Qtrade Direct Investing review

Who Qtrade Direct Investing suits

Qtrade Direct Investing is a self-directed online brokerage and a division of Aviso Financial Inc., part of Aviso Wealth. It suits investors who place their own trades in Canadian and U.S. stocks and ETFs and want $0 online commissions alongside a long account menu that includes locked-in plans, family RESPs, trusts and investment club accounts.

It is a weaker match if you convert currency often, since Qtrade doesn’t publish its exchange rate, or if you want fractional shares, which we found no mention of on its official pages.

Trading costs

Qtrade’s pricing table lists $0 commissions on online stock and ETF trades on Canadian exchanges (TSX, TSXV, CSE and NEO) and U.S. exchanges (NYSE and Nasdaq), as well as OTC stocks, rights and warrants. Some search listings for its pricing page still show an older per-trade commission, but the table on the page itself shows $0. Other trading costs:

• Mutual funds: $0
• Options: $0 plus $0.75 per contract online; assignments carry a flat $30 fee
• Option exercises: processed as representative-assisted trades at $30 plus $1.00 to $3.50 per contract, with a $45 minimum
• Stock orders placed by phone: $45 minimum
• Bonds: $1 per $1,000 face value, with a $24.99 minimum and $250 maximum

Account fees

Qtrade’s fees page lists no account maintenance or inactivity fee, though it doesn’t say outright that none applies, and its customer agreement lets Qtrade close accounts left inactive for 18 months or more. eStatements, electronic funds transfers, DRIPs and scheduled RRIF and LIF payments are free. The charges you’re most likely to meet:

• U.S. dollar RRSP, RRIF or TFSA: US$15 a quarter per account (the FHSA is excluded)
• Transfer out: $150
• Account closure: $100, within the first year only
• Formal trust accounts: $100 to set up, then $50 a year after the first year
• Paper statements: $6 a quarter; paper trade confirmations: $2.50 per trade
• De-registration: $125 in full or $50 partial

U.S. dollars, currency and Investor Plus

Qtrade says all of its popular accounts offer trading in Canadian or U.S. dollars, including cash, margin, RRSP, RRIF and TFSA accounts. It publishes no currency conversion percentage. Its pricing page says conversion may apply depending on the account type, and its customer agreement says it converts at rates it sets and may earn revenue on the spread between bid and offer rates. Ask for a quote before converting a large amount.

Investor Plus status, for clients with $500,000 or more in assets or 150 or more trades a quarter, removes the U.S. dollar registered account fee and adds lower margin rates and a dedicated phone line. Qtrade’s interest rate page lists margin from prime plus 1.55% under $100,000 and prime plus 1.0% at $100,000 or more. Qtrade also runs promotions for new accounts; terms change, so read the current offer on its site.

Accounts and protection

Qtrade’s customer agreement describes Aviso Financial Inc. as a member of the Canadian Investment Regulatory Organization (CIRO) and the Canadian Investor Protection Fund (CIPF). CIPF protection applies if a member firm becomes insolvent; it does not cover losses when your investments fall in value. Qtrade’s Internet Security Guarantee also offers 100% reimbursement for losses from unauthorized online brokerage activity, subject to conditions. Accounts offered:

• Tax-sheltered: TFSA, FHSA, RRSP, spousal RRSP, RESP and family RESP
• Retirement and locked-in: RRIF, spousal RRIF, LIRA, locked-in RRSP and LIF
• Taxable: non-registered, margin and joint accounts
• Business and other: corporate, trust, estate and investment club accounts