Tag: Qtrade Direct Investing

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Discount Brokerage Weekly Roundup – November 4, 2016

Patience is a virtue. Or for some, it’s a way of life. Cubs fans can finally celebrate winning the world series, somewhat ironically on a week when market bears were also cheering their recent victories.  For Canadian discount brokers, more than a handful have decided that they’re done playing the waiting game and are going to be chasing the prize of getting new clients as we head into the final stretch of 2016.

In this week’s roundup, we start with a look at what’s happening in the deals and promotions space as we head into a new month and whether Canadian discount brokerages are starting to pick up signals from what investors are asking for in the market. Next we take a look at a few brokerages that we spotted rolling out some upgrades and changes. From there, we’ll take a look at the latest feedback from investors on Twitter (hint: US presidential candidates aren’t the only ones catching heat). Finally we close out with a few choice threads from the Canadian investor forums.

Market Clearing Price

Now that a new month is here, it’s time for a deals & promotions refresh. Heading into November there wasn’t a lot of turnover forecasted to take place with only three promotions set to expire at the end of October.

A pair of promotions from BMO InvestorLine as well as an offer for commission-free ETF buying at Qtrade Investor were on the chopping block however two of the three offers, both from BMO InvestorLine actually managed to get extensions into 2017.

The commission-free ETF buying offer from Qtrade Investor did expire at the end of October however as the sun was setting on that offer, Qtrade Investor announced that they are adding 40 more ETFs to their commission-free list, bringing the total number of commission-free ETFs that can be bought and sold with them to 100.

On a month over month basis, then, the deals and promotions section shrank by one compared to October, bringing the total number of active advertised offers to respectable 23.

Transfer offers edged ahead of the cash back/free trade offers as the most popular category of deal offered, and, Scotia iTrade pulled ahead of competitor firms as the discount brokerage offering the highest number of deals getting ahead of Desjardins Online Brokerage and Questrade. Interactive Brokers is still not on the list of Canadian discount brokerages pushing a sign up promotion however their ongoing growth and success at client acquisition suggests they’re doing well in this department all things considered.

Even though the start of November has been quiet, there still might be a few interesting promotions launched before the month and year are out.

Several brokerages have expressed interest in launching something noteworthy to DIY investors in November, and data from our own internal sources show that bargain hunters were out in droves this past October signaling DIY investors are actively looking for incentives and providers.

Early data from the survey we ran last month also indicated that not only does having an offer make a huge difference to the overwhelming majority of DIY investors shopping for a discount brokerage but there is a significant mismatch between the brokerages offering deals and the brokerages DIY investors are seeking deals from.

For certain Canadian online brokerages, the data paints an interesting picture in that offers alone, while clearly important, aren’t enough to get on DIY investors’ radars. There also has to be a significant degree of marketing and awareness building that precedes the moment where a DIY investor decides to kick the tires.

On the flip side, for DIY investors, lesser known brokerages are going to have to be able to compete much more aggressively and creatively to get attention.

This has already started to take place with Desjardins Online Brokerages’ latest offer of a flat 1% of deposit size being put towards commission credits. This offer positions them as one of the most competitive offers out there for this kind of promotion within the last four years and has already moved the needle on who’s paying attention to them.

Looking ahead to the next several weeks, it will be interesting to see just how many brokerages sit up and start to pay attention to what the marketplace seems to be asking for and who will be content sitting on the sidelines.

Qtrade Banks on Change

As we had reported in a previous roundup, Qtrade Investor quietly rolled out their removal of the ECN fees for standard trading commissions. This past week, Qtrade also rolled out a few more enhancements to their offering, adding 40 commission-free ETFs to the existing list of 60 and bringing the total number of commission-free ETFs to 100. Along with Qtrade Investor, Questrade, Virtual Brokers, National Bank Direct Brokerage and Scotia iTRADE each offer some kind of commission-free element to buying (or buying and selling) ETFs.

In addition to improvements in the number of ETFs available for commission-free trading, Qtrade Investor also announced upgrades to their mobile offering by adding an Android app as well as telegraphing an upcoming improvement to their dashboard – presumably making it easier and more intuitive for investors to get important information and navigate the site.

Qtrade wasn’t alone this week with launching upgrades and enhancements – National Bank Direct Brokerage also fine-tuned its homepage layout and CIBC Investor’s Edge also upgraded their investor newsletter with a much more modern look and feel.

Changing layouts and online technologies is not without its inherent risks, however.

One very interesting case study happening in real time is the roll out of WebBroker “improvements” and generally mixed reactions it has received from DIY investors. Given the large number of users and the popularity of TD Direct Investing, there were more than a few investors who became entrenched in the “old” layout and interface who were less than pleased at having to change. Add to that stability issues with the platform and an already impatient and vocal DIY investor crowd has not taken kindly to this transition (a quick review of Twitter comments and forum chatter makes this clear).

Clearly the paradox with online brokerages is balancing what existing clients have come to learn about a platform and product with what new clients (especially younger clients) are looking for in terms of user experience and design features.

For Qtrade Investor, it will be interesting to monitor the reactions to their latest changes to see whether they were able to keep things similar enough to have users feel comfortable with the change but also to upgrade the user experience in a way that makes Qtrade look and feel modern and forward thinking.

Whatever the outcome for Qtrade Investor, the move to update their look and feel is a sign of the times.

In such a competitive space, it is evident that Canadian online brokerages who can get the balance between fresh and familiar right are going to get significantly more points with investors and therefore not end up being complained about online.

Discount Brokerage Tweets of the Week

While Twitter users are trying to sift through the many tweets from US presidential candidates, they still managed to find some time to pipe up about what’s happening with Canadian discount brokerages.

From the Forums

Investor’s Edge keeping current

In this post from the reddit Personal Finance Canada thread, one user shared the latest update to the service agreement for clients, specifically with regards to multiple currencies. It’s an interesting move that seems to be setting the stage for trading in foreign currencies.

Broker vs Broker

It’s been a while, but that favourite comparison between Virtual Brokers and Questrade is back – but with a twist. This post from reddit’s Personal Finance Canada reveals that the choice between the two is no longer really about just these two, a signal that big banks have gained significant ground on the “value” front.

Into the Close

With the finish line in the world’s sights, there has been all kinds of wackiness in the markets heading into this weekend and undoubtedly heading into next week. If you can find a way to avoid the election speak, either a walk in the crisp fall weather or a Netflix binge watch or all the sports action might be in order. For traders, however, this would be a great weekend to double check your trade setups heading into what is likely going to be a wild week ahead. Have a great weekend!

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Discount Brokerage Deals & Promotions – November 1, 2016

*Updated Nov. 23* Nothin’ lasts forever, even cold November rain. It seems odd yet appropriate to reference a Guns & Roses song as we head into a new month of deals and promotions coverage of Canada’s discount brokerages. Like the band, however, deals & promotions are still rocking on even as we head into the last two months of 2016.

While it may feel a bit gloomy heading into a new month with no new offers to report, in reality there are still 23 26 active offers for DIY investors interested in opening an online trading account to take advantage of. Also, several sources from across the online brokerage space have hinted that a number of deals are in the pipeline, some of which may be launching this month. No need to sing the blues after all.

Another interesting piece of news on the discount brokerage deals front, which was reported in the weekly roundup from October 14th, reveals that there is a substantial mismatch between what online brokerages are and have been offering, and what it seems that DIY investors want.

Based on our survey from September, it is clear that DIY investors on the hunt for an incentive are much more inclined towards cash-back offers instead of commission-free trades. Other than those two types of offers, there really was little to no interest in other types of discount brokerage deals.

When compared against what is being pitched to investors, however, this might explain why so many DIY investors might be feeling ‘underwhelmed’ by the offers being pitched thus far.

The results from our most recent survey will also be published soon and they promise to have some very intriguing findings.  In the meantime, check out our latest quick survey below.

New Deals

*Update Nov. 11: Virtual Brokers has relaunched their cash-back referral offer with a slight upgrade. Their latest cash-back referral offering now has three deposit tiers starting at a minimum of $5,000 $1,000 and going up to $50,000+ and they’ve increased the maximum cash-back amount from $50 to $75. See table below for more details.

Qtrade Investor has also launched an upgrade to their transfer-fee rebate offer. The threshold to qualify for this offer has been reduced from $25,000 down to $10,000 making switching to Qtrade much more accessible. See table below for details.*

Nothing to report at the moment.

Extended Deals

Two offers from BMO InvestorLine that were scheduled to conclude at the end of October have been renewed and extended. BMO InvestorLine’s commission-free/cash-back offer has been extended into January whereas their refer-a-friend program has been extended well out into 2017, ending in June. See tables below for more information.

Expired deals

Qtrade Investor promotion in which DIY investors could purchase ETFs commission-free in October officially concluded at the end of the month. That said, it appears that Qtrade has also added 40 new commission-free ETFs into its lineup bringing the total number of commission free ETFs to 100.

Survey

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Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
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 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, 2016
Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 3 months of commission-free equity trading and a $150 USD/mo credit towards Edge Trader Pro for 3 months. Use promo code sent at sign up to qualify. Be sure to read full terms and conditions for details. $5,000 3 months commission-free equity trading + $150 USD/mo platform fee rebate. 3 months 3 months free trading / Sign up form for promo code available here none
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatFlex or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo December 31, 2016
Open and fund a new account with HSBC InvestDirect with at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1,000,000+ and you may be eligible to receive a cash bonus offer of A) $88; B) $188; C) $288; D) $388; E) $688 or F) $988. Be sure to read terms and conditions for full offer details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000- $499,999 E) $500,000 – $999,999 F) 1,000,000+ Cash back bonus A) $88 B) $188 C) $288 D) $388 E) $688 F) $988 Bonus will be credited to the qualified accounts by July 31, 2017 HSBC InvestDirect Cash Bonus Promo December 30, 2016
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,00 or D) $250,000+ and you may be eligible to receive A) 75; B) 150; C) 200 or D) 250 commission-free trades. Use promo code F16FT when signing up. Be sure to read terms and conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000+ Commission-free trades 90 days 250 free trade offer November 30, 2016
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,00 or D) $250,000; E) $500,000 or F) $1,000,000+ and you may be eligible to receive 50 commission free trades plus A) 5,000; B) 7,500; C) 20,000; D) 35,000; E) 50,000 or F) 100,000 SCENE points. Use promo code F16SC when signing up to qualify. Be sure to read terms & conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000- $499,999 E) $500,000 – $999,999 F) 1,000,000+ A) Commission-free trades + B) SCENE reward points 90 days (for trades) SCENE points will be awarded by June 30, 2017. Free trade + SCENE points offer November 30, 2016
BMO InvestorLine Open a new qualifying account with BMO InvestorLine, and fund it with at least $100,000 and you may be eligible to receive $200 cash back as well as 20 commission-free equity trades. Use promo code PROMO200 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer. $100,000 $200 cash back + 20 commission-free equity trades Cash back will be deposited the week of August 7, 2017. Fall 2016 Promotion Phase 2 January 3, 2017

Expired Offers
Last Updated: Nov. 1, 2016 13:30 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing Virtual Brokers client) refer a friend or family member to open a new account with at least $1,000 you may be eligible to receive $25 cash per referral. For 3 or more referrals Virtual Brokers will add a $50 bonus. Referred individuals depositing either A) $1,000 – $24,999; B) $25,000 – $49,999 or C) $50,000+ may be eligible to receive A) $25; B) $50 or C) $75 cash back. Be sure to read the full terms and conditions carefully for full details. A) $1,000 – $24,999 B) $25,000 – $49,999 C) $50,000+ Referrer: $25 per referral; $50 bonus for each 3 or more referrals. Referee: A) $25 B) $50 C) $75 Cash to be deposited to VB account by March 31, 2017. Cash Referral Program January 31, 2017
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $50,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period(subject to conditions). BMO InvestorLine Refer-a-Friend June 30, 2017

Expired Offers
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit 30 days none none
Last Updated: Nov. 23, 2016 08:30 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $10,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $10,000 Transfer Fee Rebate December 31, 2016
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo September 30, 2016
Scotia iTrade Transfer $25,000 or more to Scotia iTRADE when opening a new account and they will cover up to $150 in transfer fees. $150 $25,000 Eligible with both offers: Free trade + SCENE points offer and 250 free trade offer November 30, 2016
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $150 $50,000 Disnat $500 Commission Credit Promo September 30, 2016

Expired Offers
Last Updated: Nov. 16, 2016 12:30 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Credential Direct has partnered with Trend Micro to offer 50% off Trend Micro Titanium Internet Security. Use code “TrendCF” at checkout. n/a Trend Micro Special Offer Code none
Disnat Desjardins Online Brokerage, in conjunction with MoneyTalks, is offering 3 months of the “Inside Edge” investor information service to Desjardins Online Brokerage clients. Use promo code DESJ2016 during checkout to qualify. Be sure to read full terms and conditions for more information. n/a MoneyTalks Inside Edge Discount none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none
Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) or $5,000 (for the Commission Free Trading Account) and you may be eligible to receive a one-year subscription to access 5i Research. Use promo code 5iVB2016 when signing up. Be sure to read terms and conditions for full details. $1,000 (Classic Commission Account); $5,000 (Commission Free Trading Account) 5i Research Offer March 31, 2017

Expired Offers
Last Updated: Nov. 1, 13:30 PT
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Discount Brokerage Weekly Roundup – October 21st, 2016

Well it has certainly been a week to remember. Not so much for what happened in the markets but rather for what happened around them and what this weeks events may do to markets everywhere. While the presidential debate or the loss of championship run were big news, perhaps the biggest news is the major outage of some of the world’s biggest websites because of exploits in technology. Heading into the weekend, it is a stark reminder that with more of the world moving to online, technology is not without its risks.

This past week, technology is the theme for the lead story at one Canadian bank-owned online brokerage. Specifically, how one online brokerage is using video technology to try and pull ahead of its competitors in the digital landscape. From there we’ll take a quick look at the latest figures from US-based online brokerages as many of them reported their earnings this past week and also provided a snapshot of what’s happening behind the scenes at some of the world’s biggest online brokerages. Finally, we’ll check out what DIY investors were talking about in the tweets of the week and in the investor forums.

Scotia iTRADE Keeping it Reel

While it’s been somewhat quiet at several of Canada’s biggest bank-owned brokerages, Scotia iTRADE has definitely been busy working to capture the attention of DIY investors online. Specifically, over the last few weeks, we’ve noted a definite uptick in the amount and diversity of video content coming out of iTRADE’s various social media channels. During this time, they’ve launched a video-based advertising campaign, several new ‘explainer’ videos on investing (in French) on YouTube and recently held a livestream “fireside chat” with personal finance expert Evelyn Jacks.

There’s definitely lots to unpack but let’s start with video advertising. For any regular consumer scrolling through content on just about any social media channel, videos are everywhere. Knowing that video posts are almost certainly going to be more engaging than regular ol’ images, Scotia iTRADE’s latest batch of video ads have started to show up in social media feeds, such as Twitter, and people are noticing. Interestingly, there aren’t that many bank-owned online brokerages with their own Twitter handle and with the exception of Questrade, the non-bank-owned brokerages aren’t nearly as active on social media feeds as they need to be to gain a significant presence. So, for Scotia iTRADE, the fact that they’ve doubled down on Twitter by not only having an account of their own but also buying ads means they’re getting an interesting share of the spotlight with millennial users.

Another place that Scotia iTRADE appears to be moving into is the French speaking market. Case in point is the recent publishing of their market education videos on YouTube en Français. For many of the big Canadian bank-owned brokerages, building an audience within the Quebec DIY investor marketplace has been a challenge. Data from our educational event tracking showed that TD Direct Investing, for example, had a difficult time pulling in people to their in-person seminar topics in Quebec much more so than in other parts of the country. Now it appears that Scotia iTRADE is widening its net to try and provide investor education oriented content to French speaking audience. Again, this is an area in which other brokerages big and small just simply aren’t doing enough of. Add to the fact that this is being done online, and other brokerages are going have their work cut out for them to produce and deploy that kind of information. Interestingly, it is difficult to imagine either Desjardins Online Brokerage or National Bank Direct Brokerage, both of whom are fiercely competitive brands within the Quebec market, making room for Scotia iTRADE to come in and capture mindshare.

Finally, this past week, Scotia iTRADE held a ‘fireside chat’ with personal finance expert Eveyln Jacks on the topic of risk management. This interactive webinar enabled Scotia iTRADE to gather information from attendees (i.e. gather marketing leads) but also demonstrate that they are taking their seminar/webinar formats to the next level. While there are still kinks to be ironed out with the format, unlike several of their peers, Scotia iTRADE is definitely pushing forward faster and more broadly online. And, in a world where DIY investors have so many choices to consider, Scotia iTRADE is making it much harder for them to be overlooked.

Is This Thing On?

A lot of traders know the saying: the trend is your friend (until it ends). For online brokerage Interactive Brokers, there are a couple of trends that are emerging surrounding their online brokerage business, some of which are more friendly than others.

On the positive side, the latest results from Interactive Brokers shows that they continue to crush it with regards to account growth, specifically with attracting more new customers to the platform than having customers leave. It’s actually rather uncanny how long their account growth streak has continued.

On the negative side, when the founder and CEO of the company wonders out loud if the platform is broken because there was no trading activity in the market, there’s definitely something strange in the trading neighbourhood. The impact of a lapse in volatility in the marketplace had a significant negative outcome for market makers (which again continued to lose money) which just goes to show that even the pros have had a tough time trying to time and trade the market when their strategy doesn’t line up with market conditions.

For many brokerages, it will be just a few more weeks until the election is finally over and markets can once again reprice assets without having to hedge against the possibility that Trump may actually win. Until then, however, brokerages and their clients are clearly watching and waiting (except for the brave/impatient few who are already betting into the election).

Qtrade Investor Quietly Drops Fees

Late last week Qtrade Investor sent an announcement to clients stating that ECN charges, the annoying fees that chew into trading profits because of market orders, were being dropped…sort of.

Technically Qtrade Investor reserves the right to charge ECN fees however they have described the situation of when those fees would be incurred as when an individual’s trading pattern makes “repeated, high volume trades on the active side of the market.” In other words, for most low to moderately active investors, this is definitely welcomed news from Qtrade.

While the technical definitions/limits were not spelled out (e.g. how many trades within a specific time frame is too many), Qtrade Investor did go on to mention that in the event of “excessive” trading that generates ECN fees, a Qtrade client service representative will attempt to contact the client.

Undoubtedly, the recent introduction of youth-focused pricing, some commission-free ETF trading and now removal of ECN fees will bode well for Qtrade in Rob Carrick’s online brokerage rankings. With the landscape for DIY investing clients being so competitive, however, there’s a fairly decent chance this news gets broadcast much more loudly before and after those rankings.

Discount Brokerage Tweets of the Week

It was a relatively tame week across Twitter for Canadian discount brokerages. Nonetheless there are some interesting client service moments that highlight why Twitter is a must-have for DIY investing clients looking to get traction on customer service issues with certain online brokerages. Mentioned this week were BMO InvestorLine, Questrade, Scotia iTrade & TD Direct Investing.

From the Forums

How Smart is Your Folio?

Seems like there aren’t many places investors can go online these days without bumping into a BMO Smartfolio advertisement.  In this post from RedFlagDeals.com’s investing thread, one curious investor took the marketing to the market to find out what others had to say about BMO’s robo-investor service.

Snug as a Bug

This was an interesting post from a Questrade user also posted on RedFlagDeals.com that highlights the importance of actually keeping tabs on a portfolio. Yes, even technology can fail, however as the author of the post suggests, staying on top of the details helped prevent a potentially bad trade.

Into the Close

TGIF. It’s been a bumpy ride to land the work week. If you still aren’t sick of the debate coverage yet and you want a great chuckle courtesy of the fine folks on Twitter, enjoy the hashtag #trumpbookreport.

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Discount Brokerage Deals & Promotions – October 1, 2016

*Updated Oct. 7* For DIY investors, October is shaping up to be a great month for treats. After a quiet start to September it wasn’t too long before deals and promotions from Canadian discount brokerages started to pop up.

With names such as HSBC InvestDirect stepping into the deals pool mid-September and other more familiar players such as Scotia iTRADE and Virtual Brokers coming back onto the field, heading into October there are now 26 live offers for DIY investors to choose from, and several of them are quite compelling.

All in all, more offers came in than left and with more activity predicted on the horizon, it is a great time to be in the market for an online brokerage even if the markets themselves may be a bit wobbly.

As always, we will continue to monitor the deals and promotions but if there are offers that readers may benefit from knowing about, let us know.

Also thanks to everyone who completed our survey last month, we’ll be publishing the results later this month. We have a new quick survey this month so be sure to check it out below.

Expired Offers

Desjardins Online Brokerage commission credit is listed as expired heading into the beginning of October. It will be interesting to see if this offer, which has been running since April of 2015, will finally come to an end or if this offer continues to live on. Also technically expired is the Virtual Brokers transfer fee offer.

Extended Offers

There were no offers that were listed as extended as of the beginning of the month.

New Offers

*Updated Oct. 7 – Desjardins Online Brokerage launched a potentially game changing offer this week. They’re offering a 1% of assets transferred deal in which they are giving 1% of assets transferred (up to $1,000 in commission credits) for deposits of at least $10,000. Unlike many other offers which offer less on a percentage basis the higher the amount the client deposits, Desjardins’ latest offer is a fixed 1% commission-credit. See table below for more details.*

There were a number of offers that crossed our radar in late September however the first official promotion to launch in October is Qtrade Investor’s commission-free ETF buying program for October. As part of this promotion, new and existing clients are eligible to purchase ETFs commission-free all through the month of October. Selling an ETF still incurs a regular trading commission charge. This applies to both US and Canadian ETFs.

Although it technically launched in the last few days of September, Virtual Brokers’ latest offer is likely to pick up steam heading into October. Their latest deal is a relaunch of a previous promotion (which was only offered to existing clients) that offers new Virtual Brokers clients access to 5i Research’s investment/equity analysis for one year. For many DIY investors, getting access to good research and ideas about where with whom to invest is typically a challenge. Perhaps the biggest challenge, however, will be building the awareness and profile of 5i Research products so that DIY investors can gauge whether this deal is enough to drive opening an account with Virtual Brokers.

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Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
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 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, 2016
Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 3 months of commission-free equity trading and a $150 USD/mo credit towards Edge Trader Pro for 3 months. Use promo code sent at sign up to qualify. Be sure to read full terms and conditions for details. $5,000 3 months commission-free equity trading + $150 USD/mo platform fee rebate. 3 months 3 months free trading / Sign up form for promo code available here none
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatFlex or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo December 31, 2016
Open and fund a new account with HSBC InvestDirect with at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1,000,000+ and you may be eligible to receive a cash bonus offer of A) $88; B) $188; C) $288; D) $388; E) $688 or F) $988. Be sure to read terms and conditions for full offer details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000- $499,999 E) $500,000 – $999,999 F) 1,000,000+ Cash back bonus A) $88 B) $188 C) $288 D) $388 E) $688 F) $988 Bonus will be credited to the qualified accounts by July 31, 2017 HSBC InvestDirect Cash Bonus Promo December 30, 2016
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,00 or D) $250,000+ and you may be eligible to receive A) 75; B) 150; C) 200 or D) 250 commission-free trades. Use promo code F16FT when signing up. Be sure to read terms and conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000+ Commission-free trades 90 days 250 free trade offer November 30, 2016
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,00 or D) $250,000; E) $500,000 or F) $1,000,000+ and you may be eligible to receive 50 commission free trades plus A) 5,000; B) 7,500; C) 20,000; D) 35,000; E) 50,000 or F) 100,000 SCENE points. Use promo code F16SC when signing up to qualify. Be sure to read terms & conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000- $499,999 E) $500,000 – $999,999 F) 1,000,000+ A) Commission-free trades + B) SCENE reward points 90 days (for trades) SCENE points will be awarded by June 30, 2017. Free trade + SCENE points offer November 30, 2016
BMO InvestorLine Open a new qualifying account with BMO InvestorLine, and fund it with at least $100,000 and you may be eligible to receive $200 cash back as well as 20 commission free trades. Use promo code Fall200 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer. $100,000 $200 cash back + 20 commission-free equity trades Cash back will be deposited the week of June 5, 2017. Fall 2016 Promotion October 31, 2016

Expired Offers
Last Updated: Oct. 7, 2016 22:30 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing Virtual Brokers client) refer a friend or family member to open a new account with at least $5,000 you may be eligible to receive $25 cash per referral. For 3 or more referrals Virtual Brokers will add a $50 bonus. Referred individuals depositing either A) $5,000 – $50,000 or B) $50,000+ may be eligible to receive A) $25 or B) $50 cash back. Be sure to read the full terms and conditions carefully for full details. Be sure to read the terms and conditions to this offer carefully for full details. A) $5,000 – $50,000 B) $50,000+ Referrer: $25 per referral; $50 bonus for each 3 or more referrals. Referee: A) $25 B) $50 Cash to be deposited to VB account by August 15, 2016. Cash Referral Program May 31, 2016
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $50,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period(subject to conditions). BMO InvestorLine Refer-a-Friend October 31, 2016

Expired Offers
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit 30 days none none
Last Updated: Oct. 1, 2016 17:15 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $25,000 Transfer Fee Rebate none
Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo September 30, 2016
Scotia iTrade Transfer $25,000 or more to Scotia iTRADE when opening a new account and they will cover up to $150 in transfer fees. $150 $25,000 Eligible with both offers: Free trade + SCENE points offer and 250 free trade offer November 30, 2016
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $150 $50,000 Disnat $500 Commission Credit Promo September 30, 2016

Expired Offers
Last Updated: Oct. 1, 2016 17:15 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Credential Direct has partnered with Trend Micro to offer 50% off Trend Micro Titanium Internet Security. Use code “TrendCF” at checkout. n/a Trend Micro Special Offer Code none
Disnat Desjardins Online Brokerage, in conjunction with MoneyTalks, is offering 3 months of the “Inside Edge” investor information service to Desjardins Online Brokerage clients. Use promo code DESJ2016 during checkout to qualify. Be sure to read full terms and conditions for more information. n/a MoneyTalks Inside Edge Discount none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none
Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) or $5,000 (for the Commission Free Trading Account) and you may be eligible to receive a one-year subscription to access 5i Research. Use promo code 5iVB2016 when signing up. Be sure to read terms and conditions for full details. $1,000 (Classic Commission Account); $5,000 (Commission Free Trading Account) 5i Research Offer March 31, 2017
For the month of October, Qtrade Investor is offering commission-free ETF purchasing on all Canadian and US ETFs. This offer is open to new and existing clients. Be sure to read terms and conditions for full details, including minimum purchase amounts. $1,000 (minimum purchase amount) Commission-free ETF Purchase Promotion October 31, 2016

Expired Offers
Last Updated: Oct. 1, 17:15 PT
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Discount Brokerage Weekly Roundup – September 30, 2016

There are busy weeks and then there are busy weeks. With all the news focused on the debate between Clinton and Trump, it’s kind of difficult to remember that the world doesn’t revolve around those two. Of course, those two are fighting it out to get attention (the good kind anyway) which is a fight all Canadian discount brokerages know about all-too-well.

In this week’s roundup there’s a lot on the menu. A major spike in promotional activity this week signals that Canadian brokerages are upping their efforts to get attention in just about any way they can. We’ll take a look at three major releases from the week. From there we take a look at one brokerage’s victory lap with online brokerage rankings but also dive into the bigger story that seems to be lurking in the DIY investing space. From there it’s a brief trip through some very interesting tweets and conversation threads from the Canadian investor forums.

Promotions, Promotions

Halloween is about a month away, but that’s not stopping Canadian online brokerages from offering up lots of deals & promotions candy to generate new interest and new business.

Virtual Deality

While it took a little while to iron out their offers, Virtual Brokers is back in the deals race. This past week Virtual Brokers launched a promo offering a free 1-year subscription to Peter Hodson’s 5i Research when opening a new account at VB. Although this promotion was previously run as a “clients only” promo, the updated offer is actually now being offered to only to new clients.

At a value of $150, this is an enticing offer especially since the minimum deposit to qualify for this is $1,000. It also may explain why Virtual Brokers appears to be trying to make a bigger splash with the promo by creating a commercial for it.

For Virtual Brokers, there is clearly a win-win-win to be able to offer equity research from 5i as part of their offering to new clients. Without an army of in-house analysts that bigger bank-owned brokerages have, providing access to research and analysis of stocks means going to the “usual suspects” of services such as Morningstar, something that many other brokerages can offer.  Adding a research product from 5i, however, enables Virtual Brokers to differentiate themselves courtesy of the ‘star power’ of Peter Hodson, a familiar face to BNN viewers.

With a focus on building value through equity research, it will be interesting to see how other brokerages, especially non-bank owned brokerages, respond. Good information is hard to come by but it is definitely what some DIY investors really seek out so we’ll be watching to see if additional research offers start to hit the marketplace quite soon.

Qtrade Launching Commission-free ETF buying

In another sign that competition between Canadian online brokerages is heating up, Qtrade Investor is about to launch a new commission-free ETF buying promotion starting October 1st and continuing for the rest of the month.

As one of only a handful of online brokerages that offers commission-free ETFs to DIY investors (Qtrade Investor offers 60 commission-free ETFs), this latest move enables both new and existing clients access to purchase any ETFs (Canadian or US) commission-free. Upon selling any ETF (excluding those that are completely commission-free to buy or sell), the regular commission rates apply.

This appears to be an interesting experiment on the part of Qtrade Investor and is not unlike the initial stages of how National Bank Direct Brokerage’s commission-free ETF promotion rolled out and eventually turned into National Bank Direct Brokerage offering completely commission-free ETF buying and selling of Canadian ETFs. Some noteworthy differences, however, include the fact that the minimum purchase amount is set much lower at $1,000 and that both US and Canadian ETFs are eligible.

Qtrade Investor’s latest move also provides them with an opportunity to gain ground on non-bank-owned brokerages such as Questrade and Virtual Brokers, both of whom offer commission-free buying of ETFs as standard. Whether or not the promotion comes returns after October, it seems the door to this kind of offer has been opened.

As we press forward into fall, there are more interesting announcements to come out of Qtrade Investor. More than likely, we’re not the only ones watching to see what they’ll get up to next.

RBC Direct Investing’s Talking Points

Shifting gears to the bank-owned brokerage arena, it looks like RBC Direct Investing is ramping up the marketing machinery around its latest promotional effort: trading using reward points. More precisely, paying for trading commissions using RBC’s reward points.

As we’ve mentioned in a couple of previous roundups, Canadian bank-owned brokerages have the scale and partnerships to offer up promotions that combine features offered in one area in the bank (such as reward points) with another (in this case trading).

This past week RBC officially put a spotlight on the program and also took the opportunity via press release to pitch readers on how they changed the pricing landscape by lowering commissions (in 2014) and on their ‘community’ program.

It will be interesting to see how the points-for-trades scheme works out and whether it sees a response from DIY investors. After some detective work to find a page which looks like it was intended to be the information page for the Trade with Points program, it lists the conversion ratio as approximately 1200 points for a 9.95 trading commission. That page also contains a number of important details about the Trade with Points program that anyone interested in the program should read. Some important limitations of the program, for example, apply to which platform can be used to pay for trade commissions via points. At this time only the investing site can be used; neither the mobile trading app nor the trading dashboard can be used. Trades placed through an investment representative also can’t have those commissions paid for with points.

What the Trade with Points option looks like. Source: RBC Direct Investing website screenshot

Even though DIY investors are hungry for innovation, they are much more receptive to price. While RBC Direct Investing may have gotten the ball rolling in 2014 by lowering standard commissions to $9.95, the fact that almost everyone of RBC Direct Investing’s peers landed at $9.95 and have stayed there means that a lower number on commission pricing will get noticed.

Of course, the online brokerage market is an increasingly tough space to make money, and banks being what they are, probably don’t want to give up the top line revenue anyway. Alternatively, if lowering commission prices isn’t an option, then there has to be much more emphasis on the technology and an upgrade to the trading experience. That is something that almost all bank-owned brokerages face an uphill battle with.

As we reported in last week’s roundup, BMO InvestorLine is clearly pointing it’s cross-hairs to be a winner in the trading platform experience; TD Direct Investing is already well ahead with its ThinkorSwim platform but has had to deal with a number of issues with its flagship WebBroker. While trading with points might be convenient, for DIY investors, the points for being a bank-owned brokerage that is tech savvy and innovative are still up for grabs.

Editor’s note: the section on RBC Direct Investing’s Trade with Points program has been updated since publication to provide additional details on the program as well as an image of the interface.

Owning the Podium

On the heels of a big victory by Team Canada at the World Hockey Championships, there was another story of national success that was only slightly less exciting. This past week, National Bank Direct Brokerage took home the top prize in the latest Canadian discount brokerage rankings by J.D. Power and Associates.

With a top score of 774 out of 1000, National Bank Direct Brokerage was able to handily beat out the rest of the pack in terms of overall investor satisfaction, making this the 2nd consecutive year in which NBDB has managed to take the title. Coming at first runner up was BMO InvestorLine who ranked second with 762 and CIBC Investor’s Edge and RBC Direct Investing both tied for third each scoring 751.

This year there appears to have been a number of changes, starting with the change in name of the study from the Canadian Direct Brokerage Investor Satisfaction Study to the “Canadian Self-Directed Investor Satisfaction Index Ranking” (try saying that three times fast).

There also appears to have been a methodology change which unfortunately means that results from 2016 cannot be compared to previous years.

The study itself was conducted across May and June of 2016 and polled 2800 self-directed investors on investor satisfaction, defined as a combination of: interaction, account information, trading charges, product offerings, information resources and problem resolution.

Numerical scoring aside, it was interesting to see that it was a very close race at the bottom end of the pack with 7th and 10th place only being separated by 3 points.

Starting at the bottom of the pack was a surprising appearance by Qtrade Investor (734) who fell three positions and has otherwise scored well on other rankings, especially from the Globe and Mail. Perhaps the biggest position move year over year was CIBC Investor’s Edge who went from 7th in 2015 to 3rd this year. In the opposite direction, it was interesting to see the drop of TD Direct Investing from 3rd last year to 6th.

One of the biggest things that stood out from this year’s results wasn’t so much the online brokerages but rather the discussion about robo-advisors.

It seems quite interesting that in a survey about DIY investing that the biggest talking points would not be about the direct brokerages themselves but rather about a possibly competing product – the robo-advisor. Clearly there is an industry interest in finding out what “millennial” investors’ preferences are and what role robo-advisors are playing with DIY investors’ purchase behaviour for financial services.

The flurry of interest, most recently from DALBAR Canada, have shone a spotlight on the emerging robo-advisor industry to show that there is still lots of room to grow and many lessons to be learned by fintech firms. Nevertheless, the observation that the JD Power survey has now evolved to include and discuss robo-advisors means that online brokerages – and especially those without a robo-advisory relationship – are going to have a tougher time standing out (in a good way) from other brokerages who do.

Discount Brokerage Tweets of the Week

What an interesting week on Twitter. Lots of chatter on new features, features that aren’t working and an interactive tweet session. Mentioned this week were BMO InvestorLine, Questrade, RBC Direct Investing, Scotia iTRADE and TD Direct Investing.

From the Forums

Factor in a Name

What started out as a reference to an ETF deal launching quickly spun into a fascinating discussion of security at Canadian online brokerages and also highlighted the perennial confusion that exists between Qtrade Investor and Questrade (they are separate companies that happen to start with the letter Q). Check out this post on reddit if you’re a fan of security and online trading.

Into the Close

If you made it this far, congratulations! At least it’s great to enter the weekend on a high note with Team Canada winning gold and TV talking about something other than Hillary and the Donald. Enjoy it while it lasts. Have a great weekend!

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Discount Brokerage Weekly Roundup – September 23, 2016

Now that fall is here, the weather may be cooling down but the competition at Canadian discount brokerages is definitely heating up. Rather than sitting back Canadian online brokers are firing on all cylinders, from deals and marketing to technological revolutions.

This edition of the roundup launches with a look at yet another new deal from an online brokerage that might shake things up for offers yet to come to market. Next we take a look at what one big bank-owned brokerage is doing to drum up interest in their online offering. From there we take a look at one brokerage’s strategy to bring the DIY investor experience of the future into reality. Lastly we wrap up with a look at the latest chatter on Twitter and around the Canadian investing forums.

HSBC InvestDirect Antes Up

September keeps on getting more lucrative for DIY investors looking to open an online trading account. Already this month, there has been an uptick in deals and promotions being offered from Canadian online brokerages and this past week yet another brokerage jumped onto the promotion bandwagon.  HSBC InvestDirect has once again stepped off the sidelines and launched a cash back promotion ranging from $88 to $988 depending on the amount individuals deposit.

The latest promotion by HSBC InvestDirect now brings the number of active advertised offers up to 24 but more importantly, it puts a very competitive cash-back offer on the table for investors to consider.

Source: HSBC InvestDirect website screenshot

Recently, there have been a number of offers being put forward by Canadian discount brokerages however they have tended to be commission-free trade promotions or contest-type offers. The field for cash-back offers was certainly thin (compared to points last year) so the $88 for a $25,000 deposit is the highest cash-back offer at this deposit level. In fact, the HSBC InvestDirect offer even surpasses the cash back amount being put forward by BMO InvestorLine at the $100,000 mark and, from a total value perspective, eclipses BMO InvestorLine for deposits of $500,000 or more.

It should be noted that BMO InvestorLine’s offer is a combination of $200 cash back and 20 commission-free trades, so the total face value of the commission free trades (approximately $200) makes this offer a very competitive one all around.

Another interesting observation about HSBC Invest Direct’s latest promotion is that it runs through to the end of 2016. This duration is somewhat longer than competitor firms that have put offers into the market until the end of October or November.

Thus, not only has HSBC InvestDirect raised the stakes for other brokerages looking to incentivize new clients into considering them, they’ve also doubled down by making this offer available through the beginning of winter. This is good news for DIY investors because any subsequent offers from other brokerages are going to have to be more appealing than the current cold, hard cash being offered by the latest HSBC InvestDirect promo. With only a week to go before the end of September, there is still time for other brokerages to launch even more at investors so we’ll be watching the space closely to see what happens next.

Cut to Commercial

It takes money to make money, or so the saying goes. It’s therefore interesting (and a tad ironic) to see the latest move from bank-owned brokerage Scotia iTRADE as they start to ramp up their marketing and advertising efforts to put their brand back on the map with DIY investors.

This past week, in addition to their Twitter feed starting to feature big, bold, and very red picture cards, Scotia iTRADE also launched a series of video commercials on their YouTube channel. Ranging from quirky commercials to the quick ‘infomercial’ primers on the market, it looks like Scotia iTRADE has been busy building a video presence after quite a long absence in that space. We’ve bundled them into the playlist below.

What is interesting is that there has been a recent push back into video commercials, with BMO’s robo-advisor service (SmartFolio) and now with video coming back at Scotia iTRADE. Why this is relevant is because these are not inexpensive marketing choices to make, so it appears Scotia iTRADE is banking on the ads moving the needle on consumer awareness and buy in of their brand.

The ads themselves are amusing and well put together so there’s likely to be a positive reaction. Nonetheless, the bigger picture is that Scotia iTRADE appears to be spending more resources (read: money) in order bring Scotia iTRADE back into the ring to be considered. With the addition of new deals/promotions and now the latest spend in advertising, the onboarding engine is getting itself in gear.

Canadian discount brokerages are all trying to figure out where to place their marketing dollars to get the best ROI. For Scotia iTRADE, they’ve continued to resist lowering their standard commission fees, choosing instead to try other tactics. As a result, while other brokerages have lowered standard commissions, Scotia iTRADE continues to have the highest standard commission fees for smaller (<50K in assets) investors.

Whether or not these ads fly or flop, it’s a sign that given the choice to go big or go home, Scotia iTRADE is definitely betting that being big and bold will keep them in the discount brokerage race.

BMO InvestorLine Looking for an Edge

When putting together the weekly roundups, there are all kinds of interesting things that pop across our radar. In the case of the Canadian online brokerage industry (and the financial service space generally), one thing is abundantly clear: technology is the big battleground.

BMO InvestorLine recently posted (yet another) job posting that caught our attention, this time for a senior technical specialist. That they were hiring more IT wasn’t so exciting, however their vision for InvestorLine (and adviceDirect) to develop “bleeding-edge technology and the next generation of Online Self Direct Investment and adviceDirect platforms.”

Screenshot from https://bmo.taleo.net/careersection/2/jobdetail.ftl?lang=en_GB&job=957988&src=JB-10207

Fortunately, if there’s one group that can spend the resources needed to take on the wave of fintech firms and massive IT budgets of their competitors, it’s bank-owned brokerages. Of course, this past year (and week) has shown DIY investors that bigger brokerages aren’t necessarily without bugs when trying to roll out new trading platforms or features.

Historically, banks have been conservative and reluctant to roll out platforms or technology that is too new because of the risks associated with them. Clearly, the risk of being left behind technologically or the risk of losing market share has spurred BMO InvestorLine (and its peers) to innovate much more quickly. It should be exciting to see where the “bleeding-edge” takes online trading next.

Discount Brokerage Tweets of the Week

It looks like a rough start to fall 2016 for brokerages this week on Twitter – Scotia iTRADE in particular as their website crawled to a halt. Bitten by the tech bugs this week were BMO InvestorLine, Questrade, RBC Direct Investing and Scotia iTRADE.

From the Forums

Yay or Nay to Interactive Brokers

An interesting thread on reddit’s Personal Finance Canada section caught our attention this week from a Qtrade Investor client looking to jump ship to Interactive Brokers. It would be a move to a very different experience online so it was interesting to read what insight Interactive Brokers users had to offer.

 

Into the Close

That’s a wrap for another edition of the roundup. If you’re lucky enough to get good weather this weekend, hope you can make the most of it. For the rest of us, guess we’ll just have to watch hockey, football and get a bit of a break from the crazy debate week next week. Of course, for those that want a bit of that crazy ahead of time, here’s the hamdog. Seriously.

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Discount Brokerage Weekly Roundup – September 16, 2016

For Isaac Newton a falling apple sparked inspiration about gravity. For traders and investors this week, Apple defied gravity and seemed to spark a rally in a falling market. The lesson seems to be clear: don’t fight the obvious. Markets for DIY investing are clearly giving signals to Canadian discount brokerages and this week it was interesting to see which brokerages are making moves to be on the right side of the next big thing.

In this edition of the roundup, we review the deals that drew one bank-owned brokerage off the sidelines and into the promo mix once more. Next we analyze some interesting research done on the Canadian robo-advisor marketplace and what that means for discount brokerages and robo-advisors alike. Following that we’ll take a quick scan of other news from Canadian discount brokers and then move onto the chatter on social media and investor forums.

Putting up Points

This past week, Scotia iTRADE got back on the discount brokerage deals & promotions wagon by launching a pair of offers at DIY investors.

Always looking for creative (read: cost effective) ways to bring new clientele on board, the offers put forward are “free trades” or a combination of free trades and SCENE points, the reward program that offers collectors free movies. Rather than doling out cash or gadgets, this strategy can help keep iTRADE’s cost of bringing on a new client to a minimum.

Scotia iTRADE is not alone in their use of points programs as an incentive to attract clients. RBC Direct Investing has recently started to ramp up its marketing of being able to use points towards trading commissions and CIBC Investor’s Edge also has a points for trading commissions offer.

For iTRADE in particular, however, the appetite for DIY investors to be drawn in by the prospect of free trades, free movies or discounts at Swiss Chalet (one of several CARA owned restaurant chains which SCENE points can be used at) might be limited. Nonetheless if Scotia iTRADE is high on a DIY investor’s list of possible choices, some free trades with a side of fries is a bonus.

Scotia iTrade’s second new promo is a classic commission-free trade offer. The range of free trades being offered starts at 75 trades for a deposit between $25,000 and $49,999 and goes up to 250 commission-free trades for deposits of $250,000 or more. Commission-free trades are good for up to 90 days.

In both the deals, it is interesting to see that Scotia iTRADE is inviting users to get an offer code even though the offer code is actually in the terms and conditions (which investors should be reading!). This is something that other brokerages, such as Questrade and Virtual Brokers, have also done in order to capture prospective client information when pitching a deal.

As we have observed already this month, September is shaping up to be a busier month across many discount brokerages. These latest offers from Scotia iTRADE last well into the latter part of the fall, so it will be interesting to see how other discount brokerages step up and challenge a crowded deals pool.

 

Reviewing Robo-Advisors

Earlier this week, financial services research firm DALBAR Canada officially released their report on how robo-advisor firms handle bringing on new clients.

Their robo-advisor research report takes a comprehensive look at the already crowded robo-advisor industry in Canada. Data from the report was gathered from a series of mystery shops in which clients were asked to document the process of opening an account. The details of this interaction were thoroughly analysed and an interesting portrait of the Canadian robo-advisor space emerged.

A series of articles have already been published about the report including one by Jonathan Chevreau of FindependenceHub.com and the other by Rudy Luukko for Morningstar Canada signalling that there is a great deal of curiousity about whether or not robo-advisor firms are measuring up to the hype that surrounds the robo-advisor model.

Chevreau’s piece is particularly interesting because it contains reactions to the report from senior executives at robo-advisors profiled in the report whereas Luukko’s article looks at some of the key findings of the report in detail, concluding that Canadian robo-advisors still have some ways to go in the service department before they live up to the hype.

Several Canadian online brokerages have already started to actively pursue robo-advisor or robo-advisor-like services. Labelled as “digital advice” by industry members, players such as BMO SmartFolio, Questrade’s Portfolio IQ, and National Bank Direct Brokerage’s InvestCube are already in this space with more surely to follow.

What’s clear from the DALBAR robo-advisor report is that there is still quite a bit that the “fintech” firms have to get right. Having a ‘robot’ manage your money is supposed to make things less emotional – which DALBAR’s Quantitative Analysis of Investor Behavior would endorse. That said, the relationship people have with their money, and more importantly with who is handling it, are what will ultimately define the success of the digital advice movement.

(Full disclosure: Sparx Publishing Group, the parent of SparxTrading.com was significantly involved in the production of the report and DALBAR Canada is a client of Sparx Publishing Group)

Highlights from across Social Media

This weekend the MoneyShow rolls into Toronto. Featuring a who’s who lineup of speakers on personal finance, the show is sure to attract the attention of investors, many of whom are inundated with stories of Canadian real estate, falling oil prices and the upcoming US election.

Among the exhibitors at this year’s show are a number of Canadian discount brokerages. Here are some snapshots of the National Bank Direct Brokerage team and Virtual Brokers’ outreach team at the show.

 

Aaaand we couldn’t let this one sneak by – every seasoned trader has done the wrong ticker (aka fat finger) trade before – apparently it happens to social media folks too!

We also learned from Twitter this week that Virtual Brokers was hanging out at the University of Toronto downtown campus, likely to pitch their Kick-start investment program to students who are now thinking about their lives as adults.

Finally, the team at Questrade shared an article interesting article written about them in Canadian Business Week which chronicles some of the backstory to the company and how far they’ve managed to evolve since their launch in 1999.

Discount Brokerage Tweets of the Week

Lots on the menu for this week. Brokerages mentioned were BMO InvestorLine, CIBC Investor’s Edge, Questrade, Scotia iTRADE, TD Direct Investing & Virtual Brokers

From the Forums

Qtrade getting noticed

Despite the positive coverage received in the Globe and Mail, it’s not often that forum chatter turns to Qtrade Investor. That might be changing, however, thanks to their young investor pricing change and the fact that many of the folks who frequent the forums are themselves younger investors. In this post from Canadian Money Forum there are a handful of interesting reports about what people think about Qtrade Investor.

Scotia iTRADE vs RBC Direct Investing

It’s not a common comparison, which is why this post (from reddit’s Personal Finance Canada subreddit) about choosing between two bank-owned brokerages caught our attention. An interesting mix of opinions worth a read for those considering either provider.

Into the Close

That’s a wrap on another wild week. Fall is just around the corner so enjoy the last few official days of the summer!

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Discount Brokerage Weekly Roundup – September 9, 2016

A famous football movie said sometimes life is a game of inches. As the busy season for investors and brokerages kicks off, it looks like there are lots of interesting changes, big and small, that are taking place in and around the brokerage industry, to win over new clients. From growing a client base to new leadership to new products or services, this week has a little bit of everything thrown in.

On the docket this week, we’ll take a look at a lot of little developments across the board. Starting first with stats from one independent discount brokerage that shows they’re making strides with investors. Next we highlight one online brokerage that’s looking for a new vision and some leadership and what that reveals about their plans for the future. After that, we’ve got a new trading app launched from one Canadian brokerage who’s doubling down on mobile trading. From there we’ll take a look at the latest pitch being made to millennial investors and whether it’s a hit or a miss. And finally we’ll recap what DIY investors were chatting about on social media and in the investor forums.

Interactive Brokers’ mixed metrics

The stat sheet from Interactive Brokers’ August trading figures paints an interesting picture of the landscape for online brokerages. On the one hand, it looks like trading volume has significantly diminished compared to last year at the same time. A drop off of 22% on a year over year basis as well as a 4% decline compared to July’s figures suggests the volatility picture is very different this year than last. On the other hand, metrics such as margin loan balances, credit balances and most notably client accounts all continue to show growth compared to last year and last month.

 BMO InvestorLine looking for new president

What does it take to be the president of a Canadian online brokerage? It is an interesting question that was prompted by the recent online posting for a new president at BMO InvestorLine.

Longtime observers of the Canadian online brokerage space will note that senior leadership in the online brokerage space tends to have quite a bit of turnover. Within the past several years, however, BMO InvestorLine in particular has seen a number of individuals take the helm and so it is interesting to be able to take a look at what they’re hoping to bring in.

Aside from the expected components of being a solid leader, there appears to be a trend towards becoming increasingly technologically proficient and to a degree, prescient. To be able to craft a strategy for 3 to 5 years into the future takes a certain comfort level with seeing the big picture for the self-directed investing industry but also being able to track where and how technology will evolve for consumers who also happen to be investors, which is no easy ask.

To that end, it is telling that a core component to the strategy of BMO InvestorLine is to try to become a “technology leader”.

Ironically, this exchange on Twitter (also shown below) that happened just a few days ago showcases the jumping off point the new President is working from. This certainly suggests that there are some hearts, minds and browsers that need some adjusting before “technology leader” springs to mind for many DIY investors when thinking of BMO InvestorLine.

screengrab from Twitter

Regardless of who lands in the driver’s seat next, we’re happy to extend an invite to the BMO InvestorLine team (some of whom are regular readers of the roundup) or the future president to drop us a line if you’re interested in achieving some of your strategic objectives.

Desjardins Online Brokerage launches a new app

On the technology theme, earlier this month Desjardins Online Brokerage released a new app for its Disnat Classic clients on both iOS and Android.

The new mobile trading app adds another way in which to access the Desjardins Online Brokerage or Disnat online trading experience since there is already a mobile site that enables DIY investors to perform the essential functions of trading online.

Some key features of the app include streamlined account summaries, clean charting and an easy to use interface for placing orders or checking their status.

In terms of response, the early ratings in the respective app stores appears to be positive. With a user interface that appears modern and in line with better practices, users have given the app close to a 4.5 out 5-star rating on Android and 3.5 star rating for iOS – the new mobile experience has managed to score high praise (albeit with a small number of reviews) compared to other online brokerage mobile apps.

Active traders who use the Disnat Direct platform, however, are out of luck for the moment. Nevertheless, it appears that evolving the online user experience, especially on mobile, is definitely now on the radar and task list of the team at Desjardins Online Brokerage.

TD Direct Investing selling the sizzle

In a news release yesterday, TD Direct Investing shared some interesting data on what millennials seem to think about DIY investing.

The data, derived from a survey of about 1750 “millennials” which took place between February and March of this year, suggested that a lack of money and know-how were the key barriers to getting started with investing. Also, given the insane volatility at the time, it shows that timing market surveys on the stock market is also a tricky gig – but we digress.

According to TD Direct Investing, there are 3 tips (labelled the “ABC”) which they are hoping might inspire some younger investors to look more closely at the DIY investing world:

  1. Act Now
  2. Brush up on the basics
  3. Choose your own adventure

 

The nudge towards considering DIY investing comes at an interesting time for the wealth management landscape.

An increasing number of ‘millennial’ investors are being courted by and turning to robo-advisors, the digital wealth management solution that can cut out the tasks of having to act, learn or choose. Showcasing the benefits of DIY investing over and above the robo-advisor route won’t be an easy sell.

Robo’s aren’t the only challenge for Canada’s largest online brokerage either. It looks like they’re increasingly being surrounded by programs or promotions aimed squarely at the same audience they’re hoping to reach.

Last week we reported on Qtrade Investor launching a young investor pricing program as well as highlighting several other initiatives from online brokerages that are directly targeting ‘younger’ (aka millennial) investors.

In TD Direct Investing’s case, this press release might be the signal that they’re preparing to respond more emphatically to the changes going on in the DIY investing space, which should be an interesting set of adventures for all.

Discount Brokerage Tweets of the Week

On a short week it may have been a week to be short. Either way clients chimed in about some of the issues on their minds. Mentioned this week were BMO InvestorLine, Questrade, Scotia iTRADE and TD Direct Investing.

From the Forums

Drinking the not-so-Kool Aid

Well this is a new one. This post on reddit from one supposed bank-owned brokerage employee provides an interesting window into a) airing grievances about a job to the world and b) what happens with your trading accounts when you start working in the industry. Fascinating stuff.

What to do with 5K?

Crowdsourcing financial advice seems like an interesting approach to money management however it’s clearly a sign of the times. On this post from the Personal Finance Canada subreddit, one keen would-be investor wanted to know what the best route forward would be to deploy the hard earned cash.

Into the Close

That’s a wrap for this week’s roundup. Coming off the long weekend last weekend, it’s nice to have this one show up a little sooner. For sports fans, it’s a great weekend with football back on the timetable north and south of the border, the Paralympics in Rio and hockey back in focus. Also it’s a welcome distraction from the nuttiness that was today’s trading day – and speaking of distractions, this post on Facebook should hopefully provide a welcomed dose of the chuckles. Have a great weekend!

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Discount Brokerage Weekly Roundup – September 2, 2016

September’s here and it’s all about the kids – well at least what some people consider to be kids anyway. After a summer spent huddled away figuring out what the ‘cool kids’ of investing may want, the Canadian discount brokerages have launched into September with some new features that are clearly aimed at winning the interest of millennials.

In this week’s roundup we start with a look at the latest deals and promotions activity from Canadian discount brokerages to see which deals dropped and which ones popped heading into the busy season for investors and brokerages alike. Next, we’ll take a look at the first in a series of exciting rollouts from one online brokerage that has upped the ante for firms interested in working with millennial investors. From there we’ll take a look at one bank-owned brokerage’s foray into commission-free ETF investing and what that means for DIY investors and other brokerages big and small. As usual, we’ll cap off the roundup with chatter from across Twitter and the Canadian investing forums.

Deals update

If this week is any indicator, the final stretch of 2016 will be an interesting one to watch, especially in terms of deals and promotions. To start September, the current landscape of promotional offers appears to be quite close to where things were in August, with 21 open offers available for DIY investors to choose from, slightly lower than the 23 there were last month.

At first blush it looks like Canadian discount brokerages are playing the busy fall stretch close to the vest. Case in point is the expiry date for a couple of key players’ offers.

BMO InvestorLine, for example, replaced their summer cash back offer with a much simpler cash back and commission-free trade “fall promotion.” Despite the length of the season, this offer is currently scheduled to expire on October 31st. As any good options trader knows, however, BMO InvestorLine has the right but not the obligation to let the offer expire, extend it or replace it with something different.

Another interesting expiry date was spotted on Desjardins Online Brokerage’s long standing $500 commission-credit offer. Previously this offer was set to expire at the end of August however it was extended yet again but this time only a month out until the end of September.

These maneuvers, however small, signal that the last stretch of 2016 still has some surprises. BMO InvestorLine, for example, will be rolling out new features so there may, in fact, be further related updates or incentives to coincide with that launch. Additionally, Desjardins Online Brokerage is now tied with Questrade in offering the most number of concurrent offers (there are four each in the categories we track). And, let’s not forget the fact that there are a dozen other brokerages that are constantly working to improve their position in the very competitive market for investors.

Another interesting observation coming into the new month is that Virtual Brokers has yet to roll out a new offer. If the past several months is an indicator, that won’t be the case for too long. Other noteworthy absences from the ‘commission-free’ or ‘free-trade’ categories this month include Scotia iTRADE.

There are also two other very exciting developments in the deals/promos section.

First, for investors, we’ve started to collect data on what kinds of deals are the most important to DIY investors. To fill out the survey click here – we’ll be publishing the results of this after the end of the month to see what incentive offers SparxTrading.com users are looking for.

The second exciting development is that we will be rolling out a more formal industry snapshot report (paid), aimed towards professionals who want to track what’s going on in the Canadian discount brokerage space.  Anyone interested in receiving the report can click here to let us know. We’ll notify you when we plan on going live.

Just two days into September, its already shaping up to be a month in which there are going to be many changes as well as the potential for deals activity to tick up based on the new features being rolled out at many of Canada’s discount brokerages.

Made for Millennials: Qtrade Launches Younger Investor Pricing

Big news coming out of Qtrade Investor this week as they rolled out a new pricing plan aimed at younger investors. Specifically, Qtrade is offering DIY investors aged 18 to 30 a break on commission pricing, no account minimums, and no quarterly administrative fees.

Screenshot from Qtrade Investor homepage

The move positions Qtrade well heading into the online brokerage rankings from the Globe and Mail this fall. Already a long-time favourite of Rob Carrick, the fact that Qtrade’s new pricing plan caters to the ‘millennial’ investor, a segment that gets particular focus in the Globe and Mail discount brokerage rankings, is sure to score points.

In terms of specifics, this new plan lowers the standard commission price for qualifying individuals to $7.75 per trade instead of the standard $8.75, (ECN fees are still charged with this plan). At Qtrade Investor this is a significant savings as the only other ways to get a lower commission price are to have at least $500,000 in assets with Qtrade or to trade at least 150 times per quarter. The biggest score with younger investors, however, will be absence of an account minimum balance and a waived account maintenance fee.

It is noteworthy to point out that while Qtrade Investor is not the only Canadian discount brokerage to waive fees based on age, they do offer the longest age range of their competitors, matching what Desjardins Online Brokerage (whose parent owns a significant portion in Qtrade) has done with their Broker@ge program for individuals aged 18 to 30.

Both Questrade and Virtual brokers offer to waive account maintenance fees for individuals however for Questrade the age limit is 25 and for Virtual Brokers it’s age 26. Interactive Brokers also offers a lower minimum account balance ($,3000 instead of $10,000) for individuals aged 25 and under. RBC Direct Investing also offers to waive its quarterly inactivity fee for individuals who have a student banking package (or who had one in the last 5 years), so while not by age, it is still geared towards younger investors.

As with all good things, there usually is a catch and in the case of the ‘young investor’ program at Qtrade Investor, one of the requirements to qualify is that individuals sign up for a $50 per month pre-authorized contribution. While it does mean having to continuously contribute, the contribution requirements are lower than pre-authorized deposit amounts that typically come in at $100 per month elsewhere (see RBC Direct Investing for example) so clearly the team at Qtrade Investor has done some homework to put together a compelling offer.

Catherine Wood, Senior Vice President at Qtrade Investor offered the following comment regarding the launch of the new pricing for young investors:

“It’s important for Qtrade Investor to be a top choice for a new generation of Canadian self-managed investors, and we are seeing a big surge in the number of younger clients opening accounts. Younger investors are astute when it comes to assessing and comparing competing services and they know it’s important to keep their costs down. By reducing our commissions and fees, we can help them kickstart their portfolios and build their assets more quickly.”

It will be interesting to see how Qtrade Investor, a firm that has a very solid reputation for delivering quality customer service experiences over the phone and email, navigates a world where expectations for live chat and twitter have taken hold.

That said, without a doubt, this move is going to attract all kinds of interest in Qtrade and how they handle working with younger investors will ultimately determine whether or not ‘the cool kids’ give this new program the fist-bump of approval.

National Bank Direct Brokerage goes Commission Free for Eh-TFs

After several test runs with offering commission-free ETF trading for Canadian ETFs, it looks like National Bank Direct Brokerage is ready to roll out this feature to all clients starting September 1st. And, with well over 550 Canadian ETFs to choose from, this handily positions National Bank Direct Brokerage as having the most commission-free ETFs (to both buy and sell) of any Canadian discount brokerage.

Within the Canadian online brokerage space, the term “commission-free” ETF warrants some clarification. They key for DIY investors is to distinguish between offers that allow commission-free buying and selling and those that are commission-free to buy but not to sell.

For example, firms such as Questrade and Virtual Brokers offer “commission-free” buying of all ETFs, US or Canadian, but charge trading commissions on the sale of the ETF. Alternatively, Qtrade, Scotia iTRADE and Virtual Brokers offer selections of ETFs that are commission-free to buy and to sell. Prior to this roll-out, Virtual Brokers held the highest number of ETFs that could be traded (bought and sold) commission-free at 100, however opening up all Canadian ETFs to be traded commission-free means that National Bank Direct Brokerage now offers the most competitive selection. By a lot.

Screenshot from National Bank Direct Brokerage Website

Like all offers this good, it’s important to ask about the fine print or if there are any important terms and conditions. In this case, there are a few important considerations to this offer. First, there is a minimum quantity of ETF units (100) that need to be purchased in a transaction in order for it to qualify for commission-free status. This is not an insignificant number of units for many beginner investors or modest portfolios. Next, the list of eligible ETFs is determined by those that are published by the Canadian ETF association (that list of ETFs had 568 funds on it as of July 31st and is accessible here). Other important caveats are that commission-free trades don’t count towards activity thresholds that qualify investors for discounts on commission pricing, platforms or administrative fees.

Strategically, this new feature will clearly appeal to the growing number of investors interested in ETFs as well as with a strategic segment that many DIY investor firms are looking at: millennials. Offering up commission-free Canadian ETFs also positions National Bank Direct Brokerage as a worthy competitor to other bank-owned brokerages.

In their news release announcing the launch of this program, President of National Bank Direct Brokerage Laurent Blanchard commented

“We’re changing the online brokerage landscape, no transaction fees for all ETFs listed in Canada. This will make online investing more accessible for a greater number of investors. At the same time, it ensures that National Bank Direct Brokerage remains at the forefront of innovation.”

The latest offering from National Bank Direct Brokerage is a great development for DIY investors.

At a minimum there is at least one bank-owned brokerage that is prepared to meet a growing need for access to ETFs at a low cost and this fact alone may entice another bank-owned brokerage to improve its ETF offering.

Another reason this is advantageous for DIY investors, and perhaps a challenge to competitor firms such as Questrade and Virtual Brokers, is that the value proposition has to improve at these independent firms without pushing the cost of operating an account up. Thus, services will have to get better or if they remain the same they have to be cheaper.

This is still early days in what’s shaping up to be a very busy end of summer/fall season, there may be some very interesting counter offers coming.

Discount Brokerage Tweets of the Week

This week’s hits and misses from Canadian discount brokerages highlight the fact that online brokerages need to be ready to answer all kinds of questions. Mentioned this week were CIBC Investor’s Edge, Questrade, Scotia iTRADE and TD Direct Investing.

From the Forums

Too good to be free?

In this post from Canadian money forum, National Bank Direct Brokerage’s commission free ETF announcement started to make waves. Of course, more than a few skeptics were wondering how it would be possible to let investors trade ETFs commission free. More than a couple of interesting theories there. Also in this post from reddit, there’s an interesting view on the 100 unit minimum purchase.

Into the Close

That’s a wrap on a busy week. Markets are closed on Monday for Labour Day so hope everyone has a wonderful and safe long weekend!

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Discount Brokerage Deals & Promotions – September 1, 2016

*Update: 9/23/16* At the outset of September, the discount brokerage deals & promotions activity appears to have contracted slightly but still remains reasonably healthy for any DIY investor searching for a deal.
With 21 offers in the mix, there are certainly deals to be had and certain brokerages, such as Desjardins Online Brokerage (Disnat) and Questrade, are extra hungry for business and are offering up multiple incentives. Based on the time of year and from discussions with brokerages over the summer, there are likely more offers coming across the fall however the exact timing and nature of those is not quite confirmed so deal watchers will want to continue monitoring.

Another exciting development is that we’re curious to know what you, our valued readers, find to be the best deal from a Canadian discount brokerage. Be sure to fill out the following survey to let us know.

We’ll continue to monitor the deals and promotions activity and report back here when we have an update. As always, if there’s an offer out there that we’ve missed, let us know and we’ll post it here.

Extended Deals

Of the handful of promos that were scheduled to expire at the end of August, the deal that made it through was Desjardins Online Brokerage’s long-standing commission credit offer. The new expiry date has been bumped to September 30th.

Expired Deals

The sun has gone down on three offers heading into September. The first is National Bank Direct Brokerage’s discounted margin promotion. Folks on the inside are going to be crunching some numbers to see if or when something like this might make a comeback. A second offer to expire is the Virtual Brokers 7th anniversary contest draw. This promotion required entrants to not only track down a special symbol on a page (think scavenger hunt) but also open an account with the code they retrieved by finding the special symbol. Points for creativity. Finally, BMO InvestorLine retired their summer cash back offer and kept the seasonal theme alive by replacing it with a ‘Fall’ themed one (more details on that below)

New Deals

*Update: 9/23/16 – HSBC InvestDirect has joined the deals & promotions section this month with a new and potentially disruptive cash back offer. Starting at $88 cash back for deposits of at least $25,000 and going up to $988 back for $1M+ deposits, this offer is sure to get attention from other discount brokerages as it is one of the highest cash-back only offers currently available. See table below for more details*

*Update: 9/16/16 – Scotia iTRADE has jumped back into the deals game in a big way this week by adding in two new offers. The first is a combination offer that consists of commission-free trades and SCENE points. These points can be redeemed either for free movies at Cineplex theaters or at partners that accept SCENE points such as Sport Chek or restaurants owned by CARA (such as Harveys and Swiss Chalet). The second offer to hit the deals wire is a basic commission-free trade offer. Depending on the amount deposited (minimum tier is at least $25,000) eligible clients can receive between 75 and 250 commission-free trades. See table below for more info.

BMO InvestorLine was the only Canadian discount brokerage to launch into the new month with a brand new promotion. On deck for DIY investors with $100,000 or more is an offer for $200 cash back and 20 commission free trades. This fall-season offer lasts until October 31st and features some very detailed (and well-explained) terms and conditions. More info below.

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Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
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 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, 2016
Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 3 months of commission-free equity trading and a $150 USD/mo credit towards Edge Trader Pro for 3 months. Use promo code sent at sign up to qualify. Be sure to read full terms and conditions for details. $5,000 3 months commission-free equity trading + $150 USD/mo platform fee rebate. 3 months 3 months free trading / Sign up form for promo code available here none
Open and fund a new account with HSBC InvestDirect with at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1,000,000+ and you may be eligible to receive a cash bonus offer of A) $88; B) $188; C) $288; D) $388; E) $688 or F) $988. Be sure to read terms and conditions for full offer details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000- $499,999 E) $500,000 – $999,999 F) 1,000,000+ Cash back bonus A) $88 B) $188 C) $288 D) $388 E) $688 F) $988 Bonus will be credited to the qualified accounts by July 31, 2017 HSBC InvestDirect Cash Bonus Promo December 30, 2016
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,00 or D) $250,000+ and you may be eligible to receive A) 75; B) 150; C) 200 or D) 250 commission-free trades. Use promo code F16FT when signing up. Be sure to read terms and conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000+ Commission-free trades 90 days 250 free trade offer November 30, 2016
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,00 or D) $250,000; E) $500,000 or F) $1,000,000+ and you may be eligible to receive 50 commission free trades plus A) 5,000; B) 7,500; C) 20,000; D) 35,000; E) 50,000 or F) 100,000 SCENE points. Use promo code F16SC when signing up to qualify. Be sure to read terms & conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000- $499,999 E) $500,000 – $999,999 F) 1,000,000+ A) Commission-free trades + B) SCENE reward points 90 days (for trades) SCENE points will be awarded by June 30, 2017. Free trade + SCENE points offer November 30, 2016
Disnat Disnat is offering new & existing clients up to $500 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $50,000 $500 commission credit 6 months Disnat $500 Commission Credit Promo September 30, 2016
BMO InvestorLine Open a new qualifying account with BMO InvestorLine, and fund it with at least $100,000 and you may be eligible to receive $200 cash back as well as 20 commission free trades. Use promo code Fall200 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer. $100,000 $200 cash back + 20 commission-free equity trades Cash back will be deposited the week of June 5, 2017. Fall 2016 Promotion October 31, 2016

Expired Offers
Last Updated: Sep 23 23:30 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing Virtual Brokers client) refer a friend or family member to open a new account with at least $5,000 you may be eligible to receive $25 cash per referral. For 3 or more referrals Virtual Brokers will add a $50 bonus. Referred individuals depositing either A) $5,000 – $50,000 or B) $50,000+ may be eligible to receive A) $25 or B) $50 cash back. Be sure to read the full terms and conditions carefully for full details. Be sure to read the terms and conditions to this offer carefully for full details. A) $5,000 – $50,000 B) $50,000+ Referrer: $25 per referral; $50 bonus for each 3 or more referrals. Referee: A) $25 B) $50 Cash to be deposited to VB account by August 15, 2016. Cash Referral Program May 31, 2016
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $50,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period(subject to conditions). BMO InvestorLine Refer-a-Friend October 31, 2016

Expired Offers
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit 30 days none none
Last Updated: Sept. 1, 2016 13:10PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details. $150 $25,000 Contact client service for more information (1-800-465-5463). none
Transfer $25,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $25,000 Transfer Fee Rebate none
Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo September 30, 2016
Scotia iTrade Transfer $25,000 or more to Scotia iTRADE when opening a new account and they will cover up to $150 in transfer fees. $150 $25,000 Eligible with both offers: Free trade + SCENE points offer and 250 free trade offer November 30, 2016
Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $150 $50,000 Disnat $500 Commission Credit Promo September 30, 2016

Expired Offers
Last Updated: Sept. 16, 2016 22:10 PT

Other Promotions

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

Expired Offers
Last Updated: Sept. 1, 13:30 PT