Investing

New to trading, low income, low investiment

  • Last Updated:
  • Mar 22nd, 2017 2:11 pm
[OP]
Newbie
Jul 16, 2012
12 posts
4 upvotes
PUSLINCH

New to trading, low income, low investiment

Hi all!
Sorry if this isn't the correct place to post this. I have been on RFD for a while now but have never really used the threads. I am looking for advice on online trading.
Here are a few of the things I am looking for (in no particular order):
Looking to invest $500-$1500 initial deposit to an online broker
Must have overall cheap trades as I don't know how often I will be trading
I am new to investing, however I have a very (and I mean very) limited knowledge of stocks, bonds, ETF, Forex ect...
I am looking for a site with plenty of information (with a limited accounting background, I know how to read a basic statement sheet) so I can make informed desisions, and track my progess

I want to stay away from mutual funds through my bank, as i wanted to build knowledge of trading myself.

Any and all information/ threads/ replies will be appreciated!
Thanks!
20 replies
Deal Addict
Nov 22, 2015
2402 posts
1297 upvotes
Read up on Canadian Couch Potato, which previous poster mentioned. +1 for Questrade and their free ETF purchases.

If you have low income and a small amount to invest with, you have really only two options:
1) High risk, speculative stocks, but only if you can afford to lose the full amount.
2) Start small and build up your couch potato portfolio over time.


Good luck :)
Sr. Member
User avatar
Aug 7, 2010
669 posts
119 upvotes
As the previous posters cautioned you, an online broker may not the best route for the moment. With such a small capital to invest be wary of administrative/maintenance fees. Even Questrade requires a minimum of $5000 to have those fees waived.
Newbie
Jun 6, 2014
81 posts
17 upvotes
Toronto, ON
IMO, I would not recommend investing in stocks either. I'd recommend just saving the money as your rainy day fund.
Jr. Member
Nov 4, 2012
154 posts
10 upvotes
Burnaby
I think they will charge you fees if you dont have 25k in the account. So be careful.
Deal Addict
Nov 22, 2015
2402 posts
1297 upvotes
komodor wrote:
Mar 16th, 2017 8:39 pm
As the previous posters cautioned you, an online broker may not the best route for the moment. With such a small capital to invest be wary of administrative/maintenance fees. Even Questrade requires a minimum of $5000 to have those fees waived.
craigslist123 wrote:
Mar 17th, 2017 8:26 pm
I think they will charge you fees if you dont have 25k in the account. So be careful.
TFSA accounts at most brokerages, including Questrade, do not have an annual fee.
Sr. Member
Oct 11, 2010
907 posts
270 upvotes
Charlottetown
superfresh89 wrote:
Mar 17th, 2017 10:13 pm
TFSA accounts at most brokerages, including Questrade, do not have an annual fee.
They may not have an account fee but a lot of them have other fees that could get you such as an inactivity fee if you have under a certain amount of holdings. For example Questrade charges a $24.95/quarter inactivity fee if you have under 5k -- the good thing with them though I believe is that free ETF trades count as activity so as long as you buy a few shares of an etf here or there you won't be charged the inactivity fee
Sr. Member
User avatar
Aug 7, 2010
669 posts
119 upvotes
superfresh89 wrote:
Mar 17th, 2017 10:13 pm
TFSA accounts at most brokerages, including Questrade, do not have an annual fee.
OP was enquiring about online trading in general; he didn't specifically mention TFSA.
Jr. Member
Jun 15, 2013
181 posts
43 upvotes
VANCOUVER
I recommend you use a robo-advisor. Here's a review of many of them:

http://www.moneysense.ca/save/investing ... t-for-you/

Alternatively, Tangerine mutual funds are decent.

As all the other posters said, typical brokerages charge you a big fee when you don't have a minimum amount, probably your best strategy is to put the money in a robo advisor (wealthsimple for example) or a mutual fund, and grow your funds there. Once you accumulated >$20k then move to a brokerage
Deal Expert
User avatar
Oct 26, 2003
27266 posts
1768 upvotes
Winnipeg
jfall wrote:
Mar 16th, 2017 4:14 pm
You don't have enough capital to consider trading IMO. I would look at doing a simple ETF portfolio through Questrade, they offer free ETF purchases so the commissions won't eat in to your gains.

http://canadiancouchpotato.com/model-portfolios-2/
so buy ETF in TSFA holding account at questtrade, up to max allowed by TSFA
Jr. Member
Jan 18, 2014
180 posts
11 upvotes
jfall wrote:
Mar 18th, 2017 11:26 am
They may not have an account fee but a lot of them have other fees that could get you such as an inactivity fee if you have under a certain amount of holdings. For example Questrade charges a $24.95/quarter inactivity fee if you have under 5k -- the good thing with them though I believe is that free ETF trades count as activity so as long as you buy a few shares of an etf here or there you won't be charged the inactivity fee
This.
A few year ago I read that TDWH waived fee for TFSA account (i.e., does not require min balance/investment of 25K or so), so I opened an account and invested 5K.
Then recently I checked my statements they do charge 25 CAD every quarter. Asked them in person, of course they said oh we have a requirement for min balance <20K or 25k> of all types of accounts you have combined, RRSP, TFSA, blah blah.
(my account made/makes good money; still, I swear I read / was told they waived the min investment requirement).

I am thinking about moving that TDWH account of mine to my another bank.
[OP]
Newbie
Jul 16, 2012
12 posts
4 upvotes
PUSLINCH
jfall wrote:
Mar 16th, 2017 4:14 pm
You don't have enough capital to consider trading IMO. I would look at doing a simple ETF portfolio through Questrade, they offer free ETF purchases so the commissions won't eat in to your gains.
http://canadiancouchpotato.com/model-portfolios-2/
This is just a starting sum of money that I want to get into trading with, I obviously don't want to lose it, but at the same time I think earning 1.XX% throught my tangerine TFSA account is pathetic
superfresh89 wrote:
Mar 17th, 2017 10:13 pm
TFSA accounts at most brokerages, including Questrade, do not have an annual fee.
As someone else had mentioned tangerine has its own brokerage, I will look into that at fees at Questrade this week. Once I find out, I will reply and clear the air. In regards to the ETF free trading accounts
eresco wrote:
Mar 18th, 2017 1:32 pm
I recommend you use a robo-advisor. Here's a review of many of them:
http://www.moneysense.ca/save/investing ... t-for-you/
Alternatively, Tangerine mutual funds are decent.
As all the other posters said, typical brokerages charge you a big fee when you don't have a minimum amount, probably your best strategy is to put the money in a robo advisor (wealthsimple for example) or a mutual fund, and grow your funds there. Once you accumulated >$20k then move to a brokerage
What's the expected time frame of turning 1.5k into 20k?
Again, I don't know a whole lot about mutual funds but I assumed the returns were about 5% compounding annually? Can someone clarify this for me ?
[OP]
Newbie
Jul 16, 2012
12 posts
4 upvotes
PUSLINCH
Also, thank you all to have replied on this thread, I very much appreciate it and look forward to doing a bunch of reading on these subjects!
If I took about 500 of the sum and put in a high risk area, what type of trade would that be? stocks? ETF's?
Sr. Member
User avatar
Jun 27, 2007
565 posts
97 upvotes
Toronto
Stewch wrote:
Mar 19th, 2017 11:08 pm
This is just a starting sum of money that I want to get into trading with, I obviously don't want to lose it, but at the same time I think earning 1.XX% throught my tangerine TFSA account is pathetic

As someone else had mentioned tangerine has its own brokerage, I will look into that at fees at Questrade this week. Once I find out, I will reply and clear the air. In regards to the ETF free trading accounts

What's the expected time frame of turning 1.5k into 20k?
Again, I don't know a whole lot about mutual funds but I assumed the returns were about 5% compounding annually? Can someone clarify this for me ?
Hi Stewch,

We’re glad that you’re considering Questrade! If you have any specific questions we can help answer for you, please let us know. We’re here to help.

Top