If you are looking to invest the trading industry, it is bursting with numerous discount brokerage agencies. There are known names such as BMO Investment Line, Interactive Brokers, E*TRADE, TD Waterhouse and RBC Direct Investing and some more to select from. Without deep analysis it is not really possible to find out discrete differences especially with the ones linked to large banks. Typically brokerage firms generate revenue by way of inventive blend of different fees to be paid by the account holders. Some of these fees are administrative fees, after-hour fees, set-up fees, inactivity fees, activity fees, hidden fees and so on and so forth. Such costs may be okay for a small percentage of people dealing with high-volume trading due to the trade volumes. The gains they make will most likely offset the fees with time. But for an average trader such consistent fees reminds of the saying “the house always wins”.
Typically new investors consider their local bank the best option to open a trading account mainly due to convenience as they already have personal accounts with that bank. Opening an account here is just a phone call away. The unfortunate thing is that large banks or even the big Canadian brokerage firms will charge you a bomb any activity done or even not done in the account. Even in the modern internet age where everything is 24/7 and convenient commission are active, long and profit friendly for corporate. In fact with the standard rate of $29-$49 a trade, one just can’t help but wonder if the whole industry is a part of some price-fixing format.
QuestTrade Company History
QuestTrade was established in 1999 with the aim to be and do something different. QuesTrade started the process of reforming the approach to investment after witnessing the growing dissatisfaction among traders who just had to see their market profits lost in an inundation of different brokerage fees. Here I will investigate the company and their products in terms of bad and the good.
In fact I am not a very active trader and normally I take the buy-and-hold attitude as my investment style. When I purchase a stock it is for long-term. Sometimes I do feel like trading like a man possessed but has not really happened too often.
QuesTrade presents a well designed exclusive ‘democratic pricing’ stock trading commission of 1¢ per share with a lowest fee of $4.95 a trade and ceiling utmost commission fee of $9.95. This is true! QuesTrade offer cheapest trading in Canada. Their price is so affordable that it encourages small and new investors to join and explore the investment game. It also attracts unhappy active traders from other brokerage agencies to transfer their account at no added fee. QuesTrade makes it clear that they have no annual fee, setup fees or inactivity fees which is a welcome change.
Types of accounts offered by the brokerage:
You get access to these services:
Final Thoughts on QuestTrade
You may find some negative online reviews of QuesTrade. Before writing this review I read several of the complaints so that I am aware as well as can keep track of the issues. I was planning to list these complaints here but after checking that a number of them had been resolved by them I decided that they deserved another chance. I spent a few days using all their online tools, trading as well as trying to generate customer complaints; I can say that I did not face any problems. I would say that either the company has fixed many of the earlier issues or they have been generated by novices who are not very familiar with the company policies and platform.
Overall I had a very pleasant experience with QuesTrade. The “killer app” from them can execute trades for as little as $4.95 with no hidden fees. You may have come across brokerages who during their promotional time claim to give $4.95 trades but when you really look into the fine print it is for large traders who may have to spend $100,000 or more per month in trading activity to take the $4.95 offer.
Low commission rate from QuesTrade is excellent and serves to attract trades who hesitate and wait to enter the market at the right time when they can cover all commission costs.
I do feel that they should merge 2 separate login areas to offer a more consistent feel in the total experience ranging from excellent to acceptable. Other features that can be improved can be the security feature to relax traders. They offer dramatic savings and it is not be possible to find everything.
Now the question is should you join them? It is a good idea particularly for new investors. People like me who are casual traders also will find QuesTrade suitable. After checking them out I feel more confident that they are a good choice for any person’s growing requirement as an investor.
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