Questrade

Questrade Hidden Fees


2018 Questrade hidden fees list. Does Questrade charge hidden fees on brokerage or retirement account? Questrade monthly fee.



Questrade Hidden Fees


Questrade does not have hidden fees.


Questrade Inactivity Fee and Monthly Fee (Quarterly Fee)


Questrade charges $20 inactivity fee every quarter if no trade is placed AND account balance is less than $5,000. The fee is refunded as commission-free trades if the client makes at least one trade the next quarter.


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Questrade’s fee structure is both compelling and attractive, especially compared to its peers. The firm offers two separate pricing structure that are uniquely designed to suit the varied needs of investors and traders.

Questrade’s “democratic pricing” commission plan charges customers one cent per share to buy stock with a minimum cost of $4.95 and up to $9.95. Options are priced at $9.95 plus $1 per contract.

This pricing plan compares favorably to some of the brokerage firms operated by the major banks, such as RBC Direct Investing that charges a flat fee of $9.95 per trade. Investors can save up to $5 per trade which is a savings that really adds up over time.

Questrade’s “advantage pricing” commission plan is designed for active traders and investors. Stocks are still charged at one cent per share but the $4.95 minimum does not apply. In other words, investors can buy one share of a company and pay just one cent!

There is also an option to pay a flat rate of $4.95 per trade regardless of the number of shares traded.

This plan is only available to clients that opt to pay for an advanced market data package that could cost upwards of $70 a month. However, having access to advanced market data is pretty much a must for active traders but not so much for investors.

It is also worth mentioning that Questrade does not charge commission for the buying exchange traded funds (ETFs). Since ETFs are one of the fastest growing investment products, account holders can save themselves a few more dollars compared to other platforms. Standard commission does apply when the ETF is sold.

Bottom line, Questrade’s “democratic pricing” structure offers consumers the chance to pocket a few extra bucks from their stock purchases. The same could be true for users who select the “advantage pricing” plan but since it is marketed towards high volume users it will take some quick calculations to determine how advantageous this may be.






Strategy mix


Some market players mix long-term and short-term strategies. Usually they use the biggest part of funds to invest in long positions of strong reliable companies, often with friendly dividend policy. Also they leave 5-10% of money to trade in a short-term period as speculators. In this way investors meet their conservative investment needs to provide long-term growth at the expense of sensibly formed portfolio, and satisfy their craving for thrills. Videlicet, such investors are confident to make informed investment decisions and hedge long-term hazards, and at the same time they assume possible minor losses from active trading.


Middle-term strategy


Investors with horizon of up to three years can called “middle-term investors”. Such type of market players wishes to earn money on the stock market, but isn’t inclined to entrust assets for long tools. Lack of deep fundamental analysis can be a reason. Other cause can be funds that now are on the market, in the near future may be required for a serious deal, for example for property purchase. Moreover middle-term investors don’t want, don’t have enough time or temperament for short-term trading that requires a lot of time and effort during a day. Such players build their trading strategy from period of time from month and several months to 1-3 years depending on periods are comfort to predict for them.


Portfolio features


For long-term investors preferably to form portfolio includes minimum 8-10 shares to provide the necessary diversification. However logical advice would be build portfolio of securities of different sectors’, frequently occur that investor well versed in one or two specific area so fills his basket of shares just of this fields. Short-term traders can trade any liquid instruments independently of its industrial affiliation. Their reference points are trend, volatility, and volume. Respectively middle-term investors gravitate on one hand to venture undervalued shares to get tangible profit and on the other hand to “blue chips” to balance portfolio with plain securities. Everybody understands that on the stock market more risk often means more profit, so investor’s task in each strategy is to take care of rational combination of these two elements.


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Implementation of strategy


Investor can create his own strategy and trade with or without broker’s help. If investor asks professional advice he gets asses to analytical resources of brokerage firm, its developments, acquires personal consultant. Broker’s tasks here are to understand investor’s risk appetite, his time horizon, and amount of funds. As a result advisor offers specific strategy with concrete assets and terms of trading. Also consultant proposes various investment instruments as stocks, derivatives, ETFs and others. It’s important to remember that the final decision rests with the client. Naturally that client pays determine fee for such service. In case investor feels he is quite competent to make his own decision concerning all these questions, he just gives orders to buy or sell security to his broker.

Except active investment strategies consultant can offer to trade mutual funds. In the current article we don’t describe such instrument which is more appropriate for passive investment process. On our site you can find a lot of articles about different mutual funds.


Disclaimer


Questrade hidden fees are as of 2018 and are subject to change. For the most recent information on Questrade hidden charges visit their website.