Categories
Investors

Should you move your brokerage account to benefit from zero commissions? [Video]

Watch/Read More

Zero-commission trading was already available from Wealthsimple Trade prior to National Bank Direct Brokerage eliminating commissions for trading stocks and ETFs.

Jesse Johnston/The Canadian Press

Rival Canadian online brokerage executives must have cringed when National Bank Direct Brokerage eliminated commissions for trading stocks and ETFs this week.

In contrast to the U.S. market, Canadian brokers are loath to compete aggressively on price. The lack of response to NBDB’s move by competitors so far is telling.

Zero-commission trading was already available from Wealthsimple Trade, an app designed for mobile devices but also available in a web version. NBDB is the first traditional online broker to eliminate trading costs that range from $1.99 to $9.99 per buy or sell transaction at other mainstream brokers.

Story continues below advertisement

Canadians have been primed for zero commissions since major players in the U.S. online brokerage industry made the move two years ago. In the interim, investors flocked to online brokers after stocks …