Tag: Scotia iTRADE

Scotia iTRADE

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Questrade Launches Commission Free Exchange Traded Fund (ETF) Buying

Questrade Commission Free ETF

Commission Free ETFs – The New Normal?

Earlier this month, Questrade made a major announcement that impacts the commission fees associated with trading or investing in exchange traded funds (ETFs).   Specifically, Questrade has eliminated the commission fees associated with purchasing ETFs so that now any Canadian or American listed ETF is available for purchase commission free.  Naturally with a deal this compelling, there has to be a catch and in fact there are several important ones to take note of.

First, when purchasing an ETF, customers will get charged the commission fee, which will then be rebated within two business days. Second, customers can only buy ETFs for free by using one of the IQ platforms. Third, when selling the ETF, regular commission charges apply.  Lastly, some ECN (electronic communications network) fees may still apply for certain order types.  Even so, purchasing ETFs through Questrade just got way cheaper.

Given the popularity of ETFs with investors and traders alike, this announcement is sure to make waves with do-it-yourself investors as well as with other discount brokerages.  Message boards, forums and blogs have been buzzing with this latest offering from a company already well known for offering low commission fees.

Lowering Prices and Lowering the Boom

While some other discount brokerages such as Scotia iTrade, Qtrade and Virtual Brokers offer totally commission free ETFs (i.e. buying and selling) there are a number of conditions attached to how long one has to hold them and which ETFs are eligible for “commission free” status.   In addition, there are also restrictions on which ETFs are available with iTrade offering 50 commission-free ETFs and Virtual Brokers offering 100.  In Canada, data from last year puts the number of ETFs at about 250, trading across a wide variety of sectors, commodities and currencies.  In the US, there are over 1400 ETFs totaling over US$1 trillion in assets.

So, as a result of this announcement, Questrade’s reduction in pricing across all ETFs addresses one of the major pain points for self-directed investors – selection.  Getting affordable access to the most liquid or popular ETFs, or those with low management fees is no longer a problem for Questrade’s clients under this new pricing structure.

How Low Can You Go?

Of course, the other providers of commission free ETFs may be expected to follow suit with some improved ETF offerings of their own, but when combined with some of the lowest commission fees in the Canadian discount brokerage market, competing on pricing and selection will be difficult.

We’ll be watching to see how the other discount brokerages respond, but for now it is clear that the race for Canadian investors’ business has touched off a race to the bottom on fees.

Reference Links:

Questrade Community post announcing free ETF buying – Jan 30, 2013

David Francis – The ETF Boom. Exchange-traded funds are increasingly popular but severe risks exist. June 18, 2012

Megan Harman. Global ETF Assets Hit an All Time High. September 7, 2012

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Discount Brokerage Deals & Promotions – February 2013

ArchivedDealsThis February will be the busiest month for football, love and RRSP deals.  Winning new business is clearly on the minds of big and small discount brokerages with a number of promotions aimed squarely at Canadian investors looking to open RRSP accounts.

Kicking off the RRSP-specific deals are a couple transfer deals from the usually quiet TD Direct Investing (formerly TD Waterhouse Discount Brokerage) and Credential Direct.   Credential Direct’s offer of $200 to cover transfer fees for accounts of $10,000 and over is currently the most competitive transfer fee deal. For those looking to transfer with less than $10,000 but who have more than $5,000, Credential Direct is also offering to waive the first year’s account administration fee of $50.  TD Direct Investing, by comparison, is offering to cover up to $150 in transfer fees for a $25,000 account.

Of course, February is also about love so what better way to show someone you care than offering them a referral to your favourite discount brokerage?  Refer-a-friend programs appear to be the preferred strategy for  National Bank Direct Brokerage, Questrade and Scotia iTrade. National Bank Direct Brokerage is willing to pony up $200 for referral business with $100 going to each the referrer and referee, with a catch being that payment will take place after 6 months and a cap of $1000 in referral payouts per client.  The 6 month payout time will give both parties plenty of time to think about where to spend their bonus dough. The Scotia iTrade and National Bank Direct Brokerage deals do come with a number of strings attached (the fine print alone on the iTrade deal is over 1400 words long vs ~450 words on the National Bank Direct Brokerage deal) so be sure to read the details carefully and while fully alert. Questrade’s offer of commission credits for referral business – $50 in credits for the referee and $100 for the referrer,  is much simpler to follow and even comes with a link to share the deal.

We’ll keep our eyes peeled for any more promotions, deals and special offers during February for investors and if you know of any we’ve missed, feel free to message us to have them added.

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
Open and fund a new registered, margin or TFSA account and fund it within 30 days with either A)$1,000 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 RSP2013 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) $1,000 B) $25,000 C) $30,000 Unlimited trading (No commissions charged on any trades placed) A) 31 days B) 62 days C) 90 days Unlimited Free Trades Promotion March 1, 2013
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 February 28, 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
Open and fund a new account with National Bank Direct Brokerage with $25 000 or more, and your commission rate for 6 months will be $6.95 Flat. $25,000 $6.95 Flat commission rate 6 months Take Control of the Markets Promo February 28, 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 an account with either: A) $25,000 or more and receive a $100 cash credit and 25 free equity trades. or B) $50,000 or more to receive $200 cash back and 50 free equity trades. A) $25,000 B) $50,000+ A) $100 cash credit + 25 free equity trades ($823.75 (min)total value @ standard equity rate $28.95) B) $200 Cash credit +50 free equity trades ($697.50 total value @ active trader rate $9.95) 60 days Cash back offer March 1, 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 February 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
Transfer an RRSP worth at least $10,000 to Credential Direct and they will cover up to $200 worth of transfer fees. The promo code RRSP must be used on the application $200 $10,000 RRSP Transfer Promo March 1, 2013
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 March 1, 2013
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Discount Brokerage Deals & Promotions – January 2013

ArchivedDealsHappy New Year to all of our deal hunting readers and welcome to another edition of Discount Brokerage Deals & Promotions. One of the most popular New Year’s resolutions for folks is to slim down. As it turns out, the number of deals being offered by discount brokerages has also slimmed down.  Right out of the gate, we noticed that a couple of discount brokerages did not update their deals section (Scotia iTrade and Virtual Brokers) and still had posted deals that expired on December 31st, 2012.  We’ve since let them know and will update our deals section when we hear back from them. Update: as of January 7th, it appears that Scotia iTrade has updated their promotions page and extended out their 100 days of free trading offer to March 31st, 2013. Virtual Brokers has yet to update their promotional offer.

Those discount brokerages that did start off 2013 on the right foot were CIBC Investor’s Edge and Disnat, both of whom have extended out their respective promotional offers well into 2013 (and had their sites updated by Jan 1, 2013).   Interestingly, BMO Investorline‘s 150 trade offer expires on January 3rd so we’ll also be on the look out for the update on whether this deal is extended out or replaced. Update: As of January 4th, BMO Investorline has launched a new deal offering 250 free trades or 250 free trades + $250 depending on whether you deposit $100,000 or $250,000 respectively. Their advertisement might be a bit confusing as it advertises 90 days of free trades, however the fine print reveals that is actually 90 days to use up to 250 trades. It is NOT an unlimited trading offer. Be sure to read the fine print carefully as there are a number of conditions attached to this offer.

One of the big deals we’re tracking is Questrade‘s unlimited trading offer which is due to expire in mid-January.  As we mentioned in our outlook for 2013, we think that there will be more discount brokerage deals coming down the road especially now that TFSA contribution limits have been raised and because we’re headed into RRSP season.

Check back here throughout January as we get some more visibility on upcoming discount brokerage deals, promos and special offers for 2013.

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
Open and fund a new registered, margin or TFSA account and fund it within 30 days with either A)$1,000 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 INFINITE 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) $1,000 B) $25,000 C) $30,000 Unlimited trading (No commissions charged on any trades placed) A) 31 days B) 62 days C) 90 days Unlimited Free Trades Promotion January 15th, 2013
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
Get up to 100 free trades when you fund an account with a minimum of $10,000. You must open this account by November 15th, 2012 and fund it with $10 000 within 30 days of account activation to qualify. You must enter promo code “100FREEQ”. There are quite a few other details, including a minimum balance requirement, so be sure to check the details link. $10,000 100 free trades ($495 value @ cheapest commission rate) 60 days 100 Free Trades January 15, 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 February 28, 2013
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $25,000 before December 31, 2012 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
TD Waterhouse Open an account with $25,000 or more and receive 10 free trades. This offer is only valid at the downtown Vancouver TD Waterhouse Investor Centre. 10 trades must be completed within 6 months of account opening; reimbursement based on $9.99 commission rate. $25,000 10 free trades ($99.99 value at stated commission rate) 6 months scanned photo of flyer none
Open and fund a new account with National Bank Direct Brokerage with $25 000 or more, and your commission rate for 6 months will be $6.95 Flat. $25,000 $6.95 Flat commission rate 6 months Take Control of the Markets Promo February 28, 2013
Open an account with either: A) $25,000 or more and receive a $100 cash credit and 25 free equity trades. or B) $50,000 or more to receive $200 cash back and 50 free equity trades. A) $25,000 B) $50,000+ A) $100 cash credit + 25 free equity trades ($823.75 (min)total value @ standard equity rate $28.95) B) $200 Cash credit +50 free equity trades ($697.50 total value @ active trader rate $9.95) 60 days Cash back offer March 1, 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 February 1, 2013
BMO InvestorLine Open a new account with $100,000 or more (or for existing clients make a deposit of $100,000 or more) and get $150 cash back and 150 free trades. Use the promo code BONUS when opening a new account (or when making a new deposit of $100,000 or more). See the details link for qualifying account types and conditions. $100,000 $150 cash 150 free trades ($1492.50 value) 60 days Path to Online Investing Promotion January 3, 2013 [EXPIRED]
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 February 1, 2013
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Discount Brokerage Weekly Roundup – Dec 16th 2012

As 2012 draws to a close, it looks like the discount brokerage industry is going into autopilot.  This past week saw the expiry of a couple of promotions. First, Scotia iTrade’s 100 days of unlimited trading offer expired this week.  This leaves Questrade as the only discount brokerage currently offering unlimited trades.   Speaking of Questrade, their “Ring the bell with Questrade” promotion also ended this week. The winner of this contest will be announced this upcoming week on December 20th.

Jitneytrade announced this past week that they’re “going green” by offering paperless statements and  trade confirmations.  If you choose to continue to use paper statements and confirmations, however, be prepared to shell out some major green – paper statements will cost $20 and trade confirmations $1 each starting February 28th 2013.  For more information – click here.

Best Discount Brokerage Tweet of the Week

Thinking about investing in “penny stocks?”  A lot of investors are lured into the low prices and potentially huge gains – but often overlook the bigger risks.  This week’s tweet by National Bank Direct Brokerage’s parent @nationalbank was a good overview of some reasons to think twice before turning to penny stocks.  Read the tweet here.

Event Horizon

This week (December 18th), Morningstar’s Director of Economic Analysis, Bob Johnson, will be presenting a forecast for the economy and investing in 2013.  For more details, click here.

The People Have Spoken

A really interesting discussion was sparked by a Red Flag Deals forum member asking about why retiring baby boomers or ‘young guns’ appear to not be investing?  Check out what dozens of folks had to say about this here.

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Discount Brokerage Weekly Roundup – Dec. 7th 2012

Interactive Brokers made the news this week as it released its trading metrics for the month of November.  While not a perfect proxy for the rest of the investment market, Interactive Brokers’ transaction volumes, known as Daily Average Revenue Trades (DARTs) help to provide an indirect measure of the ‘health’ of the stock market participants including discount brokerages.  November’s data from Interactive Brokers show a substantial month over month increase (14%)in DARTs from October to November.   Even more interesting is the rise in trading volumes since the lows in August.  DARTs are now up over 23% from the August lows signaling an increased level of participation in the financial markets.   DARTs cover several types of trading including futures contracts, options contracts and trading in shares. Another metric that seems to validate that observation is the increasing number of new account openings.  As this is the picture for US investors, this data could be a signal that investors are jumping into the market ahead of the fiscal cliff or are they tactically preparing themselves to be able to respond.   A recent report by Investor Economics has mentioned that Canadian investors have sat on the sidelines for quite some time presenting some challenges to the Canadian discount brokerage industry for commission revenues.

A Canadian discount broker that we do not hear about very much, CIBC Investor’s Edge, is getting a makeover.  The new interface is appears to be an improvement from its prior layout, with some clearer and more intuitive sections.  For a peek at the site and its new features, click here.

Event Horizon

As we round out the year, webinars and seminars are giving way to Christmas/holiday cheer and holiday parties.  The next event of interest is the seminar, hosted by Disnat and presented by iShares on using ETFs in an equity portfolio on December 19th.  For more details, click here.

Best Discount Brokerage Tweet of the Week

It was slim pickings from the discount brokerages this past week in tweets.  One interesting tweet that linked to a great moneyville article on ETFs came from Scotia iTrade.  To read the tweet and article, click here.

The People Have Spoken

This  week, a discussion focused on the two discount brokerages that offer very low commission charges on trading, Interactive Brokers and Virtual Brokers.  Read what users had to say in the RedFlagDeals  investment forum about Interactive Brokers vs Virtual Brokers.

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Special Series: J.D. Power & Associates – Discount Brokerage Rankings Explained Part 2

JD-Power-Data-Ranking - Discount Brokerage Rankings

If you missed the first part of our J.D. Power & Associates Discount Brokerage Rankings series, read it here.

The two main objectives of this section are to provide readers with:

  1. A look at the overall discount brokerage marketplace to see what, if any trends in investor satisfaction there are that matter to consumers
  2. A detailed look at the company results in the survey to see how each company has performed over time so that consumers get an idea of the responsiveness of a particular discount brokerage to the needs of investors

When choosing a discount brokerage, you can either “go it alone” and find out for yourself what a discount brokerage is like or you can turn to the opinions of other self-directed investors to help you decide. Even though both approaches exist, surveys of Canadian investors have shown that many of them like to do research, turning to friends or family for recommendations, as well as third party reviews and research, before making a choice to go with a particular discount broker. While external opinions are valuable sources of information to help avoid potentially costly or unpleasant experiences they can also help to find a service provider that can hopefully keep you a satisfied customer.

Looking at what thousands of other self-directed investors have said about their experiences can certainly shed light on what you’re likely to encounter with a particular discount brokerage and at the very least help to provide some context around informal discussions with friends or family. There are some questions, however, you may want to consider when looking to these sources. Questions such as:

  • How well does the source I’m looking at consider and describe my needs?
  • If they are a friend, family member or opinion in a forum, how long has this person been a client with the company and
  • What, if any, issues have they encountered with the service/experience along the way?

Also, because numbers and statistics often get presented to support marketing and sales, we thought it prudent to state several “qualifiers” readers need to consider about such numbers up front instead of at the end. First, it’s worth stating that the range of data this section references covers four years of results of the investor satisfaction survey. This four year time period is a small time frame, especially since the interval that the survey is conducted on is annual. Second, the number of companies in the ‘pool’ is fairly small so we must be cautious about inferring too much about the performance numbers and possible trends of the industry as a whole. Instead, looking at a particular company’s change in performance over time is probably more reliable an approach than comparing companies to one another. Lastly, not every year had the same number of discount brokerages covered. In 2009 and 2010 for example, the number of discount brokerages covered by this survey was 6 and 8 respectively. Smaller or newer discount brokerages, therefore, are less likely to appear on the survey and so the inferences made about “the industry” actually apply to the discount brokerages covered in this list.

Investor satisfaction with the overall discount brokerage industry in Canada

Over the four years the investor satisfaction survey has been conducted, more than eleven and a half thousand individuals have been consulted about discount brokerage services in Canada.

Canadian Discount Brokerage Industry - Investor Satisfaction Scores 2009-2012
Figure 1: Canadian Discount Brokerage Investor Satisfaction Scores from 2009-2012

When looking at the four year picture, the average industry satisfaction scores have fluctuated year over year, bouncing between a low of 679 in 2011 and a high of 707 in 2010. The four year average score for the industry is 696 (out of 1000) with an average standard deviation of 27.5 points. When graphed, it is clear that as a group no clear industry-wide trends in the satisfaction of Canadian discount brokerage investors are visible.

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Discount Brokerage Deals & Promotions – December 2012

For self-directed investors, it seems like the gift of discount brokerage deals has already been given in November. As it stands, the deals offered by discount brokerages into the end of the year are largely carried over from last month.

The most noteworthy deal announced mid-November was the unlimited trading offer by Questrade. Similar to the Scotia iTrade offer, these deals offer unlimited trading but for a limited time. If you’re looking for promos that have a much longer time frame to use up those free commissions, the deal by Disnat (celebrating their 30th year) gives investors up to 6 months. National Bank Direct Brokerage is offering its best rate on commissions for 6 months.

A number of deals (six by our count) will be expiring in December. These deals include the Scotia iTrade unlimited trading offer for 100 days which expires December 14th and deals from CIBC Investor’s Edge, Disnat, BMO Investorline, Virtual Brokers, Scotia iTrade and Credential Direct coming to an end by the end of December.

For those looking for a deal, it is an interesting time of year because on the one hand there are some compelling offers, but on the other, the busy season for attracting new customers (i.e. RRSP season) is right around the corner and so there is likely something in the works with most discount brokerages.

With the introduction of unlimited trading, the bar for discount brokerage deals has definitely been raised by Questrade and Scotia iTrade. Whether or not that is enough of an incentive to get consumers to choose a discount brokerage based on this kind of promo, however, is something we’ll find out if these offers persist. One thing is certain going into the holidays, those discount brokerages not willing to give deals or promos are also those less likely to receive the business of self-directed investors looking for a little holiday cheer.

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
Open and fund a new registered, margin or TFSA account and fund it within 30 days with either A)$1,000 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 INFINITE 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) $1,000 B) $25,000 C) $30,000 Unlimited trading (No commissions charged on any trades placed) A) 31 days B) 62 days C) 90 days Unlimited Free Trades Promotion January 15th, 2013
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
Credential Direct If you are a client of North Shore Credit Union, you can qualify for 5 free trades as well as a $125 transfer fee credit to cover transfer fees from another discount brokerage ($10,000 minimum transfer in value). To qualify, you must enter NSCU-05Trades on your application. $10,000 5 free trades must use trades by Feb. 28/2013 North Shore Credit Union Promo December 31, 2012
Get up to 100 free trades when you fund an account with a minimum of $10,000. You must open this account by November 15th, 2012 and fund it with $10 000 within 30 days of account activation to qualify. You must enter promo code “100FREEQ”. There are quite a few other details, including a minimum balance requirement, so be sure to check the details link. $10,000 100 free trades ($495 value @ cheapest commission rate) 60 days 100 Free Trades January 15, 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 February 28, 2013
TD Waterhouse Open an account with $25,000 or more and receive 10 free trades. This offer is only valid at the downtown Vancouver TD Waterhouse Investor Centre. 10 trades must be completed within 6 months of account opening; reimbursement based on $9.99 commission rate. $25,000 10 free trades 6 months scanned photo of flyer none
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $25,000 before December 31, 2012 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. 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 December 31, 2012
Open a new account with $25,000 before December 31st, 2012 and receive 150 trades free. (Applies to the first 150 trades placed within 60 days of account opening at a maximum of $6.49 per trade with a total maximum value of $973) $25,000 150 free trades ($973 value @ $6.49 commission rate) 60 days New Account Promo December 31, 2012
Open and fund a new account with National Bank Direct Brokerage with $25 000 or more, and your commission rate for 6 months will be $6.95 Flat. $25,000 $6.95 Flat commission rate 6 months Take Control of the Markets Promo February 28, 2013
Open an account with either: A) $25,000 or more and receive a $100 cash credit and 25 free equity trades. or B) $50,000 or more to receive $200 cash back and 50 free equity trades. A) $25,000 B) $50,000+ A) $100 cash credit + 25 free equity trades ($823.75 (min)total value @ standard equity rate $28.95) B) $200 Cash credit +50 free equity trades ($697.50 total value @ active trader rate $9.95) 60 days Cash back offer December 31, 2012
BMO InvestorLine Existing BMO Investorline clients who refer a ‘friend’ who then opens an account, (and the “friend” too) can qualify for a cash bonus, depending on the deposit amount. For deposits of between $50,000 and $249,999, the referral bonus is $200 and the “friend” receives $50; for deposits of over $250,000 the referral bonus is $300 the “friend” receives $100. To qualify for the deal, the referral reference code needs to be included in the application – see the details link for terms and conditions. $50,000 $50 cash (friend) $200 cash (referrer bonus) 60 days (see details) Refer a Friend Promo December 31, 2012
Scotia iTrade Open one or more new Scotia iTrade account(s) by November 16, 2012 with at least $50,000 in cash or net equity and receive 100 days of commission free trades. Also, you get to try FlightDesk free for100 days. To qualify you must enter promo code ” F’12 OFFER” when submitting new account application. See details link for more information. $50,000 unlimited free trades 100 days 100 Days Commission-Free December 14, 2012
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 December 31, 2012
BMO InvestorLine Open a new account with $100,000 or more (or for existing clients make a deposit of $100,000 or more) and get $150 cash back and 150 free trades. Use the promo code BONUS when opening a new account (or when making a new deposit of $100,000 or more). See the details link for qualifying account types and conditions. $100,000 $150 cash 150 free trades ($1492.50 value 60 days Path to Online Investing Promotion January 3, 2013

Transfer Fee Deals

Below are the discount brokerages that are offering 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
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
Virtual Brokers will cover transfer fees from your transferring institution to a maximum of $150 per account. This offer is only applicable to accounts opened with at least $25,000 in equity before December 31, 2012. $150 $25,000 Transfer Fee Promo December 31, 2012
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 December 31, 2012
Credential Direct If you are a client of North Shore Credit Union, you can qualify for a $125 transfer fee credit to cover transfer fees from another discount brokerage ($10,000 minimum transfer in value). To qualify, you must enter NSCU-05Trades on your application. $125 $10,000 North Shore Credit Union Promo December 31, 2012

 

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Discount Brokerage Weekly Round Up – Nov. 23rd 2012

This week the biggest news for discount brokerages came in the form of the 2012 Globe and Mail Canadian discount brokerage rankings.  Rob Carrick’s annual survey of the Canadian discount brokerage industry looked at 12 firms this year. The top spot went to Virtual Brokers which narrowly edged out the six year champ, Qtrade while the bottom ranking company was HSBC InvestDirect.  The average score (out of 100) was 61.2% (with a standard deviation of 10.0 for those who mind the stats).   What was interesting about looking at the stats was how most of the companies performed about the same (statistically speaking) except for Virtual Brokers and Qtrade.  What this means for self-directed investors is that the difference between 3rd and 12th is not that significant and that even 1st and 2nd are only slightly more distinguishable than the rest.  To read more about the rankings and our analysis, click here.  Also, we put together a sortable version of the table of this year’s results to help make it easier to compare.

Another very big piece of news from discount brokerage deals section was the announcement by Questrade of the unlimited trading promotion.  Scotia iTrade was the first to offer unlimited trading for 100 days, however like all innovations in this very competitive market, there’s a good chance that others will try to do the same. What sets this deal apart from the one offered by Scotia iTrade is that Questrade is offering unlimited trading for account deposits  as low as $1,000 and $25,000 whereas Scotia iTrade’s deal requires a minimum deposit of $50,000. Not all self-directed investors really need or want unlimited trades, especially if it is only for one or two months, but for some it is one more reason to lean towards Questrade.

Event Horizon

The upcoming week in events is a bit light as we come to the close of November and financial literacy month.  One interesting looking seminar that is coming up this week is geared towards options trading.  The TMX group will be presenting via Scotia iTrade, Understanding the Collar Strategy.

Best Canadian Discount Brokerage Tweet of the Week

This week’s best discount brokerage tweet again comes from the affiliate of Disnat Direct,  @DesjardinsGroup.  We saw this week’s tweet as a way to spread a little goodness for a worthy cause.  Desjardins will be donating $50,000 to cancer research across three organizations that gets the most votes here.

The People Have Spoken

It was a very big week for the Canadian discount brokerage space with the release of the 2012 Globe and Mail brokerage rankings.  A lot of buzz was created around whether these were actually seen as valuable or not.  This thread in the Red Flag Deals personal finance forum was a particularly heated conversation.

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Globe and Mail 2012 Canadian Discount Brokerage Rankings Review

Virtual Brokers Takes Top Spot

The 2012 Globe and Mail Canadian discount brokerage rankings are out as of today with Virtual Brokers claiming the top spot and displacing the 6 year “reigning champ” of this survey, Qtrade (which came in second), by a razor thin margin.

Becoming Globe and Mail’s top ranked brokerage, albeit barely, was a pretty lofty achievement for Virtual Brokers for a number of reasons, not the least of which is because they were sitting at the bottom of the ranking back in 2010. This year (2012) marks only the third year in which Virtual Brokers has been included in the ranking, so for such a recent entrant into the ranking pool to move up so quickly is certainly noteworthy.

So what took Virtual Brokers from the bottom of the pack in 2010 to being crowned the best Canadian discount broker for 2012?  Certainly credit is deserved where credit is due.  Virtual Brokers has aggressively priced their services far lower than many of their peers and started to match the types of services found at their competitors.  Of course, it also helps to understand how the types of categories that went into this ranking could impact the outcome. In order to understand what being the “best discount brokerage” really means, we took a closer look at the rating system used by the Globe and Mail’s Rob Carrick.

Looking at the Ranking Structure

The following five sections (and the percent they play in the scoring) are used in the Globe and Mail discount brokerage ranking to assess each Canadian discount brokerage:

  1. Costs – 25%
  2. Account Information – 25%
  3. Trading – 20%
  4. Tools – 20%
  5. Innovation -10%

For this ranking, the two factors that heavily influence the overall ranking are costs and account information (combined they form 50% of the score).  The last three categories of trading, tools and innovation combine to form the other 50% of the ranking.  Interestingly, when looking at the definition of innovation: “Which firms are leaders in terms of cutting prices and introducing new services, and which are followers?” price comes in again.

Thus, the prices that a brokerage charges for its services end up having a bigger influence in the overall score relative to any other single component.  Virtual Brokers had the strongest showing on fees and innovation and tied for first in the “trading” category which likely gave it the edge it needed to squeak out ahead of Qtrade.  Qtrade shone brightest in the “account info” category.  Sometimes the overall ranking can mask some particularly noteworthy performances.  On the good side, buried in the results is an impressive perfect 20 out of 20 that TD Waterhouse managed to achieve in the Tools category (even though they were ranked 6th overall).  Conversely, the lowest ranking was given to HSBC InvestDirect which ‘earned’ a particularly biting comment: “They win in one respect – most annoying log-in process.”

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Questrade to offer unlimited free trades

We spotted the latest deal offered by Questrade – and it is a big one.  On the heels of Scotia iTrade’s offer of 100 days of unlimited trading, Questrade has responded by offering up to 3 months with unlimited trades.  While a slightly less amount of time than Scotia iTrade’s deal (100 davs vs ~90 days), the Questrade deal offers the potential for unlimited trading with much lower funding requirements for two of the three promotion levels.   Here’s how the deal breaks down:

  • With $50,000, you get 3 months unlimited trading
  • With $25,000 you get 2 months unlimited trading
  • With $1,000 you get 1 month of unlimited trading

The $1,000 deposit level is among the best deals we’ve seen going and the $25,000 is also pretty competitive.  For more info, check out Questrade’s Infinite Deal page here.

To compare this deal to other discount brokerage promotions, check out our current deals page here.