Investing

National Bank $0 Trading Commission

  • Last Updated:
  • Nov 29th, 2022 4:31 pm
[OP]
Sr. Member
Mar 3, 2015
565 posts
1040 upvotes
King City

National Bank $0 Trading Commission

I heard this from a reliable source that NBDB will be offering commission free trading starting supposedly very soon (I was given a date but I'm not going to post it in case it is wrong). I will update with details once new pricing is live.

This is big as it makes NBDB the first and only big bank brokerage to offer this. The only other brokerage I know of offering commission free trading is Wealthsimple which has a lot of negatives.

EDIT: Another user found a Globe and Mail article which has less information than what I was told but does back my source up: https://www.theglobeandmail.com/investi ... ro-putting
Last edited by TheSheldor on Aug 23rd, 2021 2:00 am, edited 3 times in total.
Thread Summary
Link to NBDB with new terms: https://nbdb.ca/invest.html

Needs a tl;dr snippet [if people can add, it'll be helpful for a newbie and deter repetitive questions]:

Benefits
-No commissions on TSX/NYSE
-No walled garden of ETFs - i.e. can buy HISA ETFs

Caveat Emptor
-$9.99 journaling fee can be a deterrent for Norbert's Gambit
-Anachronistic interface
-No 2FA
-No mobile app
-WTF fees?! if you're over 30 years old and have under 20k in assets with them, there is a $100 fee

==============================
Quick comparison of free trading platforms:

WealthSimple Trade

Pros
  • Good interface (good app)
  • Available on Desktop as well.
  • Instant deposit feature (gets a limited amount of funds deposited instantly for trading).
  • Easy account setup and bank account linking. Really easy compared to National Bank
  • The original free trading company in Canada! (Thank you for breaking the ice)
  • Generally reliable

Cons
  • US Trades convert from CA$ on buys and sells, everything. Alternative is that they have a monthly paid US$ account
  • Less supported accounts (Mainly unregistered, TFSA & RRSP, no RESPs? I don't remember).


National Bank

Pros
  • Like a traditional brokerage account, I know cos I used some Big 5 account as well.
  • More account types
  • Includes US$ separate accounts so repeated currency conversion is avoided (at no cost).
  • Generally reliable
  • A (very small) sign up bonus if you use your friend's link. Almost nothing but something's better than nothing so I thought I would list it.

Cons
  • Setup is a pain! Takes a while, and follow ups were needed to keep sorting things out. But great once it was complete!
  • Instant funding only for National Bank Chequing customers, however there's a loophole to fund via Bill pay if you can wait a day or two. (it just saves a day but better than nothing).


Disnat
Another free trading platform from Desjardin bank.
There was a gotcha but I can't recall. (maybe 10 free/month? I will check later).

Taken from my post: national-bank-0-trading-commission-2484 ... #p36670976
Please update as required.
1941 replies
Deal Addict
Nov 18, 2015
2354 posts
2646 upvotes
na i’ll use wealth simple. fook big banks
Sr. Member
User avatar
Jan 18, 2016
741 posts
831 upvotes
Waterloo
Too good to be true but will keep a watch, current trading charges by banks are ridiculous.
Deal Addict
Apr 4, 2017
2037 posts
654 upvotes
Toronto
So will this take time for approval? Better do this or crypto will takeover.

I moved out of stocks and moved over to crypto that offers 5-7% interest rates.

Better than banks offer shit rate..

Let see what happens.
Member
Oct 29, 2010
441 posts
684 upvotes
Quebec
Using Wealth for TFSA and crypto along with Newton. What "lot of negatives"?
Sr. Member
Dec 24, 2012
957 posts
1386 upvotes
Terrebonne
If it's true, I'm moving out of Questrade in a heartbeat. Free ETF buys is nice but their interface and app are atrocious.
Deal Addict
Jun 1, 2016
1569 posts
4001 upvotes
Big if true.

It's not the fact that this is free, it's the fact that this will push OTHER brokerages to be free.
[OP]
Sr. Member
Mar 3, 2015
565 posts
1040 upvotes
King City
simonchretien wrote: Using Wealth for TFSA and crypto along with Newton. What "lot of negatives"?
  1. Wealthsimple quotes are delayed by 15 mins
  2. Funding is not instant for over $1000. I'm sure most people are funding over $1000 at a time and have to wait 3 business for funds to clear (NBDB is instant funding from a National Bank account)
  3. Forex exchange rates (You can fund directly from a USD account with NBDB instead of having them convert it)
  4. No separate USD currency
  5. Wealthsimple is missing a lot of stocks and have a delay in listing others (eg. I was talking about GGPI with a friend who uses Wealthsimple and they cannot buy it
  6. Wealthsimple does not have the same suite of analysis tools that National Bank offers
  7. No options trading on Wealthsimple
  8. ....Do I need to continue?
Last edited by TheSheldor on Aug 23rd, 2021 1:59 am, edited 1 time in total.
Member
Jan 21, 2012
325 posts
879 upvotes
VANCOUVER
I’ve been using NBDB for the last five years and am a happy customer. I originally went there for the free ETF trades but for better or worse have been trading more stocks lately and this will save me a lot of $$$.

Big if true.

NBDB isn’t perfect. The interface probably isn’t as good as some of the others and they may have less research and analysis tools. But for me, it’s all I need.

The biggest advantages over WealthSimple include access to OTC stocks and ability to open a USD account (~2.5% FX fee to covert but at least it’s one and done, unlike WS with 1.5% on every buy and sell, dividend, etc.).

My experience is that you can usually trade with funds once you’ve initiated the transfer even if it’s not from an NB account. However it does go to an agent for manual approval, so expect a ~5m delay. I’m not sure if they’d approve if it’s a huge amount but I’ve never been rejected when just transferring in a normal paycheque. Margin account also avoids this issue.

Their customer service is good for the most part. I like the online secure message feature.

They really need to introduce two factor authentication though, ASAP. It makes me nervous that they don’t.
Last edited by 32berries on Aug 23rd, 2021 2:01 am, edited 1 time in total.
Member
Aug 29, 2010
424 posts
458 upvotes
karnige wrote: na i’ll use wealth simple. fook big banks
If you ever touch any US stocks, Wealth Simple is literally the most expensive worst platform you can possibly trade..
[OP]
Sr. Member
Mar 3, 2015
565 posts
1040 upvotes
King City
lc39nav wrote: I’ve been using NBDB for the last five years and am a happy customer. I originally went there for the free ETF trades but for better or worse have been trading more stocks lately and this will save me a lot of $$$.

Big if true.
Its funny because they just slashed their fees which landed them several mentions in many surveys and now they're slashing their fees again. I went over to NBDB from Wealthsimple and I've been happy
[OP]
Sr. Member
Mar 3, 2015
565 posts
1040 upvotes
King City
chinook79 wrote: If you ever touch any US stocks, Wealth Simple is literally the most expensive worst platform you can possibly trade..
One of the stupidest things is you cannot keep a separate USD cash account with Wealthsimple which means you get hit with their conversion fees when 1) you buy a usd stock, 2) sell said usd stock, 3) buy a different usd stock with same funds, and so on.
Member
Jul 26, 2015
360 posts
429 upvotes
Vancouver, BC
Somehow their website doesn’t reflect it yet
Jr. Member
Jun 13, 2017
109 posts
253 upvotes
Wealthsimple is 3% round trip for US stocks. Atrocious and people are getting lured in by “0 commission trading” plus the rise of daytrading. They’re even worse than Robinhood.
Deal Addict
User avatar
Oct 16, 2008
4616 posts
2443 upvotes
Why is there even a debate? No reason why you can't use more than one platform.
Banned
Apr 27, 2014
1327 posts
1076 upvotes
Toronto, ON
tsmswifty wrote: Wealthsimple is 3% round trip for US stocks. Atrocious and people are getting lured in by “0 commission trading” plus the rise of daytrading. They’re even worse than Robinhood.
Lol doubt that. In Canada it's illegal to do pay for order flow which is basically just front running trades. This is how the free brokers make their money in the good ol us of a, I wonder how national bank makes their money since no one brokers for free and there's always a catch.
Deal Fanatic
User avatar
Nov 18, 2008
8910 posts
2245 upvotes
Mont-Royal
heard most pople who trade lose more than earn

they think they know how to trade, right?

well thinking doesn't mean positive
"Every marathon you run, your heart scars and you will die faster. If you think running a marathon is fitness, then you know NOTHING ABOUT HEALTH & FITNESS."
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