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Questrade was founded in 1999 in Canada at the dawn of online stock trading. Its founder, entrepreneur Edward Kholodenko, immigrated to Canada from Ukraine. The broker is headquartered in Toronto. The aim of the company is to offer DIY investors a low-cost alternative to Canada’s large banks and brokerages. Questrade survived the dot-com crash that followed soon and later became the fastest growing online brokerage in the country.
In 2014, Questrade added pre-built investment portfolios to its product line with low fees especially for those traders who lack the skill to go the self-directed route. Today, Mr. Kholodenko is still in charge of the company. Questrade manages the assets of nearly $9 billion and sees around 50,000 new accounts opened each year.
The broker offers Canadian citizens an alternative to trading and investing with the big banks. If a trader already has a registered account with any Canadian broker or financial institution, he/she can transfer it to Questrade. If not, clients can open a Questrade account on their web platform. Questrade provides access to trading in stocks, options, bonds, exchange-traded funds (ETFs), and mutual funds. Besides, trading CFDs and currency pairs is also available, although it requires the use of a separate platform.
Range of offerings:
- Guaranteed investment contracts (GIC)
- International stocks
- Initial public offerings (IPO)
- Gold and silver
It is safe to trade with Questrade as the company is regulated both by the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). To protect the customers’ accounts, the company offers an additional $10 million in private insurance. What is more, the broker offers the so-called online security guarantee under which the company will reimburse customers for any unauthorized transactions in their Questrade account.
Therefore, Questrade is a good fit for self-directed investors who are comfortable with choosing and buying their own stocks, bonds, and other assets. At the same time, the company may be suitable for those traders who prefer to leave these decisions to а team of experts. So, the broker is popular with novice traders and skilled investors alike.
Trading conditions
Questrade clients can trade via desktop trading platforms and a mobile app. Besides, there is a separate platform for Forex and CFD trading.
Each platform features different functions:
1. Questrade Trading allows some customization of trading defaults as well as watchlist display and portfolio listing.
2. IQ Edge is a downloadable platform for active traders which is better customized than the web platform. IQ Edge has additional features, such as advanced order types, a hotkey function, charts with more tools, and advanced layouts that can be saved.
Notably, a separate platform is designed for Forex and CFD trading as these assets cannot be traded on either Questrade Trading or IQ Edge. This may seem inconvenient for those who trade multiple markets. The platform is equipped with advanced charting and provides access to more than 55 currency pairs as well as 8 CFDs.
All Questrade’s platforms are available as mobile apps, and the display can be adjusted to any device customers are using. Watchlists created on the web platform are also accessible from the mobile platform. To trade currencies and CFDs, clients should install the Questrade FX Global. While the two apps have similar functions, traders will need to use two different apps in order to trade multiple markets.
As for the costs, Questrade has two pricing models. Standard pricing is $0.01 per share with a minimum of $4.95 and a maximum of$9.95 per stock or transaction with ETF. The active trader pricing starts when a client purchases an Advanced Data Package.
Advanced Data Packages will cost 89.95 CAD for the Canadian package and 89.95 USD for the US package. Customers who generate more than $48.95 in monthly commissions can receive a $19.95 rebate on the package fees. A full rebate on package fees is given when a customer generates $399.95 in commissions in a month.
You can find more information about the costs of the company’s services on its official website.
As for depositing and withdrawal of funds, there are several options possible with Questrade, including wire transfers, money transfers, online banking, Interac, and stock certificates. However, the company does not accept credit cards.
Training
Education with Questrade includes webinars and live events which can be also found on the Questrade YouTube page. Although rarely released, the training videos are available to everyone for free. There are occasional new blog posts published, but these are not tagged what makes them difficult to locate.
Customers can find answers in the How To section of the Questrade website. For new traders, Questrade provides basic answers to such questions as how to place orders, what order types to use, and how to install the trading platforms.
Customer support
The customer support can be obtained via:
- phone line (available from 08:00 till 16:30 Eastern time)
- live chat
- FAQ on the website
- email (it takes from 1 to 3 days for a response).
Traders’ feedback
Traders mostly complain about fraudulent actions in stock trading, blocking of access to an account without any reason, and an inconvenient website. Besides, they are not satisfied with customer support and untimely update of balances and positions, as well as with difficulties in account opening.
Pros and cons
Pros:
- well-designed and easy-to-use web trading platform and mobile apps
- no fees for tax-free saving accounts (TFSA) and registered retirement savings plans (RRSP)
- relatively low trading fees compared to other Canadian brokers
- no portfolio margining
- wide array of useful tools for fundamental investors
- no interest on cash balance
- effective customer support through live chat, email, or free phone line with callback service
Cons:
- only Canadian citizens can hold an account with Questrade
- additional subscription at a cost of up to $89.95 a month is required for streaming data
- inactivity fee of $24.95 per quarter for accounts with $5,000 or less
- simple stock and options screener, no technical or statistical criteria
- large number of negative reviews
