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TD Direct Investing

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Discount Brokerage Weekly Roundup – July 25, 2014

As we cruise into the end of July, every trader’s favourite season is drawing to a close. No, it’s not summer but rather earnings season. Depending on which side of an analyst’s estimate a company falls, the news may be great or simply a great disappointment. Regardless, the lesson the market forces everyone to learn over and over again is to keep your expectations realistic.

In this week’s roundup, we look at some of the interesting expectations that Canada’s online brokerages have created and are fanning the flames on. In particular, we take a brief look at 2 fierce competitors and their latest features to be released after which we quickly scan through this month’s expiring deals and round out with an #FTF (From the Forums).

Looking for a Hot Date?

Desjardins Online Brokerage’s new investor education calendar may have several to offer. After receiving a significant makeover, the investor education calendar from Desjardins Online Brokerage launched and is poised to create a bit of a stir across the online brokerage industry. Specifically, with the recent commission price drops across the industry seeming to cool-off, online brokerages will be looking to other components of their business to highlight or improve in a bid to differentiate themselves from one another.

For those discount brokerages that are heavily invested in providing education to online investors (such as National Bank Direct Brokerage, Scotia iTrade and TD Direct Investing) the news probably signals time for some ‘fresher’ thinking when it comes to user experience and investor education.

Read more about the new features of the Desjardins Online Brokerage education calendar here.

It’s All About the Benjamins

National Bank Direct Brokerage has officially joined the ranks of online brokerages that offer US dollar registered accounts. As you can see from a screenshot of their site below, the announcement marks the formal roll out of this account option for RRSP, RESP, TFSA as well as several other popular registered account types.

The ability to have USD registered accounts is a sought after feature with many investors that trade/invest in many US listed securities and who want to avoid some of the steep currency conversion fees imposed by brokerages.

As was reported in February, National Bank Direct Brokerage has been rolling out this feature in phases and with feature how hitting the front of their website, it won’t be long before we start to see more about it and perhaps a response from those brokerages who still don’t offer this account type to investors.

Should They Stay or Should They Go?

With the end of the month just around the corner, there are usually some deals or promotions timed to expire. The two that are currently set to go at the end of this month are the 50/50 offer from BMO InvestorLine and the iPad Mini offer from Questrade. Of the two, the iPad Mini offer has expired once before only to be resurrected. We’ll see which (if either) get a time extension but for the moment both of these deals are scheduled to be in their final days.

From the Forums

This past week across the investor forums saw the usual interesting assortment of questions regarding DIY investing. On the menu for this roundup, we look at where to park cash in a trading account, how Virtual Brokers clients

Cash is king, but where does his highness hangout when not being put to work?

In this post from RedFlagDeals, an investor is looking to squeeze some extra juice out of some cash sitting in their trading account. The community chimes in with some interesting suggestions to try and get that cash to work.

The pricing plan is right

In another thread from RedFlagDeals, the cost of buying and selling ETFs at Virtual Brokers got put under the microscope. Because of their different pricing plans, clients can pick which commission charge works best for a particular trade. Find out what strategies folks ended up suggesting when trading ETFs by clicking the link above.

Lather, rinse, repeat

The ever popular Gambit trade between dual listed stocks was the topic of this post on the Canadian Money Forum. Specifically, a user shared with the community their experience of a bit of sticker shock when trying to do a Gambit in a non-registered account with TD Waterhouse (TD Direct Investing). Fortunately the other forum members chimed in with some helpful tips on how to get it done right.

That does it for this week’s roundup. With the US and Canadian markets (and even Facebook) hitting new highs again, it seems there might be cause to celebrate going into the weekend. Strangely, it seems like Mr. Market and traders don’t exactly know what to expect from one another – kind of like the high five moment gone awry.

 

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Looking for a Hot Date? Desjardins Online Brokerage’s Education Calendar Gets a Makeover

In a landscape littered with commission price drops, lowering price can only go so far in winning the attention and loyalty of potential and existing DIY investor clients. So, what is the secret ingredient Canadian online brokerages need in order to win the attention of self-directed investors? It’s no secret actually – build something really helpful.

With the update of their investor education calendar, Desjardins Online Brokerage has taken a bold move in committing to user experience for accessing education events. Their competitors, most notably those with significant investor education offerings such as National Bank Direct Brokerage, Scotia iTrade and TD Direct Investing, will most certainly be less enthusiastic about the new calendar roll out however for self-directed investors, the change is a signal of something significant across the industry.

Think Outside the Box

Of course, there are those that would ask (and rightfully so) what’s so exciting about a calendar? Well, coming from a site that continues to compile investor education events from Canada’s online brokerages, there’s actually several very interesting things the new calendar signals.

First, with pricing becoming less of a distinguishing feature between providers, there is likely going to be more of an effort required by Canada’s online brokerages to stand out.

This calendar is yet another example of benefits to investors that competition amongst brokerages brings. User experience and the ‘look and feel’ of an online brokerage on the front end are going to matter more.

Another important angle to this calendar launch is that it signals a significant commitment to investor education.

Desjardins Online Brokerage currently runs in the order of 350 events per year. TD Direct Investing, by comparison, runs closer to 3000 per year. While the ‘number’ of events may not be the most telling indicator, it does communicate the scale at which investor education has to be provided and resourced. For Desjardins Online Brokerage, however, they’re continuing to bet big on education, as seen with their partnerships with Stockscores, DayTrader Canada and a potentially wider set of education partners.

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Is Eight Enough? Credential Direct Drops Commission Pricing

The price war between Canadian online brokerages just got a little hotter as Credential Direct announced a major shift in its pricing structure and a substantial commission price drop.

Effective July 9th the standard commission per online equity trade at Credential Direct is $8.88. That is a significant drop from their previous standard commission price of $19 per trade and also a reduction in price from their previous ‘best price’ of $9.95. To boot, it is also strategically positions Credential Direct as a lower cost alternative to many of the $9.95 standard commission offers that are currently in play across the online brokerage space.

Drop it Like it’s Hot

The new pricing structure offered by Credential Direct is almost a complete overhaul from its predecessor.

First, the distinction between “active trader” and “standard user” has been removed. That means that all clients, regardless of trading activity level, are offered the best possible price on an online equity trade commission and online options trade.

Another major change is that all online equity trades are $8.88 regardless of the price of the stock/ETF being traded. This is especially welcome news for those who like to dabble in low dollar value shares, ‘penny stocks’ or junior companies where the size of the orders can be quite high. Under the previous commission schedule, non-active users could pay up to $250 per trade depending on the size of the order and the price of the stock.

In many ways, the new pricing plan was the result of a major shift at the beginning of the year from many of Canada’s large bank-owned brokerages. What is particularly interesting, however, is that Credential Direct didn’t just match the offers – they actually bid underneath them.

How Fortun-8

Another interesting touch was the choice to use all 8’s in the pricing. The use of then numbers seems like a clever way to add some cultural appeal to the many East Asian investors that see the number as a sign of good fortune. Given the significant footprint Credential Direct has in British Columbia the new pricing may indeed prove to be self-fulfilling.

Of course other institutions, that focus heavily on connecting with East Asian or Chinese clientele, such as HSBC InvestDirect, have incorporated the number 8 into their pricing schedules for similar reasons (and another example of a ‘fortunate’ coincidence: TD Direct Investing’s Investor Centre address in Downtown Vancouver is 888 Dunsmuir St).

The Tradeoff

While the lowering of the commission price is likely welcome news for many who actively trade, there is a tradeoff that the new pricing structure imposes: administrative fees.

Specifically, for clients who have less than $15,000 in combined assets with Credential Direct, they may be subject to a $25 per quarter administrative fee. Historically Credential Direct did not charge administrative/activity fees but it looks like they’re banking on lower commission pricing offering more competitive value. Other fees are also increasing – especially for telephone assisted trades and some administrative services. These other fees are scheduled to take effect in October of 2014.

Like a couple of other online brokerages, however, Credential Direct does offer clients who fall under the $15,000 balance threshold a couple of ways to be exempt from the administrative fee.

For those with less than $15,000 in combined assets, the first way to be exempt from the administrative fee is to make at least two commission generating trades per quarter. According to this scheme the annual cost of placing two trades per quarter at the new commission price would be $71.04 (which is cheaper than paying the $100 per year for passively holding).

The second way for clients with sub-$15,000 accounts to avoid the administrative fee is to register for a pre-authorized contribution plan of at least $100 per month. What is great about pre-authorized contribution plans is that they create a structured and scheduled way to put some money aside, so having this option is a plus for those just starting out with DIY investing.

New clients (defined as clients that have accounts that are under 6 months old) will also be exempt from the administrative charge.

The Bottom Line

For most online investors, getting a break on commission pricing is welcome news. Other brokerages – such as the bank-owned brokerages as well as (and especially) the independent brokerages have fewer reasons to smile.

The drastic overhaul of Credential Direct’s pricing model is going to make it much easier for investors to understand the commission pricing (and to afford it) – something that the marketplace is clearly communicating to the Canadian online brokerage community.

Credential Direct has been extra bold by challenging the $9.95 standard price floor established by the bank-owned brokerages earlier this year. Whether or not fortune favours their boldness remains to be seen but at the very least they’ve got some lucky numbers to help their chances.

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Discount Brokerage Weekly Roundup – June 27, 2014

We kick off this week’s discount brokerage roundup with a little investing inspiration from the beautiful game. The inspiration is not that one can stare at a screen for hours only to see nothing change (hint hint to the traders out there) but rather that when things are fiercely competitive, don’t put it past opponents to try and take a bite out of one another’s business.

In this week’s roundup we take a quick tour through the deals set to expire as we head into July. Deals and promotions are where brokerages seem to be doing the most visible kinds of competing. Education will also be another area that is of interest to brokerages and we take a look at one major player taking an interest in providing investor education to a key market. Switching gears slightly, we take a look at competition of a different variety that has definitely caught the attention of many investors lately. Finally we cap the roundup off with an interesting brokerage comparison from the forums.

Deals Going on a Staycation

For many summer is a time to gear down. What is interesting to note about the Canadian online brokerages is who is still actively offering deals and promotions throughout a typically quiet period.

A quick look at our deals and promotions section for June shows an interesting ‘cluster’ of deal providers. Notably Questrade, Scotia iTrade, National Bank Direct Brokerage, BMO InvestorLine and Disnat (or under half of all brokerages) all have advertised deals and promotions.

Of the deals currently being offered, Questrade has 7, BMO InvestorLine 4 and Scotia iTrade has 3. Looking at the expiry dates on these offers, however, all of iTrades offers are set to expire whereas only one of Questrade’s (the Amazon gift card) is. Virtual Brokers’ commission-free trade offer is also set to expire at the end of June.

It will be interesting to see what Scotia iTrade decides to do for the rest of the summer. If history is any indicator, the Refer-a-Friend is likely to be extended. Whatever the case, it’s clear to see that those brokerages that either want to or have to grow their business are not taking it easy.

All the Saving Ladies

Thanks to Beyoncé yet again for a headline inspiration. Of course it is not entirely unrelated as this past week, the world famous artist may have had her own thoughts to share on her financial future at an interesting event sponsored by TD. Specifically there was an interesting session called #YourStoryYourFuture which focused on empowerment and encouraging industry to focus on financial planning for women.

Over the past year we have noted that TD Direct Investing has offered a number of “women focused” investing education sessions and so this recent event (which is reviewed here) appears to be part of a broader strategy to connect with women investors.

All the Leaves are Green

From one big green story to another. The marijuana-themed Green Rush conference took place in Toronto this past week. Conferences such as the Green Rush are fairly unique because the sector of (legal) marijuana-related investing is so new but it also is a great example of how quickly speculative capital can mobilize itself. In both Canada and the US, investment in marijuana producing companies (or those hoping to get into the business) has been one of the hottest news stories this year. Of course with a lot of the hype comes the rampant speculation.  Check out this interesting video recap on the conference from BNN and also this link on our Facebook page from Bloomberg which provides some food for thought when considering investing in the ‘Green Rush’.

From the Forums

This past week was a bit quieter around the forums. An interesting comparison question did come up in the Reddit PersonalFinanceCanada thread through and it looked at comparing two bank owned Canadian discount brokerages: TD Direct Investing and CIBC Investor’s Edge. Click here to read the interesting commentary provided by Redditors on the pros and cons of both options.

That’s a wrap for this week’s roundup. To all of our readers have a safe and enjoyable extra-long weekend. There’s plenty of screen action on the sports end but for those who are looking to get away from it all and enjoy some time on the water, here’s a little cute animal inspiration of how to do it in style.

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Discount Brokerage Weekly Roundup – June 13, 2014

The Stanley Cup, the NBA Finals and the kickoff of the World Cup – between any or all of these major events it’s hard not to think about all of the fierce competition going on. Of course competition can bring out the best and sometimes the worst in the athletes. Online brokerages also know a thing or two about the heat of competition – sometimes driving innovation for the better and other times pushing things into a bit of a grey zone in the benefits department.

In this week’s roundup the Canadian online brokerage space saw a major feature release from one player. Across the border, however, this past week provided a glimpse into the darker side of innovation in the investment industry – something that is also being debated (albeit more politely) here in Canada. Of course this week wouldn’t be complete without a venture into the ongoing debate between investors from the forums.

If You Like It, Then Put a Bracket On It

Earlier this week, Questrade announced a big feature release as part of its latest set of trading platform feature upgrades. New with this release: bracket orders. For loyal readers of the roundup, we had announced the mention of this feature last month, however the official launch came this week, complete with a news release and video tour.

Active traders in particular will take note of these order types as placing conditions on an order enables (in theory) more efficient order entry planning. That said, Questrade isn’t the only brokerage that offers these features – both TD Direct Investing (on certain platforms) and Interactive Brokers also offer these. We have also caught wind of several other brokerages also actively working to implement these order types for their clients however like this competition inspired version of the roundup has shown us, clients may not want to go without for too long – especially the active trader types.

Ghost in the Machine

The US discount brokerages look like they’ve had a rough week and next week may be a little rougher. One of the bigger stories unfolding is the increasing scrutiny being placed on the brokerages for payment for order flow.

This past week, one of the largest US discount brokerages, TD Ameritrade, decided to start disclosing exactly how much of its revenue it derives from selling order flow – and the amount was a staggering $236 million from fiscal year 2013. Just who paid that amount? Mostly large high frequency trading firms/units that were able to capture incremental gains from many of those orders. TD Ameritrade wasn’t the only one to start disclosing this information though, E*trade and Schwab also revealed some of their figures related to payment for order flow.

At the heart of the discontent is not so much that brokerages made the money, but that fairness and transparency may have been compromised. Like the competitions referenced in this week’s roundup, sometimes the drive to compete crosses into a gray zone – which is where the order flow issues reside. In Canada, there is an analogous debate going on with regards to fairness for order flow – specifically known as the “order protection rule” or OPR.

Before the summer months are over, there is likely to be much more debate on both sides of the border. For retail investors, however the decisions may end up impacting how brokerages earn some of their revenues, which may in turn, impact retail trading costs.

Taking a Breather

Another interesting data point out of the US trading market also comes courtesy of TD Ameritrade – specifically in their trading volumes. Earlier this month Interactive Brokers reported their trading figures were lower for May and it looks like TD Ameritrade also pulled back about 15% month over month and about 8% year over year. While trading volumes are still strong on a relative basis, it is still interesting to wonder whether ‘complacency’ is setting in (and showing that sometimes too much of a good thing is not a good thing).

From the Forums

Penny Pinching

In this forum post from RedFlagDeals.com, the debate on ultra-low trading costs pits two perennial competitors – Virtual Brokers and Questrade – against one another. Hear how the community provides their two-cents to the question of penny trading and whether it makes sense.

Keep Tabs

Staying within the RedFlagDeals forum, another interesting thread illustrating why it’s important to read through and understand the terms of opening an online brokerage account. Although it was started quite some time ago, it’s a great illustration of folks running into some of the same situations and how the community helped provide a little clarity. Ironically, brackets (of the literal kind) also make an appearance in this post too.

That does it for this week’s roundup. Whether you’re glued to the TV screen or you’re putting on sun screen, have a fantastic weekend and remember to say thanks to dad! (For those stuck for an idea, here are some awesome bbq’s to get you inspired.)

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Discount Brokerage Weekly Roundup – May 9, 2014

If there’s one fear that doesn’t seem to be present in the market, it appears to be a fear of heights. Once again markets are touching new highs and venturing into uncharted territory – but they weren’t the only ones.

In this edition of the roundup, we cover quite a bit of ground starting with a pair of “growth-oriented” investor conferences that took place in Vancouver. Next we check out a couple of recently launched discount brokerage promotions and contests. Following that we report on an interesting level of hiring activity by different brokerages. Finally we end with a selection of thoughts from other Canadian investors via the investor forums & message boards.

Growing Opportunities

This past week Vancouver played host to two interesting growth-themed conferences.

The first was the new medical-marijuana focused Green Rush conference. According to reports, it was surprisingly well attended for a new conference and it drew in those curious about the potential ‘pot-of-gold’ at the end of the medical marijuana rainbow. Whether or not investors will see the green in their portfolios at this point is still too early to tell, but the speculators were out sniffing around.

Another growth themed conference took place a short distance away – this one with a focus on small cap companies. The spring edition of the Vancouver Small Cap conference showcased several guest speakers along with small cap company presentations. As with conferences past, there were a number of interesting tips and perspectives on a segment of the market that is typically classified as ‘high risk’. Read our full review of the Vancouver Small Cap Conference for more information.

ETF Contest on the Horizon

Horizon’s Exchange Traded Funds (ETFs) in partnership with National Bank Direct Brokerage are once again running their Biggest Winner contest. The contest runs from market open on May 20th to market close on June 27, 2014.

This year the prizes consist of $500 cash weekly for the 6 week duration of the contest, a grand prize of $7500 at the end of the competition and a runner up prize of $2500. The grand prize will be awarded to the portfolio that has the highest account value at the end of the competition. The weekly prizes will be awarded to the individual with the highest percentage gain. For full details on the contest or to register, click here.

Cash is King

According to the following forum post via the Financial Wisdom Forum, BMO InvestorLine has another cash back promotion running (not advertised on the front-end of their website) geared towards investors depositing either $250,000-$499,999 or $500,000+. The promotion offers either $700 or $1500 cash back depending on the deposit size. Full details on the promotion are available here.

BMO InvestorLine was also busy this week announcing updates to its adviceDirect service. Specifically a number of additional updates were released that focus around personalized ETF buy and sell recommendations and an improved ability to personalize recommendations with sorting functions.

New Features Coming to Questrade

Another interesting nugget from the investor forums came from a Questrade representative posting on the RedFlagDeals forum. Specifically, the rep let readers know that bracket orders would soon be launched by Questrade as part of the new release of the IQ platform. Traders on advanced platforms such as TD Direct Investing’s ThinkOrSwim (aka the US Trading Platform) and Active Trader platforms, or Interactive Brokers’ TWS have been able to take advantage of bracket orders (aka conditional orders or One Cancels the Other orders).

Questrade bracket orders

With Questrade now providing the feature it will be an interesting selling point for their platform. There are other online brokerages (who unfortunately cannot be named at this point) who are also currently working on the implementation of bracket orders.

Hiring Spree

Two points a trend does not make. That said, there seems to have been a slightly greater than usual spike in the number of job postings coming from Canadian discount brokerages.

In a recent roundup we covered the launch of Questrade’s new careers twitter handle and in these past two weeks there have been a number of postings for sales reps and client reps.

While it is difficult to pin down exactly what is prompting the timing, hiring more staff to either service or “onboard”new clients is a sign that several brokerages are not sitting back when it comes to looking for new business.

Among the brokerages with recent hiring posts:

 From the Forums

Activity across the forums looks like it pulled back a bit – perhaps on account of the nicer weather pulling folks away from the screens and into the better weather. This week’s selection comes from the RedFlagDeals forum as well as from the Canadian personal finance section of Reddit.

Questrade vs Virtual Brokers – encore

Comparing the two low cost online brokerages is a popular source of discussion – here is yet another interesting thread comparing them both.

Keeping it Casual

As we pointed out last roundup, seeking out advice from Reddit can be a hit or miss proposition. Nonetheless a thread that crossed our radar (which can be found here) was from a user looking to find the best brokerage for a “casual investor”. The responses of users were interesting and it was also noteworthy to see that even on Reddit, folks are prone to having multiple brokerage accounts.

That does it for this week’s roundup. We wish all the moms of the bulls and bears out there a wonderful Mother’s Day. For those brave enough to be looking for a Mother’s Day themed investment or three, this interesting segment from CNBC might provide a few ideas other than flowers:

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Discount Brokerage Weekly Roundup – May 2, 2014

Dramatic playoff hockey, incredible playoff basketball, markets hitting new highs (again) and the new Star Wars cast announced. It looks like May is bringing more drama than it is flowers. As we round the corner into May, the drama among discount brokerages continues to unfold, albeit with less flare than the heart pounding finishes from both the Habs & Raptors.

In this week’s roundup we launch into May with a new set of deals and information on investor education events; we report in on the always interesting trading metrics and activity of investors stateside; we take a quick peek at another ranking of Canadian brokerages and we close off the week with some discount brokerage encounters for the far edge of the internet.

Let’s May-ke a Deal

Here in the SparxTrading camp, the beginning of the month signals a time for a new overview of discount brokerage deals and promotions. This month the deal landscape looked much the same as it did in April. With one new deal announced as we come into May, it appears that discount brokerages are digging in until June with their core offers. The only new deal to announce was from BMO InvestorLine. Click the following link to learn more about the discount brokerage deals for May 2014. And, if history is any indicator, there ‘may’ still be some deals coming down the wire.

Learning About Earning

On the educational front, it appears Canadian discount brokerages are upping the ante for their focus on providing education and support to clients looking to learn more about investing.

This past week TD Direct Investing held a 45 minute webinar covering its web-broker platform that reportedly had over 10,000 registrations (they didn’t mention how many actually logged in) – an enormous number for any kind of education focused event online or offline. TD Direct Investing has recently added webinars to their mix of educational offerings, scheduling the online events on the last Wednesday of every 2nd month (the next one will be June 25th 2014).

In addition to the brokerage-sponsored education events, investors will probably want to take note of the Small Cap Conference coming up in Vancouver next week and also the CambridgeHouse International Investor Conference in early June – both of which will offer some opportunities to learn more about investing. Check out our investor education events calendar for more details on what’s being offered where & when.

The More the Scarier

This past week, Interactive Brokers released their trading metrics for the month of April and depending on the frame of reference there is either reason for applause or reason to pause.

When compared to the same point last year, Interactive Brokers trading volumes look stunning – 20% higher Daily Average Revenue Trades (DARTs), margin loans 34% higher than last year and the number of customer accounts 16% higher. On a monthly basis, however, the gains are more modest for margin loans and customer accounts (2% improvement), and there was a 1% dip in DARTs. Additional coverage in this article from CNN also reconfirms the signals from other brokerages that retail investors are stepping back into the market.

Veterans of the market understand that having more investors in the market means a good run for a while but also the likelihood of getting close to a top. Interestingly the impact that the returning retail investor may have on the deals and promotions is that brokerages may not have to aggressively price promotions – choosing instead to focus on other features to attract and retain new customers.

Picking the Top Discount Brokerages for 2014

As part of their June issue, MoneySense teamed up with financial analysis firm Surviscor to provide their annual “Best Canadian Discount Brokerage” checkup. Author Dan Bortolotti walks through the Surviscor results while providing insights across different metrics like ease of use, banking integration, customer service, fees & commissions, reporting & record keeping and market intelligence.

Interestingly, the paradox of the ‘best discount brokerage’ shows up here in two ways.  First, there are so many ‘bests’ across different categories that it’s difficult to proclaim unequivocally that one brokerage is ultimately the best. What is ‘best’ for one investor may not be for another. Second, the data used to assess brokerages relies on history to infer quality about the present and/or future.  While that’s usually what anyone has to go on, it has been our observation when looking back at the historical analyses of the best discount brokerage rankings from years past (whether quarterly or semi-annually) who get’s crowned ‘the best’ changes quite often. In other words, pricing, features and service quality are constantly changing so titles such as ‘the best discount brokerage’ have a short shelf life in such a competitive space. Nonetheless, Bortolotti and Surviscor offered their ‘top picks’ overall as BMO InvestorLine and Scotia iTrade, with honorable mentions going to RBC Direct Investing and Qtrade Investor.

From the Forums

This week we thought we’d do something a bit different and venture out to the far reaches of the internet onto Reddit to find out what folks were saying about Canadian discount brokerages.

In this post from the Canadian personal finance section, readers chime in on BMO InvestorLine and how it stacks up to some of its competitors. As fair warning though, Reddit can be quit the wild arena for discussion and oddities so take the comments with a grain of salt.

That does it for this week’s roundup.  With a full dance card of thrilling events this weekend, good luck to the Habs & Raptors – May the Fourth be With You.

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Discount Brokerage Deals & Promotions – May 2014

[Updated: July 10, 2014]

While many in the markets might be thinking of  May as the time to head for the exits, it is interesting to see what is or isn’t being offered by Canadian discount brokerages in terms of deals and promotions. Heading into a new month, there were a few deals from April that were poised to officially expire, most notable among them the TD Direct Investing deal as well as the BMO InvestorLine 500/500 offer. Of the two brokerages, only the latter has put forward a new deal for the next 3 months – a signal that one of the bigger players is timing and structuring their offering around a typical slowdown in the activity level of account opens.

So, as we start May, it appears that most discount brokerage deals are in a bit of a holding pattern. There are still at least 12 promotions on the table from 6 brokerages so for those shopping around for an online trading account deal, there is a decent selection of offers to consider. And, with news about increased participation from retail investors back in the market, we expect brokerages to continue to compete for new clients with new offers in the not-too-distant future. As always, we’ll continue to monitor for new deals & promotions.

New Deals

Update May 20, 2014:

  • A helpful reader (thanks Pierre-Luc!) shared the news of another BMO offer aimed at higher account balances/deposits.  The “Select1500” promotion provides $700 cash back for deposits of at least $700 and $1500 for deposits of $500,000 or more. See table below for more info.

Update May 18, 2014:

  • Questrade is offering a promotion of a $50 Amazon.ca gift card for clients who open and fund a new account with at least $5,000 and who make at least 1 commission generating trade.  This promotion appears to be short lived and expires at the end of June 2014. See the table below for more details
  • BMO InvestorLine launched a new promotion aimed at younger investors (between the ages of 18 and 35) with an offer of 35 free trades and the chance to enter a contest to win $3500.  Automatic entry to the contest is granted to those opening new non-registered accounts.  Included as part of the deal is an investing eBook from the Globe and Mail. See the table below for additional details and deadlines.

The one deal that is new for this month is an offer (the 50/50 promo) by BMO InvestorLine. For self-directed investors, this is an interesting one in that the commission credit ($50) and number of free trades (50) is lower than the deal that just ended but BMO InvestorLine is offering a year-long subscription (~$240 value) to GlobeInvestor as part of the sign-up offer. The total face value of the offer works out to be just shy of $788.

Strategically this offer could work for or against BMO InvestorLine. Several of the other bank-owned online brokerages advertise in the Globe and Mail so providing new clients with more access to the paid-only GlobeInvestor means putting those same clients into a channel where other advertisers will be looking to win them back over. In one plausible scenario, it could prompt other brokerages to launch some headline grabbing deals between now and July which would certainly get those newly opened accounts thinking hard about the deal they were offered. We’ll certainly be watching closely to see what unfolds from here though.

Extended Deals

At this time it looks like most of the deals that weren’t set to expire at the end of April have expiry dates past May.

Expired Deals

[Update: July 10, 2014]

  • Editor’s Note: A representative from BMO Investorline has contacted us directly to let us know that the terms for the Select1500 and Select700 offers are being updated and that this will only be offered to select existing clients.  As such we have removed this offer from the deals sections in which it appears.

The two big deals that expired at the end of April were the offers by TD Direct Investing and BMO InvestorLine respectively.  TD Direct Investing also had an account transfer offer that expired along with their commission-rebate offer.

Discount Brokerage Deals

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
BMO InvestorLine For individuals between 18 and 35 who open a new qualifying account with BMO Investorline, they may be eligible to receive 35 commission-free trades, an eBook on investing and potentially waived account minimum fees. Use promo code “New” when signing up. Be sure to read the terms and conditions for more details on the offer. n/a 35 commission-free trades 90 days Youth Promotion October 31, 2014
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 an account with Virtual Brokers with a deposit at least $1,000 and Virtual Brokers will offer 25 commission free trades which can be used for up to 1 year. Use promo code “FTR2” when signing up. This offer is open to new clients only. Be sure to read the terms and conditions for full details on this offer. $1,000 25 commission-free trades 365 days 25 free trades offer June 30, 2014
Refer a friend to Questrade and when they open an account you receive $100 and they receive $50. To receive this deal you must be an existing client with an equity account and refer a person that does not reside with you and who has not previously opened a Questrade account. $1,000 $50 commission credit (friend) $100 commission credit (referrer bonus) 60 days Refer a friend none
Open a new account (TFSA, Margin or RRSP) by July 1 2014 A) $1000 or B) $10,000 to receive either A)10 commission-free trades or B)100 commission-free trades. The promo code QT100 must be used at time of account opening. There are many conditions attached to this offer so be sure to read the details link for more information. A)$1,000 B)$10,000 A)10 free trades B)100 free trades 60 days 100 commission-free trades July 1, 2014
Open and fund a new account at Questrade with at least $5000 and place at least one commission generating trade, and Questrade will provide a gift card from Amazon.ca worth $50. Use promo code BONUS50 when signing up. Be sure to read the full terms and conditions for more information. $5,000 $50 gift card from Amazon Receive gift card after placing 1 commission generating trade Amazon Gift Card Promo June 30, 2014
Disnat As part of their Stockscores tour, Disnat Direct is offering a “hat trick” promotion. Open a new account with at least $10,000 by June 15, 2014 and receive: $300 in commission credits, 3 months of trading at $5 commission per trade, 3 months of platform access to DDWeb/DDXtra and 1 year’s free subscription to TradeScores daily newsletter. Use the promo code “Hat Trick” when registering via phone. Read the terms and conditions for more details. $10,000 1) $300 commission credits 2) 3 months of $5/trade commission rate 3) 3 months platform access to DDWeb/DDXtra 4)1 year’s free subscription to TradeScores daily newsletter 1) 3 months Disnat Direct Hat Trick Promotion June 15, 2014
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A)$10,000 B)$50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$99.90) B) You(referrer): $100 cash or 50 free trades; Your “Friend”: $100 cash or 50 free trades (max total value: $499.50) 60 days Refer A Friend to Scotia iTrade June 30, 2014
Scotia iTrade Open and fund a new Scotia iTRADE account with at least $15,000 before June 30, 2014 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 HUN-SP. See details link for further terms and conditions. $15,000 100 commission-free trades ($999 value @ $9.99 commission rate) 60 days Scotia iTrade 100 free trades + FlightDesk June 30, 2014
Scotia iTrade Open a new account by June 29 & fund with: A) between $15,000-$99,99 B) $100,000-$499,999 or C)$500,000+ and receive either A)$50 cash back or 100 free trades B)$250 cash back or 250 trades or C)$500 cash back or 500 free trades. Also, Scotia iTrade is including 6 months free access to their FlightDesk trading platform. Use promo code: SPTRD14 for free trades and CSHSG for cash back. Be sure to read the terms & conditions on this deal. A)$15,000 – $99,999 B)$100,000 – $499,999 C)$500,000+ A)$50 or 100 free trades B)$250 or 250 free trades C)$500 or 500 free trades Cash Back: deposit by Feb 28/15 Commission Rebate: 90 days $500 Cash Back or 500 Free Trade promo June 29, 2014
BMO InvestorLine Open a new qualifying account or fund an existing qualifying account by July 31, 2014 with at least $50,000 and BMO InvestorLine will provide a $50 cash back offer, 50 commission-free trades and a 1 year subscription to GlobeInvestor. Use promo code BONUS to qualify when signing up. Be sure to read full deal terms and conditions. $50,000 $50 cash back 50 commission-free trades ($497.50 value) 1 year subscription to Globe Investor (~$228 value) Cash Back: Payout after 6 months Commission-Credits: 50 days Spring “New Investors” 50 50 Promotion July 31, 2014
Disnat Disnat is 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 Disnat300. See details link for more info. $50,000 $300 commission credit 6 months Disnat $300 Commission Credit Promo August 29, 2014
Open and fund a new account with Questrade before May 30th 2014 and receive either A)$100 or B)$250 cash back for a deposit of either A)$50,000 or more or B)$100,000 or more. This offer is open to new and existing clients. Use promo code CASHBACK250 to qualify. Be sure to read the full terms and conditions associated with this offer. A)$50,000 B)$100,000 A)$100 cash back B)$250 cash back Payout occurs within 30 days of account funding Cash Back 250 Offer May 30th, 2014
BMO InvestorLine If you refer a new client to BMO InvestorLine and they open an account with a)$50,000 – $249,999 or b)$250,000+ the referrer and the referee will both receive cash. The new account must be opened with the referral code specific to the referrer. A) $50,000 – $249,000 B) $250,000+ A) You(referrer): $200; Your Friend(referee): $50 B) You(referrer): $300; Your Friend: $100 Payout occurs after 60 days (subject to conditions). Refer A Friend Terms & Conditions October 31, 2014

Transfer Fee Deals

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Scotia iTrade Tranfer $15,000 or more and Scotia iTrade may cover up to $150 of the transfer fee. $150 $15,000 $500 Cash Back or 500 Free Trade promo June 29, 2014
Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees $135 $15,000 Transfer Fee Rebate Details none
Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150. $150 $25,000 Transfer Fee Promo 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 June 30, 2014 $150 $25,000 Transfer Fee Promo June 30, 2014
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 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 Disnat300. See details link for more info. $150 $50,000 Disnat $300 Commission Credit Promo August 29, 2014
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Discount Brokerage Weekly Roundup – April 25, 2014

When taking a position in a trend, timing is everything – just don’t tell the folks sporting a playoff beard about ‘peak beard’ though. As we wind through earnings season, it looks like more than a few traders may be trimming positions as well as beards as markets round out the week slightly in the red.

Unlike markets, this past week showed that several discount brokerages appear to be very much in the green as retail investors appear to continue the march back into the stock markets. This week also showed how a pair of Canadian online brokerages aren’t afraid to tackle the idea of commitment. The first of the pair took a look at a financial plunge many Canadians take with weddings. The second discount brokerage looked at a big commitment of another kind as they launched their new career oriented social media channel. Finally, we round out with a pair of interesting forum posts and some very bad investing advice from a new Nike commercial.

Guess Who’s Back?

From time to time we look to the activity of US investors to serve as a proxy for what might be happening with Canadian investors also. The most recent earnings figures from several of the major publicly traded US discount brokerages that came out this past week painted a relatively positive picture with strong results being posted across the board at TD Ameritrade, Schwab and E*TRADE.

Having Your Cake and Paying For it Too

A recent study sponsored by BMO InvestorLine also caught our eye this past week as it took a look at the financial plunge associated with taking the big plunge. In their news release, BMO InvestorLine reported that, on average, Canadians fork over $15,000 for a wedding, with those between the age of 18 and 44 reporting an average spend of $18,150. Fascinating as the study was, we’re not sure if many Canadians are as committed to their discount brokerages as they are to their spouses.

#WorkHardForTheMoney

In an interesting move Questrade took its talent scouting social this past week by launching their own career-focused Twitter handle @QuestradeCareer. While there may be some relation to the health of brokerages in the US, the decision to be hiring is a signal that brokerages may be doing ‘ok’ on this side of the border. Over the past several months, there have been a number of positions advertised at several discount brokerages to attract and retain talent, which is evidence of yet another area in which Canadian discount brokerages may be competing with one another.

From the Forums

In addition to being a somewhat quiet week around the discount brokerage space, the investor forums also showed a bit of a dip in terms of chatter about brokerages and markets. Nonetheless, the following two discussions were shareworthy.

ETFs vs Stocks

In this post from the Financial Wisdom Forum, an interesting discussion about the pros and cons of individual stock ownership vs. using ETFs. This thread was particularly noteworthy because it highlighted that there’s a case to be made for each and which of the two is “ideal” really depends on an individual’s situation and goals.

A Penny Stock Saved

This thread from RedFlagDeals’ forum started out as a story that one user shared about their experience trading penny stocks with TD Direct Investing. What ensued from that, however, was an interesting discussion between community members on trading in penny stocks (for better or worse) at several different Canadian online brokerages.

That’s a wrap for this quick version of the roundup. Of course as we point out from time to time, sports and competition can be a great learning space for investing do’s and don’ts. Every now and then, however, there’s a big neon sign that flashes ‘don’t do it’. One of those messages comes courtesy of a really entertaining Nike soccer ad that encourages individuals to #riskeverything – to which we have to #HumblyDisagree. Hope you’re weekend is a ball!

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Discount Brokerage Weekly Roundup – April 11th 2014

Between a few days of markets selling off and glitch named ‘heartbleed’ that is turning the internet upside down, it has been a tough week for anyone sitting behind a screen. For those with a view of the outdoors, however, it has probably been even tougher as the nice weather has finally started to show up in Montreal and Toronto (save the bragging Vancouver). The online brokerages may have to wait to get outside, however, as many of them were very busy this past week dropping prices, introducing products and navigating the ‘busy season’ for investors.

In this week’s roundup we look at an interesting trend highlighted by one of Canada’s largest discount brokerages. Next we look at another cost reducing product for investors, this time in the mutual fund space. A pair of updates to the deals section takes us to the halfway point. For TFSA holders, we found a great video offering tips for those trading US stocks with dividends. Finally we round out with some interesting tweets that we spotted as well as some informative forum threads.

Thoughtful Thirties

There’s something about turning 30 that makes people, and discount brokerages, a little more reflective. This past week, as part of their 30th anniversary, TD Direct Investing reflected on how the profile of the ‘typical’ investor has changed since the launch of their discount brokerage service in 1984. As part of their news release, TD Direct Investing highlighted that online investors are more diverse with younger investors and women investors forming a greater percentage of the investing population. The timing of this announcement was interesting as there were two separate articles that also highlighted the growing interest and perhaps the advantage that younger investors have in the online trading space.

Mutually Assured Discount

BMO InvestorLine recently announced the roll out of a new group of 33 discounted mutual funds, known as Series D, to online investors. Also in the announcement was the news that management fees were being lowered on the Series F products. The move by BMO InvestorLine into the low-cost mutual fund arena appears to be in line with both RBC Direct Investing and TD Direct Investing in this space.

Discount Brokerages Dealing Back In

A pair of moves in the discount brokerage promotions section over the past week signaled that competition for clients remains high.

Starting with Questrade, they have taken a seat back at the $100,000 table by introducing a cash back offer of $250.  Their iPad mini offer (or cash back) offer for deposits at this level recently expired however this latest move looks like they’re interested in buying back in.

BMO InvestorLine also checked on their $300 + 300 trade offer by further extending the deadline for this deal from April 9th to April 30th.

Little Birdies

Birds chirping is a great sign of spring.  Online however, tweets from investors across the Twitterverse can be a little less delightful. This past week there were a couple of interesting moments we spotted. First, as Questrade found out, even though the ice on the sidewalks is gone, there’s still room for tax slips to cause problems. Of course, with the warmer weather also comes a bit of heat – which is what one twitter user sent Scotia iTrade’s way when asking about the ability to route orders to the new ‘HFT – free’ exchange IEX.

No Party in the TFSA

While Miley Cyrus may enjoy rocking out in the USA, having US dividend paying stocks in a TFSA is a bit of a portfolio wrecking ball. The following video from Rob Carrick and the Investor Education Fund provides a quick overview on how to navigate the tricky waters of withholding taxes and registered accounts.

From the Forums

Bucking a Fee

In the following post from RedFlagDeals, community members were alerted to an interesting observation from an Interactive Brokers Canada client – namely that minimum monthly fees of $10 appear to be waived for clients with assets over $100,000.

D is for…

The announcement by BMO InvestorLine of a low cost mutual fund series that could rival either TD or RBC was certainly enough to get the discussion going on the forums. Interestingly while the announcement caught the attention of forum members, so too did the way in which the roll-out took place.

That does it for this week’s roundup. For those in the west – enjoy the summer, and for those in the east, brace yourselves for a potential dusting. Yes, April is still full of surprises all around. For those trying to make sense of all the heartbleed hype, here is a comical explanation: