BMO InvestorLine
(Bank of Montreal) |
InvestorLine nails the market for middle-of the-road investors with an astute blend of tools and services, including financial planning tools, real-time account summaries, on-line bond trading and a slick Web site that has finally been upgraded to allow clients to place stop orders. |
Costs are rising as of Sept. 30. The annual fee for RRSP accounts will be $100 if you have less than $15,000 in your account, and stock-trading com-missions have been tweaked in a way that makes some transactions a little more expensive than before. Also, there's a $5,000 minimum in place for buying money market funds. Note to InvestorLine brass: You could pull away from the competition if you offered equity research from BMO Nesbitt Burns. |
A |
E*Trade Canada
(Owner; E*Trade Group) |
E*Trade is doing back flips to attract aggressive traders. Through its Power E*Trade package, this broker offers high-powered trading tools, research and commission discounts tied to the number of trades you make. For all clients, E*Trade is one of the best at providing a full range of services on-line. |
Clients who don't qualify for Power E*Trade may feel like second-class citizens. There are also parts of the E*Trade Web site that need tuning up. Example: the lame homepage that clients go to after they log in. |
B+ |
TD Waterhouse
(Toronto-Dominion Bank) |
Does a fine job of offering something for all types of investors, from beginners to hard-trading types. There are plentiful research tools, on-line bond trading and an impressive range of functions that you can do on-line (including view your monthly statements and fund prospectuses). |
Waterhouse is one of the more expensive brokers, though it's great for funds. Also, both the public and secure Web sites could use some fine-tuning. No broker makes it harder to get information on commissions than TD Waterhouse. |
B+ |
Qtrade Investor
(Privately held; Deutsche Bank has a minority stake) |
A well-balanced package that scores well in all areas and even offers some surprises. Example: streaming stock quotes are available for a monthly fee. |
Lacks some of the amenities offered by the big bank-owned brokers. |
B |
CIBC Investor's Edge
(CIBC) |
With its $25 minimum commission for both market and limit orders, Investor's Edge has lots of appeal for cost-conscious traders. There are also copious amounts of equity research available from CIBC World Markets analysts, and decent amenities like real-time account information. |
This broker doesn't want pint-sized accounts and it says so loud and clear by dinging you for $15 per quarter if your account balance is below $5,000. There's also a $100 annual RRSP fee for accounts with less than $15,000. |
B |
Merrill Lynch HSBC
(HSBC Holdings PLC) |
Cool tools, including a vast library of global equity research from Merrill Lynch, HSBC and Standard & Poor's, plus a great portfolio analysis tool called Portfolio X-Ray. ML HSBC is also friendly to novices. It has no annual RRSP fees and no commissions on funds (if you hold them for six months). Global investors note: ML HSBC excels in this area. |
Falling behind the leaders in the breadth of its services. Can HSBC keep this broker competitive, now that Merrill Lynch has pulled out of the partnership? Note: Merrill's research will be on hand for another two years or so. |
B |
ScotiaMcLeod Direct Investing
(Bank of Nova Scotia) |
A deep, smartly organized collection of equity, fixed income and mutual fund research by ScotiaMcLeod analysts. There's also an impressive array of services offered on-line, including e-mail alerts and trade-fill notifications. |
Scotia's secure Web site for clients is a mess. It's cluttered, way too confusing and, worst of all, lacks basic functions that most other brokers offer. Example: you can't get a real-time stock quote on the same screen you use to trade a stock. With a sharper on-line presence, Scotia would have done a lot better in this ranking. |
C+ |
National Bank Discount Brokerage
(National Bank of Canada) |
Reasonable fees and a much-improved Web site, plus on-line bond trading. |
Lags in the area of tools and research. |
C |
Royal Bank Action Direct
(Royal Bank) |
Action Direct's internal Web site is the best out there for allowing clients to swiftly check their accounts, look up quotes and research and make trades. It's a pleasure to use. This broker also offers on-line access to bonds and guaranteed investment certificates, a big plus for middle-of-the-road investors. |
Not enough conveniences or tools to justify having the most expensive minimum on-line stock trading commission at $29.95 (as of Sept. 15). This problem may be alleviated somewhat in the months ahead when investment commentary from RBC Capital Markets is added. |
C |
Credential Direct
(Cdn credit unions) |
Reasonable fees and a nicely done Web site. |
Savvy investors won't be satisfied. |
C |
eNorthern
(Northern Financial) |
Whether you place large or small trades, eNorthern is by far the cheapest broker in this survey thanks to a minimum on-line commission of $24. Plus, there are no commissions to buy, sell or switch mutual funds (as long as you hold them for six months). |
Everything other than price. That said, eNorthern is worth a look if you value low costs above all else. |
D+ |
Sun Life Securities
(Sun Life Financial) |
Does the basics. |
Fees and commissions are near the top of the heap. |
D– |
Disnat
(Mouvement des Caisses Desjardins) |
Changes are coming for Canada's oldest and most decrepit discount broker, so don't take this grade too seriously. |
Where to start? How about an antique Web site, next to nothing in the way of investment research or financial planning tools and no on-line trading of mutual funds? |
E |
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