Investing

US brokerage race to the bottom

  • Last Updated:
  • Oct 30th, 2019 4:08 am
[OP]
Sr. Member
Aug 16, 2015
802 posts
290 upvotes

US brokerage race to the bottom

Wow looks like Americans are getting commission free trades on everything. Etrade tdameri among others have all joined the party.

What the heck do canadians get or will we ever get something like that?

Still pay 6.95 like a chump to cibc over here.

With free stock trading day trading could actually be viable.
15 replies
Deal Addict
Jul 13, 2007
1052 posts
555 upvotes
Toronto
We still pay the Canadian tax. But free healthcare, right? Even though US governments pay more than Canadian governments on health care per person.
[OP]
Sr. Member
Aug 16, 2015
802 posts
290 upvotes
I'm not really looking for this to turn into a political debate.

But lower commissions would be nice. Who is everyone using in Canada these days and how much are they paying?

I'm also wondering how much interest people are getting on cash balances sitting in direct invest accounts?
Sr. Member
Jun 28, 2018
911 posts
646 upvotes
Toronto
kilburn305 wrote: I'm not really looking for this to turn into a political debate.

But lower commissions would be nice. Who is everyone using in Canada these days and how much are they paying?

I'm also wondering how much interest people are getting on cash balances sitting in direct invest accounts?
I use IBKR. Unfortunately, they have not introduced their new IBKR Lite to any countries outside of the US.

I don't know/don't think any Canadian brokerages offer significant - or any - returns on cash balances. However, IBKR does if you meet their thresholds. https://www.interactivebrokers.com/en/index.php?f=1595

Questrade does https://www.questrade.com/pricing/self- ... t#interest, but really they are Prime Rate-4.50%, so effectively, unless the Prime Rate spikes above 4.50% then no.

Alternatively, you could buy High Interest Savings Accounts on the trading platform. There's probably a post somewhere on RFD/Reddit about that. Example: https://www1.bmoinvestorline.com/selfDi ... ISA_EN.pdf
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:
[OP]
Sr. Member
Aug 16, 2015
802 posts
290 upvotes
Who is using wealth simple? I would dump cibc in a heartbeat for free trades.
[OP]
Sr. Member
Aug 16, 2015
802 posts
290 upvotes
Hm wealth simple is only on your phone for some stupid reason. IDK sounds a bit sketchy to me. Hopefully someone else steps up soon with no commissions.
Deal Expert
User avatar
Oct 26, 2003
35135 posts
4309 upvotes
Winnipeg
questtrade charge about $6 for trade, should people move from qt to wealth simple?
Sr. Member
Jun 2, 2017
685 posts
327 upvotes
kilburn305 wrote: Wow looks like Americans are getting commission free trades on everything. Etrade tdameri among others have all joined the party.

What the heck do canadians get or will we ever get something like that?

Still pay 6.95 like a chump to cibc over here.

With free stock trading day trading could actually be viable.
Better then TD (Canada) and the 9.99
Sr. Member
User avatar
Feb 25, 2018
567 posts
213 upvotes
They sell your trade info as you make the trade to automated firms, that is how they make money.
Deal Addict
Mar 22, 2010
3028 posts
898 upvotes
DaveVentura wrote: They sell your trade info as you make the trade to automated firms, that is how they make money.
lol good story but not proven theory.

On paper, brokers are claiming that they make money on return on clients' deposits and margin fees.

"How Robinhood Makes Money"
Newbie
Sep 14, 2017
67 posts
55 upvotes
rapashoo wrote: lol good story but not proven theory.

On paper, brokers are claiming that they make money on return on clients' deposits and margin fees.

"How Robinhood Makes Money"
You can lol all you want, it it in their disclosures with the SEC. Even IB does it, but not as much as the smaller houses.
[OP]
Sr. Member
Aug 16, 2015
802 posts
290 upvotes
DaveVentura wrote: They sell your trade info as you make the trade to automated firms, that is how they make money.
I swear all the banks have all of everyone positioning info and are trading against the majority most of the time anyways.
Newbie
Apr 17, 2015
48 posts
53 upvotes
Edmonton, AB
IB does not do that except with their "Lite" platform. IB are very upfront about it.
Newbie
Apr 17, 2015
48 posts
53 upvotes
Edmonton, AB
I don't support zero commission. I don't expect to trade for free, don't want to pay a hidden fee built into the price I buy or sell at, and I'm not interested in paying more in margin interest so that people with $2000 accounts (or $2,000,000 accounts) can get free trades.
Banned
User avatar
May 21, 2019
199 posts
155 upvotes
And you think CIBC and other brokerages dont sell the trade info ?
DaveVentura wrote: They sell your trade info as you make the trade to automated firms, that is how they make money.

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