Tag: Questrade

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Discount Brokerage Weekly Roundup – December 7, 2020

Take a deep breath. Believe it or not, December is here, and with it, news of several COVID-19 vaccines, stock markets making record highs, and hope on the horizon. Certainly not a coincidence. Another non-coincidence at this time of year is the appearance of special treats and the idea of wrapping things up with a bow.

In this special edition of the Roundup, we turn once again to the topic of deals and promotions, with a regularly scheduled check-in of the deals landscape to kick off the new month. From there, the big announcement: Sparx Trading’s exclusive Look Back Look Ahead series for 2020-2021 is now live! We’ve got a great overview of this unique series that features Canadian online brokers giving their perspective on the past year as well as on what’s coming in 2021. And, as always, we’ve got a full helping of DIY investor comments from Twitter and the DIY investor forums.

De(al)cember Update

The countdown to the end of the year has been going on for some time, but now that December’s here, the finish line to 2020 is in sight.

Despite the gloomy weather and even gloomier forecasts for COVID-19, the SparxTrading.com online brokerage deals and promotions section offers some brighter news. As is customary at the start of each month, we take stock (pun intended) of the deals and promotions landscape among Canadian online brokerages. The good news: this year is as strong as ever in terms of promotional activity among Canadian brokerages.

Although no new deals launched at the beginning of December, a very competitive offer from National Bank Direct Brokerage did get extended for another month. The 100 commission-free trade offer by NBDB is one of the most competitive offers for DIY investors interested in commission-free trades, and with zero deposit requirements, it also has the lowest hurdle.

Last month was a watershed moment for deals and promotions activity among Canada’s online brokerages. After being mostly dormant since the end of RSP season last year, almost all online brokerages decided to launch a cash-back or commission-free trade offer.

Interestingly, there are still a few brokerages currently not on the deals and promotions list, something we anticipate changing either this month or early next month. Firms we expect to see stepping into the promotional space soon are Qtrade Investor, HSBC InvestDirect, and Virtual Brokers, given the fact that other brokerages are already offering something.

Finally, another deal we’re watching this month is Wealthsimple Trade’s “free stock” offer, which is set to expire on December 18th. It is an unusual time for a promotion to end, but it is encouraging to note that the deal is happening at all, since offering zero-commission trading is a significant draw on its own.

With all of these offers currently in play, this is likely an ideal window for online investors interested in an investing account to maximize the selection of promotions.

So, while the weather outside is frightful, this might be the most wonderful time of the year for getting a little extra boost for opening an online brokerage account.

Sparx Trading’s Online Brokerage Look Back Look Ahead Is Live!

More countdown-related content continues to emerge this month, this time from yours truly at Sparx Trading.

Our highly anticipated fourth edition of the Look Back Look Ahead series is here, and – to borrow from Robinhood’s Market Snacks podcast (fair game to borrow from Robinhood, amirite?) – this is the best one yet.

This edition features in-depth submissions from six Canadian online brokerages that offer a fascinating set of perspectives on how 2020 unfolded and preview what they have in store for 2021. In addition, we’ve given our own perspectives on the online brokerages that did not provide a submission and outlined what we thought were noteworthy developments during the year. Finally, we’ve provided a detailed preview of what the next version of SparxTrading.com has in store for DIY investors.

Online brokerages featured in this issue include:

The series is now in its fourth iteration, and it’s interesting to see how things have evolved since we first launched it in 2014. One of the readily apparent changes is that in addition to a blog format, we also have a magazine edition, which we rolled out starting in 2018. Even though it takes considerable work to pull together a magazine format, we thought it was an opportunity to create something great-looking and engaging, which offered a different way to present stories about an exceptionally fascinating year.

One thing that has remained consistent about contributions to the Look Back Look Ahead series has been the unique perspective that only the voices of the online brokerages’ senior leaders can provide. It remains a rare opportunity to hear from senior stakeholders on how the year unfolded as well as their vision for the year ahead.

Another great feature of this year’s issue is that the Q&A format provides an interesting perspective on several points relevant to DIY investors, including:

  • What beginning investors can expect
  • What active investors can expect
  • Which online investing trends they think will matter to DIY investors
  • What user experience means to their firm
  • What sets their firm apart from their peers

As referenced in the beginning of the blog version of this series, there were a number of themes that emerged from the responses and analysis of the online brokerage landscape from 2020. Three big themes that stood out were the need for agility, the importance of communication, and the rising prominence of user experience.

Based on a macro view of what has transpired this year, the consensus is that COVID-19 helped accelerate the future into the present. For the world of online investing, it seems that DIY investors will be looking beyond just the headline price of commissions to the full experience of what it means to be “self-directed.” Case in point: Despite DIY investors having to pay commissions for trades, the industry as a whole saw record-breaking account openings and trading volumes during the height of the market volatility, from March through the summer.

What has become clear, now even more than in previous years, is the need for transparent and ongoing communication in order to create strong relationships with clients. With the heightened uncertainty, communication channels at online brokerages have been tested, and going forward, the hallmark of an online brokerage who “gets it” will be one that excels at communicating with clients proactively. Further, DIY investors will be looking for brokerages to harden the systems that matter in a crisis or in times of extreme volatility. Patience for service interruptions or delays has worn thin, and demonstrating “uptime” is also going to become a marker of quality.

On a lighter note, observant viewers will notice that our cover art tried to capture the work-from-home look, something that embodies the spirit of 2020 for many of us. There are some special details we tucked into the image that we’re sure DIY investors can appreciate. Sticking to the aesthetic for a moment, the soon-to-be-launched new website and content will feature our bull and bear prominently. Unless it’s sensationalistic, a lot of financial content is difficult to engage with, so we hope to continue to provide a more engaging way in which to consume DIY-investor-focused content.

Personally, I found this issue to be an enriching read, and I am excited by the prospect of DIY investors discovering something new and interesting about the Canadian online brokerage landscape as we move through the end of 2020 (thankfully) and into a new chapter in 2021.

To read the Look Back Look Ahead series, click here.

Discount Brokerage Tweets of the Week

From the Forums

And Baby Makes Three

A Redditor in Ontario with a baby arriving soon asks in this post how to establish an RESP and get the full benefit of it – and also wonders if they need to be actively involved after the initial setup.

Exasperated by Exorbitant Expenses

In this post, one frustrated investor wants to know why Canadian brokerages have such high fees compared to their American counterparts. Redditors weigh in with their best theories.

Into the Close

That’s a wrap on this early-December edition of the Roundup. Markets continue to price in optimism around the corner, which should continue to lift spirits for now. There have been some significant comeback stories this past week – including Blackberry – and even more excitement as IPOs like Airbnb and DoorDash prepare their public debuts. One thing’s for sure, there’s lots to keep DIY investors glued to their screens in what was supposed to be a quieter time of year.

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Look Back / Look Ahead: A Review of Canadian Online Brokerages in 2020 & Preview of 2021

After making it through 2020, there are few things that would count as truly surprising anymore. Between COVID-19, the wild US presidential election and everything else that has unfolded this past year, 2021 can’t come fast enough for many of us.

For Canadian DIY investors and Canada’s online brokerages, despite a wild year of volatility, volume and very rapid change the macro picture appeared to be a positive one. Record account opening, revenues from trading and after a sharp selloff, a strong rebound in stock markets have favourably positioned Canadian online brokerages heading into the new year.

In the latest edition of Sparx Trading’s exclusive Look Back / Look Ahead series, Canada’s online brokerages provide a unique snapshot of the past year at their respective firms, as well as provide an enticing view to 2021 – yet one more reason the new year can’t come quickly enough.

This edition is one of the most fascinating yet. If for no other reason, hearing about what 2020 was like at Canada’s online brokerages during such historic times is worth tuning into. There is, however, so much more worth finding out about.

Also included in this issue is a fascinating preview of what Canada’s online brokerages have in store for DIY investors in 2021. Further, our unique Q&A feature zeros in on what beginner and active investors can expect from each online broker as well as what sets each online brokerage apart from their peers.

There is lots more content that DIY investors can dig into, so be sure to check out the featured brokerages that provided detailed submissions of the year that was and what’s coming up.

In the meantime, we’ve put together three key themes that emerged from this year’s series that provide some food for thought when assessing the Canadian online brokerage space.

Theme 1: Agility

COVID-19 forced massive change on everyone, online brokerages included. Withstanding a pandemic-level impact was only one of the major challenges Canada’s online brokerages had to move quickly to address, however.

Compounding the challenge was the sheer volume of interest from DIY investors to open up and fund their online investing accounts. Ultimately it came down to agility, technical capability and operational resilience.

Online brokerages who already had invested in online account sign ups were able to more readily handle the challenges that accompanied the immense interest in opening accounts than those who had to route investors through paper-driven sign up processes.

The key takeaway for DIY investors is that COVID-19 showed which online brokerages were more ‘change ready’ and which features matter during times of heightened market volatility.

Theme 2: Communication

With so much of our lives now digitized, instant access to what’s going on is now the norm. A great example is Uber Eats – where you can find out in real time where your food order is.

In that world, DIY investors will be hungry for more information from their online brokerages. It might be price, it might be service experience, it might be platforms or even promotions. One thing that stands out about online brokerages in 2020 is that those who prioritized connecting and communicating with investors are now better positioned to have their story and message heard.

With so many online brokerages available to service DIY investors in Canada, those that are able to create special content or deliver engaging investor education experiences or simply have a solid, regular communications strategy in place can ensure DIY investors have something worth tuning into.

Theme 3: User Experience

This was one of the more fascinating trends to dive into in this issue of the Look Back Look Ahead feature.

For DIY investors, it was reassuring to see online brokerages define user experience in terms of customer experience. That said, one of the challenges created by 2020 is that there are lots of novice investors who have entered the markets on a whim and for whom the markets only appear to be making new highs.

Providing this new crop of investors with the right tools and resources to navigate the journey of online investing will be important. Further, the balancing act continues between older clients who may not be as tech savvy or inclined towards mobile features, and younger investors who are demanding different aesthetics to websites and apps. Interestingly, there will be several notable upgrades in platforms and online investing experiences coming throughout 2021 so we’ll be curious how different online brokerages tackle the challenges in the new year.

Click the links below to learn about what each Canadian online brokerage had to say about 2020 and what to look forward to in 2021.

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Discount Brokerage Deals & Promotions – December 2020

*Update: December 18* After what has simultaneously felt like the fastest yet slowest year ever, we have finally made it to December! In true holiday fashion, Sparx Trading is here to spread old-fashioned cheer and merry updates as we take a (cautious and socially distanced) step into the final month of 2020. 

Bargain-hunting DIY investors can rejoice. Just because Black Friday and Cyber Monday have concluded, this doesn’t mean there aren’t still great deals to be had. The past month saw an influx of new deals and promotions from Canadian discount brokerages, which are slated to run until the end of 2020 or into early 2021.

Last month, our radar picked up on numerous commission-free trade and cash-back offers from various bank-owned brokerages, including BMO InvestorLine, TD Direct Investing, CIBC Investor’s Edge, Scotia iTRADE, and RBC Direct Investing. Wealthsimple Trade also joined in on the deals action, with a free stock promotion that expires on December 18th. 

Scroll on to learn more about all the current online brokerage deals and promotions for December. We’re keeping a close eye on the deals space, so don’t forget to check back throughout the month for more jolly updates. And if you find an offer that would be great for other DIY investors to know about, please let us know in the comments.

Expired Deals

*Update: Dec. 18 – Wealthsimple Trade’s trade free stock promotion ends on today, December 18th, 2020. Be sure to open an eligible account by 11:59:59 PM EST today to qualify. Full details can be found in the table below.*

Extended Deals

National Bank Direct Brokerage’s 100 free online trades promotion has been extended! The new deadline for this huge free trade offer expires December 31st, 2020. 

New Deals

*Update: Dec. 18 – Qtrade Investor has just launched a promotion for new clients who open an account by March 1st, 2021. Clients who open a new account are being offered two rewards to choose from: a cash reward or preferred pricing trades. See the table below for more details on the promotional rewards, as well as full terms and conditions.*

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
  6. Offers for Young Investors

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
Scotia iTrade Scotia iTRADE is offering two choices for new investors who open accounts before March 1, 2021 and fund it with at least A) $5,000; B) $10,000; C) $25,000; D) $50,000; E) $100,000; F) $250,000; G) $500,000 or H) $1M+: Option 1: you can use promo code C21 to receive cash reward of A) $25; B) $50; C) $100; D) $200; E) $400; F) $750; G) $1,000 or H) $1,500; plus a discounted commission of $6.99 per trade until June 30, 2021. Option 2: Use promo code FT21 and you may be eligible for A) 10; B) 20; C) 50; D) 100; E) 200; F) 300; G) 400 or H) 500 free trades to use for 90 days after the account is funded. $5,000 Cash Back or Free Trades 90 days Scotia iTRADE’s Cash Back or Free Trade Offer March 1, 2021
Fund your new or existing CIBC Investor’s Edge account before Mar 2, 2021 with at least A) $10,000; B) 25,000; C) $50,000; D) $100,000; E) $500,000 or F) $1M+ and you may be eligible to receive a cash back reward of up to A) $50; B) $100; C) $200; D) $500; E) $1,000 or F) $2,000. To qualify, the fund must be from outside CIBC. No promo code required. $10,000 Cash Back Program Page March 2, 2021
Open a new TD Direct Investing account by Mar 1, 2021 with promo code INVESTNOW and fund it with new assets worth at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000, and you may be eligible to receive a cash back reward of up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. The fund must be deposited to the account by April 30, 2021 and at least one trade is placed by June 30, 2021. In addition, you may also be eligible for another $100 cash reward by setting up a Monthly Contribution Plan (min. $100 per month) with the first contribution occur before April 30, 2021. The maximum reward one could receive is $1,100. $15,000 Cash Back TD Direct Investing Cash Back Promotion March 1, 2021
BMO InvestorLine Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $250,000; D) $500,000 or E) $1M+, and you may be eligible to receive a cash back reward of up to A) $100; B) $250; C) $450; D) $950 or E) $2,000. Use promo code SDCASH2000 when registering to qualify. Be sure to read full terms and conditions. $50,000 Cash Back Fall 2020 Cashback Campaign Jan 5, 2021
New clients who open new Qtrade Investor accounts before Mar 01, 2021 have 2 options: (1) Fund your new Qtrade Investor account with at least A) $25,000; B) 50,000; C) $100,000; D) $500,000; E) $1M or F) $2M+ and you may be eligible to receive a pre-paid Visa gift card of up to A) $50; B) $100; C) $250; D) $800; E) $1,500 or F) $2,000. Only first 500 customers are eligible. Please use promo code VISA2K. (2) The first 100 clients who use promo code TRADE695 may be eligible for 100 trades at a preferred commission rate of $6.95 for 6 months. Minimum deposit $10,000 is required. $10,000 Cash Reward or Preferred Pricing 6 months Up to $2,000 Visa Gift Card Offer 100 Discounted Commission Trades March 1, 2021
New accounts opened between Jun 22 and Dec 31, 2020 will be awarded 100 free online trades in one year. This promotion applies to new and existing NBDB clients who use the code “FREE2020” to open new accounts. There’s no minimum funding requirement, however some other restrictions may apply. $0 100 Free Trades 1 year Please refer to the full details of the deal. December 31, 2020
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, 2020
Open a new RBC Direct Investing account by December 31, 2020 and fund it with at least $5,000 by March 5, 2021 and you will receive commission rebates for 25 trades that occur within 1 year of account opening. Be sure to use promo code NTBW2 during account opening. You will be charged regular commissions on the trading date, and the rebate will be deposited back into your account after 3-5 business days. If you are an existing customer to RBC DI, the type of the new account being opened must be different from the account types that you current have. $5,000 25 commission-free trades for a year 1 year 25 commission-free trades December 31, 2020
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, 2020

Expired Offers
Last Updated: Dec. 22, 2020 13:56PT

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
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing 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
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 5, 2021

Expired Offers
Last Updated: Nov 30, 2020 14:30PT

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 none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $200 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 Transfer Fee Promo 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
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
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 $10,000 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 $10,000 Disnat 1% Commission Credit Promo January 8, 2020
Last Updated: Nov. 30, 2020 14:13PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
The minimum commission per equity trade ($1.99) is waived for new accounts from account opening till December 31, 2020. As a result, your commission is just 1¢/share (max $7.99). However, this offer does not apply to Odd Lot orders (i.e. orders with quantity less than 100 shares if price >= $1 or price < $0.10; or less than 500 shares if price in the $0.10 – $0.99 range). Please be reminded that at Virtual Brokers ETFs are always free to buy. $0 No Minimum 2020 – Terms & Conditions December 31, 2020
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 200 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions. n/a Hardbacon Free Trade Promo none
Open a new Non-Registered trading account and fund it with at least $100 by December 18, 2020 and you may receive a random cash bonus ranging from $1 to $4,500. The cash bonus amount will be equivalent to the value of one of the fifteen stocks that have been selected by Wealthsimple Trade for this program. Please refer to the Terms and Conditions for more details. $100 Wealthsimple Trade Free Stock Promotion December 18, 2020
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: Nov 30, 2020 14:16PT

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 a new SmartFolio account and fund it with at least $1,000 and you could receive 0.5% cash back up to $1,000. Use promo code SFNOV1000 when opening a new account. See terms and conditions for full details. This offer is limited to new SmartFolio clients only, and can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1,000. SFNOV1000 January 5, 2021 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Nov. 30, 2020 14:30PT

Offers for Young Investors

Brokerage Offer Type Eligible Age Range / Client Segment Offer Description Min. Deposit Expiry Date Link
Student Pricing Clients with CIBC Smart™ Account for students $5.95 per trade and zero annual account fees not required None CIBC Student Pricing
Broker@ge 18-30 18-30 years old investors Benefits: * 5 free transactions (Minimum deposit of $1,000 required) * No inactivity fees * No asset minimum to maintain for free registered accounts * Exclusive events * Disnat Mobile App $1,000 None Broker@ge 18-30
Offers for professionals & Students Students in selected fields of study Professionals and students in the below fields can benefit from a reduced pricing structure: * Engineering students * Legal, accounting and business students * Healthcare students * Health sciences students * Nursing students Benefits: * $5.95 commission on equities * $0 commission on ETFs * $0 annual administration fee not required None NBDB Student Pricing
Young Investors Offer 18-30 years old investors Accounts holders who are 30 years old or younger are offered 10 free trades each year. After the free transactions, a commission rate of $4.95 per transaction will be applied (which is just half of the regular price). not required None Young Investor Offer
Young investor pricing 18-30 years old investors Benefits: * $7.75 commissions for stock and ETF trades * No account minimums * No quarterly admin fees min. $50 a month through pre-authorized contributions. None Young Investor Pricing
Waiver of account maintenance fee Clients who have RBC Student account, currently or in the past 5 years. The Maintenance Fee ($25 per quarter) is waived, regardless of the account balance. not required None Zero Account Management Fee
Young Investors Offer Clients below 26 years old Low activity account administration fee and the RSP account administration fee are waived. not required None Young Investors Offer
Zero Account Administration Fee Clients below 26 years old The account administration fee ($24.95 per quarter) is waived. not required None $0 Account Administration Fee
Last Updated: Nov. 30, 2020 14:25PT

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Discount Brokerage Weekly Roundup – November 30, 2020

Hard to believe but the end of 2020 is almost here. Then again, a lot of what’s happening is surreal. With stock markets continuing to rise alongside COVID numbers, and increasingly tightening restrictions here in Canada to try to wrestle the virus into control, it’s hard to believe there is good news to be found. Fortunately, hope springs eternal, and while there are definitely some challenging times ahead, we’re glad to be able to share a slate of stories of things to look forward to from online brokers.

In this month-end edition of the Roundup, we take stock of the activities that stood out in November – including the influx of deals and promotions for DIY investors. Staying on theme, we also dive into some important developments and exciting publications set to launch at SparxTrading.com that will shine a spotlight on the challenging year that was and how online brokerages overcame multiple challenges to deliver a record-breaking year. Being the month end, there’s a special addition, which includes coverage of some interesting things that crossed our radar that we didn’t get a chance to dive into more deeply this month. As always, we’ve got chatter and banter from DIY investors in the forums and from Twitter.

Days of Our Deals: Online Brokerages Lean Into Deals in November

It’s fitting that on Cyber Monday we get to talk about deals and promotions for DIY investors.

November has been filled with a constant stream of deals updates, as almost all Canadian discount brokerages either stepped back into the deals pool or dove in for the first time.

With nine advertised deals now in the commission-free trade or cash-back category (10 if you include the latest deal from Wealthsimple Trade), online investors are able to pick and choose which deal best suits their needs.

For anyone keeping score at home, within the first week we saw offers from BMO InvestorLine, BMO SmartFolio, CIBC Investor’s Edge, and TD Direct Investing come to market. Not far behind them came offers from Scotia iTrade and RBC Direct Investing. Finally, at the end of the month, we saw Wealthsimple Trade jump into the deals and promotions pool with a clever cash-back promotion.

At the time of publication of this Roundup, it appears that there is one promotion set to expire – the commission-free trade offer from National Bank Direct Brokerage – however, that might change heading into a new week. Not to worry, though, as there are numerous offers that are scheduled to be around until well into RRSP season, which ends at the beginning of March 2021.

Even though we’ve said this before, it is worth stating again. This massive influx of deals activity was a far cry from the promotional landscape we saw midway through 2020 when almost all Canadian discount brokerages removed their “top-tier” promotional offers.

The pullback in offering deals was largely the result of a tsunami of investors trying to get into the markets to take advantage of the COVID-induced volatility, and though COVID is still around, it appears that substantial market swings are not. The pace of investors opening up new accounts has also slowed down compared to the spring of 2020, which, according to some industry insiders, is a welcome reprieve.

As for the Canadian discount brokerages currently on the deals and promotions sidelines, we suspect they won’t be there for too much longer. The space is far too competitive at this point not to be actively courting DIY investors with an offer. The question is more when than if the brokerages currently not offering either a commission-free trade or cash-back promotion will step forward.

One theme that is clear this year is that there appears to be a greater degree of targeting of specific investor segments going on than in years past. As is usually the case, big assets are what all online brokerages aspire to attract. However, outside of that group, there is a definite interest in the entry-point investor.

With the big deal days of Black Friday and Cyber Monday in the books, it appears that the stretch between here and Christmas could bring with it a few bonus gifts for DIY investors.

Lots to Still Look Forward To in 2020

It’s been a storied year for everyone. For DIY investors, there have been once-in-a-generation opportunities to get into stocks that were panic-sold as well as to jump into stocks that have surged as a result of the shift to working from home.

All Canadian online brokerages were tested in multiple ways during and because of COVID, from having to be able to process the flood of applications for new accounts, to shifting operations and personnel to a remote-work model, to dealing with the ongoing challenges of the marketplace that demanded more features at lower commission prices.

Though there were certainly hiccups along the way, in hindsight, the Canadian online brokerage industry managed to weather an exceptionally challenging storm.

For that reason (and the fact that it is 2020), we thought it would be fascinating to hear from the leaders of Canadian online brokerages themselves, so we invited them to participate in our soon-to-be-released Look Back/Look Ahead series.

In this upcoming edition, readers will learn a lot about what 2020 has meant for various Canadian online brokerages, including the challenges they have faced (and overcome) as well as the opportunities for innovation that presented themselves during the year.

In addition to talking about the past, one of the most interesting features of this year’s Look Back/Look Ahead series is what online brokerages have shared about what they’re working on and what online investors can expect from them in the coming year. Stay tuned for our official launch announcement on Sparx’s social media channels.

And, speaking of fun things to look forward to, we’re still working away at the launch of a new Sparx Trading digital experience.

Our new website will feature streamlined organization and powerful new tools to help online investors looking for online brokerages. Exclusive sneak peeks will be shared on the Sparx Trading Twitter feed as well as featured in the Weekly Roundup.  

Lightning Roundup: More Interesting Developments

With so much happening this past month, it’s tough to cover all of the interesting developments in as much detail as we’d like to. So, here’s a quick rundown of things that crossed our radar.

Lots of Outages, Lots of Outrage

Twitter is generally a place where discussions can get heated, and people don’t hold back on what they’re thinking or feeling. In fact, it’s arguably THE place online to vent/share just that. For businesses (like online brokerages), however, in addition to being a place where clients share their experiences, there’s also an expectation of channels like Twitter to serve as a customer service channel.

November has been an abysmal month for many DIY investors across multiple Canadian online brokerages because of platform outages and downtime that occurred during trading hours at big bank-owned online brokerages and smaller operations alike. Many active investors found themselves ranting about outages as well as scary wait times to speak to customer service representatives.

For all of the good, the bad, and the (much) ugly, check out the tweets of the week from November in each of our Roundups.

Financial Literacy Month

November is Financial Literacy Month in Canada, and this past month marked the 10th anniversary of this initiative, which is aimed at helping Canadians be better informed about their personal finances.

There was a steady stream of content as well as activities online for individuals wanting to deepen their understanding of important financial topics. Interestingly, there were a lot of credit unions, independent personal financial bloggers, federal agencies or entities, and provincial securities regulators who were visible on social media.

When it came to investing – in particular DIY investing – there wasn’t much in the way of dedicated content from Canadian online brokerages, despite the wealth of information they have on hand or have historically provided about the way in which online investing works. It seems like an interesting opportunity to have more of a voice on an important issue that would enhance the general public’s understanding of what online brokerages are and how they function.

One telling gap in the current state of awareness and communication around financial services options for investors is highlighted in the introductory stock market video produced by the Nova Scotia Securities Commission.

This video series does a great job explaining the basics of stocks, but when it comes to describing the options that individual investors may encounter, the fact that “robo-advisors” don’t really get mentioned shows there are things consumers encounter in the world of investing online that don’t quite match up to what is being explained in this video. Granted, the video focuses on stocks (rather than ETFs), but given the popularity of these instruments and that they pull investors into trading online, it might be a great follow-up video to provide for investors.

Despite the wealth of information (pun intended) on personal finance that has been shared during Financial Literacy Month, there are still lots of opportunities for either online brokerages or other members of the online investing ecosystem to step forward with more investor-friendly content.

From the Forums

Time Is Not on His Side

What’s the safest and most practical way to start saving for retirement – at age 59? In this post, a Redditor asks for advice on behalf of their father, who is ready to start investing $2,000 per month.

Haters Gonna Hate

A Redditor asks in this post why the media seems to have a hate-on for TFSAs. A long and lively discussion ensues, debating whether TFSAs are good for everyone or just for the rich.

Discount Brokerage Tweets of the Week

Into the Close

If you’ve managed to survive the gauntlet of Black Friday and Cyber Monday advertisements and email promotions, congratulations! With the holidays now less than a month away, investors will have more than just visions of sugarplums dancing in their heads – tax-loss selling deadlines are now looming, and there are bound to be some stocks that investors would love to leave behind as much as they would 2020. Of course, for the bargain hunters, there are also opportunities to peruse the deep-discount bin. Maybe there are a few more deals to be had after all. Here’s hoping you have a profitable week ahead!

🌻Sunflower Timelapse from r/BeAmazed
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Discount Brokerage Weekly Roundup – November 16, 2020

If there’s one place where the news isn’t all bad, it’s the stock market. True to their nature, stock markets are always focused on the future, and the record highs being notched and funds flowing back into highly beaten-down names signal a view of the world that says things are likely to improve. For DIY investors, especially Canadian ones, the news continues to improve – at least for most.

In this edition of the Roundup, we take a look at a recent trading outage that negatively impacted investors trying to cash in on another historic trading day and examine how online brokers can set the record straight on system stability. Next, we review the gift that keeps on giving – deals and promotions – as more Canadian online brokerages jump into the deals race to make for an exciting run-up to RRSP season. As always, we have interesting perspectives to share from DIY investors, including forum commentary and real-time reactions to trading highs and lows on Twitter.

Volume Challenges Online Brokerages’ Trading Systems Yet Again

There’s no denying money is an emotional subject. Layer in fast-moving markets, fleeting opportunities, significant expectations about reliability, relatively high commission pricing, and online trading screeching to a halt, and you’ve got yourself a recipe for some serious online brokerage “haterade.”

This past week was déjà vu all over again when stock markets moved substantially higher on the news of the vaccine from Pfizer and the prospect of a clear winner to the US presidential election. The heightened enthusiasm, however, ended up translating into a surge of trading volume on stock exchanges across North America and, sadly, some online brokerage systems were unprepared for the volume.

In the US and in Canada, several noteworthy online brokerages suffered trading outages at the worst possible moment, leaving many investors angry and sidelined from making (or saving) considerable money. TD Ameritrade, Schwab, and Fidelity were among the big names in the US online brokerage space that were reporting issues with users being able to access their online trading accounts on Monday.

In Canada, some DIY investors were also greeted with a bad case of the Mondays. According to reports from users on Twitter, Questrade and Scotia iTrade suffered outages that impacted traders on Monday morning, sending users into a fury that made for some disconcerting reading on Twitter.  

Massive volatility in stock markets is not something new, and, in fact, it is something many online brokerages had already been bracing for in the lead-up to the US presidential election. For DIY investors, however, it is understandably frustrating, perhaps infuriating, when online brokerages go offline or have technical issues because of increased trading activity.

Interestingly, only one online brokerage in Canada, Wealthsimple Trade, has taken it upon themselves to proactively report and disclose issues regarding their trading systems on a separate, dedicated website. By automating this disclosure, it provides some measure of access to situations where trading systems are impacted – so users aren’t completely in the dark about what’s going on. More impactful, however, by making this disclosure public, DIY investors can also see for themselves just how “reliable” the trading system is.

For example, from September through November 15th, Wealthsimple Trade reports their trading system was up 99.89% of the time – something users can verify for themselves. It is worth noting that there were no outages reported on their systems status page on November 9th, the date that other online brokerage systems went down.

Going forward, investor patience for outages that take place at online brokerages will be very limited. The fact that “new kid on the block” Wealthsimple Trade can do so almost begs the question as to why other, larger, better-resourced firms that are competing with Wealthsimple Trade haven’t or won’t disclose this data. Seems fitting for a challenger brand.

That said, the majority of online brokerages are likely up and running without issue for most of the year. Having a site that objectively reports this uptime profile is much more likely to communicate what reality is versus what the subjective and emotional impressions are of the reliability of a platform. If an online investor is doing their homework into the stability and reliability of an online brokerage (and those burned by outages before likely will), then it seems like a bad idea to have the only record of system function be the trail of angry tweets that inevitably highlight when things go wrong instead of a site that communicates how often they got it right.

Big Deals Keep on Turning

If there’s one thing November can lock in its reputation for, it’s ushering in deals and promotions. From Singles’ Day to Black Friday, millions of shoppers around the world look forward to this month to get access to savings, and so too do Canadian DIY investors.

This past week saw three more offers come to market. Two of those promotions came from big bank-owned online brokerages, RBC Direct Investing and Scotia iTrade, which launched a commission-free trade and a combo, cash-back and commission-free trade deal, respectively. The third offer, courtesy of Virtual Brokers, was a discounted commission offer.

Compared to earlier this year, when Questrade was the sole online broker in Canada offering up promotions for new accounts, the sharp increase in promotions this month alone is cause for optimism for DIY investors who are interested in opening an online trading account.

Looking more closely at the new deals to cross the wire, the RBC Direct Investing commission-free trade offer is more of a “classic” than a new offer. They are bringing back a popular offer they have had for a few years that consists of 25 commission-free equity trades that are valid to use for up to a year from the time of account opening. The perks of this offer are the low threshold to qualify, a deposit of $5,000, and the long timeframe in which to use these commission-free trades. At a standard commission rate of $9.95, the equivalent value of the offer is just shy of $250.

By comparison, Scotia iTrade also leaned into a familiar strategy in offering up the choice to investors of accessing either a cash-back promotion or commission-free trades. The combined nature of this offer makes it one of the more interesting promotions currently in play among Canadian online brokerages. To further enhance the value, the discounted commission rate of $6.99 per trade equates to a 30% discount on the standard commission fee until June 30, 2021.

To see how the Scotia iTrade offer truly stacks up, however, it is worth comparing it to the other cash-back promotions currently in play.

Deposit TierBMO InvestorLineCIBC Investor’s EdgeScotia iTradeTD Direct Investing
$5,000$25
$10,000$50$50
$15,000$100
$25,000$100$100$200
$50,000$100$200$200
$100,000$250$500$400$300
$250,000$450$750$500
$500,000$950$1,000$1,000$1,000
$1M+$2,000$2,000$1,500

The first thing that jumps out about the cash-back offer from Scotia iTrade is that the minimum deposit threshold is lower than that of any of their peers. At $5,000 to qualify for a $25 cash-back bonus, there are no other offers in this range that would compete.

As we reviewed last week, there are certain deposit tiers that it is clear online brokerages appear to be most interested in targeting. In the case of Scotia iTrade, the segment where they (and they alone) have the highest offer is between $250K and $500K, with an offer of $750 cash-back. Their cash-back offer is also tied for top spot at the $50K deposit level with CIBC Investor’s Edge, with both of these online brokers offering $200. Similarly, Scotia iTrade is in a three-way tie for top offer of $1,000 cash-back at the $500K to $1M deposit range.

When it comes to the commission-free trade comparison picture, however, Scotia iTrade’s promotion is unique in that it is the only online brokerage (at the moment) to use tiered deposits to qualify for higher quantities of commission-free trades. And, beyond deposits of $100K, it is the only online brokerage offering commission-free trades of greater than 100 trades. That said, currently National Bank Direct Brokerage has, hands down, the highest commission-free trade offer, with 100 trades and no deposit minimum required to qualify.

Of the offers that have come to market thus far, Scotia iTrade is the most versatile of the bank-owned brokerages. It spans the widest range of deposit tiers, from $5K through to $1M+. It has a combined discounted commission and cash-back or commission-free trade offering. And, the bonus offers can be combined with their existing referral program, which means that there is an opportunity for extra cash-back or free trades to be added onto either of the base-free-trade or cash-back promotion offers.

Finally, a different category of deal that was launched this month was from Virtual Brokers. This offer waives the minimum spend per trade of $1.99, which is a part of the standard commission price structure. Interestingly, this offer does not apply to odd-lot trades – defined specifically by Virtual Brokers according to the price of the security. Also, this offer is available only until the end of December 2020, and in order to maximize savings from this offer, investors would likely be trading securities priced at $1 or more (likely significantly higher than $1).

As predicted, November has been a watershed month for DIY investors looking for a deal to open a new online investing or trading account. With market volatility likely to stay elevated (if last week is any indication), there will undoubtedly be interest from investors who are still on the sidelines or who are contemplating other account types (or moving online brokerages) to kick the tires on these offers. There are still a handful of online brokerages that have yet to jump into the deals pool, but we anticipate there to be at least one or two more offers coming to market before November ends.  

Discount Brokerage Tweets of the Week

From the Forums

A Chunk of Change

An investor who’s tired of high commission fees asks about switching partially or fully between two specific brokerages in this post. Fellow Redditors share their experiences with transfers – the good, the bad, and the ugly.

In Case of Emergency

In this post, a Redditor asks if anyone else has put investing on pause to focus instead on substantially increasing their emergency fund during this time of COVID-19 and an uncertain job market. The ensuing long and lively discussion touches on inflation, debt, how “safe” different types of investments really are, and how much of a rainy-day fund is enough right now.

Into the Close

That’s a wrap on another historic week. There are definitely lots of scary historical records being broken as well as incredible achievements happening simultaneously. For the first time in quite some time, markets are pricing in a return to normal and some good news to follow. Here’s hoping there are more treats to come.

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Discount Brokerage Weekly Roundup – November 2, 2020

Just because Halloween was seriously curtailed this year doesn’t mean there can’t still be a few treats dished out in a socially distant way. Besides, at this point, we’re all probably in need of some kind of boost to see us through what is going to be a wild week.

In this extended version of the Roundup, we kick things off with the launch of a new month and that means an update to see what’s been happening with online brokerage deals. From there, we continue coverage of the growing trend of DIY investor content that showed up in October, and how for one online brokerage, it was the lead-up to something big. And, for a bonus treat, we have included a handful of stories that we were watching but which didn’t make it into the full Roundup format – enjoy these bite-sized updates. As always, we close things out with updates from the investor forums and DIY investors on Twitter.

Cold November Rain, Warming Discount Brokerage Deals?

For Canadian deal-hunting DIY investors, the start of November is when the stars align. Not only is it the month in which Black Friday deals surface, but it also is the start of a new fiscal year for many online brokerages in Canada, and – the best part – it is the ramp-up to the busiest stretch for online brokerage deals.

Even though RSP season is still several months away, November is typically the month in which online brokerages start launching some of their best offers of the year.

Out of the gate, the activity in this month’s discount brokerage deals and promotions section is quiet. No new offers launched as of the first day of the month (or at least no offers were advertised), but the fact that the new month started on a Sunday might have had something to do with that.

Thus, the picture for the start of the month is that the official deal count dropped by one, as the HSBC InvestDirect commission-free trade offer officially expired at the end of October (30th).

The news for DIY investors looking for a deal wasn’t all gloomy this past month.

Questrade announced that they have removed their inactivity fees. In doing so, they are now one of two online brokerages that have no inactivity fees regardless of account size. That simplifies not only pricing but also the terms and conditions investors have to keep track of.

In the past, November has been a very big month for online brokerage promotions to come to market. We suspect that despite 2020 being a historic year for account openings and new investors flooding to online brokerages, the strategy going into 2021 and RSP season, in particular, will be to bring some splashier promotions online, since the deals activity for most brokers was relatively quiet in the spring and summer.  

This month, probably more than any other November, is going to be full of (hopefully pleasant) surprises. Stay tuned!

Online Learning in the Spotlight for DIY Investors

Anyone new to the markets in the past several months is getting an interesting lesson in the strange relationship between economic fundamentals and the stock market. Despite a wide range of negative news, there are certain stocks that have continued to rally, fueled in large part by the beliefs of investors who are putting their capital and hopes on some generational changes.

With so many new investors now participating in the market, it seems that investor education was especially relevant this year. For its part, TD Direct Investing has leaned heavily into their investor education programming, with a series of events including two webinars with notable personal finance voices.

Earlier this month, we reviewed a webinar held by TD Direct Investing with YouTube investing personality Brandon Beavis. This session, entitled “Become a More Resilient Investor,” covered the basic principles of investing and provided Beavis’s perspectives on taking a balanced approach to getting started in the markets.

Another interesting webinar held by TD Direct Investing for Investor Education Month featured personal finance author Sandy Yong. Her presentation, entitled “How to Start Investing on a Budget,” was aimed at beginner investors (very beginner investors) and mapped out several steps that individuals who think they do not have money available to invest could follow to help them on their journey. As with the Beavis presentation, the perspective on investing provided by Yong was to take a balanced and diversified approach.

While the presentation itself was informative to anyone looking for a very basic primer on how to go about getting started in planning for an investing journey, some of the Q&A topics dug into specifics like dollar-cost averaging and the differences between TFSAs and RRSPs.

These sessions seemed to set the stage for an important full release of the new TD GoalAssist feature that officially debuted last week. After being in development since 2019, the new app-based offering from TD Direct Investing tackles a number of items that investors (especially TD Direct Investing clients and DIY investors) have been clamouring for, such as commission-free ETF trading (on the app only) of TD ETFs. Other big benefits: There are no account minimums required, and TFSA, RRSP, and cash accounts are supported.

We’ll have more to say about this new service in the weeks to come. However, the investor education efforts at TD Direct Investing recently and the launch of the new GoalAssist seem strategically aligned at this point.

Now, to shift gears from focusing on the lead-up to a product launch to shining a spotlight on one very shiny new industry, this month also featured another big bank-owned online brokerage, BMO InvestorLine, sponsoring a fascinating webinar on an increasingly popular industry segment: eSports.

Presented by Evolve ETFs – a Canadian ETF provider that gives investment exposure to the eSports sector – this webinar helped to explain the opportunities available in the eSports and eGaming sectors and outlined how investors can look at participating in them. Because they offer an ETF aimed at the eSports sector (ticker HERO on the TSX), there is clearly an interest in bringing general awareness and understanding to the sector. However, there is also clearly an audience of investors – especially younger investors – who have witnessed firsthand the popularity of this growing industry.

Providing access to interesting investment themes via ETF providers is one way that online brokerages, like BMO InvestorLine, can easily relay information about market opportunities without having to create content themselves. With DIY investors looking to understand many of the new and emerging sectors, this kind of niche ETF provider presentation is something we anticipate seeing more of at other online brokers.

A Quick Tour Through Other Stories

Despite the already-long format of the Weekly Roundups, there are often several stories that don’t make it to being covered but that could be of interest to DIY investors and are definitely relevant to the world of DIY investing. Starting this month, we’ll be sharing these stories at the end of each month as a way to bring these topics to light, even if we don’t do our usual deep-dive format with them.

Raising Margin Requirements

Two points do not necessarily make a trend, but when it comes to a batting average for online brokerages, Interactive Brokers is batting 1,000 for volatility planning. And this time around, they aren’t the only ones.

Although it might have been a self-fulfilling prophecy heading into election day in the US, the reality that has played out over the past week has shown that raising margin rates ahead of the storm of uncertainty proved to be a smart move. Read more here.

Interactive Brokers Earnings Report

All things considered, it was a pretty good year for Interactive Brokers. What counts as good? A 47% year-over-year increase in the number of accounts and growth in “all client segments and all geographic regions” ought to do it. Also discussed was the launch of another new feature: the ESG-driven Impact Dashboard. Dive into the full transcript and more details here.

Class-Action Lawsuit

DIY investors who purchased or hold mutual funds through their discount brokerage are the focus of several class-action lawsuits, specifically on the issue of trailing commissions.

Read more about which online brokerages (several of the big bank-owned online brokerages are named in these actions) are impacted, and find out how to stay on top of developments in these cases, here.

Discount Brokerage Tweets of the Week

From the Forums

A Day Late & A Dollar Short

In this post, a Redditor gets frustrated by delays for fund transfers and asks which online brokerages “have same-day deposits?”

The Smart Money

A twentysomething in a new job asks in this post if it’s smarter to put their signing bonus money into a TFSA or RRSP. Fellow Redditors weigh in.

Into the Close

That’s a wrap on the pre-election, once-in-a-blue-moon, I-can’t-even edition of the Roundup. There’s really only one big story that matters this week, so here’s hoping everyone finds a little reprieve by the end of it.

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Discount Brokerage Deals & Promotions – November 2020

*Update: November 27* Daylight isn’t the only thing being saved this as we enter the month of November. It seems like DIY investors are also in for some savings too.

Like adjusting the clocks back, it’s going to take some getting used to online investing in November. With the US presidential election likely to shape the rest of the month, online brokers and investors alike are uncertain as to what the fallout will be.

Heading into a new month there is a mixed picture for promotional offers. On a down note, the 60-day commission-free trade offer from HSBC InvestDirect concluded at the end of October. On the plus side, however, Questrade rolled back the clock on inactivity fees, taking them back to zero. While technically not a promotion, it is a piece of good news for DIY investors looking to park their money without penalty.

Another bit of good news for DIY investors is November is historically a big month for online brokerage offers coming to market. We expect that several big names will be launching new offers in anticipation of RRSP season and the heightened activity around TFSAs and markets heading into the end of the year.

So, don’t forget to check back throughout the month for any updates. The US election is expected to heavily impact investor behaviour and in turn, the discount brokerage space. As always, we’ll continue to monitor and provide new developments on discount brokerage promotions as they arise but if you hear about any offers that would be interesting to fellow DIY investors, feel free to drop a comment below.

Expired Deals

The 60-day free online equity and ETF trading promotion from HSBC InvestDirect concluded on October 30th. 

Extended Deals

No extended deals to report at this time. 

New Deals

*Update: Nov. 6 – Brokerage promotions for November are heating up, with four online discount brokerages unveiling new cash back deals at the start of this month. BMO InvestorLine, BMO SmartFolio, and TD Direct Investing are all offering cash back bonuses for clients who open a new qualifying account, while CIBC Investor’s Edge is offering cash back for clients who fund a new or existing account. See the table below for full details, including eligibility requirements, applicable promo codes, and deadlines.*

*Update: Nov. 13 – Despite it being Friday the 13th, luck is on the side of DIY investors, as two online brokerages have recently unveiled new promotions. Scotia iTRADE launched a deal that allows new clients to choose from bonus cash back or free trades, and RBC Direct Investing is offering 25 commission-free trades to clients who open new accounts.  For full promotion details and eligibility requirements, see the table below. *

*Update: Nov. 27 – Our radar has picked up on a new deal, just in time for Black Friday. Wealthsimple Trade is offering a free stock promotion for clients who open and fund a new Non-Registered trading account by December 18th. See the table below for full terms and conditions. *

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
  6. Offers for Young Investors

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
Scotia iTrade Scotia iTRADE is offering two choices for new investors who open accounts before March 1, 2021 and fund it with at least A) $5,000; B) $10,000; C) $25,000; D) $50,000; E) $100,000; F) $250,000; G) $500,000 or H) $1M+: Option 1: you can use promo code C21 to receive cash reward of A) $25; B) $50; C) $100; D) $200; E) $400; F) $750; G) $1,000 or H) $1,500; plus a discounted commission of $6.99 per trade until June 30, 2021. Option 2: Use promo code FT21 and you may be eligible for A) 10; B) 20; C) 50; D) 100; E) 200; F) 300; G) 400 or H) 500 free trades to use for 90 days after the account is funded. $5,000 Cash Back or Free Trades 90 days Scotia iTRADE’s Cash Back or Free Trade Offer March 1, 2021
Fund your new or existing CIBC Investor’s Edge account before Mar 2, 2021 with at least A) $10,000; B) 25,000; C) $50,000; D) $100,000; E) $500,000 or F) $1M+ and you may be eligible to receive a cash back reward of up to A) $50; B) $100; C) $200; D) $500; E) $1,000 or F) $2,000. To qualify, the fund must be from outside CIBC. No promo code required. $10,000 Cash Back Program Page March 2, 2021
Open a new TD Direct Investing account by Mar 1, 2021 with promo code INVESTNOW and fund it with new assets worth at least A) $15,000; B) $25,000; C) $100,000; D) $250,000 or E) $500,000, and you may be eligible to receive a cash back reward of up to A) $100; B) $200; C) $300; D) $500 or E) $1,000. The fund must be deposited to the account by April 30, 2021 and at least one trade is placed by June 30, 2021. In addition, you may also be eligible for another $100 cash reward by setting up a Monthly Contribution Plan (min. $100 per month) with the first contribution occur before April 30, 2021. The maximum reward one could receive is $1,100. $15,000 Cash Back TD Direct Investing Cash Back Promotion March 1, 2021
BMO InvestorLine Open a new qualifying account at BMO InvestorLine with new assets worth at least A) $50,000; B) $100,000; C) $250,000; D) $500,000 or E) $1M+, and you may be eligible to receive a cash back reward of up to A) $100; B) $250; C) $450; D) $950 or E) $2,000. Use promo code SPARXCASH when registering to qualify. Be sure to read full terms and conditions. $50,000 Cash Back Fall 2020 Cashback Campaign Jan 5, 2021
New accounts opened between Jun 22 and Nov 30, 2020 will be awarded 100 free online trades in one year. This promotion applies to new and existing NBDB clients who uses the code “FREE2020” to open new accounts.There’s no minimum funding requirement, however some other restrictions may apply. $0 100 Free Trades 1 year Please refer to the full details of the deal. November 30, 2020
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, 2020
Open a new RBC Direct Investing account by December 31, 2020 and fund it with at least $5,000 by March 5, 2021 and you will receive commission rebates for 25 trades that occur within 1 year of account opening. Be sure to use promo code NTBW2 during account opening. You will be charged regular commissions on the trading date, and the rebate will be deposited back into your account after 3-5 business days. If you are an existing customer to RBC DI, the type of the new account being opened must be different from the account types that you current have. $5,000 25 commission-free trades for a year 1 year 25 commission-free trades December 31, 2020
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, 2020

Expired Offers
Last Updated: Nov. 12, 2020 17:35PT

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
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing 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
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 5, 2021

Expired Offers
Last Updated: Oct 30, 2020 14:40PT

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 none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $200 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 Transfer Fee Promo 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
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
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 $10,000 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 $10,000 Disnat 1% Commission Credit Promo January 8, 2020
Last Updated: Nov. 30, 2020 14:36PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
The minimum commission per equity trade ($1.99) is waived for new accounts from account opening till December 31, 2020. As a result, your commission is just 1¢/share (max $7.99). However, this offer does not apply to Odd Lot orders (i.e. orders with quantity less than 100 shares if price >= $1 or price < $0.10; or less than 500 shares if price in the $0.10 – $0.99 range). Please be reminded that at Virtual Brokers ETFs are always free to buy. $0 No Minimum 2020 – Terms & Conditions December 31, 2020
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 200 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions. n/a Hardbacon Free Trade Promo none
Open a new Non-Registered trading account and fund it with at least $100 by December 18, 2020 and you may receive a random cash bonus ranging from $1 to $4,500. The cash bonus amount will be equivalent to the value of one of the fifteen stocks that have been selected by Wealthsimple Trade for this program. Please refer to the Terms and Conditions for more details. $100 Wealthsimple Trade Free Stock Promotion December 18, 2020
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: Nov 24, 2020 16:16PT

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 a new SmartFolio account and fund it with at least $1,000 and you could receive 0.5% cash back up to $1,000. Use promo code SFNOV1000 when opening a new account. See terms and conditions for full details. This offer is limited to new SmartFolio clients only, and can be combined with the refer-a-friend promotion. $1,000 0.5% cash back to a maximum of $1,000. SFNOV1000 January 5, 2021 SmartFolio Cash Back Promo
Discounted Management Open a new account with BMO SmartFolio and receive one year of management of up to $15,000 free. See offer terms and conditions for more details. $1,000 1 year no management fees STSF April 30, 2019 SmartFolio New Account Promotion
Cash Back – Referral BMO SmartFolio clients will receive $50 cash back for every friend or family member who opens and funds a new SmartFolio account. Friends and family referred to SmartFolio will receive $50 cash back for opening and funding an account, plus automatic enrollment into SmartFolio’s mass offer in market at the time. See offer terms and conditions for more details. $1,000 $50 cash back (referrer) $50 cash back (referee) Unique link generated from SmartFolio required. None SmartFolio Website
Transfer Fee Coverage Transfer at least $25,000 into Virtual Wealth when opening a new account and you may be eligible to have up to $150 in transfer fees covered by Virtual Wealth. $25,000 up to $150 in transfer fees covered None None Contact customer service directly for more information.
Last Updated: Oct. 30, 2020 14:38PT

Offers for Young Investors

Brokerage Offer Type Eligible Age Range / Client Segment Offer Description Min. Deposit Expiry Date Link
Student Pricing Clients with CIBC Smart™ Account for students $5.95 per trade and zero annual account fees not required None CIBC Student Pricing
Broker@ge 18-30 18-30 years old investors Benefits: * 5 free transactions (Minimum deposit of $1,000 required) * No inactivity fees * No asset minimum to maintain for free registered accounts * Exclusive events * Disnat Mobile App $1,000 None Broker@ge 18-30
Offers for professionals & Students Students in selected fields of study Professionals and students in the below fields can benefit from a reduced pricing structure: * Engineering students * Legal, accounting and business students * Healthcare students * Health sciences students * Nursing students Benefits: * $5.95 commission on equities * $0 commission on ETFs * $0 annual administration fee not required None NBDB Student Pricing
Young Investors Offer 18-30 years old investors Accounts holders who are 30 years old or younger are offered 10 free trades each year. After the free transactions, a commission rate of $4.95 per transaction will be applied (which is just half of the regular price). not required None Young Investor Offer
Young investor pricing 18-30 years old investors Benefits: * $7.75 commissions for stock and ETF trades * No account minimums * No quarterly admin fees min. $50 a month through pre-authorized contributions. None Young Investor Pricing
Waiver of account maintenance fee Clients who have RBC Student account, currently or in the past 5 years. The Maintenance Fee ($25 per quarter) is waived, regardless of the account balance. not required None Zero Account Management Fee
Young Investors Offer Clients below 26 years old Low activity account administration fee and the RSP account administration fee are waived. not required None Young Investors Offer
Zero Account Administration Fee Clients below 26 years old The account administration fee ($24.95 per quarter) is waived. not required None $0 Account Administration Fee
Last Updated: Oct. 30, 2020 14:41PT

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Discount Brokerage Weekly Roundup – October 12, 2020

As much as turkey and mashed potatoes are a staple of the menu for many Canadians on Thanksgiving, so too is discussion of what’s happening in the world. Inevitably for DIY investors, the gravy comes in the form of what’s been hot and what others are looking at in terms of potential money-making ideas. During COVID, however, the gatherings are likely (or should be!) smaller, and that might make for less banter about what folks are trading (not including recipes for turkey). Nonetheless, this month, despite the dour news, some Canadian discount brokers are giving DIY investors reasons to be optimistic for the remaining few months in 2020.

In this short-week edition of the Roundup, we highlight a new twist on a story of inactivity fees at one Canadian online brokerage that will be sure to get DIY investors chatting as news spreads. Following that, we review some of the latest activities taking place during Investor Education Month, including World Investor Week, and who is (and isn’t) showing up in the Canadian online brokerage space. Despite the short week, we’ve served up a healthy portion of DIY investor chatter from Twitter and the investor forums.

Questrade Eliminates Inactivity Fees

With all the big headline news swirling, it’s easy for some important news to get lost in the shuffle. In the case of Questrade, one of Canada’s most popular online brokerages, their latest move regarding inactivity fees is almost certainly going to make waves once word catches on.

The big news for DIY investors: As of October 1st, Questrade has eliminated inactivity fees on all accounts.

Yes, that’s right, the storied history of inactivity fees at Questrade has added another chapter to it, and in this case, Questrade has returned to its low-cost roots and put an end to quarterly inactivity fees.

For those who have followed the Questrade inactivity fee saga for as long as we have, there is almost no forgetting the firestorm that emerged on social media – in particular on investor forums – when Questrade first made the decision to introduce inactivity fees to clients in July 2012.

At that time, the launch of the inactivity fees was a step change in the identity and perception of the brand. Up until that point, Questrade had become a fixture in the minds of value-conscious DIY investors, and one of the reasons why – aside from the low commission rates – was the lack of inactivity fees.

Understandably, then, the first iteration of inactivity fees proposed by Questrade did not go over well. The first rollout involved charging a monthly fee of $9.95 for clients who did not make at least one commission-generating trade in the month or who had a balance of assets across all accounts of less than $5,000.

When the news of this fee change broke, the very vocal dismay of the Questrade community of clients on a popular forum on RedFlagDeals.com caused Questrade to revisit the decision and modify the terms and conditions around the inactivity fee. Aside from substantially changing the structure of the inactivity fee, they also pushed back the date of the rollout of their inactivity fee to the beginning of October 2012.

A post on RedFlagDeals.com set in motion the official response and policy on inactivity fees for Questrade for the better part of the past eight years:

Unlike many of their Canadian online brokerage peers up to that point (and arguably since), Questrade had successfully built up a strong following and audience in various online investing communities and on social media. Because of its appeal as a lower-cost option for online investors, and the propensity of investor communities to provide “helpful” suggestions to one another regarding DIY investing products/services, Questrade often stood out as a natural counterpoint to most other online brokers at the time.

Although introducing inactivity fees at Questrade brought them into line with “the rest of the pack” of Canadian discount brokers at the time, the exercise of hearing out many online investing clients’ concerns and responding with changes to Questrade’s pricing was one of the more extraordinary moments in the history of the Canadian DIY investing community.

More than anything, it showed that as a service provider, Questrade was prepared to listen to their customers and respond with changes.

At the time, there were only two other online brokerages that didn’t charge inactivity fees – Qtrade Investor and Virtual Brokers, both of whom eventually came around to launching these fees as well.

Over time, the quarterly inactivity fee at Questrade increased from $19.95 per quarter to $24.95 per quarter, and the requirement to maintain $5,000 as a minimum value of assets was reduced to $1,000.

Now, almost exactly eight years after it was launched, and even though a lot has changed about the online investing industry and commission pricing in Canada, Questrade is venturing forward with no inactivity fees. Other Canadian online brokerages, with the exception of Wealthsimple Trade, will now be forced to re-evaluate their stance on inactivity fees altogether, or at least the threshold minimums required to have them waived.

As a tactical move, heading into the coveted RSP season, Questrade is now able to claim to be one of the only Canadian online brokerages that does not charge inactivity fees with no other strings attached.

What is curious about the latest drop in inactivity fees at Questrade is that, as of the time of publication, there hasn’t (yet) been much chatter online about this move – perhaps owing to the fact that there hasn’t been too much in the way of formal communication about the change in pricing.

It is likely, however, that Questrade will be shining a spotlight on dropping the inactivity fee heading into the end of the year and that it will undoubtedly spark a conversation among DIY investors. Hopefully, said conversation will also encourage online brokerages in Canada to consider what they can do to lower the barriers for DIY investors to access markets and to take their time when learning the ropes without being penalized for “going slow.”

Investor Education Month Activities Underway

In case you missed it, October is the official month for investor education awareness in Canada. This past week it was also World Investor Week, an initiative promoted by the International Organization of Securities Commissions, or IOSCO (yes, that last O is intentional). IOSCO is an international body that “brings together the world’s securities regulators and is recognized as the global standard setter for the securities sector.”

Now in its fourth iteration, World Investor Week was “conceived to raise awareness about the importance of investor education and protection. The project, organized and implemented by IOSCO’s Committee 8 on Retail Investors (C8), consists of up to a week of outreach activities carried out by participating IOSCO member jurisdictions.”

A quick search of the hashtag #WorldInvestorWeek on Twitter illustrates the many international organizations that participated in last week’s event. For the most part, the messages from securities exchanges and regulators around the world reinforced the messages around prudent investing strategies. To assist with getting their core messages out, IOSCO also prepared a list of key “investing basics” messages positioned around being a “smart investor.”

Below are the 10 messages set out for World Investor Week 2020:

On the home front, there were a few Canadian organizations that did make an appearance in support of World Investor Week, with one of the more active ones being the Ontario Securities Commission’s Investor Office via their “Get Smarter About Money” initiative.

Among Canadian discount brokerages, however, World Investor Week was largely invisible.

That said, when it comes to Investor Education Month more broadly, there was only one Canadian online brokerage that stood out: TD Direct Investing.

To their credit, TD Direct Investing has actually put together a comprehensive set of investor education activities in recognition of Investor Education Month – something that other online brokerages in Canada will want to take note of, especially if they are positioning themselves as serious about investor education. In fact, a quick look at the Twitter account for TD Direct Investing reveals that even in their description, investor education is the first thing they reference as being available.

While the spirit of promoting investor awareness and education is something all Canadian online brokerages would (likely) be on board with, it is noteworthy that only TD Direct Investing has compiled dedicated educational content for this specific month. In putting this together, TD Direct Investing has reinforced one of its strongest value offerings as an online broker that provides access to robust educational materials for DIY investors.

As many Canadian (and international) online brokerages wrestle with the reality that millions of new (or novice) investors have stepped into the world of DIY investing, it will be increasingly important for Canadian online brokers to provide resources to better inform these investors about the realities of investing online.

For the moment, TD Direct Investing has managed to take the lead among Canadian brokerages in tackling this – and given their depth of educational content, TDDI is well positioned to curate existing information that could apply to the current market uncertainty.

Looking at the social media accounts of their peers, it seems like most Canadian online brokers are taking a “wait and see” approach, or are too busy focusing on other areas to put investor education in the driver’s seat, or are simply relegated to having to watch and learn.

Discount Brokerage Tweets of the Week

From the Forums

HI(SA) School Musical

In this post, a Redditor ponders if the advice to keep all funds needed in the next five years in a HISA holds up when interest rates are so low. Commenters weigh in on if this course of action still seems wise.

(Half a) Million Dollar Baby

A would-be DIY investor turns to the forums in this post to find out what returns they might reasonably expect if they invest some of their money.

Into the Close

That’s a (turkey) wrap on another eventful week. Sports fans were not disappointed by this past weekend featuring NBA championships and yet another nail-biting performance in the NFL (looking at you, Russell Wilson) – and Prime Day! Of course, there are plenty of less fun but anxiety-inducing days ahead, as the US presidential election looms large. Whether you’re a spectator to the markets or thinking of playing the field this week, there’s no doubt you’ll have lots to watch.

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Discount Brokerage Weekly Roundup – October 5, 2020

So, if things seem like they might have gone from bad to worse this past week, with non-stop coverage of the US election chaos, the good news is that the stock market happened to shrug it off. While there’s a lot for everyday people to digest in terms of news flow, thankfully the online brokerage space offers up some good news to tune in to, especially for DIY investors.

In this edition of the Roundup, we check in on the latest deals and promotions activity to kick off October and highlight some early signs that suggest DIY investors are going to see even more offers from Canadian discount brokerages before the end of 2020. Next, we take a closer look at some trading metrics that reveal just how popular September 2020 was for trading, and we fish out some bonus news from Twitter chatter that is going to be very important to the online brokerage space in Canada in 2021. As always, we’ve got chatter from DIY investors on Twitter and the investor forums to close out on.  

Tricks or Treats? October Discount Brokerage Deals Activity Seems Tempting

If there’s anything that 2020 has taught us to be aware of, it’s pending change. The start of a new month is when we take the opportunity to check on the current slate of deals and promotions offered by Canadian discount brokerages to see what’s changed and, more importantly, what DIY investors can look forward to in the weeks ahead.

Despite the many dour social, economic, and political headlines, the stock market has managed to stay remarkably buoyant. 2020 has been an unusual year for investor behaviour online, and likewise for the deals and promotions market. Since March of 2020, there has been a significant contraction in the number of offers and the number of online brokerages coming to market with compelling incentives to win over DIY investors.

At the beginning of this month, however, it looks like deals activity is coming back to life. Although there were no new deals to start the month, the small but encouraging development is that one of the current offers, which was set to expire at the end of this month, has been extended through to the end of November.

National Bank Direct Brokerage, which is currently one of three online brokerages offering a commission-free trade offer, has extended their 100 commission-free trades offer until the end of November. Regular watchers of the online brokerage promotion space recall that a few months ago, the only online brokerage in Canada with an advertised commission-free trade offer was Questrade. Late in the summer, however, HSBC InvestDirect jumped into the deal pool, followed shortly thereafter by National Bank Direct Brokerage.

The early pattern emerging from the restart to activity in the deals and promotions space is that smaller or less popular online brokerages are leading the charge to bring new offers to market. No big-five-bank-owned online brokerage has launched an offer (at the time of publication), but there is a strong likelihood that, over the next 60 to 90 days, things could ramp up dramatically for investor promotions. There is simply too much at stake heading into the rush for RRSP season, and online brokerages don’t want to risk being left behind.

As such, it makes sense that the smaller players will be racing to get their offers out and advertised as soon as possible. When one of the larger brokerages in the space launches an offer, the typical response is that it generates a lot of interest and conversation.

There’s little doubt that the next few months will see a contentious battle for attention among Canadian online brokerages, so every extra bit of exposure helps – especially when it comes to deals and promotions.

Another interesting trend so far in the restart to deals activity is the lack of cash-back offers. There are commission-free trade offers that have come to market – some with expiry dates of up to a year – however, the most popular kind of offer, the cash-back, hasn’t made an appearance. There’s certainly a strong likelihood that this is something that could change heading into the thick of the RRSP season race, but for now, investors interested in cash-back offerings for opening an online trading account will have to rely on referral offers.

Although deals activity is muted by historical standards, data from online brokerages in the US shows the pace of account opening has plateaued, signalling the need to restart promotional offers to keep momentum strong. Also, according to discussions with several online brokerages, there are already plans underway to launch offers in the very near future.

It’s difficult to guess just how extreme the volatility predicted in the stock markets will be over the next several weeks, but it is likely that amateur and professional active traders alike will be looking to take advantage of the uncertainty. With their increased presence and activity fueling the conversation online about trading opportunities and online brokerage experience, and by virtue of the fact that this group of online investors is incredibly highly prized, it seems reasonable to expect that online brokerages will not be waiting on the sidelines for too long before coming into the market with some attractive offerings.

Investors and non-investors alike will be collectively on edge this month. Here’s hoping that in the run-up to the US presidential election, Canadian discount brokerages offer up some positive changes in the form of compelling offers for investors to smile about.   

In Data We Trust: Interactive Brokers’ September Metrics Reveal Heavy Trading

Despite the world having a sense of chaos at the moment, the steady marker of a new month in the form of trading metrics from Interactive Brokers helps to add a little bit of order back into things. This past week, the popular-with-active-investors online broker released their regular trading metrics for the month of September.

One of the great features of Interactive Brokers when it comes to reporting performance is their transparency and disclosure of trading activity stats.

Among the highlights from their most recent month’s trading metrics was that client account growth remains very strong. Interactive Brokers grew the number of accounts they have to 981,000, which is 4% higher than the previous month and 47% higher than the same point last year. By implication, it means that October 2020 is likely the month that Interactive Brokers hits 1 million total accounts. Although the number of accounts pales by comparison to competitor firms (including Robinhood), the number of trades and the revenue per trade at Interactive Brokers is nothing to sneeze at.

Another interesting data point that jumped out from the Interactive Brokers press release on trading metrics was the volume of trading on their IBKR PRO platform. Recall that Interactive Brokers launched a zero-commission platform in late 2019 (IBKR Lite), which ultimately catalyzed other big online brokerages into following suit and triggered an avalanche of consolidation (e.g., Schwab acquired Ameritrade; Morgan Stanley bought E*Trade). The paid-commission version, IBKR PRO, reports its metrics.

In September, Interactive Brokers reported that there were 14.21 million trades placed on the IBKR PRO platform, with 8.12 million being buys and 6.09 million being sell orders. For context, the total number of trades in September was only slightly lower than in March (14.52 million) and June (15.07 million), a signal that September was a very busy month for traders working via the pro platform. Interestingly, even though the total volume was very high compared to the past several months (volume was higher 11.7% m/m), the size of orders in terms of number of shares purchased (2.6B shares) or sold (2.5B shares) was actually at the lowest point since February, a signal that traders are making smaller-sized trades.

The takeaway from these figures is that trading volumes in the US were very strong in September, a pattern that likely was true here in Canada, too. Interestingly, Interactive Brokers doesn’t show many signs of slowing down in terms of account growth. With the prospect of even greater volatility and uncertainty in the lead-up to the election, it appears that will be a catalyst for more account growth at Interactive Brokers but more cautious trading for its clients.  

Interesting Chatter on Twitter

It’s an understatement to say that there’s a lot happening on Twitter these days, much of it dramatic and filled with vitriol. As with anything on social media, however, filtering through the noise can provide some interesting results.

First, this past week Questrade celebrated their 21st anniversary as an online brokerage in Canada. They have had a storied journey but today enjoy the position as one of the most popular online brokers in Canada, through a combination of ultra-competitive pricing, savvy operations, and clever marketing.

Another very big piece of news is that online brokerage Tastyworks telegraphed more information about their plans to launch in Canada and, most importantly, provided some sense of timing and which account types they will be making available (or hope to) at launch. In a tweet from Tastytrade Co-CEO and President Kristi Ross, the plan to come to Canada was confirmed, with the anticipated arrival date pegged at Q1 (which we assume to mean early 2021).

This throws yet another log on the fire for zero-commission trading to become a greater reality as Tastyworks – the online brokerage – offers zero-commission trading in the US for stock trades and ultra-low pricing for options. Whether the pricing will remain similar to the US operations is unclear. However, what is clear is that in addition to Tastyworks potentially coming to market here in Canada, there are some important changes slated for CI Direct Investing and CG Direct (and potentially E*Trade) that will increase the level of competition among brokerages.

With a dynamic US online brokerage setting its sights on Canada, the incumbent online brokerages are going to have to get ready to move faster and with more exciting features in 2021.

Discount Brokerage Tweets of the Week

From the Forums

Take the Bull by the Horns?

DIY investors weigh in on whether or not to hold onto a stock that’s currently on hard times. Some forum users laud this as a once-in-a-lifetime opportunity, while others are less certain in this post.

(Re)New and Old

A Redditor turns to the forums in this post for advice on which renewable-energy ETFs others are investing in.

Into the Close

On the plus side, October is Investor Education Month, and there’s a pretty good chance that investors of all stripes will be subject to some kind of lesson-learning. For all of the perils that misinformation has laid bare, it’s probably wise to check out some of the many investor-education activities planned, starting with this list from the Ontario Securities Commission. Alternatively, there’s always one more thing on the list of things that you never saw coming in 2020: the latest TikTok craze, for 1977’s “Dreams” by Fleetwood Mac.

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Discount Brokerage Deals & Promotions – October 2020

*Update: October 30* October is generally a spooky month for several reasons: The weather is colder, the sky is gloomier, and, of course, there’s Halloween at the end of the month. 

 In true 2020 fashion, October is predicted to unveil some more than a few tricks and even a few treats from Canadian discount brokerages, making it more uncanny than usual. This month, not only will there be a rare Halloween blue moon, but the markets are shaping up to become increasingly volatile as the US presidential election nears. 

As online brokerages brace themselves for what looks to be a bumpy ride, DIY investors who want to brave the impending instability and do some trick-or-treating for investments can scroll on for the most current deals and promotions from various Canadian online discount brokerages.

For those hunting for an online trading account, be sure to check back again during the month. We will continue to monitor and provide updates on new discount brokerage deals, and look forward to a month filled with all kinds of surprises.

Expired Deals

*Update: Oct. 30 – HSBC InvestDirect’s 60-day free online equity and ETF trading promotion has officially ended on October 30th.*

Extended Deals

National Bank Direct Brokerage extended their commission-free trade offer which was launched in the summer. This deal was originally slated to expire on October 30th, but has now been extended until November 30th. See the table below for full details regarding the promotion and eligibility. 

New Deals

No new deals to report at this time.

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
  6. Offers for Young Investors

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
HSBC InvestDirect is offering 60 days of free online equity and ETF trading (up to 60 transactions) for new accounts opened during the promotional period. There is no minimum funding requirement for the accounts; however, the fund must be from outside HSBC InvestDirect. Trading commissions will initally be charged but will then be credited back to the customer’s account within 120 days after the free trading period ends. $0 60 days of free trading 60 days Please refer to the full Terms and Conditions October 30, 2020
New accounts opened between Jun 22 and Nov 30, 2020 will be awarded 100 free online trades in one year. This promotion applies to new and existing NBDB clients who uses the code “FREE2020” to open new accounts.There’s no minimum funding requirement, however some other restrictions may apply. $0 100 Free Trades 1 year Please refer to the full details of the deal. November 30, 2020
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, 2020
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, 2020

Expired Offers
Last Updated: Sep. 30, 2020 9:20PT

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
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTRADE account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
If you (an existing 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
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 5, 2021

Expired Offers
Last Updated: Sep 30, 2020 10:16PT

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 none
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $200 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 Transfer Fee Promo 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
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
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 $10,000 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 $10,000 Disnat 1% Commission Credit Promo January 8, 2020
Last Updated: Sep. 30, 2020 10:25PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Submit your information via the Hardbacon website to be referred to National Bank Direct Brokerage. Open and fund a qualifying account and you may receive up to 20 commission-free trades and discounted trading commissions. Be sure to read full terms and conditions. n/a Hardbacon Free Trade Promo none
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none

Expired Offers
Last Updated: Sep 30, 2020 11:19PT

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: Sep. 30, 2020 10:31PT

Offers for Young Investors

Brokerage Offer Type Eligible Age Range / Client Segment Offer Description Min. Deposit Expiry Date Link
Student Pricing Clients with CIBC Smart™ Account for students $5.95 per trade and zero annual account fees not required None CIBC Student Pricing
Broker@ge 18-30 18-30 years old investors Benefits: * 5 free transactions (Minimum deposit of $1,000 required) * No inactivity fees * No asset minimum to maintain for free registered accounts * Exclusive events * Disnat Mobile App $1,000 None Broker@ge 18-30
Offers for professionals & Students Students in selected fields of study Professionals and students in the below fields can benefit from a reduced pricing structure: * Engineering students * Legal, accounting and business students * Healthcare students * Health sciences students * Nursing students Benefits: * $5.95 commission on equities * $0 commission on ETFs * $0 annual administration fee not required None NBDB Student Pricing
Young Investors Offer 18-30 years old investors Accounts holders who are 30 years old or younger are offered 10 free trades each year. After the free transactions, a commission rate of $4.95 per transaction will be applied (which is just half of the regular price). not required None Young Investor Offer
Young investor pricing 18-30 years old investors Benefits: * $7.75 commissions for stock and ETF trades * No account minimums * No quarterly admin fees min. $50 a month through pre-authorized contributions. None Young Investor Pricing
Waiver of account maintenance fee Clients who have RBC Student account, currently or in the past 5 years. The Maintenance Fee ($25 per quarter) is waived, regardless of the account balance. not required None Zero Account Management Fee
Young Investors Offer Clients below 26 years old Low activity account administration fee and the RSP account administration fee are waived. not required None Young Investors Offer
Zero Account Administration Fee Clients below 26 years old The account administration fee ($24.95 per quarter) is waived. not required None $0 Account Administration Fee
Last Updated: Sep. 30, 2020 11:17PT