Qtrade Investor reclaims the top spot in this year’s rankings, with 2019 winner Questrade close behind.
NOTE: These rankings are based on data collected before June 1, 2020 and do not reflect changes which may have taken place since then.
A penny saved, as they say, is a penny earned. That’s certainly the case for Canada’s self-directed investors, who are embracing the ultra-low fees offered by online brokerages and turning those savings into higher investment returns.
While pricier full-service investment options provided by financial advisors and bricks-and-mortar firms have their place—as do robo-advisors with their affordable hands-off portfolios—DIY investors who want the greatest selection of assets at rock-bottom fees can’t do better than online brokers. Of course, with a growing number of online brokerage services now available in Canada, it’s hard to know which one is best for your needs.
That’s where the annual MoneySense Best Online Brokers ranking comes in. Now in its eighth year, the ranking again relies on an analysis provided by Surviscor, a leading Canadian research and consulting firm specializing in digital and direct financial services’ customer experiences. Customized for MoneySense to include hundreds of data points—including price, customer service, product offerings and mobile capabilities—Surviscor’s deep-dive into the Canadian online brokerage marketplace is second to none.
This year, Surviscor’s president and CEO, Glenn LaCoste, who is also co-founder of the ranking, has not only contributed his 30-plus years of industry knowledge to the analysis, he has also penned the rest of the package below, offering his take on the winners and valuable advice to you, the investor.
Online brokers allow self-directed investors to pick, buy and trade assets such as stocks, bonds, and exchange traded funds (ETFs) on their own, without the guidance or assistance of an advisor or trading agent. Because online brokerages cut out the middleman, the trading fees don’t have to account for a professional’s commission, so you pocket the difference. This significant cost savings is the reason why online brokers are also known as discount brokers.
While all Canada’s dozen or so online brokers provide roughly the same basic DIY investing and trading services, the platforms, fees and access to investing information can differ. For example, this year we’ve seen a further reduction in fees and an increase in supporting tools to make self-directed investing easier.
The scoring methodology and the depth of the analysis makes the review the most comprehensive and investor-relevant study in Canada. We tell it like it is, and don’t suggest that only the top firms should be considered.
On that front, you may notice a few firms missing from our ranking. We left out Interactive Brokers because it is not designed for an average investor and it simply has not fully Canadianized its offering; Canaccord Genuity Direct (formerly Jitney Trade) as we need more time to assess its post-rebranding services as the past brand was not doing business for most of 2019; and Wealthsimple Trade, which has been wrongly labelled by many as an online brokerage firm as it only offers a mobile application with limited functionality, resources, account types, product, market information and services expected of a Canadian discount brokerage firm. No doubt, $0 commissions are attractive but we do not see why a novice investor would even consider the platform as the cost savings of dollars per trade, in our opinion, is not worth the lack of guidance, education and market depth, to name a few, required by a novice or average DIY investor.
Our goal is to provide you with the facts to help you make an informed choice of a potential discount brokerage. If you already use an online broker and have noticed a change in the relationship or longer wait times for service, don’t feel sorry for them. Instead, challenge yourself to explore other firms’ offerings, as there are many.
Whether you’re new to self-directed investing or a seasoned veteran, the Best Online Brokers in Canada for 2020 will give you valuable insight into Canada’s ultra-competitive discount brokerage industry, and help you get the most out of DIY investing.
Go here for our full comparison tool of all 12 online brokers to see how they stack up.
Rank
Broker
Total points
Basic stock-trading commission
Minimum non-registered account size for no annual/inactivity fees
Mobile app/mobile responsive website
1
Qtrade Investor
25
$8.75
$25,000 across all accounts OR 5 other conditions OR $50 per month deposit for Young Investors
Yes
2
Questrade*
23
1 cent per share ($4.95 min/$9.95 max)
$1,000 across all accounts (no fees for clients under 25)
Yes
3
TD Direct Investing
22
$9.99
$15,000 across all accounts OR other criteria
Yes
4
National Bank Direct Brokerage
17
$9.95
$20,000 across all accounts OR 5 trades per year
Yes
5
Scotia iTRADE
11
$9.99
$25,000 OR 12 trades per year for RRSPs; $10,000 or 1 trade per year for non-registered
Yes
Here’s a closer look at the top three overall winners.
Our No. 1 overall pick in 2018 and runner up in 2019, Qtrade Investor has reclaimed the top spot this year with a score of 25 points. Its superior user experience (made even better this year with a new suite of portfolio analytics tools) and market analysis for ETF investors also makes this online broker the leader in our UX and ETF categories. And, although Qtrade does not place first in every category, it consistently fares well across the board. Fees are competitive, but not the lowest around.
Things we like:
✔ Industry-leading customer service responsiveness
✔ Depth and breadth of market data
✔ Online user experience
✔ ETF investing process
✔ Industry influencer (progressive; dedicated to improving the service for customers)
Needs improvement:
X Mobile platform could use a refresh
X Fees and commissions
Last year’s overall winner, Questrade, is this year’s runner up with a score of 23 points. Still an excellent option—not to mention our top choice in the categories of mobile experience, initial impression and customer service (be sure to read the reviews below)—Questrade still lags when it comes to the market data it provides. Also, while Questrade’s free ETF purchases appeared on our “things we like” list last year, some competitors have upped the ante with free ETF sales as well, so that’s now a “needs improvement” item.
Things we like:
✔ An industry-leader in customer service responsiveness
✔ Initial impression (transparency on offerings and fees, account opening experience, etc.)
✔ Mobile accessibility
✔ Industry influencer (progressive; dedicated to improving the service for customers)
Needs improvement:
X Uses an electronic communication network (ECN), which adds extra per-transaction fees
X Charges commissions on ETF sell orders
X Depth and breadth of market data
Learn more about Questrade Accounts* >
TD Direct Investing, the largest discount brokerage firm in Canada, rounds out the top three for the second year in a row, with a score of 22 points. (Note that the No. 4 broker on our list earned 17 points, followed by a steep drop to 11 points and under for the rest of the firms.) TD’s major strength is the depth and availability of the market data it provides (it’s also our winner in that category), including quotes, charts, technical analysis, research and market notifications.
Things we like:
✔ Initial impression (good integration of discount brokerage service within bank-based site)
✔ Depth and breadth of market data
✔ Industry Influencer (progressive; dedicated to improving the service for customers)
Needs improvement:
X Confusing banking/brokerage integration (once user delves beyond the initial impression)
X Fees and commissions
X Customer service responsiveness
Some online brokers excel in areas that may be important to certain customers. Explore each category below:
Much of the marketing you see for online brokerage firms tends to focus on fees—and with good reason. Given that most charge somewhere between $5 and $10 per trade, it’s a massive savings over the $80 to $150 per trade that full-service brokers once charged their clients.
Unfortunately, those advertised fees don’t always tell the whole story, since they might exclude additional charges that can occur when trading. For example, many low-cost firms charge an ECN (Electronic Communication Network) commission fee of $5 to $40 per 100-share trade. Then there are platform fees for enhanced quote data, which can run investors an extra $30 per month.
To get a clearer picture on fees, we analyzed more than 13,000 individual trades using 10 different investor profiles. Those profiles were split into five account asset levels, and five levels of monthly trade frequency. We compared fees for stock, options and ETF trades, and also looked at account interest rates and general account fees.
Of course, it’s important to understand that lowest isn’t always best when it comes to fees. You should also consider what you’re getting for your money. Even if you’re a conservative or passive investor, paying a few extra dollars (or pennies, as the case may be) per trade is worth it the service includes access to free tools and resources such as unlimited quotes and depth of data. Even at $10, an average trade of 500 shares of a bank stock could be hundreds of dollars cheaper than with a full-service advisor, so weighing your “extras” is the key.
1. Desjardins Online Brokerage
Category winner Desjardins not only ranked in the top five for commissions, interest rates, and fees in all the areas we reviewed, it also boasts the best average options commission structure across the 10 investor profiles: $6.95 base + $1.25 per contract. That $6.95 base also applies to equity and ETF trades, but could be as little as $0.75 for more active investors.
2. National Bank Direct Brokerage
Staying with the Quebec-based firms, National Bank is the runner-up in this category thanks to its aggressive ETF fee structure: zero commissions on all ETF buy and sell orders in both Canada and the US. (Other online brokers either charge commissions on ETF sales and/or have a limited number of inactive ETFs to choose from.) National Bank also offers competitive equity commissions, interest rates and account fees, but it is less economical for options traders.
User experience, also referred to as UX, covers a broad range of factors that influence how it feels for investors to use an online brokerage service. This includes website/app design, customization features, account management, navigation, notifications and placement of trade orders.
We’ve found that independent firms, who have more autonomy in building and designing their sites, are typically leaders when it comes to UX. Bank-owned firms, on the other hand, tend to overlook the fact that paying a bill and placing a trade are very different experiences. Moreover, their newest designs seem to be less intuitive and more directed at driving cross-sales, instead of improving overall account management, trading experiences and educational content for DIY investors.
1. Qtrade Investor
Despite an older design, Qtrade Investor is the UX winner given its breadth of data, ease of both locating and using the information, strong trading experiences, easy-to-find usage policies and exceptionally good account management tools. The newest addition to the Qtrade Investor platform, which deserves mention, is its portfolio analytics lineup, Portfolio Score, Portfolio Simulator, and Portfolio Creator.
2. Questrade
Questrade, our runner-up in UX, has an intuitive online platform with industry-leading customization features and functionality, so investors can tailor their experience to their personal preferences. It’s also a leader for transactional experiences, making it easy for investors to buy and trade equities, ETFs and options.
For decades, Canadians turned to mutual funds for diversification. As regulations changed and fees became more transparent, exchange trade funds (ETFs) became the security of choice. Like mutual funds, an ETF is a basket of investments, but one that tracks an entire market instead of relying on fund managers to select the assets they think will perform well. As a result, the fund management fees (called a management expense ratio, or MER) for ETFs are much lower than for mutual funds.
Now, with a number of online brokers offering no-fee ETF purchases and/or trades, ETF investing is even more popular. The difficult part, of course, is choosing the right ETFs for your needs, since they range from broad index ETFs, tracking a market index such as the S&P 500; to newfangled work-from-home ETFs, which group together assets expected to perform well during the COVID-19 lockdown, including consumer staples, video games, semiconductors, pharma and biotech. (For a comprehensive guide to choosing ETFs, check out MoneySense’s Best ETFs in Canada for 2020.)
For this category ranking, we looked at the overall experience of investing in an ETF, including the availability of free product, research (such as screeners and market information) that can help investors with their decisions, and the general experience of placing a trade.
1. Qtrade Investor
Qtrade Investor tops the ETF category mainly because it provides investors with a complete analysis of the ETF market so they can make more informed decisions. It also offers free purchases and sales on a list of 100 ETFs, but these tend to be thinly traded ETFs rather than the most popular ones.
2. National Bank Direct Brokerage
On the flip side, runner-up National Bank Direct Brokerage is more competitive than Qtrade with its free offerings: no-commission buying and selling of all North American ETFs (with minor trading restrictions, including a minimum amount of 100 shares, placing non-phone trades and subscribing to electronic statements). The drawbacks, again in direct contrast to Qtrade, are its research tools and general trading experience.
We are often asked why we place so much value on market data in our assessments of online brokers. The answer is simple: for DIY investors, everything starts with a quote. When an investor decides its time to buy or sell a security, its price determines the trade contract.
Our evaluation considers the overall experience of obtaining relevant market information, which includes the depth of a quote, general market information, analyst views, supporting charts, industry research as well as both fundamental and technical analysis.
1. TD Direct Investing
Market data has always been a strength at TD Direct Investing, as far back as the 1980s when it forged the path in Canada’s discount brokerage industry as TD GreenLine. Today, an investor can expect superior depth of information for quotes, charting and technical analysis, research, and industry-leading market notifications or alerting. The availability of market data for both individual securities and overall market analysis makes TD our top choice in this category.
2. Qtrade Investor
Our market data runner-up, Qtrade Investor, provides exceptional quote depth and fundamental stock information along with strong interactive charting, technical analysis, and equity research.
The Canadian discount brokerage industry was late to the financial services mobile party, and it still lags behind both its Canadian banking counterparts and discount brokerage firms south of the border.
With the current sophistication of mobile devices, investors expect to have the same experience on their phones as they would on a desktop or laptop. The days of satisfying mobile users with access to quotes, basic account information and trades are over. Some progressive online brokers do have a near-full account experience via mobile, offering all the same tools and analysis investors would find on their computers. But, in general, most Canadian firms are far from that level.
1. Questrade
The seamless integration between its online and mobile platforms makes Questrade our top choice in the mobile experience category. This platform integration makes the service as robust on a smartphone as it is on a desktop, providing the transactional, account and market data tools and experiences that are missing from most firms’ mobile offerings.
2. BMO InvestorLine
Despite having an older and sometimes troublesome design, BMO InvestorLine is our runner-up for mobile experience—which perhaps speaks to the industry’s shortcomings as a whole in this area. BMO InvestorLine was one of the original firms to provide mobile capabilities and it continues to be a leader, especially when it comes to strong account and market data via mobile.
As the saying goes, “You never get a second chance to make a first impression.” The same is true for online brokers, who are hoping to capture new business when investors visit their sites for the first time.
But, how clearly and accurately does a firm portray itself on its public website while trying to sell you on its merits? That’s what this category measures.
We look for informative public sites that fully explain: what an investor can expect if they become a customer, whether they provide free insight into the markets, what the fees are for various trading level and, most importantly, how the process for opening new accounts works. One would think that each firm has the same message, but only a handful of firms really excel in terms of providing clarity and transparency on this critical initial experience.
1. Questrade
Potential clients who visit Questrade’s site will walk away with a full understanding of the service’s promised experience, making it our category winner. The account and pricing information is clear and easy to navigate, the account opening experience is straightforward and fully digital (no handwritten signatures required), and there are free resources for non-clients, including practice accounts. Questrade’s main drawback is the lack of market information.
2. (Tie) TD Direct Investing and National Bank Direct Brokerage
Sometimes a race is too close to call. Both TD Direct Investing and National Bank Direct Brokerage have done a great job at integrating a discount brokerage firm offering within a bank-based information site, so they tie for runner-up in the initial impression category. Unfortunately,
National Bank’s account opening process could use some improvement.
If you ask me, customer service is the key differentiator between firms and should never be taken lightly. In most cases, online investors are not looking for face-to-face interaction, but rather quick responses regarding both general and secure service questions.
In our analysis, we focused on firms’ average response time to service enquiries over the 12 months ending May 31, 2020, the various types of contact and hours of service provided, as well as service levels for a three-month period (March to May) during COVID-19, to provide a better picture for you.
(While one could argue that COVID-19 has had a major impact on the current and future state of customer service, our research over the past decade indicates that service levels were dropping well before the world stopped moving.)
1. Questrade
In a repeat of last year’s results, Questrade is again our top choice for customer service. It has shown its commitment to clients with a consistent track record of responsive service (typically under four hours) even through the COVID-19 crisis to date. In addition, Questrade offers live chat and correspondence via social media for investors who prefer those channels.
2. Qtrade Investor
Runner-up Qtrade Investor nearly tied with Questrade for the category’s top spot; both firms are clear and undisputed leaders for customer service in the discount brokerage industry. You can expect a quick turnaround of three to five hours when you correspond with Qtrade Investor, as compared with 75 to 110 hours for bank-owned firms such as BMO InvestorLine and Scotia iTRADE.
Looking for more information? You can find detailed reviews of each of the 12 firms on the Surviscor site: just click on the highlighted firm’s name.
This list is presented in alphabetical order:
This is a good time to repeat that investing comes with risk. Unlike deposits in banks and credit unions, which are covered, up to specified amounts, by the Canada Deposit Insurance Company (CDIC) or provincial deposit insurance organizations, there is no protection for investment losses. As an example, let’s say you decided to sock away $50,000 in a high-interest savings account at a CDIC-protected bank. In that case, you are guaranteed to get your $50,000 back. (After inflation, it might purchase less when you withdraw it than when you originally deposited it, but it’s still $50,000.) On the other hand, imagine you decided to invest $50,000 in various stocks, and the market value of those stocks declined by 15%. If you needed to sell those stocks in order to access cash, you would need to accept that the $50,000 you invested is now worth only $42,500 (minus any commissions or fees payable to the brokerage you used). That’s the reality of investing.
However, there is protection for the property you hold within an online brokerage, including securities you own (such as stocks or ETFs) and cash. The Canadian Investor Protection Fund (CIPF), which was created by the investment industry in 1969, exists to ensure your property is returned to you, at the current market value, should your investment dealer go under.
Online brokers also offer information on how they protect their clients’ security on the platform, so access to your account and personal information are protected (here’s an example from QTrade Investor).
For everyday investors in Canada, the low (and sometimes $0) fees charged by online brokers has been a boon. Scroll down this table to see the commissions and fees charged by all 12 Canadian online brokerages.
So, you may be wondering how online brokers make enough money to stay in business. As this article in Bloomberg Businessweek noted, “Brokerages can make money from simply lending out the cash you aren’t using. And once you sign up for free trades, they have a chance to sell you other services.” Other costs, such as foreign exchange fees charged by Wealthsimple trade, help to ensure that online brokerages stay profitable.
Surviscor representatives completed a features and functionality questionnaire of nearly 4,000 questions for each firm in the survey, while performing hundreds of typical investor tasks on each individual online platform. They also analyzed the firms’ cost of services over 10 different investor profiles, and reviewed more than 160 service interactions over a 12-month period ending May 31, 2020.
Each firm was assigned a score based on its ranking within the seven sections of review (5 points for 1st, 4 for 2nd, 3 for 3rd, 2 for 4th and 1 for 5th), and the overall score was the sum of the awarded sections.
If a link has an asterisk (*) at the end of it, that means it's an affiliate link and can sometimes result in a payment to MoneySense (owned by Ratehub Inc.) which helps our website stay free to our users. It's important to note that our editorial content will never be impacted by these links. We are committed to looking at all available products in the market, and where a product ranks in our article or whether or not it's included in the first place is never driven by compensation. For more details read our MoneySense Monetization policy.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Increasingly, retail investors are moving the markets; what does...
These tips will help you ride out short-term downturns...
Presented by CIBC Pace It
Having debt isn't necessarily a problem. But the amount...
Paul and his wife have a non-registered investment account...
BMO sounds the alarm on Canada's housing market, while...
Presented by Questrade
Our panellists each pick the one fund they'd leave...
Presented by Questrade
Our panel picks the best fixed-income ETFs for your...
Presented by Questrade
Six picks return from last year to form our...
Presented by Questrade
Our panel picks the best exchange-traded funds focussed on...
I need to know which online brokers willingly provide hard copy T etc. income tax documents sent through Canada Post at no extra charge to their clients.
March 25th, 2020: I have been a customer of TD Waterhouse for many years but they are currently having extremely serious technical problems with little evidence of any progress on a solution. It’s so serious that customers have had problems with basic account access, order execution and reaching customer service by phone!
Note that TD’s problems have nothing to do with COVID-19 and the current market volatility, it’s there own web access and technical issues. I have personally lost thousands and thousands of dollars because I can’t access my own account! Please do not even consider doing business with this company as you are risking the loss of significant amounts of money.
See the other posts, on various websites, describing TD Waterhouse’s problems…
What a crazy and stupid reviews. you have failed to disclose the interest rate on margin. After I searched in depth, the Interactive broker was the best. Just look at the MARGIN INTEREST RATE. The interest on your margin is 1.87% and other brokerage are minimum 7.9 till 9% with considering prime interest rate is almost 0%. also all of them they ding you for each trade, there goes your profit, Interactive broker charge 0.01 Cent for each share or $1 for 100 shares, others almost $10. there you go, this is the honest opinion. Qtrade, TD, RBC, and BMO are for the kids to play, not for serious investor. I can go on…. regarding other stupid charges that Qtrade and others charge.
What about data? I’ve been with questrade for a decade and I’m fed up with the fact that they do not offer up to the minute data for free and quotes are delayed by 15 min. Each time I place an order I have to open up yahoo finance to get a real time quote. How ridiculous is it that a broker where I am paying commissions wants to charge for data that is FREE though a search engine?
No one ever mentions the ECN fees at Questrade. Cost me $25.70 to sell 4500 units of an etf. I am firing them.
Please take note everyone that these results are from April 2019 despite the misleading title. As the leading contributor to this article I would like full transparency thus this note. We have reached out to MoneySense to resolve the title issue.
anyone knows which broker provides online access to the whole PM & AH trading online. currently i’m with Questrade and i can only trade and hour before the market opens and an hour after it closes. thx.
I was a little surprised that you didn’t include margin loan rates at the various brokers (apart from WealthSimple), in your review. Surely that would be of interest to your readership.
I too have had problems with TD’s web broker since they decided to move to a 2 step verification. For me, it amounts to discrimination as I have a profound hearing loss. The 2 step requires a security code sent to a cell phone. I don’t use a cell phone because I find it hard to hear. A security code sent to my landline is problematic because I can not understand a computer voice and there is no way to have it repeated in a different manner, nor am I able to repeat back to know that it was what I heard. When I try repeatedly to get a representative to help me it only works for a password reset. Then when I log in the next time I go through the same drill even though I have the setting checked off that I only want to have a security check when web broker wants to verify that it is me. Back to square one.
It is hard to give up TD’s data but it isn’t much good if you can’t access your account.
I trade with TD Can Trust, unfortunately ! If I log in too often a robot advises me with an option to get a temporary password via a text message or phone call. I am 92 WITH A HEARING IMAIRMENT and do not understand the robot who answers. if it takes too long then a robot asks me if I forgot my user name o password. I say no and eventually I am informed that my
account is blocked and phone an 800 number to get a new password. This takes up to an hour for a real person to answer. I just got a new password the day before that does NOT work. I have an account to invest with TD, but I spend hours being blocked and NOT being able to trade. I cannot get this blockage uninstalled by a robot so I constantly miss opportunities to invest. This is constant frustration. Any advise anyone ?
Why isn’t Interactive Brokers Canada is not rated ?!? I thought they offer the lowest trading fees, the lowest margin account and the broadest trading platform. Being a global brokerage should also offer longer hours ?
Hello Robert, thank you for your comment. We will keep all suggestion in mind for the future, in the meantime feel free to take a look at our methodology.
Surviscor representatives completed a features and functionality questionnaire of nearly 4,000 questions for each firm in the survey, while performing hundreds of typical investor tasks on each individual online platform. They also analyzed the firms’ cost of services over 10 different investor profiles, and reviewed more than 160 service interactions over a 12-month period ending May 31, 2020.
Each firm was assigned a score based on its ranking within the seven sections of review (5 points for 1st, 4 for 2nd, 3 for 3rd, 2 for 4th and 1 for 5th), and the overall score was the sum of the awarded sections.
As an option trader, I am quite disappointed with CIBC Investors Edge’s online functions for option trading. After over a year’s wait and several delay, they have finally implemented uncovered option trading. But recently it appeared they have cancelled that function. To compound that, reaching an option trader by phone is almost impossible. In addition, for covered call transactions, be aware that their system does not permit a user to write another call option until the following Tuesday. Equity options expire on Saturday and usually you can write a new option again on the following Monday.
I am more concerned about the USD / CAD exchange rates than the trading fee.
Canadian online traders make more money with “criminal” CAD / USD / CAD exchange rates than with trading commissions… and that’s where the investor can easily loose from 3 to 5% of the investment… the trading fee (2X – buying + selling) is mostly less than 1%.
Does anyone have any analyses and exchange rates for these online traders?
Samuel Kavanagh — your July 29, 2020 response at 1:11 pm to Robert Korchinski’s July 27th comment doesn’t answer the question,
Why wasn’t Interactive Brokers Canada included in the survey ?
How many questions, etc those covered were asked is irrelevant.
What was the reason Interactive Brokers Canada wasn’t asked the same questions, etc?
I too would like to know.
Response from the MoneySense editorial team:
Hi Patricia, thank you for your comment. We are reaching out to Surviscor at the moment and will share their rationale when we hear back from them.
Why would Scotia I-trade make this list they are impossible to get in touch with, by phone or emial, over an hour wait time on the phone, and 10 days to respond to an email, there mobile app is not very good wonce you explore other apps, and as with ALL canadian platforms there are fees, why is it free in the USA but not here. Scotias responce is because of the tools and research available while if your not using them why am I still charged 9.99 a trade…
I’ve had nothing but difficulties with Qtrade. From a very lengthy account opening to very long waits on order submission to them actually submitting the orders.
I’ve also had numerous issues that I had to call in for. Multiple times. Promised follow ups don’t happen.
These guys are awful. Ignore this ranking and go with TD or RBC.
I’ve yet to find a good on-line broker.
BMOInvestorline doesn’t provide a statement of capital gain/loss at tax time, which means hours and hours of spreadsheet work for me. Phone staff are miserable.
RBCDirectInvesting staff were great but you can’t buy USD fixed income.
TD Direct Investing wouldn’t let me transfer in my LVMH ADR shares but would take Nestle ADR shares. What’s the diff? Never received an answer… and never received a phone call to alert me to a problem, I had to phone.
Why Interactive Brokers are not mentioned here? Are they not qualified for *online* broker or what?
I guess it may not fit your definition, but how about mentioning Wealthsimple Trade next time. It’s only on mobile, sure, and it lacks certain features. But for smaller accounts, when trading only a few shares at time (when doing weekly contributions in a TFSA like I do, for instance), it can’t be beat on price. I guess if Questrade was deciding to add free ETF sales, that would be a game changer.
When I click on Questrade in the above alphabetical list, I get info on National Bank Brokerage. Please fix the link. Thank you
Thanks for letting us know.
For years, MoneySense has been positive on its review of National Bank Discount Brokerage. As a client of NDB for 3 years, I agree that their call center rarely keeps you waiting. They also do not charge commission on ETFs, but some of their policies* and lack of flexibility in applying them has convinced me is time to transfer out.
(e.g. since 2020 NDB doesn’t allow switches between DSC funds even if the MF company does, they put obstacles to reimbursing transfer in fees and last, look out for some steep transfer out fees if you have an account where the investments are segregated in CAD and USD as the 150$ +tax fee is applied to each account currency).
Thanks for the great article and information.
I registered with TD and although they have some great tools, I found their customer service terrible if you try to reach by telephone. Literally on hold for hours and then they close for the day. After numerous calls, I finally gave up.
I sent a complaint in by email, and it was responded to promptly but with no resolution except an apology.
Trying to get a hold of a human being at TD Web Broker is getting harder by the day. The online interface will not allow you to transfer USD from a cash account to a TFSA USD account but it will allow you to transfer to a CDN account. Another issue is dividends , they are not registering on the day that they are supposed to be in the account , especially one US stock that I own.
There response via electronic mail is pathetically slow and it’s usually of generic in nature. I was on hold on the phone for four hours one day and three the next and never got through. I’ve been with TD since the late 1980s and it has just gotten worse year after year for customer service. I have accounts at Q trade as well and though not perfect at least you can get a hold of someone in a reasonable amount of time.
One dimension that isn’t examined: how large are breakup or withdrawal fees? For example, NBDB charges CAD 50 for _any_ cash withdrawal from a registered account; this is an issue if you have now retired. Should you wish to transfer assets they charge $150 per account _per currency_, so almost any transfer will be a minimum charge of $300 per account and potentially more.
Also a question about jurisdiction. We have some DSC funds (long story) where the fund issuer allows no-charge transfers to another DSC fund. NBDB refused to process the transaction, saying no sale allowed on DSC funds, even though the issuer said it was good. Ontario based brokers have no problem with this… is this a Quebec thing?
It appears that Questrade has a stranglehold on the companies that do the ratings.
I am a long-standing customer with Questrade and my experience is terrible. Notwithstanding the disruptions caused by Covid-19, their Customer Responsiveness does not deserve a “1” on a scale of 1 to 10, where 10 is “As expected”. This has been and continues to be a long-standing issue.
99.97% of the time, the need to contact Questrade is due to a mistake that they made. Resolving a problem is a horrendous, time-consuming process.
So, if Questrade is in the top 3, then in Canada, we have a serious problem.
Perhaps those of us who are having similar experiences with Questrade and other on-line broker services, will ban together and head over to the “Investment Industry Regulatory Organization of Canada (IIROC) (https://www.iiroc.ca/Pages/default.aspx) to make our dissatisfactions known and understood.
Just maybe, if there is enough of us, IIROC will open an investigation and hopefully corrective measures will be taken.
I was surprised that Virtual Brokers was not on this list. The $0 commissions on etfs and penny per share for equity trades is amongst the lowest trading cost out of all the platforms.
I agree with Mike G from December 9, 2020. I’ve been with Virtual Brokers for over 10 years. They have the lowest fees. I get good customer service. Yet, MoneySense never seems to acknowledge them. Maybe, they are to tied up with partnering up with Questrade.
Edit to previous post. ” to ” on 2nd to last line should read ” too “.
Thanks to the editors for having a comments area. I think I learned as much there as the article. Thanks to the comment posters; however, many of the posts level serious criticisms but are short on viable alternatives. As a person who is about to open a trading account my impression is that no broker is perfect and that I should be prepared to encounter challenges and disappointments. I live in Ontario and want to trade specific stocks on the TSE, NYSE, and Nasdaq. At the moment, I think I will start with Questrade. I suppose everyone would agree that starting somewhere is better than not starting at all?
I’m reviewing self-directed brokerage companies as I once again wait a ridiculous amount of time on hold for BMO Investorline to check re status of a request. I’m not able to check the status online. The wait before the pandemic was long enough, however, during the pandemic I’ve had to call in 3 times. The first 2 calls I was on hold for over 1 hour. This call has been over 30 minutes so far – still waiting! Pathetic customer service – which they say in their recorded message they’re trying to rectify – but still no progress on resolving the incredibly long wait times to speak with someone…Just ‘food for thought’ if you’re looking for a self-directed brokerage company.
TD has NO service. Over the last 4 days I have spent at least 8 hours waiting for someone to answer the phone. Do they actually have people working?
I found some of the responses to be silly. Like, why do people think they don’t have to pay CAD/USD conversion fees with their brokerage? Major banks charge the same rates. Imagine what it’s like for Canadians who work in the US. Which brokers offer hard copy of tax forms? Well, they’re discount brokerages and will offer them online by default. Did the customer ask for them? Let’s see, what else, whining about margin interest rates? Did the person expect them to be as low as a HELOC? Why do people think that there shouldn’t be fees in general? We are retail investors. It costs money to handle your money. Banks have billions of dollars to invest at all times. Complaining about below average service over the phone? These are DISCOUNT BROKERAGES. Want better service? Switch to a full service brokerage, and pay higher fees.
A category on best online brokers that accept in coin transfer of tfsa and rrsp would have been appreciated.
I have been a platinum client with BMO Investor Line for some time. I hope that your next review will reflect the conundrum and chaos respecting their customer support or lack thereof. Traders stories coming out of BMO in the past year are terrifying. I am starting to migrate my services elsewhere slowly.
I will not recommend BMO to anyone. They are way over their heads and cannot support the platform so much so that every now and again clients get general emails apologizing for the chaos and their recorded message while being placed on hold, is a lame vm by the president of Investor Line apologizing and explaining them being unable to provide support. Absolutely shameful.
I opened a QuestTrade account last year, based on the strength of the reviews from this and other sites. Big mistake; their website is the worst. You execute a trade and your mobile version will show the trade as complete but the desktop version might not show the trade for days. Even it did, it won’t show the value of the trade including the commission so you are left in the dark trying to figure out what you paid. If you want research, simple answer, there isn’t any. Pay up for a full service broker, skip the crappy discounters.