Discount/Online Broker Research Comparison

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newguy
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Re: Discount/Online Broker Research Comparison

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optionable68 wrote:
newguy wrote:TD is cheaper if you do more than 700 or 1000 share trades at a time.

newguy
I disagree with you.

You assume people only buy stock.

For those who are options traders, IB is the way to go. Hands down.
Options in Canada are $1.50 per contract, at TD it's $1.25 per + $7 or $10. So again it depends on how big your size is. It's certainly about the cheapest anywhere for US options but that's cause they want your blood. They're one of the biggest market makers in US options.

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Re: Discount/Online Broker Research Comparison

Post by optionable68 »

newguy wrote:
optionable68 wrote:
newguy wrote:TD is cheaper if you do more than 700 or 1000 share trades at a time.

newguy
I disagree with you.

You assume people only buy stock.

For those who are options traders, IB is the way to go. Hands down.
Options in Canada are $1.50 per contract, at TD it's $1.25 per + $7 or $10. So again it depends on how big your size is. It's certainly about the cheapest anywhere for US options but that's cause they want your blood. They're one of the biggest market makers in US options.

newguy
Take a look at what you are paying at option expiry, assignments, covered call impact, etc..... this is where IB is essentially free.
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Re: Discount/Online Broker Research Comparison

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The Globe and Mail's 17th annual online broker ranking
This year’s overall winner is Virtual Brokers. VB has reclaimed the top spot from Qtrade Investor, now sharing second place with hard-charging Questrade. In third is a name you haven’t seen for a while in the upper echelon of this ranking. It’s TD Direct Investing
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Re: Discount/Online Broker Research Comparison

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CROCKD wrote:
This year’s overall winner is Virtual Brokers.
Excellent! I just moved my accounts there.

I've come to the conclusion that they are the lowest-cost broker for the Three Fund Portfolio (composed of Canadian-based ETFs). Buying ETFs is completely free (Free ETF Investment commission plan). Selling costs $0.01 per share up to a max of $9.99 (The Penny commission plan). The commission plan choice is valid for a 24 hours period. Note that VB forces you to open a margin account for taxable investments (no cash account).

As one of the principles of index investing is keeping costs low, I thought that it would make sense to move my accounts there.
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Re: Discount/Online Broker Research Comparison

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For those with a Globe and Mail online subscription (or the means to work around it :wink:) Rob Carrick's 19th annual ranking of online brokerages
Rob Carrick wrote: Ranking Breakdown
A : Qtrade Investor
B+ : Interactive Brokers; Questrade; Scotia iTrade
B : BMO InvestorLine; RBC Direct Investing; TD Direct Investing; Virtual Brokers
If your favorite brokerage isn't listed, then it received a C+, C or D

For those interested, the attributes used in the assessment were:
  1. Who has paperless account opening?
  2. How do stock trading commissions compare?
  3. Is commission-free ETF trading available?
  4. Foreign exchange charges
  5. Are U.S.-dollar registered accounts available?
  6. What can broker smartphone and tablet apps do?
  7. Can clients send secure e-mails to get questions answered?
  8. Is there a wide choice of places to park cash?
  9. Can clients compare their portfolio returns with benchmark stock and bond indexes?
  10. How does the client website experience rank on a scale of 1 to 5?
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Re: Discount/Online Broker Research Comparison

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2. and 3. are only of interest to frequent traders.
4. only matters for those who cannot/will not do a NG.
8. No idea why this matters unless they count GICs as parking cash. One HISA in each of CAD and USD is enough.

IOW, the rankings are depending on what you are looking for!
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Re: Discount/Online Broker Research Comparison

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AltaRed wrote: 19 Feb 2018 18:40 IOW, the rankings are depending on what you are looking for!
Absolutely agree. Different strokes for different folks.

Carrick's article does cover lots of ground and provides a very decent summary of what he believes to be the strengths and weaknesses of each discount brokerage. It is left as an exercise to the reader to determine whether the strengths (or weaknesses) have any impact on what they want in a discount broker.
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Re: Discount/Online Broker Research Comparison

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I agree his assessment is a good reference point for those wishing to re-assess where they are at, and for people starting out.
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Re: Discount/Online Broker Research Comparison

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I like my ability to invest and sell in US dollars[RBC]. I like transferring US dollars through RBC to my USA RBC account. I wish they provided access to the USA corporate bond market. I don't waste much time with Morningstar. There way of analysis i a whole lot different from mine. All in all you need a lot of convincing to get me to change. I did manage a siblings account through CIBC and I would switch to RBC in a heart beat.
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Re: Discount/Online Broker Research Comparison

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how do they rate on security and protecting the little guy from fraud? I think RBC is doing a conscious job of protecting it's clients.
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Re: Discount/Online Broker Research Comparison

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Do any of the big bank brokers (or any of the big banks for that matter) support 2 factor authentication? IB does.
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Re: Discount/Online Broker Research Comparison

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Well, at least the judging criteria is spelled out; unlike ice dancing.
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Re: Discount/Online Broker Research Comparison

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DenisD wrote: 20 Feb 2018 00:15 Do any of the big bank brokers (or any of the big banks for that matter) support 2 factor authentication? IB does.
BMO IL does though I believe it is a fairly recent (last few years) addition. Is a a verification code to a device or when travelling and no access to verification codes, challenge questions instead.

I know Scotia iTrade requires use of security questions for non-registered devices but otherwise don't really know.

I just don't access my FI sites when I am not where trusted and secured WiFi is available. There should be no need to access one's FI sites otherwise.
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Re: Discount/Online Broker Research Comparison

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Rob Carrick's new list is out, Which online brokerage is best in 2019? Rob Carrick ranks your options - The Globe and Mail (For Subscribers)
Rob Carrick wrote:The annual Globe and Mail ranking of online brokers has seen some battles over its 20 years, but never anything as tense as today.

A big divide has opened up between the middling to weak players and the elite. The top firms have cut fees in a few cases while adding new features to help clients build and manage portfolios. The also-rans continue to plod along as if they’re still basically waiters taking your order for stocks or funds to buy.

This year’s co-winners are TD Direct Investing and Virtual Brokers. TD earned its spot by surpassing other brokers with its website innovation and utility, particularly for planning portfolios. VB cut its fees sharply while also introducing a nimble new website and a state of the art tool for managing an investment portfolio.

Just behind these two firms are Qtrade, Questrade and Scotia iTrade, all of them first-rate outfits that exemplify how far brokers have travelled in the past two decades.

As ever in this ranking, brokers are scored on services targeted at mainstream online clients as opposed to heavy traders.
I think that last point is important for most FWF'ers.

Like most things there is still a subjective element to surveys and rankings such as these. What you deem important might be completely different than what's important for me, so our rankings and choices might be different.

This annual ranking can be very useful to those looking for a discount brokerage, or those who might be somewhat dissatisfied with the current broker and want to see if the grass has gotten greener somewhere else.
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Re: Discount/Online Broker Research Comparison

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As noted in this post it is time for the 2020 ratings, unfortunately behind the G&M paywall, Rob Carrick grades Canada’s online brokerages for 2020 - The Globe and Mail
Rob Carrick wrote:The best online broker in Canada is also one of the priciest on commissions and fees.

Pay more with Qtrade Investor, get more. No other broker is good in so many different areas and no other broker makes such consistent year-by-year improvements.

Online brokers are prevented by regulators from offering advice, but the best firms have figured out a way to provide tools that let investors help themselves. Unless you’ve tried these tools, you may not realize how much they can help build confidence that you’re doing the right things.

Qtrade’s standard online trading commission was $8.75 when this ranking was done, which puts it closer to the top of range for stock-trading costs than the bottom. Low fees are a foundation of do-it-yourself investing, and they are a crucial aspect of the 21st annual Globe and Mail online brokerage ranking.

But if investing to you is a years-long journey of wealth-building for goals like retirement and your children’s postsecondary education, then you’ll get more value from Qtrade’s tools and informative website than you will by paying a few bucks less per trade.
Our wiki article, Discount brokerage, has been updated to include the G&M link.
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Re: Discount/Online Broker Research Comparison

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Rob Carrick wrote:But if investing to you is a years-long journey of wealth-building for goals like retirement and your children’s postsecondary education, then you’ll get more value from Qtrade’s tools and informative website than you will by paying a few bucks less per trade.
I disagree. I don't need "information" (more appropriately called "noise") to trade single stocks and market segment ETFs. I only need free commissions to buy (and eventually sell) my boring yet awesome all-in-one ETF.

Wealthsimple Trade currently supports only three account types (non-registered, RRSP, and TFSA). Once the missing account types (RESP, RRIF, LIRA, LIF, etc.) and computer access are added, it will get at the top of my personal list. For the time being, Virtual Brokers is first on my personal list (no commissions nor ECN fees for buying ETFs) and National Bank Direct Brokerage is second (no commissions to trade 100 units of an ETF or more). Wealthsimple Trade is third (no commissions for trading ETFs and stocks, but doesn't have real-time snap quotes). Questrade is off my personal list because it charges ECN fees.
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Re: Discount/Online Broker Research Comparison

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Maybe for you, but for a lot of investors, research and tools are a necessary part of, for example, stock picking. I've always believed these beauty contests in the past focused too much on low trade commissions and not enough on the full package for the investing public at large. It is always a balance to find the sweet spot for the middle of the bell curve. Those on the tails will go to the model that works best for them anyway.
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