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Discount Brokerage Weekly Roundup – December 14, 2018

If there’s one place in Canada that should be prepared to handle the rain, it’s Vancouver. And yet, even on the We(s)t Coast, this past week has shown that sometimes, when it rains, it really does pour. As it turns out, if you’re an otter, however, Vancouver is shaping up to be a pretty sweet place to hang out. CFO’s of major Chinese telecom companies, however, not so much. Like this past week in Vancouver, there has been a torrential downpour of information across the online investing world and it looks like there’s even more coming.

So, even though we can’t boil the ocean, in this edition of the roundup we nonetheless wanted to provide a solid run down of what crossed our radar this week, sprinkle in some analysis and for the faithful readers of the roundup, provide an exclusive preview of the look back/look ahead piece. As usual, there’s also an interesting selection of DIY investor tweets and forum posts to round things out.

Virtual Brokers Drops Commission Prices

There’s no question that things are busy across the online brokerage space heading into the end of the year. In the midst of all that flurry, however, there was a very important change that took place at Virtual Brokers at the close of market on Thursday (December 13th) and the start of trading on Friday, rain wasn’t the only thing coming down, commission prices did also. Namely, the commission structure for Virtual Brokers has now changed to as low as $1.99 commission per trade (technically per ticket – more on that in a moment).

That’s right Virtual Brokers now offers one of the lowest (until Wealthsimple Trade goes fully live to the general public) trading commissions for equities and options trading. The new pricing structure is $0.01 per share with a minimum charge of $1.99 per ticket up to a maximum commission charge of $7.99 per ticket. For active traders, defined as those who made 150 or more trades in the past quarter, the price changes to $3.99 flat per ticket

While it does benefit passive or minimally active traders, this is a huge development for very active traders. To understand why, it’s important to know the difference between “trades” and “tickets.”

A ticket refers to a collection of trades on the same side (either buy or sell) on the same day for the same stock. An example can help clarify.

Let’s say trader of TSLA purchases 3 separate orders of 200 shares a piece of the stock at multiple points in the day. Those 3 trades amount to 600 shares. Assuming they were all routed through the same market, those 3 trades would be on the same ticket because they’re the same stock, same direction, same day. At $0.01 per share x 600 shares, that’s $6.00 in commission charges. If on that same day a trader wanted to then sell 100 shares, that would be 1 trade which would also be one ticket at the $0.01 per share – which works out to $1.00 however the minimum commission charge is $1.99 so the final commission charge would be $1.99.

Unlike almost all other online brokerages (with the exception of Jitneytrade for example), using tickets instead of trades means that clients have to do a bit more math to truly understand the commission costs.

That said, if there’s one thing active or day traders are not afraid of, it’s a little order tracking, especially for a flat fee of trading that could be as low as $3.99 for an unlimited number of shares. In fact, for ETF swing traders the math is even more compelling – purchases of ETFs are free at Virtual Brokers so long as they are held for a minimum of one business day, which means anyone who is on the standard plan would only pay a max of $7.99 for a round trip on an ETF trade (assuming all units were sold same day). For passive rebalancing – especially for smaller accounts, this is also a great score as selling 200 shares of an ETF costs $2.00 in commission charges.

Clearly, in the commission price pool, Virtual Brokers has just made a massive splash.

Unlike lesser known online brokerages, Virtual Brokers has the benefit of having been featured in the Globe and Mail’s online brokerage rankings, including having achieved top online brokerage or a high finish for several years in a row.

Although prior to this move Virtual Brokers’ popularity was waning, they are certain to get the attention of investors of all stripes – but especially the active ones – who will now likely take a serious look at an online trading account with a provider that has professional grade platforms and the pricing to match.

It will only be a matter of time until word spreads among investors and if/when Virtual Brokers decides to advertise this widely – other brokers will be racing to figure out how to catch up.

Back to the Future: A Preview of the Look Back on 2018 & Look Ahead to 2019

From outages & outrage in early 2018, online account opening landing at TD Direct Investing, new website roll outs at BMO InvestorLine, Questrade and National Bank Direct Brokerage, and so many interesting promotions and deals, there was a lot that took place at Canada’s discount brokerages this past year.

We could go on (and on) about these developments (which we will next week!) but for the moment, we’re excited to hand over the spotlight to Canada’s online brokerages themselves to see what they had to say about 2018 and what they’re doing next in 2019.

Readers of the roundup will get a first look at this amazing edition of the Look Back/Look Ahead. Why is it so amazing? Without being too biased, firstly it offers a unique window into hearing from Canadian online brokerages themselves, in many cases directly from the leaders of the organizations that Canadian DIY investors entrust their business to. It helps to know and understand the vision these organizations have for building online brokerages that are suited for today’s world as well as tomorrow’s.

Second, this is a chance to spot interesting trends in the year that past as well as in what is coming around the corner at many online brokers. With RRSP season about to ramp up, consumers will be very hungry for information that helps them better understand the decision to work with a particular online brokerage. While there are rankings or ratings, those are generally focused on past performance. The look ahead component this year offers a fascinating window into what 2019 is going bring for DIY investors in terms of new features, technology enhancements, pricing (potentially) and more.

Finally, this particular edition has exclusive information on how the landscape of online brokerages will have another competitor to contend with this year. That’s right, one of the biggest stories in this year’s series is the upcoming launch of a ‘dark horse’ competitor. It’s not Wealthsimple Trade – who’s commission-free trading is certainly going to make waves, but rather an existing online brokerage who has some very ambitious plans. Who is this mystery online brokerage? Tune into Sparx next week to find out!

To provide some more intrigue, here is the list of online brokerages who we received submissions from and who will be featured in this upcoming year in review & preview to next year piece:

Also new for readers this year will be a digital magazine format that provides another way to experience this informative and unique piece. Here’s a preview of the cover art:

This format is the first from SparxTrading and is also a reflection of our growing team and focus on delivering great DIY-investor information about Canadian online brokerages.

Since you’ve read this far here are some early teasers from three firms covered in the look back on 2018 & look ahead pieces for 2019:

  • CIBC Investor’s Edge: Invested in online education content, young investors and trading platforms in 2018; for next year (and beyond) enhanced trading & reporting features
  • Qtrade Investor: Listening to clients helped drive improvements in service & support, financial planning tools and access to premium market research; coming up, big technology enhancements including mobile improvements
  • National Bank Direct Brokerage: Enhancements to the website, promotional offers and special educational events provided improved user experience; coming in the new year are new trading features and improved online account opening experiences.

Stay tuned!

Lightning Roundup

Here are some interesting online brokerage stories that crossed our radar this week.

Robinhood Online Brokerage Launches Banking Feature

The US-based zero-commission online brokerage continues to make waves in the online investing and financial services space. This week they took a literal swipe at the banking industry by launching checking & savings accounts that pay 3% interest to users. That, according to CNBC, is more than 30x the national average. Check out this interesting interview that has an ironic moment talking about technical glitches.

CI Financial Acquires Wealthbar

After acquiring BBS Securities, parent of Virtual Brokers, CI Financial is again going shopping just ahead of the holidays with an acquisition of Vancouver-based robo-advisor Wealthbar. This acquisition provides an interesting spectrum of services for CI Financial as they will now be equipped to provide direct online investing as well as digital advisor services.

Scotia iTRADE Movie Deal

With more foot traffic passing through downtown Toronto’s underground PATH, it was an opportune time for Scotia iTRADE to launch a short promotion for 2000 SCENE points for a deposit of $5,000. We’ve spotted ice cream in the summer, popcorn in the fall and now hot drinks with winter around the corner.

Questrade Spreading Holiday Cheer

We’ll end the lightning round with a feel-good move by Questrade. Spotted on their Twitter feed this week was a message stating that Questrade will donate a meal to the Daily Bread Food Bank for every retweet the message gets until the end of December. In addition, Questrade has also committed to providing a day’s worth of meals for every account opened with them in 2019. This is a great example of corporate social responsibility in action and gives DIY investors who open an account with Questrade something extra to feel good about while they’re doing it.

 

Discount Brokerage Tweets of the Week

From the Forums

Questwealth Query

One user took to the Personal Finance Canada forum on reddit this week with a question on growth portfolios for their RRSP. With the user considering a switch to Questwealth, read what helpful advice was given on how to dissect some “complicated” portfolios.

Checking in on Wealthsimple

Robinhood’s recent announcement of checking and savings accounts with 3% earnings and no fees, led the discussion on to whether Wealthsimple Trade, the commission-free trading Canadian analogue, would also follow suit as their “next logical step”. Read more in this thread from Personal Finance Canada forum.

Into the Close

That’s another rocky week in the bag for the bulls. Ironically the Christmas colours of red and green are flashing red as major support levels are being challenged. Of course, it’s all a matter of perspective at this point as bargain hunters continue to get more and more excited for interesting entry points. Speaking of interesting entry points, if you’re out holiday shopping in the malls, may the parking gods be forever in your favour! Have a great weekend!

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Discount Brokerage Weekly Roundup – December 7, 2018

Only in the stock market does everybody get more when everybody gets less. The cuts in oil supply provided a much-needed relief to an otherwise dour stretch into the final month of the year. With most of the gains of 2018 now erased on major indices and selloffs despite good jobs news, the good news is, it could be worse.

Fortunately, there is actually good news for online investors to be had. In this edition of the roundup we review the latest crop of deals that will add some Christmas cheer for DIY investors hunting for a great deal on an online trading account. Of course heading into the end of a year, it’s also a timely opportunity to review a portfolio – which is what we do by taking stock of the year that passed and what’s coming around the corner (hint: it’s exciting!). As always, we capture the reactions and questions of online investors on the forums and on Twitter.

December Deals

It’s the holiday season, and, true to form, there are lots of presents and still a few surprises left for Canadian DIY investors. December kicked off with a healthy count of 25 discount brokerage deals and promotions ranging from cash back deals and commission-free trades to transfer offers.

The big stories in this month’s deals section include the return of Desjardins Online Brokerage’s commission credit offer (along with some festive imagery befitting the season); the promotional offer accompanying the launch of RBC InvestEase as well as the return of Scotia iTRADE to the deals section with a cash back or commission-free trade offer.

With participation by Canadian discount brokerages at a healthy level, DIY investors hunting for a bargain on an online trading account certainly have a lot to choose from.

Of course, December wouldn’t be complete without a few surprises. There are already whispers of two online brokerages keen on launching some interesting promotions. Whether they get here in time for Christmas is a bit of a jump ball at the moment, however it’s a safe assumption that those brokerages currently on the sidelines without a commission-free trade or cash back offer won’t be staying off the promotions field for too much longer.

As a segue into the next story, it’s important to remember that last year at this time, the world was going crazy about “investing” in cryptocurrency and marijuana stocks. It’s likely that the enthusiasm for trading these was amplified across the holiday season with friends and family gathering to talk about these “investments” – so there’s still a good chance that, in addition to talking turkey, there’ll also be talk of investing.

We’re also really excited to see what happens to the promotional landscape next year as Wealthsimple Trade starts to roll out live trading accounts. Competing against commission free trading will be a challenge for the incumbent online brokerages, however our bet is that many DIY investors would still be open to cash back offers and incentives which is something Wealthsimple Trade may find difficult to match (since they’re already taking a hit on commission fees). Making a few trades a year (even at a “nominal” cost) may not be worth as much as the cash incentive on the way in.

In light of that, one interesting scenario that could play out in 2019 is that strong cash back (or better commission credit offers) could majorly slow the roll of Wealthsimple Trade. At that point it will be a faceoff between low pricing and design technology (i.e. user experience) and a mature functionality in the form trading platforms with news, research, screeners and more.

Looking Back & Looking Ahead

With just about three weeks until the end of 2018, it’s an opportune moment to reflect back on the year that was and where things are going in 2019 for online investors.

Last year at this time we were knee deep in crypto mania; it’s a good thing weed has been legalized because there are some people who are going to definitely want/need to chill after the drop in both cannabis and crypto stocks over the past few months.

Also around this time last year, SparxTrading pulled together a collection of 9 voices from across the Canadian online brokerage space to provide a platform for them to share what the year was like in their own words and what DIY investors could look forward to in 2018. In that piece, we highlighted three important themes that seemed to emerge from all of the submissions:

  1. There’s a technological arms race
  2. Delivering more value to DIY investors
  3. Focus on better trading experiences

Although these three items are interrelated, we saw evidence of distinct activities to address these themes over the course of the year.

From multimillion-dollar investments in the technology stack from firms like TD Direct Investing, to the adoption of youth or ‘student’ friendly pricing at major bank-owned online brokerage CIBC Investor’s Edge to trading platforms to roll outs of upgrades of custom-built trading platforms at Questrade there were numerous examples of these themes unfolding at many of Canada’s online brokerages.

One thing that also stood out over the past year was the consolidation of the online brokerage market.

After the merger of Qtrade Investor and Credential Direct under the umbrella of Aviso Wealth, the acquisition of BBS Securities by CI Investments and the acquisition of Jitneytrade by Canaccord Financial, the war chests of non-bank owned online brokers have gotten much stronger. The industry as a whole seems to be in a ‘rebuilding’ phase – with investments in their business and technology taking place to enable them to serve investors of the future. Case in point, the launch of robo-advisors/digital advice platforms at RBC and the announced roll out of one at TD clearly signal this as a product line ‘must have’ for 2019 and beyond. They’ll have their work cut out for them, though, as Vanguard is also reportedly pursuing a launch of a robo-advisor as well.

Coming up next week we’ll launch the online brokerage look back on 2018 and look ahead to 2019 and this is definitely (and literally) going to be a page-turner.

With an exciting new look and rendering for this unique piece, interesting new themes on where online brokerages are focused as well as the unique opportunity to hear what online brokers have to say about themselves and what they’re looking forward to in 2019, we’re thrilled to be rolling this out. Be sure to follow SparxTrading on Twitter for exclusive sneak peeks at this year’s set.

Lightning Roundup

There were more noteworthy developments that took place this past week in the online brokerage space here in Canada as well as in the US.

Interview with Interactive Brokers Founder

Earlier this week, founder and CEO of Interactive Brokers, Thomas Peterffy was interviewed at the Goldman Sachs Financial Services Conference. In this informal fireside chat, there were a number of very interesting nuggets shared by Peterffy.

The first was his perspective on the “zero commission” trading trend emerging in the US online brokerage market. He specifically mentioned Robinhood and JP Morgan in this respect but he had some rather ominous words for the latter. Peterffy mentioned that JP Morgan’s decision to also do so was “a big mistake” and that ultimately “they will regret this.” Within that conversation about commission-free trading, he also laid out the simple truth to online brokerages which is that they need to make money or break even in order to exist so the money will have to come from somewhere – including with administration fees. This could be an important consideration for those online investors contemplating platforms like Wealthsimple Trade or who might be hoping for online brokerages to lower their trading commission pricing.

Another major development shared by Peterffy is that as of January 1st 2019, Interactive Brokers will be paying interest out to accounts with balances underneath $100,000. Specifically, the interest paid on an account will be indexed against the $100,000 threshold so that investors who, for example, have a cash balance of $50,000 will get an interest rate that is half the rate of an account with $100,000 or more in cash. This will definitely spur a larger segment of investors to consider kicking the tires on Interactive Brokers who simply want a better deal on their uninvested cash.

Mobile Trading Apps Spinning Their Wheels

Interactive Brokers was once again in the spotlight but this time in Canada where financial research firm Surviscor released the findings of their mobile online brokerage experience study. The mobile trading experience at Interactive Brokers blew the doors off its competitors according to the Surviscor study.

According to the rankings, Interactive Brokers’ mobile trading experience scored a 94% followed next by Questrade at 64% and then BMO InvestorLine at 57%. Perhaps most surprising is the number of firms who scored under 50% (8 out 11 firms). Desjardins Online Brokerage’s mobile trading experience ranked last with a score of 24%.

Glenn LaCoste, President and CEO of Surviscor cautioned that while the scores may appear shocking, that “it is important to understand that they do not reflect the overall merits of any of the firms. The take-away is that most industry firms fail to provide a seamless mobile accessible experience for the base online offering.”

Earlier this year, a similar sentiment was echoed by J.D. Power in their Canadian Self-Directed Investor Satisfaction Study in which Mike Foy, Senior Director of the Wealth Management Practice at J.D. Power stated “Investment firms in Canada, in general, are significantly behind the curve when it comes to their mobile app offerings, capabilities and customer engagement.”

From the Forums

Robo-Wars

Vanguard Canada is the latest wealth manager to join the robo-advisor phenomena. The news hit the forums this week as one user kicked off a discussion on the global investment company’s choice to compete in the growing market. Check out the discussion points here.

Passive or Active Retirement

One forum user took to personal finance Canada on reddit this week, wondering if a DIY investment approach would be the way to go after years of a passive strategy. With a personal aversion to financial matters at the age of 60, this proves an interesting post both for those looking for advice on what to do with their finances after retirement and for those who are curious to know if they’re on the right track.

Discount Brokerage Tweets of the Week

Into the Close

With just over two weeks to go before Christmas, the procrastinators among us are still not worried about getting that great gift in time for the holidays. For the traders, however, that deadline day for making trades in 2018 is coming. Circle December 27th as the final day to make trades in Canada that will settle in 2018 (Dec. 31st). Speaking of settling and end games – now that the weekend is here, it’s a great time to relax and marvel at the great indoors, starting with a trailer for the Avengers Endgame. Have a great weekend!

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Discount Brokerage Deals & Promotions – December 2018

*Updated Dec. 21st* Even though the holiday season is just around the corner, there’s another season that online investors and brokerages look to for big gifts: RSP season. There are no red-nosed reindeer or chimney scaling figures, but there is lots to cheer about in terms of promotional offers that are now available for DIY investors shopping for an online investing account.

This month, in addition to the strong selection of discount brokerage deals, there is a shiny new offer from a shiny new bank-owned player in the robo-advisor space, RBC InvestEase, which rolled out in late November. RBC’s InvestEase joins BMO’s SmartFolio in the deals and promotions category below.

The start of the month also sees Desjardins Online Brokerage’s commission credit offer come back in time for the holidays. Terms and conditions for the 1% commission credit offer have been updated and the official expiry date bumped to December 31st.

Looking across the board, there is a strong selection of offers from a number of bank-owned brokerages. Scotia iTRADE jumped back into the promotions arena last month with a relatively aggressive cash-back or commission-free trade offer. For DIY investors, that’s great news.

Unlike last year’s feverish push into all things weed and crypto, this year presents a mixed bag of economic uncertainty and no real strong momentum story.

On the one hand that might present a challenge to Canada’s discount brokerages in terms of the volume and enthusiasm for online brokerage accounts. On the other hand, with so many investors likely torched by dipping into crypto or who’ve seen the run-in weed stocks take their course, it might just be the perfect storm to keep things simple with a robo-advisor or passive DIY investment strategy. If last year was any lesson, families and friends talk finance over the holidays, so the timing is right for online brokerages to be visible in the conversation about finance and investing.

The bottom line for Canadian discount brokers is that they can’t count on the massive enthusiasm to push online investors their way, there has to be real value and incentive to pull investors in. We’re looking for those brokerages currently on the sidelines to step into the deals mix with some interesting offers soon. And, if the timing is right, a well-structured offer will find its way into a turkey dinner conversation or two.

Expired Offers

There were no online brokerage offers that expired at the end of November.

Extended Offers

The famously long-standing offer from Desjardins Online Brokerage made an official comeback as the terms and conditions for the popular 1% commission credit deal were updated on the Desjardins website. The original deadline of the offer was October 31st and for a good portion of November those terms remained in place even though the link was still live indicating that it was awaiting some kind of decision. Fortunately for investors the deal is available now until the end of December. This cautious extension is not unusual but with rival National Bank Direct Brokerage also offering up a promotion that runs into 2019, it is unlikely Desjardins Online Brokerage will enter the new year without a compelling deal for DIY investors.

New Offers

*Updated Dec. 21st: TD Direct Investing has launched a new trading commission rebate offer for DIY investors just before the holidays. This tiered trading commission promotion offers rebates ranging from 25 trades to 200 trades for deposits ranging between $15,000 and $100,000+. There is a twist to this offer which we haven’t seen quite often, namely that registration is required to qualify for the offer. To qualify, accounts must be opened before March 1st, 2019 and commission rebates apply to trades between the time of account opening and July 1st, 2019. See table below for more information. *

Not only do we have a new offer in the Robo-advisor/digital-advice segment, it happens to be from a new player in the space. RBC’s InvestEase platform officially went public and kicked off with a waiver of management fee (normally 0.5%) until October 31, 2019 with no cap on the amount of assets invested. With Questrade’s recent drop in management fee, the competition for investor assets is intensifying and a new entrant into the passive investing space with discount of this magnitude will get the attention of online investors (and competitors).

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2018
Open and fund a new account with at least $5,000 at National Bank Direct Brokerage and you may be eligible to receive up to 50 commission free equity trades, which are good for up to one year. Use promo code: FREE50 when applying. Be sure to read offer terms and conditions for full details. $5,000 50 commission-free trades 12 months National Bank Direct Brokerage 50 Free Trade Offer April 30, 2019
Scotia iTrade Open a new account or fund an existing account with A) $10,000; B) $25,000; C) $50,000; D) $100,000 E) $250,000; F) $500,000 or G) $1M+ and you may be eligible to receive either A)20; B) 50; C) 100; D) 200; or E), F), G) 300 commission free trades; or B) $100; C) $200; D) $500; E) $800; F) $1100 or G) $1500. Use promo code 19CA for the cash back or 19FT for the free trades offers. Be sure to read the terms and conditions for full details. A) $10,000 B) $25,000 C) $50,000 D) $100,000 E) $250,000 F) $500,000 G) $1M+ For cash back: A) $0 B) $100 C) $200 D) $500 E) $800 F) $1100 G) $1500 For commission-free trades: A) 20 B) 50 C) 100 D) 200 E) 300 F) 300 G) 300 For cash back: Cash will be deposited by July, 2019. For commission free trades: 120 days to use trades from date of account funding. iTRADE commission-free trade + cash back offer March 31, 2019
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo December 31, 2018
Open a new qualifying TD Direct Investing account by March 1, 2019 with a minimum deposit of A) $15,000; B) $25,000; C) $50,000 or D) $100,000+ and you may be eligible to receive commission rebates for A) 25; B) 50; C) 100 or D) 200 trades. To qualify online, individuals must register here and open the account by March 1, 2019. See terms and conditions for full details. A) $15,000 B) $25,000 C) $50,000 D) $100,000+ A) 25 B) 50 C) 100 D) 200 Trades made prior to July 1, 2019 will be eligible for rebate. TD Direct Investing Winter Promotion March 1, 2019
Open and fund a new qualifying account with CIBC Investor’s Edge with a deposit of at least A) $25,000; B) $50,000 or C) $100,00+ and you may be eligible to receive a cash back bonus of A) $100; B) $200 or C) $400. This offer is open to both new and existing clients. Use offer code SPARX18 when opening the account to obtain this offer. Be sure to read full terms and conditions for complete details. A) $25,000 B) $50,000 C) $100,000 A) $100 B) $200 C) $400 Cash back will be deposited on the week of March 24, 2019 for transfers received by December 31, 2018; transfers received after December 31, 2018 but before May 1, 2019 will receive cash back on the week of July 1, 2019. CIBC Investor’s Edge Cash Back Promo March 24, 2019
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2018
BMO InvestorLine Open a new account or fund an existing account at BMO InvestorLine with new assets worth at least A) $50,000; B) $200,000; C) $400,000 or D) $600,000+ and you may be eligible to receive 30 commission-free equity trades AND a cash back reward of up to A) $100; B) $300; C) $600 or D) $1000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $50,000 B) $200,000 C) $400,000 D) $600,000+ 30 commission-free equity trades plus: A) $100 B) $300 C) $600 D) $1000 commission-free equity trades can be used in February & March of 2019. Cash back will be deposited the week of July 15, 2019. BMO InvestorLine Fall 2018 Campaign January 2, 2019

Expired Offers
Last Updated: Dec. 21, 2018 16:00 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 2, 2019

Expired Offers
Last Updated: Dec. 1, 2018 22:55 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 into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. $152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $135 $15,000 Transfer Fee Rebate Details none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
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 into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Disnat Desjardins Online Brokerage is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Desjardins Online Brokerage account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo December 31, 2018
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, by transferring in at least $200,000+ in net new assets and you may be eligible to have transfer fees covered up to $200. Use promo code SPARXCASH when signing up. Be sure to read the terms and conditions for more details on the offer. $200 $200,000 BMO InvestorLine Summer 2018 Campaign September 3, 2018

Expired Offers
Last Updated: Dec. 1, 2018 14:00 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
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 and fund a new qualifying account with at least $5,000 at RBC Direct Investing and you may be eligible to receive up to 20 commission-free trades, which are good for up to one year. Use promo code MDFT8 to qualify. This promotion is being marketed towards healthcare workers, so be sure to review terms and conditions or speak to an RBC Direct Investing representative for full details. $5,000 RBC Direct Investing 20 Free Trade Offer Feb. 28, 2019

Expired Offers
Last Updated: Dec. 1, 2018 14:00PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2019 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Discounted Management Open a new account with RBC InvestEase and the standard management fee will be waived until October 31, 2019. See offer terms and conditions for full details. $1,000 No management fees until October 31, 2019 None March 31, 2019 RBC InvestEase Pricing Details
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Dec. 1, 2018 14:00 PT
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Discount Brokerage Deals & Promotions – November 2018

*Update Nov. 17th* If there’s one month of the year known for deals, it’s November. With Black Friday and Cyber Monday, shoppers are getting geared up for some serious savings. For Canadian DIY investors, the fun has already started as Canada’s online brokerages gear up for their busiest shopping season – RRSP season – and offer some compelling promotions in the process.

This month’s crop of discount brokerage deals is numerically close to where things were last month, however within those numbers lies a very interesting development that could touch off a local, if not national, deal battle-royale. The good news for DIY investors is that the new offers that came to market are definitely full of value so for anyone hunting for an online trading account, there are some very tempting offers on the table to choose from.

While they’ll be detailed further below, BMO InvestorLine and National Bank Direct Brokerage both start the month with new promotional offers – each putting an interesting twist on commission-free trading.  In the minus column, Desjardins Online Brokerage, who, as of publication of this deals update on November 1st, have allowed their long-standing 1% commission credit offer to officially expire.

Historically, Desjardins Online Brokerage has almost always extended this long-standing offer prior to the expiry date hitting, so unless there was a major Halloween candy hangover to blame, this would mark the first time in a few years that Desjardins Online Brokerage hasn’t posted a significant commission-free trading offer. While it is just speculation at this point, the move by their close rival National Bank Direct Brokerage, might prompt an even bolder offer to come to market.

Of course, there is still some ambiguity around the RBC Direct Investing commission-free trade offer. This deal, which was mentioned last month in the Weekly Roundup, is being marketed to healthcare workers, however online investors interested in the offer can also take advantage of it. Whether this offer goes mainstream or whether another comes along from RBC Direct Investing, there is nonetheless another offer available from a major bank-owned online brokerage that will get the attention of DIY investors.

With so many offers already in the mix, there’s a good chance we’ll see other discount brokerages come off the sidelines and step up their promotional game. Stock markets aren’t the only place where there’s volatility, so we’ll be very interested to see what the autumn wind will be blowing in with it at the rest of Canada’s online brokerages. As always, if there are any other discount brokerage deals that might be of interest to DIY investors to know about, please let us know.

Expired Deals

As of the publication (on November 1st) of the deals and promotions update, Desjardins Online Brokerage was the lone brokerage to have a deal expire heading into the new month. Their ultra-long-standing offer of 1% commission credit along with their transfer fee bonus have technically expired. We’ll keep an eye out to see if there is a refresh or new offer and update things accordingly.

Extended Deals

BMO SmartFolio has extended their 0.5% cash back offer to the new year. The new expiry date for the cash back promotion is January 2nd, 2019.

New Deals

*Update Nov. 17 – Scotia iTRADE jumped back into the deals pool with a new cash back or commission-free trade promotion. Unlike previous promotions of this kind, there are slightly different offers and requirements for the cash back and commission-free trade components. For example, the minimum deposit required for the commission-free trade reward is $10,000 (which comes with 20 free trades) whereas the minimum deposit to qualify for a cash back reward is $25,000. Also, on the commission-free trade offer the deposit level which maxes out the number of commission free trades (which is 300 trades in this promotion) is $250,000 whereas the upper deposit limit to qualify for a cash back offer is $1M+ (which comes with a $1500 reward). See table below for more details and read an analysis of the cash back promotions in this issue of the Weekly Roundup here.*

Starting first with one of the mainstays of the online brokerage promotions section, BMO InvestorLine who rolled out their new combined cash back and commission-free trade offer at the outset of the month. Their latest promotion offers between $100 and $1,000 cash back for deposits that range from $50,000 to $600,000+. As a bonus offer, there are 30 commission-free trades which are good for use in February and March of 2019, a typically busy season for RSP account openings and purchases of securities. See more information in the table below.

After a long absence from the discount brokerage deals section, National Bank Direct Brokerage came back with a bang. Not only did they roll out a new website but they also published a deal that is sure to ruffle some feathers with cross-town rivals as well as other online brokerages. NBDB’s latest promotion offers up an eye-popping 50 commission free trades that are good for use for one year and all for the ultra-low qualifying threshold of $5,000. Combined with commission free ETF trading, this is a signal that more commission free trading is likely on the horizon.

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2018
Open and fund a new account with at least $5,000 at National Bank Direct Brokerage and you may be eligible to receive up to 50 commission free equity trades, which are good for up to one year. Use promo code: FREE50 when applying. Be sure to read offer terms and conditions for full details. $5,000 50 commission-free trades 12 months National Bank Direct Brokerage 50 Free Trade Offer April 30, 2019
Scotia iTrade Open a new account or fund an existing account with A) $10,000; B) $25,000; C) $50,000; D) $100,000 E) $250,000; F) $500,000 or G) $1M+ and you may be eligible to receive either A)20; B) 50; C) 100; D) 200; or E), F), G) 300 commission free trades; or B) $100; C) $200; D) $500; E) $800; F) $1100 or G) $1500. Use promo code 19CA for the cash back or 19FT for the free trades offers. Be sure to read the terms and conditions for full details. A) $10,000 B) $25,000 C) $50,000 D) $100,000 E) $250,000 F) $500,000 G) $1M+ For cash back: A) $0 B) $100 C) $200 D) $500 E) $800 F) $1100 G) $1500 For commission-free trades: A) 20 B) 50 C) 100 D) 200 E) 300 F) 300 G) 300 For cash back: Cash will be deposited by July, 2019. For commission free trades: 120 days to use trades from date of account funding. iTRADE commission-free trade + cash back offer March 31, 2019
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo October 31, 2018
Open and fund a new qualifying account with CIBC Investor’s Edge with a deposit of at least A) $25,000; B) $50,000 or C) $100,00+ and you may be eligible to receive a cash back bonus of A) $100; B) $200 or C) $400. This offer is open to both new and existing clients. Use offer code SPARX18 when opening the account to obtain this offer. Be sure to read full terms and conditions for complete details. A) $25,000 B) $50,000 C) $100,000 A) $100 B) $200 C) $400 Cash back will be deposited on the week of March 24, 2019 for transfers received by December 31, 2018; transfers received after December 31, 2018 but before May 1, 2019 will receive cash back on the week of July 1, 2019. CIBC Investor’s Edge Cash Back Promo March 24, 2019
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2018
BMO InvestorLine Open a new account or fund an existing account at BMO InvestorLine with new assets worth at least A) $50,000; B) $200,000; C) $400,000 or D) $600,000+ and you may be eligible to receive 30 commission-free equity trades AND a cash back reward of up to A) $100; B) $300; C) $600 or D) $1000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $50,000 B) $200,000 C) $400,000 D) $600,000+ 30 commission-free equity trades plus: A) $100 B) $300 C) $600 D) $1000 commission-free equity trades can be used in February & March of 2019. Cash back will be deposited the week of July 15, 2019. BMO InvestorLine Summer 2018 Campaign January 2, 2019

Expired Offers
Last Updated: Nov. 17, 2018 00:45 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 2, 2019

Expired Offers
Last Updated: Nov. 1, 2018 22:55 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 into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. 152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $135 $15,000 Transfer Fee Rebate Details none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
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 into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Disnat 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 DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo October 31, 2018
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, by transferring in at least $200,000+ in net new assets and you may be eligible to have transfer fees covered up to $200. Use promo code SPARXCASH when signing up. Be sure to read the terms and conditions for more details on the offer. $200 $200,000 BMO InvestorLine Summer 2018 Campaign September 3, 2018

Expired Offers
Last Updated: Nov. 1, 2018 22:55 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
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 and fund a new qualifying account with at least $5,000 at RBC Direct Investing and you may be eligible to receive up to 20 commission-free trades, which are good for up to one year. Use promo code MDFT8 to qualify. This promotion is being marketed towards healthcare workers, so be sure to review terms and conditions or speak to an RBC Direct Investing representative for full details. $5,000 RBC Direct Investing 20 Free Trade Offer Feb. 28, 2019

Expired Offers
Last Updated: Nov. 1, 2018 22:55 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2019 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Nov. 1, 2018 22:55 PT
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Discount Brokerage Deals & Promotions – October 2018

Now that October is here, there are some unbe-leaf-able deals for DIY investors. Corny puns aside, the fall crop of Canadian discount brokerage deals is packed with a great selection of cash back and commission-free trading offers. With the entry of a popular bank-owned brokerage into the deals race, other online brokerages are certain to take notice.

To kick things off for the new month, the official start to the month came with a couple of important deal extensions from BMO InvestorLine, SmartFolio and Desjardins Online Brokerage. Also on the welcome manifest, a cash back promotion from CIBC Investor’s Edge exclusively for SparxTrading.com readers.

Overall, transfer offers and commission-free trade promotions are still the most popular choice for online brokerages. With two very noteworthy names now offering cash back promos, DIY investors looking for a deal will have a couple of strong options to consider from the 20+ deals listed. As with all things related to trading, be sure to look over the fine print and terms of the offers being consider.

Expired Deals

With summer officially in the books, HSBC InvestDirect also packed up and put away their summer commission-free trade promo. Unfortunately for HSBC InvestDirect, this promotion was seriously overshadowed by the announcement from Wealthsimple Trade that commission-free trading was going to launch in Canada. In fact, most commission-free offers are going to have a harder time stacking up against the full commission-free experience being promoted by WealthSimple trade.

Extended Deals

BMO InvestorLine’s cash back promotion has been extended out for yet another month. This past September marks the 30th anniversary of the launch of InvestorLine so we’re glad to see that their cash back promotion also got a chance to enjoy the party just a little bit longer. The new expiry date for BMO InvestorLine’s cash back promotion is October 31st.

Also extended from BMO is the SmartFolio 0.5% cash back promotional offer. Like the BMO InvestorLine extension, the new expiry date for SmartFolio’s promotion is October 31st.

Desjardins Online Brokerage kept its long-running commission credit offer going for one more month. The new deadline for this popular promotion is now October 31st, 2018.

New deals

CIBC Investor’s Edge stepped onto the deals and promotions field in a big way at the end of September by launching an exclusive cash back promotion for SparxTrading.com readers. This offer, which comes with a custom Sparx Trading promo code, is the first major bank-owned online brokerage promotion to carry on well into the new year – a sign that CIBC Investor’s Edge is quite confident in the competitiveness of this cash back offer.

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2018
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo October 31, 2018
Open and fund a new qualifying account with CIBC Investor’s Edge with a deposit of at least A) $25,000; B) $50,000 or C) $100,00+ and you may be eligible to receive a cash back bonus of A) $100; B) $200 or C) $400. This offer is open to both new and existing clients. Use offer code SPARX18 when opening the account to obtain this offer. Be sure to read full terms and conditions for complete details. A) $25,000 B) $50,000 C) $100,000 A) $100 B) $200 C) $400 Cash back will be deposited on the week of March 24, 2019 for transfers received by December 31, 2018; transfers received after December 31, 2018 but before May 1, 2019 will receive cash back on the week of July 1, 2019. CIBC Investor’s Edge Cash Back Promo March 24, 2019
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2018
BMO InvestorLine Open a new account or fund an existing account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $300,000 or D) $500,000+ and you may be eligible to receive a cash back reward of up to A) $75; B) $200; C) $500 or D) $1000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $50,000 B) $100,000 C) $300,000 D) $500,000+ A) $75 B) $200 C) $500 D) $1000 Cash back will be deposited the week of April 15, 2019. BMO InvestorLine Summer 2018 Campaign October 31, 2018

Expired Offers
Last Updated: Oct. 1, 2018 22:00 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 2, 2019

Expired Offers
Last Updated: Oct. 1, 2018 22:15 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 into a new HSBC InvestDirect account and you may be eligible to have up to $152.55 in transfer fees covered. 152.55 $15,000 Confirmed via email contact with HSBC InvestDirect Rep. Contact client service for more information. none
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $135 $15,000 Transfer Fee Rebate Details none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
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 into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Disnat 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 DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo October 31, 2018
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, by transferring in at least $200,000+ in net new assets and you may be eligible to have transfer fees covered up to $200. Use promo code SPARXCASH when signing up. Be sure to read the terms and conditions for more details on the offer. $200 $200,000 BMO InvestorLine Summer 2018 Campaign September 3, 2018

Expired Offers
Last Updated: Oct. 5, 2018 17:15 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
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: Oct. 1, 2018 22:15 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 October 31, 2018 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Oct. 1, 2018 22:15 PT
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Discount Brokerage Weekly Roundup – September 14, 2018

There’s no doubt that when big weather events happen, people pay attention. With announcements of feature releases and new offers at Canadian and US online brokerages happening at a greater frequency and intensity, it appears as if a significant storm of activity is brewing into the tail end of 2018.

In this edition of the roundup we take a look at some very big moves being telegraphed by one of Canada’s largest online brokerages and what that means for all the players on the online brokerage field heading into 2019. Next, we review the latest Canadian online brokerage rankings from a popular rating agency and unpack a surprising turn of events in the industry this past year. As always, we’ll close out the roundup with a healthy dose of tweets and forum posts from Canadian DIY investors.

Let’s get digital: TD Direct Investing continues to invest in digitization of wealth management

This past week, one of Canada’s largest online brokerages, TD Direct Investing, announced that they are planning to launch some bold digital initiatives in 2019.  In doing so, TD’s online brokerage arm has doled out a healthy dose of market moving news that is bound to get the attention of DIY investors and competitors across the online trading spectrum. In a space where most of the moves are incremental, TD Direct Investing’s latest announcement feels more like a step change in the industry rather than just another small step forward.

In a week peppered with interesting stories and developments about discount brokerages, there are a number of reasons why TD Direct Investing’s announcement, which was published on September 12th, was exceptionally interesting and relevant to the online brokerage space in Canada.

The first and undeniably the most important was what the news release said.

The content of the release laid out a vision for the digital wealth management experience that TD Direct Investing clients can expect to see unfold in 2019. Included in that digital experience is the mention of digital wealth planning tools in the early part of the year as well as TD’s own robo-advisor platform that will also include TD’s own ETFs which is set to launch in the latter portion of next year.

While we don’t want to gloss over the enormity of what it means to the online brokerage space in Canada to have robo-advice hit this kind of scale, there are so many angles to this move that for this roundup, we’ll focus on some of the important details that are also worth mentioning.  As this story continues to unfold, we’ll be exploring more of what the details of the services will include, especially what a “complete, end-to-end digital investing experience” refers to.

Aside from the release of new features, another very important angle to the news release this week is that TD Direct Investing is announcing what their intentions are for some very ambitious projects. The story here is that like most other online brokerages, TD Direct Investing has historically played their cards very close to their vest. That they would not only announce multiple technology features but also put even a general timeline on those features going live signals their confidence in those programs hitting the launch windows and it signals that TD might be taking a different approach on sharing what’s in the TDDI workshop.

As technology companies are well aware of, a little bit of prelaunch buzz is what gets people curious and excited to see what actually rolls out. Historically, however, services or features in development at Canada’s discount brokerages tended not to get much of a spotlight, let alone a news release and a coordinated social media publication. So, it is clear that something has shifted with regards to ‘sharing’ information relating to development of new features.

On that note, it was particularly interesting to see a senior executive at BMO Wealth Management ‘like’ a post made by the President of TD Direct Investing (Paul Clark) about the launch of these new services on LinkedIn.

Perhaps this move by TD Direct Investing is signaling a shift in identity from being a “financial services” firm towards more of a technology firm, thus fitting more naturally into a ‘fintech’ way of operating.

A third important implication of this news release is the fact that the technology stack TD Direct Investing is choosing to integrate into their own technology stack appears to be future-proofing to some degree.

The technology provider TD Direct Investing announced they’d be working with, Hydrogen Technology Corporation, a platform that enables APIs to be developed as well as blockchain connectivity/support and uses AI/machine learning to garner insights on client behaviour. That very potent combination of technologies means TD Direct Investing can learn more about their clients’ financial services needs and, with the breadth of services under the TD umbrella, find a way to connect the right product to the right people at the right time – at least that appears to be the plan.

For clients, it means a feature-rich platform with analytics and a user experience suited for younger investors who are particular about the look, feel and function of technology platforms.

Of course, then there’s the option in the future to readily connect to blockchain-powered financial instruments, something that might come to market sooner than anyone can really predict. As such, TD Direct Investing appears to have an edge in equipping themselves with a technology layer geared towards ensuring they can connect to the technologies of tomorrow with the WebBroker interface.

Aside from the abovementioned key points, there are still numerous implications and interesting angles to this announcement.

Without question, TD Direct Investing’s latest move is a big deal and will command the attention of the rest of the Canadian online brokerage market. And, it seems like TD Direct Investing’s competitors will have their work cut out for them.

According to an article published in the Globe and Mail this week, TD has invested $125 million into its WebBroker trading platform in preparation for new trading features and capabilities. By comparison, the acquisition of the entirety of BBS Securities (including subsidiary Virtual Brokers) last year by CI Financial (coincidentally another client of Hydrogen Technology Corp) cost about $38 million. Simply put, smaller online brokerages or those without deep technology budgets or talented tech teams are up against a formidable competitor in TD Direct Investing.

Prudently, TD Direct Investing has mentioned that these changes will take place in phases and, since approximate timetables have been given, there is enough slack and wiggle room to accommodate the surprise delays that inevitably accompany any technology project. Even so, there is little doubt that this move by TD Direct Investing, regardless of what the final products looks or functions like, will have competitors scrambling to mobilize and DIY investors (clients especially) eager to take TD Direct Investing’s new digital platforms for a test drive.

BMO InvestorLine Ranked #1 by J.D. Power for 2018

With 2018 heading into its final stretch, the annual discount brokerage “rankings season” starts to kick things up a notch. This past week, J.D. Power released the results of their latest rankings of Canadian discount brokers (based on investor satisfaction) with BMO InvestorLine coming out on top of the field in terms of investor satisfaction.

While the Investor Satisfaction study provides a snapshot in the current year of how the field of online brokerages compare to one another, we’ve been tracking results from this survey data since 2013 and as such, this year’s results present a very interesting picture both in terms of 2018 as well as how 2018 compares to previous years.

Included in this year’s rankings are 8 of Canada’s most popular online brokerages:

Curiously, neither Qtrade Investor nor HSBC InvestDirect made it into the published rankings for this year, something that has not happened since 2014. Also not present were Virtual Brokers or Interactive Brokers, neither of whom have made it into the published results.

The big story for the 2018 online brokerage rankings from J.D. Power is the relative underperformance of Canada’s online brokerages compared to previous years. In fact, this year’s average score of 723 is the lowest since we’ve measured, beating out 2013’s score of 724 and clearly snaps an uptrend that was in place since 2015.

To unpack why that might be the case, there are also some additional observations worth noting.

First, two firms that have consistently battled for podium finishes over the past five years, National Bank Direct Brokerage and Desjardins Online Brokerage, finished uncharacteristically lower than “usual”.  Granted, Desjardins Online did tie for second place this year, however, when looking at both of these firms’ average scores since 2013, Desjardins Online Brokerage and National Bank Direct Brokerage are virtually tied at 752 and 753 points respectively. Most years one or both of these firms have handily beat their competitors and their average scores far outpace just about everyone else except BMO InvestorLine, whose 6-year average score ranks third overall at 746.

Data sourced from J.D. Power Website

Digging a little deeper into the numbers, the standard deviation of those scores, a measure of how variable those scores have been over that time period, reveals that BMO InvestorLine is actually one of the most consistent firms in terms of investor satisfaction scores with a standard deviation of 13 points. TD Direct Investing, who was ranked second last in 2018, was also tied with BMO InvestorLine in terms of volatility of investor satisfaction scores over that same timeframe. The firm with the highest variation in satisfaction scores over the same period was Qtrade Investor (28 points) because of their strong uptick in 2017 followed by Desjardins Online Brokerage (24 points).

As such, even though BMO InvestorLine’s investor satisfaction scores decreased compared to last year, they were, on a relative basis, higher than their peers in 2018. Finishing behind BMO InvestorLine this year were CIBC Investor’s Edge and Desjardins Online Brokerage. And, at the other end of the list, Scotia iTRADE finished last in terms of investor satisfaction with a score of 717.

Another interesting trend with regards to the performance of online brokerages in terms of investor satisfaction is that the range between the highest and lowest scores continues to narrow. In 2013 and 2014, for example, the range between the top and bottom scores was 64 points however in 2018 that range has compressed to just 22 points.

As was referenced in the roundup a couple of weeks ago for the Kiplinger rankings of US online brokerages, for Canadian online brokerages it appears that on the whole, the differences between online brokerages is diminishing – in this case when it comes to investors being satisfied with the full set of attributes measured.

For Canada’s online brokerages, the message is pretty clear: there needs to be strong differentiators in place to prevent them from becoming viewed as a ‘commoditized’ service. In other words, there needs to be greater emphasis on what makes being a client of one online brokerage feel more ‘special’ (read: valuable) than another.

To BMO InvestorLine’s credit, their consistency has paid off. With relatively strong investor satisfaction scores in the past, in a year when the competition stumbled, and investor satisfaction waned, their current mix of services still holds currency with their clients. At least for 2018, slow and steady has won the race.

Discount Brokerage Tweets of the Week

From the Forums

Function Over Form

With so many online brokerages out there these days, it can be tricky to keep up with who offers which feature and who doesn’t. In the end, getting a user from A to B reliably appears to be the driving force. This forum thread from reddit’s Personal Finance Canada section highlighted the mobile experiences between CIBC Investor’s Edge and TD Direct Investing. See what interesting feedback others had to offer.

A Head Start

From robo-advisors, to couch potatoes to plain old mutual funds, choices for ‘passive’ investing are easier than ever, which, ironically might make choosing more challenging. One young investor looking to grow their TFSA asked about these options in this post in reddit’s Personal Finance Canada forum. The questions were met with a wealth of knowledge and advice on navigating student loan repayments, interest fees as well as useful information on robo-advisors and ETF fees. Worth a read.

Into the Close

That’s a wrap on another wild week inside and outside of the markets. Optimistically, there’s lots to look forward to heading into the weekend, including news that there will be the first ever Space tourist and, of course, that NFL football is back. Wherever your adventures boldly take you, we hope you have a great weekend.

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Discount Brokerage Weekly Roundup – September 7, 2018

Even though it was technically a short week, it most certainly didn’t feel that way for anyone watching or reporting the news. While none of the online brokerages have pulled many of the stunts on Twitter that this past week has provided, they are doing their fair share of generating headlines, buzz and making a splash online.

In this edition of the roundup, we ring in September with an overview of some very interesting deals and promotions activity from Canadian discount brokerages as well as a look at new areas where brokerages are battling for DIY investors. From there we’ll take a deep dive into a major overhaul of a popular online brokerage’s website, including some interesting design and content strategy choices. As always, we’ll take a tour of what DIY investors and online brokers were up to on Twitter and close out with chatter from the investor forums.

Deals and Promotions Heat Up September

After a quiet start last month, deals and promotions activity at Canada’s discount brokerages has picked up considerably as we enter September. While this month usually signals a return to the markets and heightened trading activity, this year there’s something different brewing, and it’s not a pumpkin spice latté.

Instead, through the month of August and coming out of the gate in September, there’s been a noticeable uptick in discount brokerage deals activity. We’ve seen a new battle ground emerge in the area of referral promotions (more on that in a moment) as well as an online brokerage which typically sits on the sidelines jump back into the deals pool. In addition, there have been references to additional offers which may be coming this month. For DIY investors, it seems to suggest interesting opportunities might be available when shopping around for an online brokerage account.

This heightened level of promotions activity points to what will likely be a fierce contest for DIY investor assets over the coming months. Historically, deals and promotions activity tends to ramp up through October and November in anticipation of “RSP season” – a point in the calendar year in which many DIY investors turn intention into action by opening new accounts. The fact that such drastic moves are being made by online brokerages so early suggests competitive forces at play.

One of the biggest stories in the discount brokerage deals and promotions space this September is BMO InvestorLine’s reduction in the threshold to qualify for their refer-a-friend promo. Specifically, InvestorLine has lowered the threshold to qualify for the referral promotion from $50,000 down to $5,000 while still retaining the $50 cash back for both referrer and referee. This move makes their offer now more accessible than Scotia iTRADE, the only other bank-owned online brokerage to offer a referral promotion.

While it is not clear exactly why BMO InvestorLine chose this point in time to lower their qualifying threshold so substantially, the combination of Wealthsimple Trade launching for Canadian DIY investors and the entry of Qtrade Investor into the referral promotion sandbox are both very recent developments that would, understandably, prompt BMO InvestorLine to shift tactics to account for these competitive forces. Of course, frequent observers of the deals and promotions space would also have noticed that BMO InvestorLine also chose to extend their cash back offer through to the end of September, a sign that perhaps something a bit bigger and bolder is on the drawing board for the fall season.

In terms of strategy, referral promotions for discount brokerages are an interesting battleground.

On the surface, that more online brokerages don’t have them in place is a head scratcher. After all, one of the most influential and least expensive sources of new clients are the family and friends of existing, delighted clients. That said, getting a referral program off the ground and functioning properly, is easier said than done. Competing demands for limited technology resources means that even if the technology exists to manage this initiative, it still requires oversight, management and maintenance – something that invariably requires resources. So, one natural limitation to other online brokerages simply rolling out a referral program is that ‘buy in’ has to be there and business case made, which is why Qtrade Investor jumping into the referral promotion segment is such a big deal and why BMO InvestorLine’s latest move creates even more of a challenge to other brokerages to either match this promotion or leave BMO InvestorLine unchallenged.

With two big announcements in the referral promotions category within a month, however, this appears to be fertile ground for competition. These actions will not go unnoticed by other brokerages and will likely be a catalyst for those discount brokerages on the fence about deploying a referral program of their own to find an effective counter offer.

It is also worth mentioning that time is of the essence for Canadian discount brokerages looking to launch any kind of splashy promotion. Wealthsimple Trade is still not yet widely available which means that nimble online brokerages have a window with which to retain existing and/or attract new customers via some kind of big promotion.

After Wealthsimple Trade does step onto the field, however, it will be interesting to see whether they tackle referral bonuses or promotions altogether. While we’ll just have to wait and see, there’s already evidence they’re willing to leverage referrals.

As one of Canada’s leading fintech firms, Wealthsimple (parent to Wealthsimple Trade) is using a clever strategy of referrals to boost awareness of and interest in Wealthsimple Trade via it’s “waiting list” structure. Anyone wanting early access to their new platform can jump ahead in the line by simply referring more people to sign up. Not only is Wealthsimple Trade (and the parent brand) already active with affiliate programming but they are showing they’re already leveraging it in creative ways.

In the battle for Canadian DIY investors’ attention and share of wallet, the lineup of fall deals is sure to bring a few more twists and turns and some very interesting marketing campaigns. The bottom line for DIY investors, though, is that online trading is about to get much cheaper, more accessible and much more interesting to shop for an account.

Questrade’s New Website is Seriously Chill

This past week, Questrade unveiled a new and improved version of their website. While new website refreshes don’t typically make the kind of splashy headline they once did, the launch is nonetheless an important milestone for the company and reflects a sensitivity to their target demographic as well as a clear shift in the notion of what “investors” look like.

Overall the new website looks and feels more contemporary and built for an Instagram generation. The imagery is more prominent and features a very millennial trope of people ‘living their best lives’ which stands in stark contrast to the extreme emotion that characterized previous versions of the website or the “tough questions” campaign that featured bold text statements.

While there is no avocado toast, there is a notable colour palette of green and white that would make for an insta-worthy post. Ironically, Instagram isn’t really part of the Questrade Wealth Management brand directly (it is part of their careers section though) which is in stark contrast to Wealthsimple which has embraced that channel as part of their social media ecosystem to connect with investors.

To Questrade’s credit, and perhaps picking up on themes from the release of other online investing websites launched not too long ago (such as Credential Direct and Qtrade Investor) Questrade chose to have visually appealing imagery, minimal text and much more room for visitors to focus on something interesting visually as well as important key message. While it is not ‘outstanding’ the important point is that it doesn’t stand out for the wrong reasons.

Another very interesting feature of the imagery choices on the new website is that many of the individuals in the photos skew young. There are almost no images of “seniors” nor of traditional corporate settings but rather young people or young families “living” life. It’s generally difficult to create an emotional experience (especially a positive one) with regards to financial services and it is especially difficult to do so while looking original and authentic. We’ve all seen far too many stock photos of what “finance” looks like, so kudos to the people choosing images for Questrade’s new website.

It is also worth mentioning that “who” an investor looks like has also been given careful consideration. Questrade has made sure to include a more balanced view of women as investors, a welcome evolution from finance/investing websites that, for many years, defined investing in a visual sense, as ‘men only’. Again, Questrade is not unique in this regard and even on their new site there is some room to improve, but they are trending in the right direction when it comes to inclusivity and broadening the definition of what an investor could or should look like.

While website changes are increasingly now the norm, Questrade’s recent website overhaul is a significant visual and design departure from their previous websites, a likely reflection of their own evolution as a wealth management firm and not just an online brokerage.

The changes to the new website haven’t just been visual, however. Structurally, the new website also includes testimonials from (presumably) Questrade clients who’ve said nice things about the brand which also takes its cues from other online brokerages doing something similar.

A curious feature of the new website is that the big ‘content’ sections of the previous website have been moved or removed entirely.

For example, the Questrade community is no longer available (at least on the public facing site) which means that previous content such as newsletters and forum posts are not visible. Also no longer accessible is the Questrade blog as the message below indicated when clicking on a Google link for it. Instead of these sections, users are directed to the ‘resources & support’ section of the new website.

It appears Questrade has moved their educational content into a “support” section and while there are articles about investing topics, navigating this content requires users to click on ‘related’ articles or use the search field rather than being able to access the topics in a more categorical format. For users who browse by topic or who don’t know what they don’t know (and thus don’t know what to search), this structure actually makes it more challenging to consume information and ‘learn’ about investing.

Speaking of content, it also looks like Questrade has started to push out content on social media channels related to investing. Recent posts on Questrade’s Facebook and Twitter feature an informative graphic containing an investment term, something that other online brokerages have also successfully used as part of their social media content mix (such as Interactive Brokers, and once upon a time, Scotia iTRADE).

Admittedly, this was supposed to be a much shorter piece on Questrade’s new website. Responsive websites that render well across multiple screens are now the standard rather than an exception; clean minimalist design that uses generous whitespace and bold imagery is a design choice clearly aimed at reaching and resonating with younger, more visually-inclined users. These are no longer big, innovative leaps.

That said, the fact that many of the changes to the online brokerage space (zero-commission trading notwithstanding) we have observed are evolutionary rather than revolutionary, speaks to a new trend of sorts: zeroing in on the details. In much the same way that the highly competitive world of Formula One racing separates success from failure by minutia of design, so too will changes to the digital experience of online brokerages – including their websites. Going forward, the details will matter more than they have before.

Even with the ingredients of what goes into a contemporary website well telegraphed, how well those elements come together ultimately determines the end user’s experience and Questrade’s new website is the product of a lot of thought and design savvy.

While there are some very intriguing changes around the removal of a blog, forums section and other content items, the ultimate result of Questrade’s redesigned website is that it reflects their ability to be contemporary from a design point of view. This new website has helped to visually reshape the narrative of Questrade from just a ‘direct investing’ firm towards being a holistic wealth management firm that is along for the ride as their clients ‘lead their best life.’

BMO InvestorLine Turns 30

While the parent to BMO InvestorLine is clipping along at a healthy 200 years old, BMO InvestorLine itself is still a spry 30 year-old. We spotted this great image on Twitter that was a great throwback to when ‘mobile trading’ made its debut at InvestorLine. Congratulations to BMO InvestorLine on hitting this milestone. As with any great milestone birthday, there will hopefully be lots of reasons to celebrate (especially for DIY investors)!

Discount Brokerage Tweets of the Week

From the Forums

No Room with Some Views

TFSAs can be tricky business, especially so when you overcontribute. A user in this reddit thread ran into some issues with overcontributing to their TFSA while also experiencing a large loss. Read what options others offered in the shape of damage control including factoring in fees and transfer of funds.

Slow Your Roll

Of the many reasons why Wealthsimple Trade could siphon away business from online brokerages, this reddit post provides a compelling view of consumer sentiment on the new service (especially since it hasn’t even launched yet). In this post, one user thinks that taking the DIY route required going to a popular online brokerage however other readers were quick to weigh in on other options, including staying put with Wealthsimple.

Into the Close

That’s a wrap on another week. Just because it’s Friday, doesn’t necessarily equate to relaxation ahead. Political firestorms seem to be ever present – including in the launch to the new NFL football season. If you haven’t already seen it or heard of it, Nike and Colin Kaepernick are making all kinds of waves. There was a very interesting stat shared by Robinhood (the online brokerage) about the impact of Nike’s move – as well as on their stock. In case you haven’t seen the video, it’s worth a watch below. And, on that note, whatever you find yourself dreaming about this weekend, hopefully it’s bold and exciting!

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Discount Brokerage Deals & Promotions – September 2018

*Updated Sept. 24.* September is officially here. And, along with pumpkin spice everything, the Canadian discount brokerage deals and promotions section is also going to get bold, rich and flavourful. Ok, maybe not that last one, but nonetheless this month is going to shape up to be a very busy one as far as promotions go.

The good news is that we know from a number of different sources, that promotions are on their way this month. The not-so-good news is that we’re not sure exactly when. But sit tight, because as in the stock market where higher prices beget higher prices; when it comes to promotions – more deals lead to more deals.

Kicking off the month, there is nothing crossing the wires as of September 1st. In fact, technically speaking, the expiry of Scotia iTRADE’s promotion (and accompanying transfer offer) at the end of August puts the deals count down by two heading into the new month. Not to worry though. Since it is a long weekend and there is a promotion timed to expire on September 3rd from BMO InvestorLine, there’s a good chance that the return to work and school will bring with it at least one new offering announcement.

Throughout last month, however, there were two very noteworthy deals and promotions developments that are worth highlighting here.

First, Qtrade Investor launched a refer-a-friend promotional offer. This was big news as this program now enables Qtrade to take advantage of their stellar service reputation (which is very helpful when it comes to referral programs) and it positions them to compete directly against the very small group of online brokerages who also have referral bonuses.

The second important deals development last month came from HSBC InvestDirect, which launched a commission-free trading promotion that lasts until the end of September. Of course, no sooner did the HSBC InvestDirect deal make it to their public facing website than Wealthsimple Trade rattle the Canadian discount brokerage space by offering up commission-free trading – period.

In fact, the latest move by Wealthsimple Trade means that a once popular category of “commission-free” trade deals could itself see some important changes.

It’s too soon to tell however Wealthsimple Trade could result in commission-free trade offers evaporating altogether or if some hybrid/better solution comes along. After all, the optics of 30 trades which are good for only 60 days doesn’t quite have the same ring to it as free trades, forever.

What may be a more likely development is that the value or flexibility of commission-free trades might expand or, hopefully, we’ll start to see online brokerages compete more often with cash-back offerings in which case, larger online brokerages have a golden opportunity to outspend their competitors.

The bottom line, September is going to be very interesting for deal-seeking DIY investors, and if the markets continue their push upwards, a rewarding time to be an online brokerage too. That certainly puts a little extra spice on already bold selection of offers.

As always, if there are offers that we haven’t spotted that would be good for other DIY Investors to know about, let us know in the comments section below.

Expired Deals

Scotia iTRADE’s cash back offer for existing clients expired at the end of August. This promotion offered a prepaid Visa card ranging in value from $100 to $1,500 for deposits between $25,000 and $1M+.

Extended Deals

*Update Sept. 5 – BMO InvestorLine has extended the deadline for their current cash back offer to September 30th.*

There are no extensions to report at this time.

New Deals

*Update Sept. 24 – The first new deals of the official fall season have arrived. CIBC Investor’s Edge has launched a cash-back offer exclusively for SparxTrading.com readers. This promotional offer, which runs until March of 2019, consists of a $100, $200 or $400 cash back for opening a new CIBC Investor’s Edge account. Both new clients and existing clients may be eligible for this offer. See table below for more information*

*Update Sept. 5 – This is an exciting development, BMO InvestorLine has lowered the minimum deposit requirement substantially to qualify for their referral offer. The new minimum deposit requirement is $5,000 (reduced from $50,000), which makes it much easier to qualify for a referral bonus. See table below for more information.*

There are no new deals to report at the start of the month. As mentioned above, both Qtrade Investor and HSBC InvestDirect joined the deals roster through the middle of August. Stay tuned, though, as there are several offers in the works scheduled to arrive this September.

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account at HSBC InvestDirect and you may be eligible to receive up to 30 commission-free equity trades (North American equities only). See terms and conditions for full details. n/a 30 commission-free trades 60 days Click to access HSBC InvestDirect Summer Promotion September 28, 2018
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2018
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo October 31, 2018
Open and fund a new qualifying account with CIBC Investor’s Edge with a deposit of at least A) $25,000; B) $50,000 or C) $100,00+ and you may be eligible to receive a cash back bonus of A) $100; B) $200 or C) $400. This offer is open to both new and existing clients. Use offer code SPARX18 when opening the account to obtain this offer. Be sure to read full terms and conditions for complete details. A) $25,000 B) $50,000 C) $100,000 A) $100 B) $200 C) $400 Cash back will be deposited on the week of March 24, 2019 for transfers received by December 31, 2018; transfers received after December 31, 2018 but before May 1, 2019 will receive cash back on the week of July 1, 2019. CIBC Investor’s Edge Cash Back Promo March 24, 2019
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2018
BMO InvestorLine Open a new account or fund an existing account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $300,000 or D) $500,000+ and you may be eligible to receive a cash back reward of up to A) $75; B) $200; C) $500 or D) $1000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $50,000 B) $100,000 C) $300,000 D) $500,000+ A) $75 B) $200 C) $500 D) $1000 Cash back will be deposited the week of April 15, 2019. BMO InvestorLine Summer 2018 Campaign September 30, 2018

Expired Offers
Last Updated: Sep. 24, 2018 22:00 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
If you (an existing Qtrade Investor client) refer a new client to Qtrade Investor and they open an account with at least $1,000 the referrer and the referee may both be eligible to receive $25 cash. See terms and conditions for full details. $1,000 $25 cash back (for both referrer and referee) Cash deposited at the end of the month in which referee’s account funded Refer A Friend to Qtrade Investor none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $5,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $5,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period (subject to conditions). BMO InvestorLine Refer-a-Friend January 2, 2019

Expired Offers
Last Updated: Sep. 5, 2018 09:30 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $15,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details. $150 $15,000 Transfer Fee Rebate none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees. $135 $15,000 Transfer Fee Rebate Details none
Transfer $20,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees. $135 $20,000 Transfer Fee Rebate none
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 into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made. $135 $25,000 Confirmed with reps. Contact client service for more information (1-800-567-3343). none
Disnat 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 DisnatTransfer. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo October 31, 2018
BMO InvestorLine Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, by transferring in at least $200,000+ in net new assets and you may be eligible to have transfer fees covered up to $200. Use promo code SPARXCASH when signing up. Be sure to read the terms and conditions for more details on the offer. $200 $200,000 BMO InvestorLine Summer 2018 Campaign September 3, 2018

Expired Offers
Last Updated: Sep. 21, 2018 1:15 PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
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: Sep. 1, 2018 12:15 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 September 30, 2018 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Sep. 11, 2018 09:05 PT
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Discount Brokerage Weekly Roundup – August 31, 2018

If there’s one thing that markets are built for, it’s speculation. Whether or not NAFTA negotiations turn in Canada’s favour or against, the reality is that nobody on either side of the negotiating table is standing still and neither are their respective markets. As the gatekeepers to being able to invest in all of the speculative fervor, online brokerages on either side of the border are showing that they too need to keep moving, and fast, to keep up with the pace of change.

Oftentimes it’s a bigger development that makes the cut for the weekly roundup, however this week there is something interesting afoot, specifically lots of little things. The big story this week seems to be that there are lots of little stories – incremental movements – that appear to indicate online brokerages are positioning for a very busy and eventful final stretch to 2018. There’s quite a bit to unpack, so let’s dive in.

Getting in Some Downtime

One of the biggest stories we’ve been tracking in 2018 is the merger between rivals Qtrade Investor and Credential Direct. While there have been a few signals across the year that this change was coming, there has been a firm deadline telegraphed as to when that official cutover date will be. Specifically, a bulletin posted on the Canadian Securities Exchange website on August 29th indicates that Qtrade Securities Inc. will cease its status as a dealer effective September 7th and a new entity, Credential Qtrade Securities Inc. will commence under the broker code, wait for it, 088.

Of course, another interesting sign that things are publicly moving forward is that both the Qtrade Investor website and the Credential Direct website displayed messages that their sites are unavailable over the Labour Day long weekend. So, while lots of folks might be out enjoying the festivities of a long weekend, there’s no doubt that technical teams and executives at the new parent firm Aviso Wealth will be having a long weekend of sorts ensuring that the transition of systems goes smoothly.

A Close Call

Determining which online brokerage is best is incredibly challenging at the best of times, however with ultra-competitive pricing, loads of features and ever-improving user experience, the differences between discount brokerages aren’t nearly so clear anymore. This past week, US online brokerages were put under the microscope by Kiplinger, which released their latest US online brokerage rankings for 2018.

While TD Ameritrade came out on top, the rankings indicate just how close the top four US online brokerages were to each other, a point which seems to validate the observation about how competitive firms have become. What was very interesting to note, however, is that the bulk of what contributed to the top firms’ scores was not commission pricing. In fact, of all of the categories investigated, commissions and fees was the weakest category among TD Ameritrade, Charles Schwab, Fidelity and E*Trade. Perhaps that bodes well for online brokerages in the looming fee battle.

It was also interesting to note how small the field of online brokerages ranked was relative to the possible options out there. The notable absences of Robinhood or Interactive Brokers could have been interesting to stack up against other brokers especially in the user experience (UX) and pricing categories respectively. It might have also highlighted the fact that while pricing and even UX are big draws for firms like Robinhood, features like tools or advisory service are places where well-established online brokers have a leg up.

Finally, another interesting tidbit from this article was the mention that lesser-well-known US online brokerage Firsttrade has also dropped their commission fees for trading ETFs and stocks down to zero, a move that comes on the heels of JP Morgan’s announcement last week.

Commission-free is the Place to Be

As a segue from the move by Firsttrade mentioned above, there is clearly a shift taking place in the online brokerage industry as a result of a massive announcement by JP Morgan launching zero commission trading via their You Invest platform.

A recent article in Investment Executive which featured comments made by credit rating agency Moody’s, reiterated what many observers of the online brokerage industry also believe, that the impact of reducing commissions is going to have a material impact on the revenues of some online brokers more than others. Also, not everyone is sold on the value of commission-free trading for DIY investors either as this piece from CNBC highlights.

Taking the example of what may transpire in the US, it is not that hard to envision similar concerns for Canadian online brokerages who will be put to the test to see how much lower their commissions and cost structure can go before they tap out of the DIY investing space altogether.

On a side note, Robinhood online brokerage announced this week that they will be offering commission-free trading access to 250 global stocks via trading in American Depository Receipts (ADRs). Select firms such as Nintendo, Adidas, BMW and even Canadian firms will now be available.

 

We will continue to keep a close eye on what’s unfolding in the commission-free trading space. Until this approach to online investing becomes the norm, there’s a good chance it’s going to occupy the spotlight and entice investors to kick the tires on trading commission-free. For a quick catchup, since we reported on the Wealthsimple Trade announcement, we’ve seen the number of folks in the waiting list climb to almost 60 thousand, which for many Canadian online brokerages, represents a lot of existing clients interested in trying out the competition. Stay tuned.

Options trading updates and pricing at CIBC Investor’s Edge

Options trading recently got a little easier at CIBC Investor’s Edge. Clients of Investor’s Edge can now trade options via CIBC’s Mobile Wealth app, with the functionality of options trading available on the full site.

Pricing for options trading continues to remain the same at $6.95 + $1.25 per option contract at the standard price while active traders (>150 trades per quarter) can expect to pay $4.95 + $1.25 per option contract. Interestingly, we noted that the Globe and Mail’s Rob Carrick reported that there may be a lower standard commission pricing of $5.95 per trade coming this fall as part of a promotional offer.

Taken together, the latest moves by CIBC Investor’s Edge are, like many other brokerages, signaling that accessibility to trading platforms and better pricing might offset the costs of staying competitive by enabling trades to be researched and executed more conveniently.

Discount Brokerage Tweets of the Week

From the Forums

The Great Debate

Bank owned brokerage or non-bank-owned brokerage – when it comes to DIY investing and putting your hard-earned investment dollars to work somewhere, the question of where still generates heated discussion. In this thread from Canadian Money Forum, the debate over whether to transition out of Questrade and where to go generated a lot of interesting perspective.

Returns to Sender

Leaving money on the table is a perennial curiousity for many investors. One new investor in this reddit thread wondered whether their investment gains could have been better off/could be better off with a lower fee provider. There’s some interesting math as well as a few noteworthy mentions of providers who cater to less active investors.

Into the Close

There were a lot of investors closing out the week on a high note (thanks to the spike in activity for cannabis stocks). Now that the long weekend has officially arrived, hopefully there’s a chance to kick back and enjoy the last few days of summer. Whether you’re out picking summer fruits, fantasy football picks or moving over servers and websites for DIY investors, have a safe and enjoyable long weekend!

 

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Discount Brokerage Weekly Roundup – August 17, 2018


When it rains, it pours. Amirite Toronto? And, for many of Canada’s online brokerages located in Toronto and across the country, the commission party just got rained on. Hard.

In this edition of the roundup we take a look at some earthshattering developments in the Canadian discount brokerage space, as a robo-advisor flips the script to start offering commission-free online trading. Though it’s a hard act to follow, from there we’ll highlight a new promotion from an online brokerage that crossed our radar this week and as always, we’ll cap off the roundup with lots of chatter on social media and in the forums from DIY investors.

Wealthsimple Trade launches commission-free online trading

This week, and likely for weeks and months to come, the big story in the Canadian discount brokerage space is that robo-advisor Wealthsimple has now entered the DIY investing space by announcing they’ll be offering up a self-directed online trading service called Wealthsimple Trade which offers zero-commission fees for trades.

Make no mistake, this is a massive step change in an industry that has been making incremental moves to improve, evolve and adapt over the past several years.

Ever since early 2014, when RBC Direct Investing dropped its standard commission fee down to $9.95 per trade and triggered a wave of competitors to do the same, the major players in the online brokerage space in Canada have been in a staring contest to see who would blink first at lowering commission fees.

Since then, there has been the occasional flare up that commission pricing would continue to decline.

CIBC Investor’s Edge, for example, lowered their standard commission fees under $7 to $6.95 in October 2014 and, as recently as late 2017, HSBC InvestDirect lowered their standard commission fee to $6.88 per trade flat. Remarkably, there are those that have stood their ground against lowering standard commissions. Scotia iTRADE, for example, has been defiantly hanging onto standard commission pricing at $24.99 (or more) per trade.

Of course, while Canadian online brokerages were cautiously circling one another, the seeds for zero-commission trading were being sown and nurtured by startup US online brokerage, Robinhood.

In 2013 Robinhood shot to fame for introducing commission-free trading and doing so in a mobile-first environment. It was in that moment that the seeds were sown for much lower commission prices to cross the border. In fact, as Robinhood announced global expansion part of its strategy in 2015, the flicker of hope for younger, cost-conscious and design-savvy investors has been that Robinhood – or something like it –  would come to Canada.

Even though zero-commission trading for standard commission fees still hadn’t surfaced here in Canada, a few Canadian online brokerages have been toying with the idea of zero commission trading for some time.

National Bank Direct Brokerage, for example, launched commission-free ETF trading as a standard option after a few rounds of testing as far back as 2013 as part of a limited time promotion. Virtual Brokers introduced the commission-free trade program in early 2016 but in this case, individuals had to be tied to a costly data platform plan. There have also been finite sets of commission-free ETFs at several brokerages including Qtrade Investor, Virtual Brokers and Scotia iTRADE that DIY investors could turn to.

So, while there might have been drawing boards and hypothetical scenarios about who would lower commissions to zero and when it would happen, it’s safe to say that nobody really saw it coming from Wealthsimple and this quickly. The challenge to Canadian online brokerages, however, goes beyond just zero-commission trading and the instant attention it garners.

With what looks to be a streamlined trading interface, a mobile-first design and adoption strategy and some very savvy marketing (demonstrated to work from Robinhood’s launch) it’s no surprise that, as of the time of publication of this roundup, there are over 35K users on a waiting list to get access to an account and many actively promoting this new feature to get bumped to the front of the wait-list.

screenshot from Wealthsimple Trade waitlist

The specific initial offer from Wealthsimple Trade looks to include a subset of features which will undoubtedly appeal to somewhat less active investors. According to Wealthsimple, included at the launch of the new platform are:

  • Unlimited commission-free trades
  • No account minimums
  • Over 8,000 Canadian and U.S. stocks and ETFs available to trade
  • Up to $1,000 available to trade right away
  • Instant execution of trades
  • Watchlist feature to monitor stocks without buying
  • Market and limit orders
  • Availability on iOS and Android
  • Personal (cash) accounts

For Canadian online brokerages to effectively compete with Wealthsimple, not only do they have to be able to do so on pricing, but they have to do so on user experience, design, ease of use, engagement and technical agility. Consider the following statement from Wealthsimple’s official press release:

“Wealthsimple Trade was built in eight weeks by a small team of Wealthsimple designers and developers, using Wealthsimple’s public API.”

Depending on how much of Wealthsimple Trade was built in this unbelievably short period, the pace of pulling together this product was astonishingly fast.

There is also one other, potentially more potent factor that Canadian brokerages have to contend with.

Whether or not they saw the writing on the wall, whether or not they have been mobilizing to compete on a product or service level, what Canadian online brokerages must now contend with is a financial services provider that people are excited and curious about.

And, for those skeptics who aren’t buying into the “fintech” hype, here’s a fact that perhaps puts this into perspective.

Several of Canada’s largest banks are decades if not well-over one hundred years old. Individually, one of the biggest selling features, the one they could ‘bank’ on is that they’ve lasted. That kind of stability has been the hallmark of a sales pitch and why so many investors trust banks with their money.

Even so, Wealthsimple, a company that started just over four years ago has now earned over 100K accounts (and has close to 40K folks waiting to become customers) and manages $2.5B in wealth. Let that sink in for a moment. People are trusting a digital, four-year-old company with their life savings and banking on them being around to handle their future wealth needs.

Of course, in spite of the excitement that the prospect of zero-commission trading brings, the biggest test – and perhaps opportunity for Canada’s online brokerages – is to see if Wealthsimple Trade lives up to the hype.

It’s one thing to pitch a “hands off” kind of investing experience and to get it right but DIY investors are very much “hands on” clients. Their needs are often more complicated than the set it and forget it crowd. They tend to want to see how a trade is doing, obsessively so, and as a result connectivity will be huge. Also, charting, research and filtering tools are going to play a significant role for investors who are genuinely interested in following companies or investment themes they’re passionate about and helping them discover opportunities. So, despite a zero-commission trade, DIY investors have to be mindful – and perhaps skeptical – that the platform and trading experience holds up under various market conditions. There is also the convenience factor, inertia and the fact that the incumbents are well-resourced and will not simply take the introduction of a new competitor lying down.

Without question, this week marks a major milestone in the story of DIY investing in Canada. After multiple attempts by online brokerages to launch their own digital advice (robo-advisor) services, it looks like Wealthsimple has swung the pendulum back like a wrecking ball.

Although the app is still in beta and will be rolled out in such a way to build as much buzz, the prospect of zero-commission trading is real and coming. With Wealthsimple’s announcement, DIY investors are curious, and will no doubt wonder what Wealthsimple has in store next.

For Canada’s online brokerages, however, it is pretty clear on what has to happen next.

HSBC InvestDirect Summer Promotion

For this week’s roundup, coming after the Wealthsimple story is a hard act to follow, however several online brokerages are going to have to get used to doing it.

This week, the discount brokerage deals and promotions activity heated up with an unlikely player pushing their summer promotion live to their website. HSBC InvestDirect’s summer promotion crossed our radar this week and it offers new customers the chance to get up to 30 commission-free trades which are good for up to 60 days. Unlike many other online brokerage promotions, there is no minimum deposit to qualify for this deal, so individual investors looking for a bank-owned online brokerage with low commission fees will find a little more incentive here to consider HSBC InvestDirect. The promotion, whose official start date was July 16th, is set to run until September 28th, 2018.  Check out the discount brokerage deals and promotions section for more details.

Discount Brokerage Tweets of the Week

From the Forums

Everyone’s Talking about Wealthsimple Trade

This week across various forums, Wealthsimple Trade was in spotlight. With DIY investors weighing in on the merits, drawbacks and what this new service could mean to DIY investing and online brokerages in Canada, it’s entertaining reading for anyone watching this new entrant into the online brokerage space make a very big splash. Here are a few forum threads with opinions and perspectives on the Wealthsimple Trade launch:

Reddit Personal Finance Canada – Wealthsimple Trade – $0 commission trading

RedFlagDeals.com – WealthSimple Trade with $0 min and $0 commission (Early Access)

Financial Wisdom Forum – Wealthsimple Trade

Canadian Money Forum  – Wealthsimple 0 fee trading

Into the Close

Hard to believe but that’s a wrap on another wild week. Even the volatile weather seemed tame compared to politics in the headlines and the fact that Canadian inflation rate was reported at 3%. If you’re fortunate to be out and about enjoying the sunshine or just trying to stay dry this weekend, enjoy what downtime you can – there’s plenty of news to trade around and even more volatility forecasted for the weather, and for markets. Have a great weekend!