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moneysense.ca, 15/07/08
News Alert: E*Trade Canada acquired by Scotia Bank
E*Trade Financial (ETFC), which finds itself caught in the credit crisis, has decided to raise cash by selling its Canadian unit to Scotiabank. It would be interesting to see what happens when the deal closes in the the fall of this year. E*Trade currently has significantly better pricing than ScotiaMcLeod Direct: $9.99 for accounts valued more than $50K and $19.99 otherwise and a no-fee RRSP compared to a flat $28.95 commission (for under 1000 shares) and a RRSP administration fee of $100 for accounts valued under $25K. I hope that E*Trade Canada’s fate doesn’t turn out to similar to Ameritrade Canada’s, whose customers saw their commissions increase from $9.99 to $29.99 after being acquired by TD Waterhouse.
moneysense.ca, 15/07/08
As an E-Trade customer I’ll be heading for the exits if my fees increase. There’s no reason in today’s market to be charging ScotiaMcLeod’s rates. Their slogan should be “We’re richer than you think”.
Warren: That’s pretty funny! Does anyone know if TradeFreedom’s commissions and fees increased after it got acquired by Scotia?
TradeFreedom’s commissions haven’t changed since the acquisition AFAIK.
Thanks FT!
Wasn’t all these online Trading Sites supposed to get you away from paying these High fee’s from the big banks?
This is an interesting move by ScotiaBank. Just about a year ago they acquired TradeFreedom[1] (another online discount brokerage) to operate under the ScotiaMcLeod Direct Investing arm of their business. I’ve done business with TradeFreedom before and after the acquisition, and so far have not seen or received any notices of changes to TradeFreedom’s original fee structure. However, it does beg the question why ScotiaBank is buying up these online discount brokerages. Are the big banks trying to dry up online discount brokerage market and slap us with higher fees in the future?
I wonder which of the Canadian online discount brokerages are still independently owned.
[1] http://www.tradefreedom.com/en/home/pressreleases/pressrelease.asp?id=14
I have looked at these 6 banks.
Scotia Bank, HSBC, TD Waterhouse, CIBC Investors Edge, RBC Direct Investing, and BMO Investor Line.
Not sure of what Scotia Bank and HSBC offer.
- TD Waterhouse offers $100,000 investment and $9.99
trades and 3 months free commission up to $1500 value=
150 free trades. Account must have $100,000 on the 4th
business day of each month to avoid fees.
- RBC Direct Investing offers $100,000 investment and
$9.99 trades. Account must have $100,000 at the end of
each month to avoid fees. Until Friday Nov 28th RBC Direct Investing is offering 1% back= $250.00 paid after 6 months on a $25,000 switch and will cover your transfer fee as well.
- BMO Investor Line offers $100,000 investment and $9.99
trades and $300 credit in cash into your account after 6
months. Account must have $100,000 to avoid fees.
- CIBC Investors Edge on $10,000 investment offers a
package that contains 50 trades that cost $395 during the
calendar year which is $7.90 per trade and after 50 trades
$6.90 per trade. Account must have $10,000 value during
August and September to avoid annual fees. Rest of year you
can zero in the account.
Based on these comparisons I feel that CIBC Investors Edge offers me the best deal and the least hassle.
What do you all think? Please give me your input. I want your opinion and feedback. If you know of better deals or if I have made any errors please let me know.
Thank you
I agreed looked at these 6 banks
“Scotia Bank, HSBC, TD Waterhouse, CIBC Investors Edge, RBC Direct Investing, and BMO Investor Line”