Questrade discount brokerage in Canada has a new referral program where you get $50 worth of trades if you are referred by another customer. The basic program has been around for a while but they have improved the referral process.
Lowest Stock Trading Commissions!
You can see what I wrote a while ago about Questrade here.
Why I like using Questrade for trading stocks and exchange traded funds
I use Questrade for my non-registered leveraged account as well my rrsp and I’m quite happy with them. My attitude about brokers is that their service is a commodity in that they all do the same thing – they convert your money into shares and vice-versa so the only variable as far as I’m concerned is the cost. As a low cost investor I want the lowest fees and for my situation, Questrade has the lowest fees.
Questrade also deals with mutual funds -they will rebate up to 1% of the management fee back to the investor. Read more about the Questrade mutual fund rebate.
The minimum to open an account is $1000. The minimum to keep an account active is only $250.
My suggestions on which discount broker to use:
If you are looking to do a lot of rrsp “wash trades” then Questrade and TDW are your best bet. A wash trade is when you sell a US$ security in your rrsp, it gets converted to CDN$ (and you pay a currency conversion on it), and then you buy a US$ security and you pay the currency conversion again. They do not charge for the conversions in this case.
If you are looking for a discount broker that offers a lot of extras like fancy graphs and research then you should stick with the big banks. But consider that for $29/trade (if you don’t have $100k) you are paying a $24 premium per trade for that extra research, bells, whistles etc. Even if you only do 10 trades per year that’s $240 per year. There is a lot of research available for free on the internet and $240 will buy quite a bit of the paid research (or a lot of beer).
If you are looking for more information on mutual funds, index funds and ETFs then sign up for a Morningstar free account. Morningstar is the industry leader in investment information.
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