Tag: National Bank Direct Brokerage

National Bank Direct Brokerage

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Discount Brokerage Deals and Promotions – December 2014

*Updated Dec. 17, 2014*

With the start of December coming on the heels of two of the biggest deals days of the year, the Canadian discount brokerage deals & promotions section is filled to the brim with offers from online brokerages. Unlike the pictures on television or Twitter, however, there was no crush of people attempting to get in on a sale on a brokerage account – although that didn’t stop at least one brokerage from trying to catch the deal-frenzy wave.

Heading into the last month of the year, the deals activity did pick up slightly through November with three updates to the deals pool. Most notably, an offer from RBC Direct Investing was spotted that signals their re-entry into the promotions space until the end of this year.

At the outset of December, it appears that Questrade has continued with its strategy of offering up promotions/incentives that are timely, as they launched a holiday-themed offer alongside several of their existing offers.

Of course, the news wasn’t all cheerful for deals, as a pair of offers from TD Direct Investing and Questrade ended by the time December rolled around as well as the iPad Mini offer from Questrade.

The last month of the year is also a bit of a milestone month for many active offers. There are at least 7 offers that are set to expire by year’s end signaling a potentially exciting start to 2015. That said, there’s still lots of time left for some interesting announcements to be made. So even though we’ve made this list, we’ll be checking it twice, and, hopefully we’ll find something nice.

Expired Deals

The deals that expired coming into December were the monster offer by TD Direct Investing for 200 commission-free trades and Questrade’s 100 commission-free trade offer. Also on the way out (for now) was the iPad Mini deal from Questrade.

Extended Deals

While it was left off the deals section for some time, the Scotia iTrade refer-a-friend deal finds its way back onto the list as the expiration date has been updated/extended until the end of December.

New Deals

*Update: Dec. 17, 2014 – National Bank Direct Brokerage has just announced a huge commission rebate offer of up to $1,000 for deposits of $100,000 or more or $500 for deposits of $20,000 or more.  NBDB has been quiet in terms of deals for several months, however this newly launched promotion is a significant one compared to other offers in the same deposit range.  The offer is open to new and existing clients however according to the terms and conditions, individuals who have participated in any other promotions with NBDB since January 2014 are not eligible.   Also worth noting, the total amount of the rebate includes any transfer rebates (of up to $135) that individuals may take advantage of if switching providers. This means that the amounts remaining (if using the transfer fee rebate) would be at least $365 or $865 (depending on the deposit size). The window for rebates to be applied are subject to a schedule outlined in their terms and conditions, however essentially qualified clients can have trade commissions (stocks, options & ETFs) made within 90 days of opening the account refunded. The terms and conditions are remarkably brief so be sure to read them through if considering this offer. Additional details are in the table below.*

The newest promotion at the outset of the month comes from Questrade in the form of a ‘holiday’ themed offer. Questrade is offering new and existing clients up to 30 commission free trades for a deposit of at least $1,000. The commission-free trades are good for 30 days – just in time for that other season trader’s know comes this time of year – tax loss selling season.

The deals that joined the list of offers mid-month last month included offers from BMO InvestorLine for 5 commission-free trades for using their new mobile app; RBC Direct Investing’s offer (mentioned above) of 20 commission-free trades for a new account opening and finally a cash-back offer by Questrade to compete at the higher deposit levels.

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion January 5, 2015
Individuals opening a new account with RBC Direct Investing by December 31st may be eligible to receive a commission-rebate on their first 20 trades. Use promo code QC20 or visit the info page link for a valid code. Be sure to read the terms and conditions on this offer. n/a 20 commission-free trades 90 days Full offer information can be found here . For terms and conditions information click here. December 31, 2014
BMO InvestorLine Download the BMO InvestorLine iPad app and you could qualify for up to 5 commission-free trades. This offer is open to new and existing clients and can be combined with other offers. Clients must have a qualifying account in order to be eligible. Read full terms and conditions for details. n/a 5 commission-free trades ($50 max value) 30 days Tablet Trades Promotion January 5, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open a new account (TFSA, Margin or RRSP) by December 30 2014 with a deposit of at least 1,000 and you could be eligible to receive up to 30 commission-free trades with 30 days of opening/funding your account. Use promo code 30trades2014 when signing up. Be sure to read terms and conditions for full details. $1,000 30 commission-free trades 30 days 30 commission-free trades December 30, 2014
Open a new account (TFSA, Margin, RRSP or FX/CFD) and place at least one trade within 60 days of opening and you may be eligible to receive a $50 prepaid Visa card from Questrade. Use promo code VISA50. Be sure to read terms and conditions for full details on this offer $5000 $50 Visa gift card Cards will be mailed within 40 business days of reaching account funding requirement. $50 Prepaid Visa Card Offer December 31, 2014
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A)$10,000 B)$50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade December 31, 2014
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $15,000 before December 31, 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 December 31, 2014
Scotia iTrade Open a new account with Scotia iTrade with either A) $15,000 – $99,999 B) $100,000 – $499,999 or C) $500,000+ and you may be eligible to receive either A)100 free trades or $50 cash B)250 free trades or $250 or C)500 free trades or $500 cash. Accounts must be opened prior to December 31st, 2014. New clients use code: FATD14E for free trades and code: MONF14 for cash back. Existing clients must call client service (1-888-769-3723) to qualify. Be sure to read terms and conditions regarding minimum balance requirements and other details. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trades or $50 cash B) 250 commission-free trades or $250 cash C) 500 commission-free trades or $500 cash For commission-free trades: 180 day limit For cash back: payout occurs by August 31, 2015 Cash back + Free trade offer December 31, 2014
Open a new account and fund it with at least (A) $20,000 or (B)$100,000 and NBDB may provide up to (A) $500 or (B) $1,000 in commission rebates for qualifying accounts. Use promo code “CashBack2015” when signing up. Be sure to read the terms and conditions for eligibility and refund dates. A)$20,000 – $99,999 B)$100,000+ A)$500 commission rebate B)$1,000 commission rebate 90 days (rebate of commissions depends on sign up date and is outlined on terms/conditions) Cash Back Offer March 31, 2015
Open a new account or fund an existing account at CIBC Investor’s Edge with at least A)$25,000-$49,999 B)$50,000 – $99,999 or C)$100,000+ and you may be eligible to receive A)$100 cash back and 25 free trades; B)$200 cash back and 50 trades or C)$300 cash back and 100 free trades. Be sure to read the terms and conditions for full details on this offer. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,00+ A) $100 cash back + 25 commission-free trades B) $200 cash back + 50 commission-free trades C) $300 cash back + 100 commission-free trades Cash back payout occurs within 30 days of account funding; Time limit to use commission free trades is 60 days Investors Edge Cash Back and Free Equity Trades Offer February 28, 2015
Disnat Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $50,000 $300 commission credit 6 months Disnat $300 Commission Credit Promo December 31, 2014
Open and fund a new account at Questrade with at least A)$50,000 or B)$100,000 by December 30, 2014 and you may be eligible to receive either A)$100 cash back or B)$250 cash back. Use promo code: CASHBACK250W when opening the account. Be sure to read the terms and conditions for full details. A)$50,000 B)$100,000 A)$100 cash back B)$250 cash back Cash back payout occurs after 60 days. Questrade Cash Back Offer December 30, 2014
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,000 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). Contact InvestorLine for full terms and conditions. October 30, 2015
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $250 cash back and a rebate of commissions on up to 25 trades made within 50 days of opening the account. Use the promo code SMILE when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $250 cash back + 50 commission-free trades (rebated) 50 days (payout for cash back and commission rebate occurs after 6 months) Smile Promotion January 18, 2015

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to Credential Direct and they will pay the transfer-out fees up to $150. If you wish to switch out of Credential Direct after 90 days they will waive their transfer out fee. See link for more details. $150 $15,000 Transfer Free Promo December 15, 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
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 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 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 December 31, 2014
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Discount Brokerage Weekly Roundup – November 21, 2014

What do shows like Big Bang Theory, Dancing with the Stars and Sons of Anarchy have to do with Canadian Discount Brokerages? Well, if you guessed fall ratings then Bazinga!

Finding the right metric to judge the ‘best TV show’ is easier in some respects than finding the “best online brokerage”. As we move into the unofficial ratings season for the brokerages, however, prepare for all kinds of plot twists.

In this week’s roundup, we take a look some of those twists, first by reviewing the latest online brokerage rankings to be published. Next we take a look at the interesting news coming out of the wealth management space with a major move by one online brokerage stepping out of the frying pan and into the fire. Finally we take a quick tour through the investor education events being held in late November and close out with a couple of interesting brokerage-focused forum discussions.

Best Online Brokerage Rankings Kick-Off

For consumers, when evaluating who Canada’s best online brokerage is, it is essential to understand the ranking system used. As we’ve highlighted in the past, there are several rankings and ratings that each measure and define “best online brokerage” or some variation of “best” (like “top” or “#1”) in many different ways.

Surviscor 2014 Rankings of Canadian Online Brokerages

This past week, financial services ratings firm Surviscor released their latest edition of rankings of Canadian online brokerages. BMO InvestorLine ranked the highest according to the Surviscor criteria (earning a score of “90%”), followed by Scotia iTrade (“84%”) and then Credential Direct (77%). As we’ve done with other rankings and ratings of Canadian online brokerages, we drilled down into the the scores and stats for a better picture on what these results tell us.

One of the first things that jumped out was how everyone else did in the rankings. The average score of the group was 68% with the standard deviation coming in at just under 16%. What does all that math mean (no pun intended)?

The rankings for the whole field show there are many companies clustering around the average score. We interpret this to mean that most of these companies are pretty close to one another except for some very clear outliers (to the downside): Laurentian Bank’s discount brokerage and HSBC InvestDirect (which interestingly placed near the top in Dalbar’s rating for client service but near the bottom when evaluated by Surviscor).

When we dropped these two firms from the rankings, the distance between first and last narrowed substantially and the differences between the online brokerages became even less numerically significant. For example, the difference between 3rd place and 8th was a difference of 7%.

With a race this close, small changes in features, especially those that impact the heavily weighted categories within this evaluation could have an outsized effect. For example, account services, cost of services and getting started are collectively responsible for 60% of a firm’s result.

Also, with changes happening constantly taking a snapshot of who the “best” online brokerage is (or was) as of a certain point in time of the year doesn’t necessarily hold true several months down the road.

So, while BMO InvestorLine did score well in this analysis, their victory may be short lived. There are already changes within their own firm as well as with their competitors that could disrupt those results at any moment.

Handling Change

While they were alluding to something big last week via social media, this past week Questrade officially launched their new wealth management division and reconfigured their website in the process.

Questrade has officially added managed wealth into their service mix, and in doing so, has definitely got the attention of brokerages big and small.

There are many angles to this recent announcement that can’t be squeezed into the roundup – so stay tuned for more perspective on Questrade’s recent move. One that stands out is that Questrade has been incredibly busy pulling together information for this launch, which has seen them go on an all out social media blitz on YouTube, Twitter and Reddit.

So, even though the headline here is definitely the shift into a new service line, one of the more curious aspects is their marketing and communications.

Questrade has assembled a lot of videos and content related to their products and services, as well as positioned themselves across many online (and traditional) channels. The scale of this effort is something that even the larger bank-owned brokerages are having trouble contending with.

What this means for online brokerage consumers is that they will likely be seeing Questrade in more places than ever before. The challenge, however, is going to be establishing and communicating what Questrade should now be known for as the shift away from being known for DIY investing exclusively has pitted them against an even wider field of competitors.

Event Horizon

November closes with an flurry of educational events. Enjoy.

Nov 25. (Tue) NBDB – Introduction to technical analysis: Trends – [Fr]

Nov 25. (Tue) Scotia iTrade – Leveraged and Inverse ETFs with Horizons ETFs

Nov 25. (Tue) NBDB – Technical analysis – [Fr]

Nov. 26 (Wed) NBDB – Day Trading – [Fr]

Nov. 26 (Wed) Scotia iTrade – Introduction to Canadian ETFs and ETF Options with Montreal Exchange (online)

Nov. 26 (Wed) TD Direct Investing – Introduction to Fundamental Analysis

Nov. 26 (Wed) Desjardins Online Brokerage (Disnat) – Trading ETFs with Desjardins Online Brokerage

Nov. 26 (Wed) TD Direct Investing – Options as an Income Strategy

Nov. 26 (Wed) TD Direct Investing – Do-It-Yourself Investing for Women

Nov. 27 (Thur) NBDB – Introduction to technical analysis: Supports and resistances – [Fr]

From the Forums

 On Cue

Although this is not one of the most popular comparisons, it was worth mentioning for two reasons. First, it’s an example of brokerages being compared head to head but also of where one brokerage is prepared to venture into so that they can reach those interested in their brand.  Check out this post for an interesting comparison of Questrade vs Qtrade and the comments (and commentators) on each.

Calculated Move

So, it seems like everyone is talking about Robo-advisors.  And, as they start to make their presence felt here in Canada, this post from the reddit personal finance Canada thread showcases one attempt to start comparing them.  Again, it looks like Questrade is all over this Reddit section with their newly released portfolio IQ figures in hand.

That’s a wrap for this week’s roundup.  It’s been an exciting week all around and for those who’ve made it this far, here’s a little treat from 30 Rock’s Tracy Jordan on how to handle this (and every) week ahead.  Have a great weekend!

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Discount Brokerage Weekly Roundup – November 14, 2014

This week has been one of milestones, or as we might say here in Canada, kilometer-stones. Perhaps the biggest stone of all with all of the kilometers or miles behind it was the first ever landing of a probe on a comet hundreds of millions of kilometers away.

Back here on Earth, investors this week apparently also had stars in their eyes. The big news from the US was markets touching new all-time highs, however even a Canadian marketplace, the Canadian Securities Exchange (CSE) crossed the 2 billion shares traded mark within a year; the first time that securities exchange has done so.

Not to be outdone, Canadian discount brokerages also had some technical achievements to marvel and tweet over.

In this week’s roundup we take a look at a new trading platform being launched into the mix by a bank-owned brokerage. Next we look at a marathon effort on social media from another brokerage that has earned them a bit of distinction from their online peers. On the home stretch will be a quick highlight of an article focusing on the power of communal advice. Finally we’ll showcase upcoming investor education events and close out with some investor banter from the forums.

BMO InvestorLine’s New Trading Platform: BMO Market Pro

BMO InvestorLine quietly rolled out their newest platform offering this past week – BMO Market Pro. After months in development it was interesting to see the soft-launch take place for this platform.

So, why a fancy trading platform?  

In a bid to compete with their bank-owned direct brokerage peers, BMO InvestorLine is throwing a more sophisticated order entry interface into their mix to attract and appeal to clients who want the bells and whistles. More importantly, they don’t want their clients who want those features to be wandering elsewhere to get them.

While public details on the platform are few, here are some early details. BMO Market Pro will include real-time data and analysis and also streaming charts with technical analysis studies. For individuals trading 30 times or more in a quarter (i.e. spending about ~$100/month on average in commission costs) or who maintain a balance of at least $500,000 the data fees for this platform are waived.

The trading platform is a very interesting battleground that we mentioned this past summer and with BMO Market Pro, it enables BMO InvestorLine to better compete against a similarly featured Scotia iTrade platform as well as some of the smaller players who rely on platforms as a key selling feature.

If history is any precedent, however, we anticipate a much larger splash to be right around the corner. Hopefully, however, the team at BMO InvestorLine can take a cue from US online brokerage Tradestation’s commercials from a few years ago (see the end of this week’s roundup for the video).

One Small Tweet for Brokerage-Kind

#Props must be given to the social media team at Questrade. Unlike several of their peers on Twitter, Questrade has been quite persistent in their efforts to be visible and relevant on social media.

Although we don’t typically report it, it is something we monitor. And, the reason that we mention it here is that they’ve done something that is worth commenting on out loud. Images from Questrade’s twitter feed are showing a lead up to a ‘special announcement’ on Nov. 17th.

The lead up itself is noteworthy as it takes the combination of personality and medium in an interesting direction. Equally interesting is that this announcement could be in line with earlier hints from Questrade’s CEO and posts on the Questrade blog as well as a lot of hype about advisors (and robo-advisors) of late.

What does it all mean?

While just speculation at this point, the addition of a wealth management arm does imply that this could be another area that Questrade is hoping to capitalize on while the interest level in this space continues to heat up. And, they wouldn’t be the first discount brokerage to make such a move.

For some context, the largest brokerage in the US Charles Schwab just announced that they would no longer be reporting monthly trading stats (boo) but as far as optics and brand identity go, they are looking to shift the perception of their business away from discount brokerage and towards wealth management (and full service). They also recently rolled-out robo-advisors in a big way.

The fact that we’re talking about it may be proof enough, however the fact that Questrade has teamed up with a popular Twitter personality means that they may have a little social media comet dust of their own with this next announcement and business direction.

More Than Just Cat Videos

Reddit brands itself as the ‘front page of the internet’ however there is definitely a sense of being an information frontier.

In a special piece we published this past week, we take a look at the growing influence of a popular Reddit thread, Personal Finance Canada (PFC). We also had the opportunity to interview one of the forum’s moderators to get a unique perspective on what draws people into the community space and what motivates the people who run it to keep going. Click here to read the full article.

Event Horizon

There’s lots going on with investor education related events this week, including the Desjardins Online Brokerage Stockscores tour.  Ready, Set, Scroll.

Nov 15. (Mon) Desjardins Online Brokerage (Disnat) – Coast to Coast Stockscores Tour – Edmonton

Nov 17. (Mon) Desjardins Online Brokerage (Disnat) – Coast to Coast Stockscores Tour – Calgary

Nov 17. (Mon) Desjardins Online Brokerage (Disnat) – Coast to Coast Stockscores Tour – Calgary

Nov 18. (Tue) Scotia iTrade – Day Trading with Pro Market Advisors

Nov 18. (Tue) TD Direct Investing – Minimum Volatility Investing

Nov 18. (Tue) TD Direct Investing – Introduction to Technical Analysis

Nov 18. (Tue) NBDB – Managing risk while investing in stock

Nov 18. (Tue) Desjardins Online Brokerage (Disnat) – Coast to Coast Stockscores Tour – Calgary

Nov 19. (Wed) NBDB – Mastering Technical Analysis for Trading Success – [Fr]

Nov 19. (Wed) TD Direct Investing – Introduction to Fundamental Analysis

Nov 19. (Wed) Desjardins Online Brokerage (Disnat) – Coast to Coast Stockscores Tour – Burnaby

Nov 19. (Wed) NBDB – Find trading opportunities using technical analysis

Nov 19. (Wed) Scotia iTrade – Getting Started With ETFs with iShares

Nov 19. (Wed) TD Direct Investing – Investing in a context of rising interest rates – [Fr]

 Nov 19. (Wed) Desjardins Online Brokerage (Disnat) – Coast to Coast Stockscores Tour – Burnaby

Nov 20. (Thur) NBDB – Take advantage of margin accounts – [Fr]

Nov 20. (Thur) TD Direct Investing – Unlocking the Value of your Locked-In RSP

Nov 20. (Thur) Scotia iTrade – Charts and Patterns 101 with AJ Monte

Nov 20. (Thur) Desjardins Online Brokerage (Disnat) – Coast to Coast Stockscores Tour – Surrey

From the Forums

TFSA SOS

This past week in the investor forums was noticeably quieter. That said, here was one particular thread that points to an investor who is opening their first TFSA and decided to ask the community of investors on Reddit for some advice. Click to see what the readers offered up.

Anonymous  Advice

As an add-on to our special on the personal finance Canada thread on reddit, this post on the forum captured the reactions and conversation that surrounded the topic of taking the advice of strangers.  There’s also a cool link in there to a ‘Because Money’ episode.

And that’s a wrap for this week’s roundup.  Congrats for making it through this week and and this roundup! Here’s some fun discount brokerage marketing from the US which may or may not inspire some Canadian brokerages to become a whole lot more entertaining.  Have a great weekend!

 

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Discount Brokerage Weekly Roundup – November 7, 2014

November is Financial Literacy Month and with it has come a number of events geared towards helping Canadians better understanding and manage their personal finances. There’s also another growth-oriented spin to November – facial hair, as it also happens to be Movember. While we have yet to see too much in the way of wacky mustaches (it’s still early though), Discount brokerages appear to have hopped onto the investor education bandwagon in a big way.

In this week’s roundup, we take a moment to walk visitors and readers through one of our most exciting projects (and acronyms) of this year, AXIS. Next, being the beginning of a new month, we’ve got a quick recap of the latest offers and promotions being pitched by Canadian brokerages.  We’ve finally made it through the pile of education events being offered this month and provide an overview of interesting observations as well as bring back the Event Horizon from a week’s hiatus. Finally, we are excited to loop the SparxTrading community activity into the forum posts that caught our attention over the past week.

There is no Community Without U and I

One of the reasons marketplaces of all kinds are so exciting is because they bring together different, sometimes opposing, interests.  But, as any seasoned investor or trader knows, it takes two sides to make a market.

If you’ve ever stared at the strangely hypnotic stream of market data quotes and marveled (or gasped) at the way in which buyers and sellers connect then you’ll probably appreciate the symbolism behind the SparxTrading.com logo letter X.

Why the diatribe on logos and symbols? At the heart of the logo is the idea of convergence – of bringing investors, providers, opinions and facts together into the same space.

In line with the theme of this year’s financial literacy month theme of strengthening financial literacy through collaboration, our latest feature launch, AXIS (which stands for Answers, eXperiences, Insights and Sharing) is the next step in the evolution our site.

We believe that by creating and caring for a space for the community of online investing stakeholders, from investor to provider, the quality of the online investing experience and understanding will improve for all.

Over the next several weeks, while the platform is in beta testing, we will include highlights and information on AXIS in the roundup.  We encourage all visitors to sign up and contribute their experiences, questions, answers and perspectives for the betterment of online investors everywhere.  Click the following link to access our community page.

Cold Weather, Warm Deals

At the outset of another month, we’ve surveyed the Canadian discount brokerage deal landscape and packaged all of the published offers we’ve found into our deals section.

This month the deals and promotion activity looked fairly healthy with 13 (and a possible 14th to be confirmed soon) offers on the table. Of these only two are scheduled to expire before the end of November meaning that DIY investors have a bit of time to shop around.

The deals that are set to expire this month come from TD Direct Investing and Questrade.  Of the two, TD has not historically offered as many deals during the year so those on the fence may want to weigh that into their decisions as the deadline approaches.

Making the Grade

One of the interesting observations from the list of this month’s investor education events is just how many providers are offering intensive education.

This month, Desjardins Online Brokerage’s educational partner Stockscores (and its founder Tyler Bollhorn) will be going on a ‘Coast-to-Coast’ intense Canadian tour. For those who haven’t attended a session with Tyler Bollhorn and are interested in Technical Analysis/Trading, this is an interesting and ‘beginner friendly’ session.

Desjardins isn’t the only brokerage also sponsoring a national investor education roadshow.  Scotia iTrade along with Larry Berman’s Independent Investor Institute are also taking their investor education seminar back and forth across the country this month.

Interestingly, National Bank Direct Brokerage is stepping up their educational offering by partnering with educational providers from Learn to Trade Global (who are partners with the Montreal Exchange teaching many of their options courses for DIY investors) as well as a Quebec based firm Decision Plus.  New to the lineup of offerings from NBDB are paid investor education courses.  Clients of NBDB, however, may be eligible for reimbursement of certain sessions in the form of trade commission credits.

While TD Direct Investing still offers the most investor education events this month, it looks as if they are looking over their shoulders a lot more as other brokerages are holding special events across the country to make up for the lack of physical branch presence.

Discount Brokerage Rankings

Speaking of grades, there are only a couple of weeks until Rob Carrick’s annual online brokerage rankings are set to roll out.  Brokerages and online brokerage enthusiasts are keeping an eye out for who will wear this year’s crown.

The Globe and Mail online brokerage rankings won’t be the only broker rankings/ratings to be unveiled later this month.  Morningstar Canada, as part of its investment awards gala, will announce their ‘best online brokerage’ award at a ceremony to be held November 26th.  Unlike other rankings/ratings brokerages pay to participate in the Morningstar rankings so depending on who decides to participate, the field of brokerages covered may be narrower than other rankings.

Event Horizon

Nov 8. (Sat) – Desjardins Online Brokerage – Coast to Coast Stockscores Tour

Nov 10. (Mon) – Desjardins Online Brokerage – Coast to Coast Stockscores Tour

Nov 12. (Wed) – Scotia iTrade – Building a Collar with Montreal Exchange

Nov 12. (Wed) – TD Direct Investing – Options Trading Mistakes to Avoid

Nov 12. (Wed) – TD Direct Investing – Understanding Margin & Short Selling

Nov 12. (Wed) – TD Direct Investing – Dividend Investing using ETFs

Nov 12. (Wed) – NBDB – Technical Analysis – [Fr]

Nov 13. (Thur) – TD Direct Investing – Options Strategies for your RSP & TFSA

From the Forums

Penny Wise

In this week’s forums sweep, we take a look at an interesting question one SparxTrading.com visitor asked about deep discount brokerages and how they can afford to stay in business with ultra low commissions. Check out the full question and answer here.

Prose on Pros

Talking about advisors is all the rage right now in the investment community. While most of the discussion has been about robo-advisors, there are still lots of folks who swear by the human touch.  In this post from the Reddit Personal Finance Canada thread, a user wants to find out what the community had to say about using professional advisors.

For the Record

Most people know that there is no such thing as a free lunch. The same applies to services offered by financial institutions, even when it comes to record keeping. If there’s one thing folks should count on its that those who run financial institutions for a living like to count things, including the cost for services. In the following post from RedFlagDeals’ investing forum, one visitor wondered aloud about where the fees for record keeping come from at financial firms.  Check out what the community had to say in response.


That’s a wrap for this first week of November roundup. While many of us have heard that money doesn’t grow on trees, there are many homeowners out there that can vouch for what does grow on trees (and where it all seems to land).  Have a great weekend either admiring the fall colours, trying to keep them off your lawn or thoroughly enjoying making a mess!

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Discount Brokerage Deals and Promotions – November 2014

*Updated Nov. 25* November is the month that many bargain hunters wait for all year long. The phenomenon of ‘Black Friday’ has taken on a life of its own with anybody who sells anything trying to ride the wave of deal hunter enthusiasm. Traditionally Canadian online brokerages have avoided the big discount day type of promotion, however last year Questrade jumped into the Boxing Day deal game with their own special promo. Given some of Questrade’s recent hints of upcoming service launches as well as the timing of expiry of an existing offer in late November, this month could herald a number of surprises.

While it is becoming a familiar refrain at the beginning of the month, no ‘new’ deals launched at the outset doesn’t mean that more aren’t coming. Heading into November the theme appears to be extending current offers, with at least 7 offers going to the end of this year if not out into early 2015.

There are offers that we’re already aware of that we’re working to get additional details on so there will be updates to this section you’ll want to check back for soon. In the meantime, let’s dive in.

Expired Deals

Technically speaking, only one deal met this criteria, and it is a familiar one in this section. Scotia iTrade’s “refer-a-friend” offer is posted on their website as having expired (at the time of writing this post) however historically it has yet to be allowed to stay there for too long.

Extended Deals

There were a number of extensions on offers which came mostly from BMO InvestorLine this month. Their young investor (yes up to age 35 is considered young) promotion has been extended through to January 2015 as has their ‘Smile’ promotion. BMO InvestorLine’s refer-a-friend offer has also been extended to October 2015 however the terms/conditions for this offer are only accessible to clients at this time so, although we mention it in our selection below, there won’t be a link to the terms/conditions page.

New Deals

*Update Nov. 22* BMO InvestorLine has launched a promotion to encourage its users to download and try the mobile/iPad app. BMO InvestorLine is offering qualified individuals up to 5 commission free trades within 30 days of downloading the app.  The 5 free trades offer is open to new and existing clients and can be combined with existing offers so it is possible to ‘stack’ this deal on top of another.

*Update Nov. 18* RBC Direct Investing  commission-free trading promotion for new account openings has been added to the mix. Specifically, qualified applicants can receive their first 20 trades (placed within 90days of opening the account) commission-free. See table below for additional details.

*Update Nov. 18* Questrade has also launched yet another deal this month – this time a cash-back offer.  Individuals can receive either $100 cash back or $250 cash back depending on the deposit they place into their account.  Individuals who sign up for this promotional offer will have to maintain the qualifying balance for a period of 6 months. See table below for additional details.

There are no new deals released at the outset of November however the offer from CIBC Investor’s Edge following their price drop was one of the biggest to land on the playing field. Questrade also offered up a $50 Visa gift card which we’re including in this month’s list of promotions. There is also another offer that we know of from a popular brokerage (that we can’t name yet) that we expect to announce as soon as we’ve got confirmation on terms and conditions.

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion January 5, 2015
Individuals opening a new account with RBC Direct Investing by December 31st may be eligible to receive a commission-rebate on their first 20 trades. Use promo code QC20 or visit the info page link for a valid code. Be sure to read the terms and conditions on this offer. n/a 20 commission-free trades 90 days Full offer information can be found here . For terms and conditions information click here. December 31, 2014
BMO InvestorLine Download the BMO InvestorLine iPad app and you could qualify for up to 5 commission-free trades. This offer is open to new and existing clients and can be combined with other offers. Clients must have a qualifying account in order to be eligible. Read full terms and conditions for details. n/a 5 commission-free trades ($50 max value) 30 days Tablet Trades Promotion January 5, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open a new account (TFSA, Margin or RRSP) by November 20 2014 A) $1000 or B) $10,000 to receive either A) 10 commission-free trades or B)100 commission-free trades. The promo code 100LOWCOM14F 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 November 20, 2014
Open a new account (TFSA, Margin, RRSP or FX/CFD) and place at least one trade within 60 days of opening and you may be eligible to receive a $50 prepaid Visa card from Questrade. Use promo code VISA50. Be sure to read terms and conditions for full details on this offer $5000 $50 Visa gift card Cards will be mailed within 40 business days of reaching account funding requirement. $50 Prepaid Visa Card Offer December 31, 2014
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A)$10,000 B)$50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $15,000 before December 31, 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 December 31, 2014
Scotia iTrade Open a new account with Scotia iTrade with either A) $15,000 – $99,999 B) $100,000 – $499,999 or C) $500,000+ and you may be eligible to receive either A)100 free trades or $50 cash B)250 free trades or $250 or C)500 free trades or $500 cash. Accounts must be opened prior to December 31st, 2014. New clients use code: FATD14E for free trades and code: MONF14 for cash back. Existing clients must call client service (1-888-769-3723) to qualify. Be sure to read terms and conditions regarding minimum balance requirements and other details. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trades or $50 cash B) 250 commission-free trades or $250 cash C) 500 commission-free trades or $500 cash For commission-free trades: 180 day limit For cash back: payout occurs by August 31, 2015 Cash back + Free trade offer December 31, 2014
Open a new account or fund an existing account at CIBC Investor’s Edge with at least A)$25,000-$49,999 B)$50,000 – $99,999 or C)$100,000+ and you may be eligible to receive A)$100 cash back and 25 free trades; B)$200 cash back and 50 trades or C)$300 cash back and 100 free trades. Be sure to read the terms and conditions for full details on this offer. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,00+ A) $100 cash back + 25 commission-free trades B) $200 cash back + 50 commission-free trades C) $300 cash back + 100 commission-free trades Cash back payout occurs within 30 days of account funding; Time limit to use commission free trades is 60 days Investors Edge Cash Back and Free Equity Trades Offer February 28, 2015
Open and fund a new account with at least $50,000 at TD Direct Investing and you may be eligible to receive up to 200 commission-free trades plus 60 days of free use of the premium data for the advanced dashboard. Trades must be completed within 60 days. Be sure to read the terms and conditions for full details on this offer. $50,000 200 commission-free trades (or $2,000 of commission rebates – whichever comes first); Advanced dashboard premium data rebate ($87) 60 days to use trades (rebate may be paid by May 30, 2015) Commission-free Trade Offer November 21, 2014
Disnat Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $50,000 $300 commission credit 6 months Disnat $300 Commission Credit Promo December 31, 2014
Open and fund a new account at Questrade with at least A)$50,000 or B)$100,000 by December 30, 2014 and you may be eligible to receive either A)$100 cash back or B)$250 cash back. Use promo code: CASHBACK250W when opening the account. Be sure to read the terms and conditions for full details. A)$50,000 B)$100,000 A)$100 cash back B)$250 cash back Cash back payout occurs after 60 days. Questrade Cash Back Offer December 30, 2014
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,000 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). Contact InvestorLine for full terms and conditions. October 30, 2015
Open and fund a new account with at least $100,000 at Questrade and execute at least one commissionable trade and you may be eligible to receive an iPad Mini. Use promo code IPADMINI14F. Be sure to read terms and conditions for full details. $100,000 iPad mini (Wi-Fi only, 16 GB) iPad mini will be ordered within 30 days of eligibility criteria being met. Questrade iPad Mini Promo November 30, 2014
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $250 cash back and a rebate of commissions on up to 25 trades made within 50 days of opening the account. Use the promo code SMILE when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $250 cash back + 50 commission-free trades (rebated) 50 days (payout for cash back and commission rebate occurs after 6 months) Smile Promotion January 15, 2015

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to Credential Direct and they will pay the transfer-out fees up to $150. If you wish to switch out of Credential Direct after 90 days they will waive their transfer out fee. See link for more details. $150 $15,000 Transfer Free Promo December 15, 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
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 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 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 December 31, 2014
Transfer $50,000 or more to TD Direct Investing from another brokerage and you may be eligible to receive up to $150 in transfer fee rebates. $150 $50,000 Commission-free Trade Offer November 21, 2014
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Discount Brokerage Weekly Roundup – October 24, 2014

Makeovers seem to be making the headlines this past week. Markets this past week gave investor’s a bit of a portfolio makeover, actress Renee Zellweger got a bit of an extreme makeover and set the internet ablaze and even the Canadian discount brokerage landscape saw (and is about to get) a bit of work done.

In this week’s roundup we take our cues from a Zellweger movie-inspired theme to lead us through the makeover from a major bank-owned online brokerage pricing adjustment. Next we look at earnings from a pair of US brokerages to see what their operation looks like without the makeup on. Finally we’re proud to announce a new community feature from SparxTrading.com that we think will help change the landscape for the better for all DIY investors. Of course, our roundup will be completed by some insightful banter from the Canadian investor forums.

You Didn’t Quite Have Me at Hello

This past week saw an interesting announcement come from BMO InvestorLine regarding their flagship AdviceDirect platform. Specifically, BMO InvestorLine is changing the fee structure and lowering the threshold to participate from $100,000 down to $50,000.

While BMO InvestorLine has tactfully positioned this move as improving ‘accessibility’ the timing and nature of the changes demonstrate that evolutionary axiom: adapt or die.

It has been just over two years since BMO InvestorLine bet big that their unique AdviceDirect platform would meet a need for the “in-between” DIY investors who embrace the lone wolf approach, but still need the “pack” to provide counsel and confidence.

In the wealth management industry of today, however, two years is a long time to go status-quo. The “phone a friend” and flat fee approach of AdviceDirect has faced headwinds of ultra-low MER ETFs and the robo-advisor phenomenon. In fact, the same day BMO InvestorLine announced their changes to AdviceDirect, National Bank Direct Brokerage formally announced their launch of InvestCube service, an automated ETF management solution for DIY investors.

With new tiered pricing, fixed dollar charges and lower thresholds to participate, the new face of AdviceDirect may be more accessible to DIY investors. The challenge in front of BMO InvestorLine, however, is getting Canadian investors to pay attention in an even more crowded marketplace.

Show Me the Money

It’s earnings season for some major US online brokerages and with it comes a chance to ask or answer “how’s business?” Quarterly earnings for E*Trade Financial and Interactive Brokers seem to suggest the answer depends on who you talk to.

On the one hand, there is a ‘good news’ story. Bolstered by higher trade volume, E*Trade saw its third quarter earnings jump more than 31% as well as impressive performance on key metrics such as the number of trades and net new accounts. Interestingly the average commission per trade came in at $11.05 per trade, a number that seems incredibly high relative to Interactive Brokers’ average of $4.21 per trade. Nonetheless, after many years of grinding away at deleveraging their business, the results and market conditions are lining up in their favour. These latest results this represent a third successive earnings win for the US brokerage.

Interactive Brokers, on the other hand, probably provoked a wave of face palms from analysts and shareholders alike. The Q3 EPS tallied in at $0.05 – a far cry from the consensus estimates of $0.23. Among the reasons cited for the miss were some rather hefty losses (~$70M) by their market making segment demonstrating that markets can humble traders of all sizes. On a slightly more positive note for Interactive Brokers, they continued to see growth in the number of accounts (18% y/y) and total daily average revenue trades (DARTs) up 14% over the same period last year.

Help Me Help You

Many Canadians understand that being a DIY investor isn’t simple, but even so, we believe it certainly shouldn’t be prohibitively hard either. What we’ve observed over the few years we’ve been around is that one of the biggest sources of support for investors is actually other investors.

It’s both inspiring and awesome to know that there are lots of great online communities that investors of all experience levels can access to get support, encouragement and perspective on their investing journey.

So, after much research, discussion, caffeine and coding, we’re happy to announce first to the loyal weekly roundup readers that we’re launching a space on SparxTrading.com for the community of online brokerage users. We’ll have the official beta launch link on our Twitter feed so be sure to check our feed over the upcoming week to get the first look.

Ultimately we believe that by making finding and navigating information more efficient, we can improve the experience of being a DIY investor. We hope it will be a platform that will attract like-minded folks to help, support and learn from one another as well as a place to get reliable answers to questions relevant to their online brokerage experience.

Event Horizon

Attention all self-directed investor education and event enthusiasts, learning opportunities are abound. This week’s event horizon features a veritable potpourri of offerings. Sample and enjoy.

Oct. 25 (Sat)

  1. TD Direct Investing – Workshop: Getting Started with Options

Oct. 28 (Tues)

  1. NBDB – Introduction to Call Options
  2. TD Direct Investing – Introduction to Fundamental Analysis
  3. Scotia iTrade – Cash Management Using ETFs
  4. Desjardins Online Brokerage – Maximizing Your Trading Experience

Oct. 29 (Wed)

  1. TD Direct Investing – Understanding Margin & Short Selling
  2. Desjardins Online Brokerage – Portfolio construction using ETFs

Oct. 30 (Thur)

  1. TD Direct Investing – Introduction to Fixed Income
  2. NBDB – Introduction to Put Options

 From the Forums

Just when you thought you were out…

Is too much of a good thing no longer a good thing? In this forum post from Canadian Money Forum, a client of Scotia iTrade is testing the waters for what other investors might suggest as a good alternative. Check out the long list of pros and cons given to the author of the post from a handful of level headed voices.

Clear and present pricing

The impact of regulatory changes to the way brokerages report their fees shines through in this post from the Financial Wisdom Forum. In the post a BMO InvestorLine user details a breakdown of a potential bond transaction and shows that when brokerages are more transparent with pricing, good things can happen.

 

That does it for this week’s roundup. It has been a tough week for Canada. Going into the weekend, the SparxTrading.com team salutes and says thank-you to the brave men and women who, because of their courage and sacrifice, make this country the great nation that it is.

 

Credit: Nathan Denette/CP
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Discount Brokerage Weekly Roundup – October 17, 2014

[updated Oct.18] If you’re like the markets this past week, you’ve ‘bear’ly made it to Friday.  For many investors and traders, a higher than usual dose of uncertainty made it a harrowing week.  Of course, Canada’s discount brokerages know all too well about the specter of uncertainty as they are now trying to navigate a brave new world of low-commission pricing.

In this week’s discount brokerage round up, we take a look at the different directions brokerages are taking in this new landscape. First, we look at a pair of direct competitors adding features into their product mix. Next we scope out an emerging battle for investor attention as brokerages are going to new channels to capture attention.  We then roll-out a new feature of the roundup – our “event horizon” which highlights upcoming investor education webinars and seminars. Finally, we cap off the week with some very instructive investor comments on the harsh realities of online trading.

Support and Resistance are Futile

The infamous mantra of Star Trek’s Borg came one step closer to becoming reality as the “robo-advisor” trend continues to gain momentum here in Canada.

National Bank Direct Brokerage recently launched their new “InvestCube” service and in doing so, they’ve taken direct aim at that large segment of investors who want intelligently diversified, low-fee ETF portfolios without the ongoing maintenance work of constant rebalancing.

While NBDB are not alone in this regard, they are casting their nets at a time when marketplace excitement over these kinds of services is heating up.

Briefly, InvestCube is being touted as a way to simplify DIY investing by combining expertly curated exchange-traded fund (ETF) portfolios with smart automatic rebalancing synched to allocation thresholds.  Investors can choose from the following five portfolio categories:

  1. Conservative
  2. Moderate
  3. Balanced
  4. Growth
  5. Equity

With a catchy name and polished pitch, National Bank Direct Brokerage is hoping InvestCube has the curb appeal and sticker price to win over long-term investors who want to go it alone, but don’t necessarily have the time, or the desire, to analyse data.

Fees for the service range from 0.99% to 1.04%, depending on the portfolio selected, with no per trade commission costs. The minimum buy-in for this service is also $25,000, which means there is a clear segment of this ‘robo-advisor seeking’ group NBDB is looking to go after.

NBDB says InvestCube is currently available for all account types; including RRSP, TFSA, RESP, LIRA / LRSP, RRIF account cash margin account and InvestCube is available in all Canadian dollar denominated account types.

Party in the TFSA (…and RSP)

Desjardins Online Brokerage was also on our radar as they’ve recently added US dollar registered accounts (RRSP and TFSA) to their feature offering.  Although this feature release has been in the works for some time, it comes on the heels of a recent announcement from TD Direct Investing highlighting the long awaited launch of USD registered accounts.

Foreign exchange fees have (and continue to be) a generous revenue generating function for brokerages but with several other brokerages already offering USD registered accounts (RRSP, TFSA and LIRA), Desjardins Online Brokerage is wisely closing the gap between themselves and their competitors on a long-sought after feature.

For Desjardins Online Brokerage’s competitors, things are less rosy. The impact of this latest feature release means that smaller players, who were among the first and most vocal champions of this account type (and the ones who rely on it the most to differentiate themselves from larger brokerages), will have to dig deep to come up with something that makes them seem to be truly ahead of the curve. Also, competitors (big and small) that don’t offer this particular feature have a very tough time convincing clients to continue to park all of their assets in one place.

May I Have Your Attention, Please?

While pricing and features are one way to get attention from investors, another way is to try and be more ‘interesting’. In today’s world, one way to do that is to turn to video.

Qtrade recently rolled out a platform product video demonstration, that we spotted on their website. While popcorn and soda won’t be required for this screening, the video features a palatable 210-second run through the platform. And Qtrade is not alone.

National Bank Direct Brokerage is also in the mix with some branding video content, all geared towards capturing the attention of Canadian self-directed investors. Other brokerages such as TD Direct Investing have gone even further into the “video” field by pushing and sponsoring their own content channel.

As today’s online investor is smarter, more knowledgeable and spends more time online, Canadian online brokerages are going to have to go beyond price in order to compete for and win their attention. If they don’t like what’s being said, today’s investors will simply change the channel or worse swipe left.

Event Horizon [New!]

Introducing the newest feature of the round up: the event horizon. This section highlights the self-directed investor education events and opportunities for the upcoming week.  While many of the events are held by discount brokerages, there are other events included too. [note: TD Direct Investing holds many events however because of space limitations, we’ve selected a few we thought might be interesting to include. Also, events may reach capacity at which point registration may not be possible. Please ensure to check if space is available if you’re interested in attending.]

Oct. 21 (Tues)

  1. National Bank Direct Brokerage: Stop Orders: A Winning Solution Worth Knowing
  2. Scotia iTrade:  Index Iron Condors – A Friend When There Is No Trend with Pro Market Advisors
  3. TD Direct Investing: Smart Money: Investing Like a Pension Fund
  4. TD Direct Investing – Options as an Income Strategy

Oct. 22 (Wed)

  1. Scotia iTrade: Options Trading and Volatility with Montreal Exchange
  2. TD Direct Investing – Portfolio Strategies

Oct. 23 (Thur)

  1. TD Direct Investing: Options Trading using Technical Analysis
  2. TD Direct Investing:  Financial Repression – Where are interest rates heading? [Fr]

Oct. 24 (Fri)

  1. TD Direct Investing:  Advanced Options

Oct. 25 (Sat)

  1. TD Direct Investing: Workshop – Getting Started with Options

From the Forums

Hello, is it cash you’re looking for?

With the exception of Lionel Ritchie, there’s probably nobody else that could charm their way out of a margin call from their broker – and even then those are slim odds.  As one online investor found out from this comment on Questrade’s profile page, that when it comes to risk-management, it’s every trader (and brokerage) for him or herself.

D-Lister

For every shining star there has to be a lot of surrounding darkness. In the stock market, there are many companies that don’t make headlines for the good reasons and there are many more that fade into the darkness of being delisted.  This post on the reddit personal finance Canada highlights some important points about which stocks can and can’t get past the velvet rope of TFSA eligibility.

That does it for another edition of the roundup.  Wherever your adventures happen to boldly take you this weekend, hopefully fun follows at warp speed!

 

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Special Series: An In-Depth Look at the 2014 J.D. Power Canadian Discount Brokerage Rankings – Part 1

This year’s J.D. Power & Associates’ Canadian discount brokerage rankings were recently announced. As with years past, the rankings and the underlying survey they’re based on, provided a unique window into the collective voice of Canadian self-directed investors and their perceptions of Canada’s online discount brokerages.

In the first of our multi-part special series on this year’s discount brokerage rankings, we take a look at the survey that produces the rankings, including how it measures investor satisfaction as well as some of the unique features of this year’s survey and results.

The next part of our series will drill down into the actual performance of Canada’s brokerages on this year’s ranking and what these results mean for the online brokerages as a whole as well as self-directed investors.

A Quick Recap of the 2014 Canadian Discount Brokerage Rankings

When it comes to the various Canadian discount brokerage rankings, the J.D. Power & Associates evaluation occupies a special niche. Unlike other rankings that focus on direct evaluation of features, the J.D. Power ranking of Canadian brokerages is unique because its is the based on the systematic organization of opinions, experiences and perceptions of discount brokerage clients – what they call the “voice of the customer”.

Between mid-May and mid-June of this year, the Investor Satisfaction Survey polled just over 2500 clients from a number of Canadian discount brokerages to find out just how satisfied (or dissatisfied) these investors were with their current online brokerage. In total, 7 Canadian discount brokerages ended up having sufficient data to participate in the rankings (compared to 11 last year), with an average investor satisfaction score of 736 (compared to an average of 724 last year).

The firms covered in this year’s ranking (along with their overall investor satisfaction score) are shown in the chart below.

J.D. Power & Associates Canadian Discount Brokerage Rankings 2014
While numbers help to make the assessment and ranking easier, the process behind how these numbers are generated is actually fairly complex.   (For those who want a more detailed explanation of the survey and scoring system, click to read our overview on the J.D. Power Investor Satisfaction Survey here)

It is useful, however, to get a quick sense of how these numbers are derived to better understand what they mean.

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Discount Brokerage Deals and Promotions – October 2014

*Updated October 9, 2014*

Savvy traders understand that there’s always a bull market somewhere.  Even though the recent pull back in the major stock markets and indices suggests investors may be cooling off, Canadian discount brokerages have a different idea, especially when it comes to promotions.

We began last month with a brief lull in the number of offers pitching 50 or more free trades.  Halfway through September, however, that changed dramatically when Scotia iTrade launched one of its largest offers to date: 500 commission-free trades (or $500 cash back) for deposits of $500,000 or more.   This was a unique offer (which we detailed in an article here), because it signaled a decisive shift by Scotia iTrade to get the attention and assets of investors with substantial portfolios.

The deals on the calendar at the start of the month arrived in late September and look to be around until at least the end of the current month if not longer.  A noteworthy transfer deal also showed up from Credential Direct, a sign that they too may be stepping up their efforts at competing with other Canadian brokerages.

Expired Deals

The end of September saw 2 deals from Questrade expire: their Cash Back Promo and RESP Offer.

Extended Deals

The deal that got extended this past month was Questrade’s 100 free trade offer with a new deadline of October 30th.

New Deals

*Update Oct. 9, 2014: The deals are heating and this time one of Canada’s largest discount brokerages, TD Direct Investing, has been spotted promoting a commission-free trade offer. For individuals depositing at least $50,000, the full offer includes up to 200 commission-free trades (maximum rebate of $2,000),  a rebate for their advanced dashboard premium streaming package (maximum rebate of $87) and for those who transfer funds in, coverage for up to $150 of transfer fees. The trades must be placed within 60 days of the account opening in order to be considered eligible for the rebate.  Also, global equity trades are not eligible as part of this offer.

*Update Oct. 6, 2014: As part of their big price drop announcement, CIBC Investor’s Edge has also dropped a major deal into play with their newest offer that combines free trades AND a cash back component too.  Unlike many of the deals we’ve seen before, this is a fairly aggressive offering which certainly got our attention and will likely do the same for consumers and other brokerages.  For starters, a deposit of $25,000 in assets qualifies an individual for $100 cash back and 25 free trades; a deposit of $50,000 – $99,999 qualifies for $200 cash back and 50 free trades; and deposits of $100,000+ qualify for $300 cash back and 100 free trades. Given the different tiers for this offer, CIBC Investor’s Edge is coming out swinging at the other discount brokerages big and small and so we expect some kind of interesting responses to come up in short order.

As was the case last month, this month isn’t starting with any new deals announced as of the beginning of the month.  Midway through September, however, a number of deals did appear.  One of the deals we’ve mentioned already was the Scotia iTrade ‘500 commission-free trade’ offer, however there was also the infamous iPad Mini offer from Questrade which is back again and a transfer fee offer from Credential Direct that showed up.  Specifically, Credential Direct is offering a transfer fee promo where individuals can have the transfer fee rebated if they switch to Credential Direct from another broker (with at least $15,000) and Credential Direct will waive the fee in case that clients wants to ‘switch out’. This offer is something we’ve seen before from Credential Direct however coupled with their recent commission price drop, there is a good possibility that we may see more from them in terms of promotions this upcoming year.

As always we appreciate hearing about and sharing deals that we may have missed.  As a general guideline, deals that we can include directly on our listing have to be open to all potential clients but users may post links to offers in the comments section that might apply to certain readers

Discount Brokerage Deals

Company Brief Description Minimum Deposit Amount Commission/Cash Offer Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion 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
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 October 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 100LOWCOM14F 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 October 30, 2014
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A)$10,000 B)$50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade October 31, 2014
Scotia iTrade 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 December 31, 2014
Scotia iTrade Open a new account with Scotia iTrade with either A) $15,000 – $99,999 B) $100,000 – $499,999 or C) $500,000+ and you may be eligible to receive either A)100 free trades or $50 cash B)250 free trades or $250 or C)500 free trades or $500 cash. Accounts must be opened prior to December 31st, 2014. New clients use code: FATD14E for free trades and code: MONF14 for cash back. Existing clients must call client service (1-888-769-3723) to qualify. Be sure to read terms and conditions regarding minimum balance requirements and other details. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trades or $50 cash B) 250 commission-free trades or $250 cash C) 500 commission-free trades or $500 cash For commission-free trades: 180 day limit For cash back: payout occurs by August 31, 2015 Cash back + Free trade offer December 31, 2014
Open a new account or fund an existing account at CIBC Investor’s Edge with at least A)$25,000-$49,999 B)$50,000 – $99,999 or C)$100,000+ and you may be eligible to receive A)$100 cash back and 25 free trades; B)$200 cash back and 50 trades or C)$300 cash back and 100 free trades. Be sure to read the terms and conditions for full details on this offer. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,00+ A) $100 cash back + 25 commission-free trades B) $200 cash back + 50 commission-free trades C) $300 cash back + 100 commission-free trades Cash back payout occurs within 30 days of account funding; Time limit to use commission free trades is 60 days Investors Edge Cash Back and Free Equity Trades Offer February 28, 2015
Open and fund a new account with at least $50,000 at TD Direct Investing and you may be eligible to receive up to 200 commission-free trades plus 60 days of free use of the premium data for the advanced dashboard. Trades must be completed within 60 days. Be sure to read the terms and conditions for full details on this offer. $50,000 200 commission-free trades (or $2,000 of commission rebates – whichever comes first); Advanced dashboard premium data rebate ($87) 60 days to use trades (rebate may be paid by May 30, 2015) Commission-free Trade Offer November 21, 2014
Disnat Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info. $50,000 $300 commission credit 6 months Disnat $300 Commission Credit Promo December 31, 2014
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,000 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). Refer A Friend Terms & Conditions October 31, 2014
Open and fund a new account with at least $100,000 at Questrade and execute at least one commissionable trade and you may be eligible to receive an iPad Mini. Use promo code IPADMINI14F. Be sure to read terms and conditions for full details. $100,000 iPad mini (Wi-Fi only, 16 GB) iPad mini will be ordered within 30 days of eligibility criteria being met. Questrade iPad Mini Promo November 30, 2014
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $250 cash back and a rebate of commissions on up to 25 trades made within 50 days of opening the account. Use the promo code SMILE when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $250 cash back + 50 commission-free trades (rebated) 50 days (payout for cash back and commission rebate occurs after 6 months) Smile Promotion November 2, 2014

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to Credential Direct and they will pay the transfer-out fees up to $150. If you wish to switch out of Credential Direct after 90 days they will waive their transfer out fee. See link for more details. $150 $15,000 Transfer Free Promo December 15, 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
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 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 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 December 31, 2014
Transfer $50,000 or more to TD Direct Investing from another brokerage and you may be eligible to receive up to $150 in transfer fee rebates. $150 $50,000 Commission-free Trade Offer November 21, 2014
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Discount Brokerage Weekly Roundup – September 19, 2014

As summer officially winds down, the news in the markets and amongst discount brokerages seems to be about closing out summer with a bang. A far cry from the tumbleweed of last week, this past week saw some big numbers from the new all-time highs on major indices, the mega-iPOs and a brokerage deal that is kind-of-a-big-deal.

In this edition of the roundup, we take a look at a major deal announcement from a popular discount brokerage, a ‘battle of the brands’ investor educational dust up, a personal finance site hitting a major milestone and of course we round out with interesting chatter from the forums and a geeky allusion to the current market hype.

Free Trade Agreement

Earlier this week the Canadian discount brokerage landscape saw a massive deal unfold. Scotia iTrade announced their latest offer: 500 commission-free trades or $500 cash back for deposits of $500,000 (or more). Yes, that is correct, 500 commission-free trades.

Without question, waving a big red banner with 500 free trades is going to get the attention of bullish investors, competitors and industry observers. Part of that attention may come from a desire to take advantage of the offer, however there is probably another set of voices asking: how much is too much?

Reading between the lines, both the timing and size of this deal are strategically important to Scotia iTrade. Last week we mentioned that the clock is ticking closer to the Globe and Mail discount brokerage rankings and that pricing is going to be a rough patch for Scotia iTrade in the upcoming scoring.

Stay tuned for an in-depth look at this offer and what the strategy behind the offer might signal to both competitors and investors alike. For more information on Scotia iTrade’s latest promotion, check our deals and promotions section.

Taking it Outside

One of the strategic ‘battlegrounds’ between Canadian brokerages has been with investor education. Several brokerages in particular: Desjardins Online Brokerage (Disnat), National Bank Direct Brokerage, Scotia iTrade and TD Direct Investing have committed significant resources to ongoing live investor education.

While each of these brokerages has taken a slightly different approach to providing investor education, partnering with high profile traders/investors has been largely the strategy of Desjardins Online Brokerage (in particular Disnat) and more recently Scotia iTrade.

In the upcoming weeks both of these brokerages will be taking their star-power on the road for multi-city education tours.

For Desjardins Online Brokerage, their popular guided portfolio strategy (GPS) spokesperson and portfolio strategist Steve Deschesnes will be heading to Calgary, Edmonton, Vancouver and Victoria throughout October. Desjardins’ team will also be at the World Money Show in Toronto as will Tyler Bollhorn and Rejean Paul, both of whom are educational partners of Desjardins Online Brokerage.

Not to be outdone, Scotia iTrade also has a big fall educational tour with their marquis educational partner Larry Berman (of BNN’s Berman’s Call). Interestingly, Scotia iTrade will also be present and visible at the Toronto Money Show as show sponsors and with educational partners and reps. The incredibly ambitious Fall road show Larry Berman and his team have planned will take them to 14 cities across the country between now and the end of November.

Of course in addition to the educational tours, there is the Money Show and the Cambridge House International Canadian Investor Conference which should make this fall a busy one for investor education.

A Rising Tide

One of the popular sources for conversation on Canadian personal finance is quickly becoming the personal finance Canada thread (subreddit) on Reddit. The growth in readership on this source has been substantial with the group going from just under 8000 ‘readers’ in May to 10000 ‘scallywags’ as of this past week. The thread covers a wide array of personal finance topics, including many questions about investing and brokerages, as well as insurance, taxes, credit cards and more.

While the pirate/nautical themed language is a recent development, it has been great watching the community grow and help out one another in their journey to improve their understanding of personal finance. Congratulations to the community and here’s hoping there’s many more who find value in the group (yarr).

From the Forums

With that great segue, this week’s forum scan picked up a couple of interesting discount brokerage related stories.

Settling Down

In this first post from the Red Flag Deals investing forum, an active investor who made the switch from TD to Interactive Brokers hit a slight speed bump when it came to accessing their funds immediately after closing out a position. Check out what the community offered up in terms of explanations.

One Stop at a Time

In this post from the Canadian Money Forum, an interesting thread from a user highlights the use of trailing stops as part of a risk management strategy. Check out the interesting response from the community about the reliability of backtesting and how that can impact the interpretation of results.

That’s a wrap for this week – and what a week. With all of the hype coming back into the markets thanks to the massive Ali Baba IPO it’s interesting to see how much further things advance without the markets taking a bit of time to breathe. If you’re a football fan, you might be interested in this IPO-meets-football story that could get your portfolio into the end zone (or turfed). And, if you’ve bought into the hype of the markets so far, here is a somewhat nerdy yet elegant demonstration of the ‘mercurial’ nature of bubble bursting as some food for thought. Have a great weekend!