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I am looking forward to invest my annual saving that should be roughly $25,000 and I am wondering if I should go with Questrade with their low trade cost per transaction ot TD Waterhouse?

I am not going to do a lot of transaction during the year and I am on-track to invest at least $25,000/year. On one hand, I like the fact that Questrade is cheap and very user friendly, but I heard that their customer service is not that great. On the other hand, I like the fact that TD Waterhouse has a lot to offer and is a well-known and respected company...

Any thoughts on that one?
 

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TD Waterhouse or Questrade

Personally, I'm a fan of Waterhouse. User-friendly interface and good customer service (at least my experiences have been).

That said, if you're going to be a very active trader; multiple trades per month, go with the brokerage that charges you the least in transactions fees (for now; Questrade).

Only until you have household assets over $100K can you reduce your fees with Waterhouse ($9.95/transaction).
 

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TDW has annual, quarterly, data fees, higher fees all around etc and some fluff that Questrade does not

Questrade is cheaper all around and has real capabilities that TDW does not

If you don't trade a lot and you don't have +100k I don't see the dilemma? If you were an active trader I could understand maybe paying $$ for less capability and a respected company..
 

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I'm with TDWH now, and I'm considering a switch to Questrade. I'm mostly annoyed with TDWH's high foreign exchange charge (2.5% on each side), and the RRSP account cannot store USD. Yes, I can call them and tell them to "wash trade", but why should I have to do that?

Aside from that, I find they have excellent service, and knowledgable staff. I don't know what level of service Questrade provides.
 

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As someone who doesn't phone their brokerage very often, I'm not too concerned about customer service. I've always found Questrade CS to be pretty good, although I have noticed that they are taking longer to answer the phone.

You are looking at $29/trade at TD vs $5 + ecn fees at Questrade (let's assume $6/trade). Once you have $100k, then the trades will be $10.

If the TD account is non-reg then there is a $50 annual fee.

In your case, Questrade is quite a bit cheaper for the first few years. There is a less of a difference once you qualify for the cheaper trades.
 

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Aside from that, I find they have excellent service, and knowledgable staff. I don't know what level of service Questrade provides.

They answer any of my questions on chat within minutes

I login, I put in a limit order, I log out. Do my research and portfolio monitoring on Google with free real time data, which integrates with everything else Google for free

Not sure what other service I'm missing? I was with J.D. Power's #2 and saw nothing special. Lots of fancy asset allocators and fluff. No USD in RRSP, no Gold (not that I hold that) but in fact less substantial capability for much higher price
 

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Why not have both?

Neither of the accounts cost money to maintain.

I use Questrade for trading, and TD Waterhouse for research. For example, the ex-div date for stocks are more accurate in TD waterhouse than Questrade.

I've been using Questrade for more than 1.5 years. You can't beat $4.95/trade. That is absolutely awesome and it's as cheap as what the Americans can pay.

Questrade always has a foreign exchange desk that can give you good rates.

The customer services sucks and is incompetent but once you get your account registered, you're pretty much set. I use the online messaging service for help and they are generally helpful.
 

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In your case, Questrade is quite a bit cheaper for the first few years. There is a less of a difference once you qualify for the cheaper trades.
If I reach $100k, and TDW comes out with an iPhone/Andriod app before Questrade, I may switch. I can see TDW getting some customers this way

If Questrade comes out with good apps first or at least promises them first...
 

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Ah ok, I just remembered a redeeming quality of TDWH. They offer very low fee index mutual funds called the "TD e-series". Their Canadian index mutual fund has 0.31% MER, which is AFAIK the lowest in Canada. I don't think the TD e-series is available on Questrade.

If you intend to follow a couch potato portfolio, with dollar cost averaging, TD e-series is (at least for the 1st year) more cost efficient than Questrade.
 

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Ah ok, I just remembered a redeeming quality of TDWH. They offer very low fee index mutual funds called the "TD e-series". Their Canadian index mutual fund has 0.31% MER, which is AFAIK the lowest in Canada. I don't think the TD e-series is available on Questrade.

If you intend to follow a couch potato portfolio, with dollar cost averaging, TD e-series is (at least for the 1st year) more cost efficient than Questrade.
Yes and with their "pre authorized purchase plan" you can make free contributions, minimum $25 per fund. I believe the matching ETF's MER is not to far from that.
 

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I login, I put in a limit order, I log out. Do my research and portfolio monitoring on Google with free real time data, which integrates with everything else Google for free
I do the exact same, but also have e series funds on the waterhouse side too. I Love google portfolios.
 

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oh my. What's all this about tdw annual quarterly & data fees. Data fees, is it now. What exactly are tdw data fees. What's all this about if the TD account is non-reg then there is a $50 annual fee. And what's all this about the vast array of tdw research services - in themselves worth easily several thousand $ per annum - being fluff.

i could be wrong on this, but doesn't questrade charge for real-time quotes.

the real reason in my view to be concerned about questrade, jitney & all of the other small privately-owned onliners is that we are investing in perilous times. World as we know it nearly collapsed just over a year ago. People have forgotten quickly, but another meltdown could occur. Extremes are becoming the norm. We don't know the capitalization of any of these small private firms. We don't know whose pockets they have access to, if any, if another crisis appears. All we know is that they meet exchange requirements.

IB is a slightly different case, in my view, since it is a publicly traded company and its metrics are known.

i don't know about others, but i trade frequently. TDW has the best rating for speed & perfection in order execution in canada. I like the fact that, if a rare order here & there gets into trouble - not ever td's fault btw - a phone call to rescue it takes only a couple minutes.

the OP said he was going to add 25k per annum. At that rate he'd be up to the tdw minimum for cheap commish - 100k - in less than 4 years. By that time tdw will have its new fast international multi-currency platform up & running.

oh, and don't ever pay any broker or bank a fee to exchange CAD/USD. Do the gambit. There are all kinds of variations & half-gambits, like owning canadian blue chips long & selling their options short in US markets, that will raise fee-free cash in the opposite currency.

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I don't trade much so the $9.95 TDW fee is fine by me-I pay no other fees. service seems fine. I like the integration of banking and brokerage I get at TD. I personally would not want to use a small brokerage who might screw something big up then couldn't afford to make good.
 

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the real reason in my view to be concerned about questrade, jitney & all of the other small privately-owned onliners is that we are investing in perilous times. World as we know it nearly collapsed just over a year ago. People have forgotten quickly, but another meltdown could occur. Extremes are becoming the norm. We don't know the capitalization of any of these small private firms. We don't know whose pockets they have access to, if any, if another crisis appears. All we know is that they meet exchange requirements.
OP also said he is only going to trade rarely. The question is: Are savings of $200 to $250 per year for 4 years worth any potential hassles? My personal opinion is it is not and I speak from personal experience. YMMV.
 

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Discussion Starter #17
OP also said he is only going to trade rarely. The question is: Are savings of $200 to $250 per year for 4 years worth any potential hassles? My personal opinion is it is not and I speak from personal experience. YMMV.
So Td Waterhouse or Questrade?

If in a 4 year range I can get the $100,000 they are asking for so I can lower the fee from $29.95 to $9.95, should I stick with TDW? I am planning on investing around $6,000 per quarter for a total of around $25,000/year. I do not think I will do that many transactions... So it is really worth starting with Questrade and then transfer to TDW along the way?
 

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So Td Waterhouse or Questrade?
How many transactions are you planning to do? Then see for yourself if the potential savings are worth the hassles you might encounter at Questrade (keep in mind that some like Mike have positive experience with them but I've had nothing but negative experience). It's a question only you can answer. Some may think that the savings are worth the hassles. I don't. Your opinion might be different.
 

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So Td Waterhouse or Questrade?

If in a 4 year range I can get the $100,000 they are asking for so I can lower the fee from $29.95 to $9.95, should I stick with TDW? I am planning on investing around $6,000 per quarter for a total of around $25,000/year. I do not think I will do that many transactions... So it is really worth starting with Questrade and then transfer to TDW along the way?
You've already spent too much time on the analysis - make a decision and move on.

Questrade is cheaper, but customer service isn't as good. TD is more expensive, but customer service is better. What are you willing to pay for?
 

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You've already spent too much time on the analysis - make a decision and move on.

Questrade is cheaper, but customer service isn't as good. TD is more expensive, but customer service is better. What are you willing to pay for?

I think you are downplaying the difference in fees

Even if the OP had $100k chances are each transaction will still cost over twice as much. Personally I don't trade over 495 shares nor pay more than pennies in ECN. On top of that you have to do wash trades over the phone? Personally I never buy and sell at the same instant, what a horrible restriction. The alternative is to pay additional exchange fees

oh my. What's all this about tdw annual quarterly & data fees. Data fees, is it now. What exactly are tdw data fees. What's all this about if the TD account is non-reg then there is a $50 annual fee. And what's all this about the vast array of tdw research services - in themselves worth easily several thousand $ per annum - being fluff.
Quarterly inactivity fees and annual fees if heaven forbid you don't make a trade or there is a crash in the market like 2008, dropping you below the required balance. What a pain

The resources are fluff to most people I think. What value does it provide? I would happily pay 4 times the commissions for the privilege of special information that would improve my net profit. Unless they have a crystal ball I find it hard to believe they know more than Google?

I would love to switch to TDW actually, but I think it's hard to justify
 
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