Does Questrade Have Fees?

Questrade, one of Canada's most popular online brokers, has attracted a significant number of investors due to its user-friendly platform, competitive pricing, and no annual fees. However, the platform is not completely free. There are fees for various transactions and services that users need to be aware of before jumping in. In this article, we’ll explore these fees in detail, so you can understand exactly what you’re signing up for and how to minimize costs.

1. Overview of Questrade Fees: A Quick Glimpse

To quickly address the main question, yes, Questrade does have fees, but they are relatively low compared to traditional financial institutions. The types of fees can be broken down into several categories: trading fees, account fees, and miscellaneous fees for additional services like transferring funds or making specific requests.

Let's dive into each of these fees.

2. Trading Fees: What You Pay When You Trade

Questrade offers competitive trading fees, which vary based on the type of asset you’re trading.

a) Stocks

When trading stocks, Questrade charges as low as $0.01 per share with a minimum charge of $4.95 and a maximum of $9.95 per trade. This means that for smaller trades, you’ll likely pay around $5, but for larger transactions involving thousands of shares, you could pay up to $9.95.

b) ETFs

One of the significant advantages of Questrade is that ETF purchases are free. You can buy as many ETFs as you want without incurring any costs. However, when it comes to selling ETFs, the regular stock trading fee applies, which is $0.01 per share with a minimum of $4.95 and a maximum of $9.95.

Asset Type	Buying Fee	Selling Fee	Minimum Cost per Transaction	Maximum Cost per Transaction
Stocks	$0.01/share	$0.01/share	$4.95	$9.95
ETFs	Free	$0.01/share	$4.95	$9.95

c) Options

For those interested in options trading, Questrade charges $9.95 per trade, plus an additional $1 per contract. This means that your fees will depend both on the number of trades and the number of contracts involved in each trade. These fees are still considered competitive when compared to other brokerages.

3. Account Fees: How to Avoid Them

There are no annual fees for Questrade’s basic accounts, such as Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). However, there are some fees to watch out for.

a) Inactivity Fees

Questrade does have an inactivity fee of $24.95 per quarter for accounts that have a balance under $5,000 and no trading activity in that quarter. To avoid this, make sure your account balance stays above $5,000 or ensure you make at least one trade per quarter.

b) Data Fees

For real-time data, Questrade charges a monthly fee, which varies depending on the market data you require. Basic data for North American markets is free, but more advanced packages, such as Level II quotes, come with fees that can range from $19.95 to $89.95 per month. These data fees are waived if you meet specific trading volume requirements.

4. Miscellaneous Fees: Watch Out for Hidden Costs

While most people focus on trading and account fees, there are a few additional fees you should be aware of.

a) Withdrawal Fees

Withdrawing Canadian funds to a Canadian bank is free, but there are withdrawal fees when transferring funds in foreign currencies. For instance, if you withdraw USD to a U.S. bank, you’ll be charged $20 per withdrawal.

b) Transfer Out Fees

Transferring your account to another brokerage will cost you. Questrade charges $150 for a full transfer of your account.

c) Wire Transfer Fees

If you need to transfer funds via wire transfer, Questrade charges $20 for domestic transfers and $40 for international transfers.

5. How to Reduce Questrade Fees

While Questrade’s fees are generally lower than traditional brokerages, they can add up if you’re not careful. Here are some tips to minimize costs:

• Maintain a balance over $5,000 to avoid inactivity fees.
• Make at least one trade per quarter to keep your account active.
• Consider buying ETFs if you're an investor focused on minimizing trading fees.
• Monitor your data plan to ensure you're not paying for more real-time data than you need.
• Avoid unnecessary account transfers, as these can be costly.

6. Final Thoughts: Are Questrade’s Fees Worth It?

In conclusion, Questrade’s fees are competitive, especially for active traders and investors looking to minimize costs. While there are fees associated with certain activities, like trading stocks and options or making international transfers, these are standard in the industry and often lower than traditional brokers. Moreover, Questrade offers free ETF purchases, no annual account fees, and multiple ways to avoid inactivity charges, making it a cost-effective platform for both beginner and advanced investors.

For those who plan to trade frequently, the low trading commissions and free ETF purchases can result in significant savings over time. However, be mindful of inactivity fees and additional data fees if you don't trade often or require advanced market data.

By understanding the fee structure and planning your trading strategy accordingly, you can make the most of Questrade’s platform without breaking the bank.