Tuesday, June 1, 2021

Questrade Online Brokerage Introduction

Updated on Jun 1, 2021: You can use Questrade Instant deposit to instantly fund your Self-directed or Questwealth account using your Canadian Visa Debit card up to $3,500 per day (or your bank’s daily transaction limit). Making an instant deposit is easy and takes just a few minutes and then you can immediately start putting your money to work. To set up a Visa Debit instant deposit for the first time, follow these easy steps: Log in to your Questrade account. In the top navigation bar, hover over FUNDING, and click Instant deposit in the drop-down menu. Set up your instant deposit on the New deposit tab. On this page, you’ll see four main sections to complete:
  1. To Questrade Account: Select the Questrade account you want to transfer your funds into.
  2. From debit card: Select the Visa Debit card you wish to send your money from. If you have not added a card yet, you can add one by clicking ADD NEW DEBIT CARD.
  3. ADD NEW DEBIT CARD: Click here to link a new Visa Debit card to your account.
  4. Amount: Enter the dollar amount of your deposit.

Questrade is one of my favorite Canadian online trading platforms. I have my TFSA Self-directed Investing Account at Questrade. Questrade opened its doors in 1999 and it is one of Canada's fastest growing online brokerages. Questrade is based in Toronto, Canada. They support all types of accounts : TFSA, RRSP, Margin, RRIF, LIRA etc.

If you are interested in Questrade, please use our referral link: http://www.questrade.com/?refid=jpzzuj4s , or offer code "jpzzuj4s" to open a new Questrade account. You will receive $50 trade commission rebate (for Questrade Self-directed Investing Account) or $10,000 Managed free for a year (for Questrade Wealth Management Account). With self-directed investing, you're managing the investments yourself. With Questwealth Portfolios, your investments are managed by Questrade team of experts.

Questrade is a legitimate and reputable independent brokerage you can trust. Questrade, Inc. is a registered investment dealer, a member of the Investment Industry Regulatory Organization of Canada (IIROC) and a member of the Canadian Investor Protection Fund (CIPF). For an individual holding an account or accounts with a member firm, the limits on CIPF protection are generally as follows:
  • $1 million for all general accounts combined (such as cash accounts, margin accounts and TFSAs), plus
  •  $1 million for all registered retirement accounts combined (such as RRSPs, RRIFs and LIFs), plus
  •  $1 million for all registered education savings plans (RESPs) combined where the client is the subscriber of the plan.

And, Questrade also protects your accounts (for both self-directed account and managed account) with an additional $10 million in private insurance. This insurance covers you in case Questrade goes out of business.

While there's many reasons to invest at Questrade, the biggest one is low fees: Transaction fees list & Administrative fees list. Questrade does not charge annual account fees for self-directed accounts. As of October 1, 2020, Questrade will no longer be charging inactivity fees on any accounts. 

However, these accounts may be subject to a quarterly inactivity fee of $24.95 CAD. It’s easy to keep your account active. Here are some of the ways in which you can do it:
  1. Place one trade in the quarter (January–March; April–June; July–September; October–December). If you have multiple self-directed accounts, place a trade in one of the accounts. You’re covered if you trade a stock, buy (commission-free) or sell an ETF, an option, or any other exchange-listed securities
  2. Maintain total equity across all your accounts of $1,000 CAD or more—that includes both self-directed and Questwealth accounts (this requirement is easy...)
  3. Subscribe to a market data package
  4. Deposit $150 in the quarter. If you have multiple self-directed accounts, deposit $150 to one account or a total of $150 across all accounts
You only need 1 of these 4 requirements to keep your account active and avoid inactivity fees. For example, if the total equity in your accounts is over $1,000 CAD, you can keep your account active and not incur any inactivity charges. And, good news if you're 25 or younger: you’re exempt from the inactivity fee.

One thing I like Questrade most is that you can buy any North American-listed ETF commission free. Here is the workflow to buy ETF in Questrade (we take Vanguard Growth ETF "VGRO" as an example here):

1) Log in your Questrade online account during normal trading hours, then click "TRADE"

2) Search for "VGRO" and Questrade will find this ETF for you. Then choose the order type "Limit"

3) Click the circle-arrow sign to see the updated price. Input the "Quantity" and "Limit price". You can put a "Limit price" that is one cent higher than the "Ask price". Set the price effective "Duration" as "Day". Then click "Buy".

4) Review your order details, make sure that you have enough fund in your account and click "Send Order".

As you can see abvoe, Questrade still charged $0.01 CAD fee, which is the ECN fee (Electronic Communication Networks):

ECN fees are charged when placing a buy or sell orders that are considered to be “removing liquidity” or in other words when placing orders that will likely to be executed right away. This includes market orders, where the trader accepts the current best available price in the market when buying or selling shares or when placing marketable limit orders where investors specify a limit price that is either above the ask (when buying) or below the bid (when selling) typically causing the order to fill immediately.

On the other hand, when placing non-marketable limit orders where the limit price is lower than the Ask (when buying) or higher than the Bid (when selling), your order is likely to be longer in the queue waiting for somebody to agree to the price being offered. By doing that, you’re considered to be “adding liquidity” to the market, and therefore ECN will not apply in that scenario.

If you are interested in Questrade, please use our referral link: http://www.questrade.com/?refid=jpzzuj4s , or offer code "jpzzuj4s" to open a new Questrade account. You will receive $50 trade commission rebate (for Questrade Self-directed Investing Account) or $10,000 Managed free for a year (for Questrade Wealth Management Account) by using this referral link/code.

Then you need to fill the online forms and upload the required documents for ID verification purpose). The entire process can be completed online. Once your account is open, you need to initiate an account transfer or transfer funds. Questrade offers ten different ways to fund your account (click here). The method I like is online banking bill payment (the same way that you pay your utility bills with online banking bill payment).

And, you can transfer any account to Questrade from another financial institution (click "FUNDING" => "Transfer account to Questrade" => Fill in all the required information), regardless of the balance, and get your transfer fees rebated (maximum rebate $150/account). No limit to the number of accounts you bring over. For this transfer fees rebate, submit a statement from your financial institution displaying the transfer fees incurred within 60 days of the transfer request being submitted to Questrade (click "ACCOUNT MANAGEMENT" => Click "Upload documents" => Select "Rebate" as "Document Type" => Fill in all the required information => Click "Submit").

Thanks for reading. Please let us know if you have any comments on Questrade. We will update our post regularly.

Updated on Oct 8, 2020: As of October 1, 2020, Questrade will no longer be charging inactivity fees on any accounts. 

Updated on Mar 31, 2021: QuestMortgage is a new mortgage service. QuestMortgage is only available to existing Questrade customers. You can apply it easily online. The interest rate you receive during your application will be held for 120 days from the date your application is approved. If you want to know more about this mortgage service, please visit their website: https://www.questrade.com/questmortgage/home