Virtual Brokers 99 cent Comission

[PunPryde]

So, I stumbled across this today, Virtual Brokers offering a $.01 / share commission with $0.99 min and $9.99 cap.

https://www.virtualbrokers.com/contents.aspx?page_id=100

It seems amazing but too good to be true. What is the catch?

Anybody have experience with them?

Thinking about switching from Questrade to Virtual Brokers. Good idea?

How does Interactive Brokers compare?

[Daf]

With the 150$ transfer fee, isn't that something that makes you second guess transferring?

[Fox2k]

What is the catch?


There is no catch - these days there's no need to be paying $5 per trade. Everybody wants your business so commissions are cheap if you shop around enough. Interactive Brokers has similar commissions for equity trades, I like them better but they don't support registered Canadian accounts i.e. RRSP and TFSA trading accounts like VB does. They also have a higher minimum balance. I didn't know about the $150 transfer fee but assuming that is true, and assuming you're paying $5 right now, then you would make your money back after 40 trades or so. I guess you can decide if it's worth it for you?

For what it's worth, I found the application process with VB to be very pleasant and hassle-free.

[PunPryde]

With the 150$ transfer fee, isn't that something that makes you second guess transferring?

Liquidated all my positions today at Questrade so that's a non-issue at this point.

[PunPryde]

There is no catch - these days there's no need to be paying $5 per trade. Everybody wants your business so commissions are cheap if you shop around enough. Interactive Brokers has similar commissions for equity trades, I like them better but they don't support registered Canadian accounts i.e. RRSP and TFSA trading accounts like VB does. They also have a higher minimum balance. I didn't know about the $150 transfer fee but assuming that is true, and assuming you're paying $5 right now, then you would make your money back after 40 trades or so. I guess you can decide if it's worth it for you?

For what it's worth, I found the application process with VB to be very pleasant and hassle-free.

Thanks for that Fox2k, just what I needed. I think I'll be filling out an application at VB end of the week. I won't be hit with the $150 fee since I liquidated all my positions at Questrade today. The $1 trades will definitely help me because I tend to trade small lots short-term. Long-term stuff is in a TFSA at RBC, which I might switch over to VB too after seeing how it is with my short-term trading!

[Fox2k]

Thanks for that Fox2k, just what I needed. I think I'll be filling out an application at VB end of the week. I won't be hit with the $150 fee since I liquidated all my positions at Questrade today. The $1 trades will definitely help me because I tend to trade small lots short-term. Long-term stuff is in a TFSA at RBC, which I might switch over to VB too after seeing how it is with my short-term trading!

Good luck. If you find their software lacking, I would suggest signing up for a thinkorswim paper account and using that for your analysis. That will give you nearly full access to their software which is extremely powerful. Very good option analytics, chart studies, live quotes, etc.