Toronto Star reports (bypass registration here) that the ongoing price war among discount brokerages in the U.S. won’t migrate to Canada anytime soon. The lame excuse the brokerages offer is they offer “a broader package of price, product and service”. Don’t believe a word of it. The real reason is very simple: more competition in the U.S.

Personally, I hold accounts with Royal Bank’s Action Direct and Ameritrade Canada and have held accounts with E*Trade Canada in the past. Ameritrade offers cheaper U.S. equity trades for $10.99 and provides free access to S&P stock reports. The competition charges more per trade for less product and little service.
(Full Disclosure: I own shares in E*Trade and TD Bank).

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