RBC DI – Page 32 – SparxTrading

Posted on May 18, 2014 by user — Leave a comment

Made for Millenials: BMO InvestorLine Launches New Offer at Younger Online Investors

In a world filled with TLDRs and endless opportunities to like, tweet, pin and share, finding the time or inclination to take on investing can be as much of a challenge as finding the money to do it with. And yet, as part of growing trend among Canadian online brokerages, would be and actual younger online investors (between the ages of 18 and 35) are increasingly being courted.

The latest promotion announced by BMO InvestorLine is aimed directly at the ‘millenials’ with the challenge to ‘procrastinate or prosper’. While the offer itself is interesting, the campaign and context around it is equally fascinating.

What the Numbers Say

Starting first with the offer itself, BMO InvestorLine is ponying up 35 commission-free trades (trades good for use for up to 90 days), a free investing eBook and they are prepared to waive the minimum balance fees on both registered and non-registered accounts (with a catch) for clients until they reach the ripe old age of 36. Also, for good measure, BMO InvestorLine is waiving the $5,000 minimum deposit requirement when opening an account.

The catch for the fee waive is that clients have to place 2 or more commission-generating trades within 6 months. Thus, the waiving of one fee actually requires the generating of another. Within a 12 month period that amounts to $39.80 per year in commission costs vs paying $100 per year if a client doesn’t meet the minimum balance requirements.

A little bit of extra homework reveals that the the offer to waive fees on non-registered accounts is actually standard practice. As such, the unique benefits of this offer are in the waived minimum deposit requirement and that registered accounts (such as RRSP accounts)can have minimum balances waived. With this offer trading activity can lower the total cost of the account for balances under $25,000 – a threshold that many under 36 may not hit.

In addition to the offer itself, there is also a contest with a cash prize of $3500 that individuals who sign up for a non-registered account may be eligible for.

A Digital Generation

More and more Canadian online brokerages are expected to start courting this segment of online investors, with three important players (Questrade, RBC Direct Investing and Virtual Brokers) already actively providing services or products for younger investors.

The challenge, then, is for younger online investors and those thinking about investing to be able to get up to speed on what their options are and find the best option for their needs.

Interestingly, the power of the digital age creates both the problem and solution for younger investors. On the one hand online brokerages can generate and distribute content much faster than ever before. This means there is lots more fragmented information for self-directed investors to sift through. On the other hand, the digital era has also spawned a number of tools such as our deals and promotions section as well as forums designed to make doing the homework on what options are out there much easier.

On the other side of the fence, the challenge to many online brokerages is to balance what they’ve learned about promotions and brand loyalty from baby boomers with the changing needs and preferences of the next generation of investors. And, although there may be more places to try and be seen, the biggest challenge will be staying relevant.

What it Boils Down to

Overall, then, the advantage of this offer appears to be for younger investors to be able to get up to 90 days in which to execute 35 trades commission-free, a free investing eBook from the Globe and Mail and a discount on the total cost of ownership of a non-registered account until the age of 36 or until the balance hits $25,000 (and stays there by their assessment date). The waived minimum deposit also makes this offer accessible.

While this latest offer from BMO InvestorLine may be worth considering, younger online investors will need to critically evaluate the kinds of information being sent their way via promotions and advertisements (did anyone notice the image on the iPhone of the 12 million dollar portfolio?) by all brokerages in order to make a well-informed decision.

Finally, even though the technology and tools exist to get more information more quickly, there is still time to do homework and make a proper decision. After all, for a younger investor, time is on their side.

Editors Note: The article has been updated to include information on the waived minimum deposit.

Posted on May 2, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – May 2, 2014

Dramatic playoff hockey, incredible playoff basketball, markets hitting new highs (again) and the new Star Wars cast announced. It looks like May is bringing more drama than it is flowers. As we round the corner into May, the drama among discount brokerages continues to unfold, albeit with less flare than the heart pounding finishes from both the Habs & Raptors.

In this week’s roundup we launch into May with a new set of deals and information on investor education events; we report in on the always interesting trading metrics and activity of investors stateside; we take a quick peek at another ranking of Canadian brokerages and we close off the week with some discount brokerage encounters for the far edge of the internet.

Let’s May-ke a Deal

Here in the SparxTrading camp, the beginning of the month signals a time for a new overview of discount brokerage deals and promotions. This month the deal landscape looked much the same as it did in April. With one new deal announced as we come into May, it appears that discount brokerages are digging in until June with their core offers. The only new deal to announce was from BMO InvestorLine. Click the following link to learn more about the discount brokerage deals for May 2014. And, if history is any indicator, there ‘may’ still be some deals coming down the wire.

Learning About Earning

On the educational front, it appears Canadian discount brokerages are upping the ante for their focus on providing education and support to clients looking to learn more about investing.

This past week TD Direct Investing held a 45 minute webinar covering its web-broker platform that reportedly had over 10,000 registrations (they didn’t mention how many actually logged in) – an enormous number for any kind of education focused event online or offline. TD Direct Investing has recently added webinars to their mix of educational offerings, scheduling the online events on the last Wednesday of every 2^nd month (the next one will be June 25^th 2014).

In addition to the brokerage-sponsored education events, investors will probably want to take note of the Small Cap Conference coming up in Vancouver next week and also the CambridgeHouse International Investor Conference in early June – both of which will offer some opportunities to learn more about investing. Check out our investor education events calendar for more details on what’s being offered where & when.

The More the Scarier

This past week, Interactive Brokers released their trading metrics for the month of April and depending on the frame of reference there is either reason for applause or reason to pause.

When compared to the same point last year, Interactive Brokers trading volumes look stunning – 20% higher Daily Average Revenue Trades (DARTs), margin loans 34% higher than last year and the number of customer accounts 16% higher. On a monthly basis, however, the gains are more modest for margin loans and customer accounts (2% improvement), and there was a 1% dip in DARTs. Additional coverage in this article from CNN also reconfirms the signals from other brokerages that retail investors are stepping back into the market.

Veterans of the market understand that having more investors in the market means a good run for a while but also the likelihood of getting close to a top. Interestingly the impact that the returning retail investor may have on the deals and promotions is that brokerages may not have to aggressively price promotions – choosing instead to focus on other features to attract and retain new customers.

Picking the Top Discount Brokerages for 2014

As part of their June issue, MoneySense teamed up with financial analysis firm Surviscor to provide their annual “Best Canadian Discount Brokerage” checkup. Author Dan Bortolotti walks through the Surviscor results while providing insights across different metrics like ease of use, banking integration, customer service, fees & commissions, reporting & record keeping and market intelligence.

Interestingly, the paradox of the ‘best discount brokerage’ shows up here in two ways. First, there are so many ‘bests’ across different categories that it’s difficult to proclaim unequivocally that one brokerage is ultimately the best. What is ‘best’ for one investor may not be for another. Second, the data used to assess brokerages relies on history to infer quality about the present and/or future. While that’s usually what anyone has to go on, it has been our observation when looking back at the historical analyses of the best discount brokerage rankings from years past (whether quarterly or semi-annually) who get’s crowned ‘the best’ changes quite often. In other words, pricing, features and service quality are constantly changing so titles such as ‘the best discount brokerage’ have a short shelf life in such a competitive space. Nonetheless, Bortolotti and Surviscor offered their ‘top picks’ overall as BMO InvestorLine and Scotia iTrade, with honorable mentions going to RBC Direct Investing and Qtrade Investor.

From the Forums

This week we thought we’d do something a bit different and venture out to the far reaches of the internet onto Reddit to find out what folks were saying about Canadian discount brokerages.

In this post from the Canadian personal finance section, readers chime in on BMO InvestorLine and how it stacks up to some of its competitors. As fair warning though, Reddit can be quit the wild arena for discussion and oddities so take the comments with a grain of salt.

That does it for this week’s roundup. With a full dance card of thrilling events this weekend, good luck to the Habs & Raptors – May the Fourth be With You.

Posted on May 1, 2014 by user — 3 Comments

Discount Brokerage Deals & Promotions – May 2014

[Updated: July 10, 2014]

While many in the markets might be thinking of May as the time to head for the exits, it is interesting to see what is or isn’t being offered by Canadian discount brokerages in terms of deals and promotions. Heading into a new month, there were a few deals from April that were poised to officially expire, most notable among them the TD Direct Investing deal as well as the BMO InvestorLine 500/500 offer. Of the two brokerages, only the latter has put forward a new deal for the next 3 months – a signal that one of the bigger players is timing and structuring their offering around a typical slowdown in the activity level of account opens.

So, as we start May, it appears that most discount brokerage deals are in a bit of a holding pattern. There are still at least 12 promotions on the table from 6 brokerages so for those shopping around for an online trading account deal, there is a decent selection of offers to consider. And, with news about increased participation from retail investors back in the market, we expect brokerages to continue to compete for new clients with new offers in the not-too-distant future. As always, we’ll continue to monitor for new deals & promotions.

New Deals

Update May 20, 2014:

A helpful reader (thanks Pierre-Luc!) shared the news of another BMO offer aimed at higher account balances/deposits. The “Select1500” promotion provides $700 cash back for deposits of at least $700 and $1500 for deposits of $500,000 or more. See table below for more info.

Update May 18, 2014:

Questrade is offering a promotion of a $50 Amazon.ca gift card for clients who open and fund a new account with at least $5,000 and who make at least 1 commission generating trade. This promotion appears to be short lived and expires at the end of June 2014. See the table below for more details
BMO InvestorLine launched a new promotion aimed at younger investors (between the ages of 18 and 35) with an offer of 35 free trades and the chance to enter a contest to win $3500. Automatic entry to the contest is granted to those opening new non-registered accounts. Included as part of the deal is an investing eBook from the Globe and Mail. See the table below for additional details and deadlines.

The one deal that is new for this month is an offer (the 50/50 promo) by BMO InvestorLine. For self-directed investors, this is an interesting one in that the commission credit ($50) and number of free trades (50) is lower than the deal that just ended but BMO InvestorLine is offering a year-long subscription (~$240 value) to GlobeInvestor as part of the sign-up offer. The total face value of the offer works out to be just shy of $788.

Strategically this offer could work for or against BMO InvestorLine. Several of the other bank-owned online brokerages advertise in the Globe and Mail so providing new clients with more access to the paid-only GlobeInvestor means putting those same clients into a channel where other advertisers will be looking to win them back over. In one plausible scenario, it could prompt other brokerages to launch some headline grabbing deals between now and July which would certainly get those newly opened accounts thinking hard about the deal they were offered. We’ll certainly be watching closely to see what unfolds from here though.

Extended Deals

At this time it looks like most of the deals that weren’t set to expire at the end of April have expiry dates past May.

Expired Deals

[Update: July 10, 2014]

Editor’s Note: A representative from BMO Investorline has contacted us directly to let us know that the terms for the Select1500 and Select700 offers are being updated and that this will only be offered to select existing clients. As such we have removed this offer from the deals sections in which it appears.

The two big deals that expired at the end of April were the offers by TD Direct Investing and BMO InvestorLine respectively. TD Direct Investing also had an account transfer offer that expired along with their commission-rebate offer.

Discount Brokerage Deals

Brief Description	Minimum Deposit Amount	Commission/Cash Offer Type	Time Limit to Use Commission/Cash Offer	Details Link	Deadline
A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform.	n/a	Discounted Commission Rates	none	For more details click here	none
For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer.	n/a	35 commission-free trades	90 days	Youth Promotion	October 31, 2014
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	none	none	none
Open an account with Virtual Brokers with a deposit at least $1,000 and Virtual Brokers will offer 25 commission free trades which can be used for up to 1 year. Use promo code “FTR2” when signing up. This offer is open to new clients only. Be sure to read the terms and conditions for full details on this offer.	$1,000	25 commission-free trades	365 days	25 free trades offer	June 30, 2014
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account.	$1,000	$50 commission credit (friend) $100 commission credit (referrer bonus)	60 days	Refer a friend	none
Open a new account (TFSA, Margin or RRSP) by July 1 2014 A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code QT100 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.	A)$1,000 B)$10,000	A)10 free trades B)100 free trades	60 days	100 commission-free trades	July 1, 2014
Open and fund a new account at Questrade with at least $5000 and place at least one commission generating trade, and Questrade will provide a gift card from Amazon.ca worth $50. Use promo code BONUS50 when signing up. Be sure to read the full terms and conditions for more information.	$5,000	$50 gift card from Amazon	Receive gift card after placing 1 commission generating trade	Amazon Gift Card Promo	June 30, 2014
As part of their Stockscores tour, Disnat Direct is offering a “hat trick” promotion. Open a new account with at least $10,000 by June 15, 2014 and receive: $300 in commission credits, 3 months of trading at $5 commission per trade, 3 months of platform access to DDWeb/DDXtra and 1 year’s free subscription to TradeScores daily newsletter. Use the promo code “Hat Trick” when registering via phone. Read the terms and conditions for more details.	$10,000	1) $300 commission credits 2) 3 months of $5/trade commission rate 3) 3 months platform access to DDWeb/DDXtra 4)1 year’s free subscription to TradeScores daily newsletter	1) 3 months	Disnat Direct Hat Trick Promotion	June 15, 2014
If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link.	A)$10,000 B)$50,000+	A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50)	60 days	Refer A Friend to Scotia iTrade	June 30, 2014
Open and fund a new Scotia iTRADE account with at least $15,000 before June 30, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions.	$15,000	100 commission-free trades ($999 value @ $9.99 commission rate)	60 days	Scotia iTrade 100 free trades + FlightDesk	June 30, 2014
Open a new account by June 29 & fund with: A) between $15,000-$99,99 B) $100,000-$499,999 or C)$500,000+ and receive either A)$50 cash back or 100 free trades B)$250 cash back or 250 trades or C)$500 cash back or 500 free trades. Also, Scotia iTrade is including 6 months free access to their FlightDesk trading platform. Use promo code: SPTRD14 for free trades and CSHSG for cash back. Be sure to read the terms & conditions on this deal.	A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+	A)$50 or 100 free trades B)$250 or 250 free trades C)$500 or 500 free trades	Cash Back: deposit by Feb 28/15 Commission Rebate: 90 days	$500 Cash Back or 500 Free Trade promo	June 29, 2014
Open a new qualifying account or fund an existing qualifying account by July 31, 2014 with at least $50,000 and BMO InvestorLine will provide a $50 cash back offer, 50 commission-free trades and a 1 year subscription to GlobeInvestor. Use promo code BONUS to qualify when signing up. Be sure to read full deal terms and conditions.	$50,000	$50 cash back 50 commission-free trades ($497.50 value) 1 year subscription to Globe Investor (~$228 value)	Cash Back: Payout after 6 months Commission-Credits: 50 days	Spring “New Investors” 50 50 Promotion	July 31, 2014
Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$50,000	$300 commission credit	6 months	Disnat $300 Commission Credit Promo	August 29, 2014
Open and fund a new account with Questrade before May 30th 2014 and receive either A)$100 or B)$250 cash back for a deposit of either A)$50,000 or more or B)$100,000 or more. This offer is open to new and existing clients. Use promo code CASHBACK250 to qualify. Be sure to read the full terms and conditions associated with this offer.	A)$50,000 B)$100,000	A)$100 cash back B)$250 cash back	Payout occurs within 30 days of account funding	Cash Back 250 Offer	May 30th, 2014
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.	A) $50,000 – $249,000 B) $250,000+	A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100	Payout occurs after 60 days (subject to conditions).	Refer A Friend Terms & Conditions	October 31, 2014

Transfer Fee Deals

Brief Description	Maximum Transfer Fee Coverage Amount	Minimum Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
Tranfer $15,000 or more and Scotia iTrade may cover up to $150 of the transfer fee.	$150	$15,000	$500 Cash Back or 500 Free Trade promo	June 29, 2014
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees	$135	$15,000	Transfer Fee Rebate Details	none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	none
Virtual Brokers will cover transfer fees from your transferring institution to a maximum of $150 per account. This offer is only applicable to accounts opened with at least $25,000 in equity before June 30, 2014	$150	$25,000	Transfer Fee Promo	June 30, 2014
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees	$135	$25,000	Transfer Fee Rebate	none
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.	$125	$25,000	Transfer Fee Promo	none
Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$150	$50,000	Disnat $300 Commission Credit Promo	August 29, 2014

Posted on April 11, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – April 11th 2014

Between a few days of markets selling off and glitch named ‘heartbleed’ that is turning the internet upside down, it has been a tough week for anyone sitting behind a screen. For those with a view of the outdoors, however, it has probably been even tougher as the nice weather has finally started to show up in Montreal and Toronto (save the bragging Vancouver). The online brokerages may have to wait to get outside, however, as many of them were very busy this past week dropping prices, introducing products and navigating the ‘busy season’ for investors.

In this week’s roundup we look at an interesting trend highlighted by one of Canada’s largest discount brokerages. Next we look at another cost reducing product for investors, this time in the mutual fund space. A pair of updates to the deals section takes us to the halfway point. For TFSA holders, we found a great video offering tips for those trading US stocks with dividends. Finally we round out with some interesting tweets that we spotted as well as some informative forum threads.

Thoughtful Thirties

There’s something about turning 30 that makes people, and discount brokerages, a little more reflective. This past week, as part of their 30^th anniversary, TD Direct Investing reflected on how the profile of the ‘typical’ investor has changed since the launch of their discount brokerage service in 1984. As part of their news release, TD Direct Investing highlighted that online investors are more diverse with younger investors and women investors forming a greater percentage of the investing population. The timing of this announcement was interesting as there were two separate articles that also highlighted the growing interest and perhaps the advantage that younger investors have in the online trading space.

Mutually Assured Discount

BMO InvestorLine recently announced the roll out of a new group of 33 discounted mutual funds, known as Series D, to online investors. Also in the announcement was the news that management fees were being lowered on the Series F products. The move by BMO InvestorLine into the low-cost mutual fund arena appears to be in line with both RBC Direct Investing and TD Direct Investing in this space.

Discount Brokerages Dealing Back In

A pair of moves in the discount brokerage promotions section over the past week signaled that competition for clients remains high.

Starting with Questrade, they have taken a seat back at the $100,000 table by introducing a cash back offer of $250. Their iPad mini offer (or cash back) offer for deposits at this level recently expired however this latest move looks like they’re interested in buying back in.

BMO InvestorLine also checked on their $300 + 300 trade offer by further extending the deadline for this deal from April 9^th to April 30^th.

Little Birdies

Birds chirping is a great sign of spring. Online however, tweets from investors across the Twitterverse can be a little less delightful. This past week there were a couple of interesting moments we spotted. First, as Questrade found out, even though the ice on the sidewalks is gone, there’s still room for tax slips to cause problems. Of course, with the warmer weather also comes a bit of heat – which is what one twitter user sent Scotia iTrade’s way when asking about the ability to route orders to the new ‘HFT – free’ exchange IEX.

No Party in the TFSA

While Miley Cyrus may enjoy rocking out in the USA, having US dividend paying stocks in a TFSA is a bit of a portfolio wrecking ball. The following video from Rob Carrick and the Investor Education Fund provides a quick overview on how to navigate the tricky waters of withholding taxes and registered accounts.

From the Forums

Bucking a Fee

In the following post from RedFlagDeals, community members were alerted to an interesting observation from an Interactive Brokers Canada client – namely that minimum monthly fees of $10 appear to be waived for clients with assets over $100,000.

D is for…

The announcement by BMO InvestorLine of a low cost mutual fund series that could rival either TD or RBC was certainly enough to get the discussion going on the forums. Interestingly while the announcement caught the attention of forum members, so too did the way in which the roll-out took place.

That does it for this week’s roundup. For those in the west – enjoy the summer, and for those in the east, brace yourselves for a potential dusting. Yes, April is still full of surprises all around. For those trying to make sense of all the heartbleed hype, here is a comical explanation:

Posted on April 1, 2014 by user — Leave a comment

Discount Brokerage Deals & Promotions – April 2014

[*Updated 4/15/14*] There are noticeably fewer discount brokerage deals & promotions at the start of April than at the same time last month. That said, this is spring and there are any number of surprises that can pop up.

While the month starts off on a slightly leaner note than month’s past there were a couple of very big deals announced in March from TD Direct Investing as well as from Desjardins Online Brokerage (Disnat) which should have rival brokerages cooking up a response in the near future.

Coming into April, several deals saw an extension of their deadlines including deals from BMO InvestorLine, Disnat, Virtual Brokers and Scotia iTrade. Of these deals, BMO’s offer is set to expire in early April which suggests that something interesting may be coming from this online brokerage in the days to come.

In terms of expired offers, the major offers from HSBC InvestDirect and National Bank Direct Brokerage were the biggest ones that concluded at the end of March. That said, there are likely promo offers that NBDB is working towards as they continue their push to maintain competitiveness with the bigger online brokerage players in the space.

For investors looking for a promotion or a deal on an online trading account, the good news is that there is still lots to choose from and there are offers that span all activity levels of investor. If the previous months have been any indicator, however, there is likely more to come in the near future especially as Canadians ponder which online brokerage they’d like to invest their income tax refunds with.

New Deals

[Updated 4/15/14] – Scotia iTrade has launched a sizable deal this month with a $500 cash back OR 500 free trade offer for deposits of $500,000 or more. This is largest deposit promotion we’ve seen in some time, a sign that competition is heating up. Cash back or free trade offers are also being made available for deposits of $15,000-$99,999 ($50 or 100 free trades) and for deposits of $100,000-$499,999 ($250 or 250 free trades). In addition, this deal also comes with 6 months free access to Scotia iTrade’s FlightDesk platform and coverage of transfer fees up to $150. More details below]

[Updated 4/14/14 – Questrade jumped back into the deals space again this month, this time with the launch of their cash back offer of $100 for a deposit of $50,000 or $250 for a deposit of $100,000 or more. More details below.]

Disnat ‘hat trick’ offer
TD Direct Investing Free Trade Offer
Questrade Cash Back Promotion
Scotia iTrade $500/500 trade

Extended Deals

BMO InvestorLine $300 cash back + 300 trade offer [Update 4/14/14: BMO has extended the deadline for this offer from April 9th to April 30th]
Disnat $300 commission credit
Virtual Brokers 25 free trades offer
Scotia iTrade refer-a-friend

Expired Deals

BMO InvestorLine: RSP Cross Sell Promotion
Credential Direct’s 5+5 Offer
HSBC InvestDirect Dalbar Award Trading Offer
NBDB Commission Credit Offer
Questrade iPad Mini Offer
Questrade Unlimited Trade Offer
RBC Direct Investing’s 20 Free Trade Offer
Scotia iTrade Stanley Cup Promotion

Discount Brokerage Deals

Brief Description	Minimum Deposit Amount	Commission/Cash Offer Type	Time Limit to Use Commission/Cash Offer	Details Link	Deadline
A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform.	n/a	Discounted Commission Rates	none	For more details click here	none
Open and fund a new account at TD Direct Investing with either A)$99,999 or less or B)$100,000 or more and receive commission rebates on either A)30 trades or B)300 trades. New accounts must be opened by April 30, 2014. Be sure to read the terms and conditions for full information on this offer.	A)$0-$99,999 B)$100,000+	A) 30 commission free trades (rebated) B) 300 commission free trades (rebated)	Trades must be executed by August 1, 2014 4pm ET to qualify for rebate.	TD Direct Investing Free Trade Offer	April 30, 2014
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	none	none	none
Open an account with Virtual Brokers with a deposit at least $1,000 and Virtual Brokers will offer 25 commission free trades which can be used for up to 1 year. Use promo code “FTR2” when signing up. This offer is open to new clients only. Be sure to read the terms and conditions for full details on this offer.	$1,000	25 commission-free trades	365 days	25 free trades offer	June 30, 2014
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account.	$1,000	$50 commission credit (friend) $100 commission credit (referrer bonus)	60 days	Refer a friend	none
Open a new account (TFSA, Margin or RRSP) by July 1 2014 A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code QT100 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.	A)$1,000 B)$10,000	A)10 free trades B)100 free trades	60 days	100 commission-free trades	July 1, 2014
As part of their Stockscores tour, Disnat Direct is offering a “hat trick” promotion. Open a new account with at least $10,000 by June 15, 2014 and receive: $300 in commission credits, 3 months of trading at $5 commission per trade, 3 months of platform access to DDWeb/DDXtra and 1 year’s free subscription to TradeScores daily newsletter. Use the promo code “Hat Trick” when registering via phone. Read the terms and conditions for more details.	$10,000	1) $300 commission credits 2) 3 months of $5/trade commission rate 3) 3 months platform access to DDWeb/DDXtra 4)1 year’s free subscription to TradeScores daily newsletter	1) 3 months	Disnat Direct Hat Trick Promotion	June 15, 2014
If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link.	A)$10,000 B)$50,000+	A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50)	60 days	Refer A Friend to Scotia iTrade	June 30, 2014
Open and fund a new Scotia iTRADE account with at least $15,000 before June 30, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions.	$15,000	100 commission-free trades ($999 value @ $9.99 commission rate)	60 days	Scotia iTrade 100 free trades + FlightDesk	June 30, 2014
Open a new account by June 29 & fund with: A) between $15,000-$99,99 B) $100,000-$499,999 or C)$500,000+ and receive either A)$50 cash back or 100 free trades B)$250 cash back or 250 trades or C)$500 cash back or 500 free trades. Also, Scotia iTrade is including 6 months free access to their FlightDesk trading platform. Use promo code: SPTRD14 for free trades and CSHSG for cash back. Be sure to read the terms & conditions on this deal.	A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+	A)$50 or 100 free trades B)$250 or 250 free trades C)$500 or 500 free trades	Cash Back: deposit by Feb 28/15 Commission Rebate: 90 days	$500 Cash Back or 500 Free Trade promo	June 29, 2014
Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$50,000	$300 commission credit	6 months	Disnat $300 Commission Credit Promo	August 29, 2014
Open and fund a new account with Questrade before May 30th 2014 and receive either A)$100 or B)$250 cash back for a deposit of either A)$50,000 or more or B)$100,000 or more. This offer is open to new and existing clients. Use promo code CASHBACK250 to qualify. Be sure to read the full terms and conditions associated with this offer.	A)$50,000 B)$100,000	A)$100 cash back B)$250 cash back	Payout occurs within 30 days of account funding	Cash Back 250 Offer	May 30th, 2014
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.	A) $50,000 – $249,000 B) $250,000+	A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100	Payout occurs after 60 days (subject to conditions).	Refer A Friend Terms & Conditions	October 31, 2014
[Main offer]Open a new account or deposit new funds of $100,00 or more and you can be eligible for cash rebates of $250 and 250 commission-free trades (Promo code: RSP250). [Bonus Offer] If you open a new account or fund another account you could also be eligible for an additional $50 and 50 commission-free trades (Promo code ADD50). Be sure to read the full details & terms of this offer.	$100,000 (main offer) $5000 (bonus offer)	[main offer] $250 cash back + 250 commission-free trades (max value $2500) [Bonus offer] $50 + 50 commission-free trades	90 days	$300 + 300 trade offer	April 30, 2014

Transfer Fee Deals

Brief Description	Maximum Transfer Fee Coverage Amount	Minimum Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
Tranfer $15,000 or more and Scotia iTrade may cover up to $150 of the transfer fee.	$150	$15,000	$500 Cash Back or 500 Free Trade promo	June 29, 2014
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees	$135	$15,000	Transfer Fee Rebate Details	none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	none
Transfer at least $25,000 to TD Direct Investing and TD will cover up to $150 in transfer fees	$150	$25,000	TD Direct Investing Free Trade Offer	April 30, 2014
Virtual Brokers will cover transfer fees from your transferring institution to a maximum of $150 per account. This offer is only applicable to accounts opened with at least $25,000 in equity before June 30, 2014	$150	$25,000	Transfer Fee Promo	June 30, 2014
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees	$135	$25,000	Transfer Fee Rebate	none
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.	$125	$25,000	Transfer Fee Promo	none
Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$150	$50,000	Disnat $300 Commission Credit Promo	August 29, 2014

Posted on March 21, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – March 21, 2014

If there is one thing that March madness can guarantee, its unpredictability. In the discount brokerage space this was certainly the case as we were watching to see who, if anyone, would launch a promotion that could make a splash in the already ultra-competitive online brokerage market. This past week it happened.

In this week’s roundup we’ll take a look at that deal launched by one of Canada’s largest bank-owned brokerages, then see which major online brokerage was crowned ‘#1 online brokerage’. Next we’ll take a peek at some interesting technology that brokerages south of the border are tinkering with. Finally, we round out this week by looking at a couple of interesting investor forum posts.

Kind of a Big Deal

On the heels of their now lowered standard commission offer, TD Direct Investing has upped the ante in the discount brokerage price battle by announcing a new promotion. Until April 30^th TD is offering up to 300 commission-free trades for those who open a new account with a deposit of at least $100,000. For those who are depositing less than $100,000, TD is offering 30 free trades. Recently, RBC Direct Investing had a 20 commission-free trade offer however this new promotion by TD Direct Investing is going to make a splash because the sub-$100K depositor can land 30 free trades good for 90 days (or slightly longer depending on when the account is opened). At the $100K+ deposit level, there is still BMO InvestorLine’s offer of $250 + 250 commission-free trades that comes close however the TD Direct Investing deal edges it out when factoring in the cost per trade. At the very least, TD’s latest offer will spur other bank-owned brokerages to put together an offer that can rival the combination of promotion plus lowered standard commission pricing. To learn more about all of the current discount brokerage promotions here.

Interactive Brokers Wins Top Online Brokerage

For the second consecutive year, US financial publication Barron’s has rated Interactive Brokers as the #1 online brokerage. The US online brokerage market is a highly competitive marketplace so edging out the field is no easy feat. Barrons’ ranking compared 20 discount brokerages across 8 categories they felt were relevant to evaluating the user experience and scored all of the online brokerages out of 5 for each category. Interestingly, Interactive Brokers led the field on costs and did well on portfolio analysis as well as trading experience and technology.

Timing the Market

With the competition being so fierce in the US, not only do prices go down, but innovation tends to go up. This interesting article about what US discount brokerage Fidelity is trying to do with smart watches definitely highlights that. While it appears that the jury is still out on whether a watching your stocks on your watch will improve your market timing, it is nonetheless interesting to peek over the fence at our neighbours to the south to see what, if anything, could come our way in Canada. In this case, self-directed investors might be staring at their regular old watches (or smartphones) for quite some time before the smartwatch trading applications land at a Canadian discount brokerage.

From the Forums:

In this week’s forum posts, a pair of interesting threads from Canadian Money Forum crossed our radar.

Settling the Gambit

One of the interesting techniques for potentially saving on US currency conversion fees is called Norbert’s Gambit.

In this thread, there is a great example of the importance of understanding the trade settlement process in detail as well as which discount brokerages tend to fare better for clients wishing to perform this technique.

Here’s My Number, So Call Me Maybe

For many DIY investors, one of the important sources of information about the potential of a stock comes from analysts who follow the company’s ins and outs carefully. The recommendations analysts make about price targets are interesting because they seem to suggest a level of certainty that, in reality, just doesn’t exist. This thread wonders out loud what the value of analyst price targets are and the answers from the forum are worth a read.

That does it for this week’s roundup. Enjoy the first official spring weekend and hopefully it won’t be filled with too many basketball or weather induced facepalms!

Posted on March 7, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – March 7, 2014

The beginning of March has seen a frenzied week across international markets and here at home in the discount brokerage space. While the world is watching to see what unfolds between the Ukraine and Russia, markets paused only briefly on the news but then continued to push higher into new all-time highs (for the S&P 500) illustrating once again that markets and headlines don’t always agree on the state of the world. Sorry bears.

Closer to home, many discount brokerages were busy attending to the last minute RSP contributors who managed to get in ahead of the March 3^rd deadline. Now that RSP season is over, brokerages are taking a slight pause before trying to land the deposits from tax returns into new trading accounts.

In this week’s roundup, we cover yet another major online brokerage that has dropped their standard commission pricing, we report trading activity from a an independent online brokerage, news from a major investor conference that took place in Toronto and a couple of interesting threads from the Canadian investor forums.

Desjardins Online Brokerage Lowers Commissions

It seems that there has hardly been a week that has gone by that hasn’t seen an announcement by a major online brokerage lowering their standard commission fees.

This past week, Desjardins Online Brokerage (aka Disnat) became the latest discount brokerage to do so by lowering their standard equity commission trading rates on their Disnat Classic platform from $29+ to $9.95. While the Disnat Classic rates have changed, Disnat Direct will still have the same standard pricing structure for equity trading ($19.95+).

Also lowered is the cost of options trading via Disnat Classic – it is now a $1.25 per contract with a minimum charge of $8.75 per trade.

As with the bank-owned brokerages, there may be an administrative (aka inactivity or minimum account balance) fee that is charged depending on the trading level or balance or whether a registered account is held.

For Disnat Classic, an administrative fee of $25 per quarter can be waived for account holders whose portfolio balances are greater than $15,000, or if they make 2 or more trades are within a year or if they also hold a registered account.

Trading Figures Still Strong

The passage into March means that trading activity statistics from Interactive Brokers were made available for the month of February. According to the latest figures, trading was up 19% on a year over year basis compared to February 2013, however on a month-over-month basis the Daily Average Revenue Trades (DARTs) were about the same. DARTs for February 2014 totaled 581,000. The number of client accounts at Interactive Brokers continued higher with 247,300 accounts representing a 2% growth over the prior month and a 19% increase over the same point last year.

Prospecting for Prospects

One of the world’s largest mining conventions took place this past week in Toronto. The Prospectors & Developers Association of Canada (PDAC) held their annual convention and, despite the downturn in commodity markets, there were enormous crowds of investors (retail and institutional) as well as industry, government and media in attendance.

The size and scale of the convention reflects just how important it has become as a place for the mining industry to converge and for deals to get done. Prime Minister Stephen Harper spoke at the event as well as other key political representatives.

One thing that stood out was the sheer number of attendees looking to generate business – a great example of the fact that prospecting underground also requires a lot of prospecting above ground too.

Commission-Free ETFs Back on the Radar

With pricing at major bank-owned online brokerages dropping into line with one another, many of these banks as well as other brokerages are going to be trying harder to highlight features and benefits apart from pricing that make them stand out from their peers.

One of the products offerings that will likely get attention as a result of this are commission-free ETFs. A recent article from the Globe and Mail this past week reiterates much of what is covered in our special series comparing commission-free ETFs at online brokerages – namely that while paying low or now commissions is nice, ultimately you have to look at what exactly you are buying and whether that is the right fit for your portfolio needs.

Recently, Rob Carrick of the Globe and Mail has also put together an ‘ETF Buyer’s Guide’ available via the following links:

From the Forums

Portfolio Orientation

A post from this past week’s forum scan serves as a great example of the importance of knowing what it is that you are buying when looking at either ETFs or low-cost mutual funds. Click here to read what the Canadian Money Forum users had to say to one RBC Direct Investing client who’s decided to go it alone.

On the Margins

Margin and margin accounts are typically used for trading stocks or options, however there are cases when they can be used for more. This post from Canadian Money Forum shows how one user is thinking outside of the box when using margin, however the message from the community is: if (or when) things go down in value, beware of the dreaded margin call.

That does it for this week’s roundup. In case you missed it, here’s the link to the March Madness edition of our monthly newsletter. Have a great weekend and don’t forget, clocks spring forward by an hour!

Posted on March 1, 2014January 30, 2021 by user — Leave a comment

Discount Brokerage Deals & Promotions – March 2014

*Updated March 28/2014* The deals and promotions offered by Canadian discount brokerages at the outset of March are largely unchanged from February. While the the deals may be starting March looking one way, there’s a good chance that the end of March will look very different. Of the 18 offers currently available, 12 are set to expire within or by the end of this month. Several bank-owned online brokerage promotions are set to end within the first two weeks of March so there is a good chance that either extensions and/or additional deals will start to show up as we ‘march’ on through the month. At the start of the month, however, there is only one noteworthy offer that was launched by HSBC InvestDirect late into February.

Expired Deals

The following discount brokerage deals expired this past February:

CIBC Investor’s Edge offer which essentially expired at the outset of February
BMO InvestorLine’s Lunar New Year Offer
HSBC InvestDirect’s 5 free trades for an account transfer offer is now expired

Extended Deals

The expiry date on Questrade’s iPad Mini offer has been extended to March 31^st 2014. Questrade has also extended their 100 free trade offer to July of 2014.

New Deals & Promos

[Update March 28/2014: Desjardins Online Brokerage (aka Disnat) is launching a new promotion as part of their Stockscores education tour. The “hat trick” promotion features a series of offers bundled together for individuals who open a Disnat Direct account and deposit at least $10,000. The offer includes:

$300 in commission credits (good for up to 3 months)
3 months of their lowest commission level – $5/trade
3 months access to their DDweb and/or DDXtra trading platforms
1 year’s subscription to the Tradescores daily newsletter

See the table below for additional info]

[Update March 18/2014: TD Direct Investing has just announced a monster offer as part of their 30 year anniversary: 300 commission free trades for deposits of $100,000 or more. This is by far one of the biggest offers to come from TD Direct Investing and is much larger than any of the other bank-owned peers for this deposit level. For those deposits less than $99,999, TD is offering 30 commission free trades. The terms and conditions on this offer are also very straightforward so it’s worth a look over for those thinking about TD. More details in the table below]

The most noteworthy deal to show up late into February was HSBC InvestDirect’s unlimited trading offer to celebrate their recent strong performance on the Dalbar direct brokerage service award. This offer is available to existing and new clients and enables qualifying clients to trade North American as well as international equities commission-free for 30 calendar days. It is important to note that commissions are charged at the time of the trade and are refunded after 90 days. Of course one of the big draws of this offer is that there is no minimum deposit required to qualify.

Discount Brokerage Deals

Brief Description	Minimum Deposit Amount	Commission/Cash Offer Type	Time Limit to Use Commission/Cash Offer	Details Link	Deadline
A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform.	n/a	Discounted Commission Rates	none	For more details click here	none
Open a new account at HSBC Invest Direct by March 31st, 2014 and receive 30 calendar days of free equity (including ETF) trading of North American and International equities. This offer is open to new and existing HSBC InvestDirect clients. Be sure to read the terms and conditions and the FAQs for more details.	$0	Unlimited equity trades (commissions to be rebated within 90d)	30 days	HSBC Dalbar Award Offer Terms & Conditions. For FAQ information, click here	March 31, 2014
Open and fund a new account at TD Direct Investing with either A)$99,999 or less or B)$100,000 or more and receive commission rebates on either A)30 trades or B)300 trades. New accounts must be opened by April 30, 2014. Be sure to read the terms and conditions for full information on this offer.	A)$0-$99,999 B)$100,000+	A) 30 commission free trades (rebated) B) 300 commission free trades (rebated)	Trades must be executed by August 1, 2014 4pm ET to qualify for rebate.	TD Direct Investing Free Trade Offer	April 30, 2014
Open a new account with RBC Direct Investing before March 3, 2014 and they will offer 20 commission free trades that are good for use for up to 90 days. Use promo code: 20W17 when opening the account. Be sure to read the offer page and the terms and conditions page for full information.	$0	20 free trades (equity & etf)	90 days	For the offer page, click here and for the terms and conditions, click here	March 3, 2014
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	none	none	none
Open an account with Virtual Brokers with a deposit at least $1,000 and Virtual Brokers will offer 25 commission free trades which can be used for up to 1 year. Use promo code “25FTNE” when signing up. This offer is open to new clients only. Be sure to read the terms and conditions for full details on this offer.	$1,000	25 commission-free trades	365 days	25 free trades offer	March 31, 2014
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account.	$1,000	$50 commission credit (friend) $100 commission credit (referrer bonus)	60 days	Refer a friend	none
Open a new account (TFSA, Margin or RRSP) by July 1 2014 A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code QT100 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.	A)$1,000 B)$10,000	A)10 free trades B)100 free trades	60 days	100 commission-free trades	July 1, 2014
Open a new TFSA, margin or registered account with Questrade and receive either A) 31 days B) 62 days or C) 90 days of unlimited commission-free stock & options trades. Use promo code UNLIMITEDW14 when signing up. Be sure to read the terms and conditions for more information.	A)$1,000 B)$25,000 C)$50,000	Unlimited commission-free trades during associated period.	A) 31 days B) 62 days C) 90 days	Questrade Unlimited Trade Promo	March 3, 2014
As part of their Stockscores tour, Disnat Direct is offering a “hat trick” promotion. Open a new account with at least $10,000 by June 15, 2014 and receive: $300 in commission credits, 3 months of trading at $5 commission per trade, 3 months of platform access to DDWeb/DDXtra and 1 year’s free subscription to TradeScores daily newsletter. Use the promo code “Hat Trick” when registering via phone. Read the terms and conditions for more details.	$10,000	1) $300 commission credits 2) 3 months of $5/trade commission rate 3) 3 months platform access to DDWeb/DDXtra 4)1 year’s free subscription to TradeScores daily newsletter	1) 3 months	Disnat Direct Hat Trick Promotion	June 15, 2014
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	March 31, 2014
Deposit $5,000 into an RSP and $5,000 into either a cash or TFSA account and Credential Direct will waive the $50 administration fee for the RSP account. Be sure to contact their customer service to clarify the exact terms & conditions.	$10,000 ($5000 into RSP + $5000 into TFSA/Cash account)	$50 admin fee waived	none	5+5 Promotion	March 3, 2014
Open a new account with Scotia iTrade and fund it with at least $15,000, and you can receive 100 commission-free trades, 60 days of FlightDesk and be entered into a contest for a trip to the Stanley Cup Finals or one of 5 runner-up prizes of iPad Air (64gb). Use Promo code RS13-SCE when opening the account. Existing clients must call customer service to qualify for contest entry. There are lots of terms, conditions, and rules/regulations so be sure to read them for more details.	$15,000	100 free trades ($999 max value @ 9.99 commission rate)	60 days	Stake Your Claim to the Stanley Cup Promotion	March 24, 2014
Open a new account before March 31, 2014 with at least a)$20,000 or b)$100,000 and National Bank Direct Brokerage will offer up to a)$500 or b)$1000 in commission fee credits. Use the promo code “CASHBACK2014” when signing up to qualify for this offer. Be sure to read the terms and conditions for this offer especially the refund dates for commission credits.	A)$20,000 B)$100,000	A)$500 commission credit B)$1000 commission credit	90 days	Invest and get cash back offer	March 31, 2014
Open and fund a new Scotia iTRADE account with at least $15,000 before June 30, 2014 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code HUN-SP. See details link for further terms and conditions.	$15,000	100 commission-free trades ($999 value @ $9.99 commission rate)	60 days	Scotia iTrade 100 free trades + FlightDesk	June 30, 2014
Open and fund a new RSP or TFSA account with BMO InvestorLine with either A)$25,000 or B)$50,000 and they will pay either A)$100 or B)$250 cash back. The promo code for the $100 cash back is “SELECTR100” and for the $250 cash back offer is “SELECTR250”. Be sure to read the terms & conditions for more information.	A)$25,000 B)$50,000	A)$100 B)$250	Payout occurs after 6 months	Registered Account Cross Sell Campaign	March 31, 2014
Disnat is offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$50,000	$300 commission credit	6 months	Disnat $300 Commission Credit Promo	March 31, 2014
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.	A) $50,000 – $249,000 B) $250,000+	A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100	Payout occurs after 60 days (subject to conditions).	Refer A Friend Terms & Conditions	October 31, 2014
[Main offer]Open a new account or deposit new funds of $100,00 or more and you can be eligible for cash rebates of $250 and 250 commission-free trades (Promo code: RSP250). [Bonus Offer] If you open a new account or fund another account you could also be eligible for an additional $50 and 50 commission-free trades (Promo code ADD50). Be sure to read the full details & terms of this offer.	$100,000 (main offer) $5000 (bonus offer)	[main offer] $250 cash back + 250 commission-free trades (max value $2500) [Bonus offer] $50 + 50 commission-free trades	90 days	$300 + 300 trade offer	March 10, 2014
Open a new account or transfer new assets of $100,000 or more and choose between receiving either a)A 16GB iPad Mini or B)$250 cash back. Be sure to choose the appropriate code (IPADMINIW13 for the iPad Mini and CASH250W13 for the cash back offer) for each offer. There are several important conditions so be sure to read the terms and conditions for this offer.	$100,000	A) iPad Mini (16 GB) [~$270-320 value] B) $250 Cash	Payout/iPad delivery occurs after 30 days.	iPad Mini or $250 Cash Back	March 31, 2014

Transfer Fee Deals

Brief Description	Maximum Transfer Fee Coverage Amount	Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees	$135	$15,000	Transfer Fee Rebate Details	none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	none
Transfer at least $25,000 to TD Direct Investing and TD will cover up to $150 in transfer fees	$150	$25,000	TD Direct Investing Free Trade Offer	April 30, 2014
Virtual Brokers will cover transfer fees from your transferring institution to a maximum of $150 per account. This offer is only applicable to accounts opened with at least $25,000 in equity before March 31, 2014	$150	$25,000	Transfer Fee Promo	March 31, 2014
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees	$135	$25,000	Transfer Fee Rebate	none
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.	$125	$25,000	Transfer Fee Promo	none
Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat300. See details link for more info.	$150	$50,000	Disnat $300 Commission Credit Promo	March 31, 2014

Posted on February 25, 2014 by user — Leave a comment

Ten is the New Thirty: A Review of Price Drops at Canadian Bank-Owned Online Brokerages – Part 2

In part one of this series, we looked at the recent moves by Canadian bank-owned online brokerages to reduce their standard commission fees. Since standard commission fees are just part of the fee picture, part two focuses on how to evaluate the other fees that clients may still be on the hook for.

Small Stack

For individuals with less than $50,000 combined in their investment accounts, the access to better commission pricing is most certainly welcomed. That said, there are still minimum account balance thresholds (between $10,000 and $20,000 depending on the brokerage) that can result in fees being applied against an account.

Fortunately, all of the online brokerages promoting sub-$10 standard commissions offer some type of option to have these additional fees waived. The current options fall into the following three categories:

Executing a certain number of trades per month, per quarter or per year
Contributing a certain amount per month to a pre-authorized investment plan
Holding additional accounts with the same discount brokerage/parent bank

In deciding on whether doing something to save on a fee is a sound strategy, it is important to first understand the cost of ‘doing nothing’.

Maintenance Costs

In comparing the current sub-$10 commission fee offers, the administrative fees (also called custody fees, maintenance fees or account minimum fees) that are charged by the four bank-owned brokerages are about the same when compared on an annual basis. Across the board, the annual fee works out to $100 per year although how this is calculated varies from brokerage to brokerage.

Three online brokerages (BMO InvestorLine, RBC Direct Investing and TD Direct Investing) assess this fee ($25) on a quarterly basis. National Bank Direct Brokerage, however, evaluates trading activity on an annual basis and charges $100 per year for those that don’t meet the activity/balance minimums by a specified cut-off date each year.

Strategy 1: Trade to Save

Each bank-owned discount brokerage currently offering sub-$10 trades allows clients to trade a certain number of times (e.g. quarterly, semi-annually, or annually) to avoid the maintenance fee.

While each offer may vary in the time frame over which they require trading, annualizing the cost of trading in order to qualify for fee exemption allows for comparison between plans and also presents an interesting result.

As shown in the chart below, at three out of the four brokerages (BMO InvestorLine, TD Direct Investing and National Bank Direct Brokerage), it is actually cheaper to trade the minimum activity than it is to pay the maintenance fee. At RBC Direct Investing, however, trading to avoid the maintenance fee is actually more expensive than paying the maintenance fee because clients have to trade at least 3 times per quarter to qualify for an exemption.

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Posted on February 21, 2014 by user — Leave a comment

Discount Brokerage Weekly Roundup – February 21, 2014

This past week in the Canadian discount brokerage space seemed about as quiet as the US Women’s Olympic hockey team dressing room after that most spectacular win by Team Canada. The silence on the brokerage front, however, is likely indicative of the planning and ‘strategizing’ by marketing and product teams as the battle for brokerage supremacy heats up. In fact, there are whispers around the discount brokerage industry are that there will be additional deals and price drops in the very near future. For the present though, this roundup will take a look at the next brokerage to join the sub-$10 per trade club , the results of an interesting survey about RRSPs as well as a selection of interesting conversations from across the Canadian investor forums.

If a Commission Drops in the Forest…

This past week National Bank Direct Brokerage became the fourth bank-owned brokerage to drop its standard commission fee to under $10. Interestingly the response on either forums or social media didn’t generate much interest. On our end, however, we did ensure that NBDB’s pricing drop did not go unnoticed. Today we launched part 1 of the two part series looking at all of the bank-owned online brokerages’ recent commission lowering moves, including National Bank’s.

Stash First, Save Later

In addition to their commission announcement, National Bank Direct Brokerage also announced the results of a survey that looked at opinions of Quebec internet users 18 and older regarding RRSP contributions. The findings of the study were interesting in terms of the amounts that individuals disclosed they thought would need as a minimum in order to contribute to their RRSPs. According to the survey the average contribution amount turned out to be $2750 suggesting that individuals may have a preference for contributing lump-sum amounts versus making smaller, regular contributions.

Coincidentally, with the latest commission price drops, at least two bank-owned brokerages (TD Direct Investing and RBC Direct Investing) have made pre-authorized contributions to an account or having an RRSP account part of the criteria that can help those with modest or small portfolio balances not incur quarterly maintenance/account fees.

Around the Forums

As we edge closer to the RRSP contribution deadline for 2013, the conversations around the forums are definitely starting to reflect both tax and RRSP type of questions. Of course, some folks are already anticipating what to do with their income tax refunds by getting prepared to invest and so online trading account questions are also popping up. This week there’s a couple of interesting posts that reflect some of the nitty gritty that DIY investors typically encounter when investing online.

For Whom the Border Tolls

The Olympic spirit may be all about bringing different countries together, but investing in stocks from different countries can cause all kinds of ‘quirky’ issues. The following post from Canadian Money Forum details the woes of holding American Depository Receipts (ADRs) (i.e. shares in foreign company) and the coordination of dividends that come from them.

A Taxing Problem

In the following post, a forum user has to figure out what to do with all the money they’ve made in a margin account. Oh, it sounds like a tough life. For investors, however, when things do go the right way there are important tax considerations that fellow forum members provide some perspective on. Of course, nothing beats the advice of a qualified accounting professional in these cases.

That wraps things up for this week. The Olympics are coming to an end next week and it looks like Canada’s done a smashing job. Congratulations to all of the Canadian athletes and good luck to the men’s hockey team as they face-off against the Swedes. Also, February is officially coming to an end next week so be sure to check the deals and promos section to see which deals are also going to wrap up. Have a great weekend and #GoCanadaGo!