Tag: Questrade

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Discount Brokerage Weekly Roundup – September 23, 2019

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

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

Investor Conferences: Getting Together to Chat About Investing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Friction on Twitter: Scotia iTRADE in the Hotseat

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

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

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

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

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

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

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

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

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

Discount Brokerage Tweets of the Week

From the Forums

Freshly Minted

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

Divided by Dividends

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

Into the Close

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

 

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Discount Brokerage Weekly Roundup – September 16, 2019

In the stock markets, is it better to be lucky or smart? Even though the markets closed out the week on Friday the 13th, it seems that fortune is smiling on the markets with indices holding near their all-time highs. Is it a false sense of confidence, or are the “warning signs” no more predictive than superstitions?

In this edition of the Roundup, we dive into the mixed signals being presented by one online brokerage in the US that has some observers thinking that things are going to go from bad to worse for some online brokers. Of course crises happen, and one Canadian online broker provided an interesting demonstration of calm under social media fire on a touchy subject for investors. We’ve trimmed the forum chatter for this Roundup but still have a healthy serving of Twitter content to wrap up on.

Charles Schwab Announces Layoffs

By many accounts, the stock markets remain in good shape. With many indices drifting near their all-time highs, it seems like markets are paying attention to the “strong economy” narratives in Canada and the US, and not so much to the “inverted yield curve” signals that portend economic slowdowns.

If those mixed messages weren’t enough, this past week, the US online brokerage space generated yet another signal that perhaps things aren’t so great in the financial services world in general and in the online brokerage space in particular.

An article in the Wall Street Journal reported that Charles Schwab, the largest online brokerage in the US, would be cutting about 3% of its workforce, or approximately 600 jobs. The primary culprit: interest rates.

To understand why interest rates, and in particular low interest rates, matter so much to an online brokerage like Schwab, it is important to recognize that the size of this online brokerage – which has over $3.75 trillion dollars (USD) in assets under management – plays a significant role in determining how quickly it can navigate through averse economic conditions.

Over the past four years, Schwab has undertaken an important transition in terms of where their revenues originate. As for any online brokerage, trading commissions have been important to the revenues of the firm, however, over the past few years, efforts to diversify away from relying just on commission revenue mean that other fee generating services, such as advice, or growing assets to a massive scale and collecting interest, have come to play important parts in the total revenue of the company.

Their decision to lay off 3% of their workforce appears anchored in cutting costs to stay competitive. Regardless of the exact reasons, an organization the size of Schwab must make moves well in advance of deteriorating business conditions.

Interestingly, they saw the writing on the wall with the battle for lower-price stock commission prices and potentially lower volatility and, as a result of diversifying their reliance on trading commission revenues, have been able to achieve solid growth in new accounts and fend off other low-commission and commission-free competitors. They now generate approximately 6.5% of their total revenues from trading commissions with the remainder coming from other sources such as fee-based advice services (29.3%) and net interest (61.5%).

Not too long after Schwab made these moves to diversify the sources of their business revenue, other online brokerages followed suit by doing something similar – notably TD Ameritrade.

What the job cuts at Schwab signal, however, is that interest rates may stay depressed for quite some time or are going to get much lower. To that end, the importance that people play in the online brokerage business, at least according to Schwab’s math, is dwindling. More automation and reliance on software and digital systems means businesses like online brokerages can do more with fewer people.

Naturally the latest moves by Schwab prompt the question of whether something similar could happen to online brokerages here in Canada?

It is not impossible that the cuts to interest rates that are taking place across the globe impact Canadian financial service players at one level or another. For the online brokerages in Canada, however, there is still a heavy reliance of commissions to generate revenue. And while the Bank of Canada is standing firm on interest rates here, without increased trading activity, or in the face of declining commission prices, there aren’t too many other levers left to pull for Canadian online brokers to make their line of business profitable.

As one writer in the US put it, this is like seeing a “canary lying dead in the mouth of a coal mine.” With negative interest rates showing up across the globe and the calls by the US President for that to happen in the US, and the head of JP Morgan telegraphing that they too are exploring the scenario, the big picture signals challenging times ahead for financial service providers.

For online brokerages in Canada, there are two competing forces at play that will have to be reconciled. On the one hand, lower interest rates, or the spectre of negative interest rates, might prompt individual investors to get out of cash (finally) and into a different asset class for which they would (likely) need an online brokerage account. Conversely, in the face of market volatility and uncertainty that can hinge on a Twitter message, actively trading into the storm also seems like bad move.

Now that the largest online brokerage in the US has decided that it’s time to cut its workforce by 3%, it will invariably raise questions about layoffs at other US online brokerages. As for Canadian brokerages, it seems that as long as interest rates stay where they are in Canada, and there are opportunities to trade in a market that might be immune to Twitter tirades, there might be a bit more of a reprieve.

Nonetheless, if in a hyper-competitive market like the US, the largest and arguably best insulated online brokerage has pared back its head count, what must Canadian online brokerages have to be prepared to do to control costs?

Walking the Talk: Questrade Shifts Stance on Security Breach Guarantee

Peace of mind is, arguably, one of the most important sentiments that a financial service provider can give to their clients. For DIY investors, the Canadian Insurance Protection Fund (CIPF) offers some measure of confidence by protecting the investments of individual investors to the tune of $1 million dollars in the event that the online brokerage somehow goes out of business. In an increasingly online world, however, another crucial piece of coverage that investors seek out and ask for when it comes to parking a significant portion of their nest-egg with a provider is some kind of online security guarantee.

It is against this backdrop that an interesting post, which made it to the Personal Finance Canada thread on Reddit, sparked immediate and comprehensive discussion with investors and eventually culminated in a revision of the Questrade security guarantee.

According to the (now) previous security guarantee policy, Questrade required individuals to report any suspicious activity in their account within four days of that activity taking place. While the policy was not necessarily hidden, it did go unnoticed by many until one user raised this in the Reddit thread, at which point a firestorm of commentary ensued.

The commentary itself makes for instructive and colourful reading. What was most compelling about this incident, however, was the speed with which the questions prompted a response from Questrade, as well as the turn around time for a revision of their security policy. Here is the initial response from Questrade on the Reddit channel, 2 days after the original post:

And here is the follow up response from Questrade indicating that, in fact, they have updated their security policy to require clients notify Questrade of any suspicious activity within six days of receiving a monthly electronic statement.

There are a number of interesting takeaways from this incident that are likely to prompt some changes to take place across the Canadian online brokerage space. One of the first important observations is that online security matters don’t matter to DIY investors until they do.

There were so many DIY investors who were taken by surprise at the Questrade online security guarantee’s “fine print” terms, and when they became aware of the actual details, they were unpleasantly surprised. The massive response from DIY investors will likely prompt other online brokers to review their policies to ensure a) that they’re offering competitive coverage for online security breaches, and b) that they do a better job of communicating that guarantee to their clients.

Another important set of observations relates to the credibility Questrade earned in the face of a potentially significant crisis.

First, they were able to address the issue on Reddit – where they have a history of responding to clients or individuals talking to/about Questrade – and commit to a timeline for resolution. Second, they were able to rectify the situation within a week; a new policy, better terms and a jab at the security policies of other providers for good measure. That whole episode played out publicly on Reddit for the world to go back and comb through, and while there will certainly be spin that could be applied here, ultimately, Questrade righted a wrong in a very public fashion.

Now, granted that Questrade landed themselves in hot water by having a security guarantee structured with such a short time frame for notification, but the key takeaway for customers is that it got resolved. Surely some customers were put off, but for the clients that love and speak up for Questrade, this will cement yet another reason why they would recommend or stand up for the online brokerage in the melee of financial forums. Based on the watershed of concern that was raised by this incident, it is going to be very interesting to see how/if other online brokerages start to highlight online security as a selling point.

Discount Brokerage Tweets of the Week

From the Forums

Accompany or Keep Company?

A Redditor’s financial advisor successfully moved to a new job, and now this Redditor is wondering whether it’s better to follow the advisor, or to stay with the current company.  Read suggestions from the forum here.

Into the Close

That’s a wrap on another choppy week. After what looks like a bit of a reprieve from trade war, the drums of actual conflict were beating again and oil prices are now in the spotlight. There’s likely to be no shortage of news to tune into this week but for the set-it-and-forget-it crowd, thankfully there’s also lots of other places to tune out the drama.

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Discount Brokerage Deals & Promotions, September 2019

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

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

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

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

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

Expired Deals

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

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

Extended Deals

*There are no extended deals to report this period*

New Deals

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

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

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

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


Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

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

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

Referral Promotions

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

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

Transfer Fee Promotions

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

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

Other Promotions

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

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

Digital Advice + Roboadvisor Promotions

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

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

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

Interactive Brokers Big Bet Gets Bigger

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

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

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

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

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

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

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

Stimulus in the Deals & Promotions Section

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

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

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

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

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

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

More Price Disruption Coming

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

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

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

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

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

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

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

Discount Brokerage Tweets of the Week

From the Forums

Pure and (Wealth)simple

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

Asset Tripping

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

Into the Close

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

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Discount Brokerage Weekly Roundup – August 19, 2019

One of the marvels of modern physics is that you can experience “zero gravity” right here on Earth by hopping on a flight of what’s affectionately known as the vomit comet. After diving and rallying and causing many investors to toss their cookies, this past week was a reminder that in spite of fundamentals, predictability is what the current market is lacking. Ironically, it seems like some of that uncertainty is also spilling over into the online brokerage space this year too.

In this edition of the roundup, we profile one newsworthy development at a Canadian online brokerage that’s pushing to add more value to the trading experience for DIY investors. From there, we look at yet another announcement of a CEO resignation at a US online brokerage this year, a signal that the whole space is going through a major shakeup. On a more familiar note, we close out the roundup with chats and tweets from DIY investors in the forums and on Twitter.

Questrade Clients to get Benzinga-Powered News

For longtime observers of the Canadian online brokerage space, one of the curious changes to have taken place gradually over the past few years is that the entities that used to call themselves “discount brokers” no longer do. Instead, the term direct brokerage or online brokerage have come to describe the providers that enable DIY investors to trade the market.

The shift in name away from “discount” is one small but important indication that the industry wants to move away from competing against one another in terms of price. After waves of commission drops, and now the launch of a zero-commission provider, Canadian online brokerages are collectively exploring alternatives to dropping commission prices by delivering “better value” for their clients in the form of new features or enhanced technology.

One of the features that smaller online brokerages have a tough time competing against larger bank-owned brokerages on is research and news. Often, the wealth management branches within banks have armies of analysts and writers to draw from, and as such, can supply DIY investors with a “wealth” of in-depth coverage. Further, their size of client pool justifies them being able provide access to larger newswire services that can be tailored to individual stocks within a watchlist or portfolio.

This past week, however, an interesting announcement crossed our radar, stating that financial news provider Benzinga will be providing Questrade clients premium “access to earnings releases, trade ideas, breaking stories and interviews,” as well as “real-time calendars for earnings guidance, analyst ratings, IPOs, splits, dividends, and more.” Clients of Benzinga in the US online brokerage market include TD Ameritrade, E*TRADE, Interactive Brokers and Tradestation, to name a few.

Interestingly, neither Questrade nor Benzinga’s review of Questrade have yet mentioned this feature (as of the time of writing this roundup), however, for DIY investors at Questrade, getting convenient visibility on key developments that drive action in a stock means an improved trading experience. And, in looking at the firms that Benzinga services, this means that Questrade clients will be getting a competitive solution for research data on Canadian equities – a new venture for Benzinga.

Access to news about equities is certainly not a new feature, but in the race to provide additional value without having to lower trading commissions, it becomes a key differentiator between brokerages. DIY investors trying to decide which online brokerage provides the best value will certainly be looking at price first, however, Questrade has always historically competed well in that category. With this new feature of quick-to-market data being part of the investor experience, it’s clear that Questrade is fixed on giving their higher priced competitors a real run for their money.

CEO of E*TRADE Announces Departure

It looks like 2019 is the year of the turnover at US online brokerages. This past week, yet another head of an online brokerage has announced they’ve moved on.

CEO of E*TRADE Financial, Karl Roessner, surprised industry observers by announcing his abrupt departure from the head of this online brokerage after having stepped into the role in 2016. Last month, the head of TD Ameritrade, Tim Hockey, also announced that he would be stepping down as President and CEO and, earlier in 2019, Thomas Peterffy, CEO and founder of Interactive Brokers, announced he too would be stepping down from the popular online brokerage firm he founded over 40 years ago.

Unlike the situation at Interactive Brokers, however, the departure of Roessner was fairly abrupt, and because it fell between earnings announcements, did not have the same reassuring tone of Tim Hockey’s departure from TD Ameritrade.

With pressures to revenue generation mounting at US online brokerages, including at E*TRADE, this cascade of executive departures will bring with it fresh uncertainty against an already challenging backdrop. After all, the CEO has a crucial role to play in steering the organization and with so much change, it will be hard to know who is steering the ship and how the industry as a whole will respond.

For challenger brands like Robinhood and Tasty Trade, or even bigger players like JP Morgan, the momentary transition by incumbent online brokerages undergoing key leadership changes could be an ideal moment to step up their efforts to win over their competitors’ business. Both Robinhood and Tasty Trade are still founder-led organizations, and as such, are driving towards their vision of their respective businesses.

Within the Canadian online brokerage space, there has been (and perennially is) substantial turnover at the leadership level (e.g. President) at many of the bank-owned online brokerages. Interestingly (and potentially unsurprisingly), Questrade stands out as having the longest standing President of the organization among online brokers. Since it was launched in 1999, Questrade has had the same President & CEO, Edward Kholodenko. Within the Canadian market, even though Questrade has been around for almost two decades, only now is it starting to hit its stride with the online brokerage reviews in terms of overall DIY investors experience, perhaps a nod to the notion that founder-led firms typically outperform peers.

What this latest departure highlights is that it is difficult to do transformational work without a long runway. While progress can be achieved (as demonstrated by both Hockey and Roessner) in a relatively short amount of time, the nature of the ambitions and the ability to see big changes through invariably take time and leadership continuity. To add even more uncertainty into the mix, the next class of online brokerage CEOs are going to have to contend with choppy (and potentially falling) markets, as well as a possible recession. Certainly anyone stepping next into the role of an online brokerage CEO is going to have nerves of steel – oh – and be able to get along with their board of directors.

Discount Brokerage Tweets of the Week

From the Forums

Simply De-fee-ted

Concerned over unexpected fees and itching for a change, this weary investor turns to fellow Redditors for advice. Read through for interesting opinions on other investment options in this Reddit thread.

Hello Downticks, My Old Friend

Fluctuations in the market leave a lot of us with sleepless nights and stressful days. A few confident investors weigh in on dealing with the recent volatility in the following Canadian Money Forum thread.

Into the Close

That’s another wild week in the books. One of the telltale signs of disagreement in the markets is volatility, aka uncertainty. While bonds are usually the smarter securities in the room, there seems to be a consistent theme from “experts” that fears of a recession are just overblown. Which simply goes to show, that nobody really knows where things go from here. Such is the dance. Have a great week!

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Discount Brokerage Deals & Promotions, August 2019

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

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

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

Expired Deals

No expired deals to report at this time.

Extended Deals

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

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

New Deals

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

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

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

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


Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

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

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

Referral Promotions

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

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

Transfer Fee Promotions

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

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

Other Promotions

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

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

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor Offer Type Offer Description Min. Deposit Reward / Promotion Promo Code Expiry Date Link
Discounted Management Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link. $1,000 1st month no management fees KDKFNBBC None Questrade Portfolio IQ Promo Offer
Cash Back Open and fund a new or existing SmartFolio account with at least $1,000 and you could receive 0.5% cash back up to $1000. Use promo code PROMO1000 when opening a new account. See terms and conditions for full details. This offer can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1000. PROMO1000 January 2, 2020 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: August 1, 2019 17:10PT
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Discount Brokerage Weekly Roundup – July 29, 2019

It’s not just temperatures that are rising anymore. Markets, tempers, and purses for eSports tournaments have all made headlines for reaching new highs. For online brokerages, even though trading might be growing, revenues may not be.

In this edition of the roundup, we continue our foray into US online brokerage earnings, with some big headline developments and a more ominous cloud forming on the horizon for the industry. From there, we’ve bundled in a couple of small but interesting stories from developments we spotted at Canadian discount brokerages. As always, we’ve got a healthy serving of chatter from investors in the forums and on Twitter to close things out.

Earnings Wake Up Call for Online Brokerages

Earnings season for the US online brokerages is now officially in the books for another quarter. Despite how competitive the online brokerage industry is in the US, one of the most interesting resources to gain insight into what’s happening behind the curtain is to tune into earnings calls for those publicly traded online brokerage firms. These calls typically feature senior executives – such as the CEO and CFO – sharing their highlights of the quarter as well as answering questions from analysts who are seeking to understand how best to price in the news being disclosed in the accompanying earnings reports.

The latest round of earnings calls provided a number of interesting insights about developments at specific brokerages, as well as about the industry as a whole that anyone who watches the space will certainly want to pay attention to.

Starting first with the biggest news announced by TD Ameritrade, their CEO Tim Hockey will be stepping down. While announcements of this nature are not uncommon, it did seem to catch the analysts off guard – perhaps a compliment to Hockey and the achievement of Ameritrade under his leadership. After all, “if it ain’t broke, don’t fix it,” or so the saying goes.

Ameritrade has experienced significant growth over the 3.5 years that Hockey has been at the helm, and he has seen them through a major acquisition and a number of digital transformation initiatives. So, naturally, the questions coming from most of the analysts on the call were mostly of the “what gives?” variety. They were trying to tease out whether or not the decision for Hockey to step down was driven by a difference in vision for the brand than what the Board had in mind. Fortunately, Hockey did a good job of helping to assuage speculation by clearly stating reasons that weren’t behind his stepping down, however, the shift in leadership at the top will undoubtedly cast some uncertainty onto the future of the franchise.

TD Ameritrade isn’t the only US online brokerage to telegraph a leadership change in 2019. Earlier this year, Interactive Brokers announced a change of leadership that will take place in the third quarter of this year as founder and CEO Thomas Peterffy steps aside on his 75th birthday, and current president of Interactive Brokers, Milan Galik, takes over.

For comparison, however, Peterffy has been at the reins of Interactive Brokers for 42 years, while Hockey has been at the head of TD Ameritrade for 3.5 years. The kind of continuity and long-term strategic execution that comes with such a long tenure is evident in many founder-led enterprises.

The replacement for Hockey is going to be chosen by an executive search firm while by comparison, Interactive Brokers is hiring from within. In fact, the successor to Peterffy has been with the organization for 28 years and has been groomed for the position for the past four years.

Leadership turnover is something that will make waves with analysts, and both they and the competition will undoubtedly take great interest in who will wear the captain’s jersey next at Ameritrade. There is a strong precedent of achieving big things quickly at Ameritrade, so whoever is cast to lead them through their next cycle will have some especially challenging waters to navigate, given what else was uncovered in reviewing the recent earnings calls.

Headline news aside, there was one potentially ominous theme about the online brokerage space as a whole that emerged from the various reports, namely that revenues from trading were decreasing even in spite of higher trading activity.

Here’s what the various brokerages had to say:

  • Schwab: “Trading revenue declined 3% [y/y] to $174M due to a decrease in average revenue per trade, which more than offset higher activity.” (CFO Peter Crawford)
  • Interactive Brokers: Lower commission revenue which decreased $7M, or 4%, from the year-ago quarter. (source)
  • TD Ameritrade: Commission revenue, excluding order routing, was down sequentially on modestly lower client trading volumes and a slight decline in commission rates. (source) Average client trades per day increased 5.2% y/y, however, commissions and transaction fee revenue fell 2.7% y/y. (source)
  • E*TRADE: “Commission revenue of 121 million was down 1 million compared to last quarter, driven by 11,000 lower DARTs and a $0.03 lower CPT.” (source)

As can be seen in the table below, other than Interactive Brokers, the average commission per trade at the major US online brokerages is hovering at about $7 whereas at Interactive Brokers, it’s almost half that amount, just shy of $3.70. Since these prices are in USD, that puts most of the major online brokerages at about $9.20 per trade CAD and Interactive Brokers at $4.85.

Another interesting nuance to the earnings is in the operating efficiency of each organization. Interactive Brokers boasts an incredible pretax margin of 64% which handily beats out any of their competitors (who are at a not-too-shabby >40% level). This is crucial because Interactive Brokers charges less per trade and yet they are capable of keeping much more of the revenues they generate as profits than their competitors do. Nonetheless, despite their low rates, they too are not immune to falling revenue from commissions.

While it is difficult to map what’s going on in the US online brokerage space directly onto the Canadian market, it’s worth noting that commissions per trade at Canadian online brokerages still have lots of room to fall – especially at the major bank-owned online brokerages who, for the most part, continue to charge almost $10 per trade. Further, it’s clear that unless Canadian online brokerages commit to becoming exceptionally efficient from a technology and automation standpoint, they will have to explore other mechanisms to boost revenues (like digital advice services or premium features) otherwise, their profitability is going to suffer.

Without the pressure of being publicly traded, Canadian online brokerages are free to operate outside of the same kind of quarterly scrutiny that their US brokerage peers have to navigate. This means that the pressure to innovate is going to be largely driven either at the consumer end or internally.

For bank-owned brokerages, there may be some pressure to innovate and capture market share owing to their publicly traded parents, however at most of these brokerages, that pace of change is clearly not the same rate that exists in the US.

One other piece of news that will also help put the latest US online brokerage earnings into perspective is that Robinhood, the US online brokerage that doesn’t charge any commission fees per trade, announced this past week that they have raised US $323M in Series E financing, which puts their valuation at US $7.6B.

When compared against the market cap values for the publicly traded US online brokerages shown above, Robinhood’s latest valuation shows that they are clearly being priced as a material competitor to the incumbent publicly traded brokerages. It is also worth noting that Robhinhood has telegraphed their intention to go public at some point.

There’s lots more to say about the US online brokerage story relative to the Canadian online brokerages based on these latest earnings (if you’re interested in hearing about it, let us know here), but if there’s one key takeaway to reflect on in terms of product “innovation” in the US online brokerage space which has yet to fully take shape here in the Canadian space, it’s the offer of high (any?) interest on cash balances in online brokerage accounts.

Interactive Brokers has certainly paved the way for this in the US, with E*TRADE also following suit. Although they fumbled the initial roll out, even Robinhood is gearing up to win new business by offering up high interest savings for uninvested cash balances. As both a mechanism to attract new clients and entice existing ones to stick around, the evidence from the US online brokerages points to the strength of this feature in hanging on to existing clients.

Screenshot of earnings transcript from E*TRADE Q3 19 earnings call

With the final half of calendar 2019 now underway, the online brokerages in the US (and likely here in Canada) have already started developing their plans for 2020. For Canadian online brokerages, we fully expect some bigger and bolder feature releases to come to market to counter what is a clear trend towards lower commissions. In fact, as the next stories in the roundup show, it’s already starting to happen.

Regardless of where markets head into the back half of the year, things are going to get very interesting for Canadian DIY investors as online brokerages here set about the task of staying relevant in this new operating reality.

CIBC Investor’s Edge Rolls Out Mobile Trading Charts

This past week, we spotted a new feature announcement on the CIBC Investor’s Edge website: the launch of charting capabilities on their mobile trading app “CIBC Mobile Wealth.”

Officially launched in the middle of July, this latest update will undoubtedly be a welcome addition to how online investors track and seek out investing opportunities.

According to the information released on their website, the new charting feature is available for individual securities as well as for indices, foreign exchange, and commodities. In addition, users are able to change time frames, use a limited number of technical indicators, as well as choose from four different chart styles.

While we haven’t yet seen a lot of chatter about this new feature online, scanning some of the pain points that users of the app have mentioned in their respective download reviews, charting does surface as one of the limitations of the CIBC mobile experience. Fortunately for investors and Investor’s Edge, it appears this new feature will enable them to chart a new course in online mobile trading experience.

Questrade Chats with Investors

This past week, we noted that Canadian online brokerage Questrade rolled out an interesting new blog series entitled “The Investor Next Door.” According to the blog post, the Investor Next Door series talks to “everyday Canadians about their investment journeys” in a Q&A format post.

The first post interviews “Brendan Y” about the type of investor they are, their investment goals and style, as well as what their experiences are like in the markets and lessons learned.

After having a bit of a quiet spell on the Questrade blog, it looks like things are potentially coming back to life. There was a notable reboot of activity in February and March and so seeing signs of life, it appears that the team at Questrade is continuing to experiment with something a little different.

Why that is of interest is because Canadian online brokerages are still finding their footing with regards to producing “interesting” content for their clients and other online investors to consume.  In many respects, Canadian online wealth providers have been struggling to catch up to Wealthsimple, who has certainly reshaped the landscape of financial content in Canada by featuring “celebrities” and their stories of money.

It is particularly interesting, therefore, that Questrade is launching their new series about “everyday Canadians” as a direct counterpoint to the celebrity stories. Whether the new content angle ultimately succeeds will largely depend on how compelling the stories of other investors’ performance/lessons are to readers.

With a crowded field for content, it’s going to be a challenge for this written series to stand out.

Questrade has done well with their marketing/advertising campaigns (“asking tough questions”) so it will be interesting to see where this content piece fits in, if at all, to their bigger picture strategy. Regular consumers of financial content online will be asking why they should spend even four minutes reading about Brendan Y or “everyday Canadians” – let’s hope that’s not a tough question for Questrade themselves to answer.

Discount Brokerage Tweets of the Week

From the Forums

Investing in US Stocks with CAD

It seems like the recent boom in the US stock market has non-residents interested. This Canadian investor wants to invest their hard-earned Canadian dollars in the US stock market. Take a look at this Reddit thread to see what advice other individuals gave.

Stocks vs. Property

What’s the better bet to invest in? Whether or not stocks seem more risky than real estate these days is up for debate. See what people had to say about investing in property vs. stocks on this Canadian Money Forum thread.

Into the Close

That’s another trip around the online brokerage space wrapped up. The upcoming week will be full of shrug (and maybe even cringe) worthy moments online. Ironically, despite a rate cut forecast for this week, there’s going to be lots of interest in the US. Keep the popcorn handy for this one.

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Discount Brokerage Weekly Roundup – July 8, 2019

The deal that everyone has been talking about finally transpired. Of course, the Kawhi trade isn’t the only deal getting attention this past week, as a pair of Canadian discount brokers decided to also step back onto the court with some promotional efforts of their own. So much for a lazy, hazy July.

In this week’s roundup, we lead off with updates on the latest deals and promotions activity and why this is a bullish signal for DIY investors now and heading into the latter part of the year. From there, we take a look at how one bank-owned online brokerage is shifting digital gears and taking their online marketing game to the next level ahead of a big web refresh. As always, we’ll dish up a healthy serving of chatter from DIY investors on Twitter and in the forums.

Guess Who’s Back

After what seemed to be a lull in June, the lazy days of summer in the discount brokerage deals section are officially done. Just a few days into the new month and the summer season, and the deals section has seen activity level pick up with one new offer come to market, as well as the extension of a transfer offer that stirred excitement earlier this year.

The first deal to cross our radar came from an unlikely source – HSBC InvestDirect. As a bank-owned online brokerage that typically doesn’t get a lot of spotlight, the launch of a summer offer is both unexpected and excellent timing.

The offer itself is a commission-free trading offer which gives investors up to 30 commission-free trades to use over the span of 60 days. There are no required deposit minimums to qualify for this offer, so in that regard, it’s definitely appealing to individuals who might not otherwise qualify for the other offers currently available which have higher deposit requirements.

While the value of the offer is somewhat limited, the timing of the launch of this offer is very much on target. With a pull back in offers by other online brokerages, HSBC InvestDirect gets a bigger portion of the deals spotlight and does so at a big discount to other points in the year when they might have to go to market with a much pricier option (such as a cash back offer).

The other competitors in the commission-free trade space right now consist of Questrade, Desjardins Online Brokerage and CIBC Investor’s Edge. Only the latter firm has a comparable set of terms as HSBC InvestDirect with regards to deposit requirements, however, the CIBC offer is slated to expire at the end of July, which would leave HSBC InvestDirect as the only bank-owned brokerage with a commission-free trading offer.

Another interesting observation about this promotion is that it is being positioned cleverly as 60 days of commission-free trading, which in one interpretation, suggests 60 days of unlimited trading commissions (which is definitely not the case). Although subtle, it is a unique way of making the offer seem more appealing that it otherwise would if it simply stated the number of trades.

If nothing else, the extra attention that the current promotion will give to HSBC InvestDirect will help them become better known to DIY investors.

The other big deals development this month (so far) has been the extension of the Questrade transfer fee coverage offer.

As we have reported on earlier in the year, this offer is by far the best value offer for DIY investors with less than the usual minimum deposit requirement of $15K to $25K who are looking to transfer accounts.

Interestingly, over the past year and in particular over the past several months, the transfer fee promotion area has seen increasing competitive activity. Questrade’s offer aside, we’ve observed both the increase in the amount that brokerages are prepared to cover in terms of transfer fees (now with two brokerages offering up to $200 as opposed to the previous standard range of $125 to $150) and the decrease in the minimum deposit amounts required to qualify for this offer (3 brokerages have now lowered their minimum deposit requirement to $15K).

For DIY investors, the latest two moves are a good signal of the health of the competitive online brokerage market and are a positive indicator of things to come. With stock markets pushing new all-time highs, there’s a reasonable chance that more investors currently on the sidelines will be pulled into the markets, meaning it’s likely they’ll be looking to open a new account or start putting capital to work. Lucky for them, there’s at least one more brokerage ready willing to offer an incentive to sweeten the deal.

Banking on Buzz: BMO InvestorLine Previews New Web Platform

If there’s one thing that online brokerage rankings offer Canadian discount brokerages, it’s more time in the spotlight. Not everyone makes it into the winners circle, however, and what is interesting to take note of is how those who don’t make the top of the podium still manage to make headlines. In the case of Qtrade Investor, the reaction was fairly swift, as they published a news release shortly after the announcement of the latest MoneySense rankings in which they highlighted their strong position as a top online brokerage (even though they didn’t land the #1 spot per se).

Another online brokerage which is typically also very savvy at managing the marketing around the rankings is BMO InvestorLine. This go-around, however, instead of positioning themselves as a top bank-owned online brokerage as part of the rankings, they elected to get people talking about their services with a profile of their new platform in an interview with the Financial Post. 

Unlike a traditional news story, however, the latest profile of BMO InvestorLine had components that included the familiar format of a written story as well as promotion on social media and, a new twist, video of the interview with the president of BMO InvestorLine on YouTube.

Having covered numerous website redevelopments and relaunches from online brokerages over the past several years, it wasn’t so much that there is a new website coming – which in and of itself, is worth talking about, given the associated technical and user experience challenges. Instead, it was the way in which the roll-out of the new website is being telegraphed.

This new omnichannel approach to spreading the message about an upcoming feature release signals a shift in the way online brokerages are likely to develop and talk about innovative improvements.

First, for an online brokerage to telegraph the launch of a new website this far in advance is unusual, although not unheard of. With RBC Direct Investing’s launch of their new interface, for example, there were early test versions to ensure that things went smoothly, and news of the upcoming change was sent to clients well in advance to let them know. Unlike independent brokerages, for bank-owned brokerages, continuity between the banking brand and the online investing brand experience (including what it feels like to switch between the two) is important to consider (and to get right).

Another interesting facet of this story is that the Financial Post was given a “behind the curtain” view of the nerve centre of the InvestorLine development hub. In that way, readers of the story – some of whom might be InvestorLine clients (and probably a few competitors) are given a sense of how the team operates and what the brand is doing to keep up with trends – and in some cases even get ahead of them.

As we have identified in the annual look back and look ahead article, one of the most important indicators consumers are likely to gauge an online service by is how “innovative” they are – i.e. how prepared for change are they? And how quickly can they change?

In the conservative world of traditional finance, change has historically been a dirty word, but in the new world of fintech, change is not just a constant but an objective. At the crux of the interview with BMO InvestorLine’s president, Silvio Stroescu, is that BMO InvestorLine is changing and preparing themselves to change with the evolving needs of their clients. With the competition to entice clients to switch heating up, it makes a compelling argument to stay put if your online brokerage is constantly pushing out new features and if those features are delighting customers like you. Two very big “ifs” that a few other online brokerages have demonstrated time and again work when done right.

Taking a big picture perspective, BMO InvestorLine has invested considerable energy and capital into the development and launch of a new web platform. A website three years in the making is an eternity in the internet age, which changes at a timescale now measured in weeks – or as agile teams know – in two week sprints.

For BMO InvestorLine to telegraph this launch, and go through the motions of a lead up that included video, social media and an article, means that when things go live, they’re hoping it will make an impact with consumers. And to ensure it does, they’re committed to marketing it aggressively.

What this latest tease from BMO InvestorLine shows, however, is that something has fundamentally changed about how Canadian online brokerages – including highly competitive bank-owned brands – are prepared to compete.

BMO InvestorLine has demonstrated a fine balance between keeping the project under wraps for long enough that competitors might not catch on, but revealing it ahead of time to build curiosity and interest and demonstrate a level of transparency about the new feature that other brokerages haven’t really been able to do. While it’s not quite a “come at me bro” moment, it’s fairly close.

Perhaps the most interesting thing about this new web platform release is that for the first time in a long time in the online brokerage space in Canada, there’s a genuine curiosity about what will happen next. In addition to launching a website refresh, BMO InvestorLine might have just touched off a new battle in multichannel marketing.

Discount Brokerage Tweets of the Week

 

From the Forums

Million Dollar Baby

A new DIY investor seeks advice on how to invest a large inheritance. See what advice fellow forum users provided in this Canadian Money Forum thread.

Tax Free as a Bird

One DIY investor has questions about how to incorporate a TFSA into their current portfolio. Click here to see what answers the Reddit community provided.

Into the Close

It wasn’t just the ground in California that seemed a bit shaky heading into the end of the week. In spite of the good news on the jobs front, the stock markets in the U.S. were starting to look at the odds of an interest rate cut in much the same way Raptors fans were thinking about Kawhi sticking around the 6ix. Alas, we know how one of those ended. Regardless, with markets trading near all highs, the week ahead should be filled with even more drama than Kawhi-watch. Here’s hoping you don’t get hooped by the volatility this week!

 

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Discount Brokerage Weekly Roundup – July 1, 2019

Happy Canada Day! It’s great to be back in the saddle again and happily there’s great news to report since the last update a couple of weeks ago. With U.S. markets touching new highs, summer is off to a strong start. Interestingly, so too are a couple of Canadian online brokerages, to the point where other online brokers may not be getting time off to just kick back and relax because they’re going to be playing catch up.

In this edition of the roundup, we wade back into a much shallower deals pool for July and profile the latest turnover in offers for DIY investors. From there, we take a look at a popular online brokerage ranking that was recently released and highlight a dark horse contender that is showing signs of becoming a mainstream brokerage of choice for more Canadian investors. In keeping with roundup tradition, we cap things off with a dollop of chatter from the investor forums as well as from DIY investors on Twitter.

Deals & Promotions on Cruise Control

With the new month comes the usual check-in on the deals and promotions front. This month, it seems like Canadian discount brokerages are gearing down and preparing for what will likely be a very competitive fall and winter. For DIY investors, it means that the deals and promotions in July are more of a lazy river rather than wild water adventure of savings.

There were no big deals to announce at the outset of the month (although technically it was Canada Day so often times promotional news gets delayed because of holidays), however, it is noteworthy to see who is left on the field with promotions during July.

Unlike RRSP season where practically all Canadian discount brokerages were offering some kind of incentive offer, this month there are just two major bank-owned brokerages with cash back or commission-free trade offers: CIBC Investor’s Edge and BMO InvestorLine. In the case of Investor’s Edge, their commission-free trade offer is set to expire at the end of July, whereas for BMO InvestorLine, their promotion extends through to the very beginning of September. Aside from these two firms, the other two noteworthy firms with offers of commission-free trades are Desjardins Online Brokerage and Questrade.

In terms of cash back offerings, what is particularly interesting is something we had mentioned in a previous roundup regarding BMO InvestorLine, namely that their latest tiered cash back promotion has a much higher minimum deposit requirement than previous offers or peer offers. A minimum deposit threshold of $250,000 prices quite a few investors out of that offer, but does signal that BMO InvestorLine is interested and willing to create incentives for individuals with sizable portfolios to give BMO InvestorLine a try. What is also interesting about the upper level of this offer, namely the $2M+ deposit range, is that there aren’t any competitor offers at this level and it is likely the first time that there is a cash back offer for a deposit of this size. Previously the high-water mark was deposits of $1M+ so anyone bringing over more than that would simply have to make do with the bonus offered at the top end of the tiered range.

For those intent on opening an account with less than $250,000 there are still a couple of strong offers from either Questrade or CIBC Investor’s Edge that offer up free trades or cash back.

That said, even though we are not anticipating a watershed of deals to hit the market this summer, it is hard to imagine the field of Canadian online brokerages allowing only four main players to remain unchallenged until September. The resurgence of interest in Bitcoin, a healthy IPO market, and signs of a “melt up” in the stock markets mean that investors may find another reason to step off the sidelines and into the markets this summer. Further, based on the performance of several online brokerages in the latest MoneySense rankings (see next story), there is now  greater impetus for follow up promotion activity.

For now, however, we’re on the lazy river ride – so best to kick back and relax for as long as possible until the competition picks up again.

Best Canadian Online Brokerages for 2019 Announced

With the return of summer, it’s also time again for the annual MoneySense magazine Canadian online brokerage rankings for 2019. As with previous years, financial services research firm Surviscor provided the analysis for these rankings, and provided seven different categories in which different online brokerages were considered to be “the best online brokerage” for something.

This year, the best online brokerage overall according to these rankings was Questrade, which was a close second in last year’s rankings. While the numerical scores weren’t released this year, it was interesting to note how close the two firms were last year. Interestingly, it wasn’t necessarily who came out on top this year, but rather who entered and exited the top five.

MoneySense Best Online Brokerage Rankings: 2018 vs 2019
Rank 2018 2019
1 Qtrade Investor Questrade
2 Questrade Qtrade
3 Scotia iTRADE TD Direct Investing
4 BMO InvestorLine Interactive Brokers
5 BMO InvestorLine

 

The table above shows the best online brokerages for 2018 compared to the best online brokerages for 2019 and while the selection is largely the same (albeit in a different order), this year saw Scotia iTRADE exit the top group and Interactive Brokers enter. In fact, for the 2019 rankings, Interactive Brokers managed to come in at fourth place, ahead of BMO InvestorLine.

There are two important takeaways from the shift observed in this year’s rankings. First, despite Scotia iTRADE lowering their standard commission rates to the widely adopted ~$9.99 level, they nonetheless were displaced from the rankings by a lower-cost competitor. Second, and perhaps most importantly, Interactive Brokers has now started to become a part of the mainstream investor rankings.

After years of having to sit on the sidelines because it was perceived to be an online brokerage for sophisticated or active investors only, Interactive Brokers Canada is starting to be considered a “mainstream” choice. Although not a whole lot about the Interactive Brokers interface has become any simpler per se, the addition of registered accounts like a TFSA and RSP have made them a viable option for many Canadian DIY investors willing to roll up their sleeves and learn how to navigate the Trader Workstation.

One very interesting observation from this year’s online brokerage rankings is that when it came to designating the best online brokerage for customer service, while Questrade scored first, there was a three-way tie for second between Qtrade Investor, RBC Direct Investing and Interactive Brokers.

Based on historical performance and assessment of customer service, it is nothing short of stunning to see Qtrade Investor in a tie with Interactive Brokers, as the two firms could not have more opposite reputations in terms of client service. In terms of Qtrade Investor, there is a well documented trail of accolades of its commitment to service, and almost the same is true for the absence of “hand holding” service from Interactive Brokers. So, to see both of these firms tie for second best in terms of service will definitely raise eyebrows across the industry.

With the inclusion of Interactive Brokers in the Globe and Mail online brokerage rankings, and now cracking the top five in the MoneySense magazine rankings, it’s becoming clear that the online brokerage field in Canada will have to contend with Interactive Brokers’ feature set and pricing more so than at any time in the past.

For DIY investors looking for assistance in making a decision on which online brokerage is best, these rankings are of mixed value.

On the one hand, there is a short list of five firms that have been considered to be “the best overall,” implying that all things being equal, these firms are not necessarily a bad choice. Conversely, with seven categories of best online brokerage, it highlights how certain brokerages do certain things better than others.

Looking at firms who appeared in multiple categories, to Questrade’s credit, they were either the top or in the top two spots in five of the seven categories. Qtrade Investor also appeared in a top two finish in four categories. Curiously, Interactive Brokers earned a top two finish in three categories compared to TD Direct Investing which earned a top two finish in two categories. Nonetheless, TD Direct Investing outranked Interactive Brokers. This last point is especially relevant when considering the progress Interactive Brokers has made in becoming more of a “mainstream” contender, because it suggests that Interactive Brokers may be very close to a top three (or higher) finish overall unless something very innovative is launched by a competing online brokerage.

For the rest of the online brokerage field that did not achieve a top ranking in one of the seven categories, it appears that there is going to be a challenge to overcome the value propositions already on the table. Change in the online brokerage space is largely evolutionary rather than revolutionary, and even with a zero-commission player on the field in Wealthsimple Trade, there are still other brokerages being considered to be better for fees.

The big picture emerging for DIY investors is that services, features, and value will have to improve at firms not ranked in the top five. Those firms will have to move decisively to win over customers who are starting to hear more and more positive rankings and ratings from firms who previously were “outsiders” like Questrade and Interactive Brokers. We’re very much looking forward to seeing which online brokerages start to step up their game in response to a shifting power structure in the Canadian online brokerage market.

Discount Brokerage Tweets of the Week

From the Forums

Golden Years

A poster on RedFlagDeals seeks advice on ways to help their parents save for retirement in a few years’ time. Click here to see what strategies fellow forum users recommended.

Striking a Rebalance

A newcomer to the DIY investing world has questions about the best way to rebalance a portfolio. See what advice other investors provided in this Reddit thread.

Into the Close

That’s a wrap on the Canada Day edition of the roundup. This will be an interesting week for traders given the holiday for Canadians to kick things off, and the holiday for U.S. Independence Day later on the week. One thing is for sure, there will undoubtedly be fireworks – whether it’s because of what’s going to happen now that the tariff standoff is starting to thaw or because of where Kawhi Leonard decides to go next. Have a great week!

 

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Discount Brokerage Deals & Promotions – July 2019

*Updated: July 8* Despite all the fanfare and celebration that typically accompanies the beginning of July, it seems like many Canadian online brokerages are taking a bit of a break from the promotional game. Heading into the first official month of the summer, the discount brokerage deals section appears to be keeping its cool with two big offers expiring in June and no new offers coming to market just yet.

Of course, it being Canada Day, online brokerages are closed at the time of posting this update so there may be something interesting to emerge in the early part of July. Even so, this is one deals pool that we’re not holding our breath in at this point.

Despite rallying markets, a rebound in cryptocurrency and hot IPOs, there’s been muted participation in the deals section – which is not to say that there aren’t promotions in the works – but for the time being, it’s more of a lazy river than a wild water park of savings for DIY investors.

It’s not all bad news for investors or the online brokerages who are still hanging in there with promotional offers, however. There are still a handful of offers – ranging from commission free trades to cash-back offers – for DIY investors to choose from.

As always, we’ll be keeping an eye out on the deals activity during the summer months but if there are any you think would be great to share with readers that we’ve not posted yet, please mention them in the comments or let us know.

Expired Deals

There were two noteworthy offers that expired in June. The first was the RBC Direct Investing cash back offer. This promotion was fairly short-lived and offered up between $100 and $1,000 depending on the amount deposited (ranging between $25,000 and $500,000+).

The second big offer to finally expire was Questrade’s transfer fee coverage promotion. It was a definite game changer in that there was no stated minimum deposit required to have transfer fees covered. Now that the offer has expired though, Questrade is reverting back to the standard minimum deposit requirement of $25,000 to have transfer fees waived.

Extended Deals

*Update July 22 – CIBC Investor’s Edge have extended their commission-free trades promotion for an extra 9 days.  See table below for more details.*

*Update July 8 – Much like a cat, the Questrade transfer fee promotion has found yet another life and is now extended until the end of September. See table below for more details.*

No deals were extended at the outset of July.

New Deals

*Update July 8 – HSBC InvestDirect jumped back into the deals pool with a new commission-free trading offer. This promotion offers up 30 commission-free trades to new and existing clients who open an eligible account. There is no minimum deposit required for this offer. See table below for more details*

No new deals crossed the wire at the beginning of July, however there was a new deal from BMO InvestorLine which did launch in June and which is a unique offer in that it targets a very high minimum deposit tier for investors to qualify. This offer is a cash back promotion that offers between $500 and $2,500 cash back for deposits ranging from $250,000 to $2M+. It is the first time in recent memory that an online brokerage has created a cash back tier for a deposit level so high. Also, it is one of the highest starting points for an offer – perhaps a signal that BMO InvestorLine is targeting higher deposit amounts across the summer (given that this offer is live until the beginning of September).

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open a new qualifying account with CIBC Investor’s Edge and you may be eligible to receive 100 commission-free trades. Eligible trades include equity, ETF and options trades (per contract charges still apply). Commission-free trades are good for up to 90 days after account opening date. Use promo code EDGE28 when signing up. Be sure to read terms and conditions for full details. n/a 100 commission-free trades 90 days CIBC Investor’s Edge Free Trade Promotion August 9, 2019
Open a qualifying account at HSBC InvestDirect and you may be eligible to receive up to 30 commission-free North American equity or ETF trades. No minimum deposit is required for this offer and it is open to new and existing clients. Trades are eligible to be used for up to 60 days. See terms and conditions for full details. n/a 30 commission-free trades 60 days HSBC InvestDirect Summer Offer September 30, 2019
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive $88 in commission credits (up to 17 commission-free trades). Use promo code SPARX88 when signing up. Be sure to read terms and conditions carefully. $1,000 $88 commission credit 60 days Access this offer by clicking here: $88 commission-credit offer . For full terms and conditions, click here. none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2019
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo none
Open and fund a new qualifying account with at least $25,000 and you may qualify for one month of unlimited commission-free trades and up to one month free of an advanced data package. Use promo code ADVANTAGE14 when opening a new account. Be sure to read terms and conditions for full details. $25,000 commission-free trades for 1 month + 1 month of advanced data. 1 month Active Trader Program December 31, 2019
BMO InvestorLine Open a new qualifying account or fund an existing qualifying account at BMO InvestorLine with new assets worth at least A) $250,000; B) $500,000 or C) $2M+ and you may be eligible to a cash back reward of up to A) $500; B) $1,000 or C) $2,500. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. A) $250,000 B) $500,000 C) $2M+ A) $500 B) $1,000 C) $2,500 Cash back will be deposited the week of March 16, 2020. BMO InvestorLine Summer 2019 Campaign September 3, 2019

Expired Offers
Last Updated: July 22, 2019 11:30 PT

Referral Promotions

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

Expired Offers
Last Updated: July. 1, 2019 17:45 PT

Transfer Fee Promotions

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

Expired Offers
Last Updated: July 8, 2019 16:30 PT

Other Promotions

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

Expired Offers
Last Updated: July 1, 2019 17:30 PT

Digital Advice + Roboadvisor Promotions

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