Tag: Scotia iTRADE

Scotia iTRADE

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Commission-Free ETFs at Canadian Discount Brokerages: A Clever Lure or a Good Deal for Investors? Part 2

In part one of this series, we looked at which Canadian discount brokerages are currently offering commission-free ETFs as well as why commission-free ETF trading has started to become so popular. In part 2 of this series, we take a closer look at the types of commission-free offers available and provide some tips for investors who might be considering commission-free ETFs as part of their discount brokerage comparison research.

There’s commission-free and then there’s commission-free

While the term “commission-free ETF” does suggest a no cost transaction, in reality there are a couple of different interpretations as to what “commission-free” actually means.

Company Number of Commission Free ETFs Minimum Trade Amount Hold Period (minimum) Details Link
All Canadian ETFs (>250) $5000 1 business day National Bank Direct Brokerage Commission-Free ETF Plan
60 $1000 1 business day Qtrade Commission-Free ETF Plan
All ETFs* (only buys are commission-free) $0 None Questrade Commission-Free ETF Plan
50 $0 1 business day Scotia iTrade Commission-Free ETF Plan
All ETFs* (only buys are commission-free) $0 None Virtual Brokers Commission-Free ETF Plan

As the table above shows, there are several ETF commission models being offered by Canadian discount brokerages.

First, there are those discount brokerages that offer a limited selection of ETFs that can be traded commission free – as in commission-free to buy and commission-free to sell.  The brokerages that offer this type of pricing are:

  • Scotia iTrade (which offers 50 ETFs commission-free)
  • Qtrade (which offers 60 ETFs commission-free)

Thus the trade-off is that there might be true ‘commission-free’ ETF free trading but only on a handful of ETFs. There are also minimum amounts of time (often at least 1 business day) that an investor needs to hold the ETF in order to qualify for commission-free status.

Another variation on ‘commission-free’ ETFs are from discount brokerages that allow purchases of any ETF commission-free but will charge the normal commission charge on the sale of the ETF.  Thus, only the purchase of the ETF is commission-free. The discount brokerages currently offering these types of commission-free ETF purchases are:

The offer from National Bank Direct Brokerage is slightly different in that it allows for unlimited commission-free ETF buying and selling but only of Canadian ETFs and only for a limited amount of time.   Although commission-free ETF trading at National Bank Direct Brokerage is currently part of a promotional offer, depending on the response they receive from prospective clients, their promotion could turn into a standing offer in the future.

Whatever the model being used, it is clear that with any ETF commission deal from the Canadian discount brokerages, there are certain strings attached. For self-directed investors, it is important to understand the terms and conditions attached to the ETF commission pricing and be vigilant about the strings that come attached to these offers.

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Commission-Free ETFs at Canadian Discount Brokerages: A Clever Lure or a Good Deal for Investors? Part 1

Every day increasing numbers of self-directed investors are either turning to exchange traded funds (ETFs) to meet their investing goals or are learning more about how ETFs could help lower their investing costs.   Given the interest in these products by self-directed investors and the commission costs that are associated with buying and selling ETFs, Canadian discount brokerages have not only taken notice but have also sought to leverage this interest to their benefit.

In the first of this three-part series, we briefly review the landscape of commission-free ETF trading in Canada. In part two we’ll look at what types of “commission-free” ETF trading options investors have as well as provide investors with several tips to keep in mind when considering these types of ETFs with a discount broker.  Lastly we’ll be taking a look at each discount brokerage’s commission-free ETF offering in detail to see what the pros and cons are of each.

It’s so Hard Being Popular

The case for investors embracing ETFs is relatively simple to make. Essentially, with ETFs investors get most of the benefits of a mutual fund (the two primary ones being professional management and diversity in composition) but at a fraction of the management cost.  Beyond the diversity and low management costs of ETFs, one of the biggest attractions for many investors has been the fact that ETFs, unlike their mutual fund counterparts, trade on stock exchanges the same way ‘normal’ stocks do.

The freedom to buy or sell them short, to take options on ETFs and to enter and exit with relative ease has meant that investors of all kinds have a very versatile tool in their wealth creation toolbox to work with.

Ironically, it is the popularity of ETFs that might be their undoing.  Data from the Canadian ETF Association (CETFA) shows that ETF landscape in Canada contained 257 ETFs from 6 distinct providers as of May 2013.  While their data does show strong demand and interest in ETFs with self-directed investors as well as with institutional investors, a recent article about the state of ETFs suggests that the ETF craze might be plateauing. Data from the US suggests that the sheer number of ETFs may have exceeded the interest and capital that can be allocated to them.

In short, it appears that there are hints of an oversupply of ETFs relative to demand for them. The consequence  is a predictable downward price pressure and intense competition.

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Discount Brokerage Weekly Roundup – June 21, 2013

While storms were raging across stock markets this past week, it was definitely calmer waters in terms of discount brokerage news and chatter.  In this week’s roundup, we look at the actions that landed another Canadian discount broker in the IIROC penalty box, a report by TD on Canadian investors as well as a review of the chatter on stock forums about brokerages and some useful cautionary investing tales. Finally, we take a quick look at the results from the twelfth edition of  the U.S. Self-Directed Investor Satisfaction Survey results from J.D. Power released earlier this week.

Scotia Capital gets called for an offside

Over the past several weeks, it seems that that Investment Industry Regulatory Organization of Canada (IIROC) has been handing out a series of penalties to Canadian discount brokerages. Joining the likes of Questrade and Interactive Brokers, the decision against Scotia Capital Inc (the parent of Scotia iTrade) was based on activity between 2009 and 2011, shortly after it had acquired E*Trade in 2008.

Scotia Capital was hit with a $150,000 fine for failing to have policies and procedures in place that could detect potential wash trades and high closing prices.  To read more about the settlement, check out the IIROC press release or a great write-up about it in the Globe and Mail.

The Investor Survey Says…

TD Bank Group released results from a recently commissioned a survey of Canadian investors. The survey asked just over 1000 Canadian investors about their thoughts and perspectives on the investing climate in the next 12 months.  Of those surveyed, 41% felt that their personal portfolios would improve even in the face of mild Canadian and US economic recoveries and a poor global economic outlook.    This suggests that investors surveyed might be more interested in looking closer to home for investing ideas rather than looking abroad.

Another interesting finding from the survey is a classic illustration of behavioural finance in action.  Given the run up in the markets experienced for the first half of this year, the rising prices seemed to have also lifted the outlook of investors. Paradoxically, investors are constantly told or reminded that past performance doesn’t guarantee future results, yet it is interesting to see how the past does, in fact, shape investor perceptions.   As described in their press release, those investors surveyed who experienced a loss were more prone to being pessimistic about the future than those investors who experienced a gain.

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Discount Brokerage Deals & Promotions – June 2013

ArchivedDeals[Updated June 12th]

With summer just around the corner, a few of Canada’s discount brokerages are going to be working a little harder this month to try and win over self-directed investors.  The recently announced earnings from several major Canadian banks indicate that they aren’t making as much money as their shareholders are expecting. As a result, getting more clients and assets will surely be on their to do list to boost their bottom lines. For consumers, they can expect much more marketing coming their way from the big banks as well as the independent discount brokerages who wish to keep pace.

While likely unrelated, the timing of the deal being offered by TD Direct Investing this month is particularly intriguing.  TD Direct Investing has typically avoided deals and promotions, especially the “free trade” variety.  So, their “50 free trade” offer launched at the end of May is somewhat of a major departure from their previous approaches to attract new clients. The end date of the free trade deal, which they can admittedly change at any time, was also curiously positioned to expire mid-July.

BMO Investorline’s cash back promo is set to expire a few days into June, so the next offer, should there be one, is what we’re looking out for over the coming month.  BMO InvestorLine has announced their latest promotion which offers new accounts the choice between $250 cash back or 2000 Air Miles when a deposit of $100,000 or more is made.  This isn’t the first time Air Miles have been offered for signing up for an InvestorLine account, however after Scotia iTrade’s “Get Educated” promo it seems that the big bank-owned discount brokerages are starting to get more creative with their promotions.

Overall, this summer could prove to be fairly interesting from a deals perspective for a number of reasons. Most importantly, there are five deals which are scheduled to expire within this month signalling that marketing teams are faced with deciding where and how to outsmart one another.  For their part, Scotia iTrade looked to using a contest (the “Get Educated” promotion) and waving around some big prize money to get the attention of existing and would be investors.  Questrade‘s Advantage promotion also expires at the end of the month – just make sure to read through and understand the terms and conditions, in particular for start dates for data packages, minimum account balance maintenance and start dates for the commission-free trading month.

Coming up with something ‘new’ isn’t nearly as easy as just extending the expiry dates of existing deals, which is exactly what a couple of discount brokerages have done.  Scotia iTrade has extended their refer-a-friend deal and Disnat has extended their 30th anniversary deal until the end of August.  Also still on the table is another offer by Disnat that was part of their SCATE tour.

We will continue to monitor the deals over the course of the month and, as always, if there are any offers you spot that you’d like to share, please drop us a note.

[Updated June 12]

National Bank Direct Brokerage has just announced a promotion on their margin accounts (for 3 months) which also includes a fixed commission rate of $6.95 per trade.  To qualify for this account, clients will have to pass a credit check as margin accounts essentially allow clients to borrow money in order to trade with greater buying power.  The discount on margin rates is definitely something different than what is being offered currently so it will be sure to attract the interest of those investors/traders who use margin as part of their strategy.

 

Discount Brokerage Deals & Promos

Company Brief Description Minimum Deposit Amount Commission/Cash Offer 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 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 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
Disnat As a follow up to their SCATE tour, Disnat is offering new clients who deposit $10,000 before June 30, 2013 a bundle that includes commission credits and a one year free subscription to Tyler Bollhorn’s Stockscores daily newsletter. This is an unadvertised deal so the details link is to a scan of the flyer with the offer. $10,000 $300 commission credit 30 days For more details, click here and here June 30, 2013
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:$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 June 30, 2013
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $25,000 before June 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 free trades ($999 value @ $9.99 commission rate) 60 days Scotia iTrade 100 free trades + FlightDesk June 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 June 30, 2013
Disnat 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
BMO InvestorLine 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

Below are the discount brokerages deals that cover transfer out fees from other discount brokerages.

Company Brief Description Maximum Transfer Fee Coverage Amount Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer your discount brokerage account to Credential Direct and they’ll pay up to $200 of the transfer fees. If after 90 days you’re not satisfied they will waive the $125 transfer out fee too. $200 $10,000 Switch Me Promo June 30, 2013
Disnat As part of their SCATE tour promotion, if you open a new account by June 30th with $10,000 or more Disnat will cover up to $150 of the transfer fees from another brokerage. $150 $10,000 For more details, click here and here June 30, 2013
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 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 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
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Discount Brokerage Deals & Promotions – May 2013

ArchivedDeals*Deals have been updated, see below for more details*

This month’s deals and promotions from Canadian discount brokerages feature a new promotion by Questrade, as well as an interesting deal/contest by Scotia iTrade announced last month.  Also, Qtrade‘s transfer fee rebate is also back, this time with no apparent time limits.  Before launching into the new deals, we’ll take a quick recap of which deals have expired and which are expiring this month.

One of the big deals that expired at the end of April was HSBC InvestDirect‘s unlimited trading offer.  While they haven’t typically offered many deals or promotions over the past year, with this recent deal, it could be a sign of some activity to come, especially if they are keen to highlight their recently recognized customer service award from Dalbar to Canadian self-directed investors.    Questrade’s 100 free trade offer which ran last month officially expired and is being replaced by another free trade offer geared towards active traders (see below).  Now that Questrade has pulled the 100 free trade offer, only Scotia iTrade is offering 100 free trades for new accounts.

Disnat‘s 30th anniversary deal which offers $300 in commission credits has been around for a few months and is being extended to May 31st.

Questrade’s latest offering  (the Advantage promotion) is offering 30 days of commission-free trading as well as one month free of the US Advanced data package.  The terms and conditions on this are a bit tricky so be sure to read and understand them.  Several key points to pay attention to are:

  1. The start/end dates for the free data package
  2. The start/end dates for the commission-free trading month
  3. The length of time needed to maintain a minimum balance of $25,000 (this is 6 months)
  4. Commission rebates are credited to client accounts within 3 business days however clients will still have to pay the commissions at the time a trade is executed.

If you are considering the Advantage program, we suggest looking at our detailed report and/or special series that looks into the Advantage plan.

Scotia iTrade also recently announced their “Get Educated” promotion and contest.  This hybrid offering allows individuals opening a new account with at least $50,000 100 commission-free trades (which they have 60 days to use) as well as the opportunity to get 5 ballots to be entered in a draw for a $25,000 cash trading account as well as a “trading education” package (retail value $5,000).  Like many ‘commission free’ offerings, on this promotion individuals are responsible for paying the commission fees which are then refunded to clients overnight. The “contest” portion of the Scotia iTrade offer is open to all Canadians however be sure to read the terms and conditions as well as the rules and regulations for  participation in the contest.

Lastly, when we went to last month’s World MoneyShow in Vancouver, we spotted a deal from National Bank Direct Brokerage that gives individuals who open a new account (with $25,000) 6 months of trading at a $6.95 commission rate.

*Update* May 29th, 2013

Two new deals are being added into the list late in the month.

We spotted this first deal being promoted at the World Resource Investment Conference in Vancouver. TD Direct Investing is launching a new “50 free trades” promotion where new accounts with a $50,000 deposit are eligible to receive up to 50 trades commission free as well as have their transfer fees covered (up to $150).  Clients who have lower amounts to deposit may be eligible for fewer commission free trades. For example, clients who deposit between $25,000 and $50,000 can receive 10 free trades and clients who deposit between $5,000 and $25,000 are being offered 3 free trades.

The second deal, also spotted at the World Resource Investment Conference, is an unadvertised offer by Disnat which looks like an offer from their SCATE tour.  While not as generous as some previous deals, this deal offers $300 in commission credits, 3 months of the lowest rate of commissions and a free year of the Stockscores daily newsletter service.

Discount Brokerage Deals & Promos

Company Brief Description Minimum Deposit Amount Commission/Cash Offer 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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
Open a new account (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 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
Disnat As a follow up to their SCATE tour, Disnat is offering new clients who deposit $10,000 before June 30, 2013 a bundle that includes commission credits and a one year free subscription to Tyler Bollhorn’s Stockscores daily newsletter. This is an unadvertised deal so the details link is to a scan of the flyer with the offer. $10,000 $300 commission credit 30 days For more details, click here and here June 30, 2013
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:$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 May 31, 2013
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $25,000 before June 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 free trades ($999 value @ $9.99 commission rate) 60 days Scotia iTrade 100 free trades + FlightDesk June 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 June 30, 2013
Disnat 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 May 31, 2013
Scotia iTrade Open a new Scotia iTRADE account before May 31, 2013 and fund it with at least $50,000 (by June 30th, 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 SP-EDCON. There is also a contest to win a $25,000 trading account that is part of this promotion. See details link for further terms and conditions. $50,000 100 free trades ($999 value @ $9.99 commission rate) 60 days Get Educated Promo May 31, 2013
BMO InvestorLine Open a new account or upgrade an existing account with either A) $100,000 or B)$250,000 to receive $250 cash(for those who deposit $100K) or $600 (for those who deposit $250K). Use Promo Code: BONUS600 NOTE: There are lots of details/important conditions attached to this promotion. Be sure to read the terms and conditions carefully. A) $100,000 B) $250,000 A) $250 Cash Back B) $600 Cash Back Payout occurs after 6 months Spring 2013 Cash Back Promotion June 3, 2013
BMO InvestorLine Open a new account or upgrade an existing account with $500,000 to receive $1500 cash back. Use Promo Code: Select1500. NOTE: There are lots of details/important conditions attached to this promotion. Be sure to read the terms and conditions carefully. This wasn’t an advertised deal, however the terms and conditions are from BMO InvestorLine’s website. $500,000 $1500 Cash Back Payout occurs after 6 months Select1500 Promotion June 3, 2013


Transfer Fee Deals

Below are the discount brokerages deals that cover transfer out fees from other discount brokerages.

Company Brief Description Maximum Transfer Fee Coverage Amount Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer your discount brokerage account to Credential Direct and they’ll pay up to $200 of the transfer fees. If after 90 days you’re not satisfied they will waive the $125 transfer out fee too. $200 $10,000 Switch Me Promo June 30, 2013
Disnat As part of their SCATE tour promotion, if you open a new account by June 30th with $10,000 or more Disnat will cover up to $150 of the transfer fees from another brokerage. $150 $10,000 For more details, click here and here June 30, 2013
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 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 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 May 31, 2013
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National Bank Direct Brokerage to offer commission-free ETFs

Commission-Free ETFs: Peer Pressure?

Letting self-directed investors trade exchange traded funds (ETFs) commission-free appears to be all the rage amongst Canadian discount brokerages these days.

National Bank Direct Brokerage has now become the latest Canadian discount brokerage to offer free trading of Canadian ETFs (click here to read their press release) joining the likes of Questrade, Qtrade, Scotia iTrade and Virtual Brokers in offering some kind of free ETF trading.  Specifically, National Bank Direct Brokerage is offering three months of commission-free trading of Canadian ETFs for new and existing clients.

Commission-free ETF trading offers, while great for self-directed investors, require individuals to really understand the terms and conditions that come attached to these types of offers.

The Fine Print

While they’ve done a good job of keeping the terms and conditions easy to read (there are only 17 conditions), there are a couple of important conditions attached to this ETF offer by National Bank Direct Brokerage that self-directed investors need to pay attention to.

First, the promotion applies only to Canadian ETFs (unlike other discount brokerages which do not restrict the ETFs to Canadian only).  What exactly is a “Canadian” ETF? According to National Bank Direct Brokerage, the “Canadian” refers to any ETF that comes from a Canadian provider (e.g. Barclays, BMO, First Asset, Horizons, Invesco Powershares, iShares Canada, RBC and Vanguard Canada).

Second, the ETFs must be held for at least one trading day otherwise regular trading fees apply. This means that at an ETF could be purchased before closing on one trading day and then traded the following trading day without a fee. Thus, hold period is measured in trading days.

Third, trades must be at least $5000 in value in order to qualify for the commission rebate.

Lastly, according to the terms and conditions, clients must pay for the commissions on any ETF transaction at the time of purchase and they will then be reimbursed “six months after the promotion ends” (FYI: the promotion ends on July 31, 2013).  The terms go on to clarify the actual refund date by stating that trades placed between April 15th and June 14th will be reimbursed on October 18th whereas trades placed between June 15th and July 31st 2013 will be refunded on December 20th.   For a list of their commission rates, check our profile of National Bank Direct Brokerage here.

On the plus side, the offer allows for unlimited commission-free ETF trading (buys and sells) for three months after signing up for this account. For occasional investors or those who rebalance, this may not be a tempting offer, however for swing traders or those who have hold times for trades that are days or weeks (rather than hours or months), this offering could be attractive, especially since there are no caps to the numbers of trades that could be made.

While the timeframe to get reimbursed is lengthy, it is in line with many ‘cash back’ offerings currently available at other discount brokerages.  Some tips for self-directed investors considering this offer are to make sure they keep good records of their trading activity and to have a conversation with an accountant or tax advisor to ensure proper tracking of the commission costs and rebates.

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Discount Brokerage Deals & Promotions – April 2013

ArchivedDealsApril’s discount brokerage deals and promotions heralds the return of unlimited trading by an unlikely character in the deals section – HSBC InvestDirect. This deal is in ‘celebration’ of HSBC’s recent award by Dalbar Inc for best customer service at a Canadian discount broker, an award that RBC Direct Investing had won for several years.

On top of unlimited trading, we also have the big 100 trade offers by Questrade and Scotia iTrade, and a Spring cash-back offer from BMO InvestorLine that is sure to get people talking.

Credential Direct also makes an appearance this month with their transfer fee promo. The refer-a-friend offers are still being offered by Questrade, National Bank Direct Brokerage and Scotia iTrade.

Falling off our deals list at the start of this month are TD Direct Investing and Qtrade whose transfer fee deals expired at the end of March.

 

Discount Brokerage Deals & Promos

Company Brief Description Minimum Deposit Amount Commission/Cash Offer 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 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 A) non-registered account or B) registered account with HSBC InvestDirect between April 1st and April 30th and receive either A)30 days or B)45 days of commission-free trading. no minimum deposit Commission Credit (amount of credit depends on trading activity) A) 30 days (non-registered accounts) B) 45 days (registered accounts) Free Trading Offer For additional information, there is also an FAQ Link April 30, 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) and receive 100 commission-free stock trades. $10,000 100 free trades (max total value: $995.00 at $9.95 commission rate) 60 days Refer a friend April 30, 2013
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:$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 May 31, 2013
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $25,000 before June 30, 2013 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code WAC13-EN. See details link for further terms and conditions. $25,000 100 free trades ($999 value @ $9.99 commission rate) 60 days Scotia iTrade 100 free trades + FlightDesk June 30, 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
Disnat 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 May 1, 2013
BMO InvestorLine Open a new account or upgrade an existing account with either A) $100,000 or B)$250,000 to receive $250 cash(for those who deposit $100K) or $600 (for those who deposit $250K). Use Promo Code: BONUS600 NOTE: There are lots of details/important conditions attached to this promotion. Be sure to read the terms and conditions carefully. A) $100,000 B) $250,000 A) $250 Cash Back B) $600 Cash Back Payout occurs after 6 months Spring 2013 Cash Back Promotion June 3, 2013
BMO InvestorLine Open a new account or upgrade an existing account with $500,000 to receive $1500 cash back. Use Promo Code: Select1500. NOTE: There are lots of details/important conditions attached to this promotion. Be sure to read the terms and conditions carefully. This wasn’t an advertised deal, however the terms and conditions are from BMO InvestorLine’s website. $500,000 $1500 Cash Back Payout occurs after 6 months Select1500 Promotion June 3, 2013

Transfer Fee Deals

Below are the discount brokerages deals that cover transfer out fees from other discount brokerages.

Company Brief Description Maximum Transfer Fee Coverage Amount Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer your discount brokerage account to Credential Direct and they’ll pay up to $200 of the transfer fees. If after 90 days you’re not satisfied they will waive the $125 transfer out fee too. $200 $10,000 Switch Me Promo June 30, 2013
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
Disnat 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 May 1, 2013
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Discount Brokerage Deals & Promotions – March 2013

ArchivedDealsAs we move past the 2013 RRSP season, many of the promotions offered last month are either expired or will be expiring at the end of this month.  It seems like several discount brokerages are going to pass altogether on offering up any promotions for March whereas others are just extending out the deadlines of existing promotions.  This month there are seven discount brokerages offering promotions with free trades or credits for trades being the most popular.

The BMO InvestorLine RSP promotion offering 250 free trades is set to expire within the first week of March.  While 250 free trades is a substantial offer it is important that potential clients be clear that the “free trades” being offered in the advertisement refer to 250 free trades, not unlimited free trades which some of the other discount brokerages have recently been offering.  At the opposite end of the month, Scotia iTrade‘s 100 free trades offer is set to expire March 31st. Questrade is still running their 100 free trades promotion through till the end of April.

Both Scotia iTrade and National Bank Direct Brokerage are continuing to offer their refer-a-friend deals with iTrade’s offer now extended out until May 31st 2013.

We will keep an eye out for more deals may surface during the month and always invite our readers to share news of any promos they may have seen.

Discount Brokerage Deals & Promos

Company Brief Description Minimum Deposit Amount Commission/Cash Offer 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 Jitney and receive access to their preferred pricing package and a massive 45% discount on the Real Tick trading platform. n/a Discounted Commission Rates none For more details click here none
Open a new account (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
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:$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 May 31, 2013
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $25,000 before March 31, 2013 and the commissions associated with your first 100 trades placed within 60 days of the date the account is activated and funded. Also, the new FlightDesk platform is being offered for free for 60 days. Use promo code WAC13-EN. See details link for further terms and conditions. $25,000 100 free trades ($999 value @ $9.99 commission rate) 60 days Scotia iTrade 100 free trades + FlightDesk March 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
Disnat 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 May 1, 2013
BMO InvestorLine Open a new account or upgrade an existing account with either A) $100,000 or B)$250,000 to receive 250 trades (for those who deposit $100K) or 250 trades + $250 (for those who deposit $250K). Use Promo Code: RSP2013. NOTE: There are lots of details/important conditions attached to this promotion. Be sure to read the terms and conditions carefully. A) $100,000 B) $250,000 A) 250 Free Trades ($2497.50 value @ $9.99/trade) B) 250 Free Trades + $250 ( $2747.50 value @$9.99/trade) 90 days Path to Online Investing Promotion March 4, 2013

Transfer Fee Deals

Below are the discount brokerages deals that cover transfer out fees from other discount brokerages.

Company Brief Description Maximum Transfer Fee Coverage Amount Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Qtrade Investor 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 $10,000 Transfer Fee Promo March 31, 2013
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo none
TD Waterhouse Open a TD Direct Investing account with a minimum of $25,000 by March 1, 2013, and get up to $150 to cover your account transfer fees. $150 $25,000 Switch for free March 31, 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
Disnat 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 May 1, 2013

 

 

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Desjardins Group buying a piece of Qtrade

Desjardins Group invests in Qtrade for the long-term

Desjardins Group, parent to discount brokerage Disnat, announced earlier this week that they are taking a significant ownership stake in Qtrade Financial Group.  Desjardins has committed to purchasing between 25 to 40% of Qtrade’s outstanding shares initially with the option to acquire the remaining shares within six years.

According to the arrangement between the two companies, Qtrade will continue to operate independently retaining its brand name and current leadership.  With regards to the discount brokerage component specifically, both Desjardins and Qtrade state that for the foreseeable future it will be business as usual.

Ron Cann, Qtrade’s VP of Marketing and Communications, says that the focus will continue to be on delivering a quality experience, something that Qtrade’s discount brokerage has earned top honours for from the Globe and Mail and Morningstar in recent years.  From Desjardins perspective, director of media relations André Chapleau says that the near term will be a time of learning – one in which the opportunities to build synergies will be explored.

Even though these two companies are going to operate independently, and they both seem committed to continuously improving their offerings for Canadian investors, there are still some wrinkles to iron out. Specifically, will Disnat, the discount brokerage side of Desjardins and Qtrade’s discount brokerage business compete directly with one another?  While there might be some overlap, each side seems to feel that their respective target client base is diverse enough in terms of trading style (active trader vs long term investor) and geography (Quebec vs Western Canada) that competition is not really a focal point.  The alignment of Qtrade and Disnat as alternatives to the big-bank owned discount brokerages is what both parties see as a value add for their respective clients and partners.

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Event Review – Equity Strategy Using ETFs with iShares Canada – Scotia iTrade

This one hour webinar organized by Scotia iTrade covered quite a bit of ground on how exchange-traded funds (ETFs) can be used as part of a number of different portfolio and investment strategies.  The presenter for this session was Steve Eng, an associate at iShares, who did a great job of leading attendees through how ETFs can be used in many portfolio management scenarios.

Two key takeaways from the session were:

  1. Make sure to do your due diligence. When considering an ETF, investors should ensure they understand what the ETF holds, what the mandate of the particular fund is and what fees are involved.  This has implications for helping to manage both risk and expectations.
  2. ETFs can be used as a tactical tool.  There are lots of ways in which ETFs can be used as part of investment strategies. For example, they can be used to focus on specific sectors, countries or asset classes. The diversity of ETFs means that there is some choice when trying to build a portfolio around a strategy or idea.

The Q&A session was also handled well, with a number of questions around tax implications of foreign income and dividend reinvestment programs (which iShares have recently introduced).

As a cautionary note for individuals attending sessions like these, while presenters may have expertise or knowledge in one area, such as ETFs, it can be difficult to get reliable answers when asking questions about taxation to the speakers as they are not certified tax experts.

The lesson for do-it-yourself investors is not to avoid asking the questions, but rather to ensure that you verify the information you gather with a professional, such as an accountant, on what the tax implications are of your ETF investment strategies.

To learn more about the different webinars/seminars for do-it-yourself investors, check out our investor education calendar, which lists the different events being run by various discount brokerages.