Category Archives: InvestorLine

Online Brokerage Price Wars Spell Savings for Investors

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It’s been an interesting two months for investors trying to pick an online brokerage. RBC Direct Investing decided to start a price war and it soon heated up – the best thing is that the fighting has resulted in savings for investors.

RBC Direct Investing Drops the Trading Fee for All Customers

RBC Direct Investing was the first company to make a major price change recently. This January, they reduced the cost to execute a trade to $9.95 for all of its clients, regardless of their account balances. So if one of their clients wants to buy 57 shares of BCE it will cost them just $9.95 plus the current trading price for 57 BCE shares.

TD (Waterhouse) Direct Investing Follows Suit

The next to drop its fee to $9.95 for all customers was TD Direct Investing. They changed their fees in February.

BMO InvestorLine Folds

InvestorLine has now also dropped its fee to $9.95.

Scotia iTrade and CIBC Investor’s Edge Are Still Studying Their Hands

As of today, February 11, 2014, iTrade and Investor’s Edge still require a minimum balance or a certain activity level or other related assets for their clients to qualify for $9.95 trades.

I give it about another week before they see the way the cards are falling.

Warning! Check for Minimum Balance and Inactivity Annual Fees

Don’t let the price per trade be the only factor in your decision to pick a brokerage. Look at all of the costs, including any fees for having a small balance or for not being an hyper-active trader.

I discuss the required minimum RRSP balances for most brokerages in Questrade Has the Lowest Annual Fee RRSP Brokerage Account with No Minimum Balance: Or Does It? but you should always double check for changes before opening an account.

Discount Online Brokerages Vs Big Bank Online Brokerages

There are a variety of other brokerages available to Canadians some of which offer trading fees which are even lower than $9.95. Their offerings vary considerably so you should check the details carefully. It’s also a good idea to look for reviews of their services and for any complaints before enrolling. (That holds true for all brokerages, independent or bank-affiliated.)

What Are Some Other Key Cost Differences Between Online Brokerages?

  • RBC Direct Investing has a good RRSP offer: If you sign up for pre-authorized contributions of $100 or more per month, the fee for having a low balance in your RRSP is waived.
  • CIBC Investor’s Edge has a no annual fee, no minimum, RESP account.
  • RBC Direct Investing and BMO InvestorLine let you have a USD side to your RRSP for no fee.
    CIBC Investor’s Edge and TD (Waterhouse) Direct Investing do not have a USD side to their RRSPs.
    Scotia iTrade charges a fee for a USD side to their RRSPs.

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Are you pleased to see the costs to trade stocks and ETFs dropping for low asset investors at the “Big Bank” online brokerages? Please share your views with a comment.

How Do I Get $9.95 Trades for my RESP Account at BMO InvestorLine

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So I opened a RESP account at BMO InvestorLine. We already had other accounts there with enough in them to qualify them for $9.95 trades. (At InvestorLine you need to have at least $50 000 in your account or in your accounts in total.) Although I added the account to my User ID and requested it be included in the calculations for the 5 Star Trader program in the future, nothing happened in the next few days to give me the Flat Trading Fee rate. So I wrote InvestorLine using the MyLink Secure email service. Here’s how they said I can get the $9.95 trades for my RESP account.

BMO InvestorLine Better Beware RBC Direct Investing and TD Direct Investing Are Making a Better Offer!

InvestorLine had better perk up its ears and pay attention. In the past few weeks, in early 2014, both RBC Direct Investing and TD (Waterhouse) Direct Investing have changed their rules to offer every customer $9.95 trades regardless of their account balance. For now, InvestorLine still requires a balance of at least $50 000, which can be achieved by grouping accounts under one User ID, or by meeting certain trading quotas.

What Did InvestorLine Say about $9.95 Trades When I asked by MyLink Secure Email

The BMO InvestorLine MyLink Advisor responded: “I have sent a request to enroll your new RESP account into Flat fee pricing. Flat fee evaluation takes place at the end of each month and any inclusion is done manually. It would be enrolled within 2 business days.”

I expect that means that the account will not be enrolled until 2 business days after the end of January. I’m not certain, though, so I’ll keep an eye on the account and see if it happens before month end.

When Did I Actually Get the $9.95 Trades at InvestorLine?

Aha!

The morning after the email arrived via MyLink telling me that it will be enrolled within 2 business days, it was enrolled! So I guess it means if you don’t phone or email InvestorLine, the automated process won’t pick up the account until the end of the month. But if you phone or email, you should be able to get them to set up the $9.95 trades in two business days.

Of course I don’t think I actually want to buy any ETFs or stocks today, so it’s almost irrelevant, but it’s still good to know.

How Long Did It Take for MyLink To Respond to My Request?

Unfortunately, MyLink isn’t responding as quickly as it used to. I sent my question on January 23, and only received a reply on January 27 (although it says it was emailed on January 26. If so, it must have been after hours, ET.)

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To get $9.95 trades in the “old days” at RBC Direct Investing, I had to phone them once the required minimum balance was in my account. Now all of their customers get that rate immediately. BMO InvestorLine seems stuck with a month end system. What does your brokerage do? Do you have to phone or email to get a better rate for trades? Please share your experiences with a comment.