Critique of Questrade Investment Platform

Critique of Questrade Investment Platform

Canadian Broker Questrade: A Comprehensive Guide for Savvy Investors

Catering to the financial needs of Canadian citizens, Questrade is a Canadian broker that serves as a viable alternative to trading and investing with the traditional big banks, established back in 1999. Already invested with another Canadian broker/financial institution? Transfer your account to Questrade seamlessly. Ready to dive into the world of Questrade? Simply open an account on their web platform.

What's on the table with Questrade? They offer a multitude of investments, including stocks, options, bonds, exchange-traded funds (ETFs), mutual funds, guaranteed investment certificates (GICs), international equities, access to initial public offerings (IPOs), and precious metal purchases. For those spicing up their portfolio with contracts for differences (CFDs) and forex trading, a separate platform is required, although it's readily available.

A Canadian address is essential when opening an account, as Questrade is unable to hold regular trading accounts for U.S. residents, even if they are Canadian citizens.

Who's the Perfect Fit?

Questrade is an ideal choice for Canadian citizens with eyes set on breaking free from the high fees and rigid restrictions imposed by banking institutions. This versatile broker offers a wealth of flexibility to Canadian investors, boasting lower fees, an automated portfolio builder, and a user-friendly interface.

Get ready to enjoy some of the following benefits:

1. No fees for tax-free savings accounts (TFSA) or registered retirement savings plans (RRSP).
2. An effortless, easy-to-navigate website and mobile app.
3. Commission-free trading for stocks, ETFs, and options.
4. Lacking in extensive research offerings.
5. Real-time quotes streaming only accessible with a subscription.

Perks Expounded

1. Some Canadian brokers may impose fees on TFSA and RRSP accounts. Bypassing these fees is a perk that Questrade rises above its peers by offering.
2. Both the website and mobile app feature user-friendly, similar layouts, ensuring a smooth transition for users when browsing between them.
3. Questrade offers commission-free trading for stocks, ETFs, and options, along with a nominal fee of $0.99 per options contract.

Shortcomings Illuminated

1. The miss on thorough research features for its screeners. These screeners are limited to straightforward stock and options criteria, such as prices, volumes, volatility, and fundamentals, devoid of any technical or statistical criteria.
2. Streaming real-time quotes are available, but they come at a fee ranging from $9.95 CAD per month for limited streaming data to $44.95 for Level 2 US or Canadian data.

Easy Going, All the Way

Kicking off your Questrade venture presents a hassle-free experience. Sign up for a new account on the Questrade website, and you'll be guided through a series of videos covering the various platforms. Transferring an account from another brokerage or bank? Questrade will reimburse up to $150 in transfer fees.

The platforms offer an intuitive and accessible trading experience, catering to both novice and experienced investors. Navigate through two desktop trading platforms—Questrade Trading and IQ Edge—or access their mobile app. The Questrade Trading platform features basic charting, quotes, watchlists, and research tools with some customization options. IQ Edge, a downloadable platform tailored for active traders, offers more extensive research features, advanced order types, and highly customizable layouts. Quotes are snapshot-based, meaning you'll need to manually refresh the screen for updates unless you opt for an additional fee-based streaming service.

The mobile app replicates the web version's experience while ensuring a device-friendly layout. To access forex and CFDs, you'll need to utilize a different platform, since these asset classes cannot be traded on either Questrade Trading or IQ Edge.

Range of Opportunities Expanded

Questrade clients can get their hands on a variety of asset classes, although some may require the use of a separate platform.

1. Stocks, long and short.
2. Mutual funds.
3. Bonds, with a $5,000 minimum when traded via live broker.
4. Precious metals.
5. Simple and multi-leg options.
6. Robo-advisory (Questwealth Portfolios) on a separate platform.
7. Some international equities can be traded via live broker.
8. Forex and CFDs on a separate platform.
9. IPOs (with a $5,000 minimum).

A Control-Freak's Delight

Questrade clients can place market, limit, stop limit, trailing stop, and bracket orders on all platforms. IQ Edge introduces an array of conditional orders, well beyond what's available on the web and mobile platforms.

No Secrets, No Surprises

Questrade keeps its clients in the loop regarding costs. Commission-free trades are the norm for stocks, ETFs, and options, with an options per contract fee of $0.99 and an options exercise fee of $24.95, dropping to zero for options assignments. Mutual fund fees are $9.95 per transaction, and margin interest ranges from CAD prime 4.95% to USD prime 7.50%. International equities incur a fee of 1% of the trade value, with a minimum of $195.00 plus other applicable fees. Account closure carries no fee, and transferring an account will cost $150 for full and partial transfers. Wire fees amount to $20 CAD, $30 USD, or $40 international, while checks will set you back $50.

Incentives Abound

Owning a Questrade account presents numerous advantages.

• No portfolio margining is offered.
• No stock loan program.
• No interest is paid on cash balances.
• It's possible to enroll in DRIP (dividend reinvestment) plans.
• Instant deposits of up to $10,000 are available, contingent upon your financial institution's limits.
• Questrade is the only $0 commission real-time fractional shares broker in Canada.
• With extensive premarket and post-market hours, investors can jump on opportunities at convenient times.

Dig Deeper

Questrade's platforms revolve around a user-friendly interface that displays real-time snapshot balances, buying power, positions, margin balance, and profit and loss. Customize these reports by adding or deleting criteria as needed. The account tab on the browser-based platform displays open orders, executions, and activity such as dividends and deposits.

On IQ Edge, you can customize the widgets to showcase all your account activity and balances. Unfortunately, the platform does not feature a built-in trading journal, although you can choose to subscribe to a third-party application if you'd like to take advantage of this feature. IQ Edge provides more insight into a client's portfolio, with analysis that delves into sector, asset type, industry, and currency exposure.

Knowledge is Power

The Questrade platforms are highly accessible, yet basic information might leave seasoned investors yearning for more in-depth knowledge. While webinars and live events are scarce, the Questrade YouTube page does offer some informative videos, free for all to access. The downside? The videos aren't organized in an easily searchable manner. They can only be found in reverse chronological order.

Customer Support

Questrade prides itself on being accessible to its valued customers, with a phone line and online chat available from Monday to Friday, 7:30 AM to 8:00 PM Eastern Time, and Saturday & Sunday, 10:00 AM to 4:00 PM Eastern Time. Live brokers are on hand during market hours, and email support will get back to you within 1-3 days.

Security, Guaranteed

Questrade takes its customer's security seriously, implementing several measures to ensure a safe and secure trading environment. Important security features include:

• Defining a PIN for two-factor authentication.
• Biometric entry enabled for mobile apps.
• Online security guarantee that reimburses customers for unauthorized transactions.
• Registration with the Investment Industry Regulatory Organization of Canada (IIROC).
• Customer accounts are protected by the Canadian Investor Protection Fund (CIPF) up to $10 million per account.

Final Word

Although the commission-free trading wave didn't sweep across Canada's borders, Questrade has set itself apart with lower fees compared to many other Canadian brokers and banks. This user-friendly platform caters to fundamental investors, with numerous useful tools and easy-to-use interfaces that are adept at serving the needs of both long-term investors and sophisticated traders.

1. For those seeking to supplement their traditional finance portfolio with innovative trends, Questrade offers access to DeFi (Decentralized Finance) through partnerships with various projects.
2. For traders interested in technical analysis, Questrade provides a range of charting tools on IQ Edge, enabling in-depth market study and trend identification.
3. In the realm of business strategy, Questrade's commission-free trading, lower fees, and user-friendly interface can contribute significantly to the cost-effective management of trading and investing activities.

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