Tag: Qtrade Investor

Posted on by — 2 Comments

Discount Brokerage Deals and Promotions – July 2015

Summer is a great time for taking vacations, staycations and generally taking it easy. While Canadian discount brokerages are keeping busy behind the scenes, heading into July it looks as though most of them have given the deals and promotions a break to cool off.

At the start of this month there are 14 offers currently available from seven different brokerages. Of those, nearly half (43%) come from Questrade, signaling once again that Questrade is the discount brokerage offering the most deals or incentives of the field.

With some rather prominent discount brokerages on the sidelines, it will be interesting to observe just how much traction brokerages like Questrade may gather in the summer simply because the field is less crowded. If history is any indicator, however, they won’t be left unchallenged for too long and the field may ramp up rather quickly once this holiday-shortened first week has passed.

Expired Deals

Several noteworthy deals came to an end in June. Among the most interesting was Virtual Brokers’ 25 free trade offer. Questrade launched a 25 trade offer of their own however with Virtual Brokers electing to not renew this particular deal, there is a definite gap in the segment of offers that allow clients ample time to use them. Another interesting observation was that BMO InvestorLine decided to let their ‘Five Star’ promotion come to an end. For the moment, this means that BMO InvestorLine is not currently advertising an offer geared towards large deposit accounts. Finally, Scotia iTrade and Questrade both had offers that expired in June.

Extended Deals

With so many deals scheduled to expire at the end of June, there were bound to be some extensions granted. In this month’s case, there were 3 offers that had their deadlines extended. First on deck, BMO InvestorLine extended their youth promotion (this go around naming it “phase II”) until the end of August. Next Desjardins Online Brokerage bumped the expiry date of their $500 commission rebate offer until the end of September as did Scotia iTrade with their refer-a-friend promotion.

New Deals

Late last month, Questrade launched a cleverly worded promotion that gives clients 25 commission-free trades which are good through the end of 2015. This deal requires a deposit of at least $25,000 in order to be eligible for the commission-free trades. See table below for more details.

As always if there are any offers that we may have missed or that you would like to share, feel free to drop us a note directly or to post in the community section for deals & promos.

Discount Brokerage Deals

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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO InvestorLine, they may be eligible to receive 35 commission-free trades, an eBook on investing, $50 cash back and potentially waived account minimum fees. Use promo code “YOUNG” when signing up. Be sure to read the terms and conditions for more details on the offer. A) for commission free trades: n/a B) for cash back: $25,000 A) 35 commission-free trades B) $50 cash back + 35 commission-free trades 90 days Youth Promotion August 31, 2015
Open a new account with HSBC InvestDirect and you may be eligible to receive up to 30 equity trades (North American listed equities only) commission free. Only trades placed within the first 60 days of account opening will be eligible. Be sure to read the terms and conditions for full details on this offer. n/a 30 commission-free trades (commission will be rebated within 90 days after 60 day trading period) 60 days HSBC InvestDirect Summer Promotion Terms & Conditions August 31, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions; Code Number: 476104302388759 none
Open and fund a new account at Questrade with at least A)$1,000, B)$25,000 or C)$50,000+ and you could be eligible to receive either A)1 month, B) 2 months or C)3 months of commission-free trading. Use offer code UNLIMITED2015 when opening an application to qualify. Be sure to read full terms and conditions on this offer. A)$1,000 B)$25,000 C)$50,000 A) 1 month commission-free trading B) 2 months commission-free trading C) 3 months commission-free trading (*note trading commissions will be rebated within 10 business days of trade execution) A) 1 month B) 2 months C) 3 months Unlimited Trading Promotion August 31, 2015
Open and fund a new account at Questrade with at least $5,000 and complete at least one commission-generating trade and you may be eligible to receive a $50 gift certificate from Amazon. Use promo code AMAZON2015 when signing up to qualify. Be sure to read the terms and conditions associated with this offer. $5,000 $50 Amazon gift certificate Gift certificate emailed within 30 days of eligibility requirements being met. Amazon gift certificate promotion July 30, 2015
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 September 30, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999; B) $50,000 -$99,999; C)$100,000 – $249,999; D)$250,000 – $499,999; E) $500,000 – $999,999 or F)$1,000,000+ you may be eligible to receive a corresponding cash back or commission rebate. For commission-free trades use code: THSP15 or for cash rebates use code: RNYDMN. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. Contact Scotia iTRADE for full details on this offer. A) $15,000 – $49,999 B) $50,000 -$99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+ A) 50 commission-free trades OR $50 cash back B) 100 commission-free trades OR $100 cash back C) 250 commission free trades OR $250 cash back + KeeneOnTheMarket Subscription D) 350 commission-free trades OR $350 cash back + KeeneOnTheMarket Subscription E) 500 commission-free trades OR $500 cash back + KeeneOnTheMarket Subscription F) 1000 commission-free trades OR $1,000 cash back + KeeneOnTheMarket Subscription 120 days for commission-free trades Cash back to be deposited by February 13, 2016. $1000 or 1000 free trade offer September 13, 2015
Open and fund a new registered or margin online trading account with Questrade with a deposit of at least $25,000 and you may be eligible to receive up to 25 commission free trades. Use promo code “TRADEFREE15” when signing up. Be sure to read full terms and conditions. $25,000 25 commission-free trades Trades good for use until December 31, 2015. Canada Day Campaign July 31, 2015
Disnat Disnat is offering new & existing clients $500 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $50,000 $500 commission credit 6 months Disnat $500 Commission Credit Promo September 30, 2015
National Bank Direct Brokerage is offering either A) a 16GB iPad Mini or B) $300 cash back to new clients who sign up for the InvestCube service and deposit at least $50,000. Use either promo code “Mini2015” for the iPad or “Cash2015” when signing up to be eligible for this offer. Be sure to read the terms and conditions of this promotion carefully. $50,000 A) iPad Mini (16GB) B) $300 cash back Within 45 days of the eligibility date either A) the order for the tablet will be processed or B) cash back will be credited to the account. InvestCube Tablet or Cash Back Promotion August 31, 2015
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,999 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). BMO InvestorLine Refer-a-Friend October 30, 2015
Open a new account (registered, margin, or FX & CFD) with at least $100,000 in new assets and execute at least one commission-generating trade and you may be eligible to receive an Apple Gift Card worth $500.00. Use promo code APPLEWATCH2015 when registering. Be sure to read the full terms and conditions on this offer. $100,000 $500 Apple Store gift card Apple Store gift card will be emailed within 30 days of eligibility requirements being met. Apple Gift Card Promo August 31, 2015
Last Updated: July 1, 2015 15:15 PT

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Scotia iTrade Transfer $15,000 or more to Scotia iTrade from another Canadian brokerage, and iTrade may pay up to $150 in transfer fees. $150 $15,000 1000 Free Trade or $1000 Cash Back Offer September 13, 2015
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $10,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $150 $25,000 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 $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 info (1-800-567-3343) none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $150 $50,000 Disnat $500 Commission Credit Promo September 30, 2015
Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – June 19, 2015

As June quickly draws to an end, there is something that a lot of the little kids out there may be celebrating or dreading. No, it’s definitely not dinosaurs nor is it Donald Trump announcing his candidacy for US President. Nope, if there’s something that discount brokerages and students can commiserate about at this time of year it is getting report cards.

In this week’s roundup we take a look at some the interesting moves being made by two online brokerages in separate social media spaces. Following that we take a look at a recent report card on mobile trading platforms that was less than flattering for almost all Canadian discount brokerages. Of course, with all the fun that summer entails, we close out the roundup with a quick spin through the upcoming investor education events, discount brokerage tweets of the week (there are some interesting ones in there) and of course the forum chatter. Oh and a cute animal video just for kicks at the end.

The Missing Link

Over the past several weeks, we’ve been tracking some of the interesting developments of brokerages on social media. This past week, social media was again on the radar with two discount brokerages making some important moves on LinkedIn and YouTube respectively.

Earlier in the week, Scotia iTrade announced on LinkedIn that they are winding down their company page on July 6, 2015 and instead publishing company updates and content on their showcase page.

Screenshot from Scotia iTrade LinkedIn page.

For most self-directed investors, there will likely be no noticeable difference between the two however, for Scotia iTrade, the switch may be a lot more noticeable.

With three weeks to go before they switch over, the difference in follower count between the two different pages is almost ten-fold. Scotia iTrade’s soon to be shuttered company page has amassed 1767 followers (at the time of writing) whereas their new showcase page has 143. As a financial services provider, building a community of followers online, especially on social media, is no easy feat.

There are several active competitors on LinkedIn which each have similar content strategies. BMO Wealth Management, Credential, National Bank Direct Brokerage, Qtrade Financial and Questrade are also actively producing and sharing investor focused content. As in the ‘real world’ the social media space is a lot more crowded than it was just a few years ago.

I Screen, You Screen

The other online brokerage ramping up production of investor-focused content is Qtrade Investor. Just this week they officially launched a YouTube account and published their first video – an investor education piece on ‘how to diversify your portfolio beyond Canada.’

While Qtrade Investor is not the only discount brokerage to have a YouTube channel (see table below), their choice to focus on investor education out of the gate is an interesting one. Typically, other online brokerages have been using YouTube to share information about their services, post commercials and a few have actually provided education-only videos.

As with other social media sites, the table below shows that Questrade is out in front by a wide margin on YouTube. They have been on the medium longer, have a larger subscriber base and have more views that the other brokerages combined. That said, they have also produced and released more videos than their peers.

One of the most interesting observations for the data shown in the table is that for the amount of time and resources spent, there aren’t a lot of folks eagerly waiting and watching to see what a brokerage puts out next. And that’s basically the challenge confronting most brokerages when it comes to building content. Most discount brokerages, and financial services providers, are much better at focusing on providing brokerage services than they are at consistently producing content that investors are drawn to.

While Qtrade Investor is likely not the last to step into the social media pool, especially on YouTube, the challenge in front of them will to be to keep things fresh, frequent and most importantly, interesting.

Select Canadian Online Brokerages on YouTube
Brokerage Subscribers Total Views Year Joined # Videos
Questrade 2788 1140720 2007 150+
Scotia iTrade 312 61594 2010 39
Qtrade 2 14 2015 1
Virtual Brokers 70 40518 2010 24

A Platform for Change

This past week BMO InvestorLine’s mobile (i.e. tablet and smartphone) platforms were recognized by financial service rating firm Surviscor as being ‘the best’ amongst the Canadian discount brokerages.

As this was the first year this analysis was performed, it was interesting to note just how far apart first place was from everybody else.

BMO InvestorLine scored a 91% on the ranking whereas 2nd place Scotia iTrade was given a 57%. The company that fared the worst in this ranking was National Bank Direct Brokerage which Surviscor rated at 14%. In fact, the average score for the 11 discount brokerages measured worked out to 42% with a standard deviation of about 22%. For the stats keeners, there’s definitely something strange in the mobile trading neighbourhood.

Surviscor Canadian Discount Brokerage Mobile Trading Ratings
Brokerage iPhone iPad Android SmartPhone Android Tablet BlackBerry Touchscreen Score Rank
BMO InvestorLine B+ A B+ B+ B+ 91% 1
Scotia iTrade C+ B- C+ C+ C+ 57% 2
Questrade C+ C+ C+ B- C+ 54% 3
RBC Direct Investing C+ C+ C+ C+ C+ 51% 4
Qtrade Investor B- C+ B- D B- 49% 5
TD Direct Investing C+ C C C+ C 43% 6
CIBC Investor’s Edge C C C C C 33% 7
Credential Direct B- N/A C+ N/A C+ 25% 8
Virtual Brokers C- C- C- C- C- 25% 8
Desjardins Online Brokerage C+ D- C+ D C+ 21% 10
National Bank Direct Brokerage C D- C D C 14% 11
source: Surviscor

As we’ve mentioned on several occasions with all brokerage rankings and ratings, the importance of understanding what is being measured and the method by which it is measured is key to really understanding what these numbers mean.

In the case of these latest rankings & ratings, it is the presence or absence of certain features and functionality on smartphones and tablets. Exactly what those features were was not elaborated on in the press release or Surviscor site, however, the following “categories” were assessed:

  • Getting Connected
  • Application Design
  • Customer Support
  • Market Intelligence
  • Mobile Transactions
  • Mobile Resources

According to the figures presented, BMO InvestorLine’s app is somewhat of a black swan in the pond of other mobile trading apps. An alternative interpretation would be that there’s something particular about the test construction that is rendering these results. In fact, it may be a combination of the two.

BMO InvestorLine may have a feature-rich app, however individual investors may not consider having all of the features important – especially if the app becomes an intensive user of device resources (i.e. battery life). Surviscor’s assessment, on the other hand, bases the scoring of the mobile experience in large part on what’s available on a brokerage’s full website. As such, some brokerages may be designing their mobile experience to be intentionally different than the full web experience which would, in turn, help account for some of the differences observed between the mobile and desktop website.

In reality, some discount brokerages and DIY investors may believe there are certain features that are better suited to bigger screens. There is only so much filtering, charting or technical analysis one can effectively do with ones thumbs or with swiping. Thus, a distinction should be made between having a feature (which is a yes or no question) and having it work effectively (which is matter of degree).

While it is undeniable that many DIY investors are embracing the ability to stay on top of their investments ‘on the go’ or simply without having to power up a laptop or desktop, exactly what makes for a quality mobile experience, especially for DIY investors, is still a moving target.

Given how fast the definition and technologies associated with “mobile” are changing, it will likely be the responsiveness of brokerages’ IT departments as well as their websites or apps that determines who will lead the pack.

Event Horizon

June 23

Scotia iTRADE – Introduction to Bonds with Scotia McLeod

TD Direct Investing – Understanding Margin & Short Selling

TD Direct Investing – Generating Income in a Low Rate Environment

June 24

Scotia iTRADE – Options Fundamentals with Montreal Exchange

June 25

TD Direct Investing – Introduction to Technical Analysis

#DiscountBrokerage Tweets of the Week

The chatter about and to discount brokerages on Twitter this week featured BMO InvestorLine, Questrade, RBC Direct Investing, Scotia iTrade and brief mention of TD Direct Investing.

From the Forums

Taking an Interest in GICs

With talks of interest rates rising on the horizon, it will be ‘interesting’ to see if/when more folks start asking about GICs. In this post from RedFlagDeals’ forum, one user wants to find out whether a big bank-owned online brokerage or independent brokerage offers direct access.

For Better or Worse

Now that summer is here, RRSP season may be in the rear view mirror but for a lot of folks it also happens to be ‘wedding season’. In this post, from Canadian Money Forum, spousal RRSP contributions are the focal point at one bank-owned online brokerage.

Into the Close

That’s a wrap for this week’s roundup. For all the dads out there, here’s to a very happy Father’s day filled with tools, ties, socks and stocks! (ok maybe not that last one). Have a great weekend – although perhaps not as great as this little rascal.

Posted on by — Leave a comment

Discount Brokerage Deals and Promotions – June 2015

*Updated June 16*

With summer now just around the corner, June should prove to be an interesting month for discount brokerage deals and promotions.

On the one hand there has been a pullback in the number of deals as we head into the summer, however the same core group of discount brokerages continue to run active promotions. In particular, BMO InvestorLine, Questrade and Scotia iTrade each have multiple offers, with Questrade aggressively putting forward 6 of the 15 offers at the outset of June.

What is interesting to observe is that 50% of the current offers are timed to expire at the end of June. This signals that DIY investors can expect some deal turnover to happen through and towards the end of this month.

Another interesting observation is that the latest offers from Questrade and Scotia iTrade have deadline dates well into the end of August or mid-September.

We’ll definitely be monitoring June closely to see what’s going to unfold.

Expired Deals

There were five noteworthy discount brokerage deals that expired at the end of May. In particular there were three concurrent offers from Scotia iTrade that consisted of cash back and/or free trades that expired and were replaced by the deal referenced below.

Questrade also saw their $250 prepaid Visa offer expire as well as one of their 100 free trade offers.

Extended Deals

Not wanting to be excluded from the deal pack, Virtual Brokers extended the deadline for their “25 commission-free trade for a year” from the end of May through to the end of June.

New Deals

*Updated June 16:

After taking a bit of a break, National Bank Direct Brokerage has stepped back into the deals & promotion pool with a new offer linked to their ‘InvestCube’ service. Until August 31st, NBDB is offering up either a 16gb iPad Mini (estimated value $329 CAD) or $300 cash back for a minimum deposit of $50,000 into a new InvestCube account. See table below for additional details.*

*Updated June 3:

There are sometimes in life when a Ron Burgundy quote seems entirely appropriate. In this case, it’s that things ‘escalated quickly’ with regards to deals and promotions at discount brokerages in June. Although it was quiet to start off June, barely 3 days into the month there are two new offers that have launched.

The first is from a very unlikely candidate – HSBC InvestDirect, who has kicked off the summer with a commission-free trading promotion. This offer is for 30 commission free trades that are good for use within 60 days. Check out the table below for full details.

The second offer is yet another promotion being launched by Questrade. In their latest promo, Questrade has revived the Amazon gift certificate deal although this time it is aimed at smaller depositors than their previous one. Questrade is now offering a $50 Amazon gift certificate for deposits of at least $5,000. More details below.*

In keeping with their ongoing strategy of offering up multiple promotions, Questrade launched a smart(watch) offer in May and has resurrected another headline grabbing deal for June.

Midway through May, Questrade made a timely decision to capitalize on the interest in the Apple Watch by launching a promotion with the smartwatch as a theme.

Digging into the fine print, the offer was actually for a $500 Apple Store gift card for deposits of at least $100,000. While it is technically just enough to land the base model of the Apple Watch, the $500 Gift Card offer is still a pretty substantial offering for the $100,000 deposit.

There were more than a handful of tweets and forum posts that highlighted that Questrade has their fingers on the pulse of what their key demographic of clients is hungry for.

In addition to their new shiny promotion, starting this month Questrade is bringing back their “3 month unlimited trading” offer. Specifically, this promotion offers individuals one, two or three months of unlimited commission-free trading based on deposits of at least $1,000; $25,000 or $50,000. As a note, commissions are charged at the time of trading and then reimbursed within 10 business days. See table below for more details.

Finally, Questrade has recently changed their refer-a-friend offer away from commission credits and replacing it with a substantially lower cash back offering. We’ve updated the table below with the new referral code info. For individuals interested in using this promotion, be sure to read the terms and conditions as there are requirements for minimum balance amounts to held for minimum periods of time.

Discount Brokerage Deals

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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO InvestorLine, they may be eligible to receive 35 commission-free trades, an eBook on investing, $50 cash back and potentially waived account minimum fees. Use promo code “YOUNG” when signing up. Be sure to read the terms and conditions for more details on the offer. A) for commission free trades: n/a B) for cash back: $25,000 A) 35 commission-free trades B) $50 cash back + 35 commission-free trades 90 days Youth Promotion June 30, 2015
Open a new account with HSBC InvestDirect and you may be eligible to receive up to 30 equity trades (North American listed equities only) commission free. Only trades placed within the first 60 days of account opening will be eligible. Be sure to read the terms and conditions for full details on this offer. n/a 30 commission-free trades (commission will be rebated within 90 days after 60 day trading period) 60 days HSBC InvestDirect Summer Promotion Terms & Conditions August 31, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions; Code Number: 476104302388759 none
Open a new account (margin or registered account) with Questrade and deposit at least A)$1,000 or B)$10,000 and you may be eligible to receive A)10 commission-free trades or B)100 commission-free trades. Use promo code 100FREEML15Q3 when registering. Be sure to read the full terms and conditions for this offer. A)$1,000 B)$10,000 A) 10 commission-free trades B) 100 commission-free trades 60 days 100 free trades/multileg offer June 30, 2015
Open and fund a new account at Questrade with at least A)$1,000, B)$25,000 or C)$50,000+ and you could be eligible to receive either A)1 month, B) 2 months or C)3 months of commission-free trading. Use offer code UNLIMITED2015 when opening an application to qualify. Be sure to read full terms and conditions on this offer. A)$1,000 B)$25,000 C)$50,000 A) 1 month commission-free trading B) 2 months commission-free trading C) 3 months commission-free trading (*note trading commissions will be rebated within 10 business days of trade execution) A) 1 month B) 2 months C) 3 months Unlimited Trading Promotion August 31, 2015
Open and fund a new account at Questrade with at least $5,000 and complete at least one commission-generating trade and you may be eligible to receive a $50 gift certificate from Amazon. Use promo code AMAZON2015 when signing up to qualify. Be sure to read the terms and conditions associated with this offer. $5,000 $50 Amazon gift certificate Gift certificate emailed within 30 days of eligibility requirements being met. Amazon gift certificate promotion July 30, 2015
Open a new account with Questrade and deposit at least A)$5,000 or B)$25,000 and you may be eligible to receive A)$50 cash back or B) $75 cash back. At least one commission-generating trade must be executed in order for cash back to apply. Use code TFSA2015 when registering to qualify. Be sure to read the full terms and conditions for this offer. A)$5,000 B)$25,000 A)$50 B)$75 Cash rebates applied within 60 days of funding eligibility and trade execution confirmation. 100 free trades offer June 30, 2015
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 June 30, 2015
Open and fund a new account at Virtual Brokers with at least $15,000 and you could be eligible to receive up to 25 commission-free stock or ETF trades good for use for up to one year. Use promo code “TRYUS2015” when signing up to qualify. Be sure to read full terms and conditions carefully. $15,000 25 commission-free trades 365 days Free trades for one year promotion June 30, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999; B) $50,000 -$99,999; C)$100,000 – $249,999; D)$250,000 – $499,999; E) $500,000 – $999,999 or F)$1,000,000+ you may be eligible to receive a corresponding cash back or commission rebate. For commission-free trades use code: THSP15 or for cash rebates use code: RNYDMN. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. Contact Scotia iTRADE for full details on this offer. A) $15,000 – $49,999 B) $50,000 -$99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+ A) 50 commission-free trades OR $50 cash back B) 100 commission-free trades OR $100 cash back C) 250 commission free trades OR $250 cash back + KeeneOnTheMarket Subscription D) 350 commission-free trades OR $350 cash back + KeeneOnTheMarket Subscription E) 500 commission-free trades OR $500 cash back + KeeneOnTheMarket Subscription F) 1000 commission-free trades OR $1,000 cash back + KeeneOnTheMarket Subscription 120 days for commission-free trades Cash back to be deposited by February 13, 2016. $1000 or 1000 free trade offer September 13, 2015
Scotia iTrade Open a new Scotia iTRADE account with at least $15,000 by June 30, 2015 and you could be eligible to receive up to 100 online trades commission-free (equities, options, ETFs). Use promo code HUN-SP when registering to qualify. Be sure to carefully read full terms and conditions. $15,000 100 commission-free trades (+ free trial of FightDesk platform for 60 days) 60 days 100 Free Trades Offer June 30, 2015
Disnat Disnat is offering new & existing clients $500 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $50,000 $500 commission credit 6 months Disnat $500 Commission Credit Promo June 30, 2015
National Bank Direct Brokerage is offering either A) a 16GB iPad Mini or B) $300 cash back to new clients who sign up for the InvestCube service and deposit at least $50,000. Use either promo code “Mini2015” for the iPad or “Cash2015” when signing up to be eligible for this offer. Be sure to read the terms and conditions of this promotion carefully. $50,000 A) iPad Mini (16GB) B) $300 cash back Within 45 days of the eligibility date either A) the order for the tablet will be processed or B) cash back will be credited to the account. InvestCube Tablet or Cash Back Promotion August 31, 2015
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,999 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). BMO InvestorLine Refer-a-Friend October 30, 2015
Open a new account (registered, margin, or FX & CFD) with at least $100,000 in new assets and execute at least one commission-generating trade and you may be eligible to receive an Apple Gift Card worth $500.00. Use promo code APPLEWATCH2015 when registering. Be sure to read the full terms and conditions on this offer. $100,000 $500 Apple Store gift card Apple Store gift card will be emailed within 30 days of eligibility requirements being met. Apple Gift Card Promo August 31, 2015
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least A)$100,000 – $249,999; B)$250,000 – $499,999 or C)$500,000+ in net new assets and you may be eligible to receive either: A)$250 cash back OR 125 commission-free trades; B) $500 cash back OR 250 commission-free trades; C)$1000 or 500 commission-free trades. Use promo code 5CASH for cash back promotion or 5TRADE for commission-free trade promo. Be sure to read full terms and conditions for eligibility and further details. A) $100,000 – $249,999 B) $250,000 – $499,999 C) $500,000+ A) $250 cash back OR 125 commission-free trades B) $500 cash back OR 250 commission-free trades C) $1000 or 500 commission-free trades. Cash back: 6 months – 7.5 months Commission-free trades: 90 days (note: commission fees rebated within 45 days after 6 month credit period) Five Star Promotion June 30, 2015
Last Updated: June 3, 2015 10:00 PT

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Scotia iTrade Transfer $15,000 or more to Scotia iTrade from another Canadian brokerage, and iTrade may pay up to $150 in transfer fees. $150 $15,000 1000 Free Trade or $1000 Cash Back Offer September 13, 2015
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $10,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $150 $25,000 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 $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 info (1-800-567-3343) none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $150 $50,000 Disnat $500 Commission Credit Promo June 30, 2015
Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – May 29, 2015

When the weather starts to get this nice, it’s harder to enjoy it from behind a desk or a window. Perhaps that was also to blame for the market sell-off going into the weekend. While folks across the country are probably looking forward to some grill time, many discount brokerages, on the other hand, would definitely welcome the break from getting grilled.

In this ‘nice weather’ edition of the roundup, we’ll take a look at one small brokerage that landed a rather big financial services partner in order to compete strategically with the bank-owned brokerages. Next we take a look at another Canadian discount brokerage who’s showing signs of winning with investors. Following that, we take a quick scan at the deals/promotions set to expire and then move on to the home stretch where we continue with our discount brokerage tweets of the week, investor education event horizon and close out with two very interesting forum threads.

Funds in the Sun

When you’re not the biggest online brokerage in the room, there’s a fair bit of creativity required in order to maneuver around the DIY investor market. One way in which to do this is to create strategic partnerships.

This past week, Qtrade Securities Inc. (which controls Qtrade Investor) announced that they’re partnering up with Sun Life Financial to enable Sun Life’s financial advisors to connect their clients to Qtrade’s investment advisors and/or to Qtrade Investor directly.

Last year, at just about the same time of year, Qtrade also announced a similar partnership with Great-West Life with a familiar strategy in mind.

As the battle between online brokerages for new clients and new client assets continues to intensify, so too does the cost of acquiring new clients. And, in a falling commission revenue environment, there’s definite pressure to innovate.

From a strategy perspective, getting clients from referrals (instead of having to spend lots of resources on marketing) is much more cost effective. This is something other smaller brokerages have turned to in order to compete with the bigger banks who can typically “cross sell” their customer base on an online brokerage account while visiting an ATM or bank website.

That said, bank-owned brokerages still command the lion’s share of online brokerage accounts in Canada. As the year progresses, it will be interesting to see what else firms like Qtrade will be up to in order to win attention away from larger and smaller competitors alike.

Interactive Brokers Canada Building the Bench

As was mentioned in last week’s roundup – there are some interesting signs of what Canadian discount brokerages are up to based on some of the activities observed online. This week we turn our attention to a popular online brokerage: Interactive Brokers Canada.

Although there was a fairly large response from investors to the news that Interactive Brokers Canada began accepting registered accounts, the initial buzz has appeared to have died down.

While it is difficult to speculate on just how many individuals have decided to open up either a TFSA and/or RRSP at Interactive Brokers, recent postings for additional customer and technical service support at the Interactive Brokers Canada offices in Montreal seems to suggest that extra hands might be required.

Even though hiring of client service reps aren’t that abnormal (RBC Direct Investing also posted for a client service rep this week), in IB Canada’s case, the headcount is generally kept pretty small. The relatively low headcount is why, according to recent reports, they averaged about $1.3M in revenue annually per employee.

Screenshot from Interactive Brokers website.
Screenshot from Interactive Brokers website.

In addition to the new staff it appears they’re also advertising their new account offerings online – something they typically haven’t done within the Canadian market.

With a very low cost structure to begin with, Interactive Brokers will naturally attract price sensitive investors. Putting these pieces together, however, suggests that their strategy to attract more attention by offering registered accounts and shoring up support might be paying off.

Deal Preview

Heading into a new month means deals and promotions require a quick check-up.

After a busy first quarter of 2015, the deals and promotions from Canadian discount brokerages has slowed down in May. Our sources have suggested that several bank-owned brokerages have been working on promotions, however at this point nothing concrete has surfaced.

With that in mind, there was one extension to report on from Questrade which bumped back the deadline of their prepaid Visa card promotion to the end of this month. That brings the count to 2 of deals from Questrade that are timed to expire at the end of May. The other brokerage offer that is scheduled to expire at the end of May is from Scotia iTrade. Their landmark $500 AND 500 free trade promotion is one of the most aggressive they’ve ever put forward and it was timed specifically around the launch of their investor centre in downtown Toronto.

We’ll be keeping an eye out for anything that surfaces over the weekend and at the launch of the new month.

#DiscountBrokerage Tweets of the Week

In this week’s edition of the tweets of the week, it’s clear once again to see how much activity to and from Questrade takes place on Twitter.

Questrade was busy fielding comments on topics from technology to features. Other brokerages were also on the ball when it came to keeping an ear out for folks interested in them – in particular RBC Direct Investing and Scotia iTrade. One interesting observation was from frustrated tweeters about Virtual Brokers’ customer service, both of whom remained unanswered as we went to publication.

Event Horizon

Vancouver seems to be where it’s at this weekend.

The Montreal Exchange’s Options Education Day takes place this Saturday – preregistration is required.

Also, the Canadian Investor Conference – also known as Canvest – will take place on Sunday and Monday. For more information or to register, click here.

From the Forums

Reviews of Questrade

If there’s one thing that Questrade has appeared to do far more successfully than its online brokerage peers, it has been building “street cred” with Canadian investor forum users and on social media. Unlike on Twitter where individuals either rant (mostly) or rave about a brokerage, on the forums there are typically more complete conversations that include positive things to say about a brokerage. While character length may have something to do with it, the self-policing nature of forum communities generally means that different perspectives help form a more accurate version of what’s going on. In fact, there are often some relatively heated debates involving folks sticking up for their brokerage – something that has yet to appear on Twitter, at least for Canadian brokerages.

In this thread on reddit’s Personal Finance Canada thread, it was particularly interesting to see what individuals really liked or spoke out about regarding Questrade. Worth a read for those thinking about Questrade.

The Dividend Did It

Learning about the nitty gritty of what discount brokerages do is not something most brokerages telegraph well. After all, who’s got the time to explain how the whole thing works (assuming they know themselves!)? In this post from the financial wisdom forum, one user noticed a fluctuation in a limit order they placed that was cause for concern. This one is of particular interest to the dividend enthusiasts.

Into the Close

That’s a wrap for this week’s roundup. After spending a fair portion of the week wrestling with social media (#FirstWorldProblems) an interesting topic that ended up trending was #AdviceForYoungTraders. It was a fascinating thread filled with all kinds of interesting trader maxims. Of course, one of the most, um, concise, was from WWF Wrestling Superstar and often NSFW Iron Sheik (who doles out this ditty regularly):

 

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – May 22, 2015

Like some kind of odd celestial alignment, the convergence of shorts weather on a short work week just as the S&P 500 hits a new high and causes yet another squeeze on the shorts. Yup, seems like shorts are the theme for this week’s roundup, and as such, this discount brokerage roundup will try to, um, keep it short.

In this edition of the roundup we take a look at the latest deal launched by one bank-owned online brokerage and why it might be a signal for the upcoming summer discount brokerage deals season. Next we gaze into the tea leaves with some interesting signals from one brokerage’s activity patterns as well as look at one looming threat to brokerages that may turn out to be more sizzle than steak. We’ll also take a look at what the chatter about discount brokerages was like on social media with our new #TweetsOfTheWeek. Finally we’ll take a look at the upcoming investor education events and some very interesting chatter from the investor forums.

Cash (or Free Trade) Me if You Can

Just in time for summer, Scotia iTrade has resurrected their 1,000 free trade/$1,000 cash back offer once again albeit with several twists.

When it first launched in January of 2015, it was the only offer that offered a specific promotion for deposits over $500,000 as well as the largest headline number for a cash back or free trade promotion. At the time the offer consisted of either cash back or commission free trades, and included a trial of the Scotia iTrade platform FlightDesk.

In its latest incarnation, the $1,000 cash back or 1,000 free trade offer now includes a 6 month subscription to the US based KeeneOnTheMarket.com trade alert service for individuals who deposit more than $100,000. As was the case in January, it appears that Scotia iTrade is looking to distinguish its promotions from other brokerages with bigger, bolder numbers of deposits sizes, free trades or cash back and now a stockpicker’s subscription service.

Interestingly, through the remainder of May, they will have several concurrent offers which could offer deal hunters a narrow window to pick the best one of the bunch.

Another noteworthy component to the latest deal from Scotia iTrade is that the offer expires well into September. Many other offers from bank-owned brokerages aren’t set to go that long but it looks like Scotia iTrade has firmly placed their bets on this flagship offer for the rest of the summer.

Finally, there is clearly an interesting spin on this offer that is geared towards active traders of US equities/options. Scotia iTrade continues to court this highly prized segment with their $4.99 active trader commission pricing, platform, service offering and now promotions.

It will be interesting to see if any other bank-owned online brokerage steps up to challenge Scotia iTrade in the active trader segment. The recent fee hikes from the major Canadian banks likely saw long-term investment accounts take some collateral damage with disgruntled clients jumping ship. The priority will likely therefore be on winning back those clients with incentives rather than chasing active traders. Whatever the case, Scotia iTrade has opted step into summer swinging with big headlines that other bank-owned brokerages will have to seriously ante up to beat. Should be an interesting summer.

Starting to Sizzle

Between the major news announcements, there are always some minor blips on the radar that indicate that the Canadian online brokerages are working away on something.

One bank-owned brokerage in particular seems to be finding its way back on to the radar more regularly. CIBC Investor’s Edge has been mentioned several times in recent roundups and stories for rolling out new pricing, promotions and seminars this year – something that was distinctly different from most of 2014. This past week they have yet again changed their homepage imaging and seized upon a timely trend by pitching visitors to their website the benefits of TFSA – something that up until now only Questrade had really picked up the ball on.

source: screenshot from CIBC Investor’s Edge Homepage

While it is still early, it appears that there is a trend amongst Canadian discount brokerages to increasingly focus on the content and design of their sites.

Recently CIBC Investor’s Edge and BMO InvestorLine have been building their respective benches in these areas by looking to hire designers and user experience specialists. BMO InvestorLine recently rolled out their new website front-end along with Desjardins Online Brokerage earlier this year and we’ve had confirmation from several other brokerages they are poised to do the same within the next 6 months. CIBC Investor’s Edge looks like they might be gearing up for some substantial design changes in the not too distant future.

CIBC Investor’s Edge bold commission pricing drop has put them back into minds of many DIY investors as well as their competitors, however their most recent maneuvers might signal that competition on user experience between bank-owned brokerages is going to get even hotter.

Don’t Believe the Hype?

For many DIY investors, the recent spike in attention given to robo-advisors has got more than a few feathers ruffled.

In an interesting story from International Adviser, however, one of the groups singled out as being threatened by the robo-advisor trend may breathe a sigh of relief. The reason: profitability.

While there has been lots of interest on the part of retail investors in these robo-advisors, the article points out the numerous challenges to successfully growing to scale where they can threaten the discount brokerage space. The point, as it is in many industries, is that only the strong will end up surviving. It’s a familiar refrain for discount brokerages who know all too well that success hinges on having a critical mass of clients AND being able to stick out from their competitors. For robo-advisors, the fight is only just beginning and it’s likely to expect discount brokerages won’t be letting them advance unchallenged for much longer.

#DiscountBrokerage Tweets of the Week

This week it looks like Twitter users from Questrade were again having trouble sourcing stocks to short. Given that certain markets are pushing all-time highs, it’s interesting to see a) that so many traders are attempting shorts and b) that Questrade users are encountering challenges shorting. While tweets to and from Questrade dominated the news feed, one user vented about the customer service experience at Virtual Brokers – something that has also been getting attention from other users posting to our forum.

Event Horizon

May 26

NBDB – Introduction to Call Options – [Fr]

TD Direct Investing – Understanding Margin & Short Selling – [Mandarin]

Scotia iTRADE – Options Trading For Beginners with Sarah Potter

May 27

Scotia iTRADE – Options Trading – Building A Collar with Montreal Exchange

TD Direct Investing – Advanced Options

TD Direct Investing – Understanding Margin & Short Selling

From the Forums

Keeping count

There are many reasons individuals may decide to open multiple accounts with discount brokerages. Chief among them are risk management (think eggs in baskets), CIPF protection and special features, one of the drawbacks is keeping them all straight. In this post from the financial wisdom forum, it was pretty interesting to see just how many discount brokerage and banking accounts certain individuals admitted to using.

Small Potatoes

It’s becoming trickier for smaller, inactive investors to park their money at a discount brokerage. In this post from Red Flag Deals, the inactivity fee took one investor at Qtrade by surprise. Check out what the community had to say about their options.

At the Close

That’s a wrap for this week. Remember that US markets will be closed on Monday for Memorial Day so for the US traders it will be a short week. Wherever you happen to be this weekend, hopefully you are blessed with great weather or some wildly entertaining stuff to watch. To help launch you into the weekend on a high note, here’s more great footage of people flying – a Canadian in shorts no less!

Posted on by

Discount Brokerage Weekly Roundup – May 8, 2015

What a week of wacky data to digest. From May the Fourth being with us, to Cinco de Mayo to the NDP landslide win in Alberta to Deflategate to stocks being called out for being overvalued and the markets going up anyway. It was definitely one of those stranger-than-fiction-headscratchers kind of weeks. Not to be left out, Canadian discount brokerages and DIY investors have a bit of headscratching to do with the release of yet another discount brokerage ranking.

In this week’s roundup, we take a look at the latest MoneySense discount brokerage rankings and attempt to glean what they mean. Next, we shine a light on one discount brokerage that is springing to life with more activity. From there we take a look at some notable developments in the US that are bound to have Canadian discount brokerages starting to be a little bit nervous and giving DIY investors a reason to cheer. As usual, we’ll close out with the upcoming investor education events and some interesting chatter from the forums, including the whisper of a new deal from one bank-owned brokerage.

Because this week’s roundup is a bit longer than usual, here’s the TL;DR version up top:

  • There were lots of discount brokerages crowned as the best discount brokerage in this year’s MoneySense discount brokerage rankings. With so many rankings and ratings providing conflicting signals, consumers should take the title of ‘best discount brokerage’ or ‘best online brokerage’ with several grains of salt.
  • CIBC Investor’s Edge is more active this year. It will be interesting to see what’s coming as they are definitely working on doing more for DIY investors than years past.
  • Commission-free trading might be coming to Canada. US discount brokerage Robinhood just announced they’re going global meaning it’s likely not a question of if so much as when commission-free trading shows up in Canada.

The Latest Best Discount Brokerage Rankings

While the theme song ‘Everything is Awesome’ is both awesome and catchy, it’s not that useful as a decision making tool – especially when trying to choose an online brokerage.

With rankings from the Globe and Mail, JD Power, Dalbar, Surviscor, Morningstar and MoneySense, there is no shortage of ranking information out there. For many DIY investors, and even for discount brokerages too, when so many Canadian discount brokerages are being crowned the ‘best discount brokerage’ the meaning of the word best really becomes challenging to pin down.

This week MoneySense’s latest discount brokerage rankings were spotted, and in them were 7 different winners of different categories, including the title of best overall (the bestest?).

Here are the results according to their latest rankings:

Best Online Brokerage Category Winner Runner Up
Ease of Use BMO InvestorLine Scotia iTRADE
Customer Service Scotia iTRADE Qtrade Investor
Fees and Commissions CIBC Investor’s Edge Credential Direct
Account Information & Reporting BMO InvestorLine Questrade
Educational Resources Desjardins Online Brokerage TD Direct Investing
Market Intelligence TD Direct Investing Scotia iTRADE
Best Overall BMO InvestorLine Scotia iTRADE
source: Surviscor

For consumers, it is important to take a step back and put the results into context to understand what the title of ‘best discount brokerage’ really means from the source that is using it.

One of the first things that stands out with these results is the weight/preference on certain categories.

In this latest series of results, BMO InvestorLine was declared as ‘best overall’ with Scotia iTrade coming in as runner up overall. Looking more closely, BMO InvestorLine took first place in “ease of use” and “Account Information and Reporting”. Scotia iTrade, ranked best at customer service and runner up with “ease of use” and “market intelligence”.

Based on these results, the best overall means that ease of use and account information would likely have to far outweigh customer service and market intelligence, and each of those would have to outweigh the importance of fees and commissions, and educational resources.

Without getting into too much of the logic puzzle, the takeaway is that DIY investors will attach different priorities to different categories as well as define those categories differently than those who composed the rankings. Who decides, after all, what ‘ease of use’ quantifiably means, how to measure it and how much a percentage point of ‘ease of useness’ really amounts to for every DIY investor?

Another thing for consumers to keep in mind is how quickly the rankings can and do change.

Data for the MoneySense rankings were gathered in March and April of 2015 by Surviscor and so it is interesting to compare the customer service category scores in the MoneySense ranking against the results published earlier this year in the customer assessment to see the differences.

In the 2014 Canadian Brokerage Service Level Rankings, Credential Direct (91%) was awarded the top honours followed by Qtrade Investor (90%) and Desjardins Online Brokerage (73%). In that ranking BMO InvestorLine was ranked 8th (with a score of 31%) and Scotia iTrade 4th (with a score of 71%). It is therefore interesting to see Scotia iTrade’s customer service response score in the latest MoneySense rankings surpass Desjardins Online Brokerage, Qtrade Investor AND Credential Direct in that narrow window of time.

And then there are the surprises.

One of the biggest of those surprises was in the cost category in which CIBC Investor’s Edge took top spot followed by Credential Direct. Neither Virtual Brokers, Questrade, Qtrade nor Interactive Brokers appeared at the top of this category which again highlights the importance of the way ‘cost’ is measured and calculated when determining the “winners”.

For DIY investors looking for an online trading account, the bottom line is to take the term “best discount brokerage” with a grain (or several) of salt. There are many different ways to define and measure what that actually means. While the rankings themselves might have a systematic and defined process, the details and motives of that process are what’s most important in establishing the degree to which they are reliable and, ultimately, meaningful.

Where There’s Smoke

After a long winter (especially for the folks east of the Rockies), it’s reassuring to see signs of spring. It’s a fitting metaphor for one bank-owned discount brokerage that may be sprouting back to life. Although it is not a big move, the announcement on CIBC Investor’s Edge’s website about an upcoming webinar from Morningstar Research is the kind of thing that signals that something different is happening.

To put it into context, after a relatively quiet first portion of 2014, CIBC Investor’s Edge has been steadily and more frequently surfacing with pricing changes or promotions.

No doubt they have started to see the increased interest in their online brokerage offering ever since they dropped their standard commission price to one of the lowest amongst their bank-owned peers. That was October. Earlier this year they ran a promotion for commission-free ETF trading. Now they are offering up an investor education webinar.

Even though it is too soon to draw definitive conclusions, it is becoming clear that CIBC Investor’s Edge is stirring. And, that being the case, we won’t be the only ones watching to see what’s going to come next.

Commission-Free Trading in Canada?

For Canadian DIY investors, the entry of online brokerages such as Questrade, Interactive Brokers and Virtual Brokers (and TradeFreedom way back when) offered the first glimpse of a world in which DIY investing could happen at an affordable level.

Fast forward to 2015 and the new normal is a world in which commissions for equity trading has fallen to just under $10 for most brokerages and ETFs are capable of being bought (and sometimes sold) completely commission-free. For DIY investors, it’s a wonderful world. But could it be better?

It’s hard to imagine the race to the bottom on commissions hitting zero however US-based online brokerage Robinhood has promised and delivered on doing just that. While they have been restricting use to the US, something significant happened this week when they announced not only that they received additional investment to the tune of $50M but also that they were going global. Specifically, they’re looking to roll out in Australia.

There are many parallels drawn between the markets here and in Australia. It stands to reason, therefore, that how they roll-out in Australia will definitely be an interesting test-bed for Canada. One this is for certain: nobody likes to see their money go down the drain, no matter which way it spins on the way down.

In addition to landing a hard right hook on pricing, Robinhood appears to be taking a serious jab at established discount brokerages when it comes to user experience.

Last week we noted how other brokerages in the US have Apple watch apps that enable users to review their investments – even TD Direct Investing offers the ability to get an update on balances and stocks. Robinhood, however, has made the leap of building a transactional Apple watch trading app.

One look at their Apple Watch trading app basically summarizes not only how nimble they are within their niche but also that they “get it” when it comes to usability. To paraphrase a bad clickbait headline: this online brokerage designed an app and they totally nailed it.

Although it took the better part of 15 years for pricing to come down meaningfully, many investors are watching a world where zero-commission trading and robo-investing is happening and spreading. And, as it turns out, they are lining up in droves to get it. Recall, this is not unlike how Facebook and every other social phenomenon got traction. A bunch of young people chomping at the bit to use it. Suddenly commission-free trading in Canada doesn’t seem so silly.

Event Horizon

Here are the upcoming investor education events from Canadian discount brokerages:

May 9

Desjardins Online Brokerage (Disnat) – The Secret to Finding Hot Stocks

May 12

TD Direct Investing – Options as an Income Strategy

Scotia iTRADE – Trading Tips Using Active Investing and ETFs with Horizons

TD Direct Investing – Discovering Leveraged and Inverse-Leveraged ETFs, with Horizon ETFs

Desjardins Online Brokerage (Disnat) – Investing With the Stockscores Approach

NBDB – Discover ETFs – [Fr]

May 13

NBDB – Swing Trading Course with Michel Carignan – [Fr] (Paid)

Desjardins Online Brokerage (Disnat) – The Stockscores Approach to Active Trading

NBDB – Stop Orders: A Winning Solution Worth Knowing – [Fr]

From the Forums

Deal Whisperer

With a number of discount brokerage deals and promotions in play, one of the popular promotional offerings is the “refer a friend” promotion. In this post from the Financial Wisdom Forum, there are whispers of an improved refer-a-friend deal from BMO InvestorLine that might be on the horizon.

Which brokerage to use for ETFs?

The popularity of ETFs with Canadian investors shows no sign of slowing down. In this post from reddit’s Personal Finance Canada section, it is interesting to review what the thoughts are of different users on which discount brokerage would be best for ETFs.

That’s a wrap for this edition of the roundup. Thankfully it looks like a fantastic weekend to say thanks to all the mom’s out there (including Mother Nature!) and to raise one last toast to Don Draper for many smoke-filled seasons of thought.

Posted on by — Leave a comment

Discount Brokerage Deals and Promotions – May 2015

*Updated May 19* May is finally upon us. For some investors, this is time of year to be looking to exit the markets for the summer. For others, the ongoing uncertainty of the markets is just too alluring to walk away from, especially with speculation around interest rate hikes. Canadian discount brokerages are mindful of the coming summer slowdown which explains the pullback in the number of deals currently being offered and why this month is off to a slow start for promotions – at least with some providers.

The discount brokerage deals landscape going into May shows that a small core of brokerages are likely to be battling it out for new clients. Of the 16 open offers at the outset of the May, 13 of them come from just three online brokerages: BMO InvestorLine (3), Questrade (5) and Scotia iTrade (5).

While it is well established that Questrade is among the most likely to be offering multiple promotions, this month Scotia iTrade suprisingly happens to also have five promotions running concurrently. In particular, the promotion attached to the opening of their new investor centre in downtown Toronto as one of the biggest offers they’ve put out to date.

As for the other discount brokerages currently offering deals, Desjardins Online Brokerage’s offer lasts until the end of June and Virtual Brokers’ offer through the end of May. Whether or not another online brokerage steps into the pool at this point remains to be seen, however it would be an opportune moment for one of them to make a very visible splash.

Expired Deals

There were four offers that ended last month, two during the middle and two and the end. Notably, Credential Direct opted to let their cash-back + free trade offer expire mid-month and Qtrade Investor’s transfer fee promotion was not renewed. The other promotions that expired were the BMO InvestorLine RSP-linked promotion and Questrade’s Motley Fool Canada offer.

Extended Deals

BMO InvestorLine was the only online brokerage to extend an offer from last month. The BMO InvestorLine Youth Promotion aimed at investors between the ages of 18-35 (or now as they’re pitching it those “under 36”) is being extended once again this time until the end of June. See updated details in the table below.

New Deals

*Updated May 19:

Scotia iTrade has relaunched its headline grabbing “$1000 or 1000 trade” offer once again – and this time it looks to be a while before it goes away.  The latest promotion by Scotia iTrade replaces the now expired $500 OR $500 free trade offer. In their latest offer, Scotia iTrade has 6 tiers of deposit category, with deposits of $100,000 or more qualifying for an added bonus of a 6 month subscription to KeeneOnTheMarket.com. Check the table below for additional information.

*Updated May 15:

Questrade has added two new promotions this week.  The first is a replica deal of the 10/100 trade offer in which individuals can receive either 10 or 100 commission free trades (good for up to 60 days) for deposits of either $1,000 or $10,000 or more. It is interesting to see two identical offers running concurrently however this latest offer expires at the end of June whereas the earlier offer expires at the end of May. The second promotion is one that is certainly more headline worthy.  Questrade is pitching the offer as their “Apple Watch” promotion however the fine print on the deal reveals that they are offering an Apple gift card worth $500 – the approximate value of the base model Apple Watch sport.  This promotion is open to individuals depositing at least $100,000 or more in net new assets with Questrade.  See the table below for additional information.*

While it did not technically commence at the beginning of May, the new TFSA-linked offer from Questrade is the only ‘new’ deal heading into the new month. On the heels of the Federal Budget announcement to raise the limit of the TFSA to $10,000, Questrade responded quickly with a cash-back offer of $50 for a deposit of $5,000 or more and $75 for a deposit of $25,000 or more. We suspect that Questrade won’t be the only online brokerage to jump onto the new TFSA limit story with a promotion, however for the time being they’re uncontested by the other brokerages in this key area.

As always, we’ll be on the lookout throughout the month however if there are discount brokerage deals that we’ve missed or that you want to share with other DIY investors, simply drop us a note or post in the forum and we’ll take a look.

Discount Brokerage Deals

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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO InvestorLine, they may be eligible to receive 35 commission-free trades, an eBook on investing, $50 cash back and potentially waived account minimum fees. Use promo code “YOUNG” when signing up. Be sure to read the terms and conditions for more details on the offer. A) for commission free trades: n/a B) for cash back: $25,000 A) 35 commission-free trades B) $50 cash back + 35 commission-free trades 90 days Youth Promotion June 30, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open a new account (TFSA, margin or registered account) with Questrade and deposit at least A)$1,000 or B)$10,000 and you may be eligible to receive A)10 commission-free trades or B)100 commission-free trades. Use promo code 100LOWCOM15Q3 when registering. Be sure to read the full terms and conditions for this offer. A)$1,000 B)$10,000 A) 10 commission-free trades B) 100 commission-free trades 60 days 100 free trades offer May 29, 2015
Open a new account (margin or registered account) with Questrade and deposit at least A)$1,000 or B)$10,000 and you may be eligible to receive A)10 commission-free trades or B)100 commission-free trades. Use promo code 100FREEML15Q3 when registering. Be sure to read the full terms and conditions for this offer. A)$1,000 B)$10,000 A) 10 commission-free trades B) 100 commission-free trades 60 days 100 free trades/multileg offer June 30, 2015
Open a new account (TFSA, margin or registered account) with Questrade and deposit at least A)$1,000 or B)$10,000 and you may be eligible to receive A)10 commission-free trades or B)100 commission-free trades. Use promo code 100FREEML15Q3 when registering. Be sure to read the full terms and conditions for this offer. A)$5,000 B)$25,000 A)$50 B)$75 Cash rebates applied up to 60 days after eligibility confirmed 100 free trades offer June 30, 2015
Open a new account (TFSA, margin or registered account) with Questrade and deposit at least A)$5,000; B)$25,000; C)$50,000 or D)$100,000 in order to be eligible to qualify for a Visa gift card in the amount of A) $50; B) $75; C)$100 or D)$250. Clients must also place at least one commission-generating trade within 60 days. Use promo code VISA250 when signing up. Be sure to read terms and conditions for full details. A)$5,000 B)$25,000 C)$50,000 D)$100,000 A) $50 prepaid Visa card B) $75 prepaid Visa card C) $100 prepaid Visa card D) $250 prepaid Visa card Prepaid Visa cards may be issued up to 40 days after eligibility confirmed Prepaid Visa Promotion May 29, 2015
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 June 30, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999; B)$50,000 – $99,999 C)$100,000 – $249,999; or D)$250,000+ and you may be eligible to receive a corresponding cash-back AND commission rebate. New clients use code GO15 when opening the account. Note: Only accounts opened at one of the three downtown Toronto locations specified can qualify for this promotion. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. A)$15,000 – $49,999 B)$50,000 – $99,999 C)$100,000 – $249,000 D)$250,000+ A) $75 cash back AND 75 commission-free trades B) $125 cash back AND 1255 commission-free trades C) $250 cash back AND 250 commission-free trades D) $500 cash back AND 500 commission-free trades 90 days for commission-free trades. Cash back to be deposited by August 31, 2015. Cash back AND commission-free trade offer May 31, 2015
Open and fund a new account at Virtual Brokers with at least $15,000 and you could be eligible to receive up to 25 commission-free stock or ETF trades good for use for up to one year. Use promo code “TRYUS2015” when signing up to qualify. Be sure to read full terms and conditions carefully. $15,000 25 commission-free trades 365 days Free trades for one year promotion May 31, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999; B) $50,000 -$99,999; C)$100,000 – $249,999; D)$250,000 – $499,999; E) $500,000 – $999,999 or F)$1,000,000+ you may be eligible to receive a corresponding cash back or commission rebate. For commission-free trades use code: LBS15FT or for cash rebates use code: LBS15C. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. Contact Scotia iTRADE for full details on this offer. A) $15,000 – $49,999 B) $50,000 -$99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+ A) 50 commission-free trades OR $50 cash back B) 100 commission-free trades OR $100 cash back C) 250 commission free trades OR $250 cash back D) 350 commission-free trades OR $350 cash back E) 500 commission-free trades OR $500 cash back F) 1000 commission-free trades OR $1,000 cash back 180 days for commission-free trades Cash back to be deposited by January 31, 2016. Larry Berman Seminar Offer – Front and Terms & Conditions May 31, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999; B) $50,000 -$99,999; C)$100,000 – $249,999; D)$250,000 – $499,999; E) $500,000 – $999,999 or F)$1,000,000+ you may be eligible to receive a corresponding cash back or commission rebate. For commission-free trades use code: THSP15 or for cash rebates use code: RNYDMN. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. Contact Scotia iTRADE for full details on this offer. A) $15,000 – $49,999 B) $50,000 -$99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+ A) 50 commission-free trades OR $50 cash back B) 100 commission-free trades OR $100 cash back C) 250 commission free trades OR $250 cash back + KeeneOnTheMarket Subscription D) 350 commission-free trades OR $350 cash back + KeeneOnTheMarket Subscription E) 500 commission-free trades OR $500 cash back + KeeneOnTheMarket Subscription F) 1000 commission-free trades OR $1,000 cash back + KeeneOnTheMarket Subscription 120 days for commission-free trades Cash back to be deposited by February 13, 2016. $1000 or 1000 free trade offer September 13, 2015
Scotia iTrade Open a new Scotia iTRADE account with at least $15,000 by June 30, 2015 and you could be eligible to receive up to 100 online trades commission-free (equities, options, ETFs). Use promo code HUN-SP when registering to qualify. Be sure to carefully read full terms and conditions. $15,000 100 commission-free trades (+ free trial of FightDesk platform for 60 days) 60 days 100 Free Trades Offer June 30, 2015
Disnat Disnat is offering new & existing clients $500 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $50,000 $500 commission credit 6 months Disnat $500 Commission Credit Promo June 30, 2015
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,999 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). BMO InvestorLine Refer-a-Friend October 30, 2015
Open a new account (registered, margin, or FX & CFD) with at least $100,000 in new assets and execute at least one commission generating trade and you may be eligible to receive an Apple Gift Card worth $500.00. Use promo code APPLEWATCH2015 when registering. Be sure to read the full terms and conditions on this offer. $100,000 $500 Apple Gift Card n/a Apple Gift Card Promo August 31, 2015
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least A)$100,000 – $249,999; B)$250,000 – $499,999 or C)$500,000+ in net new assets and you may be eligible to receive either: A)$250 cash back OR 125 commission-free trades; B) $500 cash back OR 250 commission-free trades; C)$1000 or 500 commission-free trades. Use promo code 5CASH for cash back promotion or 5TRADE for commission-free trade promo. Be sure to read full terms and conditions for eligibility and further details. A) $100,000 – $249,999 B) $250,000 – $499,999 C) $500,000+ A) $250 cash back OR 125 commission-free trades B) $500 cash back OR 250 commission-free trades C) $1000 or 500 commission-free trades. Cash back: 6 months – 7.5 months Commission-free trades: 90 days (note: commission fees rebated within 45 days after 6 month credit period) Five Star Promotion June 30, 2015

Expired Offers

 #colspan#
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $99,999, B)$100,000 – $499,999, C)$500,000+ and you may be eligible to receive a corresponding cash-back or commission rebate. For commission-free trades use code: PST15 or for cash rebates use code: CSINE. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trades OR $50 cash B) 250 commission-free trades OR $250 cash C) 500 commission-free trades or $500 cash 180 days for commission-free trades Cash back to be deposited by February 17, 2016. 500 Free Trade or $500 Cash Back Offer May 17, 2015
Last Updated: May 29, 2015 7:00pm PT

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Scotia iTrade Transfer $15,000 or more to Scotia iTrade from another Canadian brokerage, and iTrade may pay up to $150 in transfer fees. $150 $15,000 500 Free Trade or $500 Cash Back Offer September 13, 2015
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Transfer Fee Rebate none
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $10,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $150 $25,000 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 $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 info (1-800-567-3343) none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $150 $50,000 Disnat $500 Commission Credit Promo June 30, 2015
Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – April 3, 2015

While markets shut down early for the Easter weekend, those in the markets are all too familiar with the feeling of hunting for the analogous Easter eggs and being careful with how many they have in any one basket. Interestingly, the prizes and family time that have come to characterize Easter also seem to have inspired Canadian discount brokerages going into this long weekend.

In this week’s roundup we take a look at the latest basket of discount brokerage deals to cross our radar followed by a mind-blowing marketing move by one online brokerage. Next we hop on over to the upcoming investor education events and cap off the week with some timely investor forum chatter.

Ears to the Ground for Deals

This past week, the flurry of RSP-linked investing account offers from online brokerages officially came to an end. The end of March signaled the expiry of 10 deals from brokerages large and small. Players such as RBC Direct Investing, TD Direct Investing, HSBC InvestDirect and National Bank Direct Brokerage all had deals wrap up.

Those looking for a deal on an online brokerage account needn’t worry, however, as there are still 15 offers from 7 brokerages.

Stepping into April, there are a few noteworthy developments in the deals/promotions space. First, after a brief hiatus from the deals section, Virtual Brokers has decided to rejoin the promotions roster offering up a deal that looks to challenge other brokerages to a test of endurance.

The latest deal from Virtual Brokers consists of 25 commission-free stock or ETF trades which are good for use for up to one year. Most discount brokerages have commission-free trading offers that last between 30 and 90 days. Some of the exceptions include Desjardins Online Brokerage whose commission credit lasts 6 months or Questrade who has a $50 commission credit with no expiry date.   The offer itself is similar to the recently expired RBC Direct Investing promotion which offered 20 commission-free trades which were also good for up to one year.

Offers with 100 or 500 commission-free trades might be great for highly active traders but would offer little value for less active investors which makes the latest move by Virtual Brokers DIY investors may turn to, especially with RBC Direct Investing’s offer now retired.

Another interesting development in the deals/promotions section was a raising of the ante by Desjardins Online Brokerage. Since October of 2012, they have been offering a $300 commission credit (on a minimum deposit of $50,000), however this month they have decided to raise the stakes by increasing this offer to a $500 commission credit.

For some context, the only other (current) offer of a $500 commission rebate is from Scotia iTrade which requires a minimum deposit of $500,000. The move may be a response to the recently expired promotion from National Bank Direct Brokerage (a key competitor to Desjardins Online Brokerage) who was offering $500 in commission rebates for deposits of at least $20,000. What makes Desjardins’ latest offer interesting is the combination of dollar amount and time to take advantage of the offer. The Desjardins Online Brokerage commission credit is good for up to 6 months, a timeframe (as mentioned above) that is far longer than most other commission credits currently available.

Finally, it’s also worth mentioning that Qtrade Investor has lowered the threshold to try out their online brokerage for individuals with less than $25,000. They currently have a transfer fee credit (of up to $150) for individuals depositing at least $10,000 (which is lower than their normal threshold of $25,000).

On a relative basis, having several deals at the start of the month is a sign that competition is ratcheting up going into the income-tax deadline season. While the bigger players have largely stepped back (for now), if and when they do step back in, it will have to be with even larger offers, which is another great piece of news for DIY investors.

Questrade Launches myFamily Program, Drops Mic

While Questrade remains the most active online brokerage in Canada to offer deals and promotions, they are also no stranger to getting creative to win new clients and loyalty from existing ones. Their latest salvo in the online brokerage competition, known as the myFamily Program, may just cause a tear in the financial services space-time fabric. Seriously.

Before jumping to why Questrade’s latest move may cause other Canadian discount brokerages to hit the panic button, it’s worthwhile to provide a bit of context.

Those who actively follow Questrade (and remember a time when there were NO inactivity fees) will recollect the moment that they introduced inactivity fees and the lengths that they went to then make it possible for clients to have those fees waived. One of the key components to the inactivity fee being waived is retaining a minimum balance of at least $5,000. While that threshold is low on a relative basis, for many younger or newer investors, it can still represent a barrier to getting into investing. This past week, however, meeting this threshold just got much simpler.

The recently announced myFamily Program from Questrade enables clients to reach that threshold by pooling the combined assets from up to five other Questrade clients – anywhere.

This is a big deal because historically, while there have been programs that have enabled clients to combine personal assets across other accounts with the same provider Questrade’s myFamily program crosses the threshold by linking individuals who just want to be linked together. For example, Scotia iTrade enables clients with combined assets of at least $50,000 across all Scotiabank services to qualify for $9.99/trade pricing and CIBC Investor’s Edge has enabled different individuals within the same household to pool assets or trading activity, however adding different people from (potentially) different addresses to a group in order to form a pool is not something other brokerages offer.

Screen grab from description of myFamily program from Questrade website.

According to Questrade, the definition of “family” is “who you tell us it is.” Not only is this an exceptionally enlightened way to characterize a family in 2015, but it is also brilliant from a marketing and business development perspective. Questrade has demonstrated on many occasions how to get people to start talking about them (for better or worse), however they’ve also shown how to get people to like them.

The $5,000 minimum asset threshold is a modest bar to lower from a fee perspective. The bigger prize, however, is the fact is that Questrade has redrawn the map on getting individuals to find other individuals to join Questrade (e.g. client acquisition) and also have them stay (e.g. client retention) and also champion the brand (e.g. advocacy).

They have created a way to leverage the power of sharing in a world that increasingly wants to share everything (like lunch pics and selfies) and with a demographic of individuals who absolutely buy into sharing. More than that, they’ve shown that do-it-yourself investors can get ahead by doing something together.

Your move every other online brokerage.

Event Horizon:

April 7:

NBDB – Learn About Investment Basics – [Fr]

Scotia iTRADE – Volatility – Friend or Foe with Pro Market Advisors

April 8:

Scotia iTRADE – Options as a Hedging Strategy Using Put Options with Montreal Exchange

TD Direct Investing – Options as an Income Strategy

TD Direct Investing – Economic Update & Introduction to Fixed Income

Desjardins Online Brokerage (Disnat) – How to Analyze Any Stock or Market in 10 Seconds

NBDB – Tools and Technical Analysis with Michel Carignan – [Fr]

April 9:

TD Direct investing – Options as an Income Strategy

TD Direct Investing – Technical Analysis Series, Part 1 of 2: Candlestick Charting

From the Forums

Withhold your applause

While there are countless articles discussing the pros and cons of RRSPs vs TFSAs, the following post from the RedFlagDeals.com investing forum provides an interesting perspective on the unwinding of an RRSP account with an online brokerage and some of the hard lessons learned.

Slip and Slide

Tax slips and low-cost brokerages seem to be a hit and miss exercise. Here are a couple of conversations about receiving those all-important summaries from investors on different boards (talking about Questrade and Virtual Brokers).

 

That does it for this holiday edition of the roundup. While markets will be back up and rolling on Monday, here is an entertaining look what the President of the United States will be up to and how the Easter Bunny gets VIP access to the White House. Not ‘egg-sactly’ what Frank Underwood would do…Have a great weekend!

Posted on by — Leave a comment

Discount Brokerage Deals and Promotions – April 2015

*Updated April 17* At the outset of April, there’s lots of deals and promotions activity to report on. Like most people, Canadian discount brokerages have done quite a bit of ‘Spring cleaning’ with their deals. For those looking to open an online trading account, this month has a number of interesting offers to consider.

RSP season was a big catalyst for many brokerages which resulted in an all-time high number of deals (25+) being offered through February and dropping to 15 by the end of March. With many of those offers set to expire at the end of March, we weren’t sure which would live to see another day and which would expire, however as March drew to a close, at least a handful of offers started to show signs of being continued, albeit briefly.

While it looks like many of the biggest brokerages are taking a breather, other brokerages are seizing that chance to step up. Some of the independent and less well-known brokerages, for example, are launching promotions that are sure to get the attention of self-directed investors as well as the larger brokerages.

April begins with 15 deals being offered by 7 different brokerages. There are two offers set to expire within the month, and three more by the end of the month. As has been the case with most deals and promotions, the number of deals at the beginning of the month is likely not going to be the same at the end.

Expired Deals

There were 10 discount brokerage promotions that expired in March. Many of these offers were extensions of offers initially launched as incentives during “RSP season” as well as one offer from Questrade that was timed around the Chinese/Lunar New Year.

Notably, RBC Direct Investing and TD Direct Investing left the deals field (for now) at the end of March. Also, National Bank Direct Brokerage closed out its rather sizeable offer as March ended.  Desjardins Online Brokerage technically saw the expiry of its over three year old $300 commission offer however another (larger) offer has replaced it.

Below is a list of the offers that expired within or at the end of March 2015:

  • HSBC InvestDirect            50 commission-free trades
  • Questrade          Unlimited Trading Offer
  • Questrade          Unlimited Trading Offer RSP
  • Questrade          Chinese New Year Promotion
  • Scotia iTrade      Cash back + Free Trade Offer
  • RBC Direct Investing       20 Free Trades
  • NBDB    $500/$1000 Commission Rebate
  • TD Direct Investing          200 Free Trade Offer
  • Disnat   $300 Commission Credit
  • Questrade          iPad Mini Offer

Qtrade’s RSP contest promotion also concluded at the end of March.

Extended Deals

Just before the end of March, BMO InvestorLine extended the deadlines for two of its currently advertised promotions.  Their Youth Promotion was extended once again, this time with the expiry date now bumped to April 30th.  Interestingly, the RSP promotion was also extended for another two weeks with the new deadline for this offer moved to April 15th.

New Deals

*Updated April 17* It’s been a busy week for discount brokerages launching their new looks and celebrating the events with new deals. BMO InvestorLine rolled out their new public facing website this week and with it they also launched a new promotion offering either a cash back or commission-free trading choice.  Their latest offer requires asset deposits of at least $100,000 to be eligible for either $250 cash back or 125 commission-free trades.  The other tiers for this offer include: depositing between $250,000 – $499,999 to receive $500 cash back or 250 commission-free trades; depositing $500,000+ to receive either $1000 cash back or 500 commission-free trades. See table below for further details.

Another promotion crossed our radar this week that was not advertised but is open to all.  The promotion is a cash back or commission-free trade offer from Scotia iTrade and has been part of their tour with Larry Berman. The offer itself is similar to previous (and current) offers except that there are more deposit tiers and correspondingly different cash back and commission-free trade amounts. Interestingly, because it provides a longer time horizon to use the commission-free trades, it is slightly more competitive an offer than the current BMO InvestorLine offer, however the flip side is that cash back rebates will take slightly longer.  A scan of the terms and conditions has been taken since no information was posted online, however for more information on this offer be sure to contact Scotia iTrade directly.  See table below for further details.

*Updated April 13* To celebrate the launch of their new Investor Information Centre in downtown Toronto, Scotia iTrade has taken the interesting step of launching a substantial promotional offer alongside a similar promotion. The newest offer, however, trumps the existing promotion hands down.  In their latest promotion (open to both new and existing clients) Scotia iTrade is combining free trades AND cash back as part of this latest incentive (the other promotion requires that individuals choose free trades OR commission-free trades).

Specifically, individuals depositing $15,000 – $49,999 can receive $75 cash AND 75 free trades; individuals depositing $50,000 – $99,999 can receive $125 cash AND 125 free trades; individuals depositing $100,000 – $249,999 can receive $250 cash AND 250 free trades; and individuals depositing $250,000 or more can receive $500 AND 500 free trades.   The biggest ‘catch’ to the is offer, according to the terms and conditions, is that individuals must open the account at one of three specific locations in downtown Toronto.  Here is the quote from the terms and conditions:

To qualify for this offer, new Scotia iTRADE account must be opened at one of the following locations: Scotia Plaza Banking Branch, 40 King Street W, Toronto, ON, M5H 1H1; Scotia iTRADE Investor Information Centre at 48 Yonge Street, Toronto, ON, M5E 1G6; or Scotia iTRADE Investor Information Centre at Scotia Plaza, Concourse Level, Suite CAB001, 44 King Street W, Toronto, ON, M5H 1H1.

For more information and details on this deal, see the table below.

This month there are four new commission-free trade or cash back offers and a new transfer fee promotion.

Virtual Brokers has stepped back into the deals arena after a month-long break with an offer that is sure to get other brokerages’ attention. Their latest deal offers 25 commission-free stock or ETF trades which are good for up to a year – far longer than most of the offers currently on the deals and promotions list.

Although Scotia iTrade retired their largest offer yet, they have brought back two other offers in its place. First, their $500 or 500 free trade offer. Scotia iTrade still remains one of the only brokerages to be targeting deposit sizes of over $500,000.  The other offer making a comeback is the 100 free trade offer (which also includes a trial offer to their trading platform FlightDesk).

Desjardins Online Brokerage’s latest offer, however, is going to raise a few eyebrows.  Their long standing offer of $300 in commission credits has been replaced with a $500 commission credit offer for deposits of $50,000 or more in assets. This is an attention grabbing number as comparable offers require deposit sizes of at least $500,000 (e.g. Scotia iTrade).  Drilling down into the fine print, however, this offer combines the transfer credit (of up to $150) as well as commission-free credits.  Thus, for individuals switching brokerages to Desjardins Online Brokerage it may be closer to $350 in commission credits if the full transfer fee has to be covered.  Of course, for those thinking of switching, it is worth requesting or negotiating that the brokerage cover all of the transfer fees as well as offer the full credit ($500) which could then make this offer stand head-and-shoulders above the others currently being offered for the $50,000+ deposit category.

While technically not initiated at the beginning of April, Questrade introduced a new version of their prepaid Visa offer midway through March.  This latest offer has up to a $250 prepaid Visa card for deposits of $100,000 or more (there are lower prepaid Visa card amounts available for smaller deposit sizes too).

Finally, Qtrade Investor is offering a new transfer fee rebate offer in which individuals who switch to Qtrade with at least $10,000 can have up to $150 in transfer fees covered.  Although this is a limited time offer, it is the lowest deposit amount required to qualify for that level of transfer fee coverage.

Discount Brokerage Deals

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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion April 30, 2015
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit none none none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open a new account (TFSA, margin or registered account) with Questrade and deposit at least A)$1,000 or B)$10,000 and you may be eligible to receive A)10 commission-free trades or B)100 commission-free trades. Use promo code 100LOWCOM15Q3 when registering. Be sure to read the full terms and conditions for this offer. A)$1,000 B)$10,000 A) 10 commission-free trades B) 100 commission-free trades 60 days 100 free trades offer May 29, 2015
Open a new account (TFSA, margin or registered account) with Questrade and deposit at least A)$5,000; B)$25,000; C)$50,000 or D)$100,000 in order to be eligible to qualify for a Visa gift card in the amount of A) $50; B) $75; C)$100 or D)$250. Clients must also place at least one commission-generating trade within 60 days. Use promo code VISA250 when signing up. Be sure to read terms and conditions for full details. A)$5,000 B)$25,000 C)$50,000 D)$100,000 A) $50 prepaid Visa card B) $75 prepaid Visa card C) $100 prepaid Visa card D) $250 prepaid Visa card Prepaid Visa cards may be issued up to 40 days after eligibility confirmed Prepaid Visa Promotion May 18, 2015
Open a new TFSA, margin or registered account with Questrade and deposit at least $10,000 dollars to be eligible to receive 100 commission-free trades and a three month subscription to Motley Fool Stock Advisor Canada newsletter. Use promo code 100FREEMFSUBwhen signing up. Be sure to read the terms and conditions for more information. $10,000 100 commission-free trades 60 days Motley Fool Subscription Promotion April 30, 2015
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 June 30, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999; B)$50,000 – $99,999 C)$100,000 – $249,999; or D)$250,000+ and you may be eligible to receive a corresponding cash-back AND commission rebate. New clients use code GO15 when opening the account. Note: Only accounts opened at one of the three downtown Toronto locations specified can qualify for this promotion. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. A)$15,000 – $49,999 B)$50,000 – $99,999 C)$100,000 – $249,000 D)$250,000+ A) $75 cash back AND 75 commission-free trades B) $125 cash back AND 1255 commission-free trades C) $250 cash back AND 250 commission-free trades D) $500 cash back AND 500 commission-free trades 90 days for commission-free trades. Cash back to be deposited by August 31, 2015. Cash back AND commission-free trade offer May 31, 2015
Open and fund a new account at Virtual Brokers with at least $15,000 and you could be eligible to receive up to 25 commission-free stock or ETF trades good for use for up to one year. Use promo code “TRYUS2015” when signing up to qualify. Be sure to read full terms and conditions carefully. $15,000 25 commission-free trades 365 days Free trades for one year promotion May 31, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $99,999, B)$100,000 – $499,999, C)$500,000+ and you may be eligible to receive a corresponding cash-back or commission rebate. For commission-free trades use code: PST15 or for cash rebates use code: CSINE. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trades OR $50 cash B) 250 commission-free trades OR $250 cash C) 500 commission-free trades or $500 cash 180 days for commission-free trades Cash back to be deposited by February 17, 2016. 500 Free Trade or $500 Cash Back Offer May 17, 2015
Scotia iTrade Open and fund a new Scotia iTRADE account with at least A) $15,000 – $49,999; B) $50,000 -$99,999; C)$100,000 – $249,999; D)$250,000 – $499,999; E) $500,000 – $999,999 or F)$1,000,000+ you may be eligible to receive a corresponding cash back or commission rebate. For commission-free trades use code: LBS15FT or for cash rebates use code: LBS15C. Be sure to read the terms and conditions carefully for rebate and cash back eligibility. Contact Scotia iTRADE for full details on this offer. A) $15,000 – $49,999 B) $50,000 -$99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+ A) 50 commission-free trades OR $50 cash back B) 100 commission-free trades OR $100 cash back C) 250 commission free trades OR $250 cash back D) 350 commission-free trades OR $350 cash back E) 500 commission-free trades OR $500 cash back F) 1000 commission-free trades OR $1,000 cash back 180 days for commission-free trades Cash back to be deposited by January 31, 2016. Larry Berman Seminar Offer – Front and Terms & Conditions May 31, 2015
Scotia iTrade Open a new Scotia iTRADE account with at least $15,000 by June 30, 2015 and you could be eligible to receive up to 100 online trades commission-free (equities, options, ETFs). Use promo code HUN-SP when registering to qualify. Be sure to carefully read full terms and conditions. $15,000 100 commission-free trades (+ free trial of FightDesk platform for 60 days) 60 days 100 Free Trades Offer June 30, 2015
Disnat Disnat is offering new & existing clients $500 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $50,000 $500 commission credit 6 months Disnat $500 Commission Credit Promo June 30, 2015
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,999 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). BMO InvestorLine Refer-a-Friend October 30, 2015
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least A)$100,000 – $249,999; B)$250,000 – $499,999 or C)$500,000+ in net new assets and you may be eligible to receive either: A)$250 cash back OR 125 commission-free trades; B) $500 cash back OR 250 commission-free trades; C)$1000 or 500 commission-free trades. Use promo code 5CASH for cash back promotion or 5TRADE for commission-free trade promo. Be sure to read full terms and conditions for eligibility and further details. A) $100,000 – $249,999 B) $250,000 – $499,999 C) $500,000+ A) $250 cash back OR 125 commission-free trades B) $500 cash back OR 250 commission-free trades C) $1000 or 500 commission-free trades. Cash back: 6 months – 7.5 months Commission-free trades: 90 days (note: commission fees rebated within 45 days after 6 month credit period) Five Star Promotion June 30, 2015
Expired Offers #colspan# #colspan# #colspan# #colspan# #colspan# #colspan#
Open a new account with Credential Direct and fund it with at least A) $25,000 B)$100,000 or C)$500,00+ to receive either A) 100 commission-free trades or $100 cash back; B) 200 commission-free trades or $200 cash back or C) unlimited commission- free trades or $500 cash back. Be sure to read terms and conditions for full details. A)$25,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A) 100 commission-free trade or $100 cash back B) 200 commission-free trades or $200 cash back C) Unlimited commission-free trade or $500 cash back Trades must be used by September 30, 2015 and will be reimbursed on October 15 2015. Cash back deposited October 15, 2015. Credential Direct Spring Promotion April 15, 2015 *expired*
BMO InvestorLine Open and fund a new qualifying account at BMO InvestorLine with at least $100,000 in net new assets and you may be eligible to receive $300 cash back. Use the promo code RSP2015 when signing up for the account. Be sure to read full terms and conditions for eligibility and further details. $100,000 $300 cash back Payout occurs after 6 months RSP 2015 Promotion April 15, 2015 *expired*
Last Updated: April 17, 2015 2:30pm PT

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Qtrade Investor Qtrade Investor will reimburse your transfer fee up to $150 when transferring a balance of $10,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number. $150 $10,000 Transfer Fee Promo April 30, 2015
Scotia iTrade Transfer $15,000 or more to Scotia iTrade from another Canadian brokerage, and iTrade may pay up to $150 in transfer fees. $150 $15,000 500 Free Trade or $500 Cash Back Offer May 17, 2015
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion. $150 $25,000 Credential Direct Spring Promotion April 15, 2015
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
Transfer $25,000 or more 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 info (1-800-567-3343) none
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info. $150 $50,000 Disnat $500 Commission Credit Promo June 30, 2015
Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – March 13, 2015

It’s Friday the 13th. Tomorrow is Pi Day (3/14). As Jerry Seinfeld might irrationally proclaim, what is the deal with all these numbers?

For DIY investors, however, keeping track of numbers is an integral part online investing.  And, with income tax filing deadlines around the corner, now is time of year that many folks will be reviewing numbers – so long as Netflix isn’t on.

In this week’s roundup, we start with an important message for Fraud Prevention Month regarding binary options.  Next we’ll take a look at some interesting numbers from the US brokerages that might add up to an interesting trend for brokerages here in Canada. Also, we’ll take a look at a recent ‘number themed’ promotion launched by one online brokerage in a very curious case of direct target marketing.  Upcoming investor education events will be next on the list and finally we’ll wind down with some interesting investor forum discussions.

A Bad Option

If you’ve ever tried to Google information on options trading, there’s no doubt that you’ve probably come across ads promoting binary options.  While binary options have evolved rapidly to look and feel like they’re legitimate trading alternatives, the disturbing truth is that they are, at best, gambling sites – many of which are unregulated, offshore companies simply out to separate internet users from their money.

Thankfully, the Canadian Securities Administrators (CSA) issued an important bulletin warning Canadians of the murky world of binary options trading.  Although the bulletin named a large number of websites (37) as attempting to solicit Canadian investors, the list is far from exhaustive.

The lines between investing online and gambling are certainly blurry when it comes to ‘trading/betting’ on short term moves in markets.  In fact, the controversy stirred up by Michael Lewis’ book Flash Boys (which happens to be celebrating its 1-year anniversary) highlights how even the biggest financial institutions and best and brightest minds in quantitative finance are exploiting microsecond advantages. What unregulated operators would do in jurisdictions that give them free reign usually spells trouble for an unsuspecting visitor.

Barron’s Rates Interactive Brokers Best Online Brokerage

When it comes online brokerage rankings, the only number that matters is number one.  Interactive Brokers (US), managed to land first once again in the 2015 ranking by Barron’s Magazine, narrowly beating out online brokerage firms OptionsHouse and TD Ameritrade.

As with other rankings and ratings of online brokerages, it is important to understand how the rankings were devised and what components go into the evaluation.   Barron’s online brokerage ranking is one of the more thorough evaluations of brokerages in the US and, although this makes it of limited value for Canadian brokerages per se, it is interesting to see the features and trends available to US online investors (as well as those investors interested in using an online brokerage in the US).

The following 8 categories were evaluated as part of the ranking:

  1. Trading Experience & Technology
  2. Usability
  3. Mobile
  4. Range of Offerings
  5. Research Amentities
  6. Portfolio Analysis & Reports
  7. Customer Service & Education
  8. Costs

Among those categories, Interactive Brokers had the best showing by far when it came to costs.  While anecdotal, many Canadian DIY investors also state that when it comes to pricing Interactive Brokers is very difficult to beat especially for very active traders.  Active traders are particularly sensitive to cost and it is likely why Interactive Brokers is strategically pursuing this segment of the investor market (not to mention that active investors generate almost 10-fold the revenue of an average investor).

For most DIY investors, cost per trade is and remains to be a major deciding factor when it comes a brokerage so it is interesting to see cost being given equal weight to other items when it comes to scoring.  As with all rankings, the priority that individuals place on the particular features as well as the overall experience ultimately determine the right fit.

A Precise Promotion

While some discount brokerages are looking to selectively target particular types of clients, a recent promotion launched by National Bank Direct Brokerage, takes things to a whole other level – 10 decimal places in fact.

The latest promotion launched by National Bank Direct Brokerage targets engineers as well as engineering students and graduates with a 97.4874371859% discount (yes that’s how it is being marketed).

Instead of paying $9.95 per trade, NBDB is offering 25 trades for $0.25 each for a 3 month period for deposits of $20,000 or more (for engineers and engineering graduates) and 10 trades for $0.25 for deposits of $5,000 or more (for engineering students).  The extremely precise discount offer is good until the end of May.

On a side note, it is interesting that NBDB is looking specifically at this group for a special offer.  There is some anecdotal data regarding the kinds of occupations seen with DIY investors and engineers do tend to be more open to DIY investing.  Whether this particular promotion is connected to that data is speculative, however the precise demographic/occupational targeting may be something other online brokerages might be considering after seeing this kind of promotion.

Change of Guard

In an unrelated story, National Bank Direct Brokerage appears to be looking for a new President.  The outgoing President, Nancy Paquet, whom we interviewed late last year, has now taken on the role of VP Partnership with National Bank.  Interestingly according to the job posting, the new president of NBDB will also act as  VP for National Bank, splitting their time between the two roles.

Strategically, bank-owned brokerages such as National Bank Direct Brokerage, are able to compete by being able to tap into the pool of clients from the banking side and vice versa.  The new President appears to have this as part of the mandate coming in.

National Bank Direct Brokerage isn’t the only online brokerage that is seeing some change at the top.  Vancouver based Qtrade Financial Group saw its CEO Scott Gibner depart officially as of mid January.  Currently Qtrade Financial’s board co-chair Bill Packham is serving as interim CEO.

Event Horizon

Lots of learning options (about options) taking place this week.

March 14 – Scotia iTRADE – Top Global Investment Themes for 2015 – Larry Berman Roadshow (Montreal, QC)

March 15 – Scotia iTRADE – Trading with the Expert with Ziad Jasani 

March 17 – Scotia iTRADE – Basic Option Income Strategies with Pro Market Advisors

March 18 – TD Direct Investing – Introduction to Fundamental Analysis

TD Direct Investing – Introduction to Investing in Options

TD Direct Investing – Introduction to Weekly Options

Scotia iTRADE – Equity Strategies Using ETFs with iShares

March 19 – NBDB – Stop orders: A winning solution worth knowing – [Fr]

Scotia iTRADE – The Power Of The Put Option with AJ Monte

March 20 – Scotia iTRADE – Trading with the Expert with Ziad Jasani

From the Forums

A Superficial Situation

As we move into ‘tax season’ there are all kinds of discussions about some of the tax implications associated with investing.  One of the popular (and important) topics is the superficial loss rule and what that means for investors.  This post from the Canadian Money Forum shows one investor’s experience in navigating through their options and the impact of a superficial loss. Also, here’s another helpful link explaining how this rule works.

Urge to Merge

Having only one discount brokerage account is a reality for some and a dream for others.  While there are various reasons individual investors open up (or end up with) multiple investment accounts, consolidating them means making a commitment to a particular online brokerage.  In this post from the Red Flag Deals investing forum, it was interesting to read the responses to one user’s questions about which brokerage to single out.

That’s a wrap for this week’s roundup.  After a bit of a miserable week for those long markets, oil, the loonie, the weekend might offer a bit of a reprieve.  In keeping with our numbers theme, however, it was a pretty rough week for this groom who saw his wedding end because of a failed math question.   Of course nothing caps off a week like watching 14 silly kids just being. So here’s a more jovial send off.  Enjoy the weekend no matter what you’re counting!