InvestorLine – Page 35

Posted on June 1, 2014 by user — Leave a comment

Discount Brokerage Deals & Promotions – June 2014

[Updated July 10, 2014]

With summer just around the corner, June is an interesting month for Canadian discount brokerage deals. On the one hand, there are six offers that are scheduled to expire at the end of the month. On the other hand, history has shown that Canadian brokerages don’t like to be left out of the deals party.

In this month’s deals section, although nothing new was posted or announced at the beginning of the month from Canadian online brokers, we’ve seen a couple of interesting offers launched in mid to late May that are likely to get more attention in June.

So, while investors may be gearing down, the deals and promotions timeframes seem to suggest that Canadian discount brokerages are gearing up for a very heated summer of competition.

New Deals

[Update: July 10, 2014]

Editor’s Note: A representative from BMO Investorline has contacted us directly to let us know that the terms for the Select1500 and Select700 offers are being updated and that this will only be offered to select existing clients. As such, we have removed this offer from the deals sections in which it appears.

Update June 23, 2014:

Questrade has launched yet another offer – this one themed around Canada Day. With this newest offer, new clients who deposit $25,000 or more into a qualifying account may be eligible to receive 25 commission free trades which can be used between now and the end of the year (about 6 months). Be sure to read the details below and pay special attention to the deadline (July 3) if this offer is of interest.

Update June 11, 2014:

Questrade appears to have brought back its 3 month of free trading offer, currently no other brokerage is offering unlimited trading for this span of time. As a note, the full three months is available for deposits of $50,000 or more. Those who deposit between $25,000 and $49,999 get two months of commission-free trades and for deposits of between $1,000 and $24,999 one month of commission free trades are being offered. For more details, check the table below.

iPad minis made a comeback through May as two online brokerages, Questrade and National Bank Direct Brokerage, launched offers with these tablets as incentives to open an online trading account. It is interesting to compare the two offers directly as, although the tablet being offered is the same (iPad mini 16gb wifi), the criteria to qualify and the value of the offers are very different.

In the case of National Bank Direct Brokerage’s offer, the minimum deposit required is $20,000 and the valuation on the iPad Mini is being pegged at $319. It is noteworthy that this is the first time in recent memory that National Bank Direct Brokerage has offered up an iPad mini as an incentive to open an account.

Questrade’s iPad mini offer, by comparison, requires a minimum deposit of $100,000 and clients can elect to receive an iPad mini or $250 cash. For Questrade, this isn’t the first time they have used an iPad mini as part of their promotional mix. The iPad mini was being offered under similar terms to the current offer for quite some time however it wasn’t present through May.

Another very interesting deal was also quietly announced midway through May by BMO InvestorLine. Specifically they have launched an offer directed at younger investors (i.e. those aged 18 – 35) that offers free trades, a waiving of the minimum deposit requirement and the possibility to have minimum account balance fees waived on registered and non-registered accounts. For a number of reasons, younger investors are becoming an increasingly important demographic for online brokerages to target and this offer by BMO may result in comparable offers from other brokerages.

As history has shown, Canadian discount brokerages are not keen on standing still. So, although June might be a time when most investors are starting to take it easy, most of the brokerages will likely be working on their next wave of promotions and deals.

Extended Deals

Only one promotion saw its expiry date moved from the beginning of July out until the end of August. Questrade’s 100 commission free trades offer has now been extended to August 30^th and the promo code for it has also changed.

Expired Deals

Only one deal was set to expire at the end of May and that was Questrade’s cash back offer. That deal offered either $250 cash back for a $100,000 deposit or $100 cash back for a $50,000 deposit.

Discount Brokerage Deals

Brief Description	Minimum Deposit Amount	Commission/Cash Offer 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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform.	n/a	Discounted Commission Rates	none	For more details click here	none
For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer.	n/a	35 commission-free trades	90 days	Youth Promotion	October 31, 2014
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	none	none	none
Open an account with Virtual Brokers with a deposit at least $1,000 and Virtual Brokers will offer 25 commission free trades which can be used for up to 1 year. Use promo code “FTR2” when signing up. This offer is open to new clients only. Be sure to read the terms and conditions for full details on this offer.	$1,000	25 commission-free trades	365 days	25 free trades offer	June 30, 2014
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account.	$1,000	$50 commission credit (friend) $100 commission credit (referrer bonus)	60 days	Refer a friend	none
Open a new account (TFSA, Margin or RRSP) by August 30 2014 A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code 100LOWCOM14S must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.	A)$1,000 B)$10,000	A)10 free trades B)100 free trades	60 days	100 commission-free trades	August 30, 2014
Open a new TFSA, margin or registered account with Questrade and receive either A) 31 days B) 62 days or C) 90 days of unlimited commission-free stock & options trades. Use promo code FREETRADES14 when signing up. Be sure to read the terms and conditions for more information.	A)$1,000 B)$25,000 C)$50,000	Unlimited commission-free trades during associated period.	A) 31 days B) 62 days C) 90 days	Questrade Unlimited Trade Promo	August 31, 2014
Open and fund a new account at Questrade with at least $5000 and place at least one commission generating trade, and Questrade will provide a gift card from Amazon.ca worth $50. Use promo code BONUS50 when signing up. Be sure to read the full terms and conditions for more information.	$5,000	$50 gift card from Amazon	Receive gift card after placing 1 commission generating trade	Amazon Gift Card Promo	June 30, 2014
As part of their Stockscores tour, Disnat Direct is offering a “hat trick” promotion. Open a new account with at least $10,000 by June 15, 2014 and receive: $300 in commission credits, 3 months of trading at $5 commission per trade, 3 months of platform access to DDWeb/DDXtra and 1 year’s free subscription to TradeScores daily newsletter. Use the promo code “Hat Trick” when registering via phone. Read the terms and conditions for more details.	$10,000	1) $300 commission credits 2) 3 months of $5/trade commission rate 3) 3 months platform access to DDWeb/DDXtra 4)1 year’s free subscription to TradeScores daily newsletter	1) 3 months	Disnat Direct Hat Trick Promotion	June 15, 2014
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	June 30, 2014
Open and fund a new Scotia iTRADE account with at least $15,000 before June 30, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions.	$15,000	100 commission-free trades ($999 value @ $9.99 commission rate)	60 days	Scotia iTrade 100 free trades + FlightDesk	June 30, 2014
Open and fund a new account with National Bank Direct Brokerage by July 31st, 2014 and you could be eligible to receive an iPad mini. A commission generating trade must be placed within the ‘validation period’ in order to qualify. Use promo code IPADMINI14. Be sure to read full terms and conditions, especially around validation periods.	$20,000	iPad Mini (value $319)	iPad Mini to be sent after either Dec. 31/14 or Jan. 31/15 depending on eligibility. At least 1 commission generating trade must be placed to be eligible.	iPad Mini Promotion	July 31, 2014
Open and fund a new account at Questrade with at least $25,000 and you may be eligible to receive 25 commission-free trades. Use promo code CANADADAY14 when signing up. Be sure to read the full terms and conditions for more information.	$25,000	25 commission-free trades	Dec. 31st, 2014	Canada Day Promo	July 3, 2014
Open a new account by June 29 & fund with: A) between $15,000-$99,99 B) $100,000-$499,999 or C)$500,000+ and receive either A)$50 cash back or 100 free trades B)$250 cash back or 250 trades or C)$500 cash back or 500 free trades. Also, Scotia iTrade is including 6 months free access to their FlightDesk trading platform. Use promo code: SPTRD14 for free trades and CSHSG for cash back. Be sure to read the terms & conditions on this deal.	A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+	A)$50 or 100 free trades B)$250 or 250 free trades C)$500 or 500 free trades	Cash Back: deposit by Feb 28/15 Commission Rebate: 90 days	$500 Cash Back or 500 Free Trade promo	June 29, 2014
Open a new qualifying account or fund an existing qualifying account by July 31, 2014 with at least $50,000 and BMO InvestorLine will provide a $50 cash back offer, 50 commission-free trades and a 1 year subscription to GlobeInvestor. Use promo code BONUS to qualify when signing up. Be sure to read full deal terms and conditions.	$50,000	$50 cash back 50 commission-free trades ($497.50 value) 1 year subscription to Globe Investor (~$228 value)	Cash Back: Payout after 6 months Commission-Credits: 50 days	Spring “New Investors” 50 50 Promotion	July 31, 2014
Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$50,000	$300 commission credit	6 months	Disnat $300 Commission Credit Promo	August 29, 2014
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.	A) $50,000 – $249,000 B) $250,000+	A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100	Payout occurs after 60 days (subject to conditions).	Refer A Friend Terms & Conditions	October 31, 2014
Open and fund a new qualifying account with at least $100,000 in net new assets and you may be eligible to receive either A) a new 16gb iPad Mini (wifi only) or B)$250 cash back. To be eligible for either, at least one commission generating trade must be placed. For the iPad Mini use promo code IPADMINIS14 or for the $250 cash back offer use promo code CASH250S14. Be sure to read full terms and conditions for eligibility and further details.	$100,000	A) iPad Mini or B) $250 cash back	A) iPad will be sent after 6 months B) Payout occurs after 60 days	iPad Mini or Cash Back Promo	July 30, 2014

Transfer Fee Deals

Brief Description	Maximum Transfer Fee Coverage Amount	Minimum Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
Tranfer $15,000 or more and Scotia iTrade may cover up to $150 of the transfer fee.	$150	$15,000	$500 Cash Back or 500 Free Trade promo	June 29, 2014
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
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	none
Virtual Brokers will cover transfer fees from your transferring institution to a maximum of $150 per account. This offer is only applicable to accounts opened with at least $25,000 in equity before June 30, 2014	$150	$25,000	Transfer Fee Promo	June 30, 2014
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
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.	$125	$25,000	Transfer Fee Promo	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 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$150	$50,000	Disnat $300 Commission Credit Promo	August 29, 2014

Posted on May 30, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – May 30 2014

Another week, another record high. It looks like not that many folks chose to sell in May and go away after all. In spite of most NHL hockey players and seasonal investors starting to take it easy, Canadian discount brokerages were still keeping busy keeping one another on their toes.

In this week’s roundup we look at a couple of online brokerage deals that are hoping to get the attention of self-directed investors with some popular toys. Also, another Canadian online brokerage announced a feature enhancement that will help show investors the money (or lack thereof). As a quick pulse of where the Canadian online brokerage industry may be headed, we take a quick peek at a merger of two US discount brokerages. And finally, what would a weekly roundup be without some interesting thoughts from the Canadian investment forums?

An Apple a Day

Despite ponying up around $3 billion for a headphone (and streaming music) company, Apple still remains popular with consumers – which is something banks and now discount brokerages are capitalizing on.

Although Questrade was one of the first discount brokerages to offer up an iPad minis as an incentive to open an online trading account (and did so for a long time), it now seems that National Bank Direct Brokerage has also taken to a similar strategy.

Earlier this week, National Bank Direct Brokerage rolled out a new promotion offering iPad Minis for new clients who deposit at least $20,000. Interestingly, Questrade’s iPad Mini offer which had been taken down, looks to also have resurfaced. Questrade’s iPad mini offer requires a deposit of at least $100,000 and gives qualifying clients the choice of taking the iPad mini or $250 cash. Another curious point is that the value of the iPad Mini for the National Bank Direct Brokerage offer is listed as $319 whereas with Questrade it is being valued at $250.

Keeping it Realized

As commission pricing between major bank-owned online brokerages has come down, service, platform and features are the new battlegrounds to woo clients. Following their recent announcement about additional news data, earlier this week Scotia iTrade took another step towards improving customer experience by announcing the roll out of a realized gain & loss reporting feature. The new feature apparently allows clients to view their actual trading gains and losses as far back as January 2014.

Two Heads Are Better Than One

For many years, observers of the Canadian discount brokerage marketplace have observed the increasing competition for a very limited number of investors. While the fragmentation of the Canadian marketplace hasn’t really driven too much consolidation, the recent notable examples (e.g. optionsXpress Canada being acquired by Virtual Brokers) are far and few between.

In the US, however, the marketplace is also hypercompetitive and earlier this week, two Chicago-based online brokerages OptionsHouse LLC and tradeMONSTER Group Inc announced they would be joining forces. This merger comes just over 2 years after the merger of another pair of Chicago-based US brokerages – TradeKing and Zecco. While two points a trend does not make, it is nonetheless interesting to see smaller players combine to take on the incumbent brokerage houses. Whether it’s two smaller brokerages teaming up or a case of a bigger fish acquiring a smaller one, the signs from the US discount brokerages may be sending a signal of things to come here in Canada.

From the Forums

What are Friends For?

Several Canadian discount brokerages have referral programs set up where existing clients can receive a bonus (usually cash or free trades) for having someone they refer open an account. In this post from Red Flag Deals, the community chimes in on the BMO InvestorLine refer-a-friend offer which provides up to $300 for a referral.

Some Change Won’t Do You Good

Forced currency conversions are a thorn in the side of many self-directed investors, especially given where the Loonie has been for the past few months. With that in mind, when online brokerages do conduct a foreign currency conversion, there is just that much less of a portfolio left. In this post from Canadian Money Forum, users discuss RBC Direct Investing’s foreign exchange practices with a Tax Free Savings Account (TFSA).

That takes to the end of the week and the roundup. As a quick reminder, the Cambridge House Canadian Investor Conference is coming up this weekend for those in and around the Vancouver region. Registration is free ahead of the conference. For those suffering from a bit of hockey withdrawal take heart, the best disinfectant is sunshine – so hopefully you’ll have a chance to get out and enjoy some.

Posted on May 23, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – May 23, 2014

Even though there was a shortened work week after the Victoria Day holiday, neither the Canadian discount brokerages nor those in the SparxTrading camp wasted any time bouncing back into the action.

In this week’s roundup, we’ll reveal the big news about an exciting feature we’ve been working on. We weren’t the only ones with big news though, as pair of major online brokerages took to using the major news media as a selling tool in two different ways. Next on the menu was a new promotion by another popular online brokerage – this one aimed at younger online investors. Also, a usually quiet discount brokerage signed up with an interesting platform partner. Finally, we round out the roundup with some interesting opinions from the investor forums.

Beta be Good News

Earlier this week the long awaited update to the Canadian discount brokerage profiles rolled off the assembly line. We began the redesign by listening and researching how it is that Canadian self-directed investors were hunting for information on discount brokerages. The fruits of that research told us that Canadians were looking for a platform to learn about, share experiences on and connect to discount brokerages.

The beta versions of these pages, which are now open to the viewing public, are built around these ideas with features that make the task of researching a discount brokerage much simpler. We’ll save the deep-dive on all the new bells and whistles for a dedicated blog post, but for now, we encourage readers to take the new profiles for a spin. If there are any issues or suggested improvements, we’d love to hear them.

2014 will continue to bring some added improvements to the site in terms of function and form, so we look forward to an exciting next few months.

Desjardins Online Brokerage in the Spotlight

Earlier in the week, Desjardins Online Brokerage (aka Disnat) sponsored a special piece in the Financial Post. It was an interesting overview of the online brokerage, most notably because it was done in a Q&A style that had a particular focus on new or beginner investors.

Good Times

Scotia iTrade also announced earlier this week that they will be adding to their investor information stream by enabling iTrade clients to access content from the Financial Times. Scotia iTrade clients can now access to this information feature under the ‘investing ideas’ section. Two notable authors from the Financial Times that have syndicated content available are Gillian Tett and John Authers.

You Must Be At Least This Young

BMO InvestorLine launched a very interesting promotion at the tail end of last week that didn’t make it into last week’s roundup. Not to worry (unless you are another discount brokerage) though, as we put together a detailed look at their latest offer. For those of the TL;DR generation, the new promotion is aimed at online investors between the ages of 18 to 35, and is offering 35 free trades (good for up to 90 days) as well as waiving of the minimum $5,000 deposit. In addition, making at least 2 trades within 6 months waives the minimum balance fees for non-registered and registered accounts.

A Wize Move?

Canadian discount brokerage Jitneytrade announced this week that they are the preferred Canadian brokerage partner for a software platform known as WizeTrade. According to the release, Jitneytrade clients are now able to integrate the WizeTrade interface with Jitneytrade’s Desktop Pro platform to allow direct trading from the WizeTrade platform. Wizetrade is a charting/scanning platform that enables users to scan/trade currencies, equities, options and commodities.

From the Forums

Ungraceful Exit

One of the interesting scenarios that comes up is when it comes time to switch brokerages. Most brokerages impose a penalty for leaving, with some even putting an additional charge if users leave within a year of signing up. On the flip side, most brokerages getting a client have offers to pay transfer fees. Unfortunately, for investors such as the one in this Reddit post, the threshold to have those fees reimbursed was higher than the amount getting transferred. Nonetheless, check out what other readers had to offer in terms of advice.

One DRIP at a time

The dividend reinvestment plan (DRIP) is a popular strategy for building wealth by using dividend payments. How smoothly this process goes depends somewhat on whether an investor chooses to use this strategy inside or outside of a registered account. While possible outside of a registered account, there is a bit more work that’s required to ensure the transactions are properly accounted for. The following post from Canadian Money Forum highlights one user’s experience with setting up a DRIP in a non-registered account.

That’s a wrap for this shortened week. As a reminder, US Markets will be closed on Monday for the Memorial Day long weekend. It’s likely that Canadian markets will also trade more lightly because of the US market closures so whether it be on the weekend or in the trading lull on Monday, enjoy the following video pitching a novel approach to using solar power (cue the solar bull drool).

Posted on May 18, 2014 by user — Leave a comment

Made for Millenials: BMO InvestorLine Launches New Offer at Younger Online Investors

In a world filled with TLDRs and endless opportunities to like, tweet, pin and share, finding the time or inclination to take on investing can be as much of a challenge as finding the money to do it with. And yet, as part of growing trend among Canadian online brokerages, would be and actual younger online investors (between the ages of 18 and 35) are increasingly being courted.

The latest promotion announced by BMO InvestorLine is aimed directly at the ‘millenials’ with the challenge to ‘procrastinate or prosper’. While the offer itself is interesting, the campaign and context around it is equally fascinating.

What the Numbers Say

Starting first with the offer itself, BMO InvestorLine is ponying up 35 commission-free trades (trades good for use for up to 90 days), a free investing eBook and they are prepared to waive the minimum balance fees on both registered and non-registered accounts (with a catch) for clients until they reach the ripe old age of 36. Also, for good measure, BMO InvestorLine is waiving the $5,000 minimum deposit requirement when opening an account.

The catch for the fee waive is that clients have to place 2 or more commission-generating trades within 6 months. Thus, the waiving of one fee actually requires the generating of another. Within a 12 month period that amounts to $39.80 per year in commission costs vs paying $100 per year if a client doesn’t meet the minimum balance requirements.

A little bit of extra homework reveals that the the offer to waive fees on non-registered accounts is actually standard practice. As such, the unique benefits of this offer are in the waived minimum deposit requirement and that registered accounts (such as RRSP accounts)can have minimum balances waived. With this offer trading activity can lower the total cost of the account for balances under $25,000 – a threshold that many under 36 may not hit.

In addition to the offer itself, there is also a contest with a cash prize of $3500 that individuals who sign up for a non-registered account may be eligible for.

A Digital Generation

More and more Canadian online brokerages are expected to start courting this segment of online investors, with three important players (Questrade, RBC Direct Investing and Virtual Brokers) already actively providing services or products for younger investors.

The challenge, then, is for younger online investors and those thinking about investing to be able to get up to speed on what their options are and find the best option for their needs.

Interestingly, the power of the digital age creates both the problem and solution for younger investors. On the one hand online brokerages can generate and distribute content much faster than ever before. This means there is lots more fragmented information for self-directed investors to sift through. On the other hand, the digital era has also spawned a number of tools such as our deals and promotions section as well as forums designed to make doing the homework on what options are out there much easier.

On the other side of the fence, the challenge to many online brokerages is to balance what they’ve learned about promotions and brand loyalty from baby boomers with the changing needs and preferences of the next generation of investors. And, although there may be more places to try and be seen, the biggest challenge will be staying relevant.

What it Boils Down to

Overall, then, the advantage of this offer appears to be for younger investors to be able to get up to 90 days in which to execute 35 trades commission-free, a free investing eBook from the Globe and Mail and a discount on the total cost of ownership of a non-registered account until the age of 36 or until the balance hits $25,000 (and stays there by their assessment date). The waived minimum deposit also makes this offer accessible.

While this latest offer from BMO InvestorLine may be worth considering, younger online investors will need to critically evaluate the kinds of information being sent their way via promotions and advertisements (did anyone notice the image on the iPhone of the 12 million dollar portfolio?) by all brokerages in order to make a well-informed decision.

Finally, even though the technology and tools exist to get more information more quickly, there is still time to do homework and make a proper decision. After all, for a younger investor, time is on their side.

Editors Note: The article has been updated to include information on the waived minimum deposit.

Posted on May 16, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – May 16, 2014

The bears just can’t seem to catch a break this week. Even the Boston Bruins now know what it feels like to be on the wrong side of a hot Price. As a jumping off point to this week’s roundup, the intensity that comes with fierce rivalry is a reminder that discount brokerages & investors had better be prepared to play to win. Champions, challengers, currencies and commitment – this week we’ve got’em all.

In this week’s roundup, we take a look at a very interesting interview with one of the largest discount brokerages in North America. Next, we highlight how one of Canada’s independent brokerages looks like they’re trying something different within the deals & promotions arena. Following that, we pass along some important cautionary advice from a major Canadian securities regulator about virtual currencies. Finally, we end this pre-long weekend edition of the roundup with some interesting reading suggestions from the forums.

Online Trading According to Interactive Brokers

It’s one thing to compete as an investor, but it’s an entirely different thing to be able to be profitable at it.

This past week a very compelling interview of the CEO and founder of Interactive Brokers, Thomas Peterffy, was published by the Motley Fool. In that interview there were a number of interesting comments made by Peterffy regarding what it takes to compete in the discount brokerage industry and the commitment Interactive Brokers has taken to controlling costs through automation.

Among the many revealing statements was one regarding their business the core metrics they monitor: the number of new accounts, the amount of new assets and the margin loans. The fact that Interactive Brokers is geared towards “sophisticated” investors means that when they connect with their target client (or vice versa), trading activity is almost a given. Also revealing was the statement that Interactive Brokers doesn’t appear interested in growing their business by competing outside of their comfort zone (for now) – something bigger bank-owned brokerages may be content to know.

Welcome to the Jungle

Eat or be eaten is the law of the jungle. In the discount brokerage deals & promotions space, Questrade stands out amongst other brokerages because of the frequency with which it provides incentives for opening a trading account. This week was no exception as Questrade announced a promotion in which individuals who open an account (with a $5,000 deposit) and make at least one commissionable trade will receive a $50 Amazon gift card.

While other brokerages have, in recent memory, been willing to try something different (such as AirMiles), pairing a gift card from Amazon is an interesting move. The $50 mark is something that BMO InvestorLine is also pushing as part of their most recent promotional campaign (along with 50 free trades).

After a bit of quick math, because a commissionable trade (of between $4.95 – $9.95) is required to get the gift card, individuals are actually getting ~$40-45 for a deposit of $5,000.

Virtually Volatile

Although it hasn’t been making as many headlines as it was earlier in the year, Bitcoins have been getting a lot of interest from regulatory agencies all across the globe. As a cautionary tale to investors and those considering using Bitcoins, the British Columbia Securities Commission (BCSC) InvestRight posted this article on their blog regarding the popular digital currency.

From the Forums

The journey from novice to expert is something that every investor undertakes. Knowing where or how to begin is an ongoing challenge and so this week we chose to show both ends of the spectrum. From the humble beginnings to the world experts.

Old School Video

There’s nothing quite like kicking it back to the ‘old school’ way of investing to realize that much of what was true then is true now. It’s also quite a trip to see old film reel streamed from the web. Check out the video posted on our Facebook page.

Learning How to Invest

The personal finance section of Reddit once again provided some interesting conversation threads for self-directed investors. In this thread, a beginner investor in university looking to get started with investing reaches out to the reddit community to see how they went about learning how to invest.

Getting Schooled

The investing world has no shortage of personalities and opinions. One of the most interesting voices in the mix is Kyle Bass, who is rarely at a loss for words or a bearish outlook on Japan. This video comes courtesy of a post on Canadian Money Forum and certainly kicked up a storm of debate given that Canada has now gotten in his cross-hairs. Be warned though, there is quite a lot of material to follow along on.

That’s a wrap for this week’s roundup. Remember that Canadian markets will be closed on Monday for the Victoria Day long weekend but the US markets will still be alive and kicking. Have a safe & enjoyable weekend!

Posted on May 9, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – May 9, 2014

If there’s one fear that doesn’t seem to be present in the market, it appears to be a fear of heights. Once again markets are touching new highs and venturing into uncharted territory – but they weren’t the only ones.

In this edition of the roundup, we cover quite a bit of ground starting with a pair of “growth-oriented” investor conferences that took place in Vancouver. Next we check out a couple of recently launched discount brokerage promotions and contests. Following that we report on an interesting level of hiring activity by different brokerages. Finally we end with a selection of thoughts from other Canadian investors via the investor forums & message boards.

Growing Opportunities

This past week Vancouver played host to two interesting growth-themed conferences.

The first was the new medical-marijuana focused Green Rush conference. According to reports, it was surprisingly well attended for a new conference and it drew in those curious about the potential ‘pot-of-gold’ at the end of the medical marijuana rainbow. Whether or not investors will see the green in their portfolios at this point is still too early to tell, but the speculators were out sniffing around.

Another growth themed conference took place a short distance away – this one with a focus on small cap companies. The spring edition of the Vancouver Small Cap conference showcased several guest speakers along with small cap company presentations. As with conferences past, there were a number of interesting tips and perspectives on a segment of the market that is typically classified as ‘high risk’. Read our full review of the Vancouver Small Cap Conference for more information.

ETF Contest on the Horizon

Horizon’s Exchange Traded Funds (ETFs) in partnership with National Bank Direct Brokerage are once again running their Biggest Winner contest. The contest runs from market open on May 20^th to market close on June 27, 2014.

This year the prizes consist of $500 cash weekly for the 6 week duration of the contest, a grand prize of $7500 at the end of the competition and a runner up prize of $2500. The grand prize will be awarded to the portfolio that has the highest account value at the end of the competition. The weekly prizes will be awarded to the individual with the highest percentage gain. For full details on the contest or to register, click here.

Cash is King

According to the following forum post via the Financial Wisdom Forum, BMO InvestorLine has another cash back promotion running (not advertised on the front-end of their website) geared towards investors depositing either $250,000-$499,999 or $500,000+. The promotion offers either $700 or $1500 cash back depending on the deposit size. Full details on the promotion are available here.

BMO InvestorLine was also busy this week announcing updates to its adviceDirect service. Specifically a number of additional updates were released that focus around personalized ETF buy and sell recommendations and an improved ability to personalize recommendations with sorting functions.

New Features Coming to Questrade

Another interesting nugget from the investor forums came from a Questrade representative posting on the RedFlagDeals forum. Specifically, the rep let readers know that bracket orders would soon be launched by Questrade as part of the new release of the IQ platform. Traders on advanced platforms such as TD Direct Investing’s ThinkOrSwim (aka the US Trading Platform) and Active Trader platforms, or Interactive Brokers’ TWS have been able to take advantage of bracket orders (aka conditional orders or One Cancels the Other orders).

With Questrade now providing the feature it will be an interesting selling point for their platform. There are other online brokerages (who unfortunately cannot be named at this point) who are also currently working on the implementation of bracket orders.

Hiring Spree

Two points a trend does not make. That said, there seems to have been a slightly greater than usual spike in the number of job postings coming from Canadian discount brokerages.

In a recent roundup we covered the launch of Questrade’s new careers twitter handle and in these past two weeks there have been a number of postings for sales reps and client reps.

While it is difficult to pin down exactly what is prompting the timing, hiring more staff to either service or “onboard”new clients is a sign that several brokerages are not sitting back when it comes to looking for new business.

Among the brokerages with recent hiring posts:

Questrade (there was an internship posted here & 35 open positions here)
NBDB (5 client service reps – posting here & expires May 13)
Desjardins Online Brokerage (client service rep – expires May 16)
BMO InvestorLine (here’s a link to a quick search for open opportunities)

From the Forums

Activity across the forums looks like it pulled back a bit – perhaps on account of the nicer weather pulling folks away from the screens and into the better weather. This week’s selection comes from the RedFlagDeals forum as well as from the Canadian personal finance section of Reddit.

Questrade vs Virtual Brokers – encore

Comparing the two low cost online brokerages is a popular source of discussion – here is yet another interesting thread comparing them both.

Keeping it Casual

As we pointed out last roundup, seeking out advice from Reddit can be a hit or miss proposition. Nonetheless a thread that crossed our radar (which can be found here) was from a user looking to find the best brokerage for a “casual investor”. The responses of users were interesting and it was also noteworthy to see that even on Reddit, folks are prone to having multiple brokerage accounts.

That does it for this week’s roundup. We wish all the moms of the bulls and bears out there a wonderful Mother’s Day. For those brave enough to be looking for a Mother’s Day themed investment or three, this interesting segment from CNBC might provide a few ideas other than flowers:

Posted on May 2, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – May 2, 2014

Dramatic playoff hockey, incredible playoff basketball, markets hitting new highs (again) and the new Star Wars cast announced. It looks like May is bringing more drama than it is flowers. As we round the corner into May, the drama among discount brokerages continues to unfold, albeit with less flare than the heart pounding finishes from both the Habs & Raptors.

In this week’s roundup we launch into May with a new set of deals and information on investor education events; we report in on the always interesting trading metrics and activity of investors stateside; we take a quick peek at another ranking of Canadian brokerages and we close off the week with some discount brokerage encounters for the far edge of the internet.

Let’s May-ke a Deal

Here in the SparxTrading camp, the beginning of the month signals a time for a new overview of discount brokerage deals and promotions. This month the deal landscape looked much the same as it did in April. With one new deal announced as we come into May, it appears that discount brokerages are digging in until June with their core offers. The only new deal to announce was from BMO InvestorLine. Click the following link to learn more about the discount brokerage deals for May 2014. And, if history is any indicator, there ‘may’ still be some deals coming down the wire.

Learning About Earning

On the educational front, it appears Canadian discount brokerages are upping the ante for their focus on providing education and support to clients looking to learn more about investing.

This past week TD Direct Investing held a 45 minute webinar covering its web-broker platform that reportedly had over 10,000 registrations (they didn’t mention how many actually logged in) – an enormous number for any kind of education focused event online or offline. TD Direct Investing has recently added webinars to their mix of educational offerings, scheduling the online events on the last Wednesday of every 2^nd month (the next one will be June 25^th 2014).

In addition to the brokerage-sponsored education events, investors will probably want to take note of the Small Cap Conference coming up in Vancouver next week and also the CambridgeHouse International Investor Conference in early June – both of which will offer some opportunities to learn more about investing. Check out our investor education events calendar for more details on what’s being offered where & when.

The More the Scarier

This past week, Interactive Brokers released their trading metrics for the month of April and depending on the frame of reference there is either reason for applause or reason to pause.

When compared to the same point last year, Interactive Brokers trading volumes look stunning – 20% higher Daily Average Revenue Trades (DARTs), margin loans 34% higher than last year and the number of customer accounts 16% higher. On a monthly basis, however, the gains are more modest for margin loans and customer accounts (2% improvement), and there was a 1% dip in DARTs. Additional coverage in this article from CNN also reconfirms the signals from other brokerages that retail investors are stepping back into the market.

Veterans of the market understand that having more investors in the market means a good run for a while but also the likelihood of getting close to a top. Interestingly the impact that the returning retail investor may have on the deals and promotions is that brokerages may not have to aggressively price promotions – choosing instead to focus on other features to attract and retain new customers.

Picking the Top Discount Brokerages for 2014

As part of their June issue, MoneySense teamed up with financial analysis firm Surviscor to provide their annual “Best Canadian Discount Brokerage” checkup. Author Dan Bortolotti walks through the Surviscor results while providing insights across different metrics like ease of use, banking integration, customer service, fees & commissions, reporting & record keeping and market intelligence.

Interestingly, the paradox of the ‘best discount brokerage’ shows up here in two ways. First, there are so many ‘bests’ across different categories that it’s difficult to proclaim unequivocally that one brokerage is ultimately the best. What is ‘best’ for one investor may not be for another. Second, the data used to assess brokerages relies on history to infer quality about the present and/or future. While that’s usually what anyone has to go on, it has been our observation when looking back at the historical analyses of the best discount brokerage rankings from years past (whether quarterly or semi-annually) who get’s crowned ‘the best’ changes quite often. In other words, pricing, features and service quality are constantly changing so titles such as ‘the best discount brokerage’ have a short shelf life in such a competitive space. Nonetheless, Bortolotti and Surviscor offered their ‘top picks’ overall as BMO InvestorLine and Scotia iTrade, with honorable mentions going to RBC Direct Investing and Qtrade Investor.

From the Forums

This week we thought we’d do something a bit different and venture out to the far reaches of the internet onto Reddit to find out what folks were saying about Canadian discount brokerages.

In this post from the Canadian personal finance section, readers chime in on BMO InvestorLine and how it stacks up to some of its competitors. As fair warning though, Reddit can be quit the wild arena for discussion and oddities so take the comments with a grain of salt.

That does it for this week’s roundup. With a full dance card of thrilling events this weekend, good luck to the Habs & Raptors – May the Fourth be With You.

Posted on May 1, 2014 by user — 3 Comments

Discount Brokerage Deals & Promotions – May 2014

[Updated: July 10, 2014]

While many in the markets might be thinking of May as the time to head for the exits, it is interesting to see what is or isn’t being offered by Canadian discount brokerages in terms of deals and promotions. Heading into a new month, there were a few deals from April that were poised to officially expire, most notable among them the TD Direct Investing deal as well as the BMO InvestorLine 500/500 offer. Of the two brokerages, only the latter has put forward a new deal for the next 3 months – a signal that one of the bigger players is timing and structuring their offering around a typical slowdown in the activity level of account opens.

So, as we start May, it appears that most discount brokerage deals are in a bit of a holding pattern. There are still at least 12 promotions on the table from 6 brokerages so for those shopping around for an online trading account deal, there is a decent selection of offers to consider. And, with news about increased participation from retail investors back in the market, we expect brokerages to continue to compete for new clients with new offers in the not-too-distant future. As always, we’ll continue to monitor for new deals & promotions.

New Deals

Update May 20, 2014:

A helpful reader (thanks Pierre-Luc!) shared the news of another BMO offer aimed at higher account balances/deposits. The “Select1500” promotion provides $700 cash back for deposits of at least $700 and $1500 for deposits of $500,000 or more. See table below for more info.

Update May 18, 2014:

Questrade is offering a promotion of a $50 Amazon.ca gift card for clients who open and fund a new account with at least $5,000 and who make at least 1 commission generating trade. This promotion appears to be short lived and expires at the end of June 2014. See the table below for more details
BMO InvestorLine launched a new promotion aimed at younger investors (between the ages of 18 and 35) with an offer of 35 free trades and the chance to enter a contest to win $3500. Automatic entry to the contest is granted to those opening new non-registered accounts. Included as part of the deal is an investing eBook from the Globe and Mail. See the table below for additional details and deadlines.

The one deal that is new for this month is an offer (the 50/50 promo) by BMO InvestorLine. For self-directed investors, this is an interesting one in that the commission credit ($50) and number of free trades (50) is lower than the deal that just ended but BMO InvestorLine is offering a year-long subscription (~$240 value) to GlobeInvestor as part of the sign-up offer. The total face value of the offer works out to be just shy of $788.

Strategically this offer could work for or against BMO InvestorLine. Several of the other bank-owned online brokerages advertise in the Globe and Mail so providing new clients with more access to the paid-only GlobeInvestor means putting those same clients into a channel where other advertisers will be looking to win them back over. In one plausible scenario, it could prompt other brokerages to launch some headline grabbing deals between now and July which would certainly get those newly opened accounts thinking hard about the deal they were offered. We’ll certainly be watching closely to see what unfolds from here though.

Extended Deals

At this time it looks like most of the deals that weren’t set to expire at the end of April have expiry dates past May.

Expired Deals

[Update: July 10, 2014]

Editor’s Note: A representative from BMO Investorline has contacted us directly to let us know that the terms for the Select1500 and Select700 offers are being updated and that this will only be offered to select existing clients. As such we have removed this offer from the deals sections in which it appears.

The two big deals that expired at the end of April were the offers by TD Direct Investing and BMO InvestorLine respectively. TD Direct Investing also had an account transfer offer that expired along with their commission-rebate offer.

Discount Brokerage Deals

Brief Description	Minimum Deposit Amount	Commission/Cash Offer 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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform.	n/a	Discounted Commission Rates	none	For more details click here	none
For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer.	n/a	35 commission-free trades	90 days	Youth Promotion	October 31, 2014
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	none	none	none
Open an account with Virtual Brokers with a deposit at least $1,000 and Virtual Brokers will offer 25 commission free trades which can be used for up to 1 year. Use promo code “FTR2” when signing up. This offer is open to new clients only. Be sure to read the terms and conditions for full details on this offer.	$1,000	25 commission-free trades	365 days	25 free trades offer	June 30, 2014
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account.	$1,000	$50 commission credit (friend) $100 commission credit (referrer bonus)	60 days	Refer a friend	none
Open a new account (TFSA, Margin or RRSP) by July 1 2014 A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code QT100 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.	A)$1,000 B)$10,000	A)10 free trades B)100 free trades	60 days	100 commission-free trades	July 1, 2014
Open and fund a new account at Questrade with at least $5000 and place at least one commission generating trade, and Questrade will provide a gift card from Amazon.ca worth $50. Use promo code BONUS50 when signing up. Be sure to read the full terms and conditions for more information.	$5,000	$50 gift card from Amazon	Receive gift card after placing 1 commission generating trade	Amazon Gift Card Promo	June 30, 2014
As part of their Stockscores tour, Disnat Direct is offering a “hat trick” promotion. Open a new account with at least $10,000 by June 15, 2014 and receive: $300 in commission credits, 3 months of trading at $5 commission per trade, 3 months of platform access to DDWeb/DDXtra and 1 year’s free subscription to TradeScores daily newsletter. Use the promo code “Hat Trick” when registering via phone. Read the terms and conditions for more details.	$10,000	1) $300 commission credits 2) 3 months of $5/trade commission rate 3) 3 months platform access to DDWeb/DDXtra 4)1 year’s free subscription to TradeScores daily newsletter	1) 3 months	Disnat Direct Hat Trick Promotion	June 15, 2014
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	June 30, 2014
Open and fund a new Scotia iTRADE account with at least $15,000 before June 30, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions.	$15,000	100 commission-free trades ($999 value @ $9.99 commission rate)	60 days	Scotia iTrade 100 free trades + FlightDesk	June 30, 2014
Open a new account by June 29 & fund with: A) between $15,000-$99,99 B) $100,000-$499,999 or C)$500,000+ and receive either A)$50 cash back or 100 free trades B)$250 cash back or 250 trades or C)$500 cash back or 500 free trades. Also, Scotia iTrade is including 6 months free access to their FlightDesk trading platform. Use promo code: SPTRD14 for free trades and CSHSG for cash back. Be sure to read the terms & conditions on this deal.	A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+	A)$50 or 100 free trades B)$250 or 250 free trades C)$500 or 500 free trades	Cash Back: deposit by Feb 28/15 Commission Rebate: 90 days	$500 Cash Back or 500 Free Trade promo	June 29, 2014
Open a new qualifying account or fund an existing qualifying account by July 31, 2014 with at least $50,000 and BMO InvestorLine will provide a $50 cash back offer, 50 commission-free trades and a 1 year subscription to GlobeInvestor. Use promo code BONUS to qualify when signing up. Be sure to read full deal terms and conditions.	$50,000	$50 cash back 50 commission-free trades ($497.50 value) 1 year subscription to Globe Investor (~$228 value)	Cash Back: Payout after 6 months Commission-Credits: 50 days	Spring “New Investors” 50 50 Promotion	July 31, 2014
Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$50,000	$300 commission credit	6 months	Disnat $300 Commission Credit Promo	August 29, 2014
Open and fund a new account with Questrade before May 30th 2014 and receive either A)$100 or B)$250 cash back for a deposit of either A)$50,000 or more or B)$100,000 or more. This offer is open to new and existing clients. Use promo code CASHBACK250 to qualify. Be sure to read the full terms and conditions associated with this offer.	A)$50,000 B)$100,000	A)$100 cash back B)$250 cash back	Payout occurs within 30 days of account funding	Cash Back 250 Offer	May 30th, 2014
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.	A) $50,000 – $249,000 B) $250,000+	A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100	Payout occurs after 60 days (subject to conditions).	Refer A Friend Terms & Conditions	October 31, 2014

Transfer Fee Deals

Brief Description	Maximum Transfer Fee Coverage Amount	Minimum Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
Tranfer $15,000 or more and Scotia iTrade may cover up to $150 of the transfer fee.	$150	$15,000	$500 Cash Back or 500 Free Trade promo	June 29, 2014
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
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	none
Virtual Brokers will cover transfer fees from your transferring institution to a maximum of $150 per account. This offer is only applicable to accounts opened with at least $25,000 in equity before June 30, 2014	$150	$25,000	Transfer Fee Promo	June 30, 2014
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
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.	$125	$25,000	Transfer Fee Promo	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 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$150	$50,000	Disnat $300 Commission Credit Promo	August 29, 2014

Posted on April 25, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – April 25, 2014

When taking a position in a trend, timing is everything – just don’t tell the folks sporting a playoff beard about ‘peak beard’ though. As we wind through earnings season, it looks like more than a few traders may be trimming positions as well as beards as markets round out the week slightly in the red.

Unlike markets, this past week showed that several discount brokerages appear to be very much in the green as retail investors appear to continue the march back into the stock markets. This week also showed how a pair of Canadian online brokerages aren’t afraid to tackle the idea of commitment. The first of the pair took a look at a financial plunge many Canadians take with weddings. The second discount brokerage looked at a big commitment of another kind as they launched their new career oriented social media channel. Finally, we round out with a pair of interesting forum posts and some very bad investing advice from a new Nike commercial.

Guess Who’s Back?

From time to time we look to the activity of US investors to serve as a proxy for what might be happening with Canadian investors also. The most recent earnings figures from several of the major publicly traded US discount brokerages that came out this past week painted a relatively positive picture with strong results being posted across the board at TD Ameritrade, Schwab and E*TRADE.

Having Your Cake and Paying For it Too

A recent study sponsored by BMO InvestorLine also caught our eye this past week as it took a look at the financial plunge associated with taking the big plunge. In their news release, BMO InvestorLine reported that, on average, Canadians fork over $15,000 for a wedding, with those between the age of 18 and 44 reporting an average spend of $18,150. Fascinating as the study was, we’re not sure if many Canadians are as committed to their discount brokerages as they are to their spouses.

#WorkHardForTheMoney

In an interesting move Questrade took its talent scouting social this past week by launching their own career-focused Twitter handle @QuestradeCareer. While there may be some relation to the health of brokerages in the US, the decision to be hiring is a signal that brokerages may be doing ‘ok’ on this side of the border. Over the past several months, there have been a number of positions advertised at several discount brokerages to attract and retain talent, which is evidence of yet another area in which Canadian discount brokerages may be competing with one another.

From the Forums

In addition to being a somewhat quiet week around the discount brokerage space, the investor forums also showed a bit of a dip in terms of chatter about brokerages and markets. Nonetheless, the following two discussions were shareworthy.

ETFs vs Stocks

In this post from the Financial Wisdom Forum, an interesting discussion about the pros and cons of individual stock ownership vs. using ETFs. This thread was particularly noteworthy because it highlighted that there’s a case to be made for each and which of the two is “ideal” really depends on an individual’s situation and goals.

A Penny Stock Saved

This thread from RedFlagDeals’ forum started out as a story that one user shared about their experience trading penny stocks with TD Direct Investing. What ensued from that, however, was an interesting discussion between community members on trading in penny stocks (for better or worse) at several different Canadian online brokerages.

That’s a wrap for this quick version of the roundup. Of course as we point out from time to time, sports and competition can be a great learning space for investing do’s and don’ts. Every now and then, however, there’s a big neon sign that flashes ‘don’t do it’. One of those messages comes courtesy of a really entertaining Nike soccer ad that encourages individuals to #riskeverything – to which we have to #HumblyDisagree. Hope you’re weekend is a ball!

Posted on April 11, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – April 11th 2014

Between a few days of markets selling off and glitch named ‘heartbleed’ that is turning the internet upside down, it has been a tough week for anyone sitting behind a screen. For those with a view of the outdoors, however, it has probably been even tougher as the nice weather has finally started to show up in Montreal and Toronto (save the bragging Vancouver). The online brokerages may have to wait to get outside, however, as many of them were very busy this past week dropping prices, introducing products and navigating the ‘busy season’ for investors.

In this week’s roundup we look at an interesting trend highlighted by one of Canada’s largest discount brokerages. Next we look at another cost reducing product for investors, this time in the mutual fund space. A pair of updates to the deals section takes us to the halfway point. For TFSA holders, we found a great video offering tips for those trading US stocks with dividends. Finally we round out with some interesting tweets that we spotted as well as some informative forum threads.

Thoughtful Thirties

There’s something about turning 30 that makes people, and discount brokerages, a little more reflective. This past week, as part of their 30^th anniversary, TD Direct Investing reflected on how the profile of the ‘typical’ investor has changed since the launch of their discount brokerage service in 1984. As part of their news release, TD Direct Investing highlighted that online investors are more diverse with younger investors and women investors forming a greater percentage of the investing population. The timing of this announcement was interesting as there were two separate articles that also highlighted the growing interest and perhaps the advantage that younger investors have in the online trading space.

Mutually Assured Discount

BMO InvestorLine recently announced the roll out of a new group of 33 discounted mutual funds, known as Series D, to online investors. Also in the announcement was the news that management fees were being lowered on the Series F products. The move by BMO InvestorLine into the low-cost mutual fund arena appears to be in line with both RBC Direct Investing and TD Direct Investing in this space.

Discount Brokerages Dealing Back In

A pair of moves in the discount brokerage promotions section over the past week signaled that competition for clients remains high.

Starting with Questrade, they have taken a seat back at the $100,000 table by introducing a cash back offer of $250. Their iPad mini offer (or cash back) offer for deposits at this level recently expired however this latest move looks like they’re interested in buying back in.

BMO InvestorLine also checked on their $300 + 300 trade offer by further extending the deadline for this deal from April 9^th to April 30^th.

Little Birdies

Birds chirping is a great sign of spring. Online however, tweets from investors across the Twitterverse can be a little less delightful. This past week there were a couple of interesting moments we spotted. First, as Questrade found out, even though the ice on the sidewalks is gone, there’s still room for tax slips to cause problems. Of course, with the warmer weather also comes a bit of heat – which is what one twitter user sent Scotia iTrade’s way when asking about the ability to route orders to the new ‘HFT – free’ exchange IEX.

No Party in the TFSA

While Miley Cyrus may enjoy rocking out in the USA, having US dividend paying stocks in a TFSA is a bit of a portfolio wrecking ball. The following video from Rob Carrick and the Investor Education Fund provides a quick overview on how to navigate the tricky waters of withholding taxes and registered accounts.

From the Forums

Bucking a Fee

In the following post from RedFlagDeals, community members were alerted to an interesting observation from an Interactive Brokers Canada client – namely that minimum monthly fees of $10 appear to be waived for clients with assets over $100,000.

D is for…

The announcement by BMO InvestorLine of a low cost mutual fund series that could rival either TD or RBC was certainly enough to get the discussion going on the forums. Interestingly while the announcement caught the attention of forum members, so too did the way in which the roll-out took place.

That does it for this week’s roundup. For those in the west – enjoy the summer, and for those in the east, brace yourselves for a potential dusting. Yes, April is still full of surprises all around. For those trying to make sense of all the heartbleed hype, here is a comical explanation: