As I mentioned recently, I got my 1% rebate from RBC and want to come crawling back transfer my money back to my favorite broker – Questrade. There is one huge reason why I’m such a fan of Questrade and that is money – their $5 trades are the cheapest in the business and that is all I care about. I also like their customer service – I’ve rarely had to wait when I phone.
I got in contact with some of the good Questrade folks last week about transferring back and after all the tears and hugs they decided to create a special campaign for readers of this site who left Questrade but want to return. This could include anyone who left last year to get the 1% RBC rebate like I did and want to return to get the cheap trades.
Questrade will pay up to $150 in transfer fees for returning customers
Yes, that’s correct – if you are a returning client with at least $25,000 in assets then any transfer fees you pay at your current brokerage will be covered up to $150. Now you might be remembering that we’ve mentioned many times on this blog that most brokerages will cover your transfer fees. This is true but it’s not usually a written policy – you have to negotiate it. You might also be thinking that Questrade already has this deal on their website – yes, this is also true but it doesn’t apply to returning clients only new clients. Signing up through this offer is the only way for returning clients to get any of the transfer fees covered. This offer is in place until the end of September, 2009.
Can’t I just go to any new brokerage and get my fees covered?
Yes, but you have to negotiate the transfer fees and will probably have to pay $20-$30 every time you make a trade. As a huge fan of low-cost investing – I go for the cheapest fees.
How do I take advantage of this great deal?
Very simple – you can go to Questrade new account page and sign up for a new account or if your old client info is still active then go to www.myquestrade.com and sign in using your old login (you can call for a password reset). Once you are in there then set up a new account. The great thing about the second option is that you can take advantage of the pre-filled application forms which saves a lot of time.
The most important thing is to fill in the following promotion code on the application form: FPZT25
There are two reasons for filling in the promotion code:
- Questrade will know you are taking advantage of this offer.
- I will be compensated for the referral if you successfully fund the account. I’ve negotiated for a cold can of Steam Whistle beer to be placed on my front porch every time someone takes advantage of this offer.
I’d like to try out Questrade but I’m not a returning client
Good idea – in that case you can sign up here or click on the banner after the text.
Is it hard to transfer to a different brokerage?
It’s not hard but it does take some time and is a pain in the butt. However, I calculated that I will save about $150/year in trading fees by moving from RBC ($10 trades) to Questrade ($5) fees. $150 a year indefinitely is well worth a bit of time to make it happen. Also – I’m not a very active trader so your savings could be larger if you trade more.
Questrade review
Questrade Discount Brokerage review
{ 26 comments… read them below or add one }
Let me start by saying that I think this is a fantastic finance/investing blog for Canadians.
BUT…
This post, unfortunately, reads like an infomercial. Your past posts reviewing discount brokers are gold, and I’m sure that they’ve brought many Canadian investors to Questrade, the standalone favourite for anyone who does their research.
I can’t shake the feeling that this time, there may be some other motivation ($$$). Don’t get me wrong, monetizing your blog is not a bad thing, given the amount of effort you obviously put into it. However, I’m can’t help but be curious whether Questrade is offering some incentive to you for this promotion.
If I’m mistaken, I offer my sincere apologies. Even if you are compensated, I have no problem with that (you have endorsed a quality product). And I’m sure that the rest of the readers here accept that as well. I can’t speak for everyone else, but I’d like to know.
CC – I said right in the post that I’m being compensated for anyone who takes advantage of this deal – that’s what the promo code is for.
I will be compensated for the referral if you successfully fund the account.
I can’t put it any clearer than that!
HI I do not want to trash your blog but I have to say I am moving in the other direction. It is becoming to hard trading with these guys Questrade. Lately the screw ups are getting so bad. Balances wrong, positions missing, phantom positions appearing, orders slow to cancel. I am scared to trade some days and its not becuase of the market.
I missed that one. OK. Great! *wiping egg from face*
Honestly, I can’t be bothered with Questrade at all even if I wasn’t eligible for $10 trades at the big brokerages. Scotia iTrade seems to be a better bet for accounts smaller than $50K and between $50K to $100K even if it is $5 to $15 more expensive. I don’t agree that commissions are the only criterion someone should care about. An incompetent broker could turn out to be very expensive even if commissions were cheap.
It does seem that Questrade has many satisfied customers such as yourself. However, given the number of dissatisfied customers they also have, it seems to me moving to Questrade is rolling the dice.
Sully – If you are really having those kinds of problems then it’s extremely difficult to understand why you haven’t already moved your money.
Have you tried getting these problems resolved?
CC – I agree that commissions are not the only factor but in my experience with 2 discount brokerages – Questrade was far superior to RBC Direct. Once I got all the accounts set up at RBC (after a lot of issues) I might have been tempted to just stay there but the fact that I have to pay $20 to make a withdrawal from my open account just because I don’t have an RBC bank account is an outrage. Plus I could only add money to the accounts by mailing a cheque – no electronic transfer unless you have an RBC bank account.
The other CC – no problem!
I have 2 accounts with Questrade which I use for daytrading and short term trading. I would say Questrade is good for the person who is atleast Semi-Pro and knows in-outs of trading. In past 4 years with Questrade, I have called them few times for assistance, never received good quality customer service, last time CSR was rude, very impatient and in rush to get me off the phone.
Reason for me still sticking with Questrade is I save lots of money in commission and order execution is fast. If they can improve thier Customer Service, I dont think many ppl have problem moving to Questrade.
My $ 0.02….Happy Trading !!!
My experience with Questrade so far has been OK. My wife and I now have 5 accounts with them. When I opened my TFSA there was a bit of back and forth and it took more time and customer assistance than it should, but nonetheless I am quite satisfied with the price/quality ratio. Their online chat assistance is quite effective (I’ve probably used it 10 times since I’m with them).
For those who reported phantom positions in their accounts, make sure you validate with customer assistance. I thought I had that problem once, but its actually a trick Questrade uses to allow us to hold USD in registered accounts.
Have an account at Questrade and RBC direct. Can I get the transfer fee covered as I am an existing customer?
Disinformational adtrash! Interactive Brokers (yes, that’s the name, folks) commissions are half of Questrade’s,their trading tools way better, execution faster, more secure, and their customer service is right on. They cater to traders, and don’t do Registered accounts, but if trading is what you do, they’re the one. Of course this sounds like a plug, but at least it’s accurate.
Hi Suses – I’ll send you an email tonight with a contact at Questrade. You’ll have to discuss it with them to see if you can get a partial or full reimbursement of the transfer fee.
Hey!!! Seen the Edge account at CIBC? I trade for 6.95$ (first 50 @7.90$ each) and trade the same stock, same side, the same day as many times as I want and get only one charge.
How does this compare?
The service is excellent and fast, by the way… and you get the Gold Tracker after 3 months and ??? trades (30 I think) (Globe Gold Investor – short version)
I see no one mentions the ECN fee one can be hit with in addition to the trade commission. The ECN fee can be rather expensive. I have seen trade costs be in the mid to high double digits.The ECN fee is a fee they pass on and one does not know if there will be one until after the trade is executed.
The ECN fee is determined by whether or not an transaction adds liquiidty or removes liquidity. A sell or buy does not simply determine this.
I agree the original post comes across like a commercial for Questrade. That may not be its intention but that is how it is received.
Have a great day.
ECN Fee. I dont’ see these fees at CIBC Edge. 6.95$ at that’s it…
My apologies. I reread your comment that you will be compensated via the use of the code by anyone. So it is clearly stated that it is a commercial.
“CC – I said right in the post that I’m being compensated for anyone who takes advantage of this deal – that’s what the promo code is for.
I will be compensated for the referral if you successfully fund the account. “
When I checked at TDWaterhouse and some of the other big bank brokerkage site they clearly stated they would not pass on or charge the ECN fees.
QuesTrade’s webpage regarding Exchange and ECN fees.
http://www.questrade.com/pricing/exchange_ecn_fees.aspx
TDWaterhouse which I am not associated with nor promoting. I just found their info quickly.
See ECN fees in a table approx. half way down the page. It states free for adding and removing liquidity for on the TSX, TSX-V, NYSE / AMEX.
http://www.tdwaterhouse.ca/activetrader/pricing_and_qualification.jsp
So how is Rob Carrick at the Globe And Mail making a nickel off this site as he has mentioned it and specifically the QuesTrade discussion in his latest Personal Finance Reader column? I brought the ECN issue to his attention approx. 1/2 year ago after reading one of his brokerage ranking reports. He said he might investigate becasue he was not aware. Buyer beware when it come to soemone elses reports.
The last time I checked some of the other very low commssion CDN. brokerages also would pass on the ECN fee. From memory I do not recall which ones.
Hava a great day!
Pooh bear – this post was geared for investors like myself who are non-traders, which I think covers the majority of all investors. Where exactly is the disinformation?
Also what are IB’s fees on a typical trade? I just looked at their commission page and couldn’t understand it. I know they have a $10/month minimum charge.
IB has the best exchange rate available and is definitely geared towards traders. The fact that they don’t offer RRSPs excludes them for consideration for most investors however.
Jack – I’ve never used CIBC but I can tell you that $6.95 is a lot more than Questrade’s $4.95 trade commission.
CIBC “Edge” account charge $395 per year minimum which is $33 per month. For this it looks like you get 50 trades which is a great deal…if you use most of them. I do about 2 trades per month so that’s a horrible deal for me.
You also need to have $10k in a non-reg account and $25k in a registered (rrsp) account or they charge account fees. No such thing at Questrade.
I go for low cost and that’s about all I care about. As long as the trades get done the way I expect then that’s fine with me.
CIBC edge not for the small investor (2 trades per month). At 4 trades per month it becomes closer to 7.90$ per trade (395$ charged in January)
If you trade the same stock a few times a day, it becomes good deal. I am a retired broker and appreciate being able to trade at a reasonable cost. Even if discounted deeply at the conventional broker (125$ per trade), regular brokers are not for the traders. On top of it, I am not allowed to trade electronically. I hesitated to go to CIBC Edge and do not get any special deals as ex Gundy broker.
By the way, I still get some terrific recommendations from my broker at Wood Gundy with only my non-trading accounts but I use the managed account view (2500$ a year or 25$ a trade -100 trades per year included in package) He earns it with still a lot left over for me.
Stan – I’m not sure about ECN fees since I’ve never been charged them at Questrade or RBC Direct. Maybe they only apply to certain types of trades/stocks? Does anyone know this? What does “removing or adding liquidity” mean??
I agree the post reads like an ad but I really do like Questrade and feel that for investors like myself they are the best choice.
I am simply trying to provide some factual informatiom in addition to what has already been provided here so that others can learn what I have learned. An informed investor is a better investor.
I cannot find any info at CIBC Investor Edge probably because they do not pass on the ECN or other fees.
In note #1 see Scotia ITrade’s (formerly ETrade) mention of ECN fees.
https://www.scotiaitrade.com/pages/home/fees1.shtml
I have been charged then at QuesTrade on $16 and $0.17 stock prices.
I have seen others who have paid approx. $40 in total fees on a < $1.00 stock on a trade of ~$4,000.
I find there si a bit to learn on the subject (just what we all needed:):):)
From QuesTrade,
http://www.questrade.com/education/trading_terminology.aspx
Preferred ECN
For all orders select AUTO as the preferred ECN to have the system automatically route your order.
Note: some preferred ECNs are only available on QuestraderPro and QuestraderElite.
AUTO: Orders are executable during market hours (9:30 p.m. to 4 p.m. EST) and in the pre- and post-market*. This is the default preferred ECN and can be used for any order.
Preferred ECN options for US securities
MNGD, POST and LAMP: Orders are executable during market hours only. These are not direct access routes; however, no ECN fees are charged.
ARCA: (Archipelago, owned by NYSE Euronext) Orders are executable during market hours and may execute in the pre- and post-market*. ARCA charges for executions that remove liquidity.
INET: (Instanet, owned by NASDAQ) Orders are executable during market hours and may execute in the pre- and post-market*. INET charges for executions that remove liquidity.
NYSE: (owned by NYSE Euronext) Orders are executable during market hours only. NYSE charges for executions that remove liquidity.
Preferred ECN options for Canadian securities
STSX, TPIK, TPKV, MxV: Smart routers for Canadian securities. Orders are executable during market hours and stock orders may remain executable until 5 p.m. EST*. Exchange or ATS (alternative trading system) fees apply if the order removes liquidity.
* For information on executing orders outside of market hours, please see the section titled: trading in the pre- and post-market.
For information on exchange, ECN and ATS charges please see:
http://www.questrade.com/pricing/exchange_ecn_fees.aspx
———————————————————————-
What orders remove liquidity, and how can I avoid ECN fees?
Exchanges and Electronic Communication Networks (ECNs) charge a fee to all market participants who use their networks, although participants who add liquidity are in some instances exempt. In addition, some exchanges add a surcharge for professional subscribers. In both cases, these charges are levied by the exchange, not by Questrade.
The other strategy for avoiding ECN fees is to send your order to market as MNGD – or managed. Please note that a managed order is handled by a market maker and does NOT go to the market as direct access.
As a side note, as I understand it, there is no free place to park cash within QuesTrade where it can earn something. One can pay $9.99 to buy and sell a MoneyMarket fund. The big brokerages charge $0.00 for their MM.
That’s it for me.
Have a great day and may we all make a little money (or goobs of it).