Investing

Locked: National Bank Direct Brokerage - $0 Commissions FOR ALL USERS - Stock/ETF Trades

  • Last Updated:
  • Aug 26th, 2021 3:50 pm
Newbie
May 31, 2010
61 posts
34 upvotes
yeah, IB is quite expensive for cheaper/penny stock tradings. and last time i checked, IB charges everyone for level 2 quotes. Really wanted to try it out but that's the two factors turning me away.
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Aug 21, 2008
1621 posts
992 upvotes
Hamilton
DigOffers wrote: NB is not bad at all. I use TD, WS and NB.
TD’s fes are just rip off and only using them because of thinkorswim and LIRA.
NB fees are really good and their service is comparable with TD. At times their platform is screwed but that’s the case with TD too.
WS had a very basic platform, no option trading, at least not for me.
At times I get motivated to try IB but haven’t tried yet.
5+ years IB client. Their platforms:
Both desktop and web, are not that user friendly and not for novice investors.
Expect a lot mistakes and they would not care as it is self directed, i.e. you are on your own.
They charge fees for many items that might be included as complimentary on other platforms.
Their option spreads are mostly expensive compare to other market makers and executions tend to slow if you do not want to accept the higher commission/fee routing.
Margins are not great and expect less excessive fund compare to other platforms

In one case I placed an order for a say 98-100 spread, the max risk or P/L is $2, and in a typo I placed a LIMIT order at $2.11 instead of $1.21. Guess what, it executed at $2.11, i.e. market maker IBKR made a huge profit and when I inquire how is it possible to price a spread more than the MAX risk/spread, they simply ignored and took the profit.

I'm glad a major Canadian bank NB offers a $0.99 commission. Still our friends in US, and some other countries, enjoy commission FREE trades while same brokerage firms including TD, IB, etc ignores their Canadian clients. I'll run a test drive if they offer paper trading to compare. Kudos to NB for FREE ETF trades and love the competition.

PS: $0.99 commission is for STOCKS trades, not for options (Options $0.95 + $1.25 per contract (min. $8.20).

EDIT: Stocks $0.95 per trade not $0.99. OP, please update the title.
Last edited by HamsiBrain on Jul 15th, 2020 7:30 am, edited 1 time in total.
Sr. Member
User avatar
Dec 28, 2010
650 posts
298 upvotes
HamsiBrain wrote:
They charge fees for many items that might be included as complimentary on other platforms.

... and when I inquire how is it possible to price a spread more than the MAX risk/spread, they simply ignored and took the profit.

I'm glad a major Canadian bank NB offers a $0.99 commission. Still our friends in US, and some other countries, enjoy commission FREE trades while same brokerage firms including TD, IB, etc ignores their Canadian clients.

Yes this is so true that is why I don't like IB but for more than the occasional trade IB has been the better one. I remember Questrade would charge an arm and a leg from their hidden fees and I switched to IB.

I did go over NB yesterday and I do believe they are a good competitor and I might try it out. You only know what's in the apple pie when you eat it. They always look good on the outside. I find IB's customer service is horrible and wonder how NB is going to perform.
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Aug 21, 2008
1621 posts
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Hamilton
I don't get it why people down vote this? This is the lowest, about 5 X lower than any Canadian bank offer, including TD which offer commission FREE trades in US via their brokerage subsidy!
Thank you OP.
Jr. Member
Sep 17, 2009
137 posts
50 upvotes
Edmonton
VESTEGAARD wrote: wonder how NB is going to perform.
Their customer service was not too bad. Called them occasionally and also submitted tickets. Their reply were mostly on time and helpful.
Jr. Member
May 22, 2011
109 posts
105 upvotes
HamsiBrain wrote: Their option spreads are mostly expensive compare to other market makers and executions tend to slow if you do not want to accept the higher commission/fee routing.
IB gives you direct access to the markets so "their" prices are no better or worse than anyone else's...
HamsiBrain wrote: In one case I placed an order for a say 98-100 spread, the max risk or P/L is $2, and in a typo I placed a LIMIT order at $2.11 instead of $1.21. Guess what, it executed at $2.11, i.e. market maker IBKR made a huge profit and when I inquire how is it possible to price a spread more than the MAX risk/spread, they simply ignored and took the profit.
IB doesn't do market making as of 2017, nor do they operate an options ECN. Your order can only be filled on the public markets. You can go to your trade confirmation to see which market you traded on. Without more details, I would have to guess that you traded through the best offer.
Jr. Member
May 22, 2011
109 posts
105 upvotes
Another option is to create an LLC in the States ($50 in NM, no annual fee or reporting requirement, $35/year for registered agent, fill out some IRS forms every year) and open a Fidelity account.
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Aug 21, 2008
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Hamilton
Catapult wrote: IB gives you direct access to the markets so "their" prices are no better or worse than anyone else's...


IB doesn't do market making as of 2017, nor do they operate an options ECN. Your order can only be filled on the public markets. You can go to your trade confirmation to see which market you traded on. Without more details, I would have to guess that you traded through the best offer.
Thank you however the main point of my case is how is it even possible to pay a spread more than its value not the market it was routed, and not commissions and fees on different markets/routing. There should be a cap for any contract and that contract price should not be greater than the differences of underlying price pairs. Should I consider myself lucky since I did not have to pay $211 or more as hypothetically possible? I don't recall any groceries taking more than the ticket price when you overpay and I thought brokerage firms should have better ethics than average Joe.
Jr. Member
May 22, 2011
109 posts
105 upvotes
HamsiBrain wrote: Thank you however the main point of my case is how is it even possible to pay a spread more than its value not the market it was routed, and not commissions and fees on different markets/routing. There should be a cap for any contract and that contract price should not be greater than the differences of underlying price pairs. Should I consider myself lucky since I did not have to pay $211 or more as hypothetically possible? I don't recall any groceries taking more than the ticket price when you overpay and I thought brokerage firms should have better ethics than average Joe.
It's called slippage and it's very unlikely that it was IB's fault. https://en.wikipedia.org/wiki/Slippage_(finance)

Did you have real-time market data for options?

Show me the execution report and I can tell you for sure. It could be that there was only one offer for $2, and the next offer was for $2.22, so if you bought two then it would average out to $2.11.
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Dec 25, 2018
153 posts
72 upvotes
Mississauga
Catapult wrote: Another option is to create an LLC in the States ($50 in NM, no annual fee or reporting requirement, $35/year for registered agent, fill out some IRS forms every year) and open a Fidelity account.
How does it work? Can you please explain a little more
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Jul 6, 2019
1033 posts
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I need to learn how to do some investing and stuff related to this thread 🤣🤣
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Dec 25, 2018
153 posts
72 upvotes
Mississauga
0.95/trade commission is for active trader and looks like to be an active trader, someone needs to pay regular commission(6.95X100) for a quarter. Am I understanding correctly?

Excerpt from nbcdb site (https://nbdb.ca/pricing.html#tarification)
"To benefit from active investor pricing, one hundred (100) or more transactions in shares, ETFs or commission options must have been made under the same account root in the previous three (3) months (quarter). You must also receive all your documents by electronic delivery. When these criteria are met, the active investor rate is effective on the first business day of the following month. This criterion must be met on the 1st day of each month to continue to benefit from the commission schedule for active investors. This pricing does not apply to transactions made through a representative, although they are considered in calculating the number of transactions made in the same quarter. Legal entity accounts are eligible for active investor pricing but cannot be combined with an individual account for transaction calculation purposes."
Wallet unsafe 😁
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Sep 1, 2005
18609 posts
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Markham
pewpewpew wrote: is IB CDIC insured?
CDIC only refers to banks and GIC's not brokerages.

CIPF - Cdn Investor Protection Fund referes to brokerages.
We're all bozos on the bus until we find a way to express ourselves...

Failure is always an option...just not the preferred one!
Jr. Member
May 22, 2011
109 posts
105 upvotes
coolgk wrote: How does it work? Can you please explain a little more
The LLC is a pass-through vehicle, meaning the LLC does not pay taxes; the untaxed profits are paid to the shareholder(s) like in a partnership.*

*I haven't actually done this myself; there are Canadian tax implications that I haven't looked into.

Caveat: You have to withhold and remit the 15% dividend withholding tax yourself. You can not decide when to take profits to defer taxes, i.e., you are taxed as soon as you receive a dividend or realize a gain even if you do not withdraw from the LLC. So if you have a DRIP, you still need to pay the withholding tax.


  1. You need a registered agent (alternatively, a willing friend/family member who lives in the state). First result I found on Google is $35/year: https://www.newmexicoregisteredagent.com/
  2. Create an LLC for $50: https://www.sos.state.nm.us/business-se ... ic-nm-llc/
  3. You need to file returns for the LLC with the IRS every year: https://oandgaccounting.com/foreign-own ... e-to-file/

You now have an LLC registered in New Mexico, which you can use to open US business bank and brokerage accounts.

There are a few other states with cheap LLC fees you could also use; different states have different requirements, but they're all pretty much the same from a taxation POV for this purpose.
Deal Addict
Nov 11, 2006
1350 posts
877 upvotes
coolgk wrote: 0.95/trade commission is for active trader and looks like to be an active trader, someone needs to pay regular commission(6.95X100) for a quarter. Am I understanding correctly?

Excerpt from nbcdb site (https://nbdb.ca/pricing.html#tarification)
"To benefit from active investor pricing, one hundred (100) or more transactions in shares, ETFs or commission options must have been made under the same account root in the previous three (3) months (quarter). You must also receive all your documents by electronic delivery. When these criteria are met, the active investor rate is effective on the first business day of the following month. This criterion must be met on the 1st day of each month to continue to benefit from the commission schedule for active investors. This pricing does not apply to transactions made through a representative, although they are considered in calculating the number of transactions made in the same quarter. Legal entity accounts are eligible for active investor pricing but cannot be combined with an individual account for transaction calculation purposes."
That's correct. If you are currently an "active trader" at another firm, they will code you immediately as an active trader with NB. However, you need to provide proof.
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Dec 25, 2018
153 posts
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Mississauga
CanRulez wrote: That's correct. If you are currently an "active trader" at another firm, they will code you immediately as an active trader with NB. However, you need to provide proof.
Thank you for the confirmation. I am seriously thinking to move to NBC. Currently using Questrade. Any ideas how long it takes to move my tfsa and rrsp account to move to nbc? Also do they have paper trading account so that I can get a feel of there platform?
Deal Addict
Nov 11, 2006
1350 posts
877 upvotes
coolgk wrote: Thank you for the confirmation. I am seriously thinking to move to NBC. Currently using Questrade. Any ideas how long it takes to move my tfsa and rrsp account to move to nbc? Also do they have paper trading account so that I can get a feel of there platform?
How many monthly trades do you do with Questrade now?
Jr. Member
Sep 11, 2017
111 posts
107 upvotes
Serious question,

I've recently read the wealthy barber and Rich Dad Poor Dad, subscribed to The Canadian Investor Podcast, but I'm still unsure about the best place, for 2020, in our current climate, to learn how to start investing. I understand the ideas, but not how or where to start. I'm someone who has only the most basic experience with financial management, still needs to learn terminology and where to apply it, and step by step methods. Does anyone have any suggestions? Really appreciate any advice or links.

Edit: even a beginner-friendly forum would be helpful!

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