Questrade

Is Questrade Legitimate? Is Questrade Safe and Insured Broker? Questrade BBB Rating



Is Questrade a Legitimate Firm?


Founded in 1999, Questrade, Inc. is Canada’s largest independent online brokerage. They offer individual self-directed accounts along with managed portfolios and wealth management programs for investors with large accounts. This makes Questrade comparable to online discount brokerages in the U.S. such as Charles Schwab, Fidelity, Vanguard, and Ally Invest.

Questrade features several trading and research platforms and offers trading in foreign currencies and precious metals. They offer a virtual trading program for thirty days and have a comprehensive array of investor education, news resources, and research tools. Finally, Questrade administers a family of eight proprietary Exchange Traded Funds (ETF) that track many popular U.S. indexes but are only available to Canadian accounts.


Is Questrade Safe?


With regard to safety, the company uses Extended Validation SSL certificate technology on its website and employs it in all aspects of its business. They constantly monitor and improve their software, hardware, and best practices.

Questrade is a legitimate Canadian company. The firm has won numerous industry awards including Dalbar’s #1 brokerage for excellence in investor statements. The company has been a recipient of the Canada’s Best Managed Company award since 2011. They’ve also ranked as the fastest-growing online brokerage by Investor Economics for three years in a row.


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Is Questrade Insured?


Questrade is a member of the Canadian Investor Protection Fund (CIPF). This is an institution similar to the Securities Investor Protection Corporation (SIPC) in the United States. However, the insurance limits per account are $1 million. There is no separate limit on the amount of cash that can be insured in each account.

The CIPF is sponsored by the Investment Industry Regulatory Organization of Canada (IIROC), which is comparable to the Financial Industry Regulatory Association (FINRA) in the United States. This adds legitimacy to Questrade as well as being the governing body for the CIPF. Any company protected under CIPF must be a member of IIROC.

As always, these government insurance programs that cover the securities industry do not insure accounts for the loss of principal in individual investments. They only insure against the insolvency of a brokerage and only guarantee the return of securities, cash, and other property held in an account, not the original investment amount.

Questrade also offers additional private insurance to protect clients in excess of the CIPF limits up to a maximum of $9 million. Insurance above those amounts may also be available for certain customers. Even though this insurance may cost extra, it is far more generous than current insurance programs in the United States.

Because Questrade does not deal in bank products such as savings accounts or certificates of deposit (CD), it is not covered by any sort of insurance similar to the Federal Deposit Insurance Corporation (FDIC) in the United States.


Is Questrade legit?


Is Questrade a Scam?


Questrade is not a scam. The company is a legitimate brokerage based in Canada. Nothing about the company based on its website, professional memberships in CIPF and IIROC, or products and services offered indicate that Questrade is anything less than a legal and ethical company.


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Questrade BBB (Better Business Bureau) Rating


Questrade’s standing with the Better Business Bureau (BBB) is average, with a C- rating. The company is not accredited by the BBB, which is not unusual for online brokerage firms and should not be cause for concern. In the past three years, 16 complaints against Questrade have been closed with the BBB. This number is roughly comparable to the number of complaints registered by other brokerages reviewed by our website. Here's the breakdown:

- Advertising/Sales Issues-1

- Billing/Collection Issues-7

- Delivery Issues-0

- Problems with Product/Service-8

- Guarantee/Warranty issues-0

The company has not received any customer reviews from the BBB. The takeaway here is that Questrade's business operations have not raised any major red flags with the BBB.


Questrade Review


By all accounts, Questrade is a legitimate and safe brokerage firm. Take a look at the detailed Questrade Review.


Questrade Website


Questrade