QuesTrade now $0 Commission. Another choice for Canadian stock traders

From Questrade:

"As of today, February 9, we will be introducing $0 trading commissions on the following:

Stocks & ETFs: $0 commissions for online trades placed through website, desktop or mobile apps.

Options: $0 + 99¢/contract for online trades placed through website, desktop or mobile apps.

These changes will be automatically applied to your account. No action is required from you at this time."

 

Those brokers apply a spread to the price. That is why they can offer 0 commissions.
You still pay through the spread. Sometimes even more than if you were charged a commission.

 

That has not been my experience.
With National Bank Direct and WealthSimple market orders have been filled between the bid and the ask for most part.
Limit orders are filled at the limit price.
I had a limit order to buy FFH at 1975 the other day that was filled at 1954 on a gap down.

 

Next time you want to buy a stock through a 0 commissions broker compare their offer with the NBBO.

 

this is not true

 

How does that compare with level 2?

 

It is not difficult to understand guys.

How do 0-commission brokers make money:

1. Bid-ask spreads: The spreads on these accounts will be just a fraction wider than the market allowing them to buy equity at a slightly lower price and then sell them directly to you. The more you trade, the more they make on the spread.
   
   
2. Interest on cash: A lot of people will leave some money in cash in the account. These investors earn nothing for that parked cash but the brokerage does.
   
   
3. Margin interest: A significant amount of traders will borrow sizable sums on margins. These are often great deals for these brokerages since these margin loans are very well collateralized by the stocks in the portfolio, the brokerage has full visibility into the risk profile of their loan, and they have the right to liquidate the holdings to get their cash back.

These bullet points are not written by me, I copied them from another website.

 

Yeah but they are not zero-commission are they?

 

So the bid/ask spread for questrade is wider then cuz PFOF is not allowed in Canada. Or they only offer this on US stocks cuz PFOF is only not allowed on Canadian stocks but for non-Canadian stocks like US stocks, PFOF is allowed.

https://www.marketsmedia.com/the-tr...nadian financial,such as US listed securities.

 

That is my guess as well. And it does make sense.

For sure they are not a charity and run a broker to make retailers rich.