Tag: Weekly Roundup

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Discount Brokerage Weekly Roundup – December 2, 2016

Every now and then, the real world throws an interesting case study in the uncertainty factor of markets. The air miles reversal on letting their points expire is a great example of why in markets, just as in life, the scenario of the ‘unknown’ needs to be priced into assumptions. Perhaps the best way to sum it up is that the future always has some degree of uncertainty to it. For DIY investors, this is now the territory they find themselves in with regards to the Canadian online brokerage space heading into 2017.

In this week’s roundup, we take a look at the latest deals & promotions activity at Canadian discount brokerages to give our view on what the market is saying and what may be coming around the corner heading into 2017. Next we take a look at the latest online brokerage rankings to see what they can tell us about the landscape of Canadian discount brokerages and online investing in general. From there we’ll take a look at the latest tweets and close out with chatter from investor forums.

 ‘Tis the Season

Deals have been a hot topic for the past few weeks. With Black Friday and Cyber Monday now behind us, the start of a new month provides the chance to take the pulse of the latest promotional offers from Canadian discount brokerages.

In a market, ebbs and flows are natural. For the Canadian discount brokerage marketplace, deals and promotions fluctuate across the year but heading into the last month of 2016, there’s a noticeable pullback. The biggest contributor to the month over month decline in offers was from Scotia iTRADE, whose three promotional offers expired at the end of November and were not renewed.

Of course, to make things more interesting, December also has three offers set to expire from three different brokerages. Should these offers not be renewed or replaced with other offers, this would reduce the number of cash back/commission-free trades from six down to four. Interestingly, BMO InvestorLine’s cash back offer is set to expire in early January 2017 meaning that it is possible that cash-back and free-trade promotions could make up the smallest segment of offer types at the outset of the new year. This would be a very different scenario than has been the case over the past three years in which cash-back or commission-free trades, in particular, have been a mainstay of the deals section.

With RRSP season not that far away, however, odds favour a surge in the marketing efforts by Canadian online brokerages in the new year. Some interesting hiring patterns at several brokerages combined with an increase in advertising on social media sites, such as Twitter and Facebook mean that DIY investors can look forward to getting the message online when or if brokerages decide to push go.

The bigger picture, however, seems to suggest that the industry as a whole is in a bit of a transition period. When it comes to incentives specifically, however, the online brokerage industry is no longer aggressively innovating or competing.

Incentive offers are, arguably, a signal of market sentiment and confidence. The absence of new offers or the relatively slow velocity of offers getting to market suggests that while competition is present, many brokerages seem uncertain about their own direction at the moment. Ironically, for those Canadian online brokerages that do not appear excited about online investing, it will be hard to convince DIY investors to be excited too.

Season’s Ratings

Aside from Christmas displays and holiday cheer, the final few weeks of the year are when Canadian discount brokerage rankings get published. Earlier today, brokerage rankings from financial services research firm Surviscor were published online and broadcast on BNN.

This year’s top rated Canadian online brokerage was Qtrade Investor, who scored 87% on the scorCard ratings which take into account nine different categories of a firm’s performance. While Qtrade Investor’s rating was significantly higher than its competitors, the second place through fifth place ratings were separated by only 2 percentage points signaling that in many ways, the majority of Canadian discount brokerages are neck in neck when it comes to features, pricing and accessibility.  In other words, nobody really stands out.

Source: BNN Screenshot

From the BNN broadcasts, however, it also seems like the online brokerage industry, at least in 2016, has been trying to figure out how or if robo-advisors will make a difference. In an in-depth study on robo-advisors by DALBAR Canada (full disclosure, we assisted with analysis in this study), there are very clear differences in the way Canadian robo-advisors attract and work with new clients.

When compared side-by-side with Canadian discount brokerages, however, there are even more apparent differences that emerge about the way in which robo-advisors are handling bringing new clients aboard and about the sign up process in general.

Like all discount brokerage rankings, we always suggest a measure of caution when looking at the results.

Over the course of 2016, we have chronicled the changes taking place at Canadian brokerages and can certainly validate the claims that Qtrade Investor has gone to great lengths to improve many areas of their offering, from pricing and features to overall user experience.

As for the rest of the field, however, the Surviscor ratings reflect the challenge in objectively assessing the changes that have been made. For example, when changes are made to a website or to a trading platform, the improvement in “user experience” is difficult to quantify. Canadian discount brokerages may have made improvements, however, the extent to which they are noticeable and quantifiable (such as changing pricing) impacts how drastically they can be distinguished from competitor firms.

On an interesting to note, three of the top five Canadian online brokerages in the latest ratings were not bank-owned brokerages.

One place in particular that the Surviscor ratings are able to shine is in the tracking and measurement of response times across channels, such as emails. The key takeaway from Glenn Lacoste, president of Surviscor, as well as from Dale Jackson in a segment broadcast earlier on BNN is that service response times have degraded at Canadian online brokerages.

For Qtrade Investor, however, there are clearly a number of areas in which they’ve managed to make meaningful strides in 2016.  According to a comment in today’s press release, Catherine Wood, Senior VP and Head of Online Brokerage at Qtrade Financial Group stated:

“The results of this assessment validate our commitment to improving and streamlining the client experience and to offering competitive pricing in order to provide the absolute best value among Canada’s online brokerages. The enhancements we made this year were inspired by client feedback and supported by client usage analytics, and thus far we’ve been very pleased by the positive reaction from our clients.”

Encouragingly, there appears to be an increased reliance on client usage data in the decisions driving changes to features and user experience.

Looking forward into 2017, many online brokerages will need to finally decide if and how they are going to be deploying a digital advice product and whichever direction they go in, start to work to innovate the online brokerage experience for DIY investors. If there’s one thing that these latest rankings have made clear, is that innovation and improvements need to happen often and visibly throughout the year. Standing still only lets other firms who are hungrier to win get ahead.

Discount Brokerage Tweets of the Week

This week marketing was pushing the envelope and getting people talking. But isn’t that the point? Mentioned this week, was BMO InvestorLine, CIBC Investor’s Edge, Questrade, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

‘Mo Money, ‘Mo Problems

It’s definitely a nice problem to have but if your portfolio grows beyond the CIPF coverage, what then? In this post from Redflagdeals.com’s investing section, one user tries to find out what their options are when it comes to getting more coverage for a bigger portfolio, especially in the event that a brokerage goes bankrupt.

DIY another day

Have we reached peak DIY investing? The growth in popularity of passive investing strategies coupled with the rise of robo-advisors means that those on the fence about DIY investing are getting mixed messages when it comes to the merits of stock picking versus having someone or something else do it. In this post from reddit’s personal finance Canada section, it was interesting to gauge the sentiment of would-be DIY investors stepping into the markets for the first time.

Into the Close

Another week in the books. With only a few weeks (or days) left until Christmas, good luck to the shoppers looking to make it through their shopping list. For those savvy investors who’ve gone long on online retailers, this is hopefully a great weekend to watch the transaction traffic pay off. Either way, have a great weekend!

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Discount Brokerage Weekly Roundup – November 25th, 2016

For investors, every day in the markets feels like Black Friday. From the opening bell through to the close and into the night, there’s no shortage of folks looking to capitalize on a great deal. Fortunately for DIY investors, there’s at least one place that pulls together the deals and promotions from Canadian discount brokerages to make shopping around much easier (shameless plug much?).

This week’s edition of the roundup continues the deals deep dive, looking at part two of the survey we ran on which discount brokerages Canadian DIY investors are considering when hunting around for deals online. In keeping with tradition we’ll also be serving up a healthy dish of social media chatter from Twitter and what investors had on their minds from DIY investor forums.

Let’s Make a Deal

Part two of our in-depth analysis of the deals & promotions offered by Canadian discount brokerages takes a closer look at which online brokerages DIY investors reported looking at while shopping around for an online trading account. Specifically, this post focuses on which brokerages appear high on DIY investors’ list as they peruse the deals & promotions offerings and which brokerages just don’t seem to be hitting the mark.

Pick a number

Starting first with how many brokerages DIY investors have in mind while shopping. The graph below shows that a large segment of respondents indicated that, by the time they’d made it to the deals & promotions section on SparxTrading.com, they had already short-listed a couple of brokerages.

Recall from our previous report that among those visiting the deals and promotions section, there was a significant likelihood that a deal or incentive offer was a part of choosing who to sign up with. Of those who completed the survey, 85% or so were actively in the market for at least one brokerage whereas 15% indicated they were ‘just browsing’ to see what was out there.

For respondents coming through the deals and promotions section, close to 89% of individuals had narrowed the choice down to at least 3 brokerages. Specifically, a large segment of individuals (39%) had one particular brokerage in mind, followed by those who were trying to decide between two brokerages (32%) and three brokerages (18%) respectively.  Although some individuals were really undecided (between four and six choices) this group was relatively small.

Who’s on first

With so much data to explore, there were all kinds of interesting insights to be derived. One of those interesting points was that of the 14 Canadian discount brokerages respondents could have chosen from, there were 12 that were mentioned, albeit to varying degrees.

The two brokerages, interestingly, that were not mentioned as being on the minds of respondents while searching through the deals section were HSBC InvestDirect and Jitneytrade. While the latter may only appeal to specialized or professional traders, HSBC InvestDirect’s absence from the response set was curious since they are bank-owned, conduct some marketing and are currently running a promotion. Traffic data through SparxTrading.com also validates this observation that there is an absence of curiousity about HSBC InvestDirect or Jitneytrade to the same degree that exists with other online brokerages.

At the other end of the spectrum, TD Direct Investing appeared to be on the minds of many DIY investors. Whether it is a function of marketing their DIY investor offering more effectively, their size, pricing or total offering, TD’s self-direct investor services appeared to resonate with respondents of the survey. Ironically, those individuals in the deals and promotions section looking for an incentive from TD weren’t going to find anything beyond the standard transfer fee coverage. There are occasional whispers that in-person visits with an eager rep can land clients with a couple (10) of free trades however this incentive is not widely broadcasted.

Interestingly, of the firms that respondents indicated was their only choice while browsing for an online trading account (i.e. their top choice), TD Direct Investing, CIBC Investor’s Edge and Credential Direct do not have advertised offers that most investors would find appealing (e.g. cash back or commission-free trading).

Another interesting angle on the responses provided was in how respondents were shopping for online brokerages. In particular, how many alternatives (if any) are shoppers considering alongside any given online brokerage. Overall, it appears that on average shoppers are considering between one and two options when browsing through the deals section.

The heat map shown below shows the distribution of alternative choices being considered for each online brokerage.

While sample size suggests some caution with the data, there are nonetheless interesting findings where data appeared to cluster.

For example, shoppers considering Virtual Brokers appear to be consistently considering one other firm. That is to say that 83% of the those who indicated considering Virtual Brokers were doing so with only one other choice in mind.

Another interesting pattern was that Questrade appears to be a strong challenger to bank-owned brokerages. Based on correlation data, Questrade was considered alongside bank-owned brokerages moreso than Interactive Brokers, Qtrade Investor or Virtual Brokers. Another read on that data, however, could be that bank-owned brokerages have successfully managed to change the value perception and have now started to encroach on what has traditionally been the territory of ‘low cost’ brokerages such as Questrade.

Finally, while there are still lots of great data points to explore (let us know if you’re interested in learning more) one of the most interesting competitions appears to be between Scotia iTRADE, who at the time of the survey had several promotions running and TD Direct Investing who at the time of the survey only ran the transfer fee promotion.

Despite their differing profiles, it appears that deal hunters gave particular consideration to either TD Direct Investing or Scotia iTRADE. Curiously, the former does not run as many promotions as the latter while iTRADE has the highest standard commission fee. After Scotia iTRADE, both CIBC Investor’s Edge and, perhaps surprisingly, Desjardins Online Brokerage, also emerged as challengers to TD Direct Investing.

Key Takeaways

While it may not be surprising to hear that those in the market for an online trading account would likely have a favourite, the data from the survey suggests that certain brokerages are being considered more often than others.

The presence of a deal, in and of itself, doesn’t guarantee that DIY investors will pay attention. Conversely, it doesn’t always take a promotion to get the attention of investors online. That said, given the large portion of those in the market for online brokerage services who narrow down their options to about two providers, an onboarding bonus can certainly give a DIY investor a little more incentive and an online brokerage the edge it needs to win at the margins.

Discount Brokerage Tweets of the Week

Every so often a little blip on the radar pops up to signal something interesting.

This past week (and month), social media for BMO InvestorLine appears to have sprang to life with a small but growing reference to #BMOInvestorLine from a couple of BMO InvestorLine employees on social media. The move to take a more hands on approach to social media by employees is similar to what TD Direct Investing has done, although BMO InvestorLine has yet to start tweeting from a dedicated InvestorLine account.

Currently, it appears that the push on social media has to do with their “SmartFolio” robo-advisor service. With BMO InvestorLine now showing signs of life on social media, it’s likely going to touch off another race with other bank-owned brokerages (and the non-bank-owned brokerages not on social media) to get their social media strategies up to speed.

And, speaking of other Canadian discount brokerages mentioned on Twitter, it was a week filled with interesting questions, occasional gripes and the rare shout out for good service. Mentioned in this week’s tweets were BMO InvestorLine, CIBC Investor’s Edge, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Sizzle or Fizzle

With any product or service hype or marketing comes along with the territory. For one DIY investor, however, this post from reddit’s Personal Finance Canada section shows how they’re trying to get a different side of the story for the BMO InvestorLine experience.

ET No Phone

Here’s a question for our time: what happens if you don’t have a phone number? Interestingly, one reddit user from the Personal Finance Canada section created this post since s/he didn’t have a phone number because there’s facebook and google voice apps now. Read on to see how signing up for a Questrade account was a challenge. Nice to see that Questrade also chimed in too!

Into the Close

That’s a wrap on yet another record breaking week in the markets and another head shaking week in politics. Fortunately, there are lots of deals to be found (which some could argue is a sport) as well as actual sports to be enjoyed. Whatever your competition this weekend, best of luck!

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Discount Brokerage Weekly Roundup – November 18, 2016

With shipping, tripping and champagne sipping, it was another wild week in the markets. There was volatility galore which always makes for exciting times for both traders and the business news media. And, even though this wacky week has come to a close, another very big week is close at hand with ‘Black Friday’ sales and deals already starting to spring up in advance of the infamous shopping weekend. Of course, while many businesses have wised up to the fact that when consumers are out looking for deals, it may be good to start offering them up, Canadian discount brokerages are definitely holding out.

In this special edition of the roundup we take a deep dive into the results from the latest SparxTrading.com survey.  Part one of this report looks at whether or not deals matter to DIY investors and analyzes what Canadian discount brokerages can do in response. From there we’ll take a look at what DIY investors had to day about Canadian brokerages on social media and what got people talking on the forums.

What’s in a deal?

For many years now, Canadian DIY investors looking to invest online have had to figure out how to choose a Canadian discount brokerage from among the dozen or so options out there. To help them with that exercise there have been numerous “rankings” of brokerages and of course, lots and lots of opinions. In addition to winning hearts and minds, winning wallets has been another strategy that several brokerages have attempted to employ in various shapes and forms.

While many Canadian discount brokerages try to figure out what DIY investors are interested in, at SparxTrading.com we were curious about whether or not many of the deals and promotions that Canadian online brokerages are using are appealing and relevant. With 26 advertised deals currently in play, and with some interesting moves by certain players in the market in the past year, we thought it would be interesting to see the degree to which DIY investors are enthusiastic about getting a deal when looking to sign up for an online brokerage account.

Additionally, we were interested in learning about which Canadian discount brokerages DIY investors seemed to be considering while hunting around for a deal. With lots of money that goes into marketing, it was interesting to see whether or not those efforts are paying off with DIY investors.

In part one of this analysis, we review the numbers and the story behind whether or not deals and promotions matter to DIY investors when shopping for an online trading account.

Do deals matter to online investors?

In a word, yes.

In the data collected by visitors to SparxTrading.com deals & promotions section in the month of October, we found that the overwhelming majority – 84% of visitors who completed the survey – stated that getting a deal helps to determine which online brokerage they ultimately end up selecting.

While it stands to reason that somebody who has made their way to the deals and promotions section would naturally be interested in or curious about a deal or promotion, it is nonetheless a number that warrants consideration. Those that are in the market for an offer or who are deciding between a short list of candidate online brokerages might just use the deal as a deciding factor.

Looking at the breakdown of deals and promotions, there are currently 26 advertised offers from Canadian discount brokerages.  Unpacking that number a bit further shows that not all brokerages are offering the same kind of incentives or promotions. Further, as we reported previously, it shows that there is a disconnect between the offers that the vast majority of DIY investors are looking for and the ones being offered up by brokerages.

Previously we reported that close to two thirds of respondents indicated that cash back promotions were the preferred offer but looking at the deals currently being advertised, only 5 brokerages are offering this to clients. Specifically, BMO InvestorLine, HSBC InvestDirect, Questrade, Scotia iTRADE and Virtual Brokers are offering cash back promotions, however only BMO InvestorLine and HSBC Investdirect do so directly, the remaining firms only offer a cash back incentive via referral offers (which we covered in last week’s roundup).

After cash back offerings, the next most popular were commission credits. These are much more popular for online brokerages to offer because the what consumers pay to execute a trade is not the same as what a brokerage may pay to execute and clear it. Thus getting $100 in trading credits is a win for consumers and a win for brokerages who might only pay a fraction of the face value of the trading commission.

The findings of this survey were quite revealing, in part, because they highlight the gap between what many DIY investors are looking for and what the online brokerage marketplace is prepared to offer. At least at most firms.

DIY investors are constantly looking at and for the next big thing, which means that innovation is always on the minds of investors. So, stepping into trading interface or an online experience that doesn’t convey “innovative” communicates that an online company either doesn’t get it or doesn’t care to. Incentives, such as deals, can help sweeten the deal or focus investors’ attention on price rather than features.

Which online brokerages are DIY investors shopping for?

There’s a saying in marketing, ‘half the money spent on advertising is wasted, we just don’t know which half.’

The results of who online shoppers were looking for certainly got our attention. What they reveal is that marketing dollars or strategies might not be working the way they could at certain online brokerages.

Stay tuned for part 2 of this post in which we report on which Canadian online brokerages DIY investors are actively looking at and which ones they’re looking past.

What can Canadian discount brokerages do?

Data points such as these help to illustrate that the best way to win market share is to listen to the market. Incentive programs are one powerful lever to get individual investors to pay attention or shortlist a brokerage – even to the point of helping to tip the scales in favour of a brokerage. Canadian discount brokerages who aren’t offering a promotion that is widely sought after need to start if they would like to appeal to a broader client base. More specifically, pushing out a cash-back offer appears to be what most DIY investors would find interesting. It should come as no surprise that when it comes to DIY investors, money talks.

Where are brokerages heading next?

Just over a month ago, trading software provider Recognia, organized their 8th Online Broker Summit in Chicago in which many online brokerages from both Canada and the US gathered to discuss trends and developments in the North America online brokerage industry.

One of the major focal points of this summit was on understanding how to navigate the ever changing world of online user experience as well as trends in what DIY investors are looking for.

Below is a quick video highlight reel prepared by Recognia to showcase what online brokerages are thinking about heading into the year ahead.

https://www.youtube.com/watch?v=O-Etqjj9dCY

Discount Brokerage Tweets of the Week

It was a choppy week in the markets but surprisingly only a handful of DIY investors ran into technical issues. Mentioned this week were Credential Direct, Questrade, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Betting Big

With the recent surge in marijuana stocks, penny stock chatter has picked up. In this post on reddit’s Personal Finance Canada section, one investor is looking to take a big gamble on penny stocks in a TFSA and is wondering what they need to know before taking the plunge.

A fistful of dollars

Is it possible to get a better trading commission rate at TD Direct Investing? One user on reddit seemed to suggest it’s possible in this post however there are some important caveats pointed out by other readers.

Into the close

That’s is for another crazy week. 2016 still has a few weeks left in it but by the looks of things it won’t be going quietly. For those in need of some laughter as a break to the week that was, here are some hashtags from Twitter that will give you a chuckle. Have a great weekend!

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Discount Brokerage Weekly Roundup – November 11, 2016

If the world were to go to hell in a handbasket, the market would respond by going bullish on basket makers and transportation. Such is the lens of a trader. Despite the volatility and uncertainty attached to a Trump presidency, the sell-off in the moments following the Trump election quickly corrected by the time markets opened.  For observers of the market, it was a unique lesson in how quickly the great voting machine that is the stock market can recalibrate to figure out where the opportunities lie and where they don’t. What does a ‘Trump’ world look like for Canadian online brokerages and DIY investors? There may not be a simple answer, but the simple lesson seems to be: be prepared for the unexpected.

In this week’s roundup we take a closer look at the latest Canadian discount brokerage to bring a referral program to back online and how it stacks up to offers currently in play. From there we’ll take a look at one non-bank owned brokerage and how its latest set of features are making it more competitive. To round out this week, we’ll take a look at the latest tweets from investors and what forum users were chatting about.

Virtual Brokers Casts a Vote for Friendship

After a break of several months, the refer-a-friend promotion from Virtual Brokers is back on the list of active deals being offered. With the relaunch of this referral program, Virtual Brokers joins three other online brokerages (Questrade, Scotia iTRADE and BMO InvestorLine) that offer some kind of referral program bonus for both the new enrollee as well as the individual who made the referral. Interactive Brokers, another popular online brokerage, does offer a referral bonus but only to the individuals making the referral, not to the individual enrolling for a new account.

Of the group of referral offers, Virtual Brokers’ minimum requirement of a $5,000 deposit is second behind that of Questrade’s and significantly lower than that of either Scotia iTRADE (minimum requirement of $10,000) and BMO InvestorLine (minimum deposit of $50,000). Like offers from Questrade and Scotia iTRADE, Virtual Brokers’ referral plan offers an increase in cash-back reward for higher deposit levels.

Key differences in the refreshed version of their cash back promotion include offering up more money and an additional deposit tier. While the previous promotion offered two tiers, the new referral structure offers 3. The tiers of Virtual Brokers’ new referral plan range from between $5,000 to $24,999 ($25 bonus given), $25,000 to $49,000 ($50 bonus given) and $50,000+ ($75 bonus given). For the individual doing the referring, the amount they receive for each referral ($25) remains unchanged as does the additional amount for every third referral ($50).

Of course, like any offer, it’s important to look closely at the details to see exactly what’s on the table. For the Virtual Brokers referral offer, there are some important caveats.

First, the referral can only happen between friends or family which are defined as follows:

“A friend, for the purposes of this offer, is someone with whom you have a personal relationship. A “personal relationship” is defined as a relationship between two people who have had direct, voluntary two-way communications where it would be reasonable to conclude that the relationship is personal.”

“Family relationship” for the purposes of this offer sharing is a relationship between two people related through a marriage, a common law partnership, or any legal parent-child relationship, who have had direct, voluntary two-way communications (sic)

Of the different referral programs offered by Canadian discount brokerages, only Virtual Brokers and Scotia iTRADE explicitly define the terms “Friend” and “Family relationship” and both use the same definition as part of the terms and conditions. By comparison, neither Questrade nor BMO InvestorLine make this distinction a part of qualifying for their referral programs.

Another important detail for this offer is that referral amounts will be deposited into the referring parties’ margin accounts by March 31, 2017. Between now and that time, the individuals receiving the referral have to keep their account in good standing (i.e. no margin calls) and the referee also has to ensure a minimum qualifying balance is maintained.

Third, similar to the conditions stipulated by Scotia iTRADE, this referral offer is not open to residents of Manitoba or Quebec. Curiously, neither Questrade nor BMO InvestorLine have these geographic restrictions in place.

So how do the referral offers stack up with one another?

From the graphic shown below, what DIY investors receive as part of their participation in a referral program depends on what they deposit.

Refer-a-friend incentives at Canadian discount brokerages (all amounts shown in dollars).

Of the four Canadian discount brokerages offering referral programs, Questrade is offering the most to DIY investors and their friends, across all deposit tiers up to the $50,000 mark, where they are tied with Scotia iTRADE.

In the $1000 to $4,999 deposit range, Questrade’s referral bonus stands uncontested.

For Virtual Brokers, the table above shows that they appear to be competing more closely with bank-owned brokerages rather than going toe-to-toe with Questrade’s amounts, even though the payout structure to referrers is identical to the Questrade model.

Finally, what this chart also shows is that BMO InvestorLine, regardless of the deposit tier, is not really interested in attracting deposits underneath $50,000 and is not prepared to offer up what other brokerages are in terms of a referral bonus offer. The one caveat to that is that unlike other brokerages, BMO InvestorLine allows their referral bonus to be combined with another promotion – which at this time only includes an offer that requires a minimum deposit of $100,000 to qualify.

The addition of a new deal into their list of offerings puts Virtual Brokers back on the board for referral offers and gives DIY investors looking for an online trading account one more potential reason to consider starting out with Virtual Brokers, an advantage over the 8 or so other brokerages not offering a referral-based sign up bonus.

From a business perspective, offering a referral bonus makes quite a bit of sense in that referral plans help Virtual Brokers fix their cost of acquiring a new client. In a marketplace that is so competitive, every new client matters and how much it costs to get that new client is increasingly becoming more expensive. Added to that, the fact that the offer is a cash-back promotion rather than a commission-free offer makes it significantly more appealing to DIY investors hunting for a deal.

Ultimately, whether someone wants to recommend a brokerage to a friend or family member comes down to how well a brokerage is doing its job. While enticing, the referral amounts are not set nearly high enough to have someone put their own reputation on the line for a substandard experience. So, while setting up a referral program is a good first step to growing a client base, the success of that program will depend on how great an online brokerage makes its existing customers feel.

Back the Feature with Qtrade

Over the past several weeks, Qtrade Investor has been rolling out new features and pricing changes that signal they’re committed to evolving their offering to DIY investors. In last week’s roundup, several of their feature ‘enhancements’ were referenced, notably their expansion of the list of commission-free ETFs as well as improvements to the online user experience.

A few more features that warrant a mention include their dividend reinvestment tool that simplifies setting up dividend reinvestment strategies as well as additional Morningstar ratings categories for ETFs and mutual funds based on sustainability, which were launched in March of this year.

Another interesting development at Qtrade Investor is the lowering of the threshold to qualify for a transfer fee credit (up to $150) from $25,000 down to $10,000. Although not stated on the website, representatives from Qtrade have indicated this offer is open until the end of December. This update to their transfer fee promotion positions them atop the transfer fee offer group, ahead of second place RBC Direct Investing who requires a minimum transfer amount of at least $15,000 to be eligible for their transfer fee credit and well ahead of the standard amount of $25,000.

Looking at the big picture for Qtrade, with this long list of features, they are working to remove the ‘friction’ involved in becoming a client.

The combination of lowering pricing, expanded product selection (ETFs), improving accessibility to their platform, both in terms of technology (via mobile trading), as well as by implementing steps such as the transfer-in credit referenced above, mean that over the past year, Qtrade Investor has managed to make big strides in staying competitive with the larger bank-owned brokerages as well as their non-bank owned peers.  While not calling out a winner in the upcoming online brokerage rankings, these elements certainly make Qtrade Investor seem like they’re going to finish 2016 much stronger than when they started.

Discount Brokerage Tweets of the Week

As this week’s election has proven, Twitter can spell the difference between election glory or defeat. For Canadian discount brokerages, this past week spoke volumes in terms of what prompted users to speak up and speak out about. Mentioned this week, CIBC Investor’s Edge, Questrade, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

TFSA trading

When is a trade not a trade? It’s a fine line to walk for those actively trading their TFSA accounts – something that is the source of a great deal of controversy. In this post from reddit’s Personal Finance Canada section, more than a few users chimed in to help provide their perspective and learning on when trading in a TFSA might not be so tax-free after all.

Into the Close

That’s a wrap for this week. If ever there was a TGIF card to play, it is definitely going to get played here. Of course, while it would be easy to recoil into sports, Netflix or some other well-deserved distraction, today more than any other it is important to remember and honour the sacrifice and service of the many men and women who helped fight for the freedom, democracy and way of life we enjoy in Canada. Thank you to our veterans and to those unsung heroes working to keep Canada safe and welcoming.

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Discount Brokerage Weekly Roundup – November 4, 2016

Patience is a virtue. Or for some, it’s a way of life. Cubs fans can finally celebrate winning the world series, somewhat ironically on a week when market bears were also cheering their recent victories.  For Canadian discount brokers, more than a handful have decided that they’re done playing the waiting game and are going to be chasing the prize of getting new clients as we head into the final stretch of 2016.

In this week’s roundup, we start with a look at what’s happening in the deals and promotions space as we head into a new month and whether Canadian discount brokerages are starting to pick up signals from what investors are asking for in the market. Next we take a look at a few brokerages that we spotted rolling out some upgrades and changes. From there, we’ll take a look at the latest feedback from investors on Twitter (hint: US presidential candidates aren’t the only ones catching heat). Finally we close out with a few choice threads from the Canadian investor forums.

Market Clearing Price

Now that a new month is here, it’s time for a deals & promotions refresh. Heading into November there wasn’t a lot of turnover forecasted to take place with only three promotions set to expire at the end of October.

A pair of promotions from BMO InvestorLine as well as an offer for commission-free ETF buying at Qtrade Investor were on the chopping block however two of the three offers, both from BMO InvestorLine actually managed to get extensions into 2017.

The commission-free ETF buying offer from Qtrade Investor did expire at the end of October however as the sun was setting on that offer, Qtrade Investor announced that they are adding 40 more ETFs to their commission-free list, bringing the total number of commission-free ETFs that can be bought and sold with them to 100.

On a month over month basis, then, the deals and promotions section shrank by one compared to October, bringing the total number of active advertised offers to respectable 23.

Transfer offers edged ahead of the cash back/free trade offers as the most popular category of deal offered, and, Scotia iTrade pulled ahead of competitor firms as the discount brokerage offering the highest number of deals getting ahead of Desjardins Online Brokerage and Questrade. Interactive Brokers is still not on the list of Canadian discount brokerages pushing a sign up promotion however their ongoing growth and success at client acquisition suggests they’re doing well in this department all things considered.

Even though the start of November has been quiet, there still might be a few interesting promotions launched before the month and year are out.

Several brokerages have expressed interest in launching something noteworthy to DIY investors in November, and data from our own internal sources show that bargain hunters were out in droves this past October signaling DIY investors are actively looking for incentives and providers.

Early data from the survey we ran last month also indicated that not only does having an offer make a huge difference to the overwhelming majority of DIY investors shopping for a discount brokerage but there is a significant mismatch between the brokerages offering deals and the brokerages DIY investors are seeking deals from.

For certain Canadian online brokerages, the data paints an interesting picture in that offers alone, while clearly important, aren’t enough to get on DIY investors’ radars. There also has to be a significant degree of marketing and awareness building that precedes the moment where a DIY investor decides to kick the tires.

On the flip side, for DIY investors, lesser known brokerages are going to have to be able to compete much more aggressively and creatively to get attention.

This has already started to take place with Desjardins Online Brokerages’ latest offer of a flat 1% of deposit size being put towards commission credits. This offer positions them as one of the most competitive offers out there for this kind of promotion within the last four years and has already moved the needle on who’s paying attention to them.

Looking ahead to the next several weeks, it will be interesting to see just how many brokerages sit up and start to pay attention to what the marketplace seems to be asking for and who will be content sitting on the sidelines.

Qtrade Banks on Change

As we had reported in a previous roundup, Qtrade Investor quietly rolled out their removal of the ECN fees for standard trading commissions. This past week, Qtrade also rolled out a few more enhancements to their offering, adding 40 commission-free ETFs to the existing list of 60 and bringing the total number of commission-free ETFs to 100. Along with Qtrade Investor, Questrade, Virtual Brokers, National Bank Direct Brokerage and Scotia iTRADE each offer some kind of commission-free element to buying (or buying and selling) ETFs.

In addition to improvements in the number of ETFs available for commission-free trading, Qtrade Investor also announced upgrades to their mobile offering by adding an Android app as well as telegraphing an upcoming improvement to their dashboard – presumably making it easier and more intuitive for investors to get important information and navigate the site.

Qtrade wasn’t alone this week with launching upgrades and enhancements – National Bank Direct Brokerage also fine-tuned its homepage layout and CIBC Investor’s Edge also upgraded their investor newsletter with a much more modern look and feel.

Changing layouts and online technologies is not without its inherent risks, however.

One very interesting case study happening in real time is the roll out of WebBroker “improvements” and generally mixed reactions it has received from DIY investors. Given the large number of users and the popularity of TD Direct Investing, there were more than a few investors who became entrenched in the “old” layout and interface who were less than pleased at having to change. Add to that stability issues with the platform and an already impatient and vocal DIY investor crowd has not taken kindly to this transition (a quick review of Twitter comments and forum chatter makes this clear).

Clearly the paradox with online brokerages is balancing what existing clients have come to learn about a platform and product with what new clients (especially younger clients) are looking for in terms of user experience and design features.

For Qtrade Investor, it will be interesting to monitor the reactions to their latest changes to see whether they were able to keep things similar enough to have users feel comfortable with the change but also to upgrade the user experience in a way that makes Qtrade look and feel modern and forward thinking.

Whatever the outcome for Qtrade Investor, the move to update their look and feel is a sign of the times.

In such a competitive space, it is evident that Canadian online brokerages who can get the balance between fresh and familiar right are going to get significantly more points with investors and therefore not end up being complained about online.

Discount Brokerage Tweets of the Week

While Twitter users are trying to sift through the many tweets from US presidential candidates, they still managed to find some time to pipe up about what’s happening with Canadian discount brokerages.

From the Forums

Investor’s Edge keeping current

In this post from the reddit Personal Finance Canada thread, one user shared the latest update to the service agreement for clients, specifically with regards to multiple currencies. It’s an interesting move that seems to be setting the stage for trading in foreign currencies.

Broker vs Broker

It’s been a while, but that favourite comparison between Virtual Brokers and Questrade is back – but with a twist. This post from reddit’s Personal Finance Canada reveals that the choice between the two is no longer really about just these two, a signal that big banks have gained significant ground on the “value” front.

Into the Close

With the finish line in the world’s sights, there has been all kinds of wackiness in the markets heading into this weekend and undoubtedly heading into next week. If you can find a way to avoid the election speak, either a walk in the crisp fall weather or a Netflix binge watch or all the sports action might be in order. For traders, however, this would be a great weekend to double check your trade setups heading into what is likely going to be a wild week ahead. Have a great weekend!

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Discount Brokerage Deals & Promotions – November 1, 2016

*Updated Nov. 23* Nothin’ lasts forever, even cold November rain. It seems odd yet appropriate to reference a Guns & Roses song as we head into a new month of deals and promotions coverage of Canada’s discount brokerages. Like the band, however, deals & promotions are still rocking on even as we head into the last two months of 2016.

While it may feel a bit gloomy heading into a new month with no new offers to report, in reality there are still 23 26 active offers for DIY investors interested in opening an online trading account to take advantage of. Also, several sources from across the online brokerage space have hinted that a number of deals are in the pipeline, some of which may be launching this month. No need to sing the blues after all.

Another interesting piece of news on the discount brokerage deals front, which was reported in the weekly roundup from October 14th, reveals that there is a substantial mismatch between what online brokerages are and have been offering, and what it seems that DIY investors want.

Based on our survey from September, it is clear that DIY investors on the hunt for an incentive are much more inclined towards cash-back offers instead of commission-free trades. Other than those two types of offers, there really was little to no interest in other types of discount brokerage deals.

When compared against what is being pitched to investors, however, this might explain why so many DIY investors might be feeling ‘underwhelmed’ by the offers being pitched thus far.

The results from our most recent survey will also be published soon and they promise to have some very intriguing findings.  In the meantime, check out our latest quick survey below.

New Deals

*Update Nov. 11: Virtual Brokers has relaunched their cash-back referral offer with a slight upgrade. Their latest cash-back referral offering now has three deposit tiers starting at a minimum of $5,000 $1,000 and going up to $50,000+ and they’ve increased the maximum cash-back amount from $50 to $75. See table below for more details.

Qtrade Investor has also launched an upgrade to their transfer-fee rebate offer. The threshold to qualify for this offer has been reduced from $25,000 down to $10,000 making switching to Qtrade much more accessible. See table below for details.*

Nothing to report at the moment.

Extended Deals

Two offers from BMO InvestorLine that were scheduled to conclude at the end of October have been renewed and extended. BMO InvestorLine’s commission-free/cash-back offer has been extended into January whereas their refer-a-friend program has been extended well out into 2017, ending in June. See tables below for more information.

Expired deals

Qtrade Investor promotion in which DIY investors could purchase ETFs commission-free in October officially concluded at the end of the month. That said, it appears that Qtrade has also added 40 new commission-free ETFs into its lineup bringing the total number of commission free ETFs to 100.

Survey

Create your own user feedback survey

Discount Brokerage Deals

  1. Cash Back/Free Trade/Product Offer Promotions
  2. Referral Promotions
  3. Transfer Fee Promotions
  4. Contests & Other Offers

Cash Back/Free Trade/Product Offer Promotions

Company Brief Description Minimum Deposit Amount Commission/Cash Offer/Promotion 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 Jitneytrade and receive access to their preferred pricing package. n/a Discounted Commission Rates none For more details click here none
Open and fund a new account (TFSA, Margin or RRSP) with at least $1,000 and you may be eligible to receive 5 commission-free trades. Use promo code 5FREETRADES when signing up. Be sure to read terms and conditions carefully. $1,000 5 commission-free trades 60 days 5 commission-free trade offer December 31, 2016
Open and fund a new account at Virtual Brokers with at least $5,000 and you may be eligible to receive 3 months of commission-free equity trading and a $150 USD/mo credit towards Edge Trader Pro for 3 months. Use promo code sent at sign up to qualify. Be sure to read full terms and conditions for details. $5,000 3 months commission-free equity trading + $150 USD/mo platform fee rebate. 3 months 3 months free trading / Sign up form for promo code available here none
Disnat Desjardins Online Brokerage is offering new clients 1% of assets transferred into the new account in the form of commission credits (to a maximum value of $1,000). Minimum qualifying deposit is $10,000. To qualify, individuals will have to call 1-866-873-7103 and mention promo code DisnatFlex or email: [email protected]. See details link for more info. $10,000 1% of assets transferred in the form of commission-credits (max credits: $1,000) 6 months Disnat 1% Commission Credit Promo December 31, 2016
Open and fund a new account with HSBC InvestDirect with at least A) $25,000; B) $50,000; C) $100,000; D) $250,000; E) $500,000 or F) $1,000,000+ and you may be eligible to receive a cash bonus offer of A) $88; B) $188; C) $288; D) $388; E) $688 or F) $988. Be sure to read terms and conditions for full offer details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000- $499,999 E) $500,000 – $999,999 F) 1,000,000+ Cash back bonus A) $88 B) $188 C) $288 D) $388 E) $688 F) $988 Bonus will be credited to the qualified accounts by July 31, 2017 HSBC InvestDirect Cash Bonus Promo December 30, 2016
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,00 or D) $250,000+ and you may be eligible to receive A) 75; B) 150; C) 200 or D) 250 commission-free trades. Use promo code F16FT when signing up. Be sure to read terms and conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000+ Commission-free trades 90 days 250 free trade offer November 30, 2016
Scotia iTrade Open and fund a new account with Scotia iTRADE with at least A) $25,000; B) $50,000; C) $100,00 or D) $250,000; E) $500,000 or F) $1,000,000+ and you may be eligible to receive 50 commission free trades plus A) 5,000; B) 7,500; C) 20,000; D) 35,000; E) 50,000 or F) 100,000 SCENE points. Use promo code F16SC when signing up to qualify. Be sure to read terms & conditions for full details. A) $25,000 – $49,999 B) $50,000 – $99,999 C) $100,000 – $249,999 D) $250,000- $499,999 E) $500,000 – $999,999 F) 1,000,000+ A) Commission-free trades + B) SCENE reward points 90 days (for trades) SCENE points will be awarded by June 30, 2017. Free trade + SCENE points offer November 30, 2016
BMO InvestorLine Open a new qualifying account with BMO InvestorLine, and fund it with at least $100,000 and you may be eligible to receive $200 cash back as well as 20 commission-free equity trades. Use promo code PROMO200 when signing up to be eligible. Be sure to read the terms and conditions for more details on the offer. $100,000 $200 cash back + 20 commission-free equity trades Cash back will be deposited the week of August 7, 2017. Fall 2016 Promotion Phase 2 January 3, 2017

Expired Offers
Last Updated: Nov. 1, 2016 13:30 PT

Referral Promotions

Company Brief Description Minimum Deposit Amount Incentive Structure Time Limit to Use Commission/Cash Offer Deposit Details Link Deadline
Refer a friend to Questrade and when they open an account you receive $25 cash back and they receive either A) $25; B) $50; C) $75; D) $100; or E) $250 depending on the amount deposited amount. Enter code: 476104302388759 during account sign up to qualify. Be sure to read the terms and conditions for eligibility and additional bonus payment structure and minimum balance requirements. A) $1,000 – $9,999 B) $10,000 – $24,999 C) $25,000 – $49,999 D) $50,000 -$99,999 E) $100,000+ $25 cash back (for referrer per referral; $50 bonus cash back for every 3rd referral) For referred individuals: A) $25 cash back B) $50 cash back C) $75 cash back D) $100 cash back E) $250 cash back Cash deposited into Questrade billing account within 7 days after funding period ends (90 days) Refer a friend terms and conditions Code Number: 476104302388759 none
Scotia iTrade If you refer a friend/family member who is not already a Scotia iTrade account holder to them, both you and your friend get a bonus of either cash or free trades. You have to use the referral form to pass along your info as well as your friend/family members’ contact info in order to qualify. There are lots of details/conditions to this deal so be sure to read the details link. A) $10,000 B) $50,000+ A) You(referrer): $50 or 10 free trades; Your “Friend”: $50 or 10 free trades (max total value:$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 tbd
If you (an existing Virtual Brokers client) refer a friend or family member to open a new account with at least $1,000 you may be eligible to receive $25 cash per referral. For 3 or more referrals Virtual Brokers will add a $50 bonus. Referred individuals depositing either A) $1,000 – $24,999; B) $25,000 – $49,999 or C) $50,000+ may be eligible to receive A) $25; B) $50 or C) $75 cash back. Be sure to read the full terms and conditions carefully for full details. A) $1,000 – $24,999 B) $25,000 – $49,999 C) $50,000+ Referrer: $25 per referral; $50 bonus for each 3 or more referrals. Referee: A) $25 B) $50 C) $75 Cash to be deposited to VB account by March 31, 2017. Cash Referral Program January 31, 2017
BMO InvestorLine If you (an existing BMO InvestorLine client) refer a new client to BMO InvestorLine and they open an account with at least $50,000 the referrer and the referee may both be eligible to receive $50 cash. To qualify the referee must use the email of the referrer that is linked to their BMO InvestorLine account. See terms and conditions for full details. $50,000 You(referrer): $50; Your Friend(referee): $50 Payout occurs 45 days after minimum 90 day holding period(subject to conditions). BMO InvestorLine Refer-a-Friend June 30, 2017

Expired Offers
Open a new account (TFSA, Margin or RRSP) and receive $50 commission credit . Use promo code: kdkfnbbc $1,000 $50 commission credit 30 days none none
Last Updated: Nov. 23, 2016 08:30 PT

Transfer Fee Promotions

Company Brief Description Maximum Transfer Fee Coverage Amount Minimum Deposit Amount for Transfer Fee Eligibility Details Link Deadline
Transfer $10,000 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 $10,000 Transfer Fee Rebate December 31, 2016
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 Virtual Brokers and they may cover up to $150 in transfer fees. $150 $25,000 Transfer Fee promo September 30, 2016
Scotia iTrade Transfer $25,000 or more to Scotia iTRADE when opening a new account and they will cover up to $150 in transfer fees. $150 $25,000 Eligible with both offers: Free trade + SCENE points offer and 250 free trade offer November 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 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 September 30, 2016

Expired Offers
Last Updated: Nov. 16, 2016 12:30 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
Disnat Desjardins Online Brokerage, in conjunction with MoneyTalks, is offering 3 months of the “Inside Edge” investor information service to Desjardins Online Brokerage clients. Use promo code DESJ2016 during checkout to qualify. Be sure to read full terms and conditions for more information. n/a MoneyTalks Inside Edge Discount none
Disnat 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
Scotia iTrade 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
Open a new account with Virtual Brokers with a deposit of at least $1,000 (for the Classic Commission Account) or $5,000 (for the Commission Free Trading Account) and you may be eligible to receive a one-year subscription to access 5i Research. Use promo code 5iVB2016 when signing up. Be sure to read terms and conditions for full details. $1,000 (Classic Commission Account); $5,000 (Commission Free Trading Account) 5i Research Offer March 31, 2017

Expired Offers
Last Updated: Nov. 1, 13:30 PT
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Discount Brokerage Weekly Roundup – October 28th, 2016

Heading into the unofficial ‘Halloweekend’, just one small piece of news from the US was enough to spook the markets. Investors were left trying to figure out if the latest news on the US presidential race was more trick or treat. Of course, not everything coming out of the US this past week was doom and gloom, especially for a pair of online brokerages.

In this week’s roundup, we take a look at a major shift in the US online brokerage landscape that could offer some clues as to what might be in the cards for Canadian discount brokerages in the not-too-distant future. From there, we’ll take a look at one major Canadian online brokerage that just rolled out a feature that is sure to make some of their closest competitors have to step up their game. As usual, we’ll cap off the roundup with soundbites from Twitter and the investor forums.

Kind of a Big Deal

How does $4 billion sound? If you’re US online brokerage Scottrade, apparently it sounds pretty good. This past week, US-based TD Ameritrade pulled off a major purchase of another online brokerage, Scottrade, and provided an interesting window into the world and marketplace of online trading, perhaps offering some idea of the state of the industry as a whole and where things are headed.

As many value investors are aware of, it’s only when a buyer makes an offer that the ‘real’ value of an asset (in this case, an online brokerage) is known. So, with TD Ameritrade putting up an offer for 3 million accounts, it now offers some insight into what those accounts are actually worth. Like any big investment, however, it pays to look at the details.

In the case of TD Ameritrade and Scottrade, there are actually two parts to the transaction, one for the online brokerage segment ($2.7b) and one for the bank segment ($1.3b). The breakdown of what TD Ameritrade is paying is spelled out in their investor presentation but the takeaway (or at least one of them) is that TD Ameritrade is buying the 3 million or so accounts funded accounts at Scottrade along with the $170B in assets that come with them.

Source: TD Ameritrade Investor Presentation

According to the details of the transaction, some quick math puts the price per account at about $870 and the assets per account at about $57K. With various possible additional opportunities to grow “share of wallet” over time, the price per account falls even further. That said, the figure is in the ball park range of what it costs to acquire a new client, at least in the US. All told, TD Ameritrade is paying 3x revenue for the deal and is looking for the deal to be accretive (12% to 20%) within 3 years, assuming all goes to plan.

For a deal of this magnitude, the numbers have to make sense. That said, there is also the human factor that potentially drove this deal forward. According to some sources, the timing seemed right for Scottrade founder Rodger Riney to cash out. Whether it was age, health or a desire to exit on a high note, the human element likely played a factor.

Within the Canadian context, there has often been chatter and speculation about whether the Canadian marketplace can sustain the number of online brokerage providers that it does. Could a similar deal happen here? The odds would suggest probably not.

Currently, there are only a couple of choices for non-bank owned brokerages for players to purchase – JitneyTrade, Questrade or Virtual Brokers. The other online brokerages have some kind of larger financial institution, such as a bank or credit union as a parent – or in the case of Interactive Brokers Canada, a larger US online brokerage as the parent. So, for a larger player to take out one of the independent brokerages would really be an aggressive move. None of the available ‘independent’ brokerages are particularly large in terms of accounts. On the other hand, for one of the bigger financial firms to try and exit the DIY investing segment might mean ceding market share.

As the Scottrade deal shows, the banking side of the business is always looking for ways to deepen their ‘share of wallet’ not reduce it. Neither buying nor folding seem palatable for the bigger players. Nonetheless, if the asking price is right or there is a catalyst to drive an exit, then business people can usually find a way to make a deal.

For DIY investors, the elimination of some competition may not be a bad thing. In a recent investor conference call published on SeekingAlpha.com, President and founder of Interactive Brokers Thomas Peterffy had the following take on Scottrade ahead of the announced TD Ameritrade acquisition:

“…we are excited about the Scottrade news. Just like the LPL news, the fewer brokers, the easier the comparison and the starker the differences between us and them, and the easier it is to compete for the customers. Also, whenever a broker is taken over, we usually get a bunch of accounts from people who were considering coming over to us, but were reluctant to change. Now that they will have to change anyway, they think they may as well come to us and move on to a better and less expensive platform.”

While trying to put a positive spin on losing 2000 or so accounts to a competitor (Interactive Brokers previously had an agreement to service some of Scottrade’s clients’ trade executions) is basically damage control, there is a valid point that the differentiation between brands will be brought into focus and consumers could stand to benefit by seeing some very compelling offers being made.

Whatever the case, there is a lot of change on the horizon for the Canadian financial services sector. This past week National Bank (parent to National Bank Direct Brokerage) also announced that it is going to be shifting its focus to ‘going digital’, joining its peers in spending massive amounts on meeting the banking and investing needs of consumers in an increasingly online world. Thus, one of the biggest drivers of who is left standing in the online brokerage space here in Canada might very well come down to who can afford to keep innovating. With that in mind, cashing out might not seem so bad after all.

Conditions are Improving

TD Direct Investing seemed to be in the spotlight again this past week with a news release announcing the official rollout of conditional orders to their flagship platform WebBroker (even though clients started to see this feature show up last week).

Ever the savvy marketers, they also announced that they are the first ‘bank-owned’ brokerage to deploy a platform with conditional order types. While that is technically accurate, conditional orders (aka bracket orders) are already available at a number of other Canadian online brokerages, such as Questrade, Interactive Brokers and Desjardins Online Brokerage and on the thinkorswim (aka US trading platform).

Nevertheless, this latest edition to the TD Direct Investing trading platform feature set is a fairly powerful one.

Conditional orders enable traders and investors to set criteria for entering or exiting a trade and then have a trade execute if that criteria is met. Criteria could include when a price goes above or below two different levels or when a condition – such as the value of an index, goes above or below a target. Some traders refer to this as the “set it and forget it” approach, however, with all things online trading, it’s never wise to fully trust that the technology will work as promised.

While there are numerous types of bracket/conditional order types out there, TD Direct Investing has enabled the following order types:

  • One Triggers Another (OTA)
  • One Cancels Other (OCO) and
  • 1st Triggers OCO (FTO)

An example of when this might be useful is if an investor owned a stock at $15 and put in a condition to sell the stock if it hit $20 or if it dropped below $10. If one of those conditions were met, the corresponding order (in this case a sell order) would execute. This enables investors to create rules for how a particular investment or trade should be handled that go beyond the traditional limit order.

Interestingly, at the time of publication, the documentation for conditional orders on WebBroker platform was not available on the TD Direct Investing website. Fortunately, there is a webinar available that walks users through each of the order types and how they work on WebBroker.

Clever marketing aside, TD Direct Investing has continued to distance itself from its bank-owned brokerage competitors in terms of platform offering and now trading experience. And, while they may not be the first or only online brokerage to offer conditional orders, the reality is that as one of the largest and most popular online brokerages in Canada, TDDI has just given DIY investors one less reason to consider looking at competitors who also offer these order types.

Discount Brokerage Tweets of the Week

It was a fairly tame week on Twitter this week. Interestingly, technology was on the minds of investors chiming in on Twitter. Mentioned in the DIY investing conversation was BMO InvestorLine, Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

From the Forums

Dash for Cash

One of the platforms TD Direct Investing markets to advanced traders is their advanced dashboard. In this post on RedFlagDeals.com’s investing thread, a user looking for feedback on the experience with advanced dashboard received a few interesting suggestions for data platforms.

Low Cost Education

The stock market can be an expensive place to learn how to trade. Still the fear of not knowing how things work is something that prevents many people from even trying. In this post, also from RedFlagDeals.com, one beginner investor is contemplating using either Questrade or Virtual Brokers for the commission-free ETFs as a way to get their feet wet with investing. Worth a read to see what other forum members had to say.

Into the Close

Just when things seemed like they were on track for a smooth finish to the US Presidential election there was a monkey wrench thrown into the works. It would be a great time to get some rest this weekend because there’s every indication that next week is going to get a little wild. In the meanwhile, with hockey, baseball, basketball and football, not to mention Halloween all on deck, there are plenty of reasons to take a break. Have a spooktacular weekend!!

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Discount Brokerage Weekly Roundup – October 21st, 2016

Well it has certainly been a week to remember. Not so much for what happened in the markets but rather for what happened around them and what this weeks events may do to markets everywhere. While the presidential debate or the loss of championship run were big news, perhaps the biggest news is the major outage of some of the world’s biggest websites because of exploits in technology. Heading into the weekend, it is a stark reminder that with more of the world moving to online, technology is not without its risks.

This past week, technology is the theme for the lead story at one Canadian bank-owned online brokerage. Specifically, how one online brokerage is using video technology to try and pull ahead of its competitors in the digital landscape. From there we’ll take a quick look at the latest figures from US-based online brokerages as many of them reported their earnings this past week and also provided a snapshot of what’s happening behind the scenes at some of the world’s biggest online brokerages. Finally, we’ll check out what DIY investors were talking about in the tweets of the week and in the investor forums.

Scotia iTRADE Keeping it Reel

While it’s been somewhat quiet at several of Canada’s biggest bank-owned brokerages, Scotia iTRADE has definitely been busy working to capture the attention of DIY investors online. Specifically, over the last few weeks, we’ve noted a definite uptick in the amount and diversity of video content coming out of iTRADE’s various social media channels. During this time, they’ve launched a video-based advertising campaign, several new ‘explainer’ videos on investing (in French) on YouTube and recently held a livestream “fireside chat” with personal finance expert Evelyn Jacks.

There’s definitely lots to unpack but let’s start with video advertising. For any regular consumer scrolling through content on just about any social media channel, videos are everywhere. Knowing that video posts are almost certainly going to be more engaging than regular ol’ images, Scotia iTRADE’s latest batch of video ads have started to show up in social media feeds, such as Twitter, and people are noticing. Interestingly, there aren’t that many bank-owned online brokerages with their own Twitter handle and with the exception of Questrade, the non-bank-owned brokerages aren’t nearly as active on social media feeds as they need to be to gain a significant presence. So, for Scotia iTRADE, the fact that they’ve doubled down on Twitter by not only having an account of their own but also buying ads means they’re getting an interesting share of the spotlight with millennial users.

Another place that Scotia iTRADE appears to be moving into is the French speaking market. Case in point is the recent publishing of their market education videos on YouTube en Français. For many of the big Canadian bank-owned brokerages, building an audience within the Quebec DIY investor marketplace has been a challenge. Data from our educational event tracking showed that TD Direct Investing, for example, had a difficult time pulling in people to their in-person seminar topics in Quebec much more so than in other parts of the country. Now it appears that Scotia iTRADE is widening its net to try and provide investor education oriented content to French speaking audience. Again, this is an area in which other brokerages big and small just simply aren’t doing enough of. Add to the fact that this is being done online, and other brokerages are going have their work cut out for them to produce and deploy that kind of information. Interestingly, it is difficult to imagine either Desjardins Online Brokerage or National Bank Direct Brokerage, both of whom are fiercely competitive brands within the Quebec market, making room for Scotia iTRADE to come in and capture mindshare.

Finally, this past week, Scotia iTRADE held a ‘fireside chat’ with personal finance expert Eveyln Jacks on the topic of risk management. This interactive webinar enabled Scotia iTRADE to gather information from attendees (i.e. gather marketing leads) but also demonstrate that they are taking their seminar/webinar formats to the next level. While there are still kinks to be ironed out with the format, unlike several of their peers, Scotia iTRADE is definitely pushing forward faster and more broadly online. And, in a world where DIY investors have so many choices to consider, Scotia iTRADE is making it much harder for them to be overlooked.

Is This Thing On?

A lot of traders know the saying: the trend is your friend (until it ends). For online brokerage Interactive Brokers, there are a couple of trends that are emerging surrounding their online brokerage business, some of which are more friendly than others.

On the positive side, the latest results from Interactive Brokers shows that they continue to crush it with regards to account growth, specifically with attracting more new customers to the platform than having customers leave. It’s actually rather uncanny how long their account growth streak has continued.

On the negative side, when the founder and CEO of the company wonders out loud if the platform is broken because there was no trading activity in the market, there’s definitely something strange in the trading neighbourhood. The impact of a lapse in volatility in the marketplace had a significant negative outcome for market makers (which again continued to lose money) which just goes to show that even the pros have had a tough time trying to time and trade the market when their strategy doesn’t line up with market conditions.

For many brokerages, it will be just a few more weeks until the election is finally over and markets can once again reprice assets without having to hedge against the possibility that Trump may actually win. Until then, however, brokerages and their clients are clearly watching and waiting (except for the brave/impatient few who are already betting into the election).

Qtrade Investor Quietly Drops Fees

Late last week Qtrade Investor sent an announcement to clients stating that ECN charges, the annoying fees that chew into trading profits because of market orders, were being dropped…sort of.

Technically Qtrade Investor reserves the right to charge ECN fees however they have described the situation of when those fees would be incurred as when an individual’s trading pattern makes “repeated, high volume trades on the active side of the market.” In other words, for most low to moderately active investors, this is definitely welcomed news from Qtrade.

While the technical definitions/limits were not spelled out (e.g. how many trades within a specific time frame is too many), Qtrade Investor did go on to mention that in the event of “excessive” trading that generates ECN fees, a Qtrade client service representative will attempt to contact the client.

Undoubtedly, the recent introduction of youth-focused pricing, some commission-free ETF trading and now removal of ECN fees will bode well for Qtrade in Rob Carrick’s online brokerage rankings. With the landscape for DIY investing clients being so competitive, however, there’s a fairly decent chance this news gets broadcast much more loudly before and after those rankings.

Discount Brokerage Tweets of the Week

It was a relatively tame week across Twitter for Canadian discount brokerages. Nonetheless there are some interesting client service moments that highlight why Twitter is a must-have for DIY investing clients looking to get traction on customer service issues with certain online brokerages. Mentioned this week were BMO InvestorLine, Questrade, Scotia iTrade & TD Direct Investing.

From the Forums

How Smart is Your Folio?

Seems like there aren’t many places investors can go online these days without bumping into a BMO Smartfolio advertisement.  In this post from RedFlagDeals.com’s investing thread, one curious investor took the marketing to the market to find out what others had to say about BMO’s robo-investor service.

Snug as a Bug

This was an interesting post from a Questrade user also posted on RedFlagDeals.com that highlights the importance of actually keeping tabs on a portfolio. Yes, even technology can fail, however as the author of the post suggests, staying on top of the details helped prevent a potentially bad trade.

Into the Close

TGIF. It’s been a bumpy ride to land the work week. If you still aren’t sick of the debate coverage yet and you want a great chuckle courtesy of the fine folks on Twitter, enjoy the hashtag #trumpbookreport.

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Discount Brokerage Weekly Roundup – October 14, 2016

Like the Toronto Blue Jays’ bats, fall colours are also in full swing.  As we head into the halfway point in October this edition of the roundup has an equally interesting feature – something that all Canadian online brokerages are going to want to tune into.

In this week’s roundup, we lead off with a spotlight piece on deals and promotions – specifically we present the findings from our reader survey from September that shows that DIY investors and Canadian online brokerages are out of sync and a suggestion on how to make it better. As with our usual menu, we’ll also be covering reactions from DIY investors this week on Twitter and what investors are chatting about on investor forums. For good measure, we’ve also included some of the interesting upcoming investor education events DIY investors might want to check out as the weather gets colder.

Let’s make a deal

Even though RRSP deadline season is months away, it’s already clear that Canadian discount brokerages are collectively ramping up efforts to attract new clientele. And while it’s one thing to work hard, it’s certainly also important to work smart.

As part of our coverage of the Canadian online brokerage landscape, one of the areas we analyze are the deals and promotions offered by discount brokerages to incentivize DIY investors to open a new online trading account.

Last month, we ran an informal one-question poll of visitors to SparxTrading.com that asked: “what is your preferred deal or promo?” and found some fascinating results about what Canadian DIY investors actually want and what they’re being offered.

Before jumping into the results of our deals and promotions survey from last month, it is useful to take a quick look at the deals & promotions that are currently in play.

As of the first week in October, we’ve uncovered 27 live advertised promotions with transfer offers representing and cash back/commission-free trades tied for the largest portion (31% or 8 offers), followed by (contest/other (7 offers) with referrals rounding out the group (three offers). Currently, Desjardins Online Brokerage, Questrade and Scotia iTRADE are tied with the most number of offers (four apiece) while Interactive Brokers Canada is the only brokerage not currently advertising a promotional offer of some sort (note their referral program is not counted because it only offers the individual making the referral a bonus, not the new account holder). Transfer fee coverage offers may be underreported in this count because certain firms may offer it but have not advertised this on their website.

For a bit of background on the poll itself, respondents could choose between the following options:

  • Cash back deals (for just the individual)
  • Commission-free trades (for just the individual)
  • Referral bonuses (me & a friend)
  • Transfer fee coverage
  • Technology items
  • Contest entry/prizes

These choices were selected as they represented the most popular or prevalent promotional offers typically put forward by Canadian discount brokerages. A total of 59 respondents from across Canada participated.

Results

Our poll showed that the overwhelming majority of DIY investors (68%) surveyed stated that they were interested in cash back promotions while commission-free trades came in a distant second at 27%. Transfer fee deals (3%) and technology items (2%) rounded out which offers DIY investors preferred.

What is fascinating to see is just how far off many online brokerage offers are from what investors are actually interested in. Of the 27 deals currently offered by Canadian discount brokerages, only two (which translates into 7%) offer cash back promotions: HSBC InvestDirect and BMO InvestorLine. That is certainly a major disconnect in the marketplace, one that, upon further reflection, just doesn’t quite make sense.

Considering that at least 9 brokerages are prepared to cover transfer fees from accounts from other institutions, it stands to reason that they would offer up as much (perhaps more) for a new client that didn’t put them through the hassle of having to transfer an account. A simple look at some forum comments or on Twitter would show that there are all kinds of issues that can arise that delay a transfer of accounts.

Another interesting finding was that referral or affiliate programs aren’t popular as a first choice. Ironically, all of the referral offers in the market right now actually offer cash back for the person referring and the individual signing up for the account, so it really is a win-win option.

One interpretation of this data suggests that individuals who are looking for a cash back offer don’t necessarily want to go through the effort of finding a referral source. Fortunately for Questrade, for example, they not only have the most competitive offer for referral based deposits, but they also have the easiest system in place for these referrals to be generated. Conversely, Scotia iTRADE and BMO InvestorLine require a bit more effort for each referral.

Finally, it was made abundantly clear that DIY investors were just not that into contests among those who are looking to open an online trading account. It is probably understandable that getting a “chance” at something is akin to playing the lottery except in this case, the payout is far lower and the price of participation astronomically higher. Nonetheless, looking back over the past year, there are numerous examples of Canadian discount brokerages offering up contest entries as a way in which to encourage users to deposit more.

For Canadian discount brokerages, the lesson here seems to be that the market is clearly communicating one thing while most providers are doing another. Like all businesses, online brokerages need to make sensible decisions around adding to their client base, however the results of our survey certainly suggest that a very sensible decision to get attention of new clients is to offer cash back promotions. For those that do offer cash back promotions, even in the affiliate or referral program, that is something that more DIY investors should probably be better aware of.

And, just to show that we’re also into the giving spirit, any Canadian discount brokerage that wants to advertise its cash back offer to visitors of SparxTrading.com may receive up to $250 cash back* for doing so (*conditions apply). Contact us for full terms and conditions.

Discount Brokerage Tweets of the Week

Whether you blame it on the rain, or some other stranger things, this past week there was plenty of blame being tossed around on Twitter, mainly due to outages on trading platforms. It’s a great example that shows, whatever the size of the brokerage, online trading can get interrupted. Mentioned this week were BMO InvestorLine, Questrade, Scotia iTRADE, TD Direct Investing and Virtual Brokers.

Event Horizon

Fall’s in full swing, and it’s a colourful week ahead for discount brokerage-sponsored investor education events. Here are some upcoming sessions that may be of interest to those curious about technical analysis and trading strategies. A pair of special events for options enthusiasts rounds out this week’s selection.

October 15

Options Education Day Vancouver – Autumn 2016

October 16

Options Education Day Calgary – Autumn 2016

October 18

Scotia iTRADE – Understanding Price Action To Make More Informed Trading Decisions

From the Forums

The price of advice

Everyday there are Canadians who are faced with decisions about where and how they should invest their money. With a crowded landscape, it is interesting to see how first time investors have to navigate the choices given to them by financial services firms. In this post from reddit’s Personal Finance Canada thread, there are lots of interesting suggestions for a novice investor looking for a little help in figuring out how/where to park some capital.

Into the Close

Even though it was a short week, there was certainly no shortage of excitement. While folks in Vancouver and Calgary will be able to learn about options, some other options include hunkering down for a serious weekend of sports watching. For those in Vancouver and other parts of BC – stay safe and dry (as much as you can anyway)! Have a great weekend!

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Discount Brokerage Weekly Roundup – October 7, 2016

It’s been a tough week for some birds. Turkeys have seen their number come up, the blue bird of Twitter has seen its number go down, and for Orioles, orange was the new eliminated. Of course, there’s still one cuckoo left set to take the stage on Sunday. Thankfully, the Canadian online brokerage space hasn’t gone to the birds – in fact, far from it. There have been lots of (good) surprises to chirp about.

In this week’s roundup we take a look at how one online brokerage is making 1% make waves with DIY investors and other discount brokerages. Next, we speed through several important developments highlighting trading platforms, security and options training. From there we’ll showcase the latest tweets from DIY investors about Canadian discount brokerages and finally round out with comments from investor forums.

Redefining the Art of the Deal

After watching the Canadian online brokerage space evolve over the past several years, every so often someone makes a bold move that forces the industry as a whole to respond.

This past week, Desjardins Online Brokerage appeared to be that catalyst by launching a new promotional offer that is bound to create waves across the Canadian discount brokerage industry and may ultimately force a re-thinking of how deals are offered at many brokerages.

The latest promotion from Desjardins Online Brokerage offers 1% back (in the form of commission credits) of qualifying deposits into a new account. Qualifying deposits range from $10,000 to $100,000+ which roughly translates into between 10 and 100 commission-free trades at $9.95 per trade.

While they are not the first to offer a 1% rebate (RBC Direct Investing offered a very popular 1% cash back bonus back in 2008), Desjardins Online Brokerage is currently the only brokerage doing so in a very competitive promotional offer field. Unlike the situation just over 8 years ago, competition is much fiercer, commissions are generally lower and there are new players, such as robo-advisors, that are attracting a lot of attention. Clearly Desjardins has opted to “go big” instead of “go home”.

What is likely to make this promotion stand out is the fact that rewards are proportional to the assets deposited. This is in stark contrast to what most discount brokerages typically do which is to reduce the amount of the reward (on a percentage basis) as the amount of money invested increases. Thus, Desjardins’ has put forward a compelling offer for many investors who feel like they get a worse offer the more money they bring with them.

Their choice of an athletic-themed image for this offer is appropriate in more way than one. In the case of Desjardins Online Brokerage, despite their popularity in Quebec, in other regions there is an uphill climb for DIY investors to find out about them.

Previously, their wider marketing efforts, partnership with Stockscores, as well as wins with the JD Power & Associates Investors Satisfaction award had helped make in-roads, especially in Western Canada. Without those visible marketing efforts in play, this promotion may be a signal that they’re preparing to take a run at their more visible counterparts. Based on the year-end expiry dates of the offer, it certainly seems like this may shape up to be a marathon rather than a sprint.

Lightning Roundup

In the early days of October there is no shortage of news to report across the Canadian discount brokerage space. Here are some of the highlights:

WebBroker Doesn’t Look Back

For many users of TD Direct Investing, it seems like this week spelt the end of being able to use the previous interface/layout of their main trading platform WebBroker. In an announcement shared with clients, TD Direct Investing stated that they were officially pulling the plug on the option to use the old WebBroker interface and steering clients into the new layout.

Like any major website change, there were mixed reactions to the new layout and orientation.

And, while the new trading platform interface has been around for several months, this latest announcement from TD Direct Investing also signaled new feature capabilities on the platform, most notable among them being conditional orders. Unlike many of their bank-owned peers, TDDI is moving faster than they have previously to start rolling out new technology, new features and respond to feedback from users. Those who may not like change had better start getting used to more of it, as it seems like change is soon to be the new normal.

Questrade says: ‘If You Like It, Then You Better Put a PIN on It”

Ok so they didn’t actually but arguably Beyoncé’s famous line seems to capture the spirit of Questrade’s latest security feature. Account protection at Questrade account got a little stronger and perhaps more convenient with a new PIN code feature that can be used when interacting with client service agents.

Of course what was much more revealing than the rollout of the PIN system was the passionate response about security at Questrade, notably on two-factor authentication, found in the comments below the post on their company blog.

While catching a bit of heat for rolling out a new security feature is somewhat interesting, it is clear that Questrade has a loyal and active enough client base that is engaging with them on their company blog (as well as across other social media sites). It is a mixed blessing but ultimately having passionate fans means Questrade has to deliver because their users will let the world know one way or another how irreplaceable Questrade is or isn’t.

Options Education Day Vancouver

For those who are interested in learning about all things options, meeting some new contacts and getting a couple of good meals, the Options Education Day Vancouver event will be taking place on October 15th. Sponsors of the event include Desjardins Online Brokerage, TD Direct Investing and Virtual Brokers. More information on the event is available here.

Discount Brokerage Tweets of the Week

This week the Blue Jays were not nearly as busy at the blue bird on Twitter. DIY investors were letting a handful of Canadian discount brokerages know just how they were feeling this week. Mentioned were Questrade, RBC Direct Investing, Scotia iTRADE, TD Direct Investing & Virtual Brokers.

From the Forums

Who Cares

It’s not actually a question so much as it is a statement. In the case of this post on reddit’s Personal Finance Canada section, it indicates that Questrade has, through its constant effort of interacting with clients and prospective clients online, earned a much more vocal and passionate following. The post being referenced is about 2 factor authentication vs the PIN system (mentioned above) that rolled out this week. More telling is not so much the topic of security but that Questrade has clearly built a passionate user base.

Into the Close

That’s a wrap on what has been a crazy week across the markets. Of course it won’t be anywhere near as crazy as the US presidential debate (more specifically one of those candidates) on Sunday. Canadian markets are closed on Monday but lookout for some very turbulent trading next week. In the meantime, have a safe, happy and thoroughly enjoyable Thanksgiving!!