Qtrade is once again (for the third straight year) the winner in the Globe and Mail ranking of the online discount brokers. BMO InvestorLine, E*Trade, TD Waterhouse and Credential Direct round out the top five, though RBC Direct Investing missed a spot by a mere whisker. Qtrade’s top ranking (reviews, comments and customer opinion on Qtrade and other discount brokers are available), especially in customer satisfaction, is hardly surprising — they staff their phone lines with knowledgeable operators offering stellar support and it shows in the results.
I’ve held accounts at TD Waterhouse, RBC Direct Investing, E*Trade and Questrade and I would rank them in that order. I wouldn’t read too much into a broker’s rank in the list because the one that is best for you depends on the features you are looking for. Last year, I was looking for a broker offering wash trading in a RRSP but now that all our foreign equities is in ETFs that I’m not planning on selling for a long time, it isn’t my top criterion any more.
It is surprising that Scotia McLeod and CIBC Investors Edge still do not offer lower commission plans for investors with larger accounts (as TD Waterhouse, BMO InvestorLine and RBC Direct Investing do). And the big bank brokerages still charge significantly higher commissions for investors with smaller accounts. With the list of independent brokers dwindling (TradeFreedom and now E*Trade are owned by Scotia Bank), there is going to be less competition in the future.
