Scotia iTRADE – Page 13

Posted on June 1, 2018 by user — Leave a comment

Discount Brokerage Deals & Promotions – June 2018

It’s hard to believe but June is already here, which means summer is right around the corner. While temperatures outside are heating up, the discount brokerage deals and promotions section is gradually warming back up.

Heading into the new month there was a good mix of extensions as well as a new offer from National Bank Direct Brokerage in May that is sure to add some sizzle to the summer shopping season.

Starting first with extensions, two big deals players, BMO InvestorLine and Desjardins Online Brokerage, gave the go ahead for their existing offers to continue (more details below). This is a healthy sign as both of these firms are long time proponents of deals and promotions.

The big news, however, is the offer that crossed our radar from National Bank Direct Brokerage. This offer has a relatively low threshold to qualify ($5,000) and offers 25 commission-free trades which are good for up to one year. If it sounds familiar, it’s because another bank-owned online brokerage, RBC Direct Investing, also has an offer that is currently running to mid-June that offers 20 commission-free trades for a deposit of $5,000. So, in this case, the commission-free trade promotion bid has been raised by NBDB.

Another interesting feature of the offer from National Bank Direct Brokerage is that once the trades are used up (within the first year only), the standard commission charge per trade is only $6.95 which means that there is a trading discount as well as free trades.

With one offer set to expire mid-month (from RBC Direct Investing), it will be interesting to see if it too will get an extension or if there will be another provider currently on the sidelines jump in to the deals and promotions mix to be ready for the building interest in the marijuana legalization ‘buzz’ that is building.

We’ll keep a look out for new offers and if there are any that might be of interest to DIY investors, feel free to let us know in the comments below.

Expired Deals

No expired deals to report at the outset of the month.

Extended Deals

There were two offers that were scheduled to expire at the end of May that have been renewed:

First, Desjardins Online Brokerage has extended their commission credit offer through to the end of September.

Also, BMO InvestorLine extended their combined commission-free trade and cash back offer through to the end of June.

New Deals

While there were no new deals announced on June 1^st, there was a new deal from National Bank Direct Brokerage that did cross the wire late in May. While this deal may technically have been in rotation at the end of April, it is not advertised in the special offers section of the NBDB website; we discovered this add running in rotation on social media and verified that it is active (at the time of publication).

Discount Brokerage Deals

Cash Back/Free Trade/Product Offer Promotions
Referral Promotions
Transfer Fee Promotions
Contests & Other Offers
Digital Advice + Roboadvisor Promotions

Cash Back/Free Trade/Product Offer Promotions

Company	Brief Description	Minimum Deposit Amount	Commission/Cash Offer/Promotion Type	Time Limit to Use Commission/Cash Offer	Details Link	Deadline
	A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package.	n/a	Discounted Commission Rates	none	For more details click here	none
	Open 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, 2018
	Open a new account at National Bank Direct Brokerage with at least 5,000 and you may be eligible to receive up to 25 commission-free trades, good for up to one year. There is also a promotional discounted commission-pricing available within the first year to individuals who use up their 25 trades; trading commissions for the first year are $6.95. Use promo code SPRING 2018 when signing up to be eligible for this offer. This offer is also available to existing clients. Be sure to read terms and conditions for full details.	$5,000	25 commission-free trades + $6.95 commission per trade pricing	365 days	National Bank Spring Offer	July 6, 2018
	Open and fund a new account at RBC Direct Investing with at least $5,000 in net new assets and you may be eligible to receive up to 20 commission-free equity trades which are good for up to one year. Be sure to read terms and conditions for full details.	$5,000	20 commission-free trades	365 days	RBC Direct Investing Commission-free Trades Promotion	June 14, 2018
	Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info.	$10,000	1% of assets transferred in the form of commission-credits (max credits: $1,000)	6 months	Disnat 1% Commission Credit Promo	September 30, 2018
	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, 2018
	Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, with at least A) $50,000; B) $100,000 or C) $300,000+ in net new assets and you may be eligible to receive up to 20 commission-free equity trades plus A) $50 cash back; B) $150 cash back or C) $500 cash back. Commission-free trades are good for up to two months. In addition, eligible individuals can receive an extra $50 as part of the refer a friend program. Use promo code SPRING when signing up. Be sure to read the terms and conditions for more details on the offer.	A) $50,000 B) $100,000 C) $300,000	20 commission-free equity trades AND A) $50; B) $150 C) $500.	Commission-free equity trades are good for up to two months. Cash back will be deposited the week of January 21, 2019.	BMO InvestorLine Spring 2018 Campaign	June 30, 2018
Expired Offers
Last Updated: June 01, 2018 18:55 PT

Referral Promotions

Company	Brief Description	Minimum Deposit Amount	Incentive Structure	Time Limit to Use Commission/Cash Offer Deposit	Details Link	Deadline
	Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.	A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+	$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back	Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)	Refer a friend terms and conditions Code Number: 476104302388759	none
	If you 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 BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 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.	$50,000	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	October 31, 2018
Expired Offers
Last Updated: June 1, 2018 18:55 PT

Transfer Fee Promotions

Company	Brief Description	Maximum Transfer Fee Coverage Amount	Minimum Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
	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 $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees.	$135	$15,000	Transfer Fee Rebate Details	none
	Transfer $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 $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion.	$150	$25,000	Credential Direct Transfer Fee Rebate	none
	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 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details.	$150	$25,000	Contact client service for more information (1-800-465-5463).	none
	Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.	$135	$25,000	Confirmed with reps. Contact client service for more information (1-800-567-3343).	none
	Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info.	$150	$50,000	Disnat 1% Commission Credit Promo	September 30, 2018
	Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, by transferring in at least $200,000+ in net new assets and you may be eligible to have transfer fees covered up to $200. Use promo code SPRING when signing up. Be sure to read the terms and conditions for more details on the offer.	$200	$200,000	BMO InvestorLine Spring 2018 Campaign	May 31, 2018
Expired Offers
Last Updated: June 1, 18:55 PT

Other Promotions

Company	Brief Description	Minimum Deposit Amount Required	Details Link	Deadline
	Desjardins Online Brokerage, in conjunction with MoneyTalks, is offering 3 months of the “Inside Edge” investor information service to Desjardins Online Brokerage clients. Use promo code DESJ2016 during checkout to qualify. Be sure to read full terms and conditions for more information.	n/a	MoneyTalks Inside Edge Discount	none
	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
	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: June 1, 2018 18:55 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor	Offer Type	Offer Description	Min. Deposit	Reward / Promotion	Promo Code	Expiry Date	Link
	Discounted Management	Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link.	$1000	1st month no management fees	KDKFNBBC	None	Questrade Portfolio IQ Promo Offer
	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 1, 2018	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: June 1, 2018 18:55 PT

Posted on May 25, 2018 by user — Leave a comment

Discount Brokerage Weekly Roundup – May 25, 2018

Though this was a short week because of the holidays, there was still a healthy dose of news to digest and trade around. For Canadian online brokerages, the race is on not only to report some of the big news but to put a creative spin on it.

In this week’s roundup we go to both extremes with in-depth analysis of the latest set of online brokerage rankings followed by a small but important revelation of one online brokerages upcoming features on Twitter. As usual we’ll close by taking a look at what DIY investors were chatting about on social media and in forums.

Moneysense’s 2018 online brokerage rankings go live

Earlier this week, MoneySense magazine published the 2018 edition of its Canadian online brokerage rankings. As with past years, Surviscor provided data for the analysis and presented a category-driven approach to presenting which online brokerages were “the best” in each feature measured.

The author of this year’s review was the well-known Canadian personal finance writer, Jonathan Chevreau, who added considerable depth to the commentary and analysis – more so than in previous editions of this article.

At SparxTrading.com, we’re always keen to review the comparisons of online brokerages, so we thought we’d take a deeper look at this year’s MoneySense rankings to get an idea of how DIY investors might be impacted by the ratings and to determine what trends or insights might emerge from the ratings themselves.

Before diving into the results in detail, we thought it would be important to review what was being measured in the MoneySense rankings and how this year’s rankings differ from last year’s.

Historically we’ve observed that there is considerable variation when it comes to Canadian discount brokerage rankings. There can be variation between different ratings of the same discount brokerages within the same year as well as variation between years for the same rankings. For example, the Globe and Mail’s online broker rankings use a different approach than does J.D. Power or Surviscor when evaluating Canada’s online brokerages for cost, service or accessibility.

For the 2018 MoneySense online brokerage rankings, the underlying data comes from Surviscor’s analysis of the online brokerage space, with specific parameters selected for the MoneySense report. The snapshot that the data is based upon comes from 2017, specifically from the 2017 online brokerage rankings conducted by Surviscor. As such, the ‘new’ information in the MoneySense rankings is really in the commentary as well as in some of the detailed category breakdown. The “best overall online brokerage” ranking, however, mirrors the findings published in December 2017.

2017 rankings vs 2018 rankings

To help add more context to this year’s results, we’ve summarized the MoneySense rankings data from last year and this year along with including the scores firms received for the 2018 edition.

The categories that were reported on this year were mostly similar to last year, although there were some notable differences.

This year the following categories were reported on:

Best overall online brokerage
Best discount brokerages for ETFs
Best online brokerages for mobile and market data
Best online brokerages for low fees
Best online brokerages for design and user experience

Interestingly, a category from last year, the ‘best online brokerage for reporting and record keeping’ was not included in this year’s review.

New for this year, however, was the mobile accessibility category which was intended to reflect the importance of mobile experiences to investors. Data for this category came from Surviscor’s 2017 mobile online brokerage review. There was also a name change for the ‘getting started’ category used in 2017 to ‘initial impression’ for 2018.

Category	2017	2018
Overview + Winner	T: Qtrade Investor H: Questrade Bank-owned: T: BMO InvestorLine + Scotia iTRADE	Qtrade Investor – 22 Questrade – 21 Scotia iTRADE – 14 BMO InvestorLine – 14
ETFs	T: Questrade + Virtual Brokers H: National Bank Direct Brokerage	National Bank Direct Brokerage – 17 Qtrade Investor – 16 BMO InvestorLine – 13
Mobility + Data	Data: T: TD Direct Investing H: Qtrade Investor	Mobile Accessibility: BMO InvestorLine – 26 Questrade – 14 Qtrade Investor – 10 Data: TD Direct Investing – 20 Qtrade Investor – 17 RBC Direct Investing – 9
Fees + Services	Fees: T: CIBC Investor’s Edge + Questrade H: Qtrade Investor + Virtual Brokers Service: T: Qtrade Investor H: Desjardins Online Brokerage	Fees: HSBC InvestDirect – 10 Questrade – 10 CIBC Investor’s Edge – 7 Service Interaction: Qtrade Investor – 8 RBC Direct Investing – 7 Questrade – 6
Initial Impression & UX (Getting Started – 2017)	Getting Started: T: Questrade H: TD Direct Investing User Experience: T: Questrade H: Qtrade Investor	Initial Impression: Questrade – 13 Scotia iTRADE – 9 TD Direct Investing – 9 User Experience (UX): Qtrade Investor – 40 Scotia iTRADE – 31 BMO InvestorLine – 30
Reporting & Record Keeping	T: BMO InvestorLine H: Qtrade Investor
Legend: T = Top Pick; H = Honourable Mention

As shown in the summary table, one important change between last year’s report and the 2018 results is the number of discount brokerages being reported in each category.

In the 2017 online brokerage rankings, MoneySense reported the “top pick” and “honourable mention” in each category. This year, however, there are more online brokerages being reported in each category (typically three or four vs two) than last report. As a result, this presents “more data” for DIY investors to sift through when comparing online brokerages. In the best overall online brokerage category, last year this section was split into non-bank-owned online brokerages and bank-owned online brokerages however this year there doesn’t appear to be an explicit distinction being made. Interestingly, the same four institutions from 2017 were in the list of top firms overall in 2018.

Another important change between last year and this year is that there are now also numerical scores being reported. Specifically, the scores (points) earned by online brokerages in each category were reported.

While it was useful on a relative basis to compare brokerages within the same category (e.g. Qtrade Investor received 22 points while Scotia iTRADE and BMO InvestorLine each received 14) it was difficult to tell in an absolute sense how well a brokerage could possibly do in a category (i.e. what was the maximum number of points Qtrade Investor or BMO InvestorLine could’ve earned?).

In addition, the point system for each category was unfortunately not explained so there wasn’t any real context to what receiving 10 points vs 15 points meant. We can assume more points is better, but based on the scoring of best overall, does Qtrade Investor’s score of 22 mean that they are 1.6x better than either BMO InvestorLine or Scotia iTRADE?

Overall, however, the 2018 version of MoneySense’s online brokerage assessment offers readers a detailed look at the state of the online brokerage space with 12 online brokerages getting covered and a reasonable variety of factors that matter to investors – chief among them being pricing.

What’s interesting about the MoneySense online brokerage rankings?

While it likely wasn’t a surprise that Qtrade Investor took home top prize in the 2018 MoneySense rankings, the optics of yet another influential award being received serves to strengthen Qtrade’s perception in the marketplace as one of the premium online brokerages in Canada.

Typically strong performers on the rankings circuit, Qtrade Investor has had an especially strong year for recognition with top spot finishes in the Globe and Mail, Surviscor and now MoneySense as well as a close second place finish with JD Power’s rankings.

As mentioned above, there is considerable variation between rankings and what they’re measuring however Qtrade Investor has managed to score well on all of them, perhaps a strong sign they’re doing more than a few things right. On the MoneySense rankings, there were three categories in which Qtrade Investor placed first: best online brokerage user experience, best online brokerage service interaction and best overall.

It bears mentioning again, that how these categories are defined is very important as are the indicators that are used to measure performance within the categories. For example, what constitutes a strong service experience or effective user experience is likely more subjective than which broker has the lowest trading commission prices or fee structure. Yet, both components go into determining the final score.

So, with that caveat in mind, it was also interesting to note that in certain categories it was easier to see which online brokerages were further ahead than others.

The differences in the best overall online brokerage or brokerage with best mobile accessibility, for example, were very apparent. For example, the category of mobile accessibility, which was new for 2018, shows that BMO InvestorLine is very far ahead of its category competitors, Qtrade Investor and Questrade. Similarly, in terms of user experience (UX) Qtrade Investor scored much higher than either BMO InvestorLine or Scotia iTRADE.

In other categories, the race between brokerages was much tighter. Fees and services, for example, each had relatively close scores that made distinguishing first from third place difficult. ETFs was another category that posed a challenge for brokerages to stand out in.

Considering how important costs and fees are to DIY investor clients, the latest rankings data seems to suggest that when it comes to the lowest cost online brokerages, the differences in pricing are small, and as such, other criteria will be what tilts a decision one way or another when choosing a brokerage.

With prices being where they are for commissions, it is probably worth mentioning that it will be challenging to differentiate on price alone. That said, savvy online brokerages can use this to their advantage. One of the important factors in trading costs for DIY investors is ECN fees. So, highlighting “flat” fee commission pricing versus trades that charge ECN fees will be key to standing out.

For both DIY investors and online brokerages, the challenge in choosing an online brokerage comes down to what else beyond low commission pricing that online brokerages can offer.

Based on the results from the 2018 MoneySense online brokerage rankings, these opportunities might present themselves in the user/digital experience. As we’ve mentioned before, technology is the new benchmark for service – it enables the provision of a consistent experience at an unprecedented scale – something the ‘human’ touch cannot do.

The data from these rankings show that firms like BMO InvestorLine and Qtrade Investor are, at least in the Surviscor analysis, doing much better than their peers in the digital experience. Whether it’s improved navigation or ease of access, if using the product feels simpler, the process of managing your own investments doesn’t feel frustrating which is what DIY investors really value.

Finally, a third interesting observation about the online brokerage landscape in Canada is that aside from Qtrade Investor, it appears that there is a lot of diversity in who has been designated as a top performing firm. A surprise move onto the list by HSBC InvestDirect (best online brokerage for fees) as well as top podium finishes for Questrade, BMO InvestorLine and TD Direct Investing. Of all the category winners, Questrade was the first organization to make a splash on social media. We have yet to see other category winners, including best overall category winner, Qtrade Investor, push something out on these results on their LinkedIn pages (as of the time of publication) or social media. No doubt things are busy in Qtrade’s tent with the merger taking place – which might be a tactical time for other Canadian online brokerages to try and gain mind share.

There were certainly a number of other interesting observations about the online brokerage industry in this year’s online brokerage ranking, however an important takeaway for both online brokerages and DIY investors is that the Canadian online brokerage space is crowded and the market is small. Even so, online brokerages are now locked in a race in which the nimblest providers will survive.

Chatter: Scotia iTRADE possibly launching USD registered accounts this summer

It’s summer blockbuster season. For online brokerages it will be an interesting time with independent online brokerages Qtrade and Credential Direct merging and with plans being made ahead of a typically big fall season.

This week we spotted two mentions of the possibility that Scotia iTRADE is getting USD registered accounts this summer.

The first was a mention in MoneySense magazine that the launch may be coming in the summer, while on Twitter, a representative from Scotia iTRADE mentioned to an individual that USD registered accounts are close to launch.

Discount Brokerage Tweets of the Week

Discount
Brokerage Tweets – Curated tweets by SparxTrading

From the Forums

Trust Issues

Creating efficient tax exposure is just one of several important financial planning strategies DIY investors have to consider. In this post from reddit’s Personal Finance Canada thread, it is interesting to read how one DIY investor’s journey with trying to set up an informal trust at an online brokerage is working out.

Exiting Times

When it comes to standard commission rates, Scotia iTRADE stands out among Canadian online brokerages as the highest. In this post, also from reddit, one client is looking to make an exit and gets a little math to help plan an escape.

Into the Close

That does it for another week. Monday is Memorial Day in the US so there is likely to be lighter trading action in Canada. Although, with the first of a wave of US-based cannabis companies listing on the CSE, lighters won’t be the only things being traded here in Canada. All the best to our US neighbours for a safe & happy long weekend!

Posted on May 18, 2018 by user — Leave a comment

Discount Brokerage Weekly Roundup – May 18, 2018

Being online can sometimes be an occupational hazard. Case in point: Laurel or Yanny. Despite having captured the imagination of the internet and having squandered so many people’s valuable time there’s a lesson in here for online brokerages, which is to get attention online, you have to be interesting.

In this edition of the roundup we take a look at some interesting developments that crossed our radar this week. The first was a fleeting promotion from one bank-owned brokerage that tried to snag some new clients with the lure of snacks. From there, we look at how one US-based online brokerage is attracting massive amounts of capital and DIY investor love and how it will undoubtedly become a challenger to existing brokerages. As per our usual fare, we’ve got a great selection of tweets and forum posts for DIY investors to check out.

Scotia iTRADE wants to be SCENE

In what is becoming a bit of an annual tradition, Scotia iTRADE was spotted on Twitter offering up an interesting in-person promotion at their investor centre in downtown Toronto.

Specifically, a tweet caught our attention that was offering up 2,000 SCENE points for anyone who opened a new account with Scotia iTRADE with a minimum of $5,000.

For those keeping score at home, that’s the equivalent of a VIP admission for one, or if you’re into sharing, two general adult admissions.

The ultra-limited time offer from Scotia iTRADE could be a trial run at a broader promotion that enables them to leverage their partnership with the SCENE movie points program. In addition, it may also be an interesting response to the recent move by RBC Direct Investing who launched a commission-free trade campaign and also set the minimum requirement to qualify for a promotion at $5,000.

It will be interesting to see whether the ‘free movies’ are enough of an incentive to tip an individual in favour of opening an account with Scotia iTRADE versus free trades or cash back with one of their competitors. Since this was basically an ‘in person’ offer and relied on individuals coming into the Scotia iTRADE in downtown Toronto, it may be a very limited sample with which to test on, but nevertheless, early data is still data.

As delicious as the allure of free popcorn is, it may not be enough to entice people to put $5,000 into an investment account with Scotia iTRADE – especially considering that the standard commission rates of $24.99 per trade (and up) as well as account maintenance fees of about $25 per quarter for balances under $10K mean that those are some very expensive kernels for low balance, passive investors.

Still there are insights to this offer that are worthy of being mentioned.

First, it looks like RBC Direct Investing has stirred the pot by lowering the threshold for qualifying for a promotional offer at a major bank-owned online brokerage. There are currently no offers from RBC DI’s peers that would rival the value of their commission-free trade deal for the amount that has to be deposited in order to qualify. Scotia iTRADE’s latest move is a bullish sign that other online brokerages are watching and are likely to step forward with something compelling while the RBC DI offer is live.

A second important takeaway is that, in addition to free trades or cash back, there are also rewards points that bank-owned brokerages can rely on as part of their tactical mix.

The fact they chose movie points over commission-free trades or cash enables Scotia iTRADE to keep their own costs low while providing something of potential value to prospective clients. Ultimately, however, the market will decide if the promotion is valuable enough.

Another observation we found interesting is that, for a national brand, restricting access to this deal means there are lots of folks across the country that are left wondering whether they can access the same offer. At a time and in a market that is this competitive, leaving potential clients on the sidelines will definitely cause them to wonder about the price of admission.

Robinhood makes investors merry

Is it possible to let investors trade for free and still make money? Apparently, yes.

Last week in their company blog post, online brokerage Robinhood secured $363 million in Series D funding led by DST Global. The deal, which valued Robinhood Financial at USD $5.6 billion, means that it is now starting to encroach on the traditional players in the US online brokerage market. Though it is still far behind the market cap of Interactive Brokers (~$32B), TD Ameritrade (~$34B), and Schwab (~$80B), it is materially competitive with E*Trade ($17B) and with 4 million users, has actually surpassed E*Trade (3.7 million accounts) on that metric.

Some more interesting nuggets in the press release announcing the capital raise is that a number of new features have been released in a short span of time including commission-free options trading, commission-free cryptocurrency trading in CA, MA, MO, MT, CO, MS, WI, NM, FL, MI and, as of yesterday, to PA. In addition, they have also rolled out a web-based version of their highly popular mobile app all the while maintaining a solid excitement level for their product.

The new capital infusion will no doubt help to accelerate Robinhood’s ability to widen their user base in the US and even around the world. They are certainly not shy about wanting to challenge Coinbase as the leading cryptocurrency trading platform in the US also and are targeting being a significant competitor (if not leader) by the end of the year.

A quick scan of their recent announcements online also shows that the snowball effect is taking hold, with talent.

In another recent post about Robinhood an influential engineer, Lee Byron, joined Robinhood after a 10-year stint with Facebook.

What jumped out about the post was the appeal that the brand, mission and platform had with Byron.

Specifically, he states:

“They’re driven by a mission I believe in: to democratize access to America’s financial system. Despite having a popular service and established mobile apps, their web app is a newer effort and has only just scratched the surface of its full potential. There is so much of the mission the current product doesn’t reach.”

He goes on to state:

“One of the reasons Robinhood is unique is that it brings a much-needed focus on user experience and high-quality consumer products to the financial industry.”

And, based on the user comments and reactions to this article, he’s not the only one who seems to be putting a premium on the design appeal. The following comment by a reader (Ernesto Rodriduez) is particularly telling:

I’m an avid user of Robinhood these days, but prior to it I knew very little about investing and the stock market in general. Having such a beautiful, intuitive and well thought-out UX was and still is the main reason why I felt so attracted to it initially and inspired to want to learn more about trading in general.

Why is this important? For starters, the level of passion and enthusiasm for UX-driven trading/investing experiences in the Canadian online brokerage space doesn’t rival what Robinhood has managed to accomplish in the US. Improvements in online brokerages in Canada have been iterative not necessarily transformational.

Another, much more important, reason why this is a telling comment is because user experience/ease of use is one very important driver of whether or not someone feels confident enough to try out (and keep) investing on their own. Simply put, whether they view investing online as “too hard” “too complicated” or “too inconvenient” has a lot to do with how the experience is perceived.

With Robinhood now venturing into the web application space, they will be competing against more established players, however if they can maintain the same enthusiasm for their web app that they have for their mobile one, their next valuation can and will be cause for concern for their competitors.

As for Canadian online brokerages, the evidence is pretty clear. They can either wait for the no-cost commission train to arrive at full speed or they can get ahead of it – especially with a highly-prized market of younger professionals looking for a better experience – by investing in better UX and more compelling pricing.

Discount Brokerage Tweets of the Week

Discount
Brokerage Tweets – Curated tweets by SparxTrading

From the Forums

Daytrader Taxes

Although it’s not nearly as popular as it once was, there are still a few brave souls who want to take a stab at beating the market – and other daytraders. But, being a daytrader also means taking care of more complicated matters, especially taxes. In this post from RedFlagDeals.com’s Investing forum, one user was looking for a little input on how others have approached getting started as a daytrader.

Planning Ahead

While the bulk of what we focus on is directly related to online brokerages, for DIY investors it’s important to also think about the big picture when it comes to personal financial planning. While the internet is full of stories of individual experiences, this particular story (from reddit) is one that will likely be more common as the general population ages.

Into the Close

That does it for this week. While it was a bit of a slow week on the trading front, there’s no shortage of entertainment on screens of all shapes and sizes. Whether you’re watching a royal wedding or just looking to kick back and enjoy some long overdue good weather this Victoria Day weekend, on behalf of everyone here at Sparx have a safe and enjoyable long weekend!

Posted on May 11, 2018 by user — Leave a comment

Discount Brokerage Weekly Roundup – May 11, 2018

Eventually spring was bound to show up. And, like the green shoots, flowers and sunshine, it’s a time for change and opportunity. Fortuitously, Canadian discount brokerages are also taking their cues from spring and rolling out some interesting new items for the season.

In this edition of the roundup we take a look at a big bank-owned online brokerage that decided it was time to jump back into the deals pool with a new spring offer. Next, we review a posh new service line for high net worth investors unveiled by one online brokerage which could signal a new front in the competition for DIY investor assets. From there, we get a sneak peek at the roll out of new features from a popular online brokerage. And, to round things out, we’ll review the latest tweets from DIY investors as well as some interesting conversations in the forums.

RBC Direct Investing Launches New Promotion

Even though there was a pullback in online brokerage deals action to start this month, it didn’t take too long for that to change – and in a big way. After a prolonged absence from the spotlight of the deals and promotion section, RBC Direct Investing made a splash by launching a new commission-free trade offer.

It isn’t just the timing of the offer that is bound to get the attention of DIY investors looking for an online investing account.

In addition to launching a new promotion at a time when many online brokerages have decided to take a breather from pitching deals, RBC’s new offer has a very low deposit threshold to qualify ($5,000), has a high number of commission-free trades (20) and the commission-free trades are good for one year from when the account opened. Further, the rebates for the commission charges incurred for these trades takes place within three days and not several months into the future.

All told, for any DIY investor curious about trying out RBC Direct Investing, the timing and incentive to do so are compelling.

Given the size and popularity of RBC Direct Investing, it will be very interesting to see how long their competitors decide to wait on the sidelines. The latest RBC Direct Investing promotion is scheduled to expire in June however there’s no guarantee that the offer won’t be extended – especially if it is popular and can bring in new clients or assets.

Based on our internal data, we note that the big bank-owned online brokerages (especially those with comparable fees) will likely want (or need) to consider how to respond in kind.

For the moment, however, RBC Direct Investing has packaged an offer that puts them atop the deals board for compelling value. And, if there’s one thing investors are always on the hunt for, it’s a good deal. Fortunately, now they know where to find one.

Desjardins Online Brokerage Rolls Out New Prestige Service Perks

At the upper end of the account size spectrum, Desjardins Online Brokerage unveiled new Prestige Service features to the front end of their website.

This new premium offering is geared towards DIY investors who have portfolios starting at $250,000 and higher, and comes in three tiers: Bronze (minimum $250,000), Silver (minimum $500,000) and Gold (minimum $1M).

The new tier, Bronze, offers some of the key features of the prestige experience, such as lower priced commissions on stock trades, transfer fee refunds and no fees for registered or inactive accounts.

Like other ‘premium’ plans at other online brokerages, such as BMO InvestorLine, RBC Direct Investing, Scotia iTRADE, or TD Direct investing, there are perks on pricing or rates.

What is particularly interesting for Desjardins clients of the Prestige program, however, are the perks to receive annual statements of capital gains and losses as well as the inclusion of exclusive client appreciation events.

With the race to gather more assets heating up, competition will inevitably turn to offering better and more compelling features to higher net worth clients.

Stay tuned as the latest offering by Desjardins will undoubtedly raise eyebrows with those trying to put together a premium experience for high net worth DIY investors.

TD Direct Investing Previews New Advanced Dashboard Features

Earlier this week, we spotted a tweet on the TD Direct Investing Twitter feed pointing to a webinar previewing new features that will be rolling out to the Advanced Dashboard trading platform.

The webinar offered a detailed look at the new features and walked through where the changes in the platform will occur (complete with sound effects!). As for when the new updates will roll out, the official line is the next few weeks.

One of the big (and cool) enhancements is the ability to use a ‘traditional’ order entry ticket to place trade orders or use an in-line editing view, which essentially looks and feels like entering an order from a spreadsheet table. So, rather than have to walk through orders one trade ticket at a time, users can have a full-view of multiple securities and quickly configure trades from there.

Other feature enhancements were geared towards decluttering or improving user experience (such as colour coding buy/sell buttons) or improving trading execution tools (such as order settings). Of course, one of the great (but possibly daunting) features is how customizable the workspace is.

Fortunately, very active investors are generally pretty motivated and self-directed when it comes to learning. As such, the walk-through webinar is helpful to orient users to the new features and how they can be used to get the most out of Advanced Dashboard. Especially useful was the Q&A section with webinar host Ryan Massad (of TD Direct Investing) which started at around the 32-minute mark.

Another interesting angle that was mentioned several times during the presentation, was that client feedback was an important driver for the feature enhancements. As part of an interview we did with TD Direct Investing last year, it was neat to learn how user feedback finds its way into the feature enhancement conversations and workflows. This new rollout appears to have been the result of that process and for TD Direct Investing clients, there are numerous paths to submit feedback.

Discount Brokerage Tweets of the Week

Discount
Brokerage Tweets – Curated tweets by SparxTrading

From the Forums

Hunting for Deals

Are online investors hungry for a good deal when opening an online trading account? This week the answer was definitely. In this post, from RedFlagDeals.com, one user was looking for an online brokerage offering the best deal for opening an account and, on reddit in this post, a user was specifically interested in the best offer from Questrade. Spoiler alert, users were pointed to SparxTrading.com’s deals section for the answers to both.

Not So Simply the Best

The ongoing desire to find out which online brokerage in Canada is the best is starting to change. After extensively covering and monitoring the conversation on which discount brokerage is best, it was interesting to read this thread in reddit’s personal finance Canada subreddit in which the notion of a “best” brokerage didn’t matter as much as the “best brokerage for your needs.”

Into the Close

Stick a fork in this week, because it’s done. Yes, another cautiously optimistic week for investors is in the books but by now everyone is primed to be a little bit nervous when things seem ‘calm’. So, enjoy it while it lasts and for everyone fortunate enough to get some sunshine for Mother’s Day, be sure to share that sunshine with the moms in your life!

Posted on May 4, 2018 by user — Leave a comment

Discount Brokerage Weekly Roundup – May 4, 2018

The old trading adage of sell in May and go away clearly did not apply to this week’s market activity. It’s still early enough in the month that anything can happen, however. With the announcement of the end of decades of hostilities between North and South Korea, it’s as good as any segue into the action taking place in the Canadian discount brokerage space.

In this edition of the roundup we check in on the latest updates from an important merger taking place among two online brokerages. Next, we’ll review the latest deals and promotions activity for the beginning of a new month. From there, we’ll take a look at what DIY investors were chatting about on Twitter and in the investor forums.

Credential Direct merger shows signs of progress

After the merger between Credential Direct, Qtrade Investor and NEI Investments to form Aviso Wealth was announced late last year, it wasn’t exactly clear how and when things would unfold. Earlier in April, however, we learned that the merger between the three firms was officially finalized and, as of this week, the Credential Direct website started to direct new and existing clients to the Qtrade Investor product.

As we mentioned in last week’s roundup, the Canadian online brokerage landscape has seen some major moves over the past several months. With acquisitions of Virtual Brokers and Jitneytrade by much larger wealth management firms, as well as this latest merger between Qtrade Investor and Credential Direct, the rest of the year for the Canadian discount brokerage landscape should shape up to be quite interesting. After years of recognition that there were simply too many online brokerages in Canada, the field appears to be narrowing. And, it is likely that there is still further consolidation to come as online brokerages wrestle with staying competitive and profitable at the same time.

While consolidation and removing of an online brokerage from the list of providers might reduce competition, the reality is that Credential Direct was primarily influential in Western Canada and in terms of market share, they were certainly on the small end. As a result, it is unlikely to tip the scales with either investors or among other industry competitors.

According to the Credential Direct website, there will be a transition period over which existing clients will get migrated over to Qtrade’s platform. The target appears to be this coming fall for that to be completed.

That said, it will be interesting to see how the rest of the Canadian online brokerage field responds to what will be a larger Qtrade Investor competitor. Aviso, the parent to Qtrade, will reports having a combined $55 billion in assets under management and over 500,000 clients collectively across the country, so other Canadian online brokerages will have a considerably larger organization to contend with.

It will also be interesting to see where, from a marketing perspective, the Qtrade Investor brand is going to push and what new resources it may have to push with. For example, could pricing or platform improvements be justified given the larger scale? With Credential Direct previously being active on social media, could this be the tipping point to enable Qtrade Investor to wade into the social waters?

For DIY investors, fewer choices may, in this case, provide stronger choices. Without having to allocate resources to competing regionally against Credential Direct, could Qtrade Investor now allocate those resources to better servicing their existing clients? Certainly, for Credential Direct clientele, there will be access to better pricing (in most cases), service and trading experiences.

While Qtrade is likely to become even more of a formidable opponent to the bank-owned online brokerage space, the lesson this merger and additional acquisitions have shown to be true, is that the playbook to surviving the online brokerage space in Canada requires scale. And, the race for new clients and their assets, is almost certainly going to become even more fierce as a result.

May-day Deals Update

The big story in this month’s deals and promotions section is the pullback in offers from Canada’s discount brokers.

After what was an abnormally busy start to 2018, things have definitely quieted down on the deals front with barely more than 20 advertised offers currently in play. Perhaps the greatest concern for DIY investors looking for a bonus to open an account is the general absence of offers in the cash back promotions section.

Currently, BMO InvestorLine is the sole Canadian discount brokerage offering a cash back promotional offer – something that is very unusual considering how competitive the online brokerage space is to acquire new clientele.

All is not lost for investors looking for a cash back promotion, however. DIY investors can also access the Questrade referral offer posted in the deals section but aside from BMO’s offer, the only other way to access a cash back offer at the moment is via referral.

Currently there are three of these offers available from BMO InvestorLine, Questrade and Scotia iTrade. At this point, for new clients looking to open an online investing account, it pays to be extra nice to friends at these brokerages.

Fortunately, there is still the cornerstone offer for coverage of transfer fees available at most brokerages. So, for those looking to try a new provider, that door is certainly open.

Don’t expect the drought to last too long though. It is unlikely that BMO InvestorLine and Questrade will be left unchallenged in the cash back space, especially considering how popular these offers tend to be with folks opening a new account.

With marijuana legalization on the horizon, and the conversation on blockchain still simmering, there are a couple of possible catalysts in play to entice online investors back into the market. Finally, bank-owned brokerages aren’t usually so chivalrous when it comes to ceding market share, so there’s a business case to be made for at least another bank owned brokerage to step back onto the field while it is not so crowded.

We’ll continue monitoring the deals landscape for new movements, but for the time being, only a small number of brokerages are in the deals spotlight, which we’re guessing is totally fine by them.

Discount Brokerage Tweets of the Week

Discount
Brokerage Tweets – Curated tweets by angeloAtSparx

From the Forums

RESP-onding to requests

The Financial Wisdom Forum deserves credit for sharing the news that TD Direct Investing now offers BC residents access to the British Columbia Training and Education Savings Grant (BCTESG) (here is the reference link to TD).

Battle of the Q’s

Questrade or Qtrade? The question is now more pertinent than ever as the narrowing field of online brokerages (that are not bank-owned) casts a spotlight on these two firms. This post from Canadian Money Forum provides some interesting perspectives on both.

Into the close

That’s it for another week. With the world no longer on the brink of war and the economy powering along, even Elon Musk found things a bit…boring. Fortunately for him (and us) there’s plenty of other (cooler) things to be looking at heading into the weekend instead of stock charts. Have a great weekend and #Maythe4thbewithyou.

Posted on May 1, 2018 by user — Leave a comment

Discount Brokerage Deals & Promotions – May 2018

*Update: May 29* There’s an old trader tip that says “buy when it snows and sell when it goes.” Now, it wasn’t too long ago that the snow actually did leave but the arrival of May “should” mean no more snow. Alas, snow wasn’t the only thing disappearing to kick off this month. Several Canadian discount brokerages decided to hang up their promotional skates (for the moment anyway) which has certainly cleared the field for those brokerages actively promoting offers, to continue to post offers to win over new clients and assets.

Discount Brokerage Deals Quick Nav

Cash Back/Free Trade/Product Offer Promotions
Referral Promotions
Transfer Fee Promotions
Contests & Other Offers
Digital Advice + Roboadvisor Promotions

Yes, the big story heading into the new month isn’t who arrived but rather who stepped back. As of the beginning of May, HSBC InvestDirect, National Bank Direct Brokerage and Virtual Brokers all let the clocks on their respective offers run out.

For DIY investors seeking out cash-back promotions, the field is slim, with either Questrade (via their referral offer) or BMO InvestorLine (whose offer also comes with free trades) providing easy to access cash back offers.

Scotia iTRADE and BMO InvestorLine also offer referral promotions with a cash-back component to them however accessing these offers requires more effort that either Questrade’s referral-based cash-back offer or BMO’s standard offer. Side note, BMO InvestorLine’s referral offer can be combined with their current commission-free trading + cash back offer.

It will be interesting to see just how long competitor online brokerages to BMO InvestorLine and Questrade are willing to sit on the sidelines while both firms dominate the deals field unchallenged (at least for now). For the moment, however, the stats are clear: for DIY investors looking for a deal are going to focusing hard on the only brokerages in the spotlight at this point.

Correction: an earlier version of the table that referenced a cash reward of $400 at Questrade for a deposit of $250,000 was incorrect. The current table has been updated with correct information.

Expired Offers

Several offers from Canadian online brokerages expired at the end of April. Virtual Brokers’ transfer fee technically expired, while National Bank Direct Brokerage’s commission-free trading promotion also expired. HSBC InvestDirect’s cash back promotion officially ended after having been extended just a little while longer.

Extended Offers

No offers were extended as of the beginning of May.

New Offers

*Update May 29 – After an interesting little blip in the deals section, National Bank Direct Brokerage is back once again with their commission-free trade offer.

The deal, which is interestingly not posted on their promotions section or in their header slider, is being advertised (and was discovered) on Facebook. In any case, there is a live link to the offer that we’ve included in the table below.

This new offer is similar previous commission-free trade deal of 25 trades which are good for one year except there is also promotional pricing of $6.95 per trade when the 25 trades are used up. This is actually quite a compelling offer for anyone interested in trying out NBDB because they are lowering their standard commission pricing down from $9.95 to where CIBC Investor’s Edge pricing is on a standard basis. So, although this discounted pricing is temporary, it definitely means National Bank Direct Brokerage has one of the most competitive offers out there.

See table below for more information.*

*Update May 7 – After a long absence from the commission-free trade section of the deals section, RBC Direct Investing is stepping back into the mix with a new offer of 20 commission-free trades which are good for up to one year. This is likely to be a popular offer in the category for several reasons. First, the hurdle to qualify for this offer is incredibly low – the minimum deposit required is only $5,000. Second, RBC Direct Investing is part of Canada’s largest bank, which means there’s lots of attention this offer will garner from DIY investors. Last (but not least), there are fewer players on the deals field at the moment which necessarily means this offer will get more exposure. Scroll down to read additional details.*

No new offers to announce at the outset of May.

Discount Brokerage Deals

Cash Back/Free Trade/Product Offer Promotions
Referral Promotions
Transfer Fee Promotions
Contests & Other Offers
Digital Advice + Roboadvisor Promotions

Cash Back/Free Trade/Product Offer Promotions

Company	Brief Description	Minimum Deposit Amount	Commission/Cash Offer/Promotion Type	Time Limit to Use Commission/Cash Offer	Details Link	Deadline
	A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package.	n/a	Discounted Commission Rates	none	For more details click here	none
	Open 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, 2018
	Open a new account at National Bank Direct Brokerage with at least 5,000 and you may be eligible to receive up to 25 commission-free trades, good for up to one year. There is also a promotional discounted commission-pricing available within the first year to individuals who use up their 25 trades; trading commissions for the first year are $6.95. Use promo code SPRING 2018 when signing up to be eligible for this offer. This offer is also available to existing clients. Be sure to read terms and conditions for full details.	$5,000	25 commission-free trades + $6.95 commission per trade pricing	365 days	National Bank Spring Offer	July 6, 2018
	Open and fund a new account at RBC Direct Investing with at least $5,000 in net new assets and you may be eligible to receive up to 20 commission-free equity trades which are good for up to one year. Be sure to read terms and conditions for full details.	$5,000	20 commission-free trades	365 days	RBC Direct Investing Commission-free Trades Promotion	June 14, 2018
	Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatTransfer or email: [email protected]. See details link for more info.	$10,000	1% of assets transferred in the form of commission-credits (max credits: $1,000)	6 months	Disnat 1% Commission Credit Promo	May 31, 2018
	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, 2018
	Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, with at least A) $50,000; B) $100,000 or C) $300,000+ in net new assets and you may be eligible to receive up to 20 commission-free equity trades plus A) $50 cash back; B) $150 cash back or C) $500 cash back. Commission-free trades are good for up to two months. In addition, eligible individuals can receive an extra $50 as part of the refer a friend program. Use promo code SPRING when signing up. Be sure to read the terms and conditions for more details on the offer.	A) $50,000 B) $100,000 C) $300,000	20 commission-free equity trades AND A) $50; B) $150 C) $500.	Commission-free equity trades are good for up to two months. Cash back will be deposited the week of January 21, 2019.	BMO InvestorLine Spring 2018 Campaign	May 31, 2018
Expired Offers
Last Updated: May 29, 2018 10:15 PT

Referral Promotions

Company	Brief Description	Minimum Deposit Amount	Incentive Structure	Time Limit to Use Commission/Cash Offer Deposit	Details Link	Deadline
	Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements.	A) $1,000 B) $10,000 C) $25,000 D) $50,000 E) $100,000+	$25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back	Cash deposited into Questrade billing account within 7 days after funding period ends (90 days)	Refer a friend terms and conditions Code Number: 476104302388759	none
	If you 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 BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 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.	$50,000	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	October 31, 2018
Expired Offers
Last Updated: May 1, 2018 22:45 PT

Transfer Fee Promotions

Company	Brief Description	Maximum Transfer Fee Coverage Amount	Minimum Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
	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 $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees.	$135	$15,000	Transfer Fee Rebate Details	none
	Transfer $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 $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion.	$150	$25,000	Credential Direct Transfer Fee Rebate	none
	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 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details.	$150	$25,000	Contact client service for more information (1-800-465-5463).	none
	Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.	$135	$25,000	Confirmed with reps. Contact client service for more information (1-800-567-3343).	none
	Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code DisnatTransfer. See details link for more info.	$150	$50,000	Disnat 1% Commission Credit Promo	May 31, 2018
	Open a new qualifying account with BMO InvestorLine or fund a qualifying existing account, by transferring in at least $200,000+ in net new assets and you may be eligible to have transfer fees covered up to $200. Use promo code SPRING when signing up. Be sure to read the terms and conditions for more details on the offer.	$200	$200,000	BMO InvestorLine Spring 2018 Campaign	May 31, 2018
Expired Offers
Last Updated: May. 1, 22:35 PT

Other Promotions

Company	Brief Description	Minimum Deposit Amount Required	Details Link	Deadline
	Desjardins Online Brokerage, in conjunction with MoneyTalks, is offering 3 months of the “Inside Edge” investor information service to Desjardins Online Brokerage clients. Use promo code DESJ2016 during checkout to qualify. Be sure to read full terms and conditions for more information.	n/a	MoneyTalks Inside Edge Discount	none
	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
	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: May. 1, 2018 22:35 PT

Digital Advice + Roboadvisor Promotions

Robo-advisor / Digital advisor	Offer Type	Offer Description	Min. Deposit	Reward / Promotion	Promo Code	Expiry Date	Link
	Discounted Management	Open and fund a new Questrade Portfolio IQ account with a deposit of at least $1,000 and the first month of management will be free. For more information on Portfolio IQ, click the product link.	$1000	1st month no management fees	KDKFNBBC	None	Questrade Portfolio IQ Promo Offer
	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 1, 2018	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: May 1, 2018 22:45 PT

Posted on April 27, 2018 by user — Leave a comment

Discount Brokerage Weekly Roundup – April 27, 2018

For traders of Canadian securities listed on the TSX/TSX-V and Montreal Exchange, the weekend showed up a little earlier than anyone expected. With trading on these markets halted, it was an opportune time for the Toronto crowd to tune into the wizardry of the Toronto Raptors. Of course, online brokerages in Canada are used to throwing a few surprises at the DIY investing space and this week, some pleasant surprises came to market that spell interesting times for active traders.

In this edition of the roundup, we take a look at an acquisition deal that beefs up one online brokerage’s war chest and is part of a new and exciting chapter for Canadian online brokerages. From there we’ll review some interesting developments with a bank-owned online brokerage that’s turning its efforts to Western Canada. Also, we’ll report on a new active trader feature that offers an interesting approach to short-selling at one independent online brokerage. Speaking of surprise developments, this will be the final week we roll out tweets of the week in the current format – we’ll be switching things up and putting this feature on pause. Not on pause though will be chatter from DIY investors which will close out this edition of the roundup.

Jitneytrade to be acquired by Canaccord

After years of treading water, it appears the Canadian online brokerage market is now on the move. This week, a big name in Canadian wealth management, Canaccord Genuity, made a very interesting play by initiating an acquisition of Jitneytrade, a Canadian online brokerage that caters primarily to active traders.

The deal, which was announced by press release, will see Canaccord Genuity acquire both Jitneytrade as well as FinlogiK, the parent to Jitneytrade.

According to the press release Jitneytrade will continue to operate independently however the release also states that the acquisition “serves to support Canaccord Genuity’s mid-market share of equities trading and providing access to new areas of growth through accelerating its development of an enhanced fintech product offering.”

There’s certainly a hint in there that Canaccord, with its strong book of deals and deep client base, could present a genuine challenge to other Canadian online brokerages who cater to active trading clients – in particular options trading clients. Of course, there’s also the fact that through Jitneytrade, Canaccord clients may now be inclined to reconsider which online brokerage they want to actively invest with.

What makes this deal between Jitneytrade and Canaccord all the more interesting is that it is yet another example of smaller Canadian online brokerages integrating with larger financial services players in Canada.

In September 2017, for example, CI Financial announced that it was acquiring BBS Securities, parent to Virtual Brokers. And, in December of 2017, Qtrade Investor and Credential Direct announced they would be merging under the umbrella of wealth management firm Aviso.

Clearly the days of the smaller online brokerage players in Canada are numbered.

“Smaller” non-bank-owned online brokerages are now better capitalized to take on bank-owned online brokerages’ dominance of the wealth management space which should make things even more competitive for DIY investors going forward.

On a more speculative note, Questrade is now the only independent online brokerage to be standing on its own two feet – and given the recent activity in online brokerage space in Canada, one wonders if it too will become acquisition target.

National Bank Direct Brokerage looking west

Sometimes it’s the little things that actually turn out to be interesting signals of things to come in the online brokerage space in Canada.

This past week, a sponsorship by National Bank Direct Brokerage of a conference in Vancouver crossed our radar. Specifically National Bank Direct Brokerage is a sponsor of the “Investment in Innovation – GCFF Vancouver Conference” which caters to Vancouver’s Chinese investor community. Included in the conference are companies from a number of headline-making sectors, including blockchain, fintech, medical marijuana and more.

Event sponsorships for online brokerages have become increasingly rare, so it was telling that NBDB would be reaching out to this particular event. The combination of a number of small-cap companies as well as connecting with a critical mass of investors from the Chinese community is an interesting choice for a bank-owned online brokerage that is much better known in Quebec and Ontario and is likely a clear signal of greater intentions to explore how to make inroads in Western Canada, specifically in BC. It’ll be interesting to see how other brokerages with deeper footprints in BC respond and whether the critical mass of Chinese investors represents a compelling niche to stir up competition amongst Canadian online brokerages interested in connecting with this market demographic.

Questrade enhances short-selling experience

Based on an announcement made at the end of last week in Questrade’s community blog, enhancements to its IQ Edge trading platform that include an automated way to determine the cost of selling shares short took effect.

According to the feature announcement, the borrowing rate (and therefore cost) of short selling will be a floating one which will vary based on a security’s value, demand and available inventory. For traders interested in maintaining a short position, Questrade’s platform will be able to display what that carrying cost will look like as long as the trade is live.

When it comes to short-selling, one of the recurring comments from active traders is the challenge obtaining securities – however with this new program in place there might be an interesting mechanism for Questrade to monetize interest in short-selling and/or moderate the availability of shares to short.

Discount Brokerage Tweets of the Week

After just about three years and close to 150 weekly stories of DIY investor reactions on Twitter, this is the last edition of the tweets of the week in the current format. Our platform provider as acquired by Adobe and as a result the platform that we used to curate and deliver these tweets has been decommissioned.

We’re hoping we can continue to bring interesting insights about the online brokerage space to you from Twitter and are looking forward to being able to start publishing this segment again soon.

Mentioned this week were CIBC Investor’s Edge, Questrade, Scotia iTRADE, and TD Direct Investing.

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Brokerage Tweets – Curated tweets by angeloAtSparx

From the Forums

Fine Print

For DIY investors contemplating being an active investor, there’s an important set of requirements you ought to be aware of. In this post, from RedFlagDeals.com’s investing thread, one user points out the fine print at a big online brokerage that shows how vulnerable traders can be when it comes trading on margin.

Pay for Parking

When it comes to parking cash in an online investing account, there’s a limited number of choices for safely growing your investment. In this post from reddit’s personal finance thread, one user gets an interesting reply to a question about low fee options.

Into the Close

With this week now in the books, it’s one that Canadians and Torontonians won’t soon forget. Another week and another terrible tragedy. To the victims, their families and loved ones as well as to all Canadians impacted by the horrendous van attack that took place in Toronto, the SparxTrading team offers our deepest condolences.

Cartoon for April 24. #HumboldtStrong #humboltbroncos #TorontoAttack #TorontoStrong #TorontoMapleLeafs #Toronto pic.twitter.com/vc5oJ0VqwN

— Michael de Adder (@deAdder) April 24, 2018

Posted on April 20, 2018 by user — 1 Comment

Discount Brokerage Weekly Roundup – April 20, 2018

For many sports fans, playoffs are the time of year when things get really exciting. Fortunately, sports fans aren’t the only ones being treated to contests as DIY investors and online brokerages have contests of their own making headlines. Of course some games take longer than others to win and require some creativity to get ahead (amirite Westworld fans?).

In this edition of the weekly roundup, we look at the return of a popular online trading competition that one Canadian online brokerage is putting up big prize money for. Next, we take a look at some recent earnings from a popular online brokerage and what an earnings call revealed about DIY investor sentiment in Q1 as well as some hints to how the online brokerage space is poised to change this year. As usual we’ll be taking the pulse of DIY investors on Twitter and in the investor forums, so be sure to check out what folks were talking about this week.

Biggest Winner Competition is Back

Just in time for the playoff season (and perhaps the end of season), the Biggest Winner competition from Horizons ETFs and National Bank Direct Brokerage is back. Fun fact, Horizons ETFs also is the exclusive ETF sponsor of the Toronto Raptors.

Officially kicking off on May 7^th, this popular contest features healthy cash prizes for top performing participants. The grand prize is $7,500 while the runner up prize is $2,500. There are also six weekly prizes of $500 each which will keep things exciting from week to week over the course of the challenge.

Contestants will have a fantasy balance of $100,000 to start off with and can only trade Canadian ETFs trading on the TSX. The contest runs between May 7^th and June 15^thso the ‘buy and hold’ strategies may not fare as well as those who take a more active approach.

Of course, with market volatility levels being as high as they are, this could make for a very interesting competition – especially given the performance of leveraged ETFs in these conditions.

To keep things interesting, the competition does have some important limits. For example, the maximum allocation of a portfolio in any one ETF is 25% and investors will be charged fantasy commissions at the rate of $9.95 per trade. Also, the maximum limit of trades over the competition is 5,000 which is still a pretty high bar for scalp traders. Of course, it’s fairly onerous to generate that many orders manually but trader types are known to be competitive, so someone just might be able to max out.

Another fun fact, the sponsor of the competition, National Bank Direct Brokerage, actually allows for totally commission free trading (with some conditions) of Canadian and American ETFs, so in this case, reality has an edge over the fantasy world.

For DIY investors looking to have a little fun and learn about investing, this is a great way to do both. And, who knows, it might be possible to win big with a volatile market and lots of ways to play it.

Volatility Rules for Interactive Brokers in Q1

There’s an old farmer’s saying that goes ‘make hay while the sun shines.’ For many investors, the stock market volatility over the start of 2018 has been anything but sunny, however like anything in the markets, there’s always another side to the story. In this case that other side is that with all of this volatility, traders in the US have come back into the market in a big way.

This past week, US online brokerage Interactive Brokers held their quarterly conference call to review and discuss the results from Q1 of 2018. As with most conference calls, there were certainly more than a few nuggets of information that showed how the online brokerage business in faring for Interactive Brokers, but more importantly, where they are looking to next for opportunities and what this means for both investors and Interactive Brokers’ competition.

First things first, the numbers. Compared to the same quarter last year, Interactive Brokers crushed it when it came to revenue, earnings and trading metrics. Suffice it to say that with year over year growth in accounts of 27% (to 517,000), growth in customer equity of 33% (to $129B) and pretax income for brokerage this quarter was 291 million, up 57%. Importantly, both trading commissions and net interest revenue were significant contributors to earnings and the rise in interest rates helped to bolster earnings.

In addition to the strong numbers, there were two other noteworthy observations from the conference call.

First, there appears to be an interesting marketing strategy that looks to be directed to shareholders or stock watchers to become clients of Interactive Brokers. It is something we noted in previous roundup, but the direct nature of pointing out the benefits to being a shareholder as well as a client mean that Interactive Brokers is tapping into an already attentive audience to mobilize more clients.

A second, and perhaps most interesting observation is that Interactive Brokers continues to move towards offering traditional banking services in an effort to encourage clients to bring more assets into Interactive Brokers. Not only did they launch a trading-account-linked Mastercard, they also offer interest on cash balances (over $100,000) of 1.19% which is huge for people who like to keep their powder dry. The biggest reveal in the conference call, however, was when CEO and founder, Thomas Peterffy mentioned that Interactive Brokers would soon be rolling out a direct deposit (through payroll) feature and the ability to pay bills from a client’s trading account. This last feature is significant because it is a direct play on the convenience of having access to trading funds to do everyday financial management without having to transfer money to another institution.

Based on their latest numbers, the combination of Interactive Brokers’ efforts to chase profits but also to mitigate risks has helped them skate through an exceptionally volatile quarter with lots of profits to show for it.

In a world moving quickly towards technologies that are seeking to disintermediate, being an online brokerage is a tricky proposition. To succeed in the online brokerage market of the future, firms will require scale and critical mass – otherwise as Peterffy astutely remarked – other brokerages will turn to Interactive Brokers to handle the order execution and technology while those firms focus on client service and acquisition.

The latest financial results for Interactive Brokers show that the writing is on the wall for all online brokerages – and for the broader financial services sector – that pulling ahead of the pack requires technology and a trading experience that gets clients excited. Interactive Brokers has demonstrated that it can do that while passing on savings to clients, which in turn results in their pockets getting pretty full in the process.

Discount Brokerage Tweets of the Week

An interesting mix of tweets this week. There were the regular client service and technical difficulty tweets, but there were also some interesting hints dropped by Questrade on future features and some great coverage of a financial literacy event (also featuring Questrade). Mentioned this week were BMO InvestorLine, CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, and TD Direct Investing.

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Brokerage Tweets – Curated tweets by angeloAtSparx

From the Forums

Feed Up

Before opening an online brokerage, it’s important to understand how much it will cost to trade there. Unfortunately, for one eager beaver, the FOMO of getting into a hot sector won out over reading through the details of trading costs. This post from reddit’s Personal Finance Canada thread shows how one Scotia iTRADE user is looking for a way to minimize fees on the way out.

The drop on DRIPs

Maintaining healthy skepticism is important to surviving the investing world long term. So, one thoughtful forum user in this post from the RedFlagDeals Investing thread posed a question about the downside to using DRIP investing at Questrade. The responses offered a variety of interesting perspectives.

Into the Close

Seeing that it’s 4/20, it only seems appropriate to end the week on a high note (ba-dum-tsh). Yes there were many green puns today but with recreational marijuana legalization just around the corner here in Canada, investors were also weighing in on prospects for this sector. Of course, once all the smoke finally clears on Friday, there’s a whole weekend of hoping and cheering to get to. Good luck Raptors (and even the Leafs) – it’s a great weekend to get on a roll. Ok I’ll stop. Have a great weekend!!

Posted on April 13, 2018 by user — Leave a comment

Discount Brokerage Weekly Roundup – April 13, 2018

Friday the 13^th seems like an unlucky date for those in the path of a spring-time ice storm (sorry Toronto!) and for others, well, the search for ice is really just to keep drinks cold. Yes, this edition of the roundup is coming to you from the sunny and warm beaches of Huatulco, Mexico where the struggle to stay cool is real.

In this edition of the roundup, we thought we’d do something a little different. With so much happening in the online brokerage space already in 2018 (and because I am in Mexico while writing this roundup) this was a great opportunity to pause and reflect on some of the biggest stories and emerging trends that shaped the first quarter of 2018. Below are four of the biggest and most interesting things that have happened so far in Canada’s online brokerage space.

Outages & outrage kick off the new year

Many Canadian online brokerages faced a perfect storm at the outset of 2018. Caught up in the groundswell of interest in cryptocurrencies and marijuana stocks, DIY investors were definitely in a risk-on mood to kick off the year.

As a result, trading activity surged beyond the capacity of many of Canada’s (and some of the US’s) largest online brokerages’ systems to handle the order flow.

On an “ordinary” trading day, outages to DIY investors are annoying and occasionally tempers flare, but, when the bulls were stampeding, sidelined DIY investors were left seeing red when their platforms weren’t able to connect or trade on their online brokerage’s network.

For the better part of January, outages at Canadian online brokerages made headlines with major news outlets, including BNN, with Canada’s large bank-owned online brokerages such as TD Direct Investing and RBC Direct Investing in the crosshairs.

Royal Bank customers are complaining about intermittent issues with online banking and brokerage services. https://t.co/vgmn11Dv6q

— CBC Marketplace (@cbcmarketplace) January 4, 2018

A consequence of trading platform outages was that DIY investors had to turn to customer service phone lines and Twitter channels to either execute trades or to find out what was going on. The result: wait times on the phone surged – stretching to hours in some cases before calls were being answered.

The tough lesson for DIY investors caught in the mix was that regardless of online brokerage size, online trading is not without risks, including the risk of being disconnected.

While a few online brokerages managed to NOT make headlines by maintaining business as usual, this scenario was a wake-up call for Canadian online brokerages on the business case for properly resourcing both online trading capacity and failover systems on phone channels.

Here’s a list of editions of the weekly roundup that outages & wait times made headlines in:

Online brokerages battle it out with promotions during RSP season

If you think RSP season is a myth, think again. Just like flu season, interest in RSP-related information, and accounts, starts to climb in November and peaks in the first 60 days of the new year.

Google search trends for RRSP’s in Canada over the past five years

While chicken soup offers paired with RRSP deals are likely not coming anytime soon, this year, DIY investors were being wooed by an incredibly high volume of offers, ranging from cash back to commission-free trading. Specifically, this year’s crop of cash back offers stood out as bank-owned brokerages stepped up their use of this promotional offer and smaller non-bank owned players also were prepared to ante up.

Highly savvy investors who typically look to open accounts across providers to access features unique to each and to diversify where their money is parked, were provided with an especially unique scenario this year. Specifically, by splitting up where deposits were made, DIY investors could enjoy substantially higher cash back bonuses than putting all of their assets with one brokerage.

Canadian discount brokerages reviewing the deals & promotions landscape will likely also see that incentive offers are yet another ‘battleground’ that’s opened up and that smaller players looking to win market share will make strides by raising the stakes with cash bonus offers.

At the very least, DIY investors will be willing to look at what’s being offered, especially if the headline numbers are big.

Discount brokerage deals and promotions were another big story last quarter so here is a list of weekly roundups in which deals and promos were referenced and analyzed:

Rankings and Ratings Roundup

After much anticipation, the Globe and Mail’s annual online brokerage rankings were published in mid-February.

As the most popular and highly sought out rankings of Canada’s online brokerages, the 19^th edition of the assessment did not disappoint with some new comparison features and inclusion of Interactive Brokers Canada. Qtrade Investor walked away with top honours in the Globe’s rankings and of the top five, three were non-bank owned brokerages.

Of course, once these rankings were published, and perhaps even in anticipation of them, the marketing departments at Canada’s online brokerages were busy listing off the various ratings, rankings or accolades that position each respective brokerage as ‘the best’ at one feature or another.

In our roundup on March 9^th we featured 8 online brokerages who had listed off awards or recognition that claimed each brokerage was the best at something if not the best online brokerage outright.

Not too long afterwards, our roundup on March 30^th featured a deep dive on Interactive Brokers’ win of the Barron’s annual online brokerage rankings in the US. Despite the victory taking place in the US, Canadian online brokerages should pay attention to since interactive brokers Canada offers most of the trading technology and analysis tools as the US version does.

In fact, the high ranking in the Globe and Mail’s assessment, the top finish in the Barron’s ratings and the much more visible advertising presence here in Canada (which we noted here on February 23^rd) suggests that Interactive Brokers is going to be getting and generating more attention in 2018.

For DIY investor’s the tip here is to read the fine print on the date of the award because we noted several instances where awards from previous years were being used to justify being characterized as ‘the best.’

BMO breaking through on social media & digital

When it comes to social media and investing online, only one of Canada’s bank-owned wealth management arms successfully managed to execute on an effective social media-based influencer campaign in Q1 of 2018. BMO Wealth Management (parent to BMO InvestorLine) and BMO SmartFolio were able to generate a highly engaged, interactive online Twitter chats on investing online.

The countdown is on! T-minus 30 minutes until another #InvestSmart Twitter Chat, co-hosted by @Listen2Lena. Prizes to be won: you won’t want to miss it! 🙂 pic.twitter.com/1vct0TmnEN

— BMO (@BMO) March 6, 2018

The Q&A format did well as did the session thanks in part to the fact that the host of the Twitter chat was Lena Almeida. In January, BMO SmartFolio’s session on investing online helped spark a lively conversation on topics related to investing online. Fast forward a few weeks to March 5th, and BMO Wealth Management was on Twitter with an #InvestSmart session in support of International Women’s Day.

Just prior to the end of Q1, BMO InvestorLine also rolled out a new homepage which was a significant iteration to its previous design.

Screenshots of previous BMO InvestorLine website homepage (left) and new BMO InvestorLine website homepage (right).

Although we covered this new site in more detail in last week’s roundup (here), the latest moves by BMO InvestorLine online showcase that they are not standing still when it comes to embracing digital channels to better connect with DIY investors.

*full disclosure: Sparx Publishing Group Inc. the parent company to SparxTrading.com, may receive affiliate or referral bonuses for individuals signing up to BMO InvestorLine or BMO SmartFolio services via SparxTrading.com, however no compensation from BMO InvestorLine or BMO SmartFolio was received for writing this article.

Discount Brokerage Tweets of the Week

Interesting chatter as usual, with technical issues and client service challenges prompting the majority of Twitter comments. Mentioned this week were BMO InvestorLine, CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, and TD Direct Investing.

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Brokerage Tweets – Curated tweets by angeloAtSparx

From the Forums

Making moves

How easy is it to switch online brokerages? This post, from reddit’s personal finance Canada thread, highlights one user’s question about transferring from TD Direct Investing to Questrade and offers insights into timing and costs.

Tips on RESPs

DIY investing usually means a lot of research to figure out how to maximize the return on investment. When it comes to savings vehicles, like the RESP, however, there’s lots to consider. In this post, also from reddit’s personal finance Canada thread, users weigh in to help one expecting parent navigate the tricky world of investing for their child’s education.

Into the Close

As we head into another weekend, we wanted to take a moment to extend our deepest condolences and heartfelt sympathies to the teammates, families, friends and communities who tragically lost loved ones in the heartbreaking Humboldt Broncos bus accident.

Posted on April 6, 2018 by user — Leave a comment

Discount Brokerage Weekly Roundup – April 6, 2018

Welcome to April 2018, where the invisible hand has taken to typing away tweets to move markets. The power of digital platforms and the importance of making deals coincidentally happen to be two important themes that Canadian online brokerages are also picking up on, although in a far less blustery manner.

In this edition of the roundup, we take a look at the bullish indicators to come out of the latest online brokerage promotions numbers. From there, we take a deep dive into one bank-owned brokerage’s timely refresh of a website which could be a savvy move to attract active investors seeking to participate in market volatility. And, speaking of volatility, there were some very intriguing tweets from DIY investors about what’s happening in the discount brokerage space as well as some great posts on the investor forums.

Deals Update

Despite the turmoil and uncertainty in the stock market, the Canadian discount brokerage deal offers continue to look bullish for DIY investors.

The latest snapshot of deals for new online investing accounts is now live and this month’s action saw two online brokerages extend offers that were set to expire at the end of March as well as the release of a rare cash back and commission-free trade offer.

Starting first with the extensions, HSBC InvestDirect and Desjardins Online Brokerage both pushed the deadline for their offers out to April 30^th and May 31^st respectively. What is especially interesting about the HSBC InvestDirect renewal is that it is a cash back offer and now one of only two cash-back offers (the other is from BMO InvestorLine) that DIY investors can choose from that is not part of a refer-a-friend program. Given the attention DIY investor deal hunters place on cash back offers, the absence of competition in this offer segment works out well for both bank-owned online brokers.

The other bullish indicator was the latest offer from BMO InvestorLine, which went live shortly after the roll out of their new front-end website. This latest offer is a rare cash back AND commission-free equity trade promotion that combines a tiered cash bonus and up to 20 commission-free equity trades, which are good for up to two months. Conveniently, this kind of offer doesn’t force users to choose between either a cash bonus or commission free trade, which is nice, and the cash offer itself is fairly competitive alongside the current cash offers. Also interesting to observe was the minimum deposit amount to qualify for the promotion is $50,000, which is lower than the typical threshold of $100K+.

Once again, it appears that transfer fee promotions have stepped back into the lead as the most common offer available at just about every Canadian online brokerage. As we noted last month, Qtrade Investor now sits atop this list since they lowered their deposit threshold to $15,000 from the common watermark of $25,000. It will be interesting to see which online brokerage decides to match this offer – especially Credential Direct and/or Desjardins Online Brokerage as they move through the process of merging together with Qtrade Investor.

The only deal that didn’t make it through to the end of March was the discounted trading commission offer from Virtual Brokers. Not known for staying on the promotions sidelines for too long, Virtual Brokers may already be cooking something up for the not too distant future.

In fact, we’ll be watching to see what unfolds in April. As stock market turmoil heats up, online brokerages may have to turn to some very creative offers and incentives to encourage investors to open an online investing account rather than sitting out the Twitter storm and market volatility.

BMO InvestorLine Rolls Out New Website

The reality for brands to be online today requires staying fresh to stay interesting. For financial service providers, this presents a unique challenge.

On the one hand, financial services rely heavily on conveying trust, reliability and consistency and as a result, keeping changes to a minimum. On the other, considerations such as user experience and design elements are being considered as metrics of trust now more than ever before in the organization and delivery of online brokerage websites.

Screenshot of new website for BMO InvestorLine

It is against this backdrop, as well as an ongoing evolution in digital strategy, that BMO InvestorLine’s recent website refresh highlights some important trends in design and communicates some key stakeholders BMO InvestorLine is looking to reach.

Although there is lots to dive into, three of the most interesting components of the website refresh fit neatly into the following categories: personas, perks and platforms.

Fair warning, talking about website design might seem overly technical, but when competition between providers is so close, this refresh serves as an example that small changes can make a big difference in how easily users find information and how useful it is when they find it.

Personas

One of the more noticeable changes on the new BMO InvestorLine website is the space dedicated to investor ‘personas’ – or depictions of typical kinds investors. While personas are not new, it is interesting to see the variation in how they’re used. In a refresh that Credential Direct undertook last year, for example, personas were an important part of how the content on the website connected more meaningfully with website visitors.

With BMO InvestorLine’s new layout, these personas feature prominently and use an interesting combination of pictures of individuals as well as text to explain the features/benefits of the category of investor each persona is meant to represent. For example, in terms of writing style, the language used more directly addresses the reader or an approximation of the reader’s investing experience level (e.g. ‘you’ve got the basics and now want more insights…”). It is a subtle thing but as mentioned earlier, it also helps to connect a little more directly with a reader.

Screenshot of investor persona types described by BMO InvestorLine

Another interesting visual element is how DIY investors are portrayed.

Historically, investors have typically been portrayed as older men, however the choices of imagery selected here clearly communicate that DIY investors are more diverse. This trend towards greater diversity and inclusivity is not unique to BMO InvestorLine but reflective of a larger trend in financial services providers doing a more effective job of representing the diverse nature of the Canadian population.

Further, the pictures chosen are of individuals staring into the camera and smiling – not reading a screen or doing some other stereotypical “investing” activity. This was an interesting and powerful choice as it psychologically connects viewers with the person in the image, and communicates safety and satisfaction (as opposed to communicating, “this is what investors look like when they’re investing”).

Perks

Another interesting angle on the new page is how promotional offers as well as “perks” are featured.

BMO InvestorLine is one of a handful of Canadian online brokerages that consistently puts forward promotional offers (see below for more on the new InvestorLine promotion) throughout the year, so promotions are an important part of the brand offering.

Also intriguing was the positioning of added features as “perks”. This is somewhat rare as other online brokerages generally don’t refer to the features associated with either increased trading activity or larger account sizes as perks (or if they do, it’s certainly more muted), but labeling these features in this way enhances the feeling of receiving a bonus. It may be a small change but it is an important one as it makes the idea of getting something seem a bit more special. And, after all, who doesn’t like ‘perks’?

Platforms

A third interesting feature on the new BMO InvestorLine website is the increased prominence of their active trading platform, BMO Market Pro.

Screenshot of active trader platform offering (BMO MarketPro).

This trading platform offers an enhanced trading experience with charting tools, alerts, streaming data, order entry and watchlists. Active traders might be interested to know that the bar to qualify for access to Market Pro is 30 trades per quarter or at least $250,000 in assets with BMO InvestorLine. Interestingly, while the threshold to qualify for this advanced platform (30 trades per quarter) is standard at peer bank-owned brokerages, BMO Market Pro also includes level 2 streaming quotes for TSX-Venture-listed stocks. This data stream generally costs extra (between $25 to $50/mo) on active/advanced platforms (e.g. Scotia iTRADE and TD Direct Investing charge for this) so having it included is a plus for active investors interested in trading small cap stocks.

The competition between online brokerages extends beyond just pricing and features. As the latest refresh from BMO InvestorLine’s website shows, it also is now in the digital experience arena. Ultimately for the site to be a step forward, it needs to improve how quickly individuals locate the information online that they are looking for.

When looking at the ‘big picture’, the new website shows an interesting shift toward highlighting the ‘platform’ and ‘tools’ offered by InvestorLine, as well as feature-rich offerings like the Market Pro platform and 5-star program. Is it a coincidence that with the market volatility picking up, the messaging is turning more to trading rather than buy-and-hold? Perhaps. But for BMO InvestorLine, it’s certainly good timing to be broadcasting their active trader features.

For DIY investors comparing online brokerages, the key takeaways from this website refresh are that BMO InvestorLine is not standing still when it comes to staying current with online experiences – a metric that is increasingly becoming the standard by which brokerages are going to be judged on. Also, there appears to be a greater emphasis on letting the active traders out there know that BMO InvestorLine has a feature set that they might find worthy of a test-drive.

Discount Brokerage Tweets of the Week

There were a number of interesting tweets from DIY investors this week. Among the items people were talking about (beyond technical difficulties) were revisions to terms of service, new features with yahoo and money disappearing from an account (not from trading). Mentioned this week were BMO InvestorLine, Questrade, RBC Direct Investing, Scotia iTRADE, and TD Direct Investing.

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Brokerage Tweets – Curated tweets by angeloAtSparx

From the Forums

Insight-er Trading

Every so often when an online investor turns to the internet for help, there’s a great resource that emerges. In this post from the reddit Personal Finance Canada thread, one user was experiencing some frustration getting an RDSP setup properly. Fortunately, there was a happy ending and an incredibly thoughtful post that helped walk through the experience of setting up a self-directed RDSP at TD Direct Investing.

Ticked Tax

When it comes to getting documents ready for tax filing, nothing gets DIY investors agitated like delays in receiving tax forms. In this post, from reddit’s Personal Finance Canada thread, we spotted a few users waiting for Questrade forms to filter in.

Into the Close

That’s a wrap for this week. While the traders playing volatility had a fun week, there were lots of moments that made it feel like Friday could come fast enough. Of course, there’s probably a soundtrack on Spotify available for those traders out there trying to get out in front of the hot mess that is the news cycle. Wherever the weekend takes you, hopefully it is filled with better news than what’s trending online! In the meantime, here’s a little something to end the week on a fun note.