The old deal in DIY investing was that you could have a zero-commission broker or a good broker. Pick one.
The recent move by Questrade to offer zero-commission trading highlights the new deal - low costs and a very good platform for managing your investments.
Questrade scores well in the 2025 Globe and Mail Digital Brokerage Ranking, in part because of a move in early February to eliminate a commission structure of 1 cent per share, with a minimum cost of $4.95 and a maximum of $9.95. Questrade is also a tech-savvy broker with a fresh and appealing app and website. You can put a tick beside cheap at Questrade, and good.
The same applies for the rapidly improving National Bank Direct Brokerage, which became the first broker owned by a big financial institution to eliminate commissions back in August 2021. Also, the digital trading app Wealthsimple, which was first with zero-commission trading in the Canadian market and has since become a one-stop shop for digital personal finance.
Desjardins Online Brokerage offers zero-commission trading, but without the zip of the above-mentioned competitors. TD Easy Trade is a more limited zero-commission choice - you get 50 free trades per year and unlimited trading of TD-brand ETFs alone. You can’t buy ETFs from competing companies.
TD Direct Investing took top spot in the Globe broker ranking because its all-around excellence justifies paying $9.99 for most stock trades. But if you’re a young investor or a newbie with a small account, shaving your trading commission down to zero has some appeal.
Questrade’s move to zero commissions is noteworthy because of the DIY investing price stagnation that we’ve seen since NBDB and Desjardins made their moves three and a half years ago. Established players in the digital brokerage scene seemed to think they didn’t need to compete on price.
Questrade, a scrappy independent player, obviously thinks differently. The company launched zero commissions with commercials that ran throughout the Super Bowl broadcast on Feb. 9. The “Zero is Hero” theme of this marketing is that paying no commissions is good for investors.
We’ll have to see if zero commissions are also good for brokers that want to add new clients and are willing to get their revenue through margin loans, foreign exchange and interest generated on cash balances in client accounts. The breakthrough would be one of the Big Five bank-owned brokers eliminating commissions. Don’t hold your breath.