Qtrade Review

While in line to use the automated teller machine, I overheard two people discussing their most recent investments on the Canadian stock markets. “I don’t need to keep my brokerage account with XYZ bank. I’ll be transferring my assets to Qtrade,” concluded one of them. Why Qtrade? Here’s a look at an industry leader.

How does Qtrade differ from the competition?

At first glance, the website is clean and inviting. The home page dashboard is beautiful and modern. It has been redesigned again recently, and its simplified design provides easy navigation. The mobile application (iOS and Android) is comprehensive. You can even keep an eye on your portfolio at all times through your Apple Watch.

Qtrade has built up a reputation for providing fast and efficient customer service over the years, while providing a low-cost experience for the independent investor. You can communicate with agents by phone, email or chat.

The portfolio rating?

This tool gives you a bit of a second opinion on your portfolio. It is awarded a score out of 100, based on five criteria (see below). You can use the information provided to compare your portfolio to your benchmarks. This is convenient to invest with more confidence and manage your risk exposure. Each of the following criteria is evaluated:

1. Stop-loss protection

2. Performance

3. Diversification

4. Income

5. Fees

It’s very easy to access. From the “My accounts” menu, choose the “Portfolio” sub-menu. The “Portfolio Quote” tab is the ninth screen available, on the far right.

The portfolio simulator?

This functionality complements the previous one. The simulator helps investors see how the possible addition of an Exchange Traded Fund (ETF), a stock or a bond would modify not only their portfolio composition but any changes to its associated score.?

The portfolio creator?

Based on the answers given to a series of questions, Qtrade can build you a tailor-made portfolio composed exclusively of ETFs. For those budding mathematicians, it will show you the risk-adjusted return of your hypothetical portfolio through the use of advanced ratios.

To access this, choose the sequence: Investment Tools, Portfolio Analysis and Calculators, and then Portfolio Creator. You’ll need to take the quiz to build an ETF portfolio that’s right for you.

Dividend reinvestment

The dividend reinvestment plan (DRIP) is an option likely to help the shareholder build wealth over time. For each distribution received, the issuing company automatically purchases shares of the security at the current price, sometimes discounted by between 2% and 5%, without commission fees. Some online brokers, including Qtrade, make it easy to register.?

Does the Qtrade platform have any weak points?

Yes, of course! Nothing is perfect, but the desire to improve, year after year, the user experience makes up for any inconvenience. Here are some points that could be improved or revised.

Few analyst reports

Analyst reports are less common on Qtrade than on platforms offered by major Canadian banks, such as Scotia iTrade. It nevertheless offers free recommendations from analysts at Morningstar, whose reports are updated at the beginning of each month. Remember that the independent investor has access to several other sources of information to turn to when making investment decisions.?

Inactivity costs for less-active investors

The less-active investor should pay attention to the price list in force, in order to avoid incurring quarterly fixed costs, which are easy to avoid.

What are Qtrade’s fees?

The base fee schedule is fair, with a base commission of $8.75 per transaction. If you have a nest egg of more than $500,000 in your account or if you make more than 150 transactions per quarter, you will benefit from a reduced commission of $6.95. Account holders between the ages of 18 and 30 can also take advantage of a reduced commission rate of $7.75, with no minimum balance required or quarterly fees, on the sole condition that they set up a recurring deposit of more than $50 per month.

Qtrade gives you the ability to buy or sell 100 ETFs for free. This is a distinct advantage over the competition, since other brokerage firms, such as Questrade, also offer free ETF purchases, but charge a traditional commission when you sell or when you rebalance your portfolio.

You can therefore gain exposure to sought-after markets and to various ETF providers, such as Horizons, iShares, Vanguard, PowerShares and Desjardins, without paying a commission on eligible ETFs.?

This article is the shortened version of an article originally published on Hardbacon.ca by Dominique Lamy under the title "Qtrade Review".