Here's help choosing an online broker in Canada

ONLINE BROKER RANKINGS

The best online brokerages -- and the worst

ROB CARRICK

Globe and Mail Update

Published Tuesday, Nov. 09, 2010 6:27PM EST

Last updated Friday, Nov. 12, 2010 9:20AM EST

Here's an expanded look at the criteria used in this ranking. This is not an exhaustive list, but rather a summary of important factors.

Scroll down the page to see a table of the results.

1) Cost (25/100)

• Stock trading commissions, including the account asset thresholds at which charges are discounted
• Applicability of ECN (electronic communication network) fees
• Mutual fund trading commissions, including buy, sell and early redemption fees
• Bond trading commissions, including the availability of discount bond pricing
• Inactivity and low account balance fees
• Annual administration fees for registered accounts, including account size needed to avoid fees

2) Trading (25/100)

• The variety of orders that can be placed online, including trailing stops and short sales
• Access to global stock markets
• Availability of real-time updates of cash levels and buying power
• Availability of U.S.-dollar RRSPs
• Selection of investments available online, including GICs, high-yield bonds and guided portfolios.

3) Tools (20/100)

• Breadth and utility of equity, fund and ETF research
• Screening tools
• Financial planning tools
• Availability of an ETF centre
• Features for newcomers to online investing, notably demo videos and practice accounts

4.) Account Information (15/100)

• Availability of personalized, long-term data on account rates of return
• Asset allocation analysis
• Intra-day account updating
• Availability of online account statements, trade confirmation slips

5.) Customer Satisfaction (10/100)

• Our GlobeInvestor team handled this by distributing a short questionnaire to readers by e-mail. We ended up with 1,279 responses. Respondents were asked to identify the broker they used most often, then rank how happy they were and indicate whether they would recommend the firm.

6.) Website (5/100)

• Is a security guarantee offered?
• Utility of site for updating clients on new features

For more rankings, see:

• The 12th annual online broker rankings
• Who’s charging more? Comparing Canada’s online brokerages by commission
• Going global: Comparing Canada’s online brokerages by foreign exchange charges
• Results from The Globe’s online brokerage satisfaction survey

Breaking down the brokers

Rank	Broker	Costs (/25)	Trading (/25)	Tools (/20)	Account Info (/15)	Customer Satisfaction (/10)	Website (/5)	2010 Score	2009 Score
1	Qtrade Investor	20.5	20	14	13.5	9.6	3.5	81.1	77.4
2	RBC Direct Investing	17	16	17	14	8.3	3	75.3	70.8
3	BMO InvestorLine	14	16	13	15	8.5	4	70.5	74.1
4	TD Waterhouse	15	17	17	8	9.1	4	70.1	70
5	Credential Direct	18.5	14	11.5	13.5	8.5	4	70	74.8
6	Scotia iTrade	22	16	8.5	7	8	4.5	66	71.6
7	Questrade	22	15	8	4	9	1	59	58.6
8	CIBC Investor's Edge	19	14.5	11	4.5	6.8	3	58.8	60.3
9	Disnat (Classic)	13.5	14	12	7.5	9.2	2	58.2	66.1
10	National Bank Direct Brokerage	10	11	8	11	8.3	4	52.3	62.7
11	ScotiaMcLeod Direct Investing	11.5	10	12	5	8	2	48.5	58.6
12	HSBC InvestDirect	13	13	7	2.5	6.5	3	45	56.2
13	Virtual Brokers	21	11	5	5	n/a	3.5	Incomplete	n/a

President Obama

President Obama is not my favorite person, and I did not vote for him because of his left leaning tendencies. His voting as a senator was very left - and I was aware of this prior to his election. However, I have to say that he gave a memorial speech tonight for those killed in Tuscon, AZ, that was both practical and beautiful, both healing and spiritual, it was a talk that was given, seemingly, from his heart. It was personal, and real. I hope that it was not written for him, because I believe right now that he may be a better person that I once thought, and that he may still hold the possibility of bringing the country together - he made a lot of sense tonight. I still do not want my country to go so far left...I hope for and will vote for a more conservative approach, but I have a new respect for the President, that I am grateful for.