Why Start With Questrade

QuestradeAs a DIY investor, I can tell you that I have used 5 different discount brokers in my life so far. There will always be progress and competition for the customers and to that end, I don’t think anyone can settle with one for life. You need to use the discount broker that works for you at your stage in life. I believe Questrade is the discount broker of choice for anyone starting.

My Discount Broker History

  1. I started with InvestNat from National Bank. When I look back, it was a pretty pathetic setup. It still exists but was rebranded National Bank Discount Broker. It would seem that they have kept up with the trend and are offering transaction fees of $9.95. It’s pretty much the norm now.
  2. I then switched to Scotia McLeod. They still exist but more so as a wealth management. My traders cost me $30 at the time.
  3. I was then enrolled in e*trade Canada for our company plan at the time. I did not make use of it much for personal investment.
  4. As with many small player, e*trade Canada became Scotia iTrade where I invested for a while before I started down my dividend investing path.
  5. Once I was figuring out my investing strategy and how I wanted to invest, I settled on RBC Direct Investing where I have been so far.

Funny anecdote – it looks like I always end up at ScotiaBank after e*trade Canada and ING Direct 🙂

Why Start With Questrade

My brother started with Questrade on my recommendation and it’s working well for him. I do realize that I am with RBC Direct Investing but as you can see from my history, it took me a while to settle on one. My situation is different from a new DIY investor though. If I was not going to be with RBC, Questrade was my second choice. As a new investor, you are not transferring large amounts into a new discount broker, you are probably starting to invest and want ways to make your money work at a low cost. That solution is index investing with ETF (Exchange Traded Funds) and ETF transactions happen to be FREE at Questrade! By the time you have accumulated a sizeable amount, you should have figured out what investing strategy is going to work for you. As you probably know by now, I am a blue chip dividend investor.

See what Questrade has to offer!

  • You get to invest small amounts in equity or fixed income through an ETF
  • You get to build your nest egg slowly at a low cost (No mutual fund fees here)
  • You can then transition to stocks whenever you are ready for a low cost of $4.95 for the fixed plan pricing

You get all the benefits of a full discount broker. Questrade is to discount brokers what Tangerine is to banking.


Discount Brokers

Related: Discount Broker Review

Readers: Let me know what you like or don’t from your current discount broker.

14 Responses to "Why Start With Questrade"

  1. Great post PIE! I really like the comparative table. One thing I noticed though is that for TD W for DRIP Discount you have a blank. I have been with them for years and have always gotten my DRIP discount through the synthetic DRIP (provided that the stock you own offers one).

  2. We use TD and Questrade. For TD I think they offer DRIP discount when it’s available. TD is good because it’s tied to our bank accounts. I like Questrade too due to the simplicity. So far we are very happy with Questrade.

  3. @Wendy

    Thanks for your comment. I don’t believe many discount brokers provide real-time quotes for small portfolios. I would be curious to find out who has them if someone knows.

    What’s important is that you figured out what is important to you and now you need to look for it. Most bank discount broker will not provide a good technical system in my opinion. You will have to find a specific discount broker for that.

  4. I think that any company that would charge you management fees while your taking all the risk yourself is just plain wrong.Yet the government wants people to save for retirement, has anybody stop to think how much your paying out just on fees alone. Well ! ! …I did just that while i was with Edward Jones.It turned out to be an education, why ? you may ask, cause for the first time it all came to me what my uncle use to preach to me,,,,”nobody cares more about your money more than you” The bottom-line is my fees were adding up faster that any profit i was making at the time.The 9 years i was with Edward Jones not only did i lose more money put u could not get ahead with the fees plus and trades i needed to do for the portfolio to grow.

    Then i came to Questrade …and never looked back….Fees does take a lot from your portfolio don’t care what they say…..The only reason my portfolio is doing great now ,is the low trade commission no fees on rrsp’s

    But i have found if i am buying an American stock on shareowners.com outside of an RRSP or LIRA, TFSA, there is no fee
    and they pay the dividends in friction shares at no cost to you in a drip plan

  5. Can’t argue with the low trading cost. But I still like DRIP plans for the small investor. DRIP’s can’t be used for RRSP or TFSA but where one only has small amounts to invest, even a $4.95 trading cost is expensive. On $50 a month it’s 9.9%. With DRIPs you can invest $50 a month in most stocks (some have a min of $100), or just add money when you can, and pay NO fees.

    For most of my accounts I’m with Canadian ShareOwner Investments. I like them because they offer Full Dividend Reinvestment, not Synthetic DRIP, where you can only buy whole shares. I’ve received a dividend for less than $1.00, and been able tor receive a fraction of a share. Not much but they add up over the years and contribute to the compounding.

    There trading cost is higher $19.95, but I rarely trade and when I do it’s for larger amounts.


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