Money About $195 million is going to discount brokers, instead of you and me

15:41  16 april  2018
15:41  16 april  2018 Source:   MoneySense

Why discount investors should hate A class fund fees

  Why discount investors should hate A class fund fees Class action lawsuit signals investor resolve to end trailing mutual fund commissions for online brokers.

If you are constantly making trades in the tens of millions of dollars range, then discount brokers I've never had Interactive Brokers treat me to lunch so that I can gripe about their services, but this If you are a client of a prime broker , you aren't going to be calling the call center, there will be a

The Simple Dollar’s Top Picks for Best Discount Brokers . Best Discount Broker Overall: Ally Back in 2008, the iconic investor bet some bigwig hedge fund managers million that they couldn’t If you ’re a buy-and-hold investor, Fidelity is going to give you the most tools to trade effectively while

a close up of a mans face: iStock© Used with permission of / © Rogers Media Inc. 2018. iStock

Did you notice how virtually everyone on Bay Street was up in arms when Bill Morneau announced recently that the federal deficit for the forthcoming fiscal year would be $18 billion?  The outcry was predictable and enormous:

Popular Searches

Qualcomm Inc


MLSE imposes 30 per cent scalper surcharge on Leafs and Raptors season ticket holders deemed to be reselling their seats

  MLSE imposes 30 per cent scalper surcharge on Leafs and Raptors season ticket holders deemed to be reselling their seats As the Leafs and Raptors embark on playoff runs that promise to push ticket prices into the stratosphere, the teams’ owner is muscling in on profits from the scalping of its own seats.Maple Leaf Sports and Entertainment is doing this by imposing a higher price on hundreds of regular-season ticket holders they believe are scalpers.Some ticket holders say MLSE is penalizing them even though they’re not in the reselling business but only occasionally posting their unused seats for sale.The price hikes will apply to thousands of seats in the Air Canada Centre starting next regular season.

In-depth reviews of online discount brokers and their tools, features and flaws. It is beyond me why folks would think this. If I can pay .00 instead of .00 WHY would I NOT pay less? We were going to continually update, but as you can see from all the responses, above it's really hard to get

Full Service Brokers vs. Discount Brokers . OTC options are those contracts that aren't listed on a public trading exchange but are instead traded over the counter. This isn't something that should be ignored if you are going to be spending any sustained length of time trading options each day.

Samsung Electronics Co Ltd


Starbucks Corp


  • How is this fair to future generations?
  • When will we ever return to surplus?
  • Notwithstanding the answers to the above, how long will it take to eradicate the accumulated national debt?

Well, I noticed something else…. rank silence on the matter of trailing commissions that are being paid by retail clients at discount brokerages. Specifically, the Canadian Securities Administrators (CSA) now tell us there is about $25 billion in A series mutual funds paying trailer commissions (ostensibly for financial advice) to discount brokers – a group that goes out of its way to inform its clients that it will not, under any circumstances, offer financial advice.

‘Rampage’ Rocks International Box Office With $114 Million

  ‘Rampage’ Rocks International Box Office With $114 Million ‘Rampage’ Rocks International Box Office With $114 Million“Rampage” just narrowly won the domestic box office, but the Dwayne Johnson film is proving to be a force overseas.

If you were to do an Internet search for “online brokers ”, you ’d come back with somewhere north of 31 million results. There’s not quite that many online brokerage firms, but there are certain a lot of It is important to note that each discount broker is going to handle commission negotiation differently.

Will Social Security be there for me? Instead , many full-service brokers want to take advantage of beginning investors, making the investing process more opaque and costing you a lot more money The better long-term answer is to pick a discount broker that won't charge you a huge amount in fees.

Here’s a pop quiz: assuming an average weighted trailing commission of 0.78%, how much money is being squandered annually?

The Answer: about $195 million.

READ: Do I still pay fund fees in a self-directed account?

In other words, every year, Canadians pay more than 1/10 of the annual deficit to discount brokers for non-existent financial advice.  Meanwhile, the financial services industry says that our federal government “squanders” far too much in its “spendthrift” fiscal plan.   To put this in perspective, let me ask:  how much would regulators save ordinary investors per day, if it disallowed this usurious practice? The Answer: ($25,000,000,000 x .0078)/ 365… or $534,246 per day.

READ: How mutual fund fees work

My question to the broader financial services industry is simple: why the silence on this?  If you genuinely want people to believe that you are speaking on behalf of the collective welfare of all Canadian citizens, then why do you say nothing when people are being forced to pay for advice that they neither request nor receive?

Man Didn't Realize He Won Nearly $2 Million Lottery Until 5 Months Later

  Man Didn't Realize He Won Nearly $2 Million Lottery Until 5 Months Later He waited because he likes to check his tickets together.One Colorado man didn’t realize he won nearly $2 million after a drawing until he checked his ticket - five months later.

Discount Real Estate Brokers - Can You Save Money? Menu. Search. Go . If you agree to buy a home through the listing brokerage instead of hiring a selling agent, many times the broker will reduce the listing commission fee.

If you go in with a discount in hand, you ’re trashing that value and throwing it out the window. When you ’re offering your prospect a discount , you 're going to have to sell a whole lot more in order to meet your monthly quotas.

John De Goey is a Portfolio Manager with Industrial Alliance Securities Inc. and the author of The Professional Financial Advisor IV.  Industrial Alliance a member of the Canadian Investor Protection Fund (CIPF).  The opinions expressed herein are those of Mr. De Goey alone and may not be aligned with the opinions and values of Industrial Alliance Securities Inc. or any of its affiliated companies.


  • Is your investing coach coaching you too much?
  • What portfolio managers do with your money
  • Some tough questions to ask your advisor

Air Canada, WestJet offer cheap basic economy fares for no-frills seekers .
Thought economy was the lowest class on a plane? Think again: Air Canada and WestJet are selling “basic economy” fares that cost less and offer even fewer features. ​ "Basic economy fares are getting you a seat, that's it " says Ottawa-based travel blogger  Anshul Singh. "There is no extra sort of cushioning.


—   Share news in the SOC. Networks

Topical videos:

This is interesting!