July is a great time for vacations, and it seems like online brokerage promotions are already enjoying theirs. This month, promotions activity among Canadian online brokerages has slowed down considerably as self-directed investors and markets recalibrate around new economic realities (aka rising interest rates).

On the promotions side, we began the month with the official expiry of a big commission-free trade offer from RBC Direct Investing. This promotion represented a step change for the large bank-owned online brokerage since the number of commission-free trades (100) and the timeframe for using those trades (two years) were greater than previous versions of this deal, a sign that RBC Direct Investing is prepared to up the ante to compete for new clients.

Another interesting development in the promotional space came from Wealthsimple Trade, in particular, their affiliate plan offering. The news related to cost-cutting measures and layoffs at Wealthsimple was widely publicized in June. What didn’t get telegraphed, however, were some major adjustments to the Wealthsimple Trade affiliate program to significantly reduce payout bonuses (which were as high as $150).

Online brokerages typically use affiliate programs or referral programs to limit the cost of acquiring a client, and in this case, self-directed investors are likely to see reduced amounts of incentive offers being actively promoted online by different influencers.

Just because online brokerages have taken a pause, however, doesn’t mean that we at Sparx Trading have. Activity on the front end has been quieter than usual during the recent market volatility, but it’s because we’ve been busy working on a new product called Sparx Trading Pro, which enables us to derive really interesting information and insights on how self-directed investors are approaching the world of online investing.

As part of our reporting this month, we’re including some insights we learned about deals and promotions activity in June (and May for context). Keep reading for highlights from Sparx Trading Pro analytics insights.

Expired Deals

One of the biggest names in the Canadian online brokerage space, RBC Direct Investing, officially closed out the 100 commission-free trading promotion that had been running from RRSP season and through the spring.

Extended Deals

No new deal extensions to report at the moment.

New Deals

No new deals to report at the moment.

Sparx Trading Pro Insights

Welcome to the new section and content being offered on Sparx Trading courtesy of Sparx Trading Pro, our new analytics and insights engine.

So, how has online brokerage deals and promotions activity from self-directed investors been heading into July?

According to the data on deals and promotions on Sparx Trading, we’ve noted that there has been a sharp decline in the number of searches being performed for deals compared to the activity during RRSP season and even into April.

The real drop off started in May and revived in June – especially towards the tail end of the month. It’s fair to say that sentiment in the broader stock market and a lack of compelling offers to draw investors into opening a new account were underlying factors for the slowdown.

Are you interested in more Sparx Trading Pro insights? If so drop us a note to learn more.

• 

  Online Brokerage Promotions – June 2022

  Current Deals

  June 10, 2022

  Temperatures aren’t the only things rising this summer. Deals and promotions activity looks like it is heating up as commission-free trading has found its way into the larger bank-owned online brokers in one form or another.

  Read More >

• 

  Online Brokerage Promotions – May 2022

  Current Deals

  May 01, 2022

  Online brokerage promotions in May were slim except for one bank-owned brokerage which is leaning into lowering interest rates on margin lending at a time when rates are rising. Get the latest news on online brokerage offers and why there are likely to be more deals on the horizon as competition intensifies..

  Read More >