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IBKR lite

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  • Apr 26th, 2022 5:00 pm
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Deal Fanatic
Mar 24, 2008
6278 posts
2753 upvotes
Toronto
rapashoo wrote: Canukistan hahaha I'll be damned if we see commission free trade here. I'll be damned.
Wealthsimple trade... Been with them for non-reg accounts for a while now. $0 commissions and $0 transfer out. I will be moving my TFSA at the end of year to them also. Once they support RRSP transfers, I'll move to them completely, no issues.

BTW, you ARE damned now!
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Deal Guru
Aug 17, 2008
10990 posts
13540 upvotes
dlhunter wrote: AMTD and ETFC are down 20%
Charles Schwab’s move to axe online trading fees weighs on TD

https://www.theglobeandmail.com/investi ... on-trades/

“Ameritrade is more dependent on trading commissions than some competitors are: they represented 23 per cent of its revenue so far this year compared with just 7 per cent from Charles Schwab, according to National Bank Financial.


Gabriel Dechaine, an analyst at National Bank, noted that TD Ameritrade’s accounts for about 10 per cent of TD Bank’s total consolidated profit. Therefore, the analyst said, for every 10 per cent reduction to TD Ameritrade’s profit forecasts, the bank’s forecasts should decline by 1 per cent.”

Adding Bloomberg article;

https://www.bloomberg.com/amp/news/arti ... l-it-built

“ Schwab estimated it could lose up to $400 million in revenue a year from its zero-fee offering. Wong said that in the current rate environment, the firm would need roughly $20 billion or more in new deposits to offset that loss. Currently, over half of Schwab’s net revenue comes from interest earned on its assets. The firm, which oversaw $3.72 trillion as of Aug. 31, took in almost $20 billion in net new assets that month.”

“Late Tuesday, TD Ameritrade said it would match Schwab’s no-fee trading offer at a cost of as much as $240 million a quarter, or roughly 16% of its net revenue.”
Last edited by MrMom on Oct 1st, 2019 11:07 pm, edited 1 time in total.
Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience
Deal Expert
User avatar
Apr 21, 2004
58648 posts
24637 upvotes
notenoughsleep wrote: So how are these companies making money if charging zero commission? Other products/services they hope you use?
securities lending if we don't put a limit sell order way above the current trading price :)
Deal Fanatic
Mar 24, 2008
6278 posts
2753 upvotes
Toronto
notenoughsleep wrote: So how are these companies making money if charging zero commission? Other products/services they hope you use?
Who cares as long as you pay $0 for trades?
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Deal Addict
Mar 22, 2010
4133 posts
2172 upvotes
ksgill wrote: Wealthsimple trade... Been with them for non-reg accounts for a while now. $0 commissions and $0 transfer out. I will be moving my TFSA at the end of year to them also. Once they support RRSP transfers, I'll move to them completely, no issues.

BTW, you ARE damned now!
Nooo hahaha of course I know WS. You can't choose your own stock. Folks over there in US they have $0 commission platform for flat out stock trading and possibly now free option trading.
Deal Guru
Aug 17, 2008
10990 posts
13540 upvotes
Who cares as long as you pay $0 for trades?
The Facebook answer Winking Face
Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience
Deal Fanatic
Mar 24, 2008
6278 posts
2753 upvotes
Toronto
rapashoo wrote: Nooo hahaha of course I know WS. You can't choose your own stock. Folks over there in US they have $0 commission platform for flat out stock trading and possibly now free option trading.
Wealth Simple Trade - you can buy stocks and ETFs of your own choosing.
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Deal Fanatic
Mar 24, 2008
6278 posts
2753 upvotes
Toronto
MrMom wrote: The Facebook answer Winking Face
CIPF covers up to a million, they can lend out all my shares if they like. As long as I get my money when I sell, it's all good. Grinning Face With Smiling Eyes
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Deal Addict
Jun 28, 2018
1031 posts
789 upvotes
Toronto
ksgill wrote: CIPF covers up to a million, they can lend out all my shares if they like. As long as I get my money when I sell, it's all good. Grinning Face With Smiling Eyes
It's not just securities lending, but if they take the opposite side of a trade and profit on your decline.

Your one account maybe not a big movement, but if thousands of accounts....
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:
Deal Addict
Mar 22, 2010
4133 posts
2172 upvotes
ksgill wrote: Wealth Simple Trade - you can buy stocks and ETFs of your own choosing.
You know what I remember they were asking me to be on beta tester and I forgot about it. Looks like they established solid platform in non-registered and TFSA accounts. Will definitely check out.

All we need now is $0 option trade lol
Deal Guru
Aug 17, 2008
10990 posts
13540 upvotes
Sec lending helps and internalizing trades helps keep exchange fees down, but the answer behind all the zero commission and low asset management fees is Scale. See Schwab’s advantage above.

An ok story that begins with an interview of a Prof who did a “day trading” study, but transitions to would no commission execution fees hurt bank earnings.

“Will free stock trading ever come to Canada? It may be better if it doesn’t”

https://www.theglobeandmail.com/investi ... to-canada/

Excerpt;

Robert Sedran, an analyst at CIBC World Markets, estimated that fees generated by TD’s Canadian discount brokerage, TD Waterhouse, are about 1.5 per cent of the bank’s total revenue. At TD Ameritrade, by comparison, fees accounted for about 23 per cent of the brokerage’s revenue so far this year, according to National Bank Financial.


This suggests that the banks could cut their commissions without causing too much harm to their share prices, in contrast to the carnage experienced by some U.S. online brokerages as they adapt to competitive pressure.

Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience
Deal Guru
Aug 17, 2008
10990 posts
13540 upvotes
WSJ has a breakdown of Schwabs profit generation.

https://www.wsj.com/articles/your-stock ... -in-chains

“Trading commissions are dying, and that’s good. Unfortunately, your cash isn’t doing so well either.“
Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience
Newbie
Apr 17, 2015
54 posts
62 upvotes
Edmonton, AB
The average retail investor doesn't care about whether they pay an extra few cents a share, they just like not paying any commission.

The only commission model that will remain will be Interactive Brokers Pro which is geared towards more sophisticated traders for whom better execution more than offsets the commission.

I think Schwab and TD Ameritrade are in real trouble because their margin loan interest is an absolute rip-off and now IBKR has forced them to drop their commissions.why would you pay 10% to borrow from TD Ameritrade when you can pay 3.65% to borrow from IBKR?
Newbie
Apr 17, 2015
54 posts
62 upvotes
Edmonton, AB
rapashoo wrote: Canada's not getting the love on these wonderful platforms.

I am waiting M1 Finance to come into Canada for god knows how long.
Comparing IBKR to M1 is like comparing the F-22 to the Sopwith Camel.
Deal Addict
Aug 16, 2015
1201 posts
516 upvotes
I've been researching and listening to some experts talk on the subject of commission free trading. There is no downside whatsoever aside from some people might go crazy and over trade now.

MM and banks already know flows and will trade against retail position. Commission free makes no difference and doesn't change that dynamic.

Brokerages basically just ate it. Adios. It can't come to Canada fast enough.
Deal Addict
Mar 22, 2010
4133 posts
2172 upvotes
superX wrote: Comparing IBKR to M1 is like comparing the F-22 to the Sopwith Camel.
Nono.... I am not comparing the two.
Deal Fanatic
Jun 27, 2007
5507 posts
1956 upvotes
Interactive Brokers updated canadian app with new logo - IBKR Pro. So, maybe Canada will see IBKR lite soon?
It's easy to grin when your ship comes in and you've got the stock market beat.
But the man worthwhile is the man who can smile when his shorts are too tight in the seat 😃
In Fed We Trust - Make ES Limit Down Great Again!
Sr. Member
Feb 21, 2010
886 posts
263 upvotes
Scarborough
Yes that’s the hope that lite gets launched in Canada. Meanwhile did you have issues logging in thru mobile today? Mine took 2-3 attempts for 20-30 seconds each time during trading hours today

dlhunter wrote: Interactive Brokers updated canadian app with new logo - IBKR Pro. So, maybe Canada will see IBKR lite soon?
Deal Guru
Aug 17, 2008
10990 posts
13540 upvotes
romeocanada wrote: Yes that’s the hope that lite gets launched in Canada. Meanwhile did you have issues logging in thru mobile today? Mine took 2-3 attempts for 20-30 seconds each time during trading hours today
No issues when I used it from ~12:30 to 3:30 ET on LTE.
Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience
Deal Fanatic
Jun 27, 2007
5507 posts
1956 upvotes
romeocanada wrote: Yes that’s the hope that lite gets launched in Canada. Meanwhile did you have issues logging in thru mobile today? Mine took 2-3 attempts for 20-30 seconds each time during trading hours today
it happens occasionally when you switch from WiFi to LTE. IB tracks active sessions by IP, so when IP changes, they are slow to clean the cache. IMO.

big question would be - can one combine IBKR Pro with Lite?
eg - Lite for TFSA/RRSP and Pro for margin
It's easy to grin when your ship comes in and you've got the stock market beat.
But the man worthwhile is the man who can smile when his shorts are too tight in the seat 😃
In Fed We Trust - Make ES Limit Down Great Again!

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