Tag: National Bank Direct Brokerage

National Bank Direct Brokerage

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Discount Brokerage Deals & Promotions, November 2019

*Updated Nov. 27* Welcome to November, where DIY investors, like daylight, are in for some savings when it comes to investing online. Despite the extra hour available to online brokerages, TFSA contribution room dates, RRSP contribution deadline season and tax season are all quickly approaching, and as a result, investors are already kicking the tires on where best to park their capital. Add to the mix record highs on the stock markets, and it’s a potent combination for investors interested in market momentum.

After the most turbulent month in the history of online brokerages in the US that saw trading commission fees drop to zero, the moose in the room for Canadian discount brokerages is how to temper expectations for zero-commission trading. There is clearly demand for it across social media and among DIY investors, and there is even supply in the form of a couple of online brokers ponying up commission-free trading of one kind or another.

The next best option to fully dropping commissions to zero, is a generous helping of commission-free trades (or cash back) to win over investor loyalty.

It is against that backdrop that we see the Canadian discount brokerage deals activity at a bit of a crossroads this month. On the one hand, the uptick in investor interest is imminent, so there have to be offers coming to market soon. On the other, brokerages are watching one another carefully to see which major online brokerage makes the first move with respect to pricing or promotions (or both) going into the end of 2019.

Already at the beginning of the month we’ve witnessed some bold moves by BMO InvestorLine, with the launch of a new cash back offer geared towards bigger balances than have ever been pursued before. Other brokerages, such as RBC Direct Investing are in the mix with commission-free offers, and bank-owned brokerages National Bank Direct Brokerage and Scotia iTRADE are offering up free trades on an annual basis to certain account holders. In the case of National Bank Direct Brokerage, young investors (under 30 years old) can get 10 commission-free trades per month (as well as a discounted commission fee thereafter). For Scotia iTRADE, the Ultimate banking package with Scotiabank provides 10 commission-free trades in the first year and 5 commission-free trades every year thereafter.

All told, there’s plenty of activity to keep things warm, toasty and inviting for DIY investors looking for promotions or deals to open or add funding to an online investing account. Of course, there’s still likely more to come, so be sure to check back through the month or follow us on Twitter for more deals announcements.

Expired Deals

Scotia iTrade’s $50 cash back and $6.99 per trade promotion officially expired at the end of October. This unique approach to a promotion signals that there’s something creative being cooked up in the iTRADE kitchen and we’ll be watching to see what ultimately surfaces over the next few weeks.

Although it has been replaced by a new offer already, there was a technical expiry of the summer cash back promotions from BMO InvestorLine, which retired their tiered cash back promotion that started off at a minimum deposit tier or $100,000.

Extended Deals

No extensions to report at the time of publication

New Deals

BMO InvestorLine is pushing the line even higher on the top end of both the cash back and the deposit level required to qualify for it with the launch of their latest cash back promotion. The new deal has an initial qualifying deposit tier of $250,000 and associated cash back of $400, and tops out at a new high for a deposit tier of $5M+ for which a whopping $5,000 bonus can be paid out.

*Update November 12 – CIBC Investor’s Edge has launched a brand new cash back promotion for individuals that transfer their account out of their current online brokerage and into Investor’s Edge. The minimum deposit required to qualify for this deal is $25,000; you may be eligible to receive $100 – $400 in cash back depending on the size of your deposit. Scroll down for more details!

*Update November 27 – Scotia iTrade has released a promotion that offers new account holders the choice of a) cash back + $6.99 commissions; or b) free equity trades. The minimum deposit required for this deal is $5,000, and you could be eligible to receive either a) $25 – 1,500 cash back + $6.99 per trade; or b) between 10 – 500 free equity trades, dependent on the size of your funding. Scroll down for more info.

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2019
Open a new RBC Direct Investing account by December 13th and you may be eligible for 25 commission-free equity and ETF trades. You must deposit or transfer $5,000 in your account by February 14th, 2020 to be able to use this promotion. Make sure that the offer code MCFT1 is applied if you wish to qualify for this deal. As always, be sure to take a look at the terms and conditions for further details. $5,000 25 commission-free trades 1 year Commission-Free Offer Details December 13, 2019
Scotia iTrade Open and fund a new Scotia iTrade account to be eligible for up to $1,500 in cash back and $6.99 commission pricing, or up to 500 free equity trades. The amount of cashback and free trades are dependent on the funding of your account. Take a look at the offer details link for further information. $5,000 Cash + discounted commissions, or free trades. $6.99 trades available until June 30, 2020; Cash or commission rebate for free trades available until July 31, 2020. iTrade Offer Details February 29, 2020
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo none
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2019
When you transfer funds from another account into a CIBC Investor’s Edge account with assets worth at least A) $25,000; B) $50,000; C) $100,000, you may be eligible to receive A) $100; B) $200; or C) $400 in cash back. A) $25,000 B) $50,000 C) 100,000+ A) $100 B) $200 C) $400 Cash back will be deposited between May 18 – September 17, 2020. CIBC Cash Back Offer Details March 4, 2020
BMO InvestorLine Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $250,000; B) $500,000; C) $2M or D) $5M+, and you may be eligible to a cash back reward of up to A) $400; B) $800; C) $2,000 or D) $5,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $250,000 B) $500,000 C) $2M D) $5M+ A) $400 B) $800 C) $2,000 D) $5,000 Cash back will be deposited week of Aug. 17, 2020 BMO InvestorLine Cash Back Offer Details January 6, 2020

Expired Offers
Last Updated: Nov. 1, 2019 23:00 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 2, 2020
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none

Expired Offers
Last Updated: Nov. 1, 2019 23:00 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Disnat Desjardins Online Brokerage 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 Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Last Updated: Nov. 1, 2019 23:00 PT

Other Promotions

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

Expired Offers
Last Updated: Nov. 1, 2019 23:00 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Nov. 1, 2019 23:00 PT
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Discount Brokerage Weekly Roundup – October 21, 2019

On the eve of election night in Canada, citizens are tasked with making an investment of their own in the party or candidate that they believe is in their best interest. Another voting machine, the stock market, provides price as a proxy for expectations. Fascinatingly enough, the recent activity in US and Canadian online brokerage is providing a glimpse of where DIY investing is heading next.

In this edition of the Roundup, we dive into the latest earnings announcements from US online brokerages in the wake of the recent commission-fee cuts and read the tea leaves as to what’s brewing for the industry and investors alike in this new pricing reality. Speaking of trends, it looks like combos are the menu item of choice in the bank-owned online brokerage battle here in Canada – our second story spills the tea on what’s about to be trending for DIY investors. As always, there’s plenty of chatter from investors to dish out in the Twitter posts and in the investor forums.

Forecast for Online Brokerages: Cloudy with a Chance of Upside

As every experienced trader knows, sentiment and expectations drive pricing. Prices in the stock market, however, are dynamic and constantly changing which, by extension, means that so too are expectations.

The recent and rapid implosion of prices of US online brokerage stocks was anything but rational. While the market is an efficient pricing mechanism, during times of heightened emotion or uncertainty there’s a natural mispricing moment, and since the big price drop earlier in the month, we’ve witnessed the recalibration of expectations and calculations restore some sense of calm to a rattled industry.

This past week, the earnings announcements and management guidance for three of the big four names in the US online brokerage space were released. And, without giving away any spoilers, it appears expectations are shifting from pessimism to cautious optimism.

Since early October, the stock prices for publicly listed online brokerages AMTD, EFTC and SCHW have rallied an average of 15.3%. Interestingly, the online brokerage that touched off the avalanche in pricing drops, Interactive Brokers, is down about 4% over the same period of time.

What’s behind the change in sentiment? Fortunately, the question is somewhat answerable thanks to earnings conference calls held last week for E*TRADE Financial and Interactive Brokers.

The timing of earnings releases and subsequent investor conference calls so close to drop in commission pricing means that predictably, the “plunge” is almost all of what analysts covering these online brokerages wanted to discuss on the conference calls.

Despite the best efforts to pry additional information out of company management, there wasn’t a lot of brand-new market moving information that was revealed. More than anything, there was a lot of soothing of nerves and spin on what the significant loss of revenue from trading commissions would mean going forward.

At E*TRADE, for example, the CEO Mike Pizzi framed the loss of $300 million per year of commission revenue as an opportunity to win back clients to a best-of-breed trading platform. Indeed, that appears to be a pillar of the new narrative and the competitive reality.

Without trading commission costs, active traders will undoubtedly be seeking out the best online investing experience – including the best trading platform, decision support, and feature set. In that way, established brands like E*TRADE and Interactive Brokers (and Schwab and Ameritrade) have a significant leg up on the newcomer Robinhood for the most lucrative account holders (active traders) who need advanced tools and convenience.

Despite the many evasive dips and weaves of management to the analyst questions about what happens next, there were still a few interesting takeaways revealed by tuning into these calls.

The first, and arguably most significant for Canadian online brokerages, is that Interactive Brokers sees a business case for bringing commission-free trading here to Canada. In a question from analyst Will Nance from Goldman Sachs during the Interactive Brokers earnings conference call, it was asked whether or not IBKR Lite would be expanded to other locations around the world served by Interactive Brokers. Chairman and now former CEO of Interactive Brokers, Thomas Peterffy, stated that unlike the US, there weren’t that many equities markets internationally that could support robust payment for order flow. One exception: Canada.

Another important and recurring question that arose was the prospect of consolidation in the US online brokerage space and whether E*TRADE would be a candidate to be acquired.

Asked on both the E*TRADE conference call and on the Interactive Brokers one, it was interesting that there appears to be a renewed chatter about this online brokerage in particular. While nothing was affirmed in the call with E*TRADE, the door wasn’t closed on the topic either.

For additional context, E*TRADE had communicated achieving a target earning per share (EPS) of $7 by 2023 and in this earnings announcement call, that timeline was pushed back by a year to 2024. The current EPS forecast is ~$4 so even if the P/E ratio (9.88) manages to stay the same by 2024, the share price by that point could hit $70 (closing price on Friday was $40.85).

Normally, a downward revision or delay in EPS of that nature would prompt a sell off, however based on the drop in price prior to this earnings release, it’s evident the market believes it was oversold and hence the stock rallied. Moreover, it’s a vote of confidence in management that the market believed that hitting that target is achievable.

Suffice to say, the fact the door was left open to an acquisition suggests that if the price is right, management would consider a sale, and there’s even a target price on what that might be. When asked by an analyst if Interactive Brokers would consider buying E*TRADE, Peterffy rejected the prospect – however, it would be hard to imagine that even if they were kicking the tires on an acquisition, that they would disclose as much in a conference call.

Another very interesting takeaway from the investor conference calls was that even though there might not be commissions on equities trades any more, commissions on options trades are likely to stay buoyant for quite some time. The complexity of options strategies and trading almost necessitate having the right platform in place, and so this somewhat technical requirement could serve to ringfence trading commissions for these types of securities.

All told, the story going forward for the US online brokerage industry is still highly fluid.

There were a slew of new feature announcements (which will be covered in a subsequent Roundup) most notably the ability for investors to trade fractional shares (something Schwab and Ameritrade announced last week).

The reality is that there is no exact playbook to navigate a fundamentally different world than the one that has been in place for the past three decades. That said, it is fascinating to see just how adept each online brokerage is at evolving to the new reality of zero commissions for equity trades.

There are undoubtedly other levers and fees that can be used to grow revenues, as well as diversification away from just order execution – a preferred path it seems for Schwab and E*TRADE. There’s also a lot of cost cutting that is slated to take place. E*TRADE announced a number of initiatives in its conference call. Curiously, Interactive Brokers reported a 15% year over year increase in their total headcount, a signal that in spite of everything, they appear to be building out their overhead and team resources, not shrinking it the way that Schwab recently announced they would.

We’re eagerly awaiting what TD Ameritrade will have to say about the journey forward in their conference call, however, we suspect it will be some variation of what as already been said by E*TRADE, Schwab, and Interactive Brokers. There is a strong platform and client experience appeal to TD Ameritrade, so they certainly have a leg to stand on in that department. Add to that another very strong trading platform experience and new entrants are going to have a tough time competing. Ironically, zero commissions might accelerate the onboarding of clients to TD Ameritrade at the expense of other “low cost” online brokerages.

It does beg the question as to what’s next for Robinhood – the zero cost online brokerage that essentially helped to catalyze the industry race to zero commissions. In a way, they appear to be victims of their own success, and the other online brokerages appear to be forcing the hand of Robinhood to compete on feature sets and value drivers beyond just commission price.

Just because commission prices have fallen to the ground, it doesn’t mean that the incumbent online brokerages won’t be hitting that same ground running.

Packaged Delivery

For any fast food aficionados, there’s nothing unfamiliar about the combo being a better deal than the single item. Turns out that DIY investors hungry for a deal at Canada’s bank-owned brokerages might just be in luck. Earlier this month, National Bank Direct Brokerage launched their newest pricing offer which also happened to come with perks (like lower commission pricing) for anyone who was also a National Bank client.

Another bank-owned brokerage also seems to be looking to offer a compelling online investing side-order to its banking clients. Scotiabank, parent to Scotia iTRADE, is offering up clients who sign up to the recently launched Ultimate Package 10 commission-free trades in the first year, and five commission-free trades every year that the account is open.

This new offer is likely going to generate some waves with DIY investors and potentially open a new front in the online brokerage battle.

In terms of the offer itself, the threshold for this banking package requires a minimum balance of $5,000 to be maintained in the bank account. However, there are a number of daily banking features and perks to keep things worthwhile. To boot, there is a cash incentive of up to $350 that would make this offer even more compelling relative to other onboarding offers from the online brokerage side of many big bank-owned brokerages. Finally, there is the ongoing commission fee waiver for five trades per year which is likely to appeal to the very passive investor. Combined with Scotia iTRADE’s selection of commission-free ETFs, there’s a lot on the table for the right profile of investor who has enough to surpass the inactivity fee threshold ($10,000). For investors under the age of 26, however, this is an especially interesting choice because those inactivity fees are waived for younger investors.

When it comes to the future of online trading in Canada, it appears that bank-owned brokerages are relying on their biggest asset – the banking relationship – to entice DIY investors to stay put.

This is almost certainly the next front in an ongoing battle for DIY investor assets, one that non-bank owned brokerages such as Questrade, Virtual Brokers or Qtrade Investor will have to figure out how to counter.

One likely scenario is for the non-bank owned brokerages to start providing high interest on uninvested cash – something that has clearly been shown to work for Interactive Brokers. As has been the case in the US online brokerage market, the major online brokerages have increasingly started to deploy “bank-like” solutions such as bill payment capability and even credit cards to enable a “one-stop shop” experience for personal finance management.

With more zero-commission fees on the horizon for the Canadian discount brokerage space, this latest combo experiment may buy brokerages some much needed time before having to drop their commission rates to zero. More importantly, combo offers like this keep customers from casting their gaze over the fence.

Interestingly, unlike a race to the bottom, this appears to be the next step in a bidding war for loyalty.

The unintended consequence to the bank-owned brokerages, however, is that they will have to get all points of the service experience right – from banking through to wealth management – because going forward, those fortunes, like those of their clients, are going to be tied closer together than they have ever been before.

Discount Brokerage Tweets of the Week

From the Forums

Clean Break

Breaking up is never easy, so in this forum post on the Financial Wisdom Forum, a user seeks advice on the process of leaving their full service broker for a discount brokerage account at NBDB.

Fee-dom

In search of investment options without fees that add up over time, a Redditor asks for discount brokerage options and advice for a first-time investor in this forum post.

Into the Close

With online brokerages and the ongoing fee-asco now in the spotlight, the focus on the industry is almost unprecedented. We are definitely in uncharted territory as to what will ultimately shake out as a direction for the industry, and that uncertainty is going to definitely translate into lots of questions from consumers.

Turns out that in addition to putting an X on a ballot this week, DIY investors are going to need to remember to tune into the blue X to stay on top of what’s going on. We’re thrilled to see where this next chapter takes us and are starting to get the feeling we’re going to be needed now more than even we could have imagined. Here’s to whatever comes next.

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Discount Brokerage Weekly Roundup – October 15, 2019

Welcome back to the market action after what was hopefully a restful long weekend. While many DIY investors will start the week feeling cheerful, it was pretty clear that after a stretch like the one we’ve just witnessed, a few online brokerages are feeling like they’ve had the stuffing knocked out of them.

With so much chatter and attention focused on commission-free trading battles taking place in the US, it’s easy for news stories and developments from Canadian online brokerages to fly under the radar. Fortunately, this post (Canadian) Thanksgiving edition of the Roundup is tracking some of the smaller but important developments taking place. Our first story highlights some deals activity that points to more volatility in October for discount brokerages in Canada. From there we’ll review emerging trends of features and enhancements that, curiously, aren’t getting a lot of coverage. As always, we’ll serve up the forum post favourites and a healthy portion of Twitter commentary to cap things off.

Discount Brokerage Deal-ite

With the end of the year in sight, there will be more than just Christmas decorations starting to light up online brokerages across Canada. Invariably, the more organized among us will already be done with their Christmas gifts and be kicking the tires on RRSP accounts. As such, Canadian discount brokerages are likely seeing their websites light up with traffic from these early shoppers looking to get a handle on what offers and features exist to support investing for retirement.

This past week, we noticed RBC Direct Investing, one of Canada’s largest bank-owned brokerages, re-release one of their more popular offers to Canadian DIY investors: 25 commission-free trades that are good for up to one year.

While this latest move by RBC Direct Investing coincides with the celebration of their 30th anniversary as an online brokerage in Canada, it’s clear that commission-free “offers” now have to stack up against the expectation and anticipation of “commission-free trading.” Indeed, a lot has changed over the past 30 years in the online brokerage industry, with the biggest changes taking place over the past few weeks.

Undoubtedly, the tsunami of zero-commission trading that slammed into the US online brokerage market has been (and will be) a hot topic of conversation among Canada’s discount brokerages. With the launch of this latest offer from RBC Direct Investing, other Canadian online brokerages will also be feeling the pressure to come to market with something equally, or more, compelling.

Timing-wise, October will continue to be an interesting and somewhat volatile month for Canadian discount brokerage deals – especially those from bank-owned online brokerages.

For example, Scotia iTRADE’s “Get Self-Started” lowered pricing and cash back offer is scheduled to expire on October 15th (at the time of publishing). Later in October, BMO InvestorLine’s cash back promotion is also set to expire.

Add into the mix that National Bank Direct Brokerage’s new lower pricing takes effect on October 15th, and it is clear that the remainder of the fall season will be great for DIY investors seeking out better pricing on commissions and deals suited to attract new business.

With all of the activity taking place this week, we’re banking on the fact that this will be just the beginning of a burst of activity from Canadian online brokerages who are gearing up for their most competitive year ahead yet.

New Website Changes Signal New Features & Strategies

With online trade commission pricing facing even more downward pressure, the writing is on the wall for the Canadian discount brokerages to get more creative and improve their user experience. Given the recent events in the US online brokerage market, the timetable to deploy these new changes has almost certainly been accelerated.

Commission commotion aside, over the past few weeks we’ve noticed some interesting changes to several online brokerages websites that have been curiously flying under the radar.

One of the first important changes noted was the Virtual Brokers website, which quietly underwent a significant facelift earlier this month.

Historically, the launch of a new website was almost always accompanied by some kind of announcement, press release, or even chatter on social media or investor forums. In this case, there was no mention to be found on social media channels run by Virtual Brokers or chatter from investors.

The look and feel of the new site is more streamlined and hints towards a new visual direction. It’s less “cartoony” and more corporate, with a heavy emphasis on their designation as the “best online brokerage” by the Globe and Mail.

It’s hard to say whether no reaction is better than a negative one, but it is noteworthy that nobody mentioning anything is possibly a harbinger of where online investors are pointing their attention (and where they aren’t) when it comes to Canadian online brokerages. Redoing a website is no small feat, so it’s a safe bet there was a lot of effort and expense that went into the redesign and what the ROI is will remain to be seen.

Interestingly, with a new CEO (Kurt MacAlpine) taking the helm at CI Financial, the parent to Virtual Brokers, as well as digital being “critical” to the long-term strategy at CI, it seems like there will have to be a series of significant changes coming.

Clearly the non-bank-owned brokerages (other than Questrade) are going to have to double down on efforts to stay in the spotlight given the competitors they are up against. A rethink of digital experiences and pricing strategies is almost certainly the next order of business to come.

On the bank-owned brokerage end of things, we have also been noticing changes appearing to the CIBC Investor’s Edge website, specifically with regards to the design and knowledge-driven features appearing on the homepage. Interestingly, there were whispers of a new platform coming from Investor’s Edge in a forum thread in September so these changes seem to be in line with, or supporting, a shift in either look and feel or user experience.

One of the most important evolutions to the CIBC Investor’s Edge site that has been taking place is in the knowledge base. From webinars to video content to articles, it appears that Investor’s Edge has been working quietly to build out this important kind of resource and making it publicly accessible to DIY investors.

Similar to Investor’s Edge, we’ve also taken notice of a buildout of the knowledge base at Scotia iTRADE. Historically iTRADE has invested consistently in webinars for educational content, however, over the past year or so there has been more focus being placed on supporting material (e.g. “how to”) and other financial content, such as their tax content series.

In spite of all of the changes mentioned above, one interesting observation regarding these additional features has been the relatively quiet, if not completely silent, roll out.

The emerging picture is a curious one. On the one hand, it’s clear that Canadian online brokerages are actively working to deliver value-added components to their product experience, in part, to offset the perception of being a place to go to for low-cost trade execution. That said, the accompanying lack of chatter or lack of excitement/buzz is anomalous.

With commission rates under pressure of falling further, it is going to become increasingly more important for online brokerages to highlight what makes them special.  The muted messaging and marketing from several notable online brokerages around new feature development make it harder for DIY investors to talk about what’s special about an online brokerage.

By cutting back on marketing, discount brokerages may feel like they’re saving precious resources, but if there’s one thing that online brokerages can’t afford more than lower commissions, it’s to be forgettable.

Discount Brokerage Tweets of the Week

From the Forums

Platform for Discussion

When it comes to picking a trading platform, finding a straight answer is somewhat of a challenge. In this forum post on RedFlagDeals, one forum user decided to create a new watering hole for fellow readers to contribute information on and learn about discount broker trading platforms.

Greener Pastures

There’s no question the environment is having a moment. But is investing in green energy as good for a portfolio as it is for the planet? A Redditor asks for advice to help his parents invest in green energy ETFs and gets some sage advice for those nearing retirement. Read more here.

Into the Close

After the long weekend, there’s a lot to digest heading into the week ahead (not just the leftovers either!). It will be another wild week for US online brokerages as earnings from Schwab cross the wire premarket on Tuesday, and E*TRADE after market on Thursday. The lingering questions for analysts, investors, and other industry participants is where things go from here, and this week, we may just get a much clearer picture.

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Discount Brokerage Weekly Roundup – October 7, 2019

You have to hand it to October. For whatever reason, this is the month of the calendar year where there happens to be more volatility than usual in stock markets. It even featured prominently in the Back to Future franchise as the date in which travelling through time would be achieved. Although time travel in a DeLorean may not be here, it seems like for Canadian DIY investors, the future of online trading is.

In this week’s Roundup, the commission rate carnage in the US takes centre stage. With all major online brokerages in the US dropping trading commission rates to zero, it was an historic time to be witnessing this seismic shift in this industry. Speaking of history, our follow up story is about a Canadian bank-owned brokerage who marked their 30-year anniversary as an online broker with a timely video on how much has changed. Of course, staying on top of the comments on social media and in the forums is standard fare, and these close off this edition of the Roundup.

US Online Brokerage Commissions Rocked

There are big deals, and then there are the kinds of weeks like the one the online brokerage industry in the US had. In what could genuinely be characterized as the most explosive (or implosive) week in online brokerage history, investors, media, and online brokerages alike all watched in jaw-dropping awe as commission prices for trading online collapsed to zero. Everywhere.

Within one week of the already low-cost online brokerage Interactive Brokers announcing that they would introduce zero-commission trading as part of IBKR Lite, the entire suite of online brokerage players in the US followed. Starting on October 1st with Charles Schwab, then TD Ameritrade, and finally E*TRADE on October 2nd, billions of dollars in commission revenues were vapourized, along with market caps for the publicly traded US online brokers.

With the moves catching many in the investment world (surprisingly) by surprise, stock prices for the US online brokerages were hit hard. Charles Schwab dropped by 9%, TD Ameritrade was decimated to the tune of 25%, and E*TRADE fell by 16%. The blow back even hit Canadian bank TD for a drop of 2%, which owns 42% of TD Ameritrade.

There is certainly lots to unpack, and likely still many more stories to emerge from what just happened. One thing that does stand out, however, is just how fast the industry as a whole followed the lead of Interactive Brokers.

As we mentioned in last week’s Roundup, the “Z Day” playbook had likely already been written, with many online brokerages in the US aware of what could or would need to happen if one of the major competitors took commission rates to zero. For that reason, although it was painful to do so, the industry was prepared to respond quickly in the event the nuclear option was triggered.

As part of the fallout, the question many Canadian investors are asking (if not outright demanding an answer to) is when online brokerages in Canada will move to full zero-commission trading.

When the online brokerages in the US finally hit the big red button, Schwab was offering standard commissions at $4.95 and both TD Ameritrade and E*TRADE were at $6.95 (all dollar amounts in USD).

For an apples to apples comparison, the “standard” commission rates for Canadian online brokerages range from $4.88 at HSBC InvestDirect to $9.99 (at Scotia iTRADE and TD Direct Investing). Other online brokerages offer variable pricing of $0.01/share with minimums of $1 (Interactive Brokers), $1.99 (Virtual Brokers), and Questrade ($4.95) so depending on the order size, it may be cheaper to execute certain trades there than by paying a fixed fee. And, as we reported last week in the Roundup, National Bank Direct Brokerage will soon be launching their active trader pricing at $0.95. Flat fee pricing for active traders at Virtual Brokers is $3.99, and $4.99 at Scotia iTRADE.

The key takeaway is that the point of no return has likely already been passed for Canadian online brokerages’ commission pricing. For some quick context, Schwab’s $4.95 USD converts roughly into $6.59 CAD.

So, it seems that Canadian online brokerages are going to be counting on the “inertia” effect of Canadian DIY investors as long as they can, hoping that investors don’t want to go through the “hassle” of switching online brokerages if the perceived benefit is not really worth it.

It is worth pointing out that the majority of the word “meh” is comprised of “eh” and that might be appropriate to characterize what the response would be here if Canadian online brokerages took down their pricing to the near zero level. As such, it is likely that Canadian online brokers have much more time than their US counterparts to bring commission rates down. And that time buys flexibility.

One of the important differences between the Canadian and US online brokerage marketplaces is that the level of competition is nowhere nearly as intense. So, while the impact of publicly traded online brokerages taking their commission rates to zero makes headline news and moves markets in the US, there are no publicly traded online brokerages here in Canada to make the same kind of splash.

If zero is not the right number, then what is? Would it really be worth it for passive investors to switch online brokerages if the commissions they paid per trade were $3 or $2 or just $1?

For example, it might not be inconceivable that a Canadian online brokerage attempts to try the gym membership strategy of charging a monthly fee whereby traders can make as many trades as they want (subject to some very well thought out terms and conditions).

Alternatively, Canadian online brokerages could take their rates down to a “toonie” or a “loonie,” and the rates could seem inconsequential. A round trip using a cash fare on the TTC (Toronto’s transit system) costs $6.50 (as of the writing of this post) so a round trip for a stock trade that came in at less than that (without the risk of similar delays hopefully!) would be easy marketing fodder.

Perhaps the biggest ace up the sleeves of bank-owned online brokerages in Canada would be the bundling of banking relationships to achieve the best commission rates. National Bank Direct Brokerage’s latest pricing move is a perfect example of this approach where clients of National Bank get a break on commission pricing at NBDB. A much larger online brokerage competitor could, however, afford to take pricing even lower than the $6.95 watermark. For the non-bank-owned (or non-credit union-owned) brokerages, this latest pricing cut is a bellwether to move faster to cut rates and figure out other value drivers. Dragging their heels is not an option any more.

There will undoubtedly be lots to continue to watch unfold as the US industry tries to adjust to a new commission rate environment while still trying to remain profitable. One of the main forecasts for what will happen next is that industry consolidation will take place.

Sustainability in the online brokerage space lies in scale, which for now will be achieved through acquisition, so it won’t be surprising to see E*TRADE surface again an as acquisition story. Potentially, however, so could Robinhood. It has been structuring itself for an IPO and has been operating as a zero-commission broker from day one, so it not only has the infrastructure and critical mass of key client segment baked in, but it also has founders and their backers looking for a liquidity event. Add to that the terrible climate for tech IPOs in the US at the moment, and it seems like paying a premium for a Robinhood now would likely leapfrog an acquisition of E*TRADE. Like other brokerages, E*TRADE’s forecasts are going to be revised downwards, which means they’re also likely to be acquired at somewhat of a discount if they do get acquired at all.

For Canadian online brokerages, it is likely that the battle for DIY investors will further its split into either passive investors or active ones. With lower commission fees will likely come more trading, and more active traders need better tools – like trading platforms, and data, to time their entries and exits. With zero commissions, frequent trading is likely to see a resurgence, so those novice “day traders” on the sidelines will undoubtedly be enticed to step back in.

On balance, it seems that online brokerages who can offer a better trading experience are going to likely earn higher praise than those who simply offer lower pricing. Any broker who offers both a great trading platform and lower price for commission (*ahem Interactive Brokers*) will be a natural contender for Canadian DIY investors going forward. Throw in the convenience of managing banking, credit cards, line of credit or a mortgage, and you’ve got a trifecta for DIY investors.

The only question now is how long Canadian DIY investors will have to wait before someone claims the mantle of being the first to offer all three in this brave new commission-free world.

RBC Direct Investing Celebrates 30 Years as an Online Brokerage in Canada

The universe can be somewhat poetic in its timing. Amidst the backdrop of all of the activity in the online brokerage space in the US, this past week RBC Direct Investing officially celebrated the incredible milestone of 30 years as an online brokerage for Canadians.

To mark the occasion, the team from RBC Direct Investing opened the market at the Toronto Stock Exchange and produced a video commemorating the journey from 1989 to 2019.

It will undoubtedly be an exciting year for all the online brokerages, but in particular for bank-owned online brokerages like RBC Direct Investing for the remainder of 2019 and 2020.

No stranger to jumping ahead of their bank-owned brokerage peers in lowering commission prices, RBC Direct Investing was the first of the big bank-owned online brokerages to lower their commission rates down to $9.95 a trade in 2014. Like their peers, it’s clearly a question of when, rather than if, commission prices will drop again and by how much.

We’re keen to see whether RBC Direct Investing will once again set the pricing pace among the bigger brokerages and especially given the spotlight being shone on zero-commission rates in the US (and further afield in Europe and Australia). Given the volatility in the space right now, we’re curious where the next 30 (days) takes Canadian DIY investors.

Discount Brokerage Tweets of the Week

From the Forums

Unluck-eh

While applying for a permanent residency, a Redditor who’s new to Canada is having trouble opening a TFSA and has asked the DIY investor community for their advice. Read the full discussion here.

Uncomfortable Questions

A Redditor with a managed portfolio is curious about index funds but worries that the inquiry will offend their financial advisor. DIY investors discuss the situation and the potential profit outlook here.

Into the Close

Staying on the throwback to the 80s, it was 30 years ago in 1989 that the video game Zero Wing was launched, which eventually gave rise to the meme “All your base are belong to us.” Video games, like the online brokerage industry, have changed dramatically since then. What the events of the past week have shown, however, is that the future can show up faster than expected and that those clamouring for commission-free trading (at least in the US) have now received what they wished for. While we now chuckle at how silly the games 30 years ago look compared to today’s, it is also remarkable to think that one day it will be considered equally silly that online brokerages were able to charge as much as they were for trades for so long.

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Discount Brokerage Deals & Promotions, October 2019

*Updated Oct. 15* There probably couldn’t be a better name for the current season that online brokerages find themselves in this year. Fall is definitely here and more than just the leaves on the trees, commission rates are dropping to the ground this October.

The casualties in the US online brokerage space are making headlines and among Canadian discount brokerages, there are already signs commission pricing is falling. The latest Weekly Roundup highlighted National Bank Direct Brokerage’s move to lower their rates substantially and their new offering for younger investors.

For those keeping score at home, this is just the beginning of October.

In terms of the impact to and outlook on deals and promotions, it’s safe to say that there are a lot of folks in the Canadian discount brokerage industry who are going back to the drawing board on how to navigate the coming tsunami of price drops. One possible life boat (for now) will be generous promotional offers – which is great news for DIY investors heading into the end of the year and what is almost sure going to be the most competitive RSP season yet.

For the moment, there wasn’t a significant amount of discount brokerage deal activity to start the month. Questrade extended their transfer fee offer while HSBC bid farewell to their summer promotion. October has historically been known as a volatile month for stock markets, and for deal hunters in the Canadian discount brokerage space, it’s likely to be just as wild a ride. Hang on tight!

Expired Deals

HSBC InvestDirect’s 30 commission-free trades promotion expired at the end of September.

Extended Deals

Questrade has extended their transfer fee promotion indefinitely. The terms and conditions don’t specify an end date to this offer although Questrade states they can change the terms of the promo at any point. This promo continues to see traction and offers coverage of transfer fees of up to $150 for switching to Questrade with no minimum transfer amount required to qualify. Scroll down for more info!

*Update October 15 – Scotia iTrade has extended their $50 cash back offer, which also includes discounted commission pricing until March 2020. This promotion has been extended from October 15th to the end of the month; for those DIY investors that are looking to open a new account, this could be the promotion for you. Further details on the offer can be found below.

New Deals

*Update October 15 – RBC Direct Investing is offering a new deal on commission-free trades. If you open a new Direct Investing account by December 13th, you can qualify for 25 commission-free equity and ETF trades to use within a year. More details on this promotion can be found below.

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2019
Scotia iTrade Open a new qualifying account and fund it with a minimum of $2,500 and you may be eligible to receive $50 cash back. This offer also includes $6.99 per trade commissions until March 1, 2020. Be sure to read the terms and conditions for more details. $2,500 $50 cash back and $6.99 per Canadian and US equity/ETF trade. Cash back will be deposited by January 31, 2020. $6.99 per trade commission pricing active until March 1, 2020. Cash Back Offer Details October 31, 2019
Open a new RBC Direct Investing account by December 13th and you may be eligible for 25 commission-free equity and ETF trades. You must deposit or transfer $5,000 in your account by February 14th, 2020 to be able to use this promotion. Make sure that the offer code MCFT1 is applied if you wish to qualify for this deal. As always, be sure to take a look at the terms and conditions for further details. $5,000 25 commission-free trades 1 year Commission-Free Offer Details December 13, 2019
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo none
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2019
BMO InvestorLine Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $100,000; B) $250,000; C) $500,000+ or D) $2M+, and you may be eligible to a cash back reward of up to A) $100; B) $225; C) $600 or D) $2,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $100,000 B) $250,000 C) $500,000 D) $2M+ A) $100 B) $225 C) $600 D) $2,000 Cash back will be deposited the week of June 15, 2020. BMO InvestorLine Cash Back Offer Details October 31, 2019

Expired Offers
Last Updated: Oct. 15, 2019 12:02 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 2, 2020
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none

Expired Offers
Last Updated: Oct. 31, 2019 15:30 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Disnat Desjardins Online Brokerage 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 Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Last Updated: Oct. 2, 2019 00:30 PT

Other Promotions

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

Expired Offers
Last Updated: Oct. 2, 2019 00:30 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Oct. 2, 2019 00:30 PT
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Discount Brokerage Weekly Roundup – September 30, 2019

One of the best parts of summer happens to be ice cream. Of course, just because the season is behind us, it doesn’t mean that we can’t enjoy a good scoop – or in this case, a couple of incredible scoops – of online brokerage news that are sure to put just as big of a smile on the faces of DIY investors as the frozen treat would.

In this edition of the Roundup, we dish out two incredible stories about pricing changes. The first is a game-changing announcement south of the Border that is sure to make waves in the industry here in Canada. And if those waves weren’t enough, we dive into the news that is going to also make a major splash with DIY investors and other discount brokerages here in Canada, as the first big shift in pricing from a bank-owned online brokerage in several years is coming. Not to be glossed over, we’ve also included a healthy portion of treats from Twitter and the DIY investor forums.

Z-Day is Here: Interactive Brokers Offers Unlimited Commission-Free Trades

After the meteoric rise in popularity of US online brokerage Robinhood and their zero-commission trading fee model, the online brokerage industry as a whole knew it would be only a matter of time until they had to decide to follow suit.

When Robinhood was first launched in 2014, it’s fair to say there was a substantial level of skepticism that zero-commission trading would ever take flight, let alone be profitable. Yet, year after year, momentum behind the zero-commission brokerage grew, attracting major investors (such as Sequoia, Google’s venture capital fund Capital G, and others), achieving a USD $7B valuation and earning numerous awards for design and user experience. Beyond just the product or platform, it turns out that Robinhood also appealed heavily to the next generation of online investors: millennials.

Fast forward to last week, and any skepticism about the viability of the business model has been put to rest by a firm that few predicted would become the first of the major online brokerages in the US market to also take trading commissions to zero.

Interactive Brokers, already one of the lowest-cost online brokerages in the US (and internationally), announced last week that they would be rolling out a new option of their online brokerage service known as IBKR Lite which will provide online investors commission-free trading on all US equities and ETFs. The existing service provided by Interactive Brokers (whose ticker symbol is IBKR) will be rebranded to IBKR Pro and will retain the existing pricing and feature set.

At the heart of the new IBKR Lite is how and where an order for an equity or ETF trade gets routed. Rather than go through Interactive Brokers’ proprietary order routing algorithm, known as the IB SmartRouting system, orders for equities placed through IBKR Lite will be sold to market makers (aka high-frequency traders) who will be able to take advantage of minuscule variations in pricing that can then be turned into profits.

Often snubbed by Interactive Brokers’ founder and CEO, Thomas Peterffy, selling client order flow or trading against clients was touted as contrary to the core of Interactive Brokers – who has always sought to offer clients the best execution price for trades.

Interestingly, it was just over a year ago that they opted to become the first company to be listed on IEX, the US stock exchange founded by Brad Katsuyama – of Flash Boys fame – largely because there was strong overlap in organizational values. Just a few days prior to the announcement that Interactive Brokers would be launching IBKR Lite, however, Interactive Brokers announced that they would be delisting from IEX and moving back to NASDAQ, a fascinating turn of events in its own right.

Against the backdrop of the launch of IBKR Lite, something that is almost antithetical to the IEX mission, the continued presence of Interactive Brokers on that exchange seems to now be irreconcilable. Further, with the exit of Interactive Brokers, IEX is also exiting the listings business altogether and will not be seeking at this time to list publicly traded companies on the exchange.

So – why the about-face for Interactive Brokers?

Ever the entrepreneurial organization, Interactive Brokers is agile enough to see what the market is asking for and be able to mobilize to deliver. The past two to three years have seen a number of innovative services added to the Interactive Brokers ecosystem, that have sought to deepen the relationship (and share of wallet) Interactive Brokers has in its clients’ financial lives.

Ultimately, the move to zero commission fees appears to be a ‘why not’ moment at Interactive Brokers – if the market is showing that there are investors who are willing to forsake the best execution price for a trade-in order to save on the commission up front, then Interactive Brokers is simply leaving money on the table by not doing this.

For many years, their primary discount brokerage competitors (for example, TD Ameritrade) have been selling order flow and generating significant revenues from doing so. A snapshot from the FY18 report for TD Ameritrade shown below illustrates the growth in revenue derived from order routing and clearly shows just how lucrative this has been for them. From FY17 to FY18, for example, the revenue from this source grew 43% to USD $458 million.

And, in FY19, revenue from order routing has contributed to 32% (USD $365 million) of the trading revenues earned by Ameritrade.

While the information is publicly available, what appears to be different about the approach Interactive Brokers is taking compared to that of their peers is that they are being very transparent about the fact that users of IBKR Lite are getting commission-free trades because they are giving up (or trading away) best execution price. Even zero-commission trading firm Robinhood isn’t as clear as they could be in stressing this to potential clients.

For other online brokerages who both charge commissions for trades AND make money from routing orders, the new launch by Interactive Brokers is highly problematic.

Competing online brokerages will now be forced to answer the question of the real value of order execution, as well as the value of the other features that define a client experience, whether that be great user experience, an amazing mobile app, education, charting, support, access to research, or some other feature.

While the reaction of stock prices of the online brokerages to the news was generally negative, there are clearly some online brokerages that were more negatively impacted than others. TD Ameritrade, who derived 36% of its revenues in FY18 from trading commissions and order execution, for example, was down 6% on the news while Schwab fell only 2% – a sign that the latter is less reliant on trading commission revenues than the former.

Despite the announcement, the online brokerages in the US have undoubtedly prepared a playbook for this scenario. They may not have known exactly when this “Z-day” would come but in conference calls over the past year, the spectre of zero commission trading has been raised and addressed with the general response being along the lines of “we can handle it”.

Earlier this year, Peterffy hinted at something big happening at Interactive Brokers in the latter stretch of the year. While we thought that the sports betting platform might have been it, clearly the market-disrupting thing Peterffy was referencing was the deployment of this zero-commission option. Evidently, Interactive Brokers has seen the writing on the wall when it comes to mass market appetite for commission fees on trades, and what consumers are willing to trade away for those prized zero-commission rates.

For the moment, the zero-commission fee offering of IBKR Lite is restricted to the US. Canadian discount brokerages, therefore, have a bit more breathing room to figure out their game plan if and when a major player here decides to offer up full commission-free trading here.

Already offered (with some restrictions) here by Wealthsimple Trade, this feels a bit like déjà vu with Robinhood.

Canadian online brokerages are generally slower to innovate than their US counterparts – and the skepticism on the street around Wealthsimple Trade still permeates. For that reason, it is unlikely that a larger online brokerage in Canada is going to move to full zero commission trading until they absolutely have to.

For the foreseeable future, the battleground among Canadian brokerages will clearly be in other value offerings – like account integration, ease of access (and stability!), of platforms (including mobile), and user experience to name a few. Like their US counterparts, Canadian discount brokerages had better be prepared to clearly explain to DIY investors what benefits there are to be paying for trading commissions.

If Canadian brokerages ignore or downplay the accelerating trend towards zero-commissions, however, they will ironically have to pay a hefty inactivity fee for that.

At National Bank Direct Brokerage, It Pays to be Young, Stay Active and Be Connected

Were it not for the news out of the US online brokerage market this past week, the big news story would have been in the Canadian discount brokerage market, when it broke that National Bank Direct Brokerage is getting to shake up their commission pricing and making a very aggressive play to go after young (aka millennial) investors as well as the active trader segment.

In a mention in the French language publication La Presse, National Bank Direct Brokerage’s President Claude-Frédéric Robert was quoted as saying that National Bank Direct Brokerage is getting set to roll out a new pricing program for investors aged 18 to 30, that offers up a generous 10 commission-free trades per year and a decreased commission pricing tier of $4.95 per trade. Added to that, there are no account minimums required or inactivity fees to be charged.

For very active traders – those making more than 100 trades every three months – the news is also great – a jaw-dropping $0.95 pricing for trades.

And finally, individuals who have an account with National Bank will benefit from that relationship by getting standard commission rates of $6.95 per trade instead of $9.95.

So, as referenced above, the trend towards zero commission trading is finding its way to Canadian discount brokerages and has shown up yet again at National Bank Direct Brokerage, which already offers up commission-free ETF trading on all ETFs (with a caveat of a minimum purchase/sale amount required to qualify for the commission-free status).

This latest move by NBDB is a salvo at both their bank-owned online brokerage peers – in particular, Desjardins Online Brokerage – and the low commission leader in Canada, Questrade. Offering up 10 commission-free trades per year is unheard of in the marketplace today, so that alone will generate buzz among the younger investor crowd, who are especially keen on passive investing. And, active traders are sure to be kicking the tires with sub $1 trading commissions.

While services like Wealthsimple Trade offer unlimited commission-free trading, there are still a number of restrictions in place on the kinds of markets (e.g. Canadian Securities Exchange or TSX-Venture listed securities) investors can access as well as that whole forced currency conversion thing to trade US-listed securities. Neither Wealthsimple Trade nor Questrade are bank-owned online brokerages, so there is not the reputational security or the integrated convenience factor of managing multiple financial products in one place (yet).

While we are awaiting more details on the pricing plan, clearly it pays to be a young investor in 2019.

With respect to younger investors, the calculus here is interesting for National Bank Direct Brokerage. Young investors don’t have the kind of investible assets (yet) that make them attractive prospective clients. What is likely the case is that NBDB is hoping to generate enough traction with and provide sufficient incentive to younger investors so that they stick around with NBDB, especially as they start working/earning more and begin inheriting wealth from older generations.

To say this is interesting is really putting it mildly.

The test being played out in real time is whether bank-owned brokerages like NBDB can edge out peer bank-owned firms before they act to match or beat the offer and before newer players figure out how to offer more bank-like services (e.g. higher interest on idle cash).

For millennial and younger investors, NBDB has got it right, insofar as pricing is clearly a pain point. That said, they are in for a tough fight when it comes to user experience on digital platforms, such as mobile, where those prized millennial and younger investors are going to be spending most of their time. The mobile experience for National Bank Direct Brokerage is something that will be crucial to their success perhaps as much as if not more so than the price of commissions.

Whether it’s Netflix, Skip the Dishes, Uber or some other subscription or fee for service offering, paying the money for things isn’t the issue so much as the ease with which the experience takes place is. If it feels hard to do, the price is already too high.

Once the pricing rolls out officially in October, NBDB will be poised to make a splash about it and their bank-owned peers will have to take a serious look at both their ‘millennial engagement’ strategy and active investor offering when it comes to pricing.

It’s never been a better time for younger investors to be DIY investors. With discounted (now free) commissions, waivers of account minimums and inactivity fees, Canadian online brokerages are clearly competing for investors who may not have lots of capital now but with whom important relationships need to be built. One crucial thing for brokerages to keep in mind though is not only what it will take to win the interest of these new investors, but also to keep it.

Discount Brokerage Tweets of the Week

From the Forums

Short Changed by a Long Transfer

Worried about a recently transferred account that seems to be missing funds, a DIY investor on Reddit vents about Questrade. Read the full conversation and the response from the online brokerage here.

Dazed and Confused

Puzzled after a debate that started over a family dinner, one DIY investor asks fellow Redditors to clarify whether an RRSP or a TFSA is the better option for saving and investing. Read the full discussion here.

Into the Close

Snow getting dumped on Calgary in September is sort of crazy, but not out of the realm of possibility. It is, by comparison, a far saner development than what just got dumped on all of the other online brokerages this past week. The avalanche of pricing news that is sure to follow in October and November from the online brokerages in Canada and the US is likely to make the Calgary snowfall in September seem like cupcake frosting. We started with dessert and ended with it too – something tells me this is a particularly sweet time for Canadian DIY investors.

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Discount Brokerage Weekly Roundup – September 23, 2019

Fall is finally here. Along with the changing colours of the leaves, it’s also a time that the fashion industry looks to shine. Much like fashion, investors are also interested in what’s du jour. Trendspotting is a big feature in both fashion and investing and it seems that knowing where to spot the trends is equally challenging.

In this week’s edition of the Roundup, we take a look at where investors are turning to in person for their dose of trendspotting, especially given the upcoming turbulent market forecast. From there, we take another look at the double-edged sword of social media and its impact on online brokerages, with one bank-owned online brokerage being called out by a fairly influential Twitter user. To add to the social media content, we’ll dish out more tweets of the week as well as comments from DIY investor forums to cap things off.

Investor Conferences: Getting Together to Chat About Investing

Hindsight is 20/20, but ironically it is 2020 that a lot of investors are looking to with uncertainty. With the fall season now here, it means that the new year is just around the corner and given how stock markets have behaved this year, it’s no surprise that investors are more anxious than ever to get some perspective on how to navigate the current and upcoming market forces.

One of the ways to do so is by learning from market “experts” and analysts on where to find trading opportunities amidst the headline noise. This past weekend, both Toronto and Vancouver played host to two investor-focused conferences that provided insights to consider heading into 2020 and beyond.

In Toronto, the annual edition of the MoneyShow took place, and, as with previous editions of the show, featured a solid lineup of well-known personal finance names, including Rob Carrick from the Globe and Mail, Peter Hodson of Canadian Money Saver and 5i Research, and Benj Gallendar of Contra the Heard, to name a few. There were also some well-known stock and options trading personalities from the US speaking at the show, such as Tom Sosnoff, founder and CEO of tastytrade, and frequent CNBC personality Jon Najarian.

Often a reflection of the sentiment among retail investors, this year’s MoneyShow featured a couple of core themes.  One of the more prominent themes was ETF investing. With the gold and silver sponsors of the show being big names in the ETF space, as well as a number of speakers focusing specifically on ETF investing, this was clearly an important topic and reason to attend the show.

Another interesting theme was cannabis investing. In spite of recent volatility and pullbacks in investor interest, there were a number of publicly-traded cannabis firms in attendance, as well as a special investing panel on the topic.

Being a central gathering place for retail investors, it was also interesting to observe which online brokerages appeared as exhibitors. An interesting combination of bank-owned online brokerages, BMO InvestorLine and National Bank Direct Brokerage, were part of the exhibitor list. RBC’s digital advice (aka roboadvisor) InvestEase was also featured prominently as a sponsor of this year’s MoneyShow.

Earlier this month, several online brokerages were also sponsors of the Options Education Day in Toronto – a recurring set of events that focus on educating DIY investors on options trading.

Across the country, the weather wasn’t nearly as nice for the third edition of the Extraordinary Future conference in Vancouver. In contrast to the show in Toronto, the tone and focus for Extraordinary Future were decidedly forward-looking.

Among the big ideas being batted around at this two-day show (the second day of which is currently underway as of the publishing of the Roundup) were biohacking, cannabis and technology, digitization of healthcare, eSports and many more frontier-industry topics. While some of these topics, such as eSports and plant-based foods, are very much in the spotlight, the organizers of this show were very much intent on creating a platform for ideas that are on the cusp of becoming commercially viable.

For that reason, both risk and reward profiles for this year’s show would pull in slightly different crowds than at the Moneyshow. Nonetheless, it was interesting to observe that unlike the show in Toronto, in Vancouver, there was not an online brokerage to be seen exhibiting at this year’s show (or in previous years).

It is the absence of online brokerages at a show like Extraordinary Future, which is perhaps telling of where the focus is for the industry as a whole.

Pragmatically, it pays to follow the money – and with so many Canadian investors buying into ETFs, certainly the crowds and lineup of speakers reflect the interest to which online brokerages would like to be proximal. It also doesn’t hurt that the conference takes place in Toronto. That said, the stories that get investors excited are the ones that would be covered at a show like Extraordinary Future. For an industry that is now starved for engaging content ideas as well as how to connect with audiences beyond their traditional cohort of older investors, it is somewhat of a mystery to see them absent at a show like this (fun fact, there is now an egaming ETF).

For Canadian online brokerages to truly be seen as innovative, however, they have to be doing ‘innovative things’.

Enhancing platforms and features are one way to do this, but being present at, or even participating in forums where the next big ideas are being hatched, seems to make far more sense to earn the title of ‘innovative online brokerage’.

Building trust and earning the reputation of being innovative implies, almost by definition, doing things differently. We’re keenly watching to see which brokerage (or brokerages) will be the first to do so.

Friction on Twitter: Scotia iTRADE in the Hotseat

It seems almost trite to have to say so, but it pays to remember that people are invested in their money and not just investing their money.

For most DIY investors, earning enough to invest and then putting that money to work in assets like equities means having to come to grips with the prospects of losses in the market. One of the places that DIY investors are not expecting to incur losses, however, is with their online brokerage.

For any regular reader of the Weekly Roundup’s ‘Discount Brokerage Tweets of the Week’ section, there are, however, countless examples of outages or system disruptions resulting in missed opportunities or even being blamed as the ‘cause’ of losses. Occasionally, we’ve even witnessed investors flagging margin calls being triggered ‘unfairly’ on social media.

One thing that we have rarely, if ever, witnessed is something like the tweet posted by the Twitter account of Investor Relations Vancouver:

Why this sticks out as unusual, is that it is coming from a Twitter handle of a company (not just an individual investor) that is directly advising its more than 27K followers (and of course anyone who will listen) to avoid using Scotia iTRADE because of mishandled trades.

The direct nature of the message and the distribution of it both combine for a very sticky public conversation that may unfold. Just last week, Questrade was ensnared in a very public customer service moment when they were called out in a Reddit post for language in their security guarantee that made it less than ideal for coverage. Questrade quickly contained and remedied what was a rather rapid and large discussion.

So, while the incident that Questrade encountered was different in several respects from the one that Scotia iTRADE now finds itself in, there are nonetheless some similarities. Having to address client service issues in the public eye is part of the reality of being an online business in 2019, and certainly how this unfolds is something for all investors, clients, and competitors to see.

Historically Scotia iTRADE’s Twitter channel has been fairly responsive in fielding concerns or questions by clients. A scroll through the recent tweets directed at the iTRADE Twitter channel reveals that, as of August, response times there have gone down compared to historical norms.

Finally, as an interesting juxtaposition, a few weeks ago Scotia iTRADE held a session geared towards recruiting social media influencers to answer questions about investing, and to share their experiences with Scotia iTRADE. In this case, there is clearly an influential voice on social media speaking up about their experience and, like many observers, we are certainly curious to see what transpires.

Discount Brokerage Tweets of the Week

From the Forums

Freshly Minted

A young Redditor just started earning a steady income and is looking to learn about DIY investing. Read through helpful suggestions from the forum here.

Divided by Dividends

DIY investors got into a heated discussion over a video that asserts that the growth of dividends is not necessarily an indicator of good stock. Read the full Reddit debate here.

Into the Close

That’s a wrap on another edition of the Roundup. There’s no mistaking it, there are definitely bears lurking about in chatter about the markets, even though the indices are pushing new highs. Certainly being pushed to new heights is what’s making some bears cranky. Nonetheless, with October just around the corner, new highs in spitting distance and the bearish sentiment being tested, if there’s one thing you can bet on, it’s turbulence.

 

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Discount Brokerage Deals & Promotions, September 2019

*Updated Sept. 4* When it comes to discount brokerage deals, it appears that this month, school is definitely in session. Even though there are no new deals that officially launched at the beginning of September, there were several that snuck in at the tail end of August, just in time for the Labour Day weekend and for the start of the new month.

Change is almost a given in the stock market these days, so it seems fitting that there be some turnover and excitement in the deals space. To that end, last month saw the start and finish of the RBC Direct Investing commission-free trade offer and the expiry of the CIBC Investor’s Edge commission-free trading offer. Early on in September, BMO InvestorLine is also poised to launch a new deal, too.

Despite the action at Canada’s bank-owned online brokerages, it was Scotia iTRADE that made the biggest splash in the discount brokerage deals pool at the end of last month.  With a creative deal for new clients as well as promotions for existing clients being offered by iTRADE, this online broker has left little doubt that they’re prepared to take the rest of the online brokerages back to school when it comes to interesting offers for DIY investors.

It’s clear that the timing of Scotia iTRADE’s offers are no accident. September is the time of year when investors are typically returning from vacations and getting back into the markets, so it would not be too surprising to see deals activity at other online brokerages begin to ramp up too and respond in kind with offers of their own.

As always if there are any new or interesting discount brokerage deals out there that online investors could benefit from, let us know in the comments below.

Expired Deals

*Update September 4 – The cash back promotion offered by BMO InvestorLine has expired, but quickly replaced with a new cash back deal. More details on the offer can be found below.

The two biggest offers that expired in August included an offer from CIBC Investor’s Edge and a commission-free trade from RBC Direct Investing.

Extended Deals

*There are no extended deals to report this period*

New Deals

*Update September 4 –BMO InvestorLine has released a new cash back promotion available for new qualifying accounts. You may be eligible for cash back when you deposit $100,000+ in your account. Enter promotion code SPARXCASH into your Online Application Form to qualify for this award. Scroll down for more details.*

Scotia iTRADE is offering up $50 in cash back for new clients as well as a standard commission rate of $6.99 per trade (until March 2020). In addition, this offer is accessible with a minimum deposit of $2,500.

For existing Scotia iTRADE clients, there are also some compelling incentives being batted around. The first is for individuals who add a certain dollar amount to their accounts to be eligible for commission-free trades. Since these are for existing clients, the typical YMMV (your mileage may vary) qualifier applies, however iTRADE is offering 5 commission-free trades for deposits of $10,000.

In addition, and potentially the most compelling offer for existing clients, is that Scotia iTRADE is offering up to 3 commission-free trades for attending an educational webinar on the “US Dollar Position” on September 24, 2019. Trading commission-free trades for attending a webinar is a very tempting offer that has very little downside for investors and could be something that other online brokerages that offer DIY investor educational webinars look to add into their mix to encourage participation.


Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open a qualifying account at HSBC InvestDirect and you may be eligible to receive up to 30 commission-free North American equity or ETF trades. No minimum deposit is required for this offer and it is open to new and existing clients. Trades are eligible to be used for up to 60 days. See terms and conditions for full details. n/a 30 commission-free trades 60 days HSBC InvestDirect Summer Offer September 30, 2019
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2019
Scotia iTrade Open a new qualifying account and fund it with a minimum of $2,500 and you may be eligible to receive $50 cash back. This offer also includes $6.99 per trade commissions until March 1, 2020. Be sure to read the terms and conditions for more details. $2,500 $50 cash back and $6.99 per Canadian and US equity/ETF trade. Cash back will be deposited by January 31, 2020. $6.99 per trade commission pricing active until March 1, 2020. Cash Back Offer Details October 15, 2019
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo none
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2019
BMO InvestorLine Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $100,000; B) $250,000; C) $500,000+ or D) $2M+, and you may be eligible to a cash back reward of up to A) $100; B) $225; C) $600 or D) $2,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $100,000 B) $250,000 C) $500,000 D) $2M+ A) $100 B) $225 C) $600 D) $2,000 Cash back will be deposited the week of June 15, 2020. BMO InvestorLine Cash Back Offer Details October 31, 2019

Expired Offers
Last Updated: Sept. 04, 2019 09:55 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 2, 2020

Expired Offers
Last Updated: Sept. 1, 2019 23:30 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo September 30, 2019
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Disnat Desjardins Online Brokerage 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 Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Last Updated: Sept. 1, 2019 23:30 PT

Other Promotions

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

Expired Offers
Last Updated: Sept. 1, 2019 23:30 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Sept. 1, 2019 23:30 PT
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Discount Brokerage Weekly Roundup – August 26, 2019

It seems like more and more discussion is taking place around the “R” word. Of course, with stranger things taking place around the world with respect to interest rates, trade wars, and conflicting accounts from economic indicators, it’s tough to make heads or tails of what’s going on. Despite the pervasive and heightened uncertainty, one thing is clear: there’s a lot of forecasting taking place about what may happen next in the stock markets.

In this edition of the roundup, we pile onto the prognostication bandwagon to forecast what online brokerages and DIY investors can expect heading into the last few months of the year. From what online brokerages have already telegraphed to signals of interesting developments, an intriguing picture is forming of the new landscape for online brokerages. As always, we’ve got a healthy serving of DIY investor chatter from Twitter and the investor forums to close things out.

Interactive Brokers Big Bet Gets Bigger

As far back as April of 2019, Interactive Brokers founder and outgoing CEO, Thomas Peterffy, signalled that Interactive Brokers would officially launch something “big” to catalyze growth to their business. That big bet, as it turned out, was the launch of a simulated sports betting platform (launched in July) designed to attract individuals who were a cut above the traditional gambler. Think Moneyball meets Wall Street.

With September now just a few weeks away, the kickoff to the new season of the NFL will also usher in a tsunami of football chatter around trading desks and water coolers across North America. As it happens, the NFL is slated to be added to the lineup of games that users of the Interactive Brokers sports betting simulator can bet on.

Fantasy football (indeed fantasy sports in general) is a wildly popular endeavour. So, it stands to reason that with the influx of interest in the new season of the NFL combined with a platform that offers up the stats and quant geeks of the football world a chance to flex their bulging bell curves, Interactive Brokers may find its pool of potential new clients after all.

Another big catalyst for online brokerages like Interactive Brokers is the market volatility itself.

When markets become uncertain, that’s typically when efficiency in pricing breaks down and when active traders step back into the mix to find compelling trades. So, despite volatility being generally bad news for many investors, for active traders, the volatility is a sign of opportunity.

Combined with lower interest rates, the ability to access margin means that firms like Interactive Brokers could stand to benefit from increased trading activity (and therefore commission revenue). That said, the last time the markets were signalling an increase in volatility, Interactive Brokers pre-emptively raised margin requirements to protect against the sudden swing in prices, a deft move that saved them from considerable margin loan losses while their peer firms unfortunately did not fare as well.

As September nears, we’ll be keeping a close eye on what Interactive Brokers (and other online brokers) will be doing with margin requirements as that may once again prove a definitive canary-in-the-coal-mine.

Stimulus in the Deals & Promotions Section

With the “R” word now making the rounds in major news and business media (as well as the content of several large online brokerages), sentiment among DIY investors towards entering into the markets is undoubtedly going to turn negative.

As it just so happens, September is historically when investing activity picks up again and for many financial services firms (especially online brokerages), this represents the second-last month of the fiscal year. Translation: it’s a great time to boost performance stats for the fiscal year by landing more client accounts.

Financial performance aside, savvy online brokerages understand that in today’s fiercely competitive market for DIY investor assets, it will be important to stand out, especially during the market storm.

One quick way to incentivize investors to pay attention is with a good deal. The seasoned investors will undoubtedly be out looking for compelling deals in the stock market and will also recognize a good offer from an online brokerage if one were to surface. Ironically, central banks won’t be the only ones contemplating how to boost market performance with rate cuts.

Pricing discounts are just one option, however. In the current market climate, one way to soothe the angst of investor uncertainty is with access to good information and market coverage. So, while cash back promotions or commission-free trades are always fan favourites, the ability to stay informed about what’s happening in markets in either real-time or with in-depth coverage would also be value added.

This past week, RBC Direct Investing tackled the thorny subject of trade protectionism in its “Inspired Investor” publication, and TD’s MoneyTalk tried to unpack the possibility of a recession in its most recent episode. Most Canadian online brokerages, however, have been mum on the subject. For those online brokerages who have invested in strong content production programs, now is the time when those investments pay off not only as news sources for their own clients, but also as a mechanism to stand apart from other brokerages (or other content providers) who can’t offer the same degree of insight into market direction.

More Price Disruption Coming

Of course while incentives and promotions are one quick way to get on investors’ radar, the so-called “nuclear option” of getting noticed is to drop commission fees down to zero.

So far, Wealthsimple Trade is the only Canadian online brokerage to offer zero commissions on all trades, with other providers such as Questrade, Virtual Brokers, and National Bank Direct Brokerage offering some kind of commission-free trading on ETFs.

One interesting dark horse that could still shake things up for online brokerages in Canada is Canaccord, whose 2018 acquisition of Jitneytrade could enable them to pursue a maneuver akin to Wealthsimple’s acquisition of the brokerage Canadian ShareOwner Investments Inc., which then enabled Wealthsimple Trade to offer online brokerage services to DIY investors.

In addition to price, there’s also going to have to be a step change in how incumbent Canadian online brokerages connect with clients (and potential clients).

What Wealthsimple’s latest advertising stunt of the tiny stadium in downtown Toronto shows, is that they’re also capable of pushing the envelope for innovation in messaging for wealth management services providers. At the heart of it though is the “perceived value” of what a commission charge gets you. Many large Canadian online brokerages have publicly been called out for struggles with technology stability or scalable customer service access, so the notion that “bigger is better” doesn’t necessarily match consumers comments and reviews online.

The takeaway is that as competition continues to grow for investor assets, so does the likelihood that there will be another major commission pricing announcement from an existing provider. For new entrants into the online brokerage space, unless there’s a quantum leap in trading platform experience, going to zero-commission or using ultra-low commission pricing is likely the path forward.

Regardless of the stock market’s immediate direction and sentiment, Canada’s online brokerages have had to navigate choppy waters before. What is different this time, however, is that there is a strong likelihood that there is a recession on the horizon and considerably more competition to boot. Heading into busier times in the weeks ahead, the advice for Canadian online brokerages is simple: prepare accordingly.

Discount Brokerage Tweets of the Week

From the Forums

Pure and (Wealth)simple

An inexperienced investor collected opinions about Wealthsimple and found out what fellow Redditors like, what types of investments they recommend through this brokerage, and how they use their Wealthsimple accounts. Read the discussion here.

Asset Tripping

Freshly motivated to maximize his returns and concerned about missed opportunities, a Redditor who passively accumulated savings into a TFSA is looking for advice on a more assertive investment strategy.

Into the Close

Savvy investors know that there’s always a bull market somewhere. With headlines the world over fixated on the trade war and uncertainty, sentiment is clearly shifting negative, but with gold perking up and a range of vehicles available to capitalize on volatility, it seems that aside from capital to wade into this storm, it’s going to take the gumption to keep going.

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Discount Brokerage Deals & Promotions, August 2019

*Updated Aug. 28* As we round the corner into August, most DIY investors are patiently waiting for new discount brokerage promotions to drop. Unfortunately, it seems like most Canadian online brokerages are in summer vacation mode when it comes to offering new deals.

Even so, the summer so far hasn’t been totally silent. HSBC InvestDirect launched a new promotional offer in July and CIBC Investor’s Edge also extended one of their deals until the early portion of August. Perhaps the biggest extension though came from Questrade, which extended their transfer-fee offer yet again, this time pushing the deadline out to the end of September.

With the long weekend almost here, it seems likely that any new offers that want to get a jump on the September rush will be waiting until later this month. We’ve got our radar up and of course, if there are any offers that could benefit other deal hunters, let us know.

Expired Deals

No expired deals to report at this time.

Extended Deals

CIBC Investor’s Edge extended their commission-free trade promotion for just a few more days, extending the offer from July 31st to August 9th.

Questrade’s transfer fee promotion has found yet another life and is now extended until the end of September. See table below for more details.

New Deals

*Update August 28 – Scotia iTrade has a new hybrid offer for prospective account holders. Complete a brief form by October 15, 2019 to be eligible for $6.99 equity and ETF trades until March 1, 2020. You will also receive $50 cash back by January 31, 2020. Scroll down for more details.*

*Update August 28 – If you have an existing Scotia iTrade account, you may be eligible for free trades. Fill out this form by October 15, 2019 to receive 5 commission free trades. You account must be funded with a minimum of $10,000 by October 31, 2019 to qualify for this offer. You are also eligible for 3 free trades when you attend the Scotia iTrade “US Dollar Position” webinar on September 24, 2019.

*Update August 2 – Just when we thought things were going to be a tad quiet heading into a long weekend in August, RBC Direct Investing decided to roll out a tried and tested favourite offer for investors to consider while on vacation. As of the beginning of August, RBC Direct Investing has launched a commission-free trading offer which gives investors 25 commission-free trades which are good for up to one year. Best of all, there’s an easy offer code to remember to access the offer: SPARX. Scroll down for more details.*

Other than that, there were no new deals that launched at the outset of the month, midway through last month HSBC InvestDirect jumped back into the deals pool with a new commission-free trading offer. This promotion offers up 30 commission-free trades to new and existing clients who open an eligible account and doesn’t require a minimum deposit.


Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open a qualifying account at HSBC InvestDirect and you may be eligible to receive up to 30 commission-free North American equity or ETF trades. No minimum deposit is required for this offer and it is open to new and existing clients. Trades are eligible to be used for up to 60 days. See terms and conditions for full details. n/a 30 commission-free trades 60 days HSBC InvestDirect Summer Offer September 30, 2019
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2019
Scotia iTrade Open a new qualifying account and fund it with a minimum of $2500 by October 31, 2019 to be eligible to receive $50 cash back by January 31, 2020. This offer also includes $6.99 per trade commissions until March 1, 2020. Terms and conditions can be found in the offer URL. $2,500 $50 cash back and $6.99 per Canadian and US equity/ETF trade. Cash back will be deposited by January 31, 2020. $6.99 per trade commission pricing active until March 1, 2020. Cash Back Offer Details October 15, 2019
Open a new account and get 25 commission-free equity and ETF trades when you apply the code “SPARX”. $5,000 25 commission-free Equity & ETF trades 1 Year Commission-Free Trade Details August 30, 2019
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo none
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2019
BMO InvestorLine Open a new qualifying account or fund an existing qualifying account at BMO InvestorLine with new assets worth at least A) $250,000; B) $500,000 or C) $2M+ and you may be eligible to a cash back reward of up to A) $500; B) $1,000 or C) $2,500. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $250,000 B) $500,000 C) $2M+ A) $500 B) $1,000 C) $2,500 Cash back will be deposited the week of March 16, 2020. BMO InvestorLine Summer 2019 Campaign September 3, 2019

Expired Offers
Last Updated:August 28, 2019 11:49 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 2, 2020

Expired Offers
Last Updated: August 1, 2019 17:11 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 n/a Transfer Fee Promo September 30, 2019
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $200 $15,000 Transfer Fee Rebate Details none
Transfer $15,000 or more into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Disnat Desjardins Online Brokerage 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 Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo none
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account and you may be eligible to have transfer fees covered up to $200. Contact client service for more details. $200 Contact client service for more information Contact client service for more information (1-888-776-6886) none

Expired Offers
Last Updated: August 1, 2019 17:08 PT

Other Promotions

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

Expired Offers
Last Updated: August 1, 2019 17:09 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: August 1, 2019 17:10PT