This month’s deals activity is unusual. What would normally be a quiet time for online brokerage promos has turned into a time of continued activity. Read more about the important deal extensions from RBC Direct Investing and Qtrade Direct Investing.
Unusual times are upon us. In the world of online brokerages, the beginning of March has historically been a turning point where RSP promotional offers expire, and the industry collectively takes a breath after their busiest stretch in the year. But this year, things are a bit different.
What unusual things that we’ve witness take place are an increase in cash back amounts from Qtrade Direct Investing coupled with extensions, again from Qtrade as well as RBC Direct Investing. And perhaps it is a sign of exactly how intense competition has become, but the RBC Direct Investing and Qtrade Direct Investing promos are at historic high levels. Another, for good measure, are longer deadlines for offers.
So, while we don’t have any new offers (yet) to report on, the extensions of offers from big names, like RBC Direct Investing and Qtrade Direct Investing, and longer durations of offers from Scotia iTRADE, would (or should) compel brokerages without an active promotion to consider launching an offer for the spring or through the summer.
In part, incumbent online brokerages – and especially bank-owned online brokerages – now need to factor into their promotional mix a world in which zero-commission trading from firms like National Bank Direct Brokerage (as well as Desjardins Online Brokerage) are gaining ground, and TD Easy Trade now exists. The new self-directed investor service from TD offers 50 commission-free trades per year to clients, and our recent in-depth analysis of TD Easy Trade shows why it is of immediate concern to competing brokerages.
Again, typically this would be a quieter time for all but a handful of perpetually active online brokers, but there’s a clear signal that in many ways these are not usual times, especially in the realm of self-directed investing. One possible reason: younger investors.
This new and materially relevant group of investors has started to drive all manner of change among online brokerages in Canada, which could mean that there are a few more interesting touchpoints in the calendar year where we see promotional campaigns surface.
For the time being, we’ll keep an eye out for new deals and promotions, but if you don’t see one on our list of online brokerage deals, let us know!
Two big names are on the expired list: CIBC Investor’s Edge and TD Direct Investing.
CIBC Investor’s Edge cash back promotion officially wrapped up on March 1st, as did the ultra-competitive cash back offer from TD Direct Investing. For reference, check out February’s deals and promotions post for a comparison of cash back promotions from the 2022 RRSP season.
RBC Direct Investing made a huge move this RRSP season by offering 100 commission-free trades which are good for up to two years. Originally slated to expire at the end of March, this RBC Direct Investing free trade promotion has now been extended to the end of November.
Another important extension was from Qtrade Direct Investing. In addition to revising the cash back bonus amounts upwards (and applying rewards retroactively to people who signed up under the original bonus), they also extended this offer until the end of April.
No new offers to report on at this time.