Scotia iTRADE – Page 41

Posted on August 16, 2013 by user — Leave a comment

Discount Brokerage Weekly Roundup – August 16, 2013

As we officially cross through the halfway mark of August, interest in the markets is picking up on the forums and the discount brokerages are busy planning their September promotions.

In this week’s roundup, I recap the most recent addition to the mobile trading platform reviews; I look at a couple of brokerages gearing up for back to school; I look at which brokerage has made it easier to access registered accounts and finally I round off with some interesting conversation threads spotted on some investment forums.

Qtrade’s Mobile Website Review

This past week, the review of Qtrade’s mobile trading platform was released. Along with a video walk-through of the mobile trading website in action, there is also a review of some of the key features of the website for mobile traders to keep in mind. Interestingly, there was a neat article by Chuck Jaffe of MarketWatch that highlights some of the perils of having access to your trading account on your mobile phone.

Back to School Savings

With back to school on the minds of many parents, several discount brokerages are hoping that some of the savings from all of those back to school sales gets redirected into RESPs.

Throughout the week, Questrade has been trumpeting their latest promo to chip in $50 in free trades when opening a new RESP on TV as well as on Twitter. They weren’t alone, however, with National Bank Direct Brokerage also participating in the RESP reminders earlier in the week.

Access Granted

Scotia iTrade sent out a notice to clients letting them know that it is now possible to withdraw funds from a registered account electronically instead of having to go through a client representative. Accessing the money is a bit of a double-edged sword because while it is more convenient to transfer the money, clients need to be cautious with the transfer of funds and remember the restrictions and/or fees that come with moving money out of certain registered accounts.

On the investing forums

This past week the forum activity appears to have picked up with questions about strategies, new ETFs from Vanguard and options trading. Interestingly there was also a post last week asking about where to find out information about Canada’s best discount brokerage but if you’re reading this article then you already know where to look 😉 Amongst all of the conversations a couple of interesting threads jumped out.

The first was an interesting question was posed on the financial webring forum earlier this month about starting to invest with an advisor. The conversation has turned into a great snapshot of the transition from advisor to do-it-yourself investor for many of the respondents

Another interesting post mentioned the customer service experience when dealing with Questrade over the phone. As unexciting as it may sound, there are many forum posts that have mentioned the challenges individuals have encountered when dealing with their discount brokerage on the phone, with Questrade customer service catching its fair share of heat (see the topic name of the thread for example).

It was interesting to note that someone had a positive experience and then posted something positive about it demonstrating that sometimes doing things well gets noticed. For those interested in learning more about the client service experience at discount brokerages, earlier this summer I did a special piece on Dalbar Inc, a company that specifically measures & works with discount brokerages to improve client experiences via telephone.

That’s it for this week in the discount brokerage space. Hope you all have a great weekend and enjoy what’s left of the summer!

Posted on August 2, 2013 by user — Leave a comment

Discount Brokerage Weekly Roundup – August 2, 2013

As we officially launch into August, there is a lot of “behind the scenes” action that discount brokerages are up to in order to get ready for their busy season in the fall.

This week’s roundup features some updates on current discount brokerage deals, a couple of interesting upgrades to discount brokerage websites that were spotted and reports showing that investor participation in US markets continues to increase and a transaction between the owners of two major online brokerages.

Deal me in, again.

Being the beginning of the month, we have updated the discount brokerage deals section for August. A couple of noteworthy deal extensions were spotted including an extension of the “Refer-a-Friend” offer by Scotia iTrade until the end of August as well as the extension of the commission-free ETF trading offer by National Bank Direct Brokerage (which we cover in depth here) until the end of October.

It’s time to put on makeup; it’s time to dress up right

Two of the major bank-owned online brokerages rolled out some cosmetic improvements to their websites recently in the hopes of making their content more accessible to investors.

The first upgrade was spotted at National Bank Direct Brokerage on their homepage and in their educational sections. The new layout includes a video by their President, Nancy Paquet, as well as improved events listings and an improved link into their education centre. There will be an in-depth look at the improved education centre in a follow-up posting, however the new layout of the investor education center section contains much of their existing material but in a much cleaner and user friendly presentation.

Upgrades to the investor education sections at TD Direct Investing were also recently rolled out. The in-depth feature on this improvement (available here) showcases the improved way in which investors can now find out about and connect to investor education seminars via TD Direct Investing’s website.

With both TD Direct Investing and National Bank Direct Brokerage stepping up their investor education sections, other brokerages that currently provide substantial investor education seminars or content will likely be looking to see how they improve on their offering to try and maneuver around these developments.

Investors Trickling Back In

While it’s difficult to know exactly what retail investor is like given the recent market performance in the US, the data on trading volumes from Interactive Brokers continues to signal improved participation, at least state side. The July figures for trading volumes at Interactive Brokers paint a mixture with trading volume increasing 13% year over year but actually declining 12% compared to June. Margin-loan balances and customer equity showed increases on both a yearly and on a monthly basis.

Posted on August 2, 2013 by user — Leave a comment

TD Direct Investing Upgrades Investor Education Calendar

One of Canada’s largest discount brokerages continues to chip away at improving its website for investors. TD Direct Investing has quietly rolled out the long awaited improvements to their investor education seminar section. As far back as August of last year, we mentioned that something was in the works to improve the delivery of investor education resources however it wasn’t until this summer that the roll out officially took place.

This past year has seen a number of significant changes for TD’s discount brokerage division. In December 2012, TD Waterhouse Discount Brokerage changed its name to TD Direct Investing and the website got a substantial overhaul in the process. One of the laggards, however, was the investor education area, specifically the investor education seminars section. In terms of the new upgrades, the focus appears to have been on improving the user interface and the organization of the content, both of which should enhance the accessibility of this section for self-directed investors.

Improved Content Structure

One of the first noticeable improvements is the structure they’ve provided to their seminar types. Previously, seminars and special events lacked descriptions as well as information on what investor experience level the events were appropriate for. Not having this information made it difficult for investors to determine what a particular seminar was about and whether it was worth attending.

In keeping with the categories they rolled out in December, TD Direct Investing has decided to use the following 3 categories when referring to types of self-directed investors:

New to Online Investing
Experienced Investor
Advanced Trader

Sessions have now been grouped around the anticipated needs of each of these categories of investor (see table below). For example, for those new to online investing, TD Direct Investing has bundled their platform orientation seminars along with their “Introduction to Investing” seminar to allow users to familiarize themselves with the platform.

From a user experience perspective, the combination of the grouping seminars by experience level and providing seminar descriptions will definitely cut down on time spent evaluating and deciding which seminars to attend. As a bonus, it is now also possible to register online for an event as well as see the availability of spots for the session.

New to Online Investing	Experienced Investor	Advanced Trader
Introduction to Investing	Introduction to Options Trading	Active Trader Platform
Introduction to WebBroker	Introduction to Technical Analysis	Advanced Options
WebBroker: Markets & Research	Understanding Margin & Short Selling	Options as an Income Strategy

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Posted on August 1, 2013 by user — Leave a comment

Discount Brokerage Deals & Promotions – August 2013

August Discount Brokerage Deals Overview

The discount brokerage deals activity remains largely in a holding pattern as we move into August. While there were a couple of noteworthy deals that expired in July, the bigger news last month was Questrade’s announcement that they would be re-introducing their unlimited trading offer. Currently Questrade is offering the most promotions of any Canadian online brokerage however with four major promotions set to expire at the end of August and one in early September, there are plenty of opportunities for other discount brokerages to step up their promotion activity. We’ll be watching the chatter closely this month as there are already signs certain discount brokerages are making some interesting moves to improve their existing and potential client experiences.

Expired Discount Brokerage Deals

The major deal that expired in mid-July was TD Direct Investing’s 50 Free Trade offer along with their transfer fee promotion. Our search data shows that there is still some interest in the deal, so there is likely some appetite for this offer still out there. TD Direct Investing, however, rarely ran these kinds of deals in the past so it may be some time before something like it returns.

Extended Discount Brokerage Deals

Scotia iTrade’s Refer-a-Friend promotion has been extended to August 31st.

New Discount Brokerage Deals

Questrade announced the return of their Infinite Trading promotion which offers 3 months of commission-free trading for deposits of $50,000 or more. For deposits between $10,000 and $24,999 they offer 1 month of commission free trading and for deposits between $25,000 and $49,999 new signups receive 2 months of commission-free trading. This deal expires August 31^st, 2013.

Discount Brokerage Deals & Promos

Brief Description	Minimum Deposit Amount	Commission/Cash Offer Type	Time Limit to Use Commission/Cash Offer	Details Link	Deadline
A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform.	n/a	Discounted Commission Rates	none	For more details click here	none
Open a new margin account with National Bank Direct Brokerage before August 31st 2013 and receive a 1% discount of prime for a margin interest rate. Also, commission rates will be fixed at $6.95 for 3 months. Be sure to read the terms and conditions as well as understand the risks associated with trading on margin. Use promo code: “MARGIN2013” when signing up.	n/a – while no minimum deposit is required, you must pass a credit check to qualify	1% of prime rate for margin borrowing $6.95 fixed commission rate for 3 months	Margin rate discount: 3 months Commission rate discount: 3 months	Click here for margin promo details and here for terms and conditions	August 31, 2013
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	none	none	none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account.	$1,000	$50 commission credit (friend) $100 commission credit (referrer bonus)	60 days	Refer a friend	none
Open a new account (TFSA, Margin or RRSP) by August 31st with A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code 100Free95 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.	A)$1,000 B)$10,000	A)10 free trades B)100 free trades	60 days	100 commission-free trades	August 31, 2013
Open and fund a new registered, margin or TFSA account and fund it within 30 days with either A)$10,000 B )$25,000 or C)$50,000 and you will be eligible to receive either unlimited free trading for A) 1 month, B) 2 months or C) 3 months depending on your deposit amounts. You must the code UNLIMITED to qualify. This is open to new and existing clients. There’s lots of fine print so be sure to read the details link.	A)$10,000 B)$25,000 C)$50,000	Unlimited trading (No commissions charged on any trades placed)	A) 31 days B) 62 days C) 90 days	Unlimited Free Trading Offer	August 31, 2013
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:$199.80) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $999)	60 days	Refer A Friend to Scotia iTrade	August 31, 2013
Open and fund a new Scotia iTRADE account with at least $25,000 before September 30, 2013 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code 100FT. See details link for further terms and conditions.	$25,000	100 commission-free trades ($999 value @ $9.99 commission rate)	60 days	Scotia iTrade 100 free trades + FlightDesk	September 30, 2013
Open a new account with National Bank Direct Brokerage before Oct. 31st and the commission rate for equity transactions will be fixed at $6.95 for 6 months. Use promo code: EVENT2013. Since this is unadvertised, you’ll have to call their customer service line: 1-800-363-3511 for full details.	$25,000	$6.95 fixed commission rate for 6 months	6 months	Click here for a low-res version of flyer or here for a high-res version.	October 31, 2013
If you refer a friend/family member who is not already a National Bank Direct Brokerage account holder to them, both you and your friend get a bonus of $100 each. The promotion code “FRIEND” must be used on the account application form. Read the details link for full terms and conditions. Note the maximum referral bonus per client is $1000.	$25,000	$100 referral bonus (referrer) $100 referee (your “friend”)	Payout occurs after 6 months	Share $200 with a Friend Promotion	October 31, 2013
Open a new account (TFSA, Margin or RRSP) and receive 30 days of commission-free trading and one month free of the US Advanced market data package. Use promo code ADVANTAGE when signing up. Offer is open to new clients only. There are a number of important conditions to qualify – be sure to read terms and conditions to the deal.	$25,000	30 days unlimited commission-free trading + 1 month free Advanced US market data package.	30 days	Advantage Promotion	August 31, 2013
Disnat is celebrating its 30th anniversary by offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat30. See details link for more info.	$50,000	$300 commission credit	6 months	Disnat 30th Anniversary Promo	August 30, 2013
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.	A) $50,000 – $249,000 B) $250,000+	A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100	Payout occurs after 60 days (subject to conditions).	Refer-a-Friend terms and conditions can be located by logging into the InvestorLine panel under “account services” or by contacting BMO InvestorLine directly	December 31, 2013
Open a new account or upgrade an existing account with $100,000 and choose to receive either $250 cash back or 2000 Air Miles. Use Promo Code: BONUS250 to receive the cash back offer or BONUSAM (+ Air Miles Collector #) to receive the Air Miles offer. NOTE: There are lots of details/important conditions attached to this promotion. Be sure to read the terms and conditions carefully.	$100,000	$250 Cash Back OR 2000 Air Miles	Payout occurs after 6 months	Air Miles Promotion	September 4, 2013

Transfer Fee Deals

Brief Description	Maximum Transfer Fee Coverage Amount	Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	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
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.	$125	$25,000	Transfer Fee Promo	none
Disnat is celebrating its 30th anniversary by offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat30. See details link for more info.	$150	$50,000	Disnat 30th Anniversary Promo	August 30, 2013

Posted on July 26, 2013 by user — Leave a comment

Discount Brokerage Weekly Roundup – July 26, 2013

It’s hard to believe but July is almost coming to an end. As it rounds out though, there seemed to be a spike in the interest by self-directed investors in asking about discount brokerages. With US stock indices such as the S&P 500 and Dow Jones continuing to push all-time highs, it seems like Canadian investors are taking notice. In this week’s roundup we cover a couple of the news stories on discount brokerages getting dinged for regulatory infractions and take a tour of the discount brokerage conversations in the forums.

Brokerages Behaving Badly

The list of discount brokerages getting dinged for violating market rules continues to grow. This past week the terms of the settlement between the Investment Industry Regulatory Organization of Canada (IIROC) and two different discount brokerages were published and continued to show that breaking the rules isn’t cheap. Since May of this year, over $400,000 in fines (including costs) have been handed out against a number of brokerages including Scotia Capital Inc, parent of Scotia iTrade ($160,000), Questrade ($80,000), Interactive Brokers ($60,000), and JitneyTrade ($100,000).

As part of Jitneytrade’s settlement agreement, they admitted that between February 2011 and February 2012 they:

“failed to implement an appropriate trade supervision system reasonably well designed to prevent and detect violations of UMIR requirements for the size and nature of its Direct Market Access Clients’ business, contrary to UMIR 7.1 and Policy 7.1”

Jitneytrade was fined $90,000 for the infraction and also paid $10,000 in costs to IIROC.

IIROC also published the settlement agreement between itself and Interactive Brokers. As part of that agreement, Interactive Brokers was penalized $50,000 (plus $10,000 to IIROC for costs) for violations of UMIR 7.1 and Policy 7.1 between November 2007 and April 2008.

Opening Remarks

The forums were buzzing this past week with questions about discount brokerage services and comparisons. In particular, two postings on account openings in different forums caught my eye. The two different brokerages in those postings were TD Direct Investing and Interactive Brokers. Interestingly, Interactive Brokers came up in a couple of different threads indicating it was on the minds of more than a couple of different forum users.

In the Canadian Money Forum, the user “2tire2work” posed the question of whether or not he/she should open a TD Direct Investing (TD Waterhouse) account.

Several of the forum users provided insight on where the original poster (OP) could find additional resources to get started and how to tell apart some of the jargon regarding types of fees and commissions. The explanation of management expense ratios (MERs) was well done and an important concept for those with a buy and hold approach to understand. To read the full posting click here.

While Interactive Brokers came up in a couple of different forum discussions this past week, one of the best discussions on using Interactive Brokers came from the RedFlagDeals investing forum. Specifically, the user ‘Error916’ asked the forum users for their thoughts on using Interactive Brokers and what some alternatives would be for discount brokerages offering registered accounts (because Interactive Brokers Canada doesn’t currently support registered accounts).

In particular, a couple of users pointed out the restrictions on Canadian margin amounts as well as the account funding requirements for those considered to be ‘pattern day traders’, considerations that those looking to Interactive Brokers should be aware of. To read the full thread, click here.

That’s it for this week’s roundup. If you would like to check out the other forum links discussing discount brokerages from this past week you can click the links below. Have a great weekend!

Canadian Money Forum: Short Seller Friendly Broker

Financial Webring Forum: Interactive Brokers Thread

RedFlagDeals Investing Forum: Online Brokerages that Allow Norbert’s Gambit

Posted on July 12, 2013 by user — Leave a comment

Discount Brokerage Weekly Roundup – July 12, 2013

In this week’s discount broker roundup, we highlight an article launch, how hard it is for discount brokers to be really, really popular and the beginning of what looks to be a busy promotional battle between discount brokerages for self-directed investors’ new business.

More commission-free ETF info

Earlier this week, part 3 of the series on commission-free ETFs was released. In it, there were some key highlights about the commission-free ETF trading offers at Scotia iTrade and Qtrade as well as some interesting stats on the dominant provider of commission-free ETFs for the various discount brokerages. To read part 3 click here.

Don’t hate me because I’m bountiful

For many discount brokerages, keeping up with compliance is simply a cost of doing business. Failure to keep up, however, usually ends up costing more. So it seems that Interactive Brokers has been growing a little too quickly that they let the paperwork on a few of their clients slip. The US arm of Interactive Brokers got a hard lesson in keeping up with their regulatory requirements from the National Futures Association.

While the $300K fine was a small amount for a multibillion dollar company to absorb, the bigger lesson apparently is that no publicity is bad publicity. In the official response from Interactive Brokers, a company lawyer didn’t pass up the chance to sell the features and pricing that Interactive Brokers. The press release also contained a handily placed plug of their 2013 best online broker award win. Well-played Interactive Brokers.

Discount Brokers Making Attractive Offers

While July is usually when barbeque grills are heating up, funnily enough discount brokerage promotions have also managed to flare up all of a sudden. On the heels of the TD Direct Investing 50 trade offer expiry, Questrade, Scotia iTrade and Disnat all launched additional offers to new or existing clients.

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The biggest launch of discount brokerage deals came from Questrade where they announced they’re giving away iPad minis, commission-free trades, and…wait for it… magnets. It seems like the marketing team from Questrade has launched the promotions war with some big guns. Their 3 months of commission-free trading is certainly going to get the attention of their peers, however the innuendo-filled magnets may not be as ‘attractive’ as they think.

As part of Scotia iTrade’s roll out of their iPad app, they are offering clients one free trade (equity or options) for downloading and using the app. As was mused about earlier in the week in one of our tweets, with all of these touch screen devices now being used for trading, will the incidences of ‘fat-finger’ trades be on the rise?

Instead of playing the free commission game, Disnat is going with the ‘free information and research’ route. Disnat is offering 6 months free access to Michael Campbell’s Money Talks online resources for existing Disnat clients. At the end of the 6 months, subscriptions will cost $9.79 plus any extra charges for other site content (such as certain videos).

Posted on July 8, 2013 by user — Leave a comment

Commission-Free ETF Trading at Canadian Discount Brokerages: A Clever Lure or a Good Deal for Investors? Part 3

In the first two parts of this series we touched on the different types of commission-free ETF trading being offered by discount brokerages and provided several tips for investors to keep in mind when considering these types of offers. (Click here to read part one or here to read part two)

In part three of this series, we compare the three providers currently offering commission-free buying and selling of ETFs (Qtrade, Scotia iTrade and Virtual Brokers) and look in detail at the offers from Qtrade and Scotia iTrade.

In the next part of this series, we will look at the offers from Virtual Brokers and Questrade in detail as well as the lessons learned from researching commission-free ETF offers at discount brokerages.

Comparing Commission-Free ETF Trading Offers

Even though Qtrade, Scotia iTrade and Virtual Brokers have limits on which ETFs are eligible to be bought and sold commission-free, the pool of ETFs offered by each brokerage is still sizeable with 60, 50 and 100 ETFs being offered respectively.

Between these three discount brokerages, there are 132 unique ETFs being offered by 17 different ETF providers. Interestingly, all three discount brokerages offer 30 of the same ETFs commission-free. For investors this means that a discount brokerage’s fee structure may be more of a factor to consider than which ETFs they offer.

Despite there being 17 different ETF providers, most of the funds come from only a handful of companies. In fact, four ETF providers contribute 78% of the commission-free ETFs available at Canadian discount brokerages with BlackRock alone offering slightly less than 50% of all the commission-free ETFs. Horizons, BMO and Vanguard respectively make up the rest of the top four commission-free ETF providers.

We’ll now take a look at the offers from Qtrade and Scotia iTrade in detail. In the next part of this series we’ll look at Virtual Brokers’ offers in detail as well as Questrade’s offer and conclude with important lessons learned from researching commission-free ETFs.

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Posted on July 5, 2013 by user — Leave a comment

Discount Brokerage Weekly Roundup – July 5, 2013

Even though we roll into July on a short trading week, the discount brokerage space managed to toss along several newsworthy items. In this week’s roundup, we look at the US discount brokerages pointing to signs of improved investor enthusiasm, some fine tuning of ETF offers at Canadian discount brokerages, and some extra summertime heat in the form of spirited debates on the forums.

Trading Improving at US Discount Brokerages

Interactive Brokers’ latest trading data came on the same week that discount brokerages Schwab, E*Trade, and TD Ameritrade hit new 52-week highs. Trading data from Interactive Brokers showed an increase of 27% over trading volumes at this point last year and an increase of Daily Average Revenue Trades (DARTs) of 4% over May. The recent patch of market volatility likely gave a bit of a boost to trading numbers, however looking at the 12% y/y growth in customer accounts it seems that more data points to investors, at least in the US stepping back into the markets.

Refresh on Commission-Free ETFs

As part of an upcoming piece looking at commission-free ETF trading at Canadian discount brokerages, we took a deep dive into the actual offerings from Qtrade, Scotia iTrade and Virtual Brokers. While looking at the 100 ETF long list on the Virtual Brokers website, a number of discrepancies were spotted included four ETFs listed that were no longer trading and one ETF that had been duplicated. A few emails back and forth and Virtual Brokers refreshed their list making the following changes.

Gone from the list are:

DENT
HAG
HIF
XRO
XID (the duplicated one)

They’ve been replaced by:

First Asset Canadian Convertible Bond ETF (CXF)
Horizons Alphapro Balanced ETF (HAA)
First Asset DEX Government Bond Barbell Index ETF (GXF)
First Asset DEX Corporate Bond Barbell Index ETF (KXF)
SPDR Barclays Short Term Treasury ETF (SST)

More Heat Coming Towards Questrade

One of the most interesting and popular threads to follow on RedFlagDeals is the “Stay Away From Questrade.” Be warned, however, this is not a place for the faint of heart. There is lots of CAPS LOCK screaming and it is generally the place where many come to vent their frustrations about their experience with Questrade or simply stir the pot about trading with a low-cost brokerage. Again, it’s not for the faint of heart, but one particular post this past week about a user’s experience with shorting a stock serves as an interesting reminder to those who short stocks generally.

The lesson: a discount brokerage can recall a stock at any point for any reason. How a discount broker goes about doing this is variable – some brokerages ask nicely, others less nicely. To wade into the thorny forest that is this thread click here.

Cooler Heads Tackle a Potential DRIP-off

For those curious about Dividend Re-Investment Plans (DRIPs), there was a great exchange (pun intended) in the Canadian Money Forum that highlighted exactly how detailed converting dividends from a US stock can get. At issue: the time of day at which foreign exchange rates get used to calculate conversions of foreign currency dividends. While it may be for the real dividend enthusiast, it is still an informative example of a) a more structured forum conversation that the forum mentioned above and b) how much homework DIY investors really do to find an answer. To read more click here.

That’s it for this week’s roundup. On the horizon for next week will be part 3 of the series on commission-free ETF trading as well as a review of a neat research tool for junior mining stocks.

Posted on July 1, 2013 by user — Leave a comment

Discount Brokerage Deals & Promotions – July 2013

[Updated July 2nd]

For the most part, many of July’s discount brokerage deals and promotions look to be mostly similar to last month’s offering. First, I’ll recap of the deals that expired at the end of June and then launch into the deals that got extended and round out with the newest offerings.

Expired Deals

Three discount brokerages had their deals expire coming into July:

~~Scotia iTrade’s 100 Free Trades + Flight Desk Promotion~~ [Now extended to September 30, 2013]
Disnat’s SCATE tour promotion (and transfer fee credit that goes with it)
Credential Direct’s transfer fee credit promotion

TD Direct Investing’s 50 commission-free trade offer is scheduled to expire just before mid-July and we will be watching to see what, if anything, will replace it at that time.

Extended Deals

Sometimes it’s just too hard to say good-bye to a deal. Scotia iTrade has extended the deadline for their Refer-a-Friend promotion out to July 31^st as well as their 100 Commission-Free Trade offer (extended until September 30th). Questrade has added some more time to the clock of their Advantage promotion, which offers 1 month of unlimited commission free trading, moving its expiry date out to the end of August.

Newly Added Discount Brokerage Deals

Although this is not the first time Questrade has offered 100 commission-free trades, the current 100 commission-free trade offer ~~does make it the only Canadian discount brokerage to have a 100 commission-free trade promotion on the table~~ makes them one of two discount brokerages (the other being Scotia iTrade) to offer 100 commission-free trades. The terms and conditions on the Questrade deal are numerous, so be sure to read and understand the requirements (especially the account funding rules) when considering this offer. The offer is open to new accounts depositing at least $10,000.

Out of the 12 13 deals on this month’s list, Questrade and National Bank Direct Brokerage make up just over half of the offers. Given the competitive nature of the discount brokerage business, however, it is not likely that the remaining discount brokerages will sit out of offering deals for very long.

As always, if there are any deals or promotions that you spot that you think should be featured, feel free to drop me a note here.

Discount Brokerage Deals & Promos

Brief Description	Minimum Deposit Amount	Commission/Cash Offer Type	Time Limit to Use Commission/Cash Offer	Details Link	Deadline
A Sparx Trading exclusive offer! Use the promo code “Sparx Trading” when signing up for a new account with Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform.	n/a	Discounted Commission Rates	none	For more details click here	none
Open a new margin account with National Bank Direct Brokerage before August 31st 2013 and receive a 1% discount of prime for a margin interest rate. Also, commission rates will be fixed at $6.95 for 3 months. Be sure to read the terms and conditions as well as understand the risks associated with trading on margin. Use promo code: “MARGIN2013” when signing up.	n/a – while no minimum deposit is required, you must pass a credit check to qualify	1% of prime rate for margin borrowing $6.95 fixed commission rate for 3 months	Margin rate discount: 3 months Commission rate discount: 3 months	Click here for margin promo details and here for terms and conditions	August 31, 2013
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc	$1,000	$50 commission credit	none	none	none
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account.	$1,000	$50 commission credit (friend) $100 commission credit (referrer bonus)	60 days	Refer a friend	none
Open a new account (TFSA, Margin or RRSP) by August 31st with A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code 100Free95 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information.	A)$1,000 B)$10,000	A)10 free trades B)100 free trades	60 days	100 commission-free trades	August 31, 2013
Open a new account with TD Direct Investing before July 12, 2013 and deposit either A)$5,000 to $25,000 B)$25,000 to $50,000 or C)$50,000 or more to receive commission credits for A) 3 trades, B)10 trades or C) 50 trades. Be sure to read the details about keeping your account balance at qualifying levels, eServices subscription as well as other terms and conditions.	A)$5,000 B)$25,000 C)$50,000+	A) 3 Trades (max value $87) commission credit B) 10 trades (max value $290) commission credit C) 50 trades (max value $500) commission credit	Trades must be used by September 30, 2013 4pm ET.	50 free trades offer	July 12, 2013
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:$199.80) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $999)	60 days	Refer A Friend to Scotia iTrade	July 31, 2013
Open and fund a new Scotia iTRADE account with at least $25,000 before September 30, 2013 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded are free. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code 100FT. See details link for further terms and conditions.	$25,000	100 commission-free trades ($999 value @ $9.99 commission rate)	60 days	Scotia iTrade 100 free trades + FlightDesk	September 30, 2013
Open a new account with National Bank Direct Brokerage before Oct. 31st and the commission rate for equity transactions will be fixed at $6.95 for 6 months. Use promo code: EVENT2013. Since this is unadvertised, you’ll have to call their customer service line: 1-800-363-3511 for full details.	$25,000	$6.95 fixed commission rate for 6 months	6 months	Click here for a low-res version of flyer or here for a high-res version.	October 31, 2013
If you refer a friend/family member who is not already a National Bank Direct Brokerage account holder to them, both you and your friend get a bonus of $100 each. The promotion code “FRIEND” must be used on the account application form. Read the details link for full terms and conditions. Note the maximum referral bonus per client is $1000.	$25,000	$100 referral bonus (referrer) $100 referee (your “friend”)	Payout occurs after 6 months	Share $200 with a Friend Promotion	October 31, 2013
Open a new account (TFSA, Margin or RRSP) and receive 30 days of commission-free trading and one month free of the US Advanced market data package. Use promo code ADVANTAGE when signing up. Offer is open to new clients only. There are a number of important conditions to qualify – be sure to read terms and conditions to the deal.	$25,000	30 days unlimited commission-free trading + 1 month free Advanced US market data package.	30 days	Advantage Promotion	August 31, 2013
Disnat is celebrating its 30th anniversary by offering new & existing clients $300 in commission credits which can be used for up to 6 months. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat30. See details link for more info.	$50,000	$300 commission credit	6 months	Disnat 30th Anniversary Promo	August 30, 2013
If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer.	A) $50,000 – $249,000 B) $250,000+	A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100	Payout occurs after 60 days (subject to conditions).	Refer-a-Friend terms and conditions can be located by logging into the InvestorLine panel under “account services” or by contacting BMO InvestorLine directly	December 31, 2013
Open a new account or upgrade an existing account with $100,000 and choose to receive either $250 cash back or 2000 Air Miles. Use Promo Code: BONUS250 to receive the cash back offer or BONUSAM (+ Air Miles Collector #) to receive the Air Miles offer. NOTE: There are lots of details/important conditions attached to this promotion. Be sure to read the terms and conditions carefully.	$100,000	$250 Cash Back OR 2000 Air Miles	Payout occurs after 6 months	Air Miles Promotion	September 4, 2013

Transfer Fee Deals

Brief Description	Maximum Transfer Fee Coverage Amount	Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	none
Open a new account by July 12, 2013 and transfer $25,000 or more to TD Direct Investing and they will cover up to $150 of the brokerage transfer fees.	$150	$25,000	50 free trades offer	July 12, 2013
Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees	$135	$25,000	Transfer Fee Rebate	none
Qtrade Investor will reimburse your transfer fee up to $125 when transferring a balance of $25,000 or more. For reimbursement, please mail or fax a copy of your statement from the transferring institution that shows the transfer charge to Qtrade Investor at 604.484.2627 and indicate your Qtrade Investor account number.	$125	$25,000	Transfer Fee Promo	none
Disnat is celebrating its 30th anniversary by offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1 800 268-8471 and mention promo code Disnat30. See details link for more info.	$150	$50,000	Disnat 30th Anniversary Promo	August 30, 2013

Posted on June 28, 2013 by user — Leave a comment

Discount Brokerage Weekly Roundup – June 28, 2013

It has been predictably quiet in the discount brokerage space this past week with many self-directed investors out enjoying summertime activities. Still, there are some updates on several discount brokerage promotions that are noteworthy as we head into July. Also, there are a couple of advertising/marketing stories that might be of interest for those keeping a closer eye on the industry.

Easy Come, Easy Go

The end of June is here and with it several discount brokerages are retiring some promotions. First, the Disnat SCATE promotion will end as of June 30^th. Also slated to expire at the end of June will be the 100 free trades offer from Scotia iTrade. For details on the discount brokerage deals, check out our deals page here.

Not all the deals and promotions originally supposed to expire at the end of June will come to an end though. It seems that Scotia iTrade and Questrade have had a change of heart about a couple of their respective promotions. Scotia iTrade’s “Refer-a-Friend” offer has been extended to July 31^st 2013 and Questrade also has extended its Advantage offer out to the end of August 2013.

Baby Not on Board

Even though it is not a Canadian discount brokerage, the news that the agency famous for bringing us the E*Trade baby is moving along signals a change in the times. Discount brokerages in the US spend hundreds of millions of dollars in advertising per year and it appears that E*Trade is making a move to lower these advertising costs. To read more about the story, click here.

Winning the Customer Service Game

Advertising also seems like it is on the mind of HSBC InvestDirect after their recent win of the Dalbar Direct Brokerage Service Award. We got what looks like a sneak peek at a promotional video that highlights what it took for the HSBC InvestDirect team to win this year.

Discount Brokerage Fees Still Matter

Last Friday’s article in the Globe and Mail ‘A primer on low-commission’ trading by Rob Carrick provided a quick overview of many discount brokerages’ fees. Both Virtual Brokers and Questrade stand out as low-fee choices however as we pointed out in the special series comparing these two discount brokerages to each other, the low-commission price may mask other fees, such as data or platform fees, that are required in order to fully take advantage of the low commission rates. An individual (named “Uss”) in the comments section of the article also made an interesting observation that Interactive Brokers wasn’t part of this low-commission rate primer although their rates are just as competitive at the lowest end of equity and option commission pricing currently available. Interactive Brokers has typically not been included in the annual online broker ratings that Rob Carrick publishes because they do not offer registered accounts and it would be safe to assume that is why they were not included in this primer either.

As a reminder for next week, Canadian stock exchanges will be closed on Monday July 1^st for Canada Day and U.S Markets will close early (1PM) on July 3^rd and will be closed all day July 4^th.

Hope you all have a safe and enjoyable Canada Day and long weekend!