This mobile trading website review covers the major features of Qtrade Financial’s MobileWeb as well as some of the strengths and limitations for self-directed investors looking to trade on the go on this platform. Access to the mobile website is possible by pointing a mobile browser to www.qtrade.ca.
As with the previous mobile trading reviews, a video walk-through was done (see below) to demonstrate what it is like to navigate through the different portions of the mobile website as well as what it is like to look up a quote.
Given the large number of features on the mobile trading website, the video is a bit long. For viewers who wish to skip to the conclusion/summary, simply go to the 23:50 mark in the video.
Methods
The review of the mobile trading website was done using an iPhone 4S and with a 4G internet connection. A screenshot (below) was taken before the test to illustrate the connection speed, which came in at 3.3 megabits per second (Mbps) on the download and 0.54 Mbps on the upload. The test was conducted from downtown Vancouver and the signal was about ¾ of full strength.
The term “mobile trading” doesn’t mean the same thing today that it did a few years ago. As little as 5 years ago, the notion of trading on the go would have typically been thought of as something you would do with your laptop, palm trees swaying in the background. Today, however, an entirely new reality around mobile trading has emerged. Smartphones, superphones, phablets and tablets have, for the time being, come to define what it means to truly do anything mobile.
Instead of the fabled island escape where an investor could sit on the beach to trade, today’s mobile investor wants to be able to be able to trade with one device amidst the realities of a busy life. With sufficiently powerful devices and increasingly fast wireless internet, the ingredients for supporting the new kind of mobile trading are now here. Whether discount brokerages have kept pace is another story.
Keeping up with the technological Jones’
For investors considering making mobile trading part of their money management lifestyle looking at the mobile trading platforms available from discount brokerages provides an almost evolutionary snapshot of the attempts (or lack thereof) of discount brokerages to keep pace with technology and consumer trends.
At last count, 10 Canadian discount brokerages offered some kind of mobile support ranging from the ‘mobile-friendly’ websites which were built to make trading accessible to early phone-based web browsers to the latest dedicated apps for the most popular devices and mobile operating systems. Unlike 5 years ago, those brokerages that don’t support mobile trading in some dedicated fashion are now in the minority.
To help self-directed investors make sense of the mobile trading experience, we’ve put together a series of reviews of the mobile trading platforms offered by several discount brokerages. These reviews will walk through the app itself and provide viewers with an impression of the mobile platform’s user experience when researching stocks, ETFs or options, obtaining quotes, placing a trade, managing accounts and accessing news.
To access the mobile trading reviews, click the links below:
The discount brokerage deals activity remains largely in a holding pattern as we move into August. While there were a couple of noteworthy deals that expired in July, the bigger news last month was Questrade’s announcement that they would be re-introducing their unlimited trading offer. Currently Questrade is offering the most promotions of any Canadian online brokerage however with four major promotions set to expire at the end of August and one in early September, there are plenty of opportunities for other discount brokerages to step up their promotion activity. We’ll be watching the chatter closely this month as there are already signs certain discount brokerages are making some interesting moves to improve their existing and potential client experiences.
Expired Discount Brokerage Deals
The major deal that expired in mid-July was TD Direct Investing’s 50 Free Trade offer along with their transfer fee promotion. Our search data shows that there is still some interest in the deal, so there is likely some appetite for this offer still out there. TD Direct Investing, however, rarely ran these kinds of deals in the past so it may be some time before something like it returns.
Extended Discount Brokerage Deals
Scotia iTrade’s Refer-a-Friend promotion has been extended to August 31st.
New Discount Brokerage Deals
Questrade announced the return of their Infinite Trading promotion which offers 3 months of commission-free trading for deposits of $50,000 or more. For deposits between $10,000 and $24,999 they offer 1 month of commission free trading and for deposits between $25,000 and $49,999 new signups receive 2 months of commission-free trading. This deal expires August 31st, 2013.
Discount Brokerage Deals & Promos
Company
Brief Description
Minimum Deposit Amount
Commission/Cash Offer Type
Time Limit to Use Commission/Cash Offer
Details Link
Deadline
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.
Open a new margin account with National Bank Direct Brokerage before August 31st 2013 and receive a 1% discount of prime for a margin interest rate. Also, commission rates will be fixed at $6.95 for 3 months. Be sure to read the terms and conditions as well as understand the risks associated with trading on margin. Use promo code: “MARGIN2013” when signing up.
n/a – while no minimum deposit is required, you must pass a credit check to qualify
1% of prime rate for margin borrowing $6.95 fixed commission rate for 3 months
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.
Open a new account (TFSA, Margin or RRSP) by August 31st with A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code 100Free95 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.
Open and fund a new registered, margin or TFSA account and fund it within 30 days with either A)$10,000 B )$25,000 or C)$50,000 and you will be eligible to receive either unlimited free trading for A) 1 month, B) 2 months or C) 3 months depending on your deposit amounts. You must the code UNLIMITED to qualify. This is open to new and existing clients. There’s lots of fine print so be sure to read the details link.
A)$10,000 B)$25,000 C)$50,000
Unlimited trading (No commissions charged on any trades placed)
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:$199.80) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $999)
Open and fund a new Scotia iTRADE account with at least $25,000 before September 30, 2013 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code 100FT. See details link for further terms and conditions.
$25,000
100 commission-free trades ($999 value @ $9.99 commission rate)
Open a new account with National Bank Direct Brokerage before Oct. 31st and the commission rate for equity transactions will be fixed at $6.95 for 6 months. Use promo code: EVENT2013. Since this is unadvertised, you’ll have to call their customer service line: 1-800-363-3511 for full details.
$25,000
$6.95 fixed commission rate for 6 months
6 months
Click here for a low-res version of flyer or here for a high-res version.
October 31, 2013
If you refer a friend/family member who is not already a National Bank Direct Brokerage account holder to them, both you and your friend get a bonus of $100 each. The promotion code “FRIEND” must be used on the account application form. Read the details link for full terms and conditions. Note the maximum referral bonus per client is $1000.
Open a new account (TFSA, Margin or RRSP) and receive 30 days of commission-free trading and one month free of the US Advanced market data package. Use promo code ADVANTAGE when signing up. Offer is open to new clients only. There are a number of important conditions to qualify – be sure to read terms and conditions to the deal.
$25,000
30 days unlimited commission-free trading + 1 month free Advanced US market data package.
Disnat is celebrating its 30th anniversary by offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat30. See details link for more info.
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.
A) $50,000 – $249,000 B) $250,000+
A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100
Payout occurs after 60 days (subject to conditions).
Refer-a-Friend terms and conditions can be located by logging into the InvestorLine panel under “account services” or by contacting BMO InvestorLine directly
December 31, 2013
Open a new account or upgrade an existing account with $100,000 and choose to receive either $250 cash back or 2000 Air Miles. Use Promo Code: BONUS250 to receive the cash back offer or BONUSAM (+ Air Miles Collector #) to receive the Air Miles offer. NOTE: There are lots of details/important conditions attached to this promotion. Be sure to read the terms and conditions carefully.
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.
Disnat is celebrating its 30th anniversary by offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat30. See details link for more info.
In the final part of our series on commission-free ETF trading at Canadian discount brokerages, we look at the offers from Virtual Brokers and Questrade and conclude the series with some lessons learned from researching commission-free ETF offers. If you missed the earlier parts of the series, click here for part 1, here for part 2 or here for part 3.
Commission-Free ETFs at Virtual Brokers
While Virtual Brokers started offering commission-free ETF trading on a limited set of ETFs, in 2012 they rolled out commission-free ETF purchases on all ETFs. Because they have two “commission-free” ETF offers going concurrently, a great deal of confusion appears to have been caused with investors. As such, it bears repeating that at Virtual Brokers, all ETFs can be purchased commission-free but only a certain set of ETFs can be purchased and sold commission-free.
Wording of Virtual Brokers’ commission-free ETF offers (circled in orange) is a bit confusing.
Committing to a list of 100 ETF funds by 17 different fund providers is a bold undertaking within the ETF space. Because funds change according to market forces, staying on top of which funds are still functional proved to be a challenge for Virtual Brokers.
An interesting discovery that was made when looking into the list of 100 ETFs advertised by Virtual Brokers was that their list contained a mixture of duplicate names, miscategorized ETFs and ETFs that had been discontinued. For example, the XID (iShares S&P CNX Nifty India Index Fund) appeared twice in the list (see below); CEW is the ticker symbol for both the WisdomTree Dreyfus Emerging Currency Fund and the Claymore (now iShares) Equal Weight Banc & Lifeco ETF however both were listed as being on the Canadian market (the WisdomTree ETF is listed on the NYSE); four ETFs were identified in the advertised list that had been discontinued for months: DENT, HAG, HIF and XRO; and lastly, many of the ETFs branded as Claymore had yet to be renamed to their new iShares titles.
To Virtual Brokers’ credit, when these issues were pointed out to them, a senior representative confirmed that they would be corrected and after several emails, the list was updated and corrected within 24 hours. The new list has addressed the issues identified above with Virtual Brokers committing to keep their list of commission-free ETFs at 100. ETFs that have been added to replace the discontinued group include First Asset Canadian Convertible Bond ETF (CXF), Horizons Alphapro Balanced (HAA), First Asset DEX Government Bond Barbell Index ETF (GXF), First Asset DEX Corporate Bond Barbell Index ETF and the SPDR Barclays Short Term Treasury ETF (SST).
The fact Virtual Brokers faced a challenge keeping up with their own offers should serve as a lesson to investors. The ETF landscape is highly dynamic and the more specialized ETFs or those that might be more ‘exotic’ are also more prone to being discontinued from lack of investor interest. It would be wise to double check the availability of an ETF on the commission-free list ahead of placing any trades.
Despite the number of ETFs offered commission-free, the majority of funds (>60%) are equity-focused. Unlike the other two discount brokerages’ ETF selections, however, Virtual Brokers’ pool contains a couple of leveraged & inverse-leveraged ETFs which more active traders might find more appealing. Of the three discount brokerages offering commission-free ETFs, Virtual Brokers is also the only one that includes several BMO ETFs. While Virtual Brokers has a more diverse offering of ETF providers (17 providers), over 75% of the commission-free ETF pool comes from only three of those providers.
The fine print on the Virtual Brokers commission-free ETF offer is reasonably straight forward. Two key points to keep in mind for this offer are that in order to be eligible for commission-free ETF trading:
ETFs must be held for at least one business day
ETF trades must be placed via the WebTrader platform
There is no minimum purchase amount required so this is positive news for individuals with more modest portfolios. Also a positive feature, no commissions are charged at the time of purchase (and where applicable at the time of sale). In certain instances, other discount brokerages will deduct a commission fee at the time of the trade then issue a refund for the commission usually within a few days of the transaction.
In this week’s discount broker roundup, we highlight an article launch, how hard it is for discount brokers to be really, really popular and the beginning of what looks to be a busy promotional battle between discount brokerages for self-directed investors’ new business.
More commission-free ETF info
Earlier this week, part 3 of the series on commission-free ETFs was released. In it, there were some key highlights about the commission-free ETF trading offers at Scotia iTrade and Qtrade as well as some interesting stats on the dominant provider of commission-free ETFs for the various discount brokerages. To read part 3 click here.
Don’t hate me because I’m bountiful
For many discount brokerages, keeping up with compliance is simply a cost of doing business. Failure to keep up, however, usually ends up costing more. So it seems that Interactive Brokers has been growing a little too quickly that they let the paperwork on a few of their clients slip. The US arm of Interactive Brokers got a hard lesson in keeping up with their regulatory requirements from the National Futures Association.
While the $300K fine was a small amount for a multibillion dollar company to absorb, the bigger lesson apparently is that no publicity is bad publicity. In the official response from Interactive Brokers, a company lawyer didn’t pass up the chance to sell the features and pricing that Interactive Brokers. The press release also contained a handily placed plug of their 2013 best online broker award win. Well-played Interactive Brokers.
Discount Brokers Making Attractive Offers
While July is usually when barbeque grills are heating up, funnily enough discount brokerage promotions have also managed to flare up all of a sudden. On the heels of the TD Direct Investing 50 trade offer expiry, Questrade, Scotia iTrade and Disnat all launched additional offers to new or existing clients.
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The biggest launch of discount brokerage deals came from Questrade where they announced they’re giving away iPad minis, commission-free trades, and…wait for it… magnets. It seems like the marketing team from Questrade has launched the promotions war with some big guns. Their 3 months of commission-free trading is certainly going to get the attention of their peers, however the innuendo-filled magnets may not be as ‘attractive’ as they think.
As part of Scotia iTrade’s roll out of their iPad app, they are offering clients one free trade (equity or options) for downloading and using the app. As was mused about earlier in the week in one of our tweets, with all of these touch screen devices now being used for trading, will the incidences of ‘fat-finger’ trades be on the rise?
Instead of playing the free commission game, Disnat is going with the ‘free information and research’ route. Disnat is offering 6 months free access to Michael Campbell’s Money Talks online resources for existing Disnat clients. At the end of the 6 months, subscriptions will cost $9.79 plus any extra charges for other site content (such as certain videos).
In the first two parts of this series we touched on the different types of commission-free ETF trading being offered by discount brokerages and provided several tips for investors to keep in mind when considering these types of offers. (Click here to read part one or here to read part two)
In part three of this series, we compare the three providers currently offering commission-free buying and selling of ETFs (Qtrade, Scotia iTrade and Virtual Brokers) and look in detail at the offers from Qtrade and Scotia iTrade.
In the next part of this series, we will look at the offers from Virtual Brokers and Questrade in detail as well as the lessons learned from researching commission-free ETF offers at discount brokerages.
Comparing Commission-Free ETF Trading Offers
Even though Qtrade, Scotia iTrade and Virtual Brokers have limits on which ETFs are eligible to be bought and sold commission-free, the pool of ETFs offered by each brokerage is still sizeable with 60, 50 and 100 ETFs being offered respectively.
Between these three discount brokerages, there are 132 unique ETFs being offered by 17 different ETF providers. Interestingly, all three discount brokerages offer 30 of the same ETFs commission-free. For investors this means that a discount brokerage’s fee structure may be more of a factor to consider than which ETFs they offer.
Despite there being 17 different ETF providers, most of the funds come from only a handful of companies. In fact, four ETF providers contribute 78% of the commission-free ETFs available at Canadian discount brokerages with BlackRock alone offering slightly less than 50% of all the commission-free ETFs. Horizons, BMO and Vanguard respectively make up the rest of the top four commission-free ETF providers.
We’ll now take a look at the offers from Qtrade and Scotia iTrade in detail. In the next part of this series we’ll look at Virtual Brokers’ offers in detail as well as Questrade’s offer and conclude with important lessons learned from researching commission-free ETFs.
Even though we roll into July on a short trading week, the discount brokerage space managed to toss along several newsworthy items. In this week’s roundup, we look at the US discount brokerages pointing to signs of improved investor enthusiasm, some fine tuning of ETF offers at Canadian discount brokerages, and some extra summertime heat in the form of spirited debates on the forums.
Trading Improving at US Discount Brokerages
Interactive Brokers’ latest trading data came on the same week that discount brokerages Schwab, E*Trade, and TD Ameritrade hit new 52-week highs. Trading data from Interactive Brokers showed an increase of 27% over trading volumes at this point last year and an increase of Daily Average Revenue Trades (DARTs) of 4% over May. The recent patch of market volatility likely gave a bit of a boost to trading numbers, however looking at the 12% y/y growth in customer accounts it seems that more data points to investors, at least in the US stepping back into the markets.
Refresh on Commission-Free ETFs
As part of an upcoming piece looking at commission-free ETF trading at Canadian discount brokerages, we took a deep dive into the actual offerings from Qtrade, Scotia iTrade and Virtual Brokers. While looking at the 100 ETF long list on the Virtual Brokers website, a number of discrepancies were spotted included four ETFs listed that were no longer trading and one ETF that had been duplicated. A few emails back and forth and Virtual Brokers refreshed their list making the following changes.
Gone from the list are:
DENT
HAG
HIF
XRO
XID (the duplicated one)
They’ve been replaced by:
First Asset Canadian Convertible Bond ETF (CXF)
Horizons Alphapro Balanced ETF (HAA)
First Asset DEX Government Bond Barbell Index ETF (GXF)
First Asset DEX Corporate Bond Barbell Index ETF (KXF)
SPDR Barclays Short Term Treasury ETF (SST)
More Heat Coming Towards Questrade
One of the most interesting and popular threads to follow on RedFlagDeals is the “Stay Away From Questrade.” Be warned, however, this is not a place for the faint of heart. There is lots of CAPS LOCK screaming and it is generally the place where many come to vent their frustrations about their experience with Questrade or simply stir the pot about trading with a low-cost brokerage. Again, it’s not for the faint of heart, but one particular post this past week about a user’s experience with shorting a stock serves as an interesting reminder to those who short stocks generally.
The lesson: a discount brokerage can recall a stock at any point for any reason. How a discount broker goes about doing this is variable – some brokerages ask nicely, others less nicely. To wade into the thorny forest that is this thread click here.
Cooler Heads Tackle a Potential DRIP-off
For those curious about Dividend Re-Investment Plans (DRIPs), there was a great exchange (pun intended) in the Canadian Money Forum that highlighted exactly how detailed converting dividends from a US stock can get. At issue: the time of day at which foreign exchange rates get used to calculate conversions of foreign currency dividends. While it may be for the real dividend enthusiast, it is still an informative example of a) a more structured forum conversation that the forum mentioned above and b) how much homework DIY investors really do to find an answer. To read more click here.
That’s it for this week’s roundup. On the horizon for next week will be part 3 of the series on commission-free ETF trading as well as a review of a neat research tool for junior mining stocks.
For the most part, many of July’s discount brokerage deals and promotions look to be mostly similar to last month’s offering. First, I’ll recap of the deals that expired at the end of June and then launch into the deals that got extended and round out with the newest offerings.
Expired Deals
Three discount brokerages had their deals expire coming into July:
Scotia iTrade’s 100 Free Trades + Flight Desk Promotion [Now extended to September 30, 2013]
Disnat’s SCATE tour promotion (and transfer fee credit that goes with it)
TD Direct Investing’s 50 commission-free trade offer is scheduled to expire just before mid-July and we will be watching to see what, if anything, will replace it at that time.
Extended Deals
Sometimes it’s just too hard to say good-bye to a deal. Scotia iTrade has extended the deadline for their Refer-a-Friend promotion out to July 31st as well as their 100 Commission-Free Trade offer (extended until September 30th). Questrade has added some more time to the clock of their Advantage promotion, which offers 1 month of unlimited commission free trading, moving its expiry date out to the end of August.
Newly Added Discount Brokerage Deals
Although this is not the first time Questrade has offered 100 commission-free trades, the current 100 commission-free trade offer does make it the only Canadian discount brokerage to have a 100 commission-free trade promotion on the table makes them one of two discount brokerages (the other being Scotia iTrade) to offer 100 commission-free trades. The terms and conditions on the Questrade deal are numerous, so be sure to read and understand the requirements (especially the account funding rules) when considering this offer. The offer is open to new accounts depositing at least $10,000.
Out of the 12 13 deals on this month’s list, Questrade and National Bank Direct Brokerage make up just over half of the offers. Given the competitive nature of the discount brokerage business, however, it is not likely that the remaining discount brokerages will sit out of offering deals for very long.
As always, if there are any deals or promotions that you spot that you think should be featured, feel free to drop me a note here.
Discount Brokerage Deals & Promos
Company
Brief Description
Minimum Deposit Amount
Commission/Cash Offer Type
Time Limit to Use Commission/Cash Offer
Details Link
Deadline
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.
Open a new margin account with National Bank Direct Brokerage before August 31st 2013 and receive a 1% discount of prime for a margin interest rate. Also, commission rates will be fixed at $6.95 for 3 months. Be sure to read the terms and conditions as well as understand the risks associated with trading on margin. Use promo code: “MARGIN2013” when signing up.
n/a – while no minimum deposit is required, you must pass a credit check to qualify
1% of prime rate for margin borrowing $6.95 fixed commission rate for 3 months
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.
Open a new account (TFSA, Margin or RRSP) by August 31st with A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code 100Free95 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.
Open a new account with TD Direct Investing before July 12, 2013 and deposit either A)$5,000 to $25,000 B)$25,000 to $50,000 or C)$50,000 or more to receive commission credits for A) 3 trades, B)10 trades or C) 50 trades. Be sure to read the details about keeping your account balance at qualifying levels, eServices subscription as well as other terms and conditions.
A)$5,000 B)$25,000 C)$50,000+
A) 3 Trades (max value $87) commission credit B) 10 trades (max value $290) commission credit C) 50 trades (max value $500) commission credit
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:$199.80) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $999)
Open and fund a new Scotia iTRADE account with at least $25,000 before September 30, 2013 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code 100FT. See details link for further terms and conditions.
$25,000
100 commission-free trades ($999 value @ $9.99 commission rate)
Open a new account with National Bank Direct Brokerage before Oct. 31st and the commission rate for equity transactions will be fixed at $6.95 for 6 months. Use promo code: EVENT2013. Since this is unadvertised, you’ll have to call their customer service line: 1-800-363-3511 for full details.
$25,000
$6.95 fixed commission rate for 6 months
6 months
Click here for a low-res version of flyer or here for a high-res version.
October 31, 2013
If you refer a friend/family member who is not already a National Bank Direct Brokerage account holder to them, both you and your friend get a bonus of $100 each. The promotion code “FRIEND” must be used on the account application form. Read the details link for full terms and conditions. Note the maximum referral bonus per client is $1000.
Open a new account (TFSA, Margin or RRSP) and receive 30 days of commission-free trading and one month free of the US Advanced market data package. Use promo code ADVANTAGE when signing up. Offer is open to new clients only. There are a number of important conditions to qualify – be sure to read terms and conditions to the deal.
$25,000
30 days unlimited commission-free trading + 1 month free Advanced US market data package.
Disnat is celebrating its 30th anniversary by offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat30. See details link for more info.
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.
A) $50,000 – $249,000 B) $250,000+
A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100
Payout occurs after 60 days (subject to conditions).
Refer-a-Friend terms and conditions can be located by logging into the InvestorLine panel under “account services” or by contacting BMO InvestorLine directly
December 31, 2013
Open a new account or upgrade an existing account with $100,000 and choose to receive either $250 cash back or 2000 Air Miles. Use Promo Code: BONUS250 to receive the cash back offer or BONUSAM (+ Air Miles Collector #) to receive the Air Miles offer. NOTE: There are lots of details/important conditions attached to this promotion. Be sure to read the terms and conditions carefully.
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.
Disnat is celebrating its 30th anniversary by offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat30. See details link for more info.
In part one of this series, we looked at which Canadian discount brokerages are currently offering commission-free ETFs as well as why commission-free ETF trading has started to become so popular. In part 2 of this series, we take a closer look at the types of commission-free offers available and provide some tips for investors who might be considering commission-free ETFs as part of their discount brokerage comparison research.
There’s commission-free and then there’s commission-free
While the term “commission-free ETF” does suggest a no cost transaction, in reality there are a couple of different interpretations as to what “commission-free” actually means.
As the table above shows, there are several ETF commission models being offered by Canadian discount brokerages.
First, there are those discount brokerages that offer a limited selection of ETFs that can be traded commission free – as in commission-free to buy and commission-free to sell. The brokerages that offer this type of pricing are:
Thus the trade-off is that there might be true ‘commission-free’ ETF free trading but only on a handful of ETFs. There are also minimum amounts of time (often at least 1 business day) that an investor needs to hold the ETF in order to qualify for commission-free status.
Another variation on ‘commission-free’ ETFs are from discount brokerages that allow purchases of any ETF commission-free but will charge the normal commission charge on the sale of the ETF. Thus, only the purchase of the ETF is commission-free. The discount brokerages currently offering these types of commission-free ETF purchases are:
The offer from National Bank Direct Brokerage is slightly different in that it allows for unlimited commission-free ETF buying and selling but only of Canadian ETFs and only for a limited amount of time. Although commission-free ETF trading at National Bank Direct Brokerage is currently part of a promotional offer, depending on the response they receive from prospective clients, their promotion could turn into a standing offer in the future.
Whatever the model being used, it is clear that with any ETF commission deal from the Canadian discount brokerages, there are certain strings attached. For self-directed investors, it is important to understand the terms and conditions attached to the ETF commission pricing and be vigilant about the strings that come attached to these offers.
Every day increasing numbers of self-directed investors are either turning to exchange traded funds (ETFs) to meet their investing goals or are learning more about how ETFs could help lower their investing costs. Given the interest in these products by self-directed investors and the commission costs that are associated with buying and selling ETFs, Canadian discount brokerages have not only taken notice but have also sought to leverage this interest to their benefit.
In the first of this three-part series, we briefly review the landscape of commission-free ETF trading in Canada. In part two we’ll look at what types of “commission-free” ETF trading options investors have as well as provide investors with several tips to keep in mind when considering these types of ETFs with a discount broker. Lastly we’ll be taking a look at each discount brokerage’s commission-free ETF offering in detail to see what the pros and cons are of each.
It’s so Hard Being Popular
The case for investors embracing ETFs is relatively simple to make. Essentially, with ETFs investors get most of the benefits of a mutual fund (the two primary ones being professional management and diversity in composition) but at a fraction of the management cost. Beyond the diversity and low management costs of ETFs, one of the biggest attractions for many investors has been the fact that ETFs, unlike their mutual fund counterparts, trade on stock exchanges the same way ‘normal’ stocks do.
The freedom to buy or sell them short, to take options on ETFs and to enter and exit with relative ease has meant that investors of all kinds have a very versatile tool in their wealth creation toolbox to work with.
Ironically, it is the popularity of ETFs that might be their undoing. Data from the Canadian ETF Association (CETFA) shows that ETF landscape in Canada contained 257 ETFs from 6 distinct providers as of May 2013. While their data does show strong demand and interest in ETFs with self-directed investors as well as with institutional investors, a recent article about the state of ETFs suggests that the ETF craze might be plateauing. Data from the US suggests that the sheer number of ETFs may have exceeded the interest and capital that can be allocated to them.
In short, it appears that there are hints of an oversupply of ETFs relative to demand for them. The consequence is a predictable downward price pressure and intense competition.
