Questrade Offers Commission Free ETFs and Weekend Links
Seems that the competition is rising among the low cost stock brokerages in Canada! The hot ticket these days seem to be free ETF trades which started with Scotia iTrade followed by Virtual Brokers. Both brokerages have their own selection of ETFs available for free trades.
It was only a matter of time before low cost provider Questrade got into the game – which they have, but have stepped it up a notch. Questrade is offering no commissions on purchases of any ETFs, however, there will be their regular $4.95 commission on selling. For those of you unfamiliar with Questrade, here is my Questrade review.
How Does it Work?
This is straight from the Questrade website:
- You’ll pay the ETF commission at the time of purchase, but we’ll rebate you in two business days
- There are no minimum number of shares you have to buy. Hold them for as long as you’d like
- Buying ETFs for free is only available if you’re trading on one of the Questrade IQ platforms
- ECN fees or any other incidentals charged by the markets are your responsibility
- Your standard commissions will apply when you sell an ETF
I can see this new incentive working best with index investors who buy, but rarely sell. This is a great way to keep portfolio fee drag as low as possible. Perhaps the biggest advantage of this offer is that investors can choose any ETF without restriction. Here is an example of a low cost index ETF portfolio using Vanguard and iShares ETFs.
I’m not sure if this deal is enough to convince an investor to switch from their current brokerage, but it’s a great deal for current account holders like me!
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