1. Qtrade Investor
qtrade.ca
Ownership
Privately held
Comments
Qtrade is what you might end up with if you built an online brokerage by adopting the best features and practices of all the competitors in the sector. The net result is a low-cost broker that does things right on matters big and small. Qtrade has lots of stock research, it's much better than most at showing you how your portfolio is doing, it removes any worries about hackers getting into your account with a security guarantee and it allows clients trading U.S. stocks to stash their cash in U.S.-dollar money market funds. Last word: Qtrade's customers seem to love the service.
2. E*Trade Canada
canada.etrade.com
Ownership
E*Trade Financial Corp.
Comments
E*Trade used to fancy itself a service for aggressive traders, and it still puts a lot of importance in this market. But in many ways, E*Trade is the friend of the mainstream investor who only trades occasionally, and even beginners. You can trade for $9.99 flat if you have $50,000 in assets with the firm or make at least 30 trades per quarter; otherwise, the minimum charge is a reasonable $19.99. There are no fees of any kind for registered accounts and all funds are commission-free. Looking for a high-interest savings account to park some cash? E*Trade's Cash Optimizer Investment Account now pays an impressive 4.15 per cent.
3. TD Waterhouse
tdwaterhouse.ca
Ownership
Toronto-Dominion Bank
Comments
After years of clinging to its $29 minimum commission, TD became a cost-cutting leader among bank-owned firms last month by introducing stock trades for a flat $9.99 if you have $100,000 in any number of accounts with the firm (with less you pay $29). Couple this price cut with TD's solid trading platform and you have a strong package. What would make it better is more attention to small things like showing clients how their portfolios are doing. Note: TD's in the minority of brokers that let clients direct cash from U.S. stock trades into U.S.-dollar money market funds without conversion fees..
4. BMO InvestorLine
bmoinvestorline.com
Ownership
Bank of Montreal
Comments
BMO has been among the top-ranked brokers since this survey began in 1999 and the reason is that it has a unique vision of helping clients invest successfully, even while not providing any advice. Just recently, a feature called MyLink has been introduced to send reminders to clients about developments they need to attend to in their portfolios. BMO is also a leader in account performance reporting and in helping clients build portfolios of mutual funds and exchange-traded funds to suit their needs. BMO is improving on costs now that it has announced it will emulate TD's commission cut starting Nov. 1.
5. Credential Direct
credentialdirect.com
Ownership
The credit union movement
Comments
The credit union bloodline is evident in Credential through its user-friendly website, reasonable fees and well-satisfied clients. It's also apparent in the sometimes bland look of Credential's website and its lack of resources and tools that would get sophisticated investors excited. So big deal. This is a broker that offers an unflashy but well-rounded service ideal for the masses. Much like credit unions.
6. RBC Direct Investing
rbcdirectinvesting.com
Owner
Royal Bank of Canada
Comments
A broker on the rise, even if it's still in the middle of the pack. RBC is building a premier stock research centre, and it has introduced a new low-fee class of mutual fund in the RBC family for do-it-yourself investors. Some day, all brokers will sell funds this way. RBC's weak spot is corner-cutting in areas such as helping clients track their personal returns. On the other hand, RBC is addressing its high-cost status by matching TD's commission deal as of Dec. 22.
7. ScotiaMcLeod Direct Investing
Scotiamcleoddirect.com
Owner
Bank of Nova Scotia
Comments
SMDI is out of step on stock-trading commissions, it still doesn't offer online bond trading (it says its clients aren't interested) and its website, long a sore spot in this ranking, remains as navigationally impaired as ever. The reason why you shouldn't write off SMDI is that it does as good a job as anyone at feeding clients a bracing diet of analyst research on stocks, bond and funds. If you're looking for guidance in selecting investments, SMDI delivers.
8. Disnat
disnat.com
Owner
Groupe Desjardins
Comments
Canada's oldest discount broker - Disnat dates back to 1982, long before the Internet let brokers go online - may well be the most improved as well. Disnat used to be dismal - so neglected was this broker that using its website was like an archeological expedition back to the Internet's prehistoric days. Today, Disnat is revitalized with improved stock research tools, online bond trading and a much crisper website. Still missing are competitive stock-trading commissions and proper tools for monitoring your account. A security guarantee would be nice, too.
9. CIBC Investor's Edge
investorsedge.cibc.com
Owner
Canadian Imperial Bank of Commerce
Comments
There's one flash of originality at this otherwise middling broker. Through a deal called Edge Advantage, clients can pay a flat $395 a year for 50 online trades of any type, which works out to $7.90 a crack. After that, you pay $6.95 for any additional trades. The question is whether an investor who trades enough to be interested in this deal would be happy with Investor's Edge. The answer is yes, if you plan to take advantage of CIBC's offering of online bonds and guaranteed investment certificates and its reservoir of stock research from CIBC World Markets.
10. National Bank Direct Brokerage
nbdb.ca
Owner
National Bank of Canada
Comments
The quintessential "nothing special but still adequate" online broker. The rudiments are here - including plenty of stock market and mutual fund research, some good portfolio planning and monitoring tools and an online bond trading platform that differs from most other bank-owned firms in offering high-yield, speculative bonds. What would really help are lower commissions. Active traders get attractive rates, but regular clients pay a minimum of $28.95.
11. HSBC InvestDirect
investdirect.hsbc.ca
Owner
HSBC Group
Comments
E*Trade's U.S. parent recently introduced online trading on six global stock markets. Given HSBC's status as one of the most global banks, this is exactly the kind of service that HSBC InvestDirect should be offering, but isn't. There's an attempt to play up the global angle, but there's online access only to the Hong Kong Stock Exchange and telephone trades are required for other global markets. Blah is the word to describe InvestDirect's service for investors focusing on Canada and the U.S. market, although it is one of the better ones for helping clients avoid currency costs.
12. enorthern
enorthern.com
Owner
Northern Securities
Comments
A skeletal service where the main attraction is a minimum stock-trading commission of $24. That used to be cheap.
13. Questrade
Questrade.com
Owner
Privately held
Comments
A service for active traders that is reaching out to mainstream investors with commissions as low as $4.95, no matter how often you trade or how big your account is. The website is as basic as they come, but a planned redesign should help.
14. TradeFreedom
Tradefreedom.com
Owner
Bank of Nova Scotia
Comments
Another service for active traders, this one offering mainstream investors a deal where they can trade for $9.95 on orders of up to 1,000 shares. Low commissions are the main story here, and they undercut Scotiabank's SMDI by a big margin. How long will that last?
The 14 players in the 2007/08 Globe and Mail ranking of online brokers were rated in seven different categories. Here's how they did.