Tag: Weekly Roundup

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – June 27, 2014

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

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

Deals Going on a Staycation

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

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

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

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

All the Saving Ladies

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

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

All the Leaves are Green

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

From the Forums

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

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

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – June 20, 2014

It seems fitting to launch this week’s discount brokerage just ahead of the longest ‘day’ of the year. As the markets have proven yet again, the longs have it. Like the balance between day and night, however, there will inevitably be a shift. When that shift will happen, however, is anybody’s guess. For the moment, discount brokerages (north and south) are basking in sunshine, a thawing in investor attitudes towards participating in the market and hopefully not looking down.

This pre-summer solstice session of the weekly roundup features an interesting development and response to the high frequency trading stories unfolding in the US, a(nother) promotion launched by one of Canada’s independent online brokerages, news of expansion by an infrequent news maker as well as some interesting perspectives from Canadian investors on brokerages and DIY investing.

When the Market Gives You Lemons

Summertime and lemonade tend to go hand in hand. Of course, if you’re an online brokerage in the US, one of the biggest lemons that has been dealt to you has been the highly disruptive book ‘Flash Boys’ by Michael Lewis. The resulting debate on the benefits or harm that high frequency trading has (allegedly) caused for marketplace participants has quite literally put the squeeze on the stock prices of many US online brokerages.

This past week, however, as the US senate committee held proceedings investigating the practice of HFT, many online brokerages saw their stock prices rally – a sign that perhaps shorts (which had been on the rise for certain online brokerages) were starting to cover their positions.

An interesting twist in the HFT debate came via the form of an ad being run by Interactive Brokers. Specifically, Interactive Brokers’ CEO Thomas Peterffy took to the airwaves to specifically to tell clients and prospective clients that his firm ‘doesn’t trade against’ client orders. Check out the video below to see his take on why Interactive Brokers is saying “we’re one of the good guys”.

Welcome to Summer, eh?

While other brokerages are in somewhat of a holding pattern with regards to offering deals and promotions, Questrade recently launched yet another promotion aimed at acquiring new clients.

This past week, Questrade launched their ’25 free trade’ offer to coincide with the upcoming celebration Canada Day. The spin on this promotion: clients have until the end of 2014 to use the commission free trades (about 6 months). The deal is being offered to individuals making a deposit of $25,000 into a new Questrade account.

Qtrade Widens Network

In a slightly different approach to acquiring new clients, Qtrade Securities Inc decided to form a strategic partnership. Earlier this week they announced that they are working together with The Great-West Life Assurance Company and its subsidiary London Life in order to offer “to offer clients access to professional advice on securities including stocks and bonds through licensed investment advisors” as well as access to online brokerage services. Check out this article for additional details.

From the Forums

Comparing Brokerages

An uncommon comparison is the feature of this thread from the personal finance Canada section on Reddit. In it, a user is contemplating Questrade and CIBC Investor’s Edge. Hear what fellow readers had to say about the pros and cons of staying with CIBC or opening a Questrade account.

Don’t Hate the Game

There are definitely opposing opinions when it comes to investing. For those who decide to undertake the ‘DIY’ route, however, there can be moments where the voices of investing nay-sayers may be a cause for pause. In this thread, a younger investor shares their story of getting started in the market and asks for the community’s thoughts on why others look down on investing.

That does it for this week’s roundup. Even though tomorrow is officially the longest day of the year, many soccer fans have already seen that day come and go (sorry Spain and England!). However you decide to enjoy it, make it a safe and fun one! For our Quebec readers, bonne fête!

 

 

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – June 13, 2014

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

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

If You Like It, Then Put a Bracket On It

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

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

Ghost in the Machine

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

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

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

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

Taking a Breather

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

From the Forums

Penny Pinching

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

Keep Tabs

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

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

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – June 6, 2014

Another day, another new high – wait is it déjà vu all over again? Impressively, the major stock markets feel like a Jeopardy champ on a bit of a hot streak. As this past week showed, however, even winning streaks can end when you bet big and bet wrong.

Self-directed investors as well as discount brokerages north and south of the border continue to benefit from stronger markets. In this week’s roundup we look at an interesting event that may be a sign of the shift in investor focus (at least for the near term), some discount brokers that appear to be raising the stakes going into the summer with deals and additional advertising, an interesting blip on a major US discount brokerage’s performance numbers and finally we roll through the Canadian investor forums to bring you some noteworthy conversations.

Digging for Better Times

In a sign of an evolving marketplace for Canadian investors, the Canadian Investor Conference put on by Cambridge House International took place earlier in the week. This was the first ‘diversified’ sector conference which featured companies and speakers from several major sectors including mining & exploration, technology and others.

This conference replaced the World Resource Investment Conference (WRIC) which typically would have taken place in June. The recent challenges faced by the junior mining and exploration sector have been no secret and thus an entire conference dedicated to a sector of companies that appear to be reigning in spending may have been a stretch.   As its replacement, however, the Canadian Investor Conference offered something familiar but also some very interesting new features.

Among the highlights of the conference were the lineup of interesting personalities from the technology & investment space, a showcase of non-public companies working on innovative tech/green tech initiatives and scheduled meetings with company reps. The Toronto version of the Canadian Investor Conference runs from September 25th to 26th.

New month, new deals

Although June is barely out of the gates, it didn’t take too long for the deals action to start heating up again. Earlier this week, Questrade re-launched their 3 months of unlimited trading offer, perhaps as other brokerages gear down for the summer. Individuals who deposit $50,000 or more are eligible for 3 months of unlimited trading. For those who deposit between $25,000 and $49,999, they may be eligible for two months of commission-free trading and for those who deposit $1,000 to $24,999, there is one month of commission-free trading up for grabs.

June is a big month for online brokerage deals with about half of the current offers set to expire by month’s end. Given that many Canadian brokerages are in the last half of their fiscal year, there’s likely to be a stronger push to meet targets for their year-end (October 31st) which could include quite a bit of promotional activity through the summer and into the fall.

Staying Top of Mind

Given the recent run up in the markets, it’s likely (based on historical behaviours) that many retail investors might be considering stepping back into the markets (if they haven’t already done so). For that reason, online brokerages, such as National Bank Direct Brokerage, will be looking to attract the attention of investors. We spotted an interesting video ad produced for NBDB which highlights the importance of staying current and top of mind amongst the assortment of online brokerage choices.

Trading Metrics

As per the usual cycle, Interactive Brokers recently reported their trading metrics for May 2014. Although most of the numbers on a year over year basis looked better, one stat in particular dipped enough to raise an eyebrow. Interactive Brokers reported 518,000 Daily Average Revenue Trades (DARTs) for May which was 10% lower than the prior month. Given where the markets have headed, whether this was ‘sell in May and go away’ or traders just riding the trend remains to be seen. Another very interesting data point (especially for the price shoppers) is the average commission per equity trade which came in at $2.07 – far lower than almost all brokerages offer here in Canada (even with the exchange rate).

From the Forums

Canadian investors appear to be busy enjoying the good weather rather than leaned over their computer screens. In this abbreviated forums scan, we showcase an interesting conversation between investors that started by requesting historical trading data from a particular brokerage.

The ability to pull historical data is very valuable for active investors however different online brokerages have different windows of time that a user can actually go back and retrieve data from. While better practice is to record one’s trading activities on a regular basis (either on a spreadsheet or software or (gasp) with paper), doing so can be laborious. Check out the link above to see what insight investors had to offer on getting the data of trades past.

That does it for this edition of the roundup. Enjoy the heat and sunshine this weekend – and remember the tips for sticking around long enough to enjoy many more great days involve some good risk management for the heat and sunshine (aka stay cool and wear sunscreen!).

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – May 30 2014

Another week, another record high. It looks like not that many folks chose to sell in May and go away after all. In spite of most NHL hockey players and seasonal investors starting to take it easy, Canadian discount brokerages were still keeping busy keeping one another on their toes.

In this week’s roundup we look at a couple of online brokerage deals that are hoping to get the attention of self-directed investors with some popular toys. Also, another Canadian online brokerage announced a feature enhancement that will help show investors the money (or lack thereof). As a quick pulse of where the Canadian online brokerage industry may be headed, we take a quick peek at a merger of two US discount brokerages. And finally, what would a weekly roundup be without some interesting thoughts from the Canadian investment forums?

An Apple a Day

Despite ponying up around $3 billion for a headphone (and streaming music) company, Apple still remains popular with consumers – which is something banks and now discount brokerages are capitalizing on.

Although Questrade was one of the first discount brokerages to offer up an iPad minis as an incentive to open an online trading account (and did so for a long time), it now seems that National Bank Direct Brokerage has also taken to a similar strategy.

Earlier this week, National Bank Direct Brokerage rolled out a new promotion offering iPad Minis for new clients who deposit at least $20,000. Interestingly, Questrade’s iPad Mini offer which had been taken down, looks to also have resurfaced. Questrade’s iPad mini offer requires a deposit of at least $100,000 and gives qualifying clients the choice of taking the iPad mini or $250 cash. Another curious point is that the value of the iPad Mini for the National Bank Direct Brokerage offer is listed as $319 whereas with Questrade it is being valued at $250.

Keeping it Realized

As commission pricing between major bank-owned online brokerages has come down, service, platform and features are the new battlegrounds to woo clients. Following their recent announcement about additional news data, earlier this week Scotia iTrade took another step towards improving customer experience by announcing the roll out of a realized gain & loss reporting feature. The new feature apparently allows clients to view their actual trading gains and losses as far back as January 2014.

Two Heads Are Better Than One

For many years, observers of the Canadian discount brokerage marketplace have observed the increasing competition for a very limited number of investors. While the fragmentation of the Canadian marketplace hasn’t really driven too much consolidation, the recent notable examples (e.g. optionsXpress Canada being acquired by Virtual Brokers) are far and few between.

In the US, however, the marketplace is also hypercompetitive and earlier this week, two Chicago-based online brokerages OptionsHouse LLC and tradeMONSTER Group Inc announced they would be joining forces. This merger comes just over 2 years after the merger of another pair of Chicago-based US brokerages – TradeKing and Zecco. While two points a trend does not make, it is nonetheless interesting to see smaller players combine to take on the incumbent brokerage houses. Whether it’s two smaller brokerages teaming up or a case of a bigger fish acquiring a smaller one, the signs from the US discount brokerages may be sending a signal of things to come here in Canada.

From the Forums

What are Friends For?

Several Canadian discount brokerages have referral programs set up where existing clients can receive a bonus (usually cash or free trades) for having someone they refer open an account. In this post from Red Flag Deals, the community chimes in on the BMO InvestorLine refer-a-friend offer which provides up to $300 for a referral.

Some Change Won’t Do You Good

Forced currency conversions are a thorn in the side of many self-directed investors, especially given where the Loonie has been for the past few months. With that in mind, when online brokerages do conduct a foreign currency conversion, there is just that much less of a portfolio left. In this post from Canadian Money Forum, users discuss RBC Direct Investing’s foreign exchange practices with a Tax Free Savings Account (TFSA).

That takes to the end of the week and the roundup. As a quick reminder, the Cambridge House Canadian Investor Conference is coming up this weekend for those in and around the Vancouver region. Registration is free ahead of the conference. For those suffering from a bit of hockey withdrawal take heart, the best disinfectant is sunshine – so hopefully you’ll have a chance to get out and enjoy some.

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – May 23, 2014

Even though there was a shortened work week after the Victoria Day holiday, neither the Canadian discount brokerages nor those in the SparxTrading camp wasted any time bouncing back into the action.

In this week’s roundup, we’ll reveal the big news about an exciting feature we’ve been working on. We weren’t the only ones with big news though, as pair of major online brokerages took to using the major news media as a selling tool in two different ways. Next on the menu was a new promotion by another popular online brokerage – this one aimed at younger online investors. Also, a usually quiet discount brokerage signed up with an interesting platform partner. Finally, we round out the roundup with some interesting opinions from the investor forums.

Beta be Good News

Earlier this week the long awaited update to the Canadian discount brokerage profiles rolled off the assembly line. We began the redesign by listening and researching how it is that Canadian self-directed investors were hunting for information on discount brokerages. The fruits of that research told us that Canadians were looking for a platform to learn about, share experiences on and connect to discount brokerages.

The beta versions of these pages, which are now open to the viewing public, are built around these ideas with features that make the task of researching a discount brokerage much simpler. We’ll save the deep-dive on all the new bells and whistles for a dedicated blog post, but for now, we encourage readers to take the new profiles for a spin. If there are any issues or suggested improvements, we’d love to hear them.

2014 will continue to bring some added improvements to the site in terms of function and form, so we look forward to an exciting next few months.

Desjardins Online Brokerage in the Spotlight

Earlier in the week, Desjardins Online Brokerage (aka Disnat) sponsored a special piece in the Financial Post. It was an interesting overview of the online brokerage, most notably because it was done in a Q&A style that had a particular focus on new or beginner investors.

Good Times

Scotia iTrade also announced earlier this week that they will be adding to their investor information stream by enabling iTrade clients to access content from the Financial Times. Scotia iTrade clients can now access to this information feature under the ‘investing ideas’ section. Two notable authors from the Financial Times that have syndicated content available are Gillian Tett and John Authers.

You Must Be At Least This Young

BMO InvestorLine launched a very interesting promotion at the tail end of last week that didn’t make it into last week’s roundup. Not to worry (unless you are another discount brokerage) though, as we put together a detailed look at their latest offer. For those of the TL;DR generation, the new promotion is aimed at online investors between the ages of 18 to 35, and is offering 35 free trades (good for up to 90 days) as well as waiving of the minimum $5,000 deposit. In addition, making at least 2 trades within 6 months waives the minimum balance fees for non-registered and registered accounts.

A Wize Move?

Canadian discount brokerage Jitneytrade announced this week that they are the preferred Canadian brokerage partner for a software platform known as WizeTrade. According to the release, Jitneytrade clients are now able to integrate the WizeTrade interface with Jitneytrade’s Desktop Pro platform to allow direct trading from the WizeTrade platform. Wizetrade is a charting/scanning platform that enables users to scan/trade currencies, equities, options and commodities.

From the Forums

Ungraceful Exit

One of the interesting scenarios that comes up is when it comes time to switch brokerages. Most brokerages impose a penalty for leaving, with some even putting an additional charge if users leave within a year of signing up. On the flip side, most brokerages getting a client have offers to pay transfer fees. Unfortunately, for investors such as the one in this Reddit post, the threshold to have those fees reimbursed was higher than the amount getting transferred. Nonetheless, check out what other readers had to offer in terms of advice.

One DRIP at a time

The dividend reinvestment plan (DRIP) is a popular strategy for building wealth by using dividend payments. How smoothly this process goes depends somewhat on whether an investor chooses to use this strategy inside or outside of a registered account. While possible outside of a registered account, there is a bit more work that’s required to ensure the transactions are properly accounted for. The following post from Canadian Money Forum highlights one user’s experience with setting up a DRIP in a non-registered account.

That’s a wrap for this shortened week. As a reminder, US Markets will be closed on Monday for the Memorial Day long weekend. It’s likely that Canadian markets will also trade more lightly because of the US market closures so whether it be on the weekend or in the trading lull on Monday, enjoy the following video pitching a novel approach to using solar power (cue the solar bull drool).

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – May 16, 2014

Keep Calm and Carey OnThe bears just can’t seem to catch a break this week. Even the Boston Bruins now know what it feels like to be on the wrong side of a hot Price. As a jumping off point to this week’s roundup, the intensity that comes with fierce rivalry is a reminder that discount brokerages & investors had better be prepared to play to win. Champions, challengers, currencies and commitment – this week we’ve got’em all.

In this week’s roundup, we take a look at a very interesting interview with one of the largest discount brokerages in North America. Next, we highlight how one of Canada’s independent brokerages looks like they’re trying something different within the deals & promotions arena. Following that, we pass along some important cautionary advice from a major Canadian securities regulator about virtual currencies. Finally, we end this pre-long weekend edition of the roundup with some interesting reading suggestions from the forums.

Online Trading According to Interactive Brokers

It’s one thing to compete as an investor, but it’s an entirely different thing to be able to be profitable at it.

This past week a very compelling interview of the CEO and founder of Interactive Brokers, Thomas Peterffy, was published by the Motley Fool. In that interview there were a number of interesting comments made by Peterffy regarding what it takes to compete in the discount brokerage industry and the commitment Interactive Brokers has taken to controlling costs through automation.

Among the many revealing statements was one regarding their business the core metrics they monitor: the number of new accounts, the amount of new assets and the margin loans. The fact that Interactive Brokers is geared towards “sophisticated” investors means that when they connect with their target client (or vice versa), trading activity is almost a given. Also revealing was the statement that Interactive Brokers doesn’t appear interested in growing their business by competing outside of their comfort zone (for now) – something bigger bank-owned brokerages may be content to know.

Welcome to the Jungle

Eat or be eaten is the law of the jungle. In the discount brokerage deals & promotions space, Questrade stands out amongst other brokerages because of the frequency with which it provides incentives for opening a trading account. This week was no exception as Questrade announced a promotion in which individuals who open an account (with a $5,000 deposit) and make at least one commissionable trade will receive a $50 Amazon gift card.

While other brokerages have, in recent memory, been willing to try something different (such as AirMiles), pairing a gift card from Amazon is an interesting move. The $50 mark is something that BMO InvestorLine is also pushing as part of their most recent promotional campaign (along with 50 free trades).

After a bit of quick math, because a commissionable trade (of between $4.95 – $9.95) is required to get the gift card, individuals are actually getting ~$40-45 for a deposit of $5,000.

Virtually Volatile

Although it hasn’t been making as many headlines as it was earlier in the year, Bitcoins have been getting a lot of interest from regulatory agencies all across the globe. As a cautionary tale to investors and those considering using Bitcoins, the British Columbia Securities Commission (BCSC) InvestRight posted this article on their blog regarding the popular digital currency.

From the Forums

The journey from novice to expert is something that every investor undertakes. Knowing where or how to begin is an ongoing challenge and so this week we chose to show both ends of the spectrum. From the humble beginnings to the world experts.

Old School Video

There’s nothing quite like kicking it back to the ‘old school’ way of investing to realize that much of what was true then is true now. It’s also quite a trip to see old film reel streamed from the web. Check out the video posted on our Facebook page.

Learning How to Invest

The personal finance section of Reddit once again provided some interesting conversation threads for self-directed investors. In this thread, a beginner investor in university looking to get started with investing reaches out to the reddit community to see how they went about learning how to invest.

Getting Schooled

The investing world has no shortage of personalities and opinions. One of the most interesting voices in the mix is Kyle Bass, who is rarely at a loss for words or a bearish outlook on Japan. This video comes courtesy of a post on Canadian Money Forum and certainly kicked up a storm of debate given that Canada has now gotten in his cross-hairs. Be warned though, there is quite a lot of material to follow along on.

That’s a wrap for this week’s roundup. Remember that Canadian markets will be closed on Monday for the Victoria Day long weekend but the US markets will still be alive and kicking. Have a safe & enjoyable weekend!

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – May 9, 2014

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

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

Growing Opportunities

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

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

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

ETF Contest on the Horizon

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

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

Cash is King

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

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

New Features Coming to Questrade

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

Questrade bracket orders

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

Hiring Spree

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

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

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

Among the brokerages with recent hiring posts:

 From the Forums

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

Questrade vs Virtual Brokers – encore

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

Keeping it Casual

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

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

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – May 2, 2014

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

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

Let’s May-ke a Deal

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

Learning About Earning

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

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

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

The More the Scarier

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

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

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

Picking the Top Discount Brokerages for 2014

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

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

From the Forums

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

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

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

Posted on by — Leave a comment

Discount Brokerage Weekly Roundup – April 25, 2014

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

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

Guess Who’s Back?

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

Having Your Cake and Paying For it Too

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

#WorkHardForTheMoney

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

From the Forums

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

ETFs vs Stocks

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

A Penny Stock Saved

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

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