Virtual Brokers – Page 16

Posted on July 15, 2016 by user — Leave a comment

Discount Brokerage Weekly Roundup – July 15, 2016

Even when the world appears irrational, markets still move to beat of their own drum. Against a backdrop of turbulent headlines, markets in the US have managed to hit new all-time highs. For DIY investors in Canada, however, it is an interesting moment. As stock prices move higher, this will invariably attract investors back into the mix however most Canadian discount brokerages have yet to ramp up their marketing efforts to capture investor interest. Ironically, it seems that the Canadian discount brokerages are also having trouble timing the market.

In this week’s roundup we take a look at the clues about current DIY investor sentiment that were revealed by one US online brokerage and what that might mean for brokerages heading into earnings season. Next we take a look at one major bank-owned discount brokerage that took a bold move forward in the social media space. From there we’ll recap what investors were talking about on Twitter and in the investor forums.

Sentimental Value

It takes two to tango and also to make a market. In the case of the latter, it’s an ongoing debate between those who think buying is smarter and those who think selling is. One US-based online brokerage, E*TRADE Financial, released the results of its regular survey of ‘experienced investors’ which showed that there many shades of grey between the lines separating buyer from seller.

While not the most scientific of approaches, there was an interesting portrait of the DIY investor that could be painted based on looking at the ‘big picture’ of the data.

For example, it appears that when it comes to trading and markets, most investors associate their sentiment about the markets with the movie title “Dazed and Confused”. Although this number surged to 40% for Q3 of 2016 (up from 31% in Q2 of 2016), the fact that it has consistently been the top answer since Q3 2015 implies that a fair portion of experienced investors feel this way most of the time.

Another interesting observation is that most of these experienced investors would recommend individual stocks as the best option for friends/family thinking of getting into the markets at this moment. Remarkably, after stocks, equity mutual funds were the most popular recommendation rather than their lower priced counterparts, ETFs. That said, there has been a growing number of investors who seem to think that bonds would make a good investment to get into. When lined up against what’s been happening in the world and with a US election coming in November, this seems to imply that traders have been positioning for the “fear trade” for quite some time.

On the business side for discount brokerages, whether this forecast translates into more or less trading has real consequences. Next week, another US-based online brokerage, Interactive Brokers, will report its quarterly earnings. With markets hitting new all-time highs, volatility from the Brexit vote as well as other election related uncertainty, it will be interesting to see whether the fear of missing out trumps the fear of loss at least for another quarter.

Wanna Chat?

For those who still think that social media is all hype, selfies and food pics, any recent footage from major news events or articles writing about them probably contain or are based on content from social media. Donald Trump also took to Twitter to announce his running mate for Vice President for what it’s worth.

This past week, TD Direct Investing took the bold step of launching a DIY investing Q&A on Twitter that went reasonably well. It was a definite gamble from the big green given the amount of flack it has been catching from the intermittent (but unfortunately too frequent) outages from its flagship trading platform WebBroker. Nonetheless the social experiment was a success in that there were a number of influential Canadian personal finance bloggers/personalities fielding interesting questions about investing (and also because TD emerged relatively unscathed).

We’ve captured the 350+ tweets that were exchanged over the course of the session and presented them below for anyone interested in reviewing the conversation.

Here are the 10 topics that were covered:

Why should someone tackle DIY investing? Is the juice worth the squeeze?
What mistakes did everyone make when they first started DIY investing? What should 1^st timers be aware of?
Honestly, how hard is it really to DIY invest? How much reading and math do you have to do?
Where should you get started when it comes to making your first trade?
When is the best time to buy stocks and then sell them?
If you have debt, should you be investing?
How are you investing? In an RRSP, TFSA or other?
Any tips on what to invest in if you want to grow a housing down payment ASAP?
If the market is down in Canada, should you wait to invest until times are better?
What tools do you use to make it easier to build your confidence as an investor?

Overall the chat was an informative session that offered bite-sized pieces of insight into the world of DIY investing. Thematically it appeared that “slow and steady” was the central message of the talk.

It was clear that there were lots of opinions from the various financial bloggers in attendance and it was encouraging to see that at least some individual investors were participating in the conversation too. With most things personal finance, however, keeping the responses brief but informative was a challenge, especially when some of the questions take some length to explain fully. Nonetheless, there were lots of thanks being passed around for the useful information and for the opportunity to bounce questions off the Canadian personal finance community.

At one point, the #DIYInvesting hashtag was noted as “trending” in Canada indicating that this topic floated to upper layers of what was being discussed in Canada at the time the Twitter chat was happening.

Strategically, this was also a very interesting move for TD Direct Investing for several reasons. First, they were able to score some air time by having multiple participants providing answers and participating in the conversation. In fact, this was a great move by TD Direct Investing to change the conversation away from the issues plaguing WebBroker into something more positive and controlled that scores points with prospective and existing customers.

Another reason this was such a strategic win for TD Direct Investing is because they managed to dominate the conversation on the hashtag #DIYInvesting. One of TD Direct Investing’s direct competitors, Scotia iTRADE has also been using this hashtag as part of their marketing efforts however as was clearly seen over the course of the Twitter chat, there were no references to Scotia iTRADE (or any other brokerages). This is not to say that other brokerages can’t or won’t piggy back on the greater awareness of the #DIYInvesting handle, but there is definitely some ground that TD Direct Investing managed to gain at the expense of other brokerages’ attempts to create a conversation around DIY investing.

TD Direct Investing has come a long way on Twitter despite them having their own handle for a relatively short amount of time. For other Canadian discount brokerages who are contemplating how to compete in the digital landscape, this latest move by TD Direct Investing should raise some eyebrows and force everyone else to step up their game. #ShouldBeFun

Discount Brokerage Tweets of the Week

Technology on the fritz seemed to be yet another theme of why DIY investors reach out to online brokerages via Twitter. Could be the massive heat wave in Toronto that got tempers a little shorter than usual. Mentioned this week were Qtrade Investor, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Getting to Know You

For anyone signing up for an online trading account, one of the questions that inevitably comes up is how much trading experience you might have. In this post from reddit’s Personal Finance Canada section, one user was curious as to why that happens.

Wrong Turn

Transferring from one brokerage to another involves quite a bit of paperwork, a bunch of patience and a whole lot of trust that things will go smoothly. Unfortunately for one reddit user, their experience in transferring an RRSP account into Questrade did not go as planned. In this post, find out what happened and how Questrade attempted to help get things back on track.

Into the Close

That’s a wrap on another crazy week. With all of the heavy news here’s something a little more uplifting to close out on. Whatever you happen to get up to this weekend, have some summer fun, stay cool and see you for a fun earnings-filled week next week!

Oh my God… pic.twitter.com/If507fxar5

— Kroony (@DeKroonCat) July 15, 2016

Posted on July 8, 2016 by user — Leave a comment

Discount Brokerage Weekly Roundup – July 8, 2016

Bulls will be bulls. On a day when grim news captured the headlines, the S&P 500 managed to put it all in the rear-view mirror and touch a new record high intraday. Despite what naysayers are nay-saying, the numbers on the tape tell a different story. For Canadian discount brokerages, the news cycle is relatively quiet. The numbers coming out of brokerages, however, are doing most of the talking at least when it comes to deals and promotions and where brokerages are seeking out opportunities.

In this week’s roundup we take a look at the latest deals that were revived after the Canada Day long weekend. From there we look at one online brokerage that is banking on innovation as the path to winning against bigger bank-owned competitors. From there we’ll take a look at what investors were chatting about on social media and in the investor forums. Saddle up.

Guess Who’s Back?

This past week saw a number of deals get a reboot from several Canadian discount brokerages.

First, the refer-a-friend offers from both BMO InvestorLine and Scotia iTrade, which originally expired at the end of June were picked up again and renewed well into 2016. While BMO InvestorLine had updated their terms and conditions at the time of writing, Scotia iTrade had not (although they confirmed the referral offer is still active). Until the revival of these two offers, Questrade held the sole refer-a-friend promotion among Canadian discount brokerages heading into July. As we referenced previously however, it was unlikely that other brokerages would allow Questrade to remain unchallenged for too long.

The third offer that was revived was Desjardins Online Brokerage’s $500 commission credit offer. Having been live for well over a year and a half, this deal is now active again through to the end of August.

Currently, there are 24 advertised offers from Canadian brokerages across the four categories we track.

Offers from Canadian Discount Brokerages (July 2016)

What is interesting about the kinds of offers currently being advertised, however, is that contests and other promotions are nearly at the same levels as more popular cash back/commission credit or transfer fee promotions. Another interesting observation is that, Questrade now shares the title of brokerage with the most number of advertised offers with Scotia iTrade. Surprisingly, Desjardins Online Brokerage is close behind, edging out other brokerages, including its cross-town rival National Bank Direct Brokerage.

With such a close race between providers, there is certainly more of an opportunity for any of the Canadian brokerages to make a move to become a dominant player in the promotional space. Virtual Brokers has certainly been attempting to compete with other brokerages in the deals section by offering up new deals every month or so. Even with these efforts, however, they’re still lagging. That said, should Virtual Brokers decide to bring back their referral offer as a standing promotion as well as a standing transfer fee coverage offer, they would definitely win some of the spotlight that Questrade has given up in this space over the past few months.

As competition heats up along with the summer weather, it will be interesting to see which offers currently scheduled to expire at the end of July will either get renewed or replaced and whether or not one brokerage reaches to claim top spot in the deals arena.

Widening Circle

One of the interesting side effects of the low interest rates on online brokerages in both the US and Canada is the squeeze on their revenues. Without lending generating substantial revenues, online brokerages are left to other streams like fees and commissions to keep the lights on and servers running. Of course, in order to make up for the shortfall in commission revenues from falling prices, brokerages, especially at the “discount” end of the commission spectrum (such as Questrade and Virtual Brokers) have turned to more creative endeavours to boost revenues.

This past week, BBS Securities, parent of Virtual Brokers, announced that they have partnered with one of Canada’s newest stock exchanges, Aequitas Neo Exchange, in order to provide Platform Traded Funds (PTFs) to Virtual Brokers’ institutional clients. More importantly, however, Virtual Brokers is already signaling that they wish to become the first Canadian discount brokerage to offer PTFs.

In a nutshell PTFs help to simplify the trading (and thus lower the cost) of mutual funds by integrating with securities trading platforms (for more background on PTFs check out this article from the Financial News). This makes it easier for advisors and dealers to process mutual fund orders which, in turn, can result in savings for investors. While it will likely take investors some time to untangle the difference between an ETF and a PTF, the bottom line is that innovation in how the financial services world delivers a very popular product (mutual fund) has resulted in lowered costs for investors.

For Virtual Brokers, the headline and optics of embracing a “fintech” solution positions them as a firm that is continuously innovating – something that the Globe and Mail has pointed out about Virtual Brokers in several of its discount brokerage rankings. Interestingly, the fact that this solution is aimed at their advisor client base means that Virtual Brokers is continuing to diversify its opportunities, something it has already done in the robo-advisor space.

The bigger picture indicates that the online brokerage space and “DIY investing” are clearly not enough to sustain most Canadian discount brokerages, so it is interesting to see how different firms are broadening their service offerings. It does beg the question, though, that if the ‘traditional’ discount brokerages are struggling to keep up with all of the changes in services and products, how can DIY investors do the same?

Discount Brokerage Tweets of the Week

Battling technology issues in the summer heat has made for some interesting feedback to brokerages. Mentioned this week are Questrade, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Bank to Bank

Making the decision to switch to a bank-owned discount brokerage is a challenge for some DIY investors because banks are usually hard to distinguish from one another. In this post from RedFlagDeals.com’s investing forum, one user wants to find out which bank-owned brokerage is better: BMO InvestorLine or Scotia iTrade?

Tipping Point

Getting started with DIY investing is a challenge for many, mainly because there is a lot of trial and error. Hopefully for most investors, the errors aren’t too costly out of the gate. In this post from reddit’s Personal Finance Canada section, one user asks for any advice or tips for starting out using TD’s WebBroker.

Into the Close

That’s it for another edition of the roundup. This weekend is filled with all kinds of excitement (and investing metaphors) for the folks attending the Calgary Stampede. Regardless of which rodeo you follow, there are plenty of reasons to hold on to your hats and keeping your heads up going into next week. Have a great weekend!

Posted on July 1, 2016 by user — Leave a comment

Discount Brokerage Weekly Roundup – July 1, 2016

Happy Canada Day! The recent visit of US President Barack Obama to Canada underscored the importance of the two countries’ working relationship. Interestingly, at least one US online brokerage has managed to maintain its presence in Canada as part of its international expansion plan and the writing on the wall suggests that it won’t be the last US online brokerage to make a push north. For Canadian online brokerages, the clock is ticking and between the coming wave of robo-advisors and pressures to step up their game.

In this week’s roundup we take a look at the latest promotional offers to hit the deal wire at the outset of a new month. Following that we’ll review the latest metrics from one US online brokerage that should raise more than a few eyebrows at Canadian online brokerages. From there we’ll take a look at the latest chatter from Canadian investors around social media and in investor forums.

Deal Breaker

It looks like Great Britain wasn’t the only one making an exit this past week. The Canadian discount brokerage landscape saw yet another series of brokerages deciding to pull offers off the table at the roll-over into a new month. At the outset of July only one brokerage, Virtual Brokers, launched a new offer while brokerages such as BMO InvestorLine and Scotia iTRADE let their referral offers lapse. The biggest stories from this month’s deals and promotions section however concern Desjardins Online Brokerage and the state of referral programs.

Starting first with Desjardins Online Brokerage, it appears that their very long-standing promotion of offering up to $500 in commission credits for a $50,000 deposit has finally been retired. This offer initially launched back in 2014 and has been running strong ever since. There were various moments where the offer was scheduled to expire only to be renewed again for months at a time. With its removal, however, this leaves Desjardins Online Brokrerage with just a handful of offers.

One offer, for example, provides $50 in commission credits to DIY investors 18 to 30 years old. The other offers are directed toward individuals with assets over $500,000 as part of their ‘prestige’ program. This puts Desjardins Online Brokerage in a tricky position given that their fiercest competitor, National Bank Direct Brokerage, has launched a margin account discount offer that includes lower trading commissions and lower borrowing rates for margin.

The second big story from the deals and promotions space at the outset of July is the expiration of referral programs by brokerages other than Questrade.

At the beginning of July, Questrade has the enviable position of being the only Canadian brokerage to be advertising a current referral program. Competitors, BMO InvestorLine and Scotia iTRADE both have refer-a-friend agreements listed on their websites but details on those offers clearly state the offers expired June 30^th.

While it is unlikely that either Scotia iTRADE or BMO InvestorLine wish to concede market share by abandoning this low cost onboarding strategy, the evolving landscape of online brokerage promotions suggests that brokerages are prepared to take all kinds of creative approaches to lower their own costs to stay competitive.

Follow the Brexit Signs

While most investors dislike market volatility there are certainly others in the market place who look forward to it. One is definitely the media who took full advantage of the heightened anxiety with the Brexit referendum. The other group that enjoys market volatility are active traders. And, as seen with the outcome of the Brexit vote, there was ample market volatility to keep traders locked onto their screens.

For Interactive Brokers, June appeared to be a great month for their key metrics. Specifically, they saw an 8% spike in new accounts over the previous month which will probably earn the envy of their fellow online brokerages. Another interesting observation from the metrics report is the inclusion of the basket of currencies (and their respective weights) that Interactive Brokers manages. In particular, what is interesting is that Interactive Brokers operates in many international markets and that they are factoring in the relative importance of China to their business. This is not the first time this month a US brokerage has relayed the importance of China to their growth plans. Startup online brokerage Robinhood, who offers commission-free trading, announced they have expanded into China by partnering with Baidu (the leading search engine in China) to enable Chinese citizens to trade US stocks and ETFs.

Canadian online brokerages who are looking to attract active investors/day traders certainly have their work cut out for them in trying to compete with Interactive Brokers. As one of a small number of firms in Canada that offer international trading, Interactive Brokers continues to be a formidable online brokerage to compete with in the US, Canada and other international markets.

Discount Brokerage Tweets of the Week

From the Forums

Solid Platform

Trading technology being what it is in Canada is somewhat limited. For one online investor in this reddit post, figuring out what else is out there prompted some interesting suggestions and reviews from fellow community members.

R is for Reliability

For serious investors, price is one thing but reliability is paramount. Being able to get into and out of a trade how and when you need to can be worth the few extra dollars per trade – think of how expensive the alternative can be. In this post on the Canadian Money Forum, one DIY investor pitches the question of ‘which brokerage is most reliable’ to the crowd and gets some interesting perspective in return.

Into the Close

That’s a wrap for this shortened trading week. Have a safe and enjoyable Canada Day weekend, and of course, for those who decide to trade the US markets a quick reminder that Monday will also be a day off trading the US markets. As a shoutout to the recent visit from US President Obama, here’s a video of recent address to parliament.

Posted on July 1, 2016 by user — Leave a comment

Discount Brokerage Deals & Promotions – July 1, 2016

*Update July 13* It looks like the ‘brexit’ wasn’t the only big exit to happen this week. Closer to home, the Canadian online brokerage deals and promotions space also saw a number of promotional offers take off, perhaps for the summer, perhaps longer.

The trend towards promotional offers continues to be a volatile one, which isn’t great news for DIY investors. Compared to this point last year, the total number of cash-back and/or commission-free trade offers has contracted significantly – a development we continue to track. Even though the number of offers has contracted, there are still signs that things are evolving. Interestingly, there has been a rise in the number of contest-related promotional offers.

Despite the turnover in offers, the news isn’t all bad.

Virtual Brokers continued its streak of new offers by launching a Canada Day themed promotion that is highly targeted to Ontario, particularly GTA based, DIY investors that have a penchant for roller coasters and funnel cake.

As part of their latest promotion, Virtual Brokers is offering up a raffle for 4 day passes to Canada’s Wonderland for individuals signing up for a new account during July. Alternatively, for those not in the Toronto area, or who’ve outgrown Canada’s Wonderland, there’s an alternate prize for 20 commission-free trades that potential winners can elect to receive.

Another Canadian discount broker, National Bank Direct Brokerage, also appears to be active in promotions space during the summer. Last month they launched an offer for a margin trading account which offers discounted borrowing rates (0.75%) for margin lending as well as discounted commission trading rates ($6.95) for 3 months. The offer is open to new and existing clients signing up for a margin trading account. As we pointed to in a previous weekly roundup, however, here is a lag time for opening an account at National Bank Direct Brokerage because documents need to be submitted by mail. With a possible strike by Canada Post, there could be an additional delay attached to this process.

We’re already hearing whispers of more offers coming this Fall so it will be interesting to see whether brokerages will be getting ahead of the promotional storm or will be taking it easy for July and August. With competition coming from robo-advisors, recent volatility in the markets and also competition from summer weather, brokerages will no doubt have to get very creative to win the attention of DIY investors.

Expired Deals

There were a number of expired offers from June but among them were a couple of big ones.

*Update July 13: Virtual Brokers has updated their website to include the reinstatement of their transfer fee rebate.*

*Update July 8: Desjardins has extended their $500 commission-credit offer* First, Desjardins Online Brokerage has elected to not extend their long running $500 commission-credit offer. This means that for the time being their best promotional offer is their ‘Broker@ge 18-30’ $50 commission credit.

*Update July 8: Both BMO InvestorLine and Scotia iTrade have extended their refer-a-friend offers* Next, a pair of referral offers also expired at the end of June and as of Canada Day, these offers have yet to be renewed on their respective websites. BMO InvestorLine and Scotia iTrade both had their refer-a-friend offers expire however in the past both of these firms haven’t let these kinds of low-cost promotions lay fallow for too long.

Another offer from Virtual Brokers, the draw for an Apple gift card, also expired at the end of the month and took with it the associated transfer fee rebate.

Extended Deals

*Update July 13: Virtual Brokers has re-posted the transfer fee deal on their website in the terms and conditions section. See table below for more information*

*Update July 8: Three brokerages, Desjardins Online Brokerage, BMO InvestorLine and Scotia iTrade have each extended previously expired offers* At the moment, no deals have been extended.

New Deals

Virtual Brokers was the only Canadian discount brokerage to launch a promotion this month with their Canada Day themed raffle for either a series of 4 day passes to Canada’s Wonderland or 20 commission-free trades. See the table below for more details.

Discount Brokerage Deals

Cash Back/Free Trade/Product Offer Promotions
Referral Promotions
Transfer Fee Promotions
Contests & Other Offers

Cash Back/Free Trade/Product Offer Promotions

Company	Brief Description	Maximum Transfer Fee Coverage Amount	Minimum Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
	Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees	$135	$15,000	Transfer Fee Rebate Details	none
	Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion.	$150	$25,000	Credential Direct Transfer Fee Rebate	none
	Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	none
	Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details.	$150	$25,000	Contact client service for more information (1-800-465-5463).	none
	Transfer $25,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details.	$150	$25,000	Transfer Fee Rebate	none
	Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees.	$150	$25,000	Transfer Fee promo	September 30, 2016
	Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.	$135	$25,000	Confirmed with reps. Contact client service for more information (1-800-567-3343).	none
	Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees	$135	$25,000	Transfer Fee Rebate	none
	Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info.	$150	$50,000	Disnat $500 Commission Credit Promo	August 30, 2016
Expired Offers
Last Updated: July 13, 2016 11:30 PT

Referral Promotions

[table id=173/]

Transfer Fee Promotions

Company	Brief Description	Maximum Transfer Fee Coverage Amount	Minimum Deposit Amount for Transfer Fee Eligibility	Details Link	Deadline
	Transfer $15,000 or more to RBC Direct Investing and they will pay up to $135 in transfer fees	$135	$15,000	Transfer Fee Rebate Details	none
	Transfer $25,000 or more from another brokerage and Credential Direct will cover up to $150 in transfer fees. Use promo code SWITCHME when signing up to qualify for the transfer promotion.	$150	$25,000	Credential Direct Transfer Fee Rebate	none
	Move your brokerage account to Questrade and they’ll cover the transfer-out fee up to $150.	$150	$25,000	Transfer Fee Promo	none
	Transfer at least $25,000 or more in new assets to TD Direct Investing when opening a new account and you may qualify to have transfer fees reimbursed up to $150. Be sure to contact TD Direct Investing for further details.	$150	$25,000	Contact client service for more information (1-800-465-5463).	none
	Transfer $25,000 or more to Qtrade Investor from another brokerage and Qtrade Investor may cover up to $150 in transfer fees. See terms and conditions for more details.	$150	$25,000	Transfer Fee Rebate	none
	Transfer $25,000 or more to Virtual Brokers and they may cover up to $150 in transfer fees.	$150	$25,000	Transfer Fee promo	September 30, 2016
	Transfer $25,000 or more into a CIBC Investor’s Edge account and they will reimburse up to $135 in brokerage transfer fees. Clients must call customer service to request rebate after transfer made.	$135	$25,000	Confirmed with reps. Contact client service for more information (1-800-567-3343).	none
	Transfer $25,000 or more to a National Bank Direct Brokerage account and they will pay up to $135 plus taxes in transfer fees	$135	$25,000	Transfer Fee Rebate	none
	Disnat is offering up to $150 to cover the cost of transfer fees from another institution. To be eligible, new/existing clients need to deposit $50,000 into a Disnat account. You’ll have to call 1-866-873-7103 and mention promo code Disnat500. See details link for more info.	$150	$50,000	Disnat $500 Commission Credit Promo	August 30, 2016
Expired Offers
Last Updated: July 13, 2016 11:30 PT

Other Promotions

Company	Brief Description	Minimum Deposit Amount Required	Details Link	Deadline
	Credential Direct has partnered with Trend Micro to offer 50% off Trend Micro Titanium Internet Security. Use code “TrendCF” at checkout.	n/a	Trend Micro Special Offer Code	none
	National Bank Direct Brokerage is offering a discount of 0.75% on it’s current margin lending rate for new margin accounts for a period of 3 months. In addition, new margin account registrants will receive a commission rate of $6.95 per equity trade. This offer is open to new and existing clients. Use promo code MARGIN2016 when signing up. Be sure to read the terms and conditions for full details.	n/a	Margin Account Promotion	August 31, 2016
	Scotia iTRADE is offering a no-purchase entry option to their Stock Shopping Spree contest. There is a limit of one (1) ballot per person using the no purchase required method. Top prize is $10,000 and there are 5 runner-up prizes of $1,000. Be sure to read full contest rules and regulations for eligibility.	n/a	No Purchase Entry Link . Click here for full contest rules.	July 31, 2016
	Desjardins Online Brokerage is offering $50 in commission credits for new Disnat Classic clients depositing at least $1,000. See terms and conditions for full details.	$1,000	Broker@ge 18-30 Promotion	none
	Scotiabank StartRight customers can receive 10 commission-free trades when investing $1,000 or more in a new Scotia iTrade account. Trades are good for use for up to 1 year from the date the account is funded. Use promo code SRPE15 when applying (in English) or SRPF15 when applying in French. Be sure to read full terms and conditions for full details.	$1,000	StartRight Free Trade offer	none
	Virtual Brokers is offering the chance for individuals who sign up for a new online trading account on the classic commission structure with a deposit of at least $1,000 to win an Apple $500 gift card. Be sure to read terms and conditions for more information.	$1,000	Apple Gift Card Promotion	June 30, 2016
Expired Offers
Last Updated: July 1, 2016 15:50 PT

Posted on June 24, 2016 by user — Leave a comment

Discount Brokerage Weekly Roundup – June 24, 2016

Despite what the pundits and talking heads are passionately and energetically discussing on business news networks the world over, global markets are not in turmoil. While the calculus of a market repricing may seem messy (and it sometimes is), the reality is that markets are doing what they do best: putting a present day price on a picture of the future. In many ways, the outcome of the ‘unpredictable’ is somewhat predictable: buyers and sellers have different opinions on what something should be worth and volatility ensues until these two groups come to some consensus. For DIY investors and clients of discount brokerages, events like the Brexit also lead to some likely (if not predictable) scenarios when a trading system or two just can’t withstand the rush of orders.

In this week’s roundup, we take a look at the immediate aftermath of the Brexit vote on two Canadian discount brokerages and the lessons DIY investors can learn from them. On the topic of ‘what happens next’ we preview the deals and promotions landscape heading into July to see which offers may be going on a permanent vacation. From there we’ll take a look at the chatter on Twitter and from the investor forums to see what investors had to say during this very volatile week.

Vote of Confidence

A convenient way of contextualizing the Brexit referendum reaction is by understanding that markets act as a great big voting machine on what the world of tomorrow should be worth today.

What is clear in the aftermath of the Brexit vote was that investors had priced in one view of the world heading into the vote and, upon confirmation, they had to reprice the future to accept a new version of events.

For online brokerages, the ensuing volatility is great for bottom line. With all of the uncertainty, investors of all activity levels either foolishly or fearlessly venture into the price melee to bargain hunt or to unload risky assets. Either way, a commission is generated and the brokerage gets paid. That is, of course, if the order is executed.

Despite the “uncertainty” of what’s going to happen next in the markets, there are a few “certainties” about how DIY investors can navigate big market dislocations such as the Brexit.

First, there’s usually a huge spike in volumes and trading activity as speculators scramble to adjust positions and react to opportunities. DIY investors should be prepared for just about anything, including having to wait to access markets or market quotes when platforms go offline or to have an alternate means of executing an order (i.e. know your discount brokerage’s phone number) to either get into or out of a trade. While it is not a guarantee, the trading desks of larger firms have more resources during times of increased trading activity to handle orders over the phone.

Interestingly, even though these kinds of high volatility events can occur with some warning, many online brokerages continue to suffer slowdowns or outages because of the trading volume. Not getting client orders to market or enabling clients to be able to trade is a costly misstep so the more a brokerage is equipped to handle these heavy order day scenarios, the more likely a DIY investor can participate.

For example, the morning after the Brexit vote, clients from several Canadian online brokerages including Virtual Brokers and TD Direct Investing, suffered slowdowns and interruptions to online trading.

A good question to ask is which brokerage can withstand these kinds of spikes and a good place to look is online and whether there are complaints about outages or not.

One online brokerage that has been somewhat more vocal about the kinds of capacity their platform can handle has been Interactive Brokers. Earlier this year on a quarterly conference call, founder and CEO Thomas Peterffy, referenced ability of Interactive Brokers to handle trading volume surges and earlier today, an article from Marketwatch highlighted just how prepared Interactive Brokers’ systems were in the case of an unexpected Brexit outcome.

Another point to keep in mind is simply that as a DIY investor, there is a significant risk to the technology infrastructure supporting trading networks. There are so many complex moving parts involved in online trading that expecting a trade to execute or expecting to have access to markets is not the same thing as a guarantee of availability, something that many brokerages place in the fine print on a discount brokerage account agreement. When or if technology fails, discount brokerages appear to be off the hook (although clients will try to hold them accountable).

So, for DIY investors and active traders volatile markets are a double-edged sword: To really be able to capitalize on volatility, individual investors, especially active traders, need too wade into markets when they’re dislocated. On the other hand, it is at those time that reliability of access, availability of shares to short, execution times or the resiliency of a network become real risks to consider.

Unfortunately, none of those risks make it into the marketing or advertising pitches put forward when brokerages want users to open an account. Taking a cue from the Brexit itself, the lesson for traders or aspiring traders is simple: wanting (or needing) to get out is very different than the mechanics of doing so.

On Point

In last week’s roundup we highlighted a comment from an investor forum discussion in which clients of RBC could use their reward point program (RBC Rewards) to pay for commissions on a trade at RBC Direct Investing. This past week, CIBC Investor’s Edge crossed our radar as they posted a message to website visitors that CIBC’s reward points (Aventura or Gold Bonus) can also be used towards funding an Investor’s Edge account.

According to the details, points holders can redeem a minimum of 12,000 points for $100 which is similar to the RBC Direct Investing point redemption minimum.

In addition to CIBC Investor’s Edge and RBC Direct Investing, National Bank Direct Brokerage also lets clients who have certain MasterCards redeem points at the rate of $100 for 11,000 points. The eligible accounts at NBDB are RRSPs or TFSAs.

The good news for points holders at CIBC Investor’s Edge, however, is that the commission rates are lower than at other bank-owned brokerages so one way or another the points can help clients go further for less.

Chopping Block

After the kind of shocking headlines from European markets, there might be more than few investors who are ready to ‘call it a summer’. For those that want to stick around and participate in the action (or even those in the ‘wait and see’ camp, there’s more volatility to be had in the discount brokerage deals space. Currently there are five offers that are set to expire at the end of June. While brokerages may change their minds and extend some or all of the deals, at this point it appears that July should turn into an interesting month.

On the chopping block are the following offers:

National Bank Direct Brokerage’s commission-free Canadian ETF offer
Desjardins Online Brokerage $500 commission credit offer
Scotia iTrade’s refer-a-friend offer
BMO InvestorLine’s refer-a-friend offer
Virtual Broker’s Apple gift card contest offer

Even though there is likely to be a few of these that will be renewed, it will be interesting to see what unfolds in the next week and what other promotions these brokerages might come up with to replace the outgoing offers. Stay tuned.

Event Horizon

As Summer Solstice passes it’s time for new beginnings, and it’s an interesting week ahead for discount brokerage-sponsored investor education events. Here are some upcoming sessions that may be of interest to options enthusiasts and those interested in risk management.

June 28

Scotia iTRADE – Options Trading Mistakes to Avoid with Montreal Exchange

June 29

NBDB – Stop Orders: A Winning Solution Worth Knowing

Discount Brokerage Tweets of the Week

The big news in this weeks tweets is definitely what happened the day after the Brexit vote. Mentioned this week were Questrade (with some big news), Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Short Interest

In what is sure to be an evolving story, investor forum users shared the news that Questrade is looking for a few good shares, that is, if users are willing to lend them out. One of the more creative and interesting maneuvers from Questrade appears to involve letting individuals who own securities lend them out to those looking to short the security. It’s actually quite brilliant since those doing the lending have the ability to earn revenue from the fees paid by those who borrow the shares. This post from reddit has a great primer on the new feature as well as lots of perspectives for those considering the new program. Well played Questrade, well played.

Pointers on a Gambit

A perennial favourite, Norbert’s Gambit, surfaced yet again and may be something savvy traders look to take advantage of with the recent currency shift. In this post from reddit’s Personal Finance Canada section, performing a gambit at RBC Direct Investing was explained along with some handy resources.

Into the Close

What a note to close the week out on. The Brexit basically took over the headlines and outshone a massive IPO performance by Twilio and the Democrats staging a sit-in. Of course, the biggest exit, arguably, is still to come this weekend with the season finale of Game of Thrones. Just because summer is now here, doesn’t mean that winter isn’t going to show up in full force. Not sure what’s scarier heading into next week but either way, have a great weekend and happy hunting next week!

Posted on June 10, 2016 by user — Leave a comment

Discount Brokerage Weekly Roundup – June 10, 2016

In an era of robots and algos, and in a business that stresses keeping things unemotional, there are often times for every trader when emotions and humanity creep back into the picture. This was one of those weeks.

From the news of Muhammad Ali’s passing last week to the outpouring of beautiful tributes that came in through the week and the final service today, this week many of his fans, myself included, found it hard to not reflect on the life of such an incredible athlete and humanitarian. Between the heavy sighs, however, was the reminder that markets and money never sleep. And for many traders, the future is always where the focus lies and the next few weeks will be filled with many challenging events to navigate around.

In this week’s roundup we take a look at a milestone in the history of one online brokerage and what they’re giving away to celebrate. Next we take a look at the little changes that one brokerage is making that DIY investors may be interested in keeping a handle on. From there we highlight some upcoming investor education events and round out with a review of the latest chatter on Twitter and across the forums.

CIBC Investor’s Edge Celebrates 25 years

There have never been more choices for Canadian DIY investors looking to trade ETFs commission free than there are right now. Along with Questrade, Virtual Brokers, Qtrade Investor, Scotia iTRADE and National Bank Direct Brokerage, another online brokerage, CIBC Investor’s Edge, has joined the commission-free ETF roster – albeit for a limited time.

To mark their 25^th anniversary, CIBC Investor’s Edge is offering clients commission-free ETF trading on nearly 2000 ETFs for 25 trading days. This promotion runs between June 8^th and July 13^th.The list of eligible ETFs is here and includes many of the most popular Canadian and US ETFs.

In addition to the promotional offer, the CIBC Investor’s Edge website also has a fun little timeline of the 25 years that explains some of the major milestones for Investor’s Edge over that time.

source: screenshot from CIBC Investor’s Edge website

Despite all the fanfare, however, even celebratory balloons can have strings attached and this offer is no different. Here are some important notes from the terms and conditions.

First ETFs must be held at least one day to be eligible for commission free status. Second, other charges that could apply to trading an ETF, such as an ECN fee would apply to trading these ETFs. Third, the value of the trade needs to exceed $100 in the currency of the trade. Finally, commission-free ETF trades don’t count as qualifying trades for the active trader program.

For swing traders and those looking for an opportune time to rebalance, the commission-free ETF offer is a compelling one, even if the window to take advantage of it is quite small.

With a significant vote on the fate of Britain in the European Union coming up, rate decisions from the Fed chair and a looming US election, analysts are forecasting more volatility on the horizon, so the timing of this promotion may be considered opportune by some (either to get in commission-free or get out commission-free).

It’s somewhat hard to believe that 25 years has gone by as quickly as it has, and to have witnessed first-hand the impact of the dramatic shift in technology that’s occurred over that time. As Canadian online brokerages contemplate what the next 25 years might look like, there’s a good chance that there will a much greater shift in technology and a very different landscape of players and opportunities.

Better Terms

Sometimes there’s big changes that make the news and sometimes it’s the little things that catch our attention. For those brave (and prudent) enough to venture into the Virtual Brokers terms and conditions page recently, they may also have noted some changes to just how long that document isn’t.

Recently, it appears that Virtual Brokers has streamlined their terms and conditions page by taking the terms and conditions for individual promotions and placing them into the promotions pages.

While it may not seem like that big of a deal, for new or existing clients looking to see what their client agreement looks like with a brokerage, it’s nice not to have to wade through lots of irrelevant information to stay up to date. Now that said, there’s also information that still exists that is not quite current such as the information on transfer fee promos that expired at the end of March (and it’s now mid-June).

Another change to the fine print has seen the expiration date of their commission-free trading offer go from non-existent when it first rolled out to May 31^st to now December 31^st.

The promotion is three months of commission-free trading (and three months of no platform fees) on their commission-free trading account. In a nutshell, it’s three months of free trading for a deposit of $5,000. Like most other offers, however, there are also strings attached to this one so be sure to read (and take a copy of) the terms and conditions before signing on.

Of course, these fine print changes are something that many brokerages reserve the right to change at any time. There are a few upcoming changes to fees from online brokerages that are noteworthy including fee changes at Scotia iTRADE (set to take effect June 15) and BMO InvestorLine (set to take effect July 1^st)

Discount Brokerage Tweets of the Week

Nicer weather outside may not quite have translated into nicer comments for Canadian discount brokerages on Twitter. Mentioned this week were Questrade, Scotia iTRADE and TD Direct Investing (and strangely Snoop Dogg).

Event Horizon

The days keep getting longer, and it’s an exciting week ahead for discount brokerage-sponsored investor education events. Here are some upcoming sessions that may be of interest to technical analysis enthusiasts, and those interested in ETFs in this week’s selection.

June 14

Scotia iTRADE – Active Investing Using ETFs with Horizons ETFs

NBDB – Introduction to Technical Analysis – Oscillators -[Fr]

From the Forums

Limited Timing

The recently announced commission-free ETF offer from CIBC Investor’s Edge seems to have one downside – time. In this post from reddit’s Personal Finance Canada section in the recent promotion was discussed by a few folks with some interesting thoughts on how to best approach the new offer.

To Bank or Not to Bank

In this post from RedFlagDeals.com’s investing section, one user asks about the pros and cons of going with either a bank-owned brokerage or an independent brokerage.

Into the Close

Last week the world said goodbye to one of the greatest people of all time, Muhammad Ali. It was a particularly difficult loss for many, myself included, and today was his memorial service. One of the most touching eulogies delivered at the service was that from his long-time friend Billy Crystal. We end the roundup on this bittersweet note with a segment of that speech:

‘But didn’t he make all of our lives a little bit better than they were?

‘That my friends, is my history with a man, and I’ve labored to come up with a way to describe the legend.

‘He was a tremendous bolt of lightning, created by mother nature out of thin air, a fantastic combination of power and beauty.

‘We’ve seen still photographs of lightning bolts, at the moment of impact – ferocious in its strength, magnificent in its elegance.

‘And at the moment of impact, it lights up everything around it, so you can see everything clearly.

‘Muhammad Ali struck us in the middle of America’s darkest night, in the heart of its most threatening gathering storm.

‘His power toppled the mightiest of foes, and his intense light shined on America and we were able to see clearly injustice, inequality, poverty, pride, self-realization, courage, laughter, love, joy and religious freedom for all.

‘Ali forced us to take a look at ourselves. This brash young man who thrilled us, angered us, confused, and challenged us, ultimately became a silent messenger of peace who taught us that life is best when you build bridges between people, not walls.

‘My friends- only once in a thousand years or so do we get to hear a Mozart or see a Picasso or read a Shakespeare.

‘Ali was one of them, and yet at his heart, he was still a kid from Louisville who ran with the Gods and walked with the crippled and smiled at the foolishness of it all.

‘He is gone but he will never die. He was my big brother. Thank you.’

Posted on June 3, 2016 by user — Leave a comment

Discount Brokerage Weekly Roundup – June 3, 2016

In case you didn’t get the memo, it’s National Donut Day – oh and apparently there’s a bull market in commodities to mark the occasion. As we head into a new month, the headline of a ‘bull market’ in commodities is great news for Canadian traders, regardless of whether or not the rally sustains itself. For Canadian online brokerages, this could be the break they’ve been waiting for, so long as they’re able to get their story out over and above the Canadian real estate price craze that is dominating the news cycle.

In this week’s roundup, we take a look at the freshly baked offers from Canadian discount brokerages who are offering up deals to woo back DIY investors into the summer markets. Next, we take a look at one online brokerage who has grown its number of clients by over 250% since the great recession. From there we’ll take a look at the latest online brokerage related tweets and what DIY investors were talking about this week.

Sweet Deals are Made of These

With summer just around the corner, most people will be looking to take it easy. Not so at a few Canadian online brokerages drumming up interest with deals & promotions.

Heading into a new month the deals activity appears to have stabilized somewhat with promotions from Scotia iTRADE coming back online in May and a new deal from BMO InvestorLine launching at the beginning of the month to replace their outgoing spring promotion.

One of the interesting trends that seems to be picking up steam is the use of contests. Virtual Brokers was at it again with regards to running a contest, this time for their existing clients, offering up a contest entry for completing a feedback survey. The prizes: 3 draws for an Apple gift card (or a $500 deposit into their account).

As we had referenced last week, National Bank Direct Brokerage, RBC Direct Investing, Virtual Brokers and Scotia iTRADE all have contests going at the moment whereas the ‘cash back’ or ‘free trade’ offers continue to remain on hold.

For those looking for a deal or promotion from Questrade, the good news is that there are still affiliate-based offers to be had that provide cash back or free trades. Specifically, users can use this link for a $50 commission credit or check our deals section on referral offers for a cash back offering. (note: Sparx will receive an affiliate payment for either of these)

Now that the commodity markets (in Canada) seem to be signaling a bullish tone, it will be interesting to watch how or if discount brokerages will move quickly to capitalize on the attention.

Interactive Brokers Grinds Higher

In sports, whenever a team or an athlete goes on a winning streak people start paying attention. In the online brokerage world, however, things are a bit more, um, humble.

As we’ve highlighted in the past, the beginning of the month typically signals a point at which we can check in on the latest trading metrics at Interactive Brokers (since they are one of a few online brokerages in the US that actually report these figures).

For anyone keeping score, trading metrics for the month of May at Interactive Brokers were largely in line with activity in the year thus far: DARTs, client equity and credit balances were healthy. The only sign of an issue was with margin loan balances decreasing on both a month/month and year/year basis.

What was particularly fascinating in looking through these figures is the growth streak that Interactive Brokers has been on.

For some context, each month when these stats are published, there seems to be one number that keeps on growing: the number of total accounts. “How long has this been going?” we wondered since it has been that way for as long as SparxTrading.com has been around and then some. So we checked.

As it turns out, as of the data available (going back to January 2008), Interactive Brokers has been growing the number of users for the past 100 (yep) consecutive months which explains how they’ve grown their user base 263% from 97.2 thousand clients to 352.6 thousand. That despite the great recession/housing crisis, the hubbub in Europe over sovereign debt and all other market pullbacks along the way.

Interactive Brokers Account Growth 2008 – Present

For some context, the number of brokerage accounts at E*trade in April 2016 was about 3.2M so Interactive Brokers is certainly a much smaller player in comparison to its peers in the US and also in Canada. That said, in January of 2014, E*trade had 3M brokerage accounts so the percentage growth in brokerage accounts since then (~7%) has been relatively flat whereas at Interactive Brokers client base grew 45% over the same period.

While all streaks must eventually come to an end, this is one is an interesting signal that a) investors are continuing to turn to DIY platforms for investing/trading and that b) Interactive Brokers must be doing something right when it comes to catering to active traders – who, incidentally, are the most highly prized (and profitable) client segment of the market for online brokerages.

Naturally their competitors and clients would want to know what their ‘secret’ is however as CEO of Interactive Brokers revealed, the ‘secret’ is a relentless focus on technological dominance and lowering the cost of trading execution.

As part of a recent communique to clients and again on their Twitter feed, they highlighted new order types available to clients – an adaptive algorithmic market order.

While it is a mouthful to say, the clip shown below demonstrates just how far ahead of the other brokerage players (at least in Canada) Interactive Brokers is when it comes to trading experience. A “smart” market order that can adapt to market conditions to get a little better of a fill price is indicative of the technical savvy of Interactive Brokers and also a sign that human traders are increasingly turning to machines/algos to help compete against the robots they’re inevitably trading against (their Accumulate Distribute Algo is also very interesting for any trading geeks out there).

With that in mind, it will be interesting what technology the other Canadian online brokerages embrace to provide active trading clients with in order to compete against other traders. Even more interesting, however, will be what technology the brokerages will embrace to compete against the robo-advisors that are also chipping away at their market share.

Discount Brokerage Tweets of the Week

An interesting selection of queries, comments and some shade this week. Mentioned are Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Making a Move from Questrade

As many DIY investors will confess, keeping multiple trading accounts offers the best of all worlds for features but not so much for convenience. In this post from RedFlagDeals.com’s Investing forum, one user is looking to consolidate from Questrade to BMO InvestorLine and receives an interesting answer worth considering.

Going Steady

Going the couch potato route is a popular approach for many investors. How well it works, however, can also be influenced by the commissions paid for ETFs. In this post from reddit’s PersonalFinanceCanada section, one user asks for comments comparing TD’s popular E-Series with ETFs and how regular (large-ish) contributions might factor in.

Into the Close

It’s finally Friday. There’s definitely no shortage of ways to enjoy this weekend from inside or out. While there’s no telling what next week in the markets soon – an interest rate hike isn’t likely to be one. As for exactly when, for that we need psychics. Now if we could only ask this duo (see video) when that hike will hit or have them around during earnings season, that would be something!

Posted on June 1, 2016 by user — Leave a comment

Discount Brokerage Deals & Promotions – June 1, 2016

Summer is close at hand and now that May is behind us, those who have sold in May and gone away might still find a reason to come back to the markets – at least that’s what some brokerages are banking on.

As we launch into a new month the discount brokerage deals and promotions landscape this year looks quite different than a year ago at this time.

For starters, one of the major sources of promotional offers for DIY investors, Questrade, is still in a holding pattern with no new noteworthy promotions being put forward. This is in stark contrast to last year where they were leading all brokerages with the most offers. For those still seeking a deal with Questrade, several are available, including (see below) links to affiliate plans and refer-a-friend bonuses.

In terms of the bank-owned brokerages, there were two interesting developments. First, BMO InvestorLine started the month with a new offer for the summer to replace their outgoing promotion that concluded at the end of May. Second, Scotia iTrade recently celebrated their 1-year anniversary of their downtown Toronto investor centre opening and marked it with incentives like free gelato and movie passes to meet with investment representatives.

There’s been a recent uptick in the number of contests being put forward by online brokerages so it will be interesting to monitor this approach to see if this will be a strategic way to drum up excitement for online brokerages during the summer months.

That said, there are a number of offers that are scheduled to expire during and at the end of June. Desjardins Online Brokerage’s commission credit offer, Virtual Brokers Apple gift card promotion, BMO InvestorLine’s refer-a-friend and National Bank Direct Brokerage’s commission-free Canadian ETF promotion are all on the chopping block this month so it will be interesting to see which discount brokerage promotion, if any, gets renewed.

If not, it will definitely be a much smaller field of brokerages and offers for DIY investors to choose from, at least until the fall season shows up when brokerages will be more interested in ramping up their promotional activities.

Expired Deals

The turnover in deals in May was not that substantial, with an offer from BMO InvestorLine and Virtual Brokers’ referral deal expiring. At the time of publication, it was not confirmed if Virtual Brokers would be extending the Cash Referral Program however we will post an update when we have one.

Extended Deals

No deals were officially extended at the time of publication.

New Deals

BMO InvestorLine was the only online brokerage to kick off the new month with a new offer. Specifically, BMO InvestorLine is offering investors cash back for opening and funding a new qualifying account. The cash back amounts range from $200 to $1,000 cash back depending on deposit sizes. In keeping with many of their previous promotions, the minimum deposit to qualify (for the entry level cash back amount) is $100,000. Interestingly, and unlike many other brokerages, BMO InvestorLine enables this cash back offer to be combined with their referral bonus ($50 for a minimum deposit of $50,000).