Note: This article is a comprehensive review of Questrade, one of Canada’s leading online brokerages. It provides an in-depth analysis of Questrade’s services, platforms, investment options, pricing, and more. Whether you’re a beginner investor or an active trader, this review will help you understand if Questrade is the right broker for you.
Introduction
Questrade, founded in 1999, is a prominent Canadian financial services firm that offers online trading and investment services to Canadian residents. It serves as an alternative to traditional banking institutions, providing Canadian investors with a wide range of investment options and a user-friendly trading platform. In this comprehensive review, we will delve into the key features, pricing, trading platforms, research tools, and account types offered by Questrade.
Key Features of Questrade
Questrade offers a breadth and depth of services that make it one of the best online brokers in Canada. Here are some of the key features that set Questrade apart:
- Transparent Pricing: Questrade’s pricing structure is straightforward and transparent. They offer commission-free ETF buys, minimum stock commissions of $4.95, and discounts for active traders. Notably, Questrade does not charge any annual fees, making it a cost-effective option for investors.
- Wide Range of Investment Options: Questrade provides access to various investment options, including stocks, options, bonds, ETFs, mutual funds, precious metals, and guaranteed investment certificates (GICs). They also offer access to initial public offerings (IPOs) and international equities.
- User-Friendly Trading Platforms: Questrade offers two trading platforms, Questrade Trading and Questrade Edge. Both platforms are highly functional, easy to navigate, and feature-rich. Questrade Trading is designed for clarity, education, and ease of use, while Questrade Edge is more trading-focused and customizable.
- Comprehensive Research Tools: Questrade provides a range of research tools to assist investors in making informed decisions. Market Intelligence, powered by Morningstar, offers fundamental analysis and stock reports. Intraday Trader, powered by Trading Central, scans markets for technical signals and alerts traders when patterns occur. Additionally, Questrade has partnerships with third-party analysis and trading platforms like VectorVest and YCharts.
Pricing and Fees
Questrade offers competitive pricing for its services. The pricing structure is divided into two main plans: Self-Directed Investing pricing and Active Trader pricing.
Self-Directed Investing Pricing
For most investors, Questrade’s standard pricing plan is the best deal. Here are the key pricing details:
- Stocks: $0.01 per share with a minimum charge of $4.95 and a maximum charge of $9.95.
- ETFs: Follows the same structure as stocks, but there is no charge for buying ETFs, only when selling.
- Options: Priced at a flat rate of $9.95 plus a $1 fee per contract.
Active Trader Pricing
Under Questrade’s Active Trader program, clients can choose between variable or fixed-rate pricing plans. Here are the pricing details for active traders:
- Stocks: $0.01 per share with a $0.01 minimum and a maximum charge of $6.95 (variable plan) or a flat $4.95 per trade (fixed plan). Note that the variable pricing is more suitable for trading smaller quantities.
- Options: $6.95 + $0.75 per contract (variable plan) or $4.95 + $0.75 per contract (fixed plan).
- ETFs: Commission-free to buy, but a $4.95 commission when selling on the fixed plan. With the variable plan pricing, you pay 1 cent per share with a maximum commission of $6.95.
Data Subscriptions and Rebates
Questrade offers various data packages for real-time stock data. Level 1 real-time stock data is free for all accounts. Advanced data packages, such as U.S. Level 1 and 2 and Canadian Level 1 data, require a monthly fee. However, Questrade automatically rebates charges for advanced data packages once you hit commission thresholds.
Trading Platforms and Tools
Questrade offers two main trading platforms: Questrade Trading and Questrade Edge. Both platforms are available on desktop and web browsers, and there is also a downloadable desktop application called Edge desktop. Here’s a closer look at each platform:
Questrade Trading
Questrade Trading is a user-friendly platform designed for clarity, education, and ease of use. It provides essential features for trading and is suitable for most investors, including beginners. Some key features of Questrade Trading include:
- Learning Mode: This feature is invaluable for beginners and provides detailed explanations of what’s on the screen. Novices can access educational resources and prevent costly mistakes.
- Research Tools: Questrade Trading offers a range of research tools, including analysts’ opinions, forecasts, fundamental and technical ratings, and sentiment measures. These tools are provided by TipRanks, a popular third-party provider.
Questrade Edge
Questrade Edge is a more advanced trading platform designed for active traders. It offers a customizable and feature-rich experience with additional tools and functionalities. Some key features of Questrade Edge include:
- Customizability: Edge allows users to customize watchlists, stock charts, options chains, and other trading elements. It offers more flexibility and configurability than Questrade Trading.
- Advanced Order Types: Edge provides advanced order types, such as bracket orders and available order routing. These features are particularly useful for active traders.
- Market View Gadget: Edge includes the Market View gadget, which provides multiple views and heat maps of the best and worst-performing stocks. It also offers a simple interface for screening and customization.
Mobile Trading
Questrade offers two mobile apps: QuestMobile and Questrade Edge Mobile. QuestMobile is similar to the web version of Questrade Trading, while Questrade Edge Mobile is designed for more active traders who require advanced features like order routing and multileg orders.
Investment Options
Questrade provides a wide range of investment options to cater to different investor preferences. Here are some of the investment options available:
- Stocks: Questrade allows trading in Canadian and U.S. stocks, providing access to major stock exchanges like NASDAQ and NYSE.
- Options: Investors can trade options on Questrade’s platforms, with the ability to execute simple and multi-leg options strategies.
- Bonds: Questrade offers trading in bonds through live brokers, with a minimum investment amount of $5,000.
- ETFs: Questrade offers a variety of ETFs, including commission-free ETFs for buying and competitive pricing for selling.
- Mutual Funds: Mutual funds can be traded on Questrade’s platform, with a fee of $9.95 per transaction.
- Robo-Advisory: Questrade’s Questwealth Portfolios are managed portfolios of ETFs that cater to different risk profiles. They charge a management fee of 0.25% per year or 0.20% for accounts with more than $100,000.
Account Types
Questrade supports a wide array of account types to meet different investor needs. Here are some of the account types offered:
- Individual, Joint, or Organization Margin Accounts
- Tax-Free Savings Accounts (TFSA)
- Registered Retirement Savings Plans (RRSP)
- Registered Education Savings Plans (RESP)
- Locked-In Retirement Accounts (LIRA)
- Registered Retirement Income Funds (RRIF)
- Life Income Funds (LIF)
- Fully Managed Accounts
Questrade also provides an IPO Centre, where investors can receive early notification of upcoming listings via email subscription to its IPO Bulletin newsletter. The minimum investment amount per IPO is $5,000.
Research Tools and Education
Questrade offers a range of research tools and educational resources to help investors make informed decisions. Here’s an overview of the research and education offerings:
- Market Intelligence: Powered by Morningstar, Market Intelligence provides thorough fundamental analysis for equities and ETFs traded in Canada and the United States. It includes reports, analyst ratings, sentiment analysis, and a screener tool for scanning for investment ideas.
- Intraday Trader: Powered by Trading Central, Intraday Trader is a trade ideas generator that uses automated technical analysis algorithms to present actionable opportunities. It scans the market for technical signals and alerts traders when patterns occur.
- IPO Centre: Questrade’s IPO Centre provides a web portal for investors seeking early notification of upcoming IPOs. It lists open IPO opportunities and allows users to sort between offerings and browse available options.
- Education: Questrade provides basic educational resources for beginners, including videos and guides on how to place orders, use the trading platforms, and understand different order types. However, the educational resources are relatively limited compared to some other brokers.
Customer Service and Security
Questrade offers several channels for customer support, including phone lines, online chat, and email support. Live brokers are available during market hours to assist with specific inquiries or trading-related issues. Questrade also provides a security guarantee that reimburses customers for unauthorized transactions and is registered with the Investment Industry Regulatory Organization of Canada (IIROC). Customer accounts are protected by the Canadian Investor Protection Fund (CIPF) up to $10 million per account.
Conclusion
Questrade is a leading online brokerage in Canada, offering a wide range of investment options, user-friendly trading platforms, and competitive pricing. From commission-free ETFs to customizable trading platforms, Questrade provides a comprehensive suite of services for both beginner investors and active traders. While their research offerings are not as extensive as some other brokers, Questrade’s transparency, low fees, and robust trading tools make it a popular choice among Canadian investors.
Overall, Questrade is a reliable and reputable broker that caters to the needs of Canadian investors. Whether you’re a passive long-term investor or an active trader, Questrade has the tools and resources to support your investment journey.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing involves risks, and individuals should consult with a financial advisor before making any investment decisions.
