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Scotia iTRADE

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Discount Brokerage Weekly Roundup – March 31, 2017

Even though March is over, it still doesn’t quite feel like the madness is behind us yet. Nonetheless, housing prices (in Toronto) and stock markets are still buoyant, and are managing to keep up appearances. For investors & discount brokerages, it seems the old farmer adage stands: make hay while the sun shines.

In this edition of the roundup, we look at the deals and promotions turnover set to take place across the board as we head into a new month. From there, we’ll review the latest security feature from a Canadian bank-owned discount brokerage that leverages voice biometrics. As always, we’ll look at what DIY investors had to say on Twitter and wrap up the week with a couple of interesting forum posts.

Marching Forward

After the madness of the RSP contribution season, a rally in the stock market, and rumblings of interest rate increases, it appears as if the landscape for online brokerages is due for a bit of a shakeup.

As we head into a new month, it is already clear that there will be a great deal of change on the deals & promotions front with at least six offers officially set to expire at midnight. Interestingly, deals from National Bank Direct Brokerage, CIBC Investor’s Edge and Scotia iTRADE were pulled from their websites in advance of the official calendar roll over.

The transition from March madness to April (sadness?) is not unusual. Last year, the shift from March to April saw the deal count fall 42% from 33 offers down to 19, with most of the offers disappearing from the cash back/free trade category. The deal count through March of this year reached close to 30 before pulling back slightly with the expiration of deals from Credential Direct, Qtrade Investor and HSBC InvestDirect.

One curious observation this year is that online brokerages have removed offers from their website in advance of the calendar roll over. Typically these deals last through the last day of the offer, even sticking around a few days after the deal has expired.

It’s not quite clear what this means for publication of new offers, however it seems that brokerages are being slightly more responsive than they have been previously. Also, it is curious to note that, at the time of publication, there were no longer any promotional offers or deals listed on the Scotia iTRADE special offers section. Scotia iTRADE has been staple of the deals race for a very long time, so it will be interesting to see if they populate their deals section again soon or if this is a signal of a change in strategy.

We will continue to monitor the deals & promotions section heading into April, especially since the landscape for DIY investors’ choice of promotions keeps shifting. With several ‘coming soon’ features announced by brokerages (including one described below) there may be a convenient promotion to accompany new feature releases.

List of some of the brokerages and deals expired as of March 31st:

  • Virtual Brokers’ $10,000 Commission Credit Offer
  • National Bank Direct Brokerage Cash Back Promotion
  • Scotia iTRADE Winter 2017 Commission Rebate Offer
  • CIBC Investor’s Edge Cash Back & Free Trade Offer
  • TD Direct Investing 200 Commission-free Trade Offer

New Voice of Security

Whether it’s Siri, Google or Alexa, there’s no question that voice recognition is playing a greater role in the day to day lives of consumers. Now, it appears, it will do the same for DIY investors.

Voice recognition technology has typically found its way into the financial services world as a means to replace users having to push numbers on a keypad to navigate, but now it is possible for this technology to verify the identity of who’s on the line.

An announcement posted on the CIBC Investor’s Edge website indicates that voice recognition biometrics will soon be integrated into the customer service experience at one of Canada’s bank-owned online discount brokerages. Instead of fumbling about with passwords, PINs or security verification questions, individuals who are in a hurry will simply be able to rely on a ‘voiceprint’ for security authentication.

Screenshot from CIBC Investor’s Edge Website

How much time can be saved using voice biometric login? Quite a bit, it seems. A recent study of voiceprint-based biometric authentication from Citibank’s Asian Pacific region found that the average time to validate a client’s identity dropped from 45 seconds to 15 seconds using this new technology. In a world where user experience online demands web pages load in fractions of a second, it’s easy to see why making the case to shave the telephone authentication experience down makes sense.

Another improvement to the telephone experience CIBC Investors Edge users will enjoy is being able to schedule a call back instead of waiting on hold.

Granted, it seems like a small improvement, but for impatient traders or investors who would rather listen to the market news instead of hold music (or hold commercials), the call back feature is a godsend and will make scenarios like the one mentioned above a thing of the past. Of course, while call backs are preferable, how long it takes for an agent to call back is another matter entirely.

The announcement page for this new feature also has compiled a useful list of questions, including what should happen if voice authentication does not work or does not allow a user in.

This latest feature announcement, while not revolutionary, is still evolutionary and helps to exemplify that the bigger bank-owned discount brokerages are not standing still when it comes to innovation. When it comes to deciding on how to improve consumer experience as an online brokerage, this one seems to be a good call.

Discount Brokerage Tweets of the Week

If there’s a rule to social media and discount brokerages, it’s that when things break, you’ll hear about it on Twitter. Mentioned this week were BMO InvestorLine, Disnat, Questrade, Scotia iTRADE, TD Direct Investing & Virtual Brokers.

From the Forums

Conversion Factor

DIY investors are always on the lookout for a good deal. In this post, from reddit’s Personal Finance Canada, one DIY investor looking for a better way to convert between USD & CAD found a good tip to consider at a popular online brokerage.

Qtrade vs Questrade

Without meaning to, the Q-named Canadian discount brokerages are often mistaken for one another. In this post, however, one user had narrowed the field down to choosing between Qtrade Investor and Questrade. More instructive, however, is the response on this channel that Questrade managed to provide.

Into the Close

That does it for another week in the markets. Assuming that nothing totally crazy happens on Twitter this weekend, enjoy April Fool’s Day, the start of spring training and celebrating the successful launch (and return) of the SpaceX rocket. For a head start on April Fool’s pranks, here’s a fun rundown of them.

 

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Discount Brokerage Weekly Roundup – March 24, 2017

Investor’s know that when it comes to investing, there’s generally no such thing as a sure thing. In a week where there was so much going on, it was curious to see those that were convinced of a done deal (aka repeal & replace) come undone at the seams and those that were convinced of the worst (i.e. a capital gains tax hike) not see it come through.

This week’s roundup is chalked full of goodies courtesy of the federal budget and a handful of Canadian discount brokerages who’ve supplied investors with some interesting analysis and overviews of important changes for DIY investors to take note of. While the budget dominated the headlines, the next big story covered in the roundup looks at an interesting ‘blip’ on the radar from one of Canada’s largest online brokerages and how this might change the toolbox for younger DIY investors. From there we’ll scan through the latest tweets and DIY investor forum posts to see what investors and brokerages were talking about.

Budgetpalooza

This week, the highly anticipated federal budget was announced and it was maybe more of a surprise because of what it didn’t contain than for what it did.

Canadian DIY investors and pundits breathed a collective sigh of relieve when it was clear that the capital gains exemption rate would be left untouched at the current 50% rate.

Even though many experts describe the budget as a ‘business as usual’ move, it nonetheless weighed in at over 200 pages and did contain a number of nuggets that investors will need to pay attention to. Of course, like just about everything related to DIY investing, getting a full view of what the budget changes may mean requires quite a bit of reading and researching different sources.

Fortunately for DIY investors, there are couple of resources from Canadian online brokerages that can help make sense of the budget from an investor’s point of view.

We’ve identified three discount brokerages who’ve put together some useful resources related to this most recent budget announcement that DIY investors may want to pay closer attention to: Desjardins Online Brokerage, BMO InvestorLine (via BMO Wealth Management) and CIBC Investor’s Edge.

Here’s a quick overview of each source and what information that DIY investors might find most useful.

Budget 2017 Review: Desjardins Online Brokerage

Starting first with Desjardins Online Brokerage, who managed to pull together very good summaries of the budget very quickly. Their budget coverage included an ultra quick read/summary of some highlights of the budget including:

  • Access to the Canada Learning Bond (CLB)
  • Anti-avoidance rules applicable to registered plans
  • Phasing out the Canada Savings Bond Program
  • Consolidation of caregiver credits
  • Tuition tax credit
  • Tax credit for transit
  • Capital gain inclusion rate in computing income

None of these topics was explored in detail in the summary, but to provide added depth – especially from an economic perspective, there was also a budget analysis audio cast (great for listening on the road or treadmill) and PDF report. This report would be of interest to DIY investors who want take a ‘macro’ look at the possible impact of the budget on the Canadian economy.

Budget 2017 Review: BMO InvestorLine (BMO Wealth Management)

The BMO Wealth Management budget overview provided by BMO InvestorLine offered clients a detailed explanation of key changes in the budget that was particularly strong in highlighting a few changes that can impact DIY investors. In addition to the detailed article, there was a video interview (shown below) that provided a recap.

On a side note, the content/digital marketing efforts of the Canadian financial institutions are starting to ramp up (this is probably another topic for another day, but feel free to drop us a note if you want to chat about it!)

Some points of interest from the BMO Wealth Management 2017 budget overview were:

  • the detailed explanations on Anti-avoidance rules which are of importance to investors with RESPs or those thinking about using a DIY investor account for an RESP
  • timing of recognition of gains & losses for derivatives which should be important for advanced DIY options traders/investors to review
  • tax incentives for investors of flow-through entities (related to mineral exploration).

Budget 2017 Review: CIBC Investor’s Edge

The budget overview from CIBC Investor’s Edge consists of two parts. The first, a document prepared by tax and estate planning experts Jamie Golombek and Debbie Pearl-Weinberg, was a somewhat detailed look at key components of the budget that could impact individuals and small business owners.

This document covered quite a bit of ground but was nonetheless very readable. The most salient points for DIY investors included had some good explanations of rules impacting RESPs/RDSPs and a very good example of the changes to timing of recognition of gains and losses for derivatives – a must read for options traders.

In addition to their overview document, there will be a webinar presented by Jamie Golombek, scheduled for Wednesday March 29th from 12pm – 1pm ET, which will cover:

  • tax filing tips
  • splitting investment income with family members
  • Investing in RRSPs or TFSAs vs paying off debt
  • Donation strategies for investors

As this is investor focused content, it will likely provide some additional depth and colour to the points DIY investors are likely to encounter when tax planning.

Other brokerages

Although not directly from TD Direct Investing, the Money Talks series produced by TD provided some investor-focused budget content in video format and TD Economics put together a brief analysis of the budget from a ‘macro’ perspective.

The five minute-ish Money Talks video touched very briefly on several topics related to the budget, including what didn’t happen this budget. The big takeaway from this video was to talk to a tax/investment advisor for more guidance.

You’ve got a fund in me

It’s not often these days that DIY investors get to hear about mutual funds. In fact, when looking back at the past few years of investor education events, there haven’t been many (daresay any) of educational events for DIY investors from Canadian discount brokerages that specifically dealt with mutual funds.

That changed this week as TD Direct Investing held a webinar on mutual funds that appeared to coincide with the release of TD Managed ETF Portfolios (which are available as D-series mutual funds).

On the surface, it appears that DIY investors (especially those with modest portfolio sizes) who are looking for a convenient, cheap(ish) option for getting diversified exposure for their investment could be in luck. For a very good overview of what’s under the hood on the new offer, especially the finer point of these funds having an actively managed component, check out the Canadian Couch Potato article here.

In addition to the new product angle, what was most interesting about the TD Direct Investing webinar we reviewed this week was that the webinar appeared to provide only a partial view of the full landscape of mutual fund choices available to DIY investors who are with TD Direct Investing.

Specifically, there was no mention of the TD e-Series funds during the presentation even during the discussion of funds that could be accessed by DIY investors. Given the popularity of the TD e-Series funds with DIY investors and those that presumably would also be interested in the new D-Series funds, it was a very curious choice to omit.

Nonetheless, the combination of a webinar topic on mutual funds, especially those marketed to DIY investors, as well as the launch of a new DIY-focused set of mutual funds that have earned cautious praise from an influential voice in the Canadian DIY investing, signal a potentially interesting development across the industry.

Challenged by robo-advisors on the one hand and the trend towards passive (and ETF investing) on the other, bringing back the mutual fund into the DIY investor tool box is something other larger players might also try to get behind.

While it may not be the ‘cheapest’ option for DIY investors, these new mutual funds may gain traction because of perceived value. Specifically, for younger or less experienced investors, that value lever is convenience, something bank-owned discount brokerages such as TD Direct Investing know just as good as any firm how to sell.

Discount Brokerage Tweets of the Week

March madness was in full effect – and it wasn’t just basketball either. Mentioned this week were CIBC Investor’s Edge, Questrade (a lot!), Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

The Waiting Game

Does transferring to or from a discount brokerage really have to be so painful? Transfers happen all the time, however the internet is littered with horror stories from DIY investors who’ve had things go off the rails when trying to get into or out of an online brokerage account. Find out from this post what one investor had to go through when trying to transfer into a popular discount brokerage.

Into the Close

Investors have had a lot to chew on this week. Fortunately, spring is officially here, so here’s to thinking about warmer weather. In the meantime, hockey fans enjoy the race to the playoffs (for those who are still in it) and best of luck ducking the political drama this weekend!

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Discount Brokerage Weekly Roundup – March 17, 2017

March madness indeed. After ‘losing’ an hour to start the week, things were looking kind of looking up with Pi day, then there was the interest rate hike in the US, that whole ‘Ides of March’, the IPO of Canada Goose and finally St. Patrick’s Day on a quadruple witching day. Even though Canadian discount brokerages may be used to these ups and downs, the bigger picture appears to be how to stand out to investors with so much else going on.

In this week’s roundup we take a look at a couple of online brokerages attempting to grab the spotlight as best they can amidst a crazy news cycle. The first, a major platform upgrade, could be a signal of some changes to come at a brokerage that doesn’t often make the news. Next we look at what might be the ‘next big thing’ for socially responsible investors and a big differentiator at a bank-owned online brokerage. Also on the menu, we cut through the cat videos, Trump tweets and trolls to find what DIY investors were chirping about on Twitter and on the investing forums.

HSBC Launching New Platform

It’s almost cliché at this point but user experience is important for traders on the web today.

Over the past four years, there has been a concerted effort by most Canadian discount brokerages to improve ‘user experience’ for their existing and prospective clients. Earlier this year, Scotia iTRADE released a new front end website to improve navigation and usability. This past week, HSBC InvestDirect posted an update to their website indicating that a major facelift or upgrade to their online trading experience is on its way.

Screenshot from HSBC InvestDirect Website

Based on an early look at the new platform available on the InvestDirect website, the new trading platform features screenshots that highlight the cleaner look and feel to the landing page. A consolidated view of the holdings, positions and overall gains/losses makes up the dashboard.

Asset breakdowns are in line with other brokerage interfaces and contain clear(er) charts showcasing asset allocation, regions/sectors and performance to help track investments.

Under their ‘investor tools’ the layout includes essential trading information on a stock as well as essential functionality (such as the ability to trade, refresh for quotes, add stocks to a watchlist or setting an alert). The nice feature they have in their stock window is the ability to compare up to three stocks on a chart against one another. Even though it is clean and somewhat minimal in design, it appears to have some of the more popular features that most DIY investors would require.

In terms of screeners, HSBC InvestDirect provided a preview to their mutual fund, ETF and fixed income screeners. The filter parameters include a few standard values such as Risk, MER and Morningstar Ratings as well as the ability to run pre-defined search queries. With so many of these products on the market, a screener that has some advanced filters is a valuable tool.

Although this new platform is clearly catered towards the standard DIY investor (more likely the buy/hold or occasional investor/swing trader) it is nonetheless an important step forward for HSBC InvestDirect’s digital identity. Not only will the new platform enable them to better service their existing clients with an improved order entry, research and tracking experience, this newer interface might improve the perception of the HSBC InvestDirect brand.

For many years, discount brokerage rankings from Surviscor and Rob Carrick (Globe and Mail) for being out of touch with the needs/user experience of modern investors. For example, the last ranking from Rob Carrick referenced HSBC InvestDirect as “the broker that time forgot. Hasn’t done much to shake things up since the mid-2000’s…” while Surviscor assigned a grade of “C-“ to “transaction process” and a “D” to “website resources.”

Though the unveiling of a new trading platform won’t necessarily be revolutionary, the fact that it is evolutionary is a good sign for HSBC InvestDirect. And even though it’s hard to tell what else will be changing (if at all) and when, the best news for DIY investors is that they’re not standing still.

Scotia iTRADE goes for sustainability

Another interesting development this week was from Scotia iTRADE who became the first DIY investing brokerage to launch integrated tools to evaluate the ‘sustainability’ (measured across Environmental, Social and Governance – ESG – parameters) of publicly traded companies.  The tool itself is developed by a third-party, Sustainalytics, which has been involved in evaluating companies on ESG parameters for the past 25 years.

While there will be more to come in an upcoming post, at first blush this new feature looks like a significant directional move by Scotia iTRADE. At a time when marketing budgets across online brokerages are getting increasing scrutiny, the cost of professionally producing and launching a new product video is not insignificant, so the three part explainer videos hint at a major commitment from iTRADE to let investors know about this new feature.

Reading between the lines, the coordination of marketing efforts to do this means the ‘sustainable’ angle likely will form an important component to what will differentiate Scotia iTRADE from its peers, especially in the near term.

Interestingly, the spotlight on ethical and sustainable issues has never been more timely (and perhaps a tad ironic).

The Canadian financial services industry is still reeling from the blowback from the recent CBC news investigation that revealed (alleged) significant ethical violations from front-line staff. How the Canadian banks would fare on an ESG score sheet after this new revelation would be very important to track especially as more details emerge.

Discount Brokerage Tweets of the Week

Feature requests and customer service gripes made up the menu of tweets this week. Mentioned were CIBC Investor’ Edge, Credential Direct, Questrade, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

 

From the Forums

Detail Disoriented

When it comes to investing and trading, everybody starts at the bottom of the mountain. Thankfully there are some good people along the way that can offer sober advice about the journey to becoming a confident DIY investor. In this post from reddit’s Personal Finance Canada thread, one new investor finds out that details matter and keeping them all straight is just the beginning of the juggling act of investing solo.

Certifiably Unhappy

Nothing like a nasty fee surprise to leave a bad impression of a service provider. For one DIY investor trying to deposit a share certificate with Scotia iTRADE, the sting of a deposit fee was enough to have them start to shop around. Read what others had to say about the share certificate fee-asco in this post from RedFlagDeals.com.

Into the close

That’s a wrap on another busy week. For anyone trading this week’s market, hopefully it ended on a green note along with celebratory (or necessary) drink (or two). Next week should be another wild ride for Canadian DIY investors with the federal budget announcement slated for mid-week. Rest up (while you can) & have a great weekend!

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Discount Brokerage Weekly Roundup – March 10, 2017

For many families, the reality of March break is about to set in. What it means is that, while there may be a change in pace, the word ‘break’ doesn’t quite mean the same to the parents as it does to the kids. Unfortunately for everyone though, there is no break from the mania that is Trump coverage. And, for online brokerages and DIY investors in the US and possibly here in Canada, there is the very real possibility that there are still more waves to be made when it comes to DIY investing.

In this week’s roundup, we recap a couple of interesting stories from the SparxTrading blog roll. Specifically, we look at the escalating commission-fee price war between major US online brokerages, the evolving regulatory landscape for investment product/service providers and how these events may shape Canadian DIY investing in the near term. Next, we look at how Canadian discount brokerages are approaching online security and what DIY investors should be doing to better protect themselves online. As is usual fare, we’ll also be looking at the tweets from DIY investors and close out with chatter from the Canadian investor forums.

Fee-ling the Pinch: US Online Brokerage Fee Wars and the Fiduciary Duty Rule

Turn on the TV, surf the internet, open a newspaper and the one thing dominating the news cycle is Trump. For DIY investors, in the US and potentially here in Canada, however, there are a pair of stories that are probably worth tuning into more closely.

In this week’s blog post, we examine the latest explosive fight between giants in the online brokerage space in the US and the fallout from a price war. But there’s more to the story than just a simple race to the bottom. There’s also the likely possibility that the largest players, such as Schwab, smell blood and sense an opportunity to gain ground on their much smaller (but still sizable) peers.

Here’s a quick recap. US online brokerage fees and commissions have been on the chopping block since last year, in part prompted by competitive dynamics and the announcement from the Department of Labor’s new fiduciary duty rule, which was slated to come in to effect next month, in April. That rule could bring financial advisors into conflict of interest with their clients as it sets higher standards demanding advisors act in the best interest of their clients and not their own or their firm’s.

The tumble in commissions and fees for the biggest asset management firms such as Fidelity, Blackrock, Vanguard and Schwab also impacted their stock prices. Stock prices have waivered since the fees war escalated, and new EPS estimates were impacted by the millions lost in fees from cost cuts hovering at the 30% mark in plenty of cases.

Fidelity, for example, dropped its online stock trading fees by a whopping $3, costs sit now at $4.95/trade. And a few days ago, Schwab lowered its base trade commission to match Fidelity after already lowering its prices in February; other brokerages have followed suit including TD Ameritrade and E*Trade Financial. Firms are saying the price wars are just part of doing business, but Blackrock, at least, acknowledged that their fees were dropping in response to the DOL’s impending fiduciary rule.

For Canadian DIY investors, and discount brokerages, there are several important lessons.

First, Canadian Securities Administrators (CSA) are considering setting similar standards for financial advisors here in Canada. While there is a lack of consensus between provincial regulators as to exactly what a ‘best interest standard’ would look like, recent admissions by TD Bank staff that they put profits and performance ahead of client best interests may accelerate the timetable and will to push these standards into being.

Second, larger online brokerage players are in a very strategic position to benefit from this rule and they can essentially force smaller online brokerages into a very challenging position by lowering standard commission pricing. In other words, the US online brokerage market is an interesting playbook for any large, competitive bank-owned brokerage to emulate.

Finally, although the US and Canadian markets may be different, there are still fundamental economic forces at play. Canadian DIY investors will, like their US investor counterparts, be drawn to better perceived value. One of the reasons Schwab has been able to withstand (and in some cases instigate) a fee drop is because beyond lowering commissions on trading, they’ve also expanded the selection of commission-free ETFs, introduced a robo-advisor service and provided other advisory services to clients.

For the full analysis on how the fee wars and regulatory shifts could influence the Canadian online brokerage marketplace, click to read the blog here.

Online Security for Canadian DIY Investors: How to Stay Safe While Trading Online

As part of Fraud Awareness Month, we continue our look into how DIY investors can better inform and protect themselves about online fraud when trading online.

In our most recent blog post, we take a deeper dive into the world of online brokerage security guarantees and what they do (or don’t) cover and what they require DIY investors to do to qualify.

Fraud is kind of a big deal

Fraud has grown to epic proportions in the last decade, becoming a local, national and international security concern. Worldwide costs of cybercrime are estimated to run between $375 billion and $575 billion annually. In Canada, recent survey results show that companies here lose an average of about $6 million with every data breach.

For Canadian discount brokerages, there hasn’t been any major public, large scale breach that’s made headlines. Rather than become a news story, however, the financial services industry has started – albeit slowly – to adopt a variety of good practices to keeping clients safe. One such approach that is favoured by many in the tech community is two factor authentication (TFA).

Two factor authentication essentially ads an extra step to the traditional user name and login in which a security code (or secondary ID source) is used to confirm identity. Interestingly, only a handful of Canadian discount brokerages do offer this, but it is increasingly getting attention from IT departments across the Canadian brokerage community as a feature which could offer a more robust approach to security.

Details matter

Like most insurance policies, the devil is in the details. For Canadian online brokerages offering up a security guarantee, we found it particularly interesting that there were many different approaches and instructions given to DIY investors regarding online security.

Aside from some of the more well-known preventative measures, such as not sharing a password with another person or using a public computer to log into a trading account, there were other measures, such as ensuring you have an up to date anti-virus, logging out after every session AND closing the browser or sharing a password with an account aggregator (such as Mint) that could invalidate the security guarantee.

Perhaps the best suggestion to address possible fraud is to regularly and frequently check account status for any suspicious activity. Discount brokerages, such as BMO InvestorLine and RBC Direct Investing, stipulate that clients must report a breach within five business days of receiving a monthly statement. For the buy and hold crowd, this means taking the effort every month to check what’s happened on every statement.

The biggest takeaway from looking at the different online security guarantees offered by Canadian discount brokerages is that the brokerages do put quite a bit of responsibility for security on clients themselves so if the security guarantee is a ‘selling point’ for any brokerage, make the effort to check what’s required to comply before getting going.

Discount Brokerage Tweets of the Week

The conversation on Twitter this week highlighted the special role that it plays as a customer service tool for DIY investors. Mentioned this week were BMO InvestorLine, CIBC Investor’s Edge, Questrade, Scotia iTRADE & TD Direct Investing.

From the Forums

Hard lessons

Some good advice we could all heed out of the forums this week: “Never bet with money you’ll regret losing” sent out to one young investor who lost $6K in the past year with risky investments . . . hopefully a lesson you only learn to learn once . . .

ETF or e-Series

The ever-popular debate continues for DIY investors looking to stretch the most value out of their investment dollar. In this post from RedFlagDeals’ investing forum, users chime in on whether TD e-series or Questrade’s commission-free ETF buying would be the better bet.

Into the Close

Another sure sign of spring being just around the corner: losing an hour of sleep for daylight savings ending. For the traders out there it just means one less hour to wait to get back into the swing of things. Have a great (shortened) weekend!

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Discount Brokerage Weekly Roundup – March 3, 2017

Crazy real estate, crazy IPOs, crazy politics, crazy Oscars, crazy Amazon outages and one very crazy sprint to the RRSP contribution deadline. Not a bad way to ring in the third month of 2017. There’s certainly no shortage of items pulling DIY investors’ attention in every direction this past week and perhaps no coincidence that Canadian discount brokerages are trying to capitalize on the increased attention investors are paying to the market by making some ‘bigly’ moves of their own.

In this week’s roundup we take a look at the latest collection of discount brokerage deals that DIY investors can choose from and how different brokerages are working to stay on the radar of those investors. Next we take a look at the big news story for investors – the Snapchat IPO and whether investors will be over it or all over it.  From there we take a look at the latest online brokerage tweets of the week as well as a couple of interesting posts from the investor forums.

New Deals Roundup

With stock markets flirting with new all-time highs, investor sentiment towards getting into the markets has clearly thawed. Investment capital is flowing again and there’s no better indicator of that than the excitement and hype that was the ‘snapchat’ IPO. Another interesting indicator, however, is the number of Canadian discount brokerages offering up promotions or deals.

Heading into the new month, almost all Canadian discount brokerages, with the exception of two (Interactive Brokers Canada and Laurentian Bank Discount Brokerage) are offering some kind of incentive offer to attract new clients or new assets from existing clients. In total, we’ve spotted 30 deals that are being actively advertised or publicly promoted.

Breakdown of Canadian discount brokerage deals for March 2017.
Breakdown of Canadian discount brokerage deals for March 2017.

While most brokerages offer up the standard transfer fee coverage, this category of deal makes up roughly one third of the offers out there. The rest are a mixture of commission rebate offers, cash back promotions or some other kind of promo.

Although no new deals technically hit the wires at the outset of the month, there was some activity in the final days of February which helped put a little spring in the step of the deals activity heading into March.

The good news from two brokerages came in the form of deal extensions. Both Qtrade Investor and Desjardins Online Brokerage extended their offers a little further into 2017. In the case of Qtrade Investor, their cash back offer was extended to mid-March. For Desjardins Online Brokerage, their popular 1% commission-rebate offer has been extended out to almost the end of April (April 28th).

Scotia iTRADE was the other Canadian discount brokerage to ramp up the deals activity with the launch of their VISA gift card offer that coincided with the launch of their new front-facing website. The deal itself offers between $50 and $500 for deposits ranging from $25,000 to $1,000,000+.

Overall, Virtual Brokers is leading the pack with six different offers in play followed by Scotia iTRADE which is now offering up five. Interestingly, the Scotia iTRADE site special offers section currently is displaying only two offers, however links to the deals (shown in the deals & promotions section tables) do point to the live offer pages.

As we head further into March, however, it won’t be just the number of deals that makes the difference but also the visibility of those offers.

TD Direct Investing, for example, does not have as many deals going as their peers but has increased their advertising presence – including front page newspaper ads and increased online advertising – in a bid to get their deal or brokerage noticed. It will be interesting to see how their counterparts, such as RBC Direct Investing who doesn’t have a commission-free or cash back offer (they do have a ‘points’ related offer for existing RBC clients) or CIBC Investor’s Edge (who does have a very competitive offer) elect to respond in the sprint to income tax refund season.

From the Blog: Oh SNAP! An IPO like no other?

It may have taken a couple years to get here, but the biggest threat to Facebook’s dominance in the social media space successfully IPO’d this past week and now has a market cap of $34B US.  From a startup in 2010 to public company in 2017, Snapchat – or more formally Snap Inc, debuted on Thursday to a very warm reception.

Screenshot from the opening of SNAP at NYSE.

Despite all of the hype leading up to the IPO, there were lots of investors – mainstream investors in particular – that had to wait until shares went live on the open market in order to get a piece of the action.

Only time will tell if this millennial phenom can sustain the imagination of investors, advertisers and the very fickle user base of younger technophiles.

In a blog post this week, we took a look at the lead up to the Snapchat IPO and add a bit more colour to a story that is bound to have investors of all ages debating whether SNAP is a hit or is just hype. Click here to read more.

Fraud Prevention Month

March is the official month of fraud awareness and prevention. For DIY investors, the world of investing can be a dangerous place. From ‘hot tips’ to the threats of being hacked, there are numerous risks that all investors would be wise to understand and properly prepare for.

Stay tuned this week as we launch an interesting comparison of the different fraud protection measures currently in place at Canadian discount brokerages and what DIY investors can do to better protect themselves against fraud – including evaluating the security of their online brokerage.

Discount Brokerage Tweets of the Week

Lots of chatter as DIY investors slid into the RRSP contribution deadline this week. Mentioned were BMO InvestorLine, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Closing time

Break ups are hard. But for one DIY investor, who chronicled their exit from Virtual Brokers, the process was not as simple as it seemed. Click here to read the reddit post on how it all went down.

Down to the Wire

The procrastinators for RRSP contribution deadlines might be able to relate to this post from reddit’s Personal Finance Canada section. One user who was close to the deadline was looking for a quick route to open an online brokerage account for an RRSP and was considering Questrade but was up against a few hurdles for just how long it would take to get funded. Read on to find out the play by play heading into the contribution deadline.

Into the Close

Well if there was one lesson from this week, it’s to expect the unexpected. Good tip for traders heading into the weekend as chatter of interest rates and more fallout from scandals from the US await. So, on that note, have a great weekend and for a bit of schadenfreude, here’s that Oscar moment that is so hard to watch but so hard not to.

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Discount Brokerage Deals & Promotions – March 2017

March is finally here. With the promise of spring ahead of us and the RSP deadline now behind us, attention is going to shift to tax season and where, how and with whom those refunds will be invested.  The great news for DIY investors is that there are still lots of promotional offers to choose from when looking at potential Canadian discount brokerage deals, so there’s no shortage of options.

This month we kick off with a whopping 29 offers from 13 different discount brokerages. Almost all Canadian discount brokers have some kind of promotional offer (except for Interactive Brokers), even if it is just a simple transfer fee coverage offer. Like all good things, however, several of the discount brokerage deals offered this month have a particularly short shelf life expiring during or at the end of March. So, while it has been possible to see what offers might have launched through the RSP deadline, there’s a good probability that many of these deals won’t be around for the rest of the year or even until next year.

Read on to get the full breakdown of expired, extended and new offers to hit the tape this month. Of course if there are any offers that you spot or know of that other DIY investors would find useful, let us know in the comments section below.

Expired Deals

After having received a minor extension to meet the RSP contribution deadline, the RBC Direct Investing Rewards points offer officially expired on March 1st.

Extended Deals

There’s nothing like the word ‘extension’ to put a smile on the faces of procrastinators everywhere. Fortunately, two offers managed to stick around just a little while longer.

The first extension is from Desjardins Online Brokerage who extended their commission rebate offer through to April 28th. Next, Qtrade Investor extended their cash back offering until March 15th. See the table below for more details.

New Deals

Rolling into the new month, there were technically no new offers announced at the very start of March. In late February, however, Scotia iTRADE launched a new Visa card (cash back) deal that coincided with the launch of their new website. Although the offer itself didn’t appear in the promotions section at the time of writing, the link to the offer was live on their site.

Visa card values range from $50 to $500 for deposits that range from $25,000 to $1,000,000+. See table below for more details.

Discount Brokerage Deals

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

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion Type Time Limit to Use Commission/Cash Offer Details Link Deadline
Jitney Trade A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open 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, 2017
Open and fund a new registered account at Virtual Brokers with at least A) $5,000; B) $25,000; or C) $50,000+ in new assets and you may be eligible to receive A) $30; B) $50; C) $100 cash back. Use promo code RRSPCB2017 when signing up. Be sure to read terms and conditions for full details. A) $5,000 – $24,999 B) $25,000 – $49,999 C) $50,000+ A) $30 B) $50 C) $100 Cash back will be deposited just after October 31, 2017 RSP cash back bonus April 30, 2017
Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 2 months of commission-free equity trading and a $250 USD/mo credit towards Edge Trader Pro for 2 months. Use promo code 2MFREE2017 at sign up to qualify. Be sure to read full terms and conditions for details. $5,000 2 months commission-free equity trading + $250 USD/mo platform fee rebate. 2 months 2 months free trading April 30, 2017
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatFlex 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 April 28, 2017
Open and fund a new account with Virtual Brokers with at least $10,000 and you may be eligible to receive a commission-credit of up to $10,000. Use promo code 10K2017 at sign up to qualify. Be sure to read terms and conditions for full details. $10,000 Up to $10,000 in commission credits (@ $9.95 per trade) deadline to use trades March 31, 2017. Commission rebates to be offered in January 2018. $10,000 Commission Credit Offer March 31, 2017
Open and fund a new account by March 31st with at least A) $20,000 or B) $100,00+ and you may qualify to receive up to either A) $500 or B) $1000 in commission reimbursements. Be sure to read terms and conditions for full offer details. A) $20,000 – $99,999 B) $100,000+ A) up to $500 commission reimbursements B) up to $1000 commission reimbursements 90 days National Bank Direct Brokerage Cash Back Promotion March 31, 2017
Open and fund a new account at TD Direct Investing with at least A) $25,000; B) $50,000 or C) $100,000+ and you may be eligible to receive A) 50; B) 100 or C) 200 commission-free trades. Be sure to read terms and conditions for full offer details A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000+ A) 50 commission-free trades (max value: $500) B) 100 commission-free trades (max value: $1000) C) 200 commission-free trades (max value: $2000) April 28th, 2017 Commission charges will be credited the month following when the charge was incurred. TD Direct Investing 200 Commission-free Trade Offer March 31, 2017
Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,000 or D) $250,000+ and you may be eligible to receive A) 75; B) 150; C) 200 or D) $250,000+ in commission-free trades. In addition, new clients will also receive FlightDesk active trading platform free for 90 days. Use promo code W17FT when signing up to be eligible. Be sure to read terms and conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000+ A) 75 (max value: $749.25) B) 150 (max value: $1498.50) C) 200 (max value: $1,998) D) 250 (max value: $2,497.50) 90 days Winter 2017 Free Trade Offer March 31, 2017
CIBC Investors Edge Open and fund a new account at CIBC Investor’s Edge with at least A) $50,000 or B) $100,000 and you may be eligible to receive A) $200 or B) $400 in cash back. Also, individuals who setup a regular investment plan may also be eligible to receive 50 commission-free equity trades. Be sure to read terms and conditions for more information. A) $50,000 – $99,999 B) $100,000+ A) $200 B) $400 +Bonus 50 commission-free trades for setting up Regular Investment Plan. Cash back will be deposited within 30 business days after account funding. Commission-free equity trades good for 60 days after setup of Regular Investment Plan. Cash Back & Free Trade Offer March 31, 2017
BMO InvestorLine Open a new qualifying account with BMO InvestorLine, and fund it with at least A) $100,000; B) $200,000 or C) $300,000+ in net new assets and you may be eligible to receive A) $200; B) $400 or C) $750 cash back. Use promo code PROMO750 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer. A) $100,000 – $199,999 B) $200,000 – $299,999 C) $300,000+ Cash back bonus A) $200 B) $400 C) $750 Cash back will be deposited the week of November 6, 2017. 2017 Winter Campaign April 2, 2017

Expired Offers
Open a new account with HSBC InvestDirect and you may be eligible to receive up to 50 commission-free North American equity trades. Be sure to read terms and conditions for full offer details. n/a 50 commission-free North American equity trades 60 days HSBC InvestDirect Cash Bonus Promo March 3, 2017
Open and fund a new account with Qtrade Investor with a deposit of at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1,000,000 or more and you may be eligible to receive a cash back bonus of A) $25; B) $50; C) $100; D) $250; E) $500 or F) $1,000. Be sure to read terms and conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+ A) $25 B) $50 C) $100 D) $250 E) $500 F) $1,000 Cash back will be deposited by July 31, 2017. Qtrade Investor Cash Back Bonus March 15, 2017
Open and fund a new account or fund an existing account at Credential Direct with at least A) $15,000; B) $50,000; C) $150,000; D) $500,000 or E) $1,000,000+ in new assets and you may be eligible to receive A) $75; B) $125; C) $200; D) $500 or E) $1,000. Use promo code CASH2017RSP when signing up. As an added bonus, Credential Direct will donate an amount equivalent to 10% of the bonus paid out to United Way. Be sure to read terms and conditions for full details. A) $15,000 – $49,999 B) $50,000 – $149,999 C) $150,000 – $499,999 D) $500,000 – $999,999 E) 1,000,000+ A) $75 B) $125 C) $200 D) $500 E) $1,000 Cash back will be deposited week of October 9, 2017. Credential Direct Cash Back Promotion March 16, 2017
Last Updated: Mar. 17, 2017 17:35 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 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade tbd
BMO InvestorLine 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 June 30, 2017

Expired Offers
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit 30 days none none
Last Updated: Mar. 2, 2017 00:15 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 RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details 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
Transfer $25,000 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 $25,000 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 to Virtual Brokers and they may cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo tbd
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
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees $135 $25,000 Transfer Fee Rebate none
Disnat 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 DisnatFlex. See details link for more info. $150 $50,000 Disnat 1% Commission Credit Promo April 28, 2017

Expired Offers
Last Updated: Mar. 2, 2017 00:25PT

Other Promotions

Company Brief Description Minimum Deposit Amount Required Details Link Deadline
Credential Direct has partnered with Trend Micro to offer 50% off Trend Micro Titanium Internet Security. Use code “TrendCF” at checkout. n/a Trend Micro Special Offer Code none
Disnat 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
Disnat Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details. $1,000 Broker@ge 18-30 Promotion none
Scotia iTrade Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details. $1,000 StartRight Free Trade offer none
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1,000,000+ and you may be eligible to receive 50 commission-free trades plus A) 5,000; B) 7,500; C) 15,000 or D) 20,000; E) 25,000 or F) 50,000 travel points on an eligible Scotia travel points credit card. In addition, new clients will also receive FlightDesk active trading platform free for 90 days. Use promo code W17RP when signing up to be eligible. Be sure to read terms and conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000 – $499,999 E) $500,000 – $999,999 F) $1,000,000+ Scotia reward points offer March 31, 2017
Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) and you may be eligible to win a $250 gift card to the Apple store. Use promo code 250AGC2017 during sign up to be eligible. Residents of Quebec are not eligible for this contest. Be sure to read terms and conditions for full details. $1,000 (Classic Commission Account) $250 Apple Gift Card Draw April 30, 2017
Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) or $5,000 (for the Commission Free Trading Account) and you may be eligible to receive a one-year subscription to access 5i Research. Use promo code 5iVB2016 when signing up. Be sure to read terms and conditions for full details. $1,000 (Classic Commission Account); $5,000 (Commission Free Trading Account) 5i Research Offer March 31, 2017

Expired Offers
Last Updated: Mar. 2, 2017 00:15 PT
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Discount Brokerage Weekly Roundup – February 24, 2017

Spring may still be a month away but there are many who’ve already had more than enough of winter. Of course, change is certainly the theme for Canadian discount brokerages as their new reality is one in which they will have to become better at managing it and demonstrating that they can pull it off without a hitch.

In this week’s roundup we take a closer look at one Canadian online brokerage that unveiled a major change to its front-facing website earlier in the week. From there we’ll take a look at a recent evolution by the parent of another popular online brokerage as they introduce Canada’s latest robo-advisor. As usual, we’ll close out with the latest chatter from DIY investors on social media and in the investor forums.

Scotia iTRADE website gets a major overhaul

This past week, after what likely involved many conversations about the finer points of typography, colour palettes and ‘user experience’, Scotia iTRADE unveiled their new public-facing website.

While we were given an early look at the new website, now that the site has gone live we can finally shine a brighter spotlight on the website itself, what Scotia iTRADE hopes it will achieve and what the new site means for DIY investors and iTRADE’s competitors.

Online trading continues the tradition of change

Ever since online brokerages hitched their wagons to the world of internet trading, there has been a constant tension between the world of finance and the world of technology.

On the one hand, finance is about stability, trust and continuity. On the other, technology is about change, innovation and taking chances. And, as a result, as money becomes more digital, online brokerage firms are increasingly becoming technology firms first and financial service firms second.

That said – what does the digital shift for finance have to do with online investing? In a nutshell, everything.

When it comes to online brokerage websites, it is clear to see that the first thing that consumers see and interact with will have an important impact on how perceive that particular brand or firm. Are they competent? Are they trustworthy? Do they run a dilapidated front end or do they care about what they do enough to make it look good and function effectively? These are just some of the questions DIY investors would have asked while visiting a branch in person but now ask when they visit a website or use an app.  The website is the digital ambassador for the brand and the longer online brokerages leave their sites fallow, the less inclined anyone will be to pay attention, let alone trust what the experience will be like.

That said, good websites are not cheap to design, build, implement and monitor. In a world where Canadian online brokerages are facing fierce competition from one another, as well as declining commission revenue and possible threats from products/services such as robo-advisors, justifying the spend to redo a website communicates that a brokerage is willing to keep itself in the game and that it can evolve with the times. As in the real world, you have to dress the part.

And, while we have witnessed many of Scotia iTRADE’s peers already go through the redesign process over the past three years, the fact that Scotia iTRADE has finally rolled out their new site signals that they, too, are very much in the Canadian online brokerage race for the long haul – good news, of course, for the long-term buy and hold investors who want to park their money somewhere that is well maintained.

Features, functionality and feelings

Being the weekly roundup, we can’t go into excessive detail on the new site, but given the scope of changes, we can touch on a few interesting elements in their new website and explore a bit about how these changes stack up to the previous site.

One of the most notable changes to the new Scotia iTRADE website is that it has drastically reduced the amount of text on pages in favour of a cleaner, less cluttered look and feel.  As shown in the image below, menu options – at least at the top level menu section – have been simplified from the 9 options to go somewhere down to four key categories: About, Invest, Fees & Education.

While their very meaty dropdown menus still contain quite a bit of information, they are far less overwhelming that the previous design. Also the new menus have clearer quick links to take a user to common information without having to hunt too hard to find it.

Another notable element that has changed in the new website is the removal of the login window at the top of the screen. This might be a sore spot with existing clients who would prefer not to click anywhere to go to a login window, however it was a reasonably good gamble that existing clients would accommodate the change to having to click the ‘sign in’ button to access their account to get access to their own money. The tradeoff (pun intended) is that with the new design, the iTRADE branding stands out and the sight line is cleaner as the page loads.

In keeping with a trend that appears in a number of other online brokerage sites and financial services web pages, icons have found their way onto the homepage. TD Direct Investing and Qtrade Investor’s recent website upgrades, which preceded the launch of Scotia iTRADE’s website, also rely on icons to communicate conceptually relevant information in a way that provides some visual variety to the text and photographs on the page.

 

 

Scotia iTRADE has divided the icon section into information for new clients and existing clients, placing what are likely the most popular pieces of information to either visitor at the very top of the list of icons displayed.

 

 

Lastly, the new website is also notably more diverse and colourful in comparison to its predecessor.

In keeping with a trend in Canadian financial services firms towards embracing a more diverse view of what a ‘DIY investor’ should look like, the imagery selection features many more women, investors of varying ages and ethnicities. Additionally, although the new website makes extensive use of stock images, the choices of outfits and settings of the models are more visually striking yet approachable than the previous choices of black & white photographs with red accents.

Having opted to design a responsive website for a mobile-driven world, Scotia iTRADE is clearly banking on a future in which those who want to access their website will do so from a variety of devices. The decision and execution on going the responsive route are not without their own challenges either.

As can be seen from the image above, there are still kinks to be ironed out – such as the copious amounts of whitespace in one of their most popular sections linked to commission pricing. Because mobile design likes to stack elements vertically, there are a number of examples on the new website where how information gets presented requires figuring out the unique challenges that a responsive design environment poses.

Making it happen

Ultimately, done is better than perfect. Replacing a website is a significant undertaking and not without it its risks. So, for an online brokerage to invest in an upgrade to their website – especially on at the size as scope of the Scotia iTRADE site, it is encouraging sign that Scotia iTRADE feels confident they will be in the online brokerage race for some time.

The lack of immediate public outcry or praise from DIY investors means that Scotia iTRADE can count this launch as a win. From a user experience point of view, the new site is simpler to navigate, easier to find information and more accessible.

For DIY investors, while the important features and pricing haven’t changed, it is encouraging that financial service firms understand the value in being responsive to consumer expectations and are shifting to make their product offering easier to understand.

Of course, it will be particularly interesting to monitor how Scotia iTRADE intends to keep their brand fresh and engaging to DIY investors in this new digital reality. As all online brokerages have come to learn, the digital first impression will almost certainly become what the next generation of DIY investors will use to determine whether they are in the right place or not.

On our radar

Earlier this month, Qtrade Financial (parent to Qtrade Investor) entered the robo-advisor (or digital advice) pool with their own new service called Virtual Wealth.

While the roll out is still in its early stages, Qtrade Financial is deploying a product in an already crowded space.

With over a dozen firms already in the fray, it will be interesting to see what VirtualWealth does to distinguish itself from its competitors – many of which are either startups or the products of deep-pocketed banks and to see what kind of splash it attempts to make to gain awareness and mindshare in this space.

On a more curious note, the mindshare piece may be a bit of an uphill battle – at least at first. The branding decision to go with VirtualWealth could present some challenges as online brokerage, Virtual Brokers, has largely come to be associated with the ‘Virtual’ tagline in the Canadian online investor market.

That said, Qtrade Investor is no stranger to a little bit of confusion. DIY investors on forums still routinely confuse Qtrade Investor with Questrade, despite having almost two decades to distinguish these firms from one another.

Ultimately, naming choices aside, succeeding will come down to more than just who wears it better.

In an already crowded field, the website for VirtualWealth feels at home with a clean and modern design that leans on elements from Qtrade Investor’s recent website refresh. This is clearly not their first rodeo and despite being a new product line, they don’t seem out of place.

Also, there’s a noticeable continuity between branding elements on the Qtrade Investor site and the new VirtualWealth site. And, while subtle, these elements will be very important for VirtualWealth to leverage the strong brand reputation of Qtrade Investor and Qtrade Financial as established but innovative financial services providers. This latter point is especially relevant as the ‘startup’ style robo-advisors have little to no track record to trumpet and thus will have an even more difficult time pricing their offering higher than that of the competitive rates VirtualWealth is entering the market with.

Discount Brokerage Tweets of the Week

With more DIY investors in the market as RRSP season draws closer to the deadline, the timing for outages could not be worse. This week’s tweets highlight the not so smooth rides. Mentioned are CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE & TD Direct Investing.

From the Forums

Feeling De-Fee-ted

If there’s one thing DIY investors really dislike, it’s probably fees. In this post from reddit’s Personal Finance Canada, one user was looking to get his father a better deal by asking other DIY investors for their suggestions on discount brokerages.

By the Numbers

As a DIY investor, one of the unpleasant realities is record keeping and tax documentation. In this post from the Canadian Money Forum, one forum user is trying to get to the bottom of why the numbers don’t add up on an important tax form.

 

Into the Close

So this week was certainly out of this world. Yes, there are Oscar moments coming up, and probably some great hockey or grim news – but seriously – new planets?! In all the excitement, here’s hoping that we manage to keep ourselves around long enough to enjoy what is a great discovery for humankind. Have a great weekend!

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Discount Brokerage Weekly Roundup – February 17, 2017

One of the most interesting qualities about markets is that they behave like voting machines. Despite the inflammatory rhetoric coming out of Washington, stock markets in the US and Canada have, for the most part, been voting for optimism in the economy. The lesson: trade the chart not the news.

Speaking of lessons, the starting point of this week’s discount brokerage roundup shines the spotlight on one Canadian discount brokerage that seems to be testing the waters of the investor education pool. Next, there’s some exciting news about a bank-owned online brokerage that is setting up to unveil its new public facing website very soon. From there, we’ll take a look the latest developments in the deals & promotions space and report on the chatter from DIY investors on Twitter and the investor forums.

Virtual Brokers Launches DIY Investing Education Seminar

For DIY investors looking to get oriented to the world of investing and online brokerages looking to boost client confidence in taking the investing plunge, there’s no bigger win-win than investor education content. This past week, Virtual Brokers, waded slightly further into the DIY investor education pool by sponsoring an investor education day featuring speakers from 5i Research and the Independent Investor Institute.

The event itself, is scheduled to take place in Markham, on Saturday February 25th and runs from 1pm to 4:30pm. Presenting at the event will be Ryan Modesto, Managing Partner at 5i Research and Ziad Jasani, Founder of the Independent Investor Institute.

This won’t be the first time Virtual Brokers has worked with these two firms. 5i Research currently has a promotional offer with Virtual Brokers that provides VB clients with access to 5i Research’s newsletter service for a year. In the Independent Investor Institute’s case, Virtual Brokers has run webinars with them in the past as well. What is interesting, however, is that both of these firms will be providing investor education content jointly in a live session – a move that Virtual Brokers has not typically undertaken to grow their client base.

Screenshot of Virtual Brokers’ Seminar Landing Page

With the addition of a live seminar, it is clear that Virtual Brokers is continuing with their strategy to build on providing investor education as part of their value proposition to DIY investors. Late last year, Virtual Brokers launched a new investor education focused section to their website that included additional primers on investing topics – something that should be appealing to beginner investors looking for some pointers on the basics of investing.

As mentioned at the outset, educational support for investors is typically a win-win for online brokerages. That said, discount brokerages definitely have a strong incentive to build confidence and enable DIY investors to make their own trading decisions. As individuals trade more, brokerages reap the benefits in the form of commission revenue.

Investor ‘education’ is a mixture of information about investing as well as orientation on how to use features, tools on a particular brokerage’s platform, then there is a hybrid that shows DIY investors how to conduct research on particular brokerages’ platforms.

Currently, investor education seminars and webinars are still provided by TD Direct Investing, Scotia iTRADE, National Bank Direct Brokerage and Desjardins Online Brokerage although there has been a noticeable pullback in the quantity of educational sessions delivered.  That said, Virtual Brokers has clearly signaled an intent to add investor education into what they bring to the table – which is something that will help to differentiate their offering from those competitors who do not.  Moreover, Virtual Brokers has selected two engaging investor education content providers who will undoubtedly encourage interested investors to spend a Saturday afternoon in the company of fellow investors and learn about how to navigate the current investment terrain.

All told, it looks like Virtual Brokers’ latest move might prompt others in the space to up their game which is always good news for DIY investors. Stay tuned.

Canadian Discount Brokerage to Launch New Website

As much as we love to get the scoop on a new story, we’ve got some exciting news about the launch of a new website by one of Canada’s popular online brokerages.

We can’t reveal which online broker it is at the moment but we’ve had a chance to take a sneak peek at their new website and will share an exclusive early look on the SparxTrading.com blog over the next few days.

Be sure to check back or follow us on Twitter where we’ll announce the story when it goes live.

Deals View

With the RRSP contribution deadline (March 1st) just around the corner, there are plenty of deals and promotions for individuals looking to open an online trading account. In what is a sign of the competitive landscape, there are now over 30 promotional offers in play for DIY investors to take advantage of, with almost all Canadian online brokerages offering some kind of incentive to attract new clients or assets.

While there haven’t been any new deals announced, this past week RBC Direct Investing’s bonus points offer, which was originally set to expire on February 15th has now been extended to March 1st. DIY investors were eager to see what, if any, possible other deals RBC Direct Investing would offer however, those interested in a commission-free trade or cash-back offer from RBC Direct Investing will have to continue waiting or look elsewhere for this kind of offer.

Discount Brokerage Tweets of the Week

Exciting times around the discount brokerage world as many investors are kicking the tires on a new brokerage account. Mentioned this week were the most popular brokerages on social media – Questrade, Scotia iTRADE & TD Direct Investing.

From the Forums

Comparing Canadian Online Brokerages

With so many choices for DIY investors to choose from, making a decision ultimately comes down to what people feel is most important to them. This post, from reddit’s personal finance Canada forum, highlights which online brokerages forum users think might be best suited to the poster’s particular needs.

Learning the investing ropes

Everyone has to start somewhere. For one aspiring DIY investor the familiar question of where to begin was raised along with a few eyebrows as to the possible motives for posting on the forum. Nonetheless, this post from the Canadian Money Forum is an interesting look at the community of DIY investors and how many have been helped to get started by the wisdom of the crowd.

Into the Close

Happy family day to everyone outside of BC celebrating this holiday. With markets closed in Canada and the US, this will be a rare opportunity to step back, relax and recharge for the predictably unpredictable week ahead.

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Discount Brokerage Weekly Roundup – February 10, 2017

Did someone say rally? While the Trump news cycle is on full blast, a funny thing has been happening in financial markets in the US and Canada – they’ve been going up. Despite the many sounds of alarm that are being rung by newscasters and analysts everywhere, the fact that financial markets are rallying in spite of it means that investors are clamoring to get into markets, at least for now.

For Canadian discount brokerages, the past week also showcased some very interesting maneuvering. In this week’s roundup, we’ll take a look at one major online brokerage that is banking on international opportunities. Next we take a look at another bank-owned brokerage that is sending one its platforms into early retirement. From there we’ll take a quick scan of what DIY investors had to say on Twitter and round out with a look at chatter in the investor forums.

World Denomination

CIBC Investor’s Edge now appears to have some very grand global ambitions. One of Canada’s big bank-owned discount brokerages took a very bold step with their latest feature: the ability for clients to be able to hold not just US dollars but six other foreign currencies as well. On the list of foreign currencies are Euros, British Pounds, Swiss Francs, Australian Dollars, Japanese Yen and New Zealand Dollars, all of which can be held in both non-registered and registered accounts (except for RESPs).

CIBC Investor's Edge introduces USD trading account
Screenshot from CIBC Investor’s Edge

In a year in which equity markets are sure to be impacted by uncertainty, there are many who are looking to foreign currencies for trading opportunities, so the timing of this new set of features is, for some investors, spot on.

By all accounts (pun intended), this is a major score for CIBC Investor’s Edge and their clients.

Starting first with the fact that adding the ability to settle trades in US dollars in a registered account means that there are no more messy conversion fees to deal with (unless you want to of course). In addition, clients can also receive dividends, interest and other distributions in US dollars – something not all bank-owned brokerages offer the ability to do.

While CIBC Investor’s Edge may not be the only bank-owned brokerage to work in multiple currencies (HSBC InvestDirect enables trades to settle in foreign currencies but does require conversions), they are the only major Canadian bank-owned brokerage to enable clients hold the currency itself in a registered or non-registered account. So, not only can individuals have a USD RRSP, they can also have cash in one of the six other currencies in a registered (or non-registered) account also.

This latest move by CIBC Investor’s Edge will certainly get the attention of their bank-owned brokerage competitors as well as independent brokerages, most of whom do not offer currencies other than USD to be held in a registered (or non-registered) account. So, in terms of differentiation, this definitely hits the mark.

Another reason why this move is bound to make a splash is because there are no extra fees associated with the multi-currency account – again not something other Canadian brokerages are offering for free.

Over the next few weeks there will almost certainly be more chatter and clarity that emerges as savvy DIY investors digest how to take advantage of the volatility in the US markets as well as in markets across the world. In the meantime, there are a few questions that are bound to arise now that CIBC Investor’s Edge is wading into the world of multi-currency accounts, such as whether the minimum amount to waive administration (or account maintenance) fees being charged on the account would be in the currency of the account (i.e. 25,000 euros to waive administration fees in a registered account) or the Canadian equivalent.

Of greater intrigue, however, is that if multi-currency accounts are a reality, does this then set the stage for CIBC Investor’s Edge to open up more formally to international trading? A speculator can certainly wish.

Screened Out

Retirement is on the minds of lots of folks at this time of year and for many it’s still a long time away. But, for Scotia iTRADE iPad app retirement is right around the corner.

After announcing in late 2016 that the iPad app would be discontinued some time in early 2017, this past week on social media Scotia iTRADE broke the news to a disheartened user the app’s days are quite numbered.

To @MomtoNikoP’s point – it’s hard to believe that the app itself has been around for about 4 years already. Unfortunately for technology, that is quite a long time.

Of course, in dealing with older technologies or deciding how best to adapt to changing needs of clients, online brokerages have to continuously wrestle with just where to allocate their technology resources. Sadly for the tablet app, it didn’t make the cut.

While there is appeal to using a tablet, perhaps this move by Scotia iTRADE is a signal of the realities of DIY investor behaviour. One of the most important benefits of trading or researching stocks on a tablet is screen real-estate. Rather than having to squint, pinch and zoom, researching charts or reading quarterly reports is easier on the eyes on a tablet than on most smartphones. The catch is, however, most people have smartphones and would rather use those devices than tote around or hold up a bulky tablet.

Also from a user experience point of view, investors ‘on the go’ that want to monitor, and even execute, transactions can work with data in small tables and can probably get away with using a smartphone. If you’re likely to be at a place where you can use a tablet, there’s a good chance you can probably use a laptop. Also, laptops are now lighter and more powerful than they’ve ever been, so for the DIY investor that needs a bigger screen, the ability to use a keyboard and a mouse make relying on the tablet a hard sell.

So, while there are users of tablet-specific apps that might relish in being able to go seamlessly from device to device, the latest move by Scotia iTRADE shows that tablet-specific apps might end up getting the swipe left as most DIY investors choose between either laptop, desktop or smartphone.

Discount Brokerage Tweets of the Week

This week some DIY investors found themselves having to sort through technology glitches – and ultimately let people know about it on Twitter. Mentioned this week were BMO InvestorLine, CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing & Virtual Brokers.

From the Forums

Deals in Motion

For the deal hunters among us, this latest thread on Red Flag Deals throws some love our way and also shows that there are more than just the advertised offers we have listed in our discount brokerage deals section – there are sometimes targeted offers in play too.

DRIP by DRIP

Dividend reinvestment plans (aka DRIPs) are a popular strategy for many investors to build wealth over the long term. In this post, also from Red Flag Deals, one investor was learning some important lessons on how dividends get issued and reinvested in the wild.

Into the Close

That’s a wrap on another crazy week. For those on top of this rally, there’s definitely a reason to cheer heading into the end of the week. Of course, how long to hold on for is anybody’s guess at this point – to quote a famous frog, ‘it’s not easy being green’. Have a great weekend and stay warm!

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Discount Brokerage Weekly Roundup – February 3, 2017

It’s hard to believe a whole month has gone by in 2017. With the news cycle dominated by the ever unpredictable movements of the US president, speculation is as rampant as ever. For Canadian online brokerages, however, getting attention is far more difficult than just sending out a tweet at odd hours. Nonetheless they’re still finding a way to make some headlines.

This week there’s lots on the docket. First we take a look at some ‘yuge’ news to come out of the deals arena, as one online brokerage definitely went ‘bigly’ on the incentive offers for RRSP season. From there, we’ll cover the headlines made by two online brokers and their respective awards for service and price that were announced this past week. In keeping with the influence of the US on the news cycle, one online brokerage caused a ‘tremendous’ stir by repealing and replacing their standard commission rates with something much lower. And, as is usual fare, we’ll take a look at what DIY investors were chatting about on Twitter and in the investor forums.

New Deals & Promotions

It’s a new month and while winter still might be here (amiright Vancouver?), February’s deals and promotions at Canadian discount brokerages are red hot.

At the outset of February, Virtual Brokers made a very big splash by launching four deals at the beginning of the month, including the mind-boggling $10,000 commission-rebate offer that dwarfs anything put forward by other Canadian brokerages in recent memory. After factoring in the deals that were retired and the inclusion of credit card points related special offers, there are now at least 30 incentive offers from Canadian brokerages.

Looking back on January, there were six brokerages that announced offers, primarily timed around the RRSP season. While most were commission rebate offers, there were also a pair of cash back incentives and even a couple of credit card points offers for good measure.

Despite almost all brokerages offering some type of offer, there was one notable exception – Interactive Brokers. Perhaps because they already enjoy having significant appeal to the trader community, Interactive Brokers doesn’t need to work as hard to attract this highly prized category of the DIY investor market. Even so, with no shortage of other Canadian brokerages who are willing to try and get a share of those in the market for an online trading account, Interactive Brokers may want to reconsider their approach here in Canada in order to give them more visibility in a very crowded space.

Virtual Brokers, thanks to the launch of its recent flurry of deals now leads Canadian brokerages with 6 offers followed by Questrade and Desjardins Online Brokerage, each of whom has four. Even though Virtual Brokers saw some turnover, it’s clear they’re doubling down efforts heading into the RRSP deadline, with promotions and marketing ramping up significantly.

In terms of the deals themselves, transfer fee coverage remains a staple at almost all discount brokerages, followed by the commission-credit and cash back category. The least popular category, interestingly, remains the referral bonus with only three brokerages having an advertised program in place.

For DIY investors looking at opening an online trading account, be it for an RSP account, a TFSA or just another trading account to put in that income tax refund, this year competition amongst brokerages means a great selection of offers. And while a deal may not be the only reason to select a brokerage, the market has clearly shown that it can be the make or break factor in such a competitive race.

Accolades for Service & Pricing

For a pair of Canadian online brokerages, February is off to a great start.

At what is the busiest time of the year for Canadian discount brokerages, financial services research firm Surviscor released the results of two assessments of the Canadian online brokerage industry.

The first, an analysis of customer service quality known as the ‘Service Level Assessment Review’ found that Qtrade Investor handily outperformed its competitors, both bank-owned and independent, in terms of response times to client service inquiries.

With a score of 96% Qtrade Investor was more than 15 percentage points ahead of the second place Desjardins Online Brokerage (81%) and third place Scotia iTRADE (79%).  This assessment used 170 ‘mystery shopper’ service enquiries per firm and measured how quickly each firm responded as well as a number of other items including accuracy of response and whether a firm met its own response guidelines.

While Qtrade Investor’s strong customer service scores are in keeping with its history of strong performance in this category, it was also interesting to note just how far apart Canadian online brokerages were in terms of their scores on this assessment.

For example, the difference between the top rated Qtrade Investor (who scored 96%) and bottom rated Laurentian Bank Discount Brokerage (who scored 4%) is almost unbelievably wide. Even so, the number of firms (9) who scored less than or equal to 50% was also staggering, especially because it contained four major bank-owned online brokerages as well as firms such as Questrade (who scored 15%) who have demonstrated a strength in responding to clients across social media channels and far flung places such as reddit.

Without knowing the exact scoring methodology or how the results were gathered, however, it is difficult to put the numerical values into context and as such, while these figures likely do measure some component of the online customer service enquiry process, they should also be taken with caution.

The second Surviscor assessment which was announced was this week  was for the ‘Cost of Services’ award given to Virtual Brokers.  While the press release about this reward was published by Virtual Brokers, it was interesting to note that this particular survey simulated the cost of trading by looking at over 13,000 trades across brokerages and found that Virtual Brokers came out on top.

Further details about this survey or its methodology were not available so the results should be treated with caution however it is clear that as competition between brokerages heats up, awards and recognition for areas of strength are going to be increasingly a part of the marketing and advertising strategies of all Canadian brokerages who receive them.

Major US Online Brokerage Cuts Commissions

What a difference two dollars can make. Charles Schwab, one of the largest online brokerages in US with almost $3 trillion in assets, announced this week that they were lowering commission prices down to $6.95 per trade from $8.95. In doing so, Schwab caused a massive sell off in the stock prices of other publicly traded online brokerages such as E*Trade Financial and TD Ameritrade as markets anticipate that these firms will likely have to follow suit and lower commission prices (and therefore revenues) to compete.

The latest move is an interesting case study for industry observers as Schwab’s business model has evolved in the low interest rate, low volatility environment to rely on managed wealth fees as a significant source of revenue rather than trading commissions. Currently less than 11% of net revenues are from trading.

In the Canadian online brokerage landscape, this move might inspire a large enough player (such as a bank-owned brokerage) that has both a strong managed wealth business as well as an online brokerage component to disrupt the market as a whole with a commission price drop from the $9.95 standard.

Internal data from SparxTrading.com already indicate that for CIBC Investor’s Edge, there has been a dramatic shift investor interest away from higher cost alternatives because of CIBC’s commission price cut to a standard commission of $6.95.

The fallout from the latest move by Schwab will be interesting to monitor, in particular because it puts tremendous pressure on firms such as E*Trade Financial and TD Ameritrade to respond. Additionally, it could very well signal to Canadian firms that yet another round of commission-lowering is on the horizon, especially if the largest players at the table decide like their US counterparts, to aggressively gain market share.

Discount Brokerage Tweets of the Week

Lots of chatter on Twitter this week – there’s good, bad and even a little ugly. Mentioned this week were BMO InvestorLine, CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing & Virtual Brokers.

From the Forums

Glitch Happens

This past week, a user on reddit posted a notice of a technical outage on Questrade’s platform. It was an interesting thread insofar as the author seemed to entertain switching because of a glitch however other users chimed in to provide alternate perspectives.

Platform for Trading

A familiar question comes from this recent post from reddit’s personal finance Canada section with a user looking for a trading platform/brokerage to trade ETFs. Worth a read for those in a similar boat.

Into the Close

That’s a wrap on yet another crazy week. Fortunately for football fans, the big game takes place this Sunday which might offer just a little sanctuary from the political football that keeps getting tossed around. For those who don’t really care much for football, here is a little something that will hopefully send you into the weekend on an entertaining note.