Questrade Improves Commission Structure
A Questrade PR rep emailed me about their new and improved commission structure. Their old system gave you a choice of either $4.95/trade for up to 495 shares ($0.01/share after that) OR $9.95/trade for unlimited shares. Depending on the volume of shares that you're trading, one choice may be more cost effective than the other.
They have now changed their system so that their clients always get the best commission structure. Clients are now charged a $0.01/share with a minimum of $4.95/trade up to a maximum of $9.95/trade. No more switching between commission structures because it will always be the most efficient. This change will benefit those who dabble with penny stocks as buying the occasional high volume of stock can really add up commission wise.
Here are the highlights:
- No annual fees
- Only brokerage in Canada that allows US Dollars to be held within an RRSP.
- Only $1,000 initial deposit required
- $250 balance to maintain the account
- Free data feeds
- $0.01/share with a min of $4.95/trade and a maximum of $9.95/trade.
- $50 trading rebate for referred new clients. You can read more about the Questrade referral here.
Here is a snippet of the press release:
Toronto, ON (April 1, 2008) – Questrade Inc., Canada's most innovative brokerage, announces today it is simplifying its top-rated stock trade commission plans into a single "democratic" price. All Questrade clients are eligible for 1¢ per share, with a minimum commission of $4.95 and a cap of $9.95.
Democratic pricing automatically gives clients the best possible commission for every trade. Small lots can qualify for a commission of $4.95, trades of between 495 and 995 shares are priced at a penny per share, and larger lot trades are capped at $9.95.
Says Edward Kholodenko, President and CEO of Questrade: "We want to offer a fair deal to all our customers, no matter their trade activity level or account balance. It's the democratization of trading. New or more casual investors now get the same purchasing power that was always available to active and pro traders."
Democratic pricing takes effect April 1st, 2008, and all Questrade clients are automatically enrolled. A Questrade account can be opened with $1000, there are no annual fees, no trade activity thresholds and a balance of only $250 is required to maintain an account in good standing.
The new commission is a continuation of the firm's commitment to accessible, cost-effective investment solutions for Canadians.
- In January, 2008, Questrade introduced USD in RSP™, the first RSP to hold U.S. dollars. This service eliminates the 1% to 2% currency conversion fees that other brokerages attach to all RSP trades in U.S. markets.
- In January, 2007, Questrade began offering the gold RSP, the only registered savings account in Canada that directly deals in physical gold. With gold around USD $1000 today, investor interest in the service has been surging – doubling since the beginning of 2008.