Best in class
We picked two overall "best in class" winners. Which ones were they?
Top picks overall: BMO InvestorLine, Scotia iTRADE
Honourable mention, bank-owned: RBC Direct Investing
Honourable mention, independents: Qtrade Investor
[mp3j track=”https://www.moneysense.ca/wp-content/uploads/2014/05/2014wknd-biz-3-eppel-may-17181.mp3″ title=”Play: Dan Bortolotti talks best brokerages with 680 News’ Mike Eppel”]
There’s no single one-size-fits-all discount brokerage, but this year’s overall title goes to BMO InvestorLine for its strong showing in all our categories. It’s strong everywhere from efficient account opening to a strong suite of online services and planning tools.
Scotia iTRADE is a close second with solid offerings that keep improving—although we’d like to see commissions lowered on smaller accounts.
Honourable mentions: RBC Direct Investing does almost everything well and should be the first place to look if you already do your banking at RBC. And as the only independent brokerage in our winners circle, Qtrade Investor didn’t rank number one in any individual category, but was in the top four in almost all of them.
Still confused about which brokerage is right for you? Flip the page for our fully updated comparison table that summarizes the key features of the major online brokerages.
For a look at the top performers in each category, see “Canada’s best discount brokerages.”
| BMO InvestorLine | CIBC Investor's Edge | Credential Direct | Desjardins Online Brokerage | HSBC InvestDirect | Laurentian Bank Discount Brokerage | National Bank Direct | Qtrade Investor | Questrade | RBC Direct Investing | Scotia iTRADE | TD Direct Investing | Virtual Brokers | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Annual fee for RRSP and other retirement accounts | $100 if under $25K | $100 if under $25K | $50 if under $15K | $100 if under $15K | $100 if under $25K | $75 if under $25K | $100 if combined accounts under $20K or under five trades per year | $50 if under $15K | $0 (subject to inactivity fees) | $100 if combined accounts under $15k | $100 if combined accounts under $25k | $100 if under $25K ($25 for Basic RSP) | $50 if under $15K |
| Annual fee for Tax-Free Savings Account (TFSA) | $0 | $0 | $0 | $0 (subject to inactivity fees) | $0 | $50 if combined accounts under $100K unless two trades per year | $100 if combined accounts under $20K or under five trades per year | $0 | $0 (subject to inactivity fees) | $100 if combined accounts under $15k | $0 | $0 | $0 |
| Annual fee for Registered Education Savings Plan (RESP) | $50 if under $25K | $0 | $0 | $50 if under $15K | $50 | $50 | $100 if combined accounts under $20K or under five trades per year | $50 if under $15K | $0 (subject to inactivity fees) | $100 if combined accounts under $15k | $25 if under $25K | $50 if under $25K | $25 |
| Annual fee for non-registered account | $100 if under $10K, waived with registered account or two trades made in six months | $100 if under $10K, waived with registered account | $0 | $100 if under $15K, waived with registered account or two trades made in 12 months | $100 if under $10K, waived with registered account or one trade made in three months | $80 if under $10K, waived with two trades made in six months | $100 if combined accounts under $20K or under five trades per year | $0 | $0 (subject to inactivity fees) | $100 if combined accounts under $15k | $0 (subject to inactivity fees) | $0 (may be subject to custody fee) | $0 |
| Minimum account size | $5,000 (no minimum for TFSAs) | None | None ($2,000 margins in accounts) | $1000 | None | None | None | None | $1,000 | None | None | None | $1000 |
| Basic online equity commission* | $9.95 | $9.95 | $19 or 2¢ per share if over 1,000 shares | $9.95 | $9.88 | $9.95 | $9.95 | $9.95 | 1¢ per share ($4.95 min., $9.95 max) | $9.95 | $9.99 | $9.99 | $6.49 |
| Are lower or higher commissions charged in different circumstances? | No | $6.95 if over $100K in CIBC products; $28.95 in accounts under $50K | $9.95 if over 10 trades per quarter | As low as $5 on active platforms (other fees apply) | $6.88 for Premier banking clients; $28.88 or 3¢per share if under $50K | No | $6.95 if 30 trades per quarter | $7 if 150 trades per quarter | Several structures, inlcuding 1¢ per share (max$6.96 | $6.95 if 150 trades per quarter | $4.99 if 150 trades per quarter; $24.99 or 3 ¢ if account under $50K | $7 if 150 trades per quarter | Several structures, including 1¢ per share (max 99¢) |
| Basic options commission (1) | $9.95 + $1.25 per contract | $9.95 + $1.25 per contract | $19 + $1.25 per contract | $1.25 per contract (min $8.75) | $9.88 + $1.25 per contract | $9.95 + 1.25 per contract | $9.95 + $1.25 per contract | $9.95 + $1.25 per contract | $9.95 + $1.25 per contract | $9.95 + $1.25 per contract | $9.99 + $1.25 per contract | $9.99 + $1.25 per contract | $9.99 + $1.50 per contract |
| Are commission-free ETFs available? | No | No | No | No | No | No | No | Limited menu with no commissions to buy or sell | All ETFs free to buy (commission charged upon sale) | No | Limited menu with no commissions to buy or sell | No | All ETFs free to buy (limited menu also free to sell) |
| Can you hold U.S. dollars in registered accounts? | Yes | No | No | No | No | No | Yes (call to arrange) | Yes ($50 annual fee) | Yes | Yes | No (U.S.-friendly RRSP is $120) | No | Yes ($50 fee) |
| Does the brokerage provide personal rates of return? | No | No | No | No | No | No | Yes | No | Yes | Yes | No | No | No |
| Can you purchase an inventory of bonds and GICs online? | Both | Both | Bonds only | Bonds only | Both | Bonds only | Bonds only | Both | Neither | Both | Bonds only | Bonds only | Both |
| What can be traded using apps or mobile browser? | Equities, options, mutual funds | Equities | Equities, options, mutual funds | Equities, options, mutual funds | Nothing | Nothing | Equities | Equities, options, mutual funds | Equities, options | Equities, options, mutual funds | Equities, options | Equities | Equities |
| What extra benefits are available to active traders? | Added services, better data (30 trades per quarter) | Lower commissions (150 trades per quarter) | Lower commissions (150 trades per quarter) | Lower commissions, better data (with fee) | Lower commissions (30 trades per quarter) | None | Lower commissions (30 trades per quarter) | Lower commissions (150 trades per quarter) | Lower commissions, better data (with fee) | Lower commissions, better data (30 trades per quarter) | Lower commissions (150 trades per quarter) | Lower commissions (150 trades per quarter) | Lower commissions, better data (with fee) |
| Are there advanced platforms for active traders? | No | No | No | Disnat Direct | No | No | Market Q | Qtrade Streamer | Multiple platforms for equities, forex and options | No | Trading Desk, FlightDesk | Active Trader, U.S. Trading Platforms | Multiple platforms for equities and options |
| How long does it take to respond to a general email?** | 17 hours | 15 hours | < 1hour | 1 hour | 12 hours | 56 hours | 3 hours | 2 hours | 42 hours | 36 hours | 1 hour | 4 hours | 19 hours |
| Does the site have live chat or call-back service? | Live chat | Live chat | No | No | No | No | Call-back service | Live chat and call-back | Live chat and call-back | Live chat in some areas; screen-sharing feature | Live chat and call-back | No | No |
| Best features | 5 Star Program for large accounts, AdviceDirect, model portfolios | $6.95 commissions if $100K in CIBC products | Good resources for all investors, not just active trades | Sophisticated platforms for active traders | Allows overseas trading and accounts in multiple currencies | Low account fees, simple commission structure | Powerful Market-Q platform for active traders | Free ETFs, customer service, Qtrade Streamer market data | No account fees, low commissions, multiple platforms | Performance analysis, banking integration, Royal Circle for large accounts | Clean design, FlightDesk for active traders, banking integration | Market intelligence; global trading; TD e-Series funds | Innovation, low commissions, multiple platforms |
| Buyer beware | Minimum account size; no platform for active traders | High commissions on accounts under $50K | High commissions on accounts for non-active investors | No online applications; outdated website | No online applications; high costs for small account holders | Badly outdated website is difficult to navigate | Old website design with limited resources | $4 commission for limit orders; ECN fees (3) | $9.95 commission on mutual funds, data fees, ECN fees*** | Poor email support, few resources for active traders | High commissions on accounts under $50,000; inactivity fees | No online applications; old-school website design | Data fees, uneven customer service, ECN fees (3) |
*Equity and options commissions may vary according to the size of the investor’s account and/or the frequency of trades. We’ve assumed the investor has at least $50,000 and makes fewer than two trades per month.
**Email response time was measured over multiple emails between January and March 2014 using the Surviscor Customer Email Responsiveness (CER) program.
***Electronic communication network (ECN) fees are charged in both Canadian and U.S. markets on some order types. This can add up to $0.004/share to the regular commissions.
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