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2004 Broker Survey | |
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The Globe and Mail's 2004 On-line Broker Report
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Profiles | |
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Click a broker to view contact info, services offered and fee schedules BMO Investorline CIBC Investor's Edge Credential Direct Disnat eNorthern E*Trade Canada HSBC Invest Direct National Bank Discount Brokerage Qtrade Investor RBC Action Direct ScotiaMcLeod Direct Investing TD Waterhouse | |
| Broker (Web site) |
The Good | The Bad | The Verdict | Rating |
|---|---|---|---|---|
| BMO InvestorLine www.bmoinvestorline.com |
The most innovative of the brokers examined here. The attitude at InvestorLine seems to be: Anything the others can do, we can do better. Highlights are on-line trading of bonds and guaranteed investment certificates, real-time account updates and trailing stop orders, which help you protect gains you've made on stocks. On the cost side, there are $25 market orders and commission-free funds. | InvestorLine is the only on-line broker owned by a big bank that does not offer clients equity research from its full-service brokerage arm. Also, InvestorLine shuns small accounts (under $5,000 in assets). | The boss. | A |
| CIBC Investor's Edge www.investorsedge.cibc.com |
Cheap commissions as low as $25 for both market and limit orders, combined with an upscale ambience that features real-time account updates and access to equity research from CIBC World Markets. On-line trading of bonds and GICs is coming in the next couple of months. |
Lacks the breadth of services of the leaders, but not by much. | No broker has come further over the five years this survey has been conducted. | B |
| Credential Direct www.credentialdirect.com |
Very reasonable stock-trading commissions for both large and small trades. | A dearth of the tools, features and services that the larger, better-funded brokers offer. | Totally overmatched. | D |
| Disnat www.desjardins.com/en/disnat |
The basic Disnat service has improved a fair bit over the past year, though it still lags the big players by a virtual Grand Canyon. Sample improvements: You can now trade mutual funds on-line, and equity research from Desjardins Securities has been added. Active traders making 10 or more trades per month should check out the far superior Disnat Direct service (www.disnatdirect.com) |
Dollar store atmosphere. | Next. | D |
| eNorthern www.enorthern.com |
The $24 minimum commission for on-line equity trading. | Costs are rising for equity trades that don't qualify for the $24 minimum, and for mutual funds. What have they provided in services to offset this? Not a sweet thing. | Heading south. | F |
| E*Trade Canada www.etrade.ca |
The days of catering to active investors while letting the service for regular folk slide are over. There's a great new account summary page with real-time updates and gains/losses expressed in percentages, links to a technical analysis tool and buttons that instantly analyze your asset allocation and tally the foreign content in registered retirement savings plans. Costs remain reasonable and the menu of electronic services is unparalleled. |
Needs more Canadian content in its market analysis and equity research areas; financial planning tools are lightweight. | There's a certain fun-to-use quality to E*Trade that nobody else matches. | B+ |
| Merrill Lynch HSBC www.mlhsbc.ca |
Access to global stock markets, including on-line trading on the Hong Kong Stock Exchange. There's also an excellent portfolio analysis tool and a vast library of equity research reports from Merrill Lynch, HSBC and Standard & Poor's. | Falling ever further behind the leaders in terms of the amenities it offers. And given that Merrill Lynch has bailed on this partnership, you have to wonder how long its research will be available. | A top broker by the standards of two or three years ago. HSBC says it's committed to upgrading the service, though. | C |
| National Bank Discount Brokerage www.nbc.ca |
On-line bond trading and a minimum commission of $24.95 for market orders. | No bells, few whistles. | An adequate choice if you want to consolidate all your financial business with National Bank. | C |
| Qtrade Investor www.qtrade.ca |
This low-profile independent -- clients are channelled in through Qtrade's relationships with credit unions and financial planning firms -- displays all-around competence. There's a good selection of tools for selecting stocks and funds, and on-line access to a full range of equity orders, including short sales. Also, you can get streaming quotes -- real-time or delayed -- if you're willing to pay. | Lacks both the visual and technological polish of some others. | A folksy, low-stress on-line broker. | B |
| RBC Action Direct www.actiondirect.com |
Action Direct filled a major hole by adding equity analysis from RBC Dominion Securities. It also offers on-line bond and GIC trading, modest RRSP administration fees for small accounts and an ultra-crisp Web site that will be still better after coming improvements. | A minimum $29.95 stock-trading commission, the most expensive in the business (RBC counters that its typical client trades stocks infrequently), plus a slightly lower-tech feel than the top-rated brokers. | You could be happy here. | C+ |
| ScotiaMcLeod Direct Investing www.scotiamcleoddirect.com |
There's a commitment to steady improvement at this broker that this year can be seen in the work they've done to improve navigation on the Web site for clients -- a sore spot in last year's rating. Also, the equity and fund research centre is a pleasure to use and a great source if you're looking investing ideas. | The client Web site is much more livable, but there's still something esthetically cockeyed about it. | Likeable, but not the prettiest. | C+ |
| TD Waterhouse www.tdwaterhouse.ca |
All-around quality, from its stockpile of stock and fund research to its on-line bond trading platform and its menu of functions you can do electronically. (Example: you can view trade confirmation slips and statements on-line.) A great job on mutual funds, too. You can trade many funds with zero fees or commissions. | Surprisingly, this industry leader doesn't offer real-time account summaries. Also, the $100 annual RRSP administration fee for accounts with less than $25,000 is a poke in the eye (you can cut this to $25 if you hold just funds and fixed income). | Late-career Frank Sinatra comes to mind. Still a force, but starting to lose its chairman of the board status. | B |
See also: BMO tops list of on-line brokers
Report Card | Score Sheet | Satisfaction Survey
Comments? Come on, everyone has an opinion about who the best and worst brokers are. Send us your thoughts.
