	April 28, 2017
Expired Offers
Last Updated: Mar. 2, 2017 00:25PT

Other Promotions

Company	Brief Description	Minimum Deposit Amount Required	Details Link	Deadline
	Credential Direct has partnered with Trend Micro to offer 50% off Trend Micro Titanium Internet Security. Use code “TrendCF” at checkout.	n/a	Trend Micro Special Offer Code	none
	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
	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
	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
	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) $1,000,000+ and you may be eligible to receive 50 commission-free trades plus A) 5,000; B) 7,500; C) 15,000 or D) 20,000; E) 25,000 or F) 50,000 travel points on an eligible Scotia travel points credit card. In addition, new clients will also receive FlightDesk active trading platform free for 90 days. Use promo code W17RP when signing up to be eligible. Be sure to read terms and conditions for full details.	A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+	Scotia reward points offer	March 31, 2017
	Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) and you may be eligible to win a $250 gift card to the Apple store. Use promo code 250AGC2017 during sign up to be eligible. Residents of Quebec are not eligible for this contest. Be sure to read terms and conditions for full details.	$1,000 (Classic Commission Account)	$250 Apple Gift Card Draw	April 30, 2017
	Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) or $5,000 (for the Commission Free Trading Account) and you may be eligible to receive a one-year subscription to access 5i Research. Use promo code 5iVB2016 when signing up. Be sure to read terms and conditions for full details.	$1,000 (Classic Commission Account); $5,000 (Commission Free Trading Account)	5i Research Offer	March 31, 2017
Expired Offers
Last Updated: Mar. 2, 2017 00:15 PT

Posted on February 10, 2017 by user — Leave a comment

Discount Brokerage Weekly Roundup – February 10, 2017

Did someone say rally? While the Trump news cycle is on full blast, a funny thing has been happening in financial markets in the US and Canada – they’ve been going up. Despite the many sounds of alarm that are being rung by newscasters and analysts everywhere, the fact that financial markets are rallying in spite of it means that investors are clamoring to get into markets, at least for now.

For Canadian discount brokerages, the past week also showcased some very interesting maneuvering. In this week’s roundup, we’ll take a look at one major online brokerage that is banking on international opportunities. Next we take a look at another bank-owned brokerage that is sending one its platforms into early retirement. From there we’ll take a quick scan of what DIY investors had to say on Twitter and round out with a look at chatter in the investor forums.

World Denomination

CIBC Investor’s Edge now appears to have some very grand global ambitions. One of Canada’s big bank-owned discount brokerages took a very bold step with their latest feature: the ability for clients to be able to hold not just US dollars but six other foreign currencies as well. On the list of foreign currencies are Euros, British Pounds, Swiss Francs, Australian Dollars, Japanese Yen and New Zealand Dollars, all of which can be held in both non-registered and registered accounts (except for RESPs).

CIBC Investor's Edge introduces USD trading account — Screenshot from CIBC Investor’s Edge

In a year in which equity markets are sure to be impacted by uncertainty, there are many who are looking to foreign currencies for trading opportunities, so the timing of this new set of features is, for some investors, spot on.

By all accounts (pun intended), this is a major score for CIBC Investor’s Edge and their clients.

Starting first with the fact that adding the ability to settle trades in US dollars in a registered account means that there are no more messy conversion fees to deal with (unless you want to of course). In addition, clients can also receive dividends, interest and other distributions in US dollars – something not all bank-owned brokerages offer the ability to do.

While CIBC Investor’s Edge may not be the only bank-owned brokerage to work in multiple currencies (HSBC InvestDirect enables trades to settle in foreign currencies but does require conversions), they are the only major Canadian bank-owned brokerage to enable clients hold the currency itself in a registered or non-registered account. So, not only can individuals have a USD RRSP, they can also have cash in one of the six other currencies in a registered (or non-registered) account also.

This latest move by CIBC Investor’s Edge will certainly get the attention of their bank-owned brokerage competitors as well as independent brokerages, most of whom do not offer currencies other than USD to be held in a registered (or non-registered) account. So, in terms of differentiation, this definitely hits the mark.

Another reason why this move is bound to make a splash is because there are no extra fees associated with the multi-currency account – again not something other Canadian brokerages are offering for free.

Over the next few weeks there will almost certainly be more chatter and clarity that emerges as savvy DIY investors digest how to take advantage of the volatility in the US markets as well as in markets across the world. In the meantime, there are a few questions that are bound to arise now that CIBC Investor’s Edge is wading into the world of multi-currency accounts, such as whether the minimum amount to waive administration (or account maintenance) fees being charged on the account would be in the currency of the account (i.e. 25,000 euros to waive administration fees in a registered account) or the Canadian equivalent.

Of greater intrigue, however, is that if multi-currency accounts are a reality, does this then set the stage for CIBC Investor’s Edge to open up more formally to international trading? A speculator can certainly wish.

Screened Out

Retirement is on the minds of lots of folks at this time of year and for many it’s still a long time away. But, for Scotia iTRADE iPad app retirement is right around the corner.

After announcing in late 2016 that the iPad app would be discontinued some time in early 2017, this past week on social media Scotia iTRADE broke the news to a disheartened user the app’s days are quite numbered.

To @MomtoNikoP’s point – it’s hard to believe that the app itself has been around for about 4 years already. Unfortunately for technology, that is quite a long time.

Of course, in dealing with older technologies or deciding how best to adapt to changing needs of clients, online brokerages have to continuously wrestle with just where to allocate their technology resources. Sadly for the tablet app, it didn’t make the cut.

While there is appeal to using a tablet, perhaps this move by Scotia iTRADE is a signal of the realities of DIY investor behaviour. One of the most important benefits of trading or researching stocks on a tablet is screen real-estate. Rather than having to squint, pinch and zoom, researching charts or reading quarterly reports is easier on the eyes on a tablet than on most smartphones. The catch is, however, most people have smartphones and would rather use those devices than tote around or hold up a bulky tablet.

Also from a user experience point of view, investors ‘on the go’ that want to monitor, and even execute, transactions can work with data in small tables and can probably get away with using a smartphone. If you’re likely to be at a place where you can use a tablet, there’s a good chance you can probably use a laptop. Also, laptops are now lighter and more powerful than they’ve ever been, so for the DIY investor that needs a bigger screen, the ability to use a keyboard and a mouse make relying on the tablet a hard sell.

So, while there are users of tablet-specific apps that might relish in being able to go seamlessly from device to device, the latest move by Scotia iTRADE shows that tablet-specific apps might end up getting the swipe left as most DIY investors choose between either laptop, desktop or smartphone.

Discount Brokerage Tweets of the Week

This week some DIY investors found themselves having to sort through technology glitches – and ultimately let people know about it on Twitter. Mentioned this week were BMO InvestorLine, CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing & Virtual Brokers.

From the Forums

Deals in Motion

For the deal hunters among us, this latest thread on Red Flag Deals throws some love our way and also shows that there are more than just the advertised offers we have listed in our discount brokerage deals section – there are sometimes targeted offers in play too.

DRIP by DRIP

Dividend reinvestment plans (aka DRIPs) are a popular strategy for many investors to build wealth over the long term. In this post, also from Red Flag Deals, one investor was learning some important lessons on how dividends get issued and reinvested in the wild.

Into the Close

That’s a wrap on another crazy week. For those on top of this rally, there’s definitely a reason to cheer heading into the end of the week. Of course, how long to hold on for is anybody’s guess at this point – to quote a famous frog, ‘it’s not easy being green’. Have a great weekend and stay warm!

Posted on February 3, 2017 by user — Leave a comment

Discount Brokerage Weekly Roundup – February 3, 2017

It’s hard to believe a whole month has gone by in 2017. With the news cycle dominated by the ever unpredictable movements of the US president, speculation is as rampant as ever. For Canadian online brokerages, however, getting attention is far more difficult than just sending out a tweet at odd hours. Nonetheless they’re still finding a way to make some headlines.

This week there’s lots on the docket. First we take a look at some ‘yuge’ news to come out of the deals arena, as one online brokerage definitely went ‘bigly’ on the incentive offers for RRSP season. From there, we’ll cover the headlines made by two online brokers and their respective awards for service and price that were announced this past week. In keeping with the influence of the US on the news cycle, one online brokerage caused a ‘tremendous’ stir by repealing and replacing their standard commission rates with something much lower. And, as is usual fare, we’ll take a look at what DIY investors were chatting about on Twitter and in the investor forums.

New Deals & Promotions

It’s a new month and while winter still might be here (amiright Vancouver?), February’s deals and promotions at Canadian discount brokerages are red hot.

At the outset of February, Virtual Brokers made a very big splash by launching four deals at the beginning of the month, including the mind-boggling $10,000 commission-rebate offer that dwarfs anything put forward by other Canadian brokerages in recent memory. After factoring in the deals that were retired and the inclusion of credit card points related special offers, there are now at least 30 incentive offers from Canadian brokerages.

Looking back on January, there were six brokerages that announced offers, primarily timed around the RRSP season. While most were commission rebate offers, there were also a pair of cash back incentives and even a couple of credit card points offers for good measure.

Despite almost all brokerages offering some type of offer, there was one notable exception – Interactive Brokers. Perhaps because they already enjoy having significant appeal to the trader community, Interactive Brokers doesn’t need to work as hard to attract this highly prized category of the DIY investor market. Even so, with no shortage of other Canadian brokerages who are willing to try and get a share of those in the market for an online trading account, Interactive Brokers may want to reconsider their approach here in Canada in order to give them more visibility in a very crowded space.

Virtual Brokers, thanks to the launch of its recent flurry of deals now leads Canadian brokerages with 6 offers followed by Questrade and Desjardins Online Brokerage, each of whom has four. Even though Virtual Brokers saw some turnover, it’s clear they’re doubling down efforts heading into the RRSP deadline, with promotions and marketing ramping up significantly.

In terms of the deals themselves, transfer fee coverage remains a staple at almost all discount brokerages, followed by the commission-credit and cash back category. The least popular category, interestingly, remains the referral bonus with only three brokerages having an advertised program in place.

For DIY investors looking at opening an online trading account, be it for an RSP account, a TFSA or just another trading account to put in that income tax refund, this year competition amongst brokerages means a great selection of offers. And while a deal may not be the only reason to select a brokerage, the market has clearly shown that it can be the make or break factor in such a competitive race.

Accolades for Service & Pricing

For a pair of Canadian online brokerages, February is off to a great start.

At what is the busiest time of the year for Canadian discount brokerages, financial services research firm Surviscor released the results of two assessments of the Canadian online brokerage industry.

The first, an analysis of customer service quality known as the ‘Service Level Assessment Review’ found that Qtrade Investor handily outperformed its competitors, both bank-owned and independent, in terms of response times to client service inquiries.

With a score of 96% Qtrade Investor was more than 15 percentage points ahead of the second place Desjardins Online Brokerage (81%) and third place Scotia iTRADE (79%). This assessment used 170 ‘mystery shopper’ service enquiries per firm and measured how quickly each firm responded as well as a number of other items including accuracy of response and whether a firm met its own response guidelines.

While Qtrade Investor’s strong customer service scores are in keeping with its history of strong performance in this category, it was also interesting to note just how far apart Canadian online brokerages were in terms of their scores on this assessment.

For example, the difference between the top rated Qtrade Investor (who scored 96%) and bottom rated Laurentian Bank Discount Brokerage (who scored 4%) is almost unbelievably wide. Even so, the number of firms (9) who scored less than or equal to 50% was also staggering, especially because it contained four major bank-owned online brokerages as well as firms such as Questrade (who scored 15%) who have demonstrated a strength in responding to clients across social media channels and far flung places such as reddit.

Without knowing the exact scoring methodology or how the results were gathered, however, it is difficult to put the numerical values into context and as such, while these figures likely do measure some component of the online customer service enquiry process, they should also be taken with caution.

The second Surviscor assessment which was announced was this week was for the ‘Cost of Services’ award given to Virtual Brokers. While the press release about this reward was published by Virtual Brokers, it was interesting to note that this particular survey simulated the cost of trading by looking at over 13,000 trades across brokerages and found that Virtual Brokers came out on top.

Further details about this survey or its methodology were not available so the results should be treated with caution however it is clear that as competition between brokerages heats up, awards and recognition for areas of strength are going to be increasingly a part of the marketing and advertising strategies of all Canadian brokerages who receive them.

Major US Online Brokerage Cuts Commissions

What a difference two dollars can make. Charles Schwab, one of the largest online brokerages in US with almost $3 trillion in assets, announced this week that they were lowering commission prices down to $6.95 per trade from $8.95. In doing so, Schwab caused a massive sell off in the stock prices of other publicly traded online brokerages such as E*Trade Financial and TD Ameritrade as markets anticipate that these firms will likely have to follow suit and lower commission prices (and therefore revenues) to compete.

The latest move is an interesting case study for industry observers as Schwab’s business model has evolved in the low interest rate, low volatility environment to rely on managed wealth fees as a significant source of revenue rather than trading commissions. Currently less than 11% of net revenues are from trading.

In the Canadian online brokerage landscape, this move might inspire a large enough player (such as a bank-owned brokerage) that has both a strong managed wealth business as well as an online brokerage component to disrupt the market as a whole with a commission price drop from the $9.95 standard.

Internal data from SparxTrading.com already indicate that for CIBC Investor’s Edge, there has been a dramatic shift investor interest away from higher cost alternatives because of CIBC’s commission price cut to a standard commission of $6.95.

The fallout from the latest move by Schwab will be interesting to monitor, in particular because it puts tremendous pressure on firms such as E*Trade Financial and TD Ameritrade to respond. Additionally, it could very well signal to Canadian firms that yet another round of commission-lowering is on the horizon, especially if the largest players at the table decide like their US counterparts, to aggressively gain market share.

Discount Brokerage Tweets of the Week

Lots of chatter on Twitter this week – there’s good, bad and even a little ugly. Mentioned this week were BMO InvestorLine, CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing & Virtual Brokers.

Discount Brokerage Tweets – 02-03-2017 – Curated tweets by angeloAtSparx

From the Forums

Glitch Happens

This past week, a user on reddit posted a notice of a technical outage on Questrade’s platform. It was an interesting thread insofar as the author seemed to entertain switching because of a glitch however other users chimed in to provide alternate perspectives.

Platform for Trading

A familiar question comes from this recent post from reddit’s personal finance Canada section with a user looking for a trading platform/brokerage to trade ETFs. Worth a read for those in a similar boat.

Into the Close

That’s a wrap on yet another crazy week. Fortunately for football fans, the big game takes place this Sunday which might offer just a little sanctuary from the political football that keeps getting tossed around. For those who don’t really care much for football, here is a little something that will hopefully send you into the weekend on an entertaining note.

Posted on February 1, 2017 by user — Leave a comment

Discount Brokerage Deals & Promotions – February 2017

With the big game coming this weekend, it seems fitting to kick off the deals and promotions action for February in a big way. Canadian discount brokerage deals have reached a feverish pitch as the race to win over DIY investors intensifies to all-time highs.

The biggest news, however, is the launch of four new promotions in a single day by Virtual Brokers. If they were looking to make a splash, then this was certainly one sure fire way to get some attention.

Before getting into what’s new in February, a quick highlight of January will point to how Canadian DIY investors now have the champagne problem of which online brokerage offer to choose from when opening up a new trading account.

Like 2016, January 2017 was also a busy month for launching deals and promotions. Deals from BMO InvestorLine, CIBC Investor’s Edge, Scotia iTRADE, Credential Direct, Qtrade Investor and RBC Direct Direct Investing were all launched throughout the month, with almost all these offers falling into the commission-free trade or cash-back category.

Both Scotia iTRADE and RBC Direct Investing, however, launched deals that were related to credit card bonus points. In the case of RBC Direct Investing, clients who also had an RBC credit card were able to use points towards trading commissions (at RBC Direct Investing) and individuals signing up for a Scotia iTRADE account could also receive a welcome bonus of travel reward miles. Interestingly with almost all of the offers extending to at least the end of February if not the end of March, the RBC Direct Investing points bonus offer expires in mid-February, setting the stage for an intriguing question as to what – if any – offer RBC Direct Investing may come up with as Canadian DIY investors sprint towards the March 1^st RRSP contribution deadline.

As always, if we’ve missed a deal or promotion, send us a note and we can hopefully share it with all of our readers.

Expired Deals

To make room for the slew of offers, Virtual Brokers also retired a couple of their promotional offers at the end of January.

Most notable among the changes was the retirement of Virtual Brokers’ three months of unlimited trading. In addition to three months of commission free trading, this deal included a free trial of the PowerTrader Pro trading platform, which was subsequently then going to be $150USD/mo after the free trial was completed. Fortunately, there is a replacement offer now on the table, although it is not quite the same deal as the one that just expired and with a slightly higher per month cost for the trading platform.

Also on the bench for the time being is the referral program which offered up cash bonuses to new clients as well as those who referred them.

Extended Deals

No deals to mention at this time

New Deals

Go big is the game plan for Virtual Brokers as they launch their most aggressive promotional campaign ever adding four new promotional offers into the deals mix in one launch.

There’s a lot to dive into, so here’s a quick overview.

First, their headline deal of $10,000 in commission rebates is something that is unprecedented in terms of size and scope. Because it is a commission rebate, individuals making up to 1005 trades would have the commissions associated with those trades refunded. What makes this number all the more headline worthy is the fact that the minimum deposit to qualify for this offer is $10,000. The catch, presumably, is that this deal would be most appealing to active traders more so than passive investors, especially because the deadline to use up the commission-free trades is the end of March.

In keeping with the RRSP season, Virtual Brokers has also included a tiered commission offer for new and existing clients. Although it is branded as an RRSP promotion, a number of registered accounts are a part of this promotion, notably TFSA accounts and RESPs. The cash back amounts being offered are $30, $50 or $100 for minimum deposits of $5,000, $25,000 and $50,000 respectively.

The third offer is another commission-free trading promotion. Similar to the unlimited trading deal that was recently retired, this current offer enables clients to trade up to two months commission-free as well as receive two months of the PowerTrader Pro trading platform for free. After the free trial period, the platform costs $250USD per month and trading will remain commission-free. See the table below for more information.

Finally, for good measure Virtual Brokers has brought back their gift card draw for new clients. Individuals signing up for a new account with Virtual Brokers with a deposit of at least $1,000 will be eligible to be entered into a draw for a $250 Apple store gift card. There are five gift cards up for grabs as part of this contest and the draw for the gift card will take place on October 31, 2017.

Although it hit the deal wires late last month, we’re mentioning the RBC Direct Investing credit card points offer here and adding it to the list of offers covered in the “other promotions” section as well as adding Scotia iTRADE’s travel points promotion to the same category.

As always, we’ll be watching the deals action this month but if there are any deals that we’ve missed that other DIY investors would benefit from knowing about, let us know in the comments below and we update our list accordingly.

Discount Brokerage Deals

Cash Back/Free Trade/Product Offer Promotions
Referral Promotions
Transfer Fee Promotions
Contests & Other Offers

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
	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 a new account with HSBC InvestDirect and you may be eligible to receive up to 50 commission-free North American equity trades. Be sure to read terms and conditions for full offer details.	n/a	50 commission-free North American equity trades	60 days	HSBC InvestDirect Cash Bonus Promo	March 3, 2017
	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 registered account at Virtual Brokers with at least A) $5,000; B) $25,000; or C) $50,000+ in new assets and you may be eligible to receive A) $30; B) $50; C) $100 cash back. Use promo code RRSPCB2017 when signing up. Be sure to read terms and conditions for full details.	A) $5,000 – $24,999 B) $25,000 – $49,999 C) $50,000+	A) $30 B) $50 C) $100	Cash back will be deposited just after October 31, 2017	RSP cash back bonus	April 30, 2017
	Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 2 months of commission-free equity trading and a $250 USD/mo credit towards Edge Trader Pro for 2 months. Use promo code 2MFREE2017 at sign up to qualify. Be sure to read full terms and conditions for details.	$5,000	2 months commission-free equity trading + $250 USD/mo platform fee rebate.	2 months	2 months free trading	April 30, 2017
	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	February 28, 2017
	Open and fund a new account with Virtual Brokers with at least $10,000 and you may be eligible to receive a commission-credit of up to $10,000. Use promo code 10K2017 at sign up to qualify. Be sure to read terms and conditions for full details.	$10,000	Up to $10,000 in commission credits (@ $9.95 per trade)	deadline to use trades March 31, 2017. Commission rebates to be offered in January 2018.	$10,000 Commission Credit Offer	March 31, 2017
	Open and fund a new account or fund an existing account at Credential Direct with at least A) $15,000; B) $50,000; C) $150,000; D) $500,000 or E) $1,000,000+ in new assets and you may be eligible to receive A) $75; B) $125; C) $200; D) $500 or E) $1,000. Use promo code CASH2017RSP when signing up. As an added bonus, Credential Direct will donate an amount equivalent to 10% of the bonus paid out to United Way. Be sure to read terms and conditions for full details.	A) $15,000 – $49,999 B) $50,000 – $149,999 C) $150,000 – $499,999 D) $500,000 – $999,999 E) 1,000,000+	A) $75 B) $125 C) $200 D) $500 E) $1,000	Cash back will be deposited week of October 9, 2017.	Credential Direct Cash Back Promotion	March 16, 2017
	Open and fund a new account by March 31st with at least A) $20,000 or B) $100,00+ and you may qualify to receive up to either A) $500 or B) $1000 in commission reimbursements. Be sure to read terms and conditions for full offer details.	A) $20,000 – $99,999 B) $100,000+	A) up to $500 commission reimbursements B) up to $1000 commission reimbursements	90 days	National Bank Direct Brokerage Cash Back Promotion	March 31, 2017
	Open and fund a new account with Qtrade Investor with a deposit of at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1,000,000 or more and you may be eligible to receive a cash back bonus of A) $25; B) $50; C) $100; D) $250; E) $500 or F) $1,000. Be sure to read terms and conditions for full details.	A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+	A) $25 B) $50 C) $100 D) $250 E) $500 F) $1,000	Cash back will be deposited by July 31, 2017.	Qtrade Investor Cash Back Bonus	February 28, 2017
	Open and fund a new account at TD Direct Investing with at least A) $25,000; B) $50,000 or C) $100,000+ and you may be eligible to receive A) 50; B) 100 or C) 200 commission-free trades. Be sure to read terms and conditions for full offer details	A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000+	A) 50 commission-free trades (max value: $500) B) 100 commission-free trades (max value: $1000) C) 200 commission-free trades (max value: $2000)	April 28th, 2017 Commission charges will be credited the month following when the charge was incurred.	TD Direct Investing 200 Commission-free Trade Offer	March 31, 2017
	Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,000 or D) $250,000+ and you may be eligible to receive A) 75; B) 150; C) 200 or D) $250,000+ in commission-free trades. In addition, new clients will also receive FlightDesk active trading platform free for 90 days. Use promo code W17FT when signing up to be eligible. Be sure to read terms and conditions for full details.	A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000+	A) 75 (max value: $749.25) B) 150 (max value: $1498.50) C) 200 (max value: $1,998) D) 250 (max value: $2,497.50)	90 days	Winter 2017 Free Trade Offer	March 31, 2017
	Open and fund a new account at CIBC Investor’s Edge with at least A) $50,000 or B) $100,000 and you may be eligible to receive A) $200 or B) $400 in cash back. Also, individuals who setup a regular investment plan may also be eligible to receive 50 commission-free equity trades. Be sure to read terms and conditions for more information.	A) $50,000 – $99,999 B) $100,000+	A) $200 B) $400 +Bonus 50 commission-free trades for setting up Regular Investment Plan.	Cash back will be deposited within 30 business days after account funding. Commission-free equity trades good for 60 days after setup of Regular Investment Plan.	Cash Back & Free Trade Offer	March 31, 2017
	Open a new qualifying account with BMO InvestorLine, and fund it with at least A) $100,000; B) $200,000 or C) $300,000+ in net new assets and you may be eligible to receive A) $200; B) $400 or C) $750 cash back. Use promo code PROMO750 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer.	A) $100,000 – $199,999 B) $200,000 – $299,999 C) $300,000+	Cash back bonus A) $200 B) $400 C) $750	Cash back will be deposited the week of November 6, 2017.	2017 Winter Campaign	April 2, 2017
Expired Offers
Last Updated: Feb. 1, 2017 21:15 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
	If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link.	A) $10,000 B) $50,000+	A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50)	60 days	Refer A Friend to Scotia iTrade	tbd
	If you (an existing 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, 2017
Expired Offers
	Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	30 days	none	none
Last Updated: Feb. 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 $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
	Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees	$135	$25,000	Transfer Fee Rebate	none
	Disnat 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	February 28, 2017
Expired Offers
Last Updated: Feb. 1, 2017 21:30PT

Other Promotions

Company	Brief Description	Minimum Deposit Amount Required	Details Link	Deadline
	Credential Direct has partnered with Trend Micro to offer 50% off Trend Micro Titanium Internet Security. Use code “TrendCF” at checkout.	n/a	Trend Micro Special Offer Code	none
	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
	Existing RBC clients can redeem 20% more RBC reward points towards contributions to a registered or non-registered account as well as towards RBC Direct Investing commissions.	n/a	RBC Reward Points Bonus Offer	March 1, 2017
	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
	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
	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) $1,000,000+ and you may be eligible to receive 50 commission-free trades plus A) 5,000; B) 7,500; C) 15,000 or D) 20,000; E) 25,000 or F) 50,000 travel points on an eligible Scotia travel points credit card. In addition, new clients will also receive FlightDesk active trading platform free for 90 days. Use promo code W17RP when signing up to be eligible. Be sure to read terms and conditions for full details.	A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+	Scotia reward points offer	March 31, 2017
	Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) and you may be eligible to win a $250 gift card to the Apple store. Use promo code 250AGC2017 during sign up to be eligible. Residents of Quebec are not eligible for this contest. Be sure to read terms and conditions for full details.	$1,000 (Classic Commission Account)	$250 Apple Gift Card Draw	April 30, 2017
	Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) or $5,000 (for the Commission Free Trading Account) and you may be eligible to receive a one-year subscription to access 5i Research. Use promo code 5iVB2016 when signing up. Be sure to read terms and conditions for full details.	$1,000 (Classic Commission Account); $5,000 (Commission Free Trading Account)	5i Research Offer	March 31, 2017
Expired Offers
Last Updated: Feb. 17, 2017 21:15 PT

Expired Deals

Extended Deals

New Deals

Discount Brokerage Deals

Cash Back/Free Trade/Product Offer Promotions

Expired Offers

Referral Promotions

Expired Offers

Transfer Fee Promotions

Expired Offers

Other Promotions

Expired Offers

Marching Forward

New Voice of Security

Discount Brokerage Tweets of the Week

From the Forums

Conversion Factor

Qtrade vs Questrade

Into the Close

Budgetpalooza

Budget 2017 Review: Desjardins Online Brokerage

Budget 2017 Review: BMO InvestorLine (BMO Wealth Management)

Budget 2017 Review: CIBC Investor’s Edge

Other brokerages

You’ve got a fund in me

Discount Brokerage Tweets of the Week

From the Forums

The Waiting Game

Into the Close

Fee-ling the Pinch: US Online Brokerage Fee Wars and the Fiduciary Duty Rule

Online Security for Canadian DIY Investors: How to Stay Safe While Trading Online

Fraud is kind of a big deal

Details matter

Discount Brokerage Tweets of the Week

From the Forums

Hard lessons

ETF or e-Series

Into the Close

Online brokerage security agreements: a handshake

Internet security: conditions apply

Meet security conditions if you want losses reimbursed

Online brokerages: how they keep your online accounts secure

Two factor authentication (TFA): the way of the future?

DIY investors and regulatory agencies call for increased vigilance as data breaches escalate

New Deals Roundup

From the Blog: Oh SNAP! An IPO like no other?

Fraud Prevention Month

Discount Brokerage Tweets of the Week

From the Forums

Closing time

Down to the Wire

Into the Close

Expired Deals

Extended Deals

New Deals

Discount Brokerage Deals

Cash Back/Free Trade/Product Offer Promotions

Expired Offers

Referral Promotions

Expired Offers

Transfer Fee Promotions

Expired Offers

Other Promotions

Expired Offers

World Denomination

Screened Out

Discount Brokerage Tweets of the Week

From the Forums

Deals in Motion

DRIP by DRIP

Into the Close

New Deals & Promotions

Accolades for Service & Pricing

Major US Online Brokerage Cuts Commissions

Discount Brokerage Tweets of the Week

From the Forums

Glitch Happens

Platform for Trading

Into the Close

Expired Deals