I am interested in starting with Vanguard as soon as possible. I have been following the Canadian couch potato, and am still new to this. Unfortunately we Canadians can not buy direct funds here from vanguard
One of the biggest problems is the costs involved in each trade. It was always recommended that anyone using services like questrade trade in larger amounts less frequently, and have at least $50k in investments before going this route to avoid a lot of the costs associated with it
It seems like questrade has changed some of their fee structure, and i am wondering if this make it more appropriate for me to switch over. they currently have commission free ETF trading.
I currently do tangerine funds as recommended by the canadian couch potato for those starting out with smaller amounts.
I would look at purchasing funds every month which sounds like it should prevent any inactivity fees as well.
If i were to move over today, i do not have the full $5000 yet to invest, but it sounds like i should still be able to avoid the fee structure. I was hoping that in 6 months i would be ready to move over with more than the minimum they require. I understand the markets could move, which could potentially drop be slightly below the minimum amount. I am hoping to have enough to not have to worry about that unless there is a huge change in the markets
Am i missing something? Or did the change in fee structure open up Questrade to make it more accessible to people starting out?
Me - I have a question. I am looking at buying ETFs in small amounts monthly. They are supposed to be commission free. But there is an inactivity fee i read about that seems to kick in after 3 months of not having any "commissioned" trades. Even if i bought the ETF's every month, would i be faced with an inactivity fee continuously? I would be using the DIY trading
Questrade -
Dear Customer,
Thank you for contacting Questrade, I will be happy to help you with this.
Please be advised that we charge an inactivity fee, but you can avoid the inactivity fee by placing just one commissionable trade per quarter, or by having more than $5,000 in total combined account equity between all of your accounts. A commission free ETF buy does prevent the inactivity fee from being charged. I would also like to take this time and introduce you to "The Exchange" here you will learn about trading knowledge and how to navigate our trading platforms. You can also interact with Questrade clients on the Exchange. Thank you for choosing Questrade.
Me - So as long as i have $5000 or more in equity, there will be no inactivity fees charged? Even if i am buying commission free ETF funds?
Questrade - That is correct. However, keep in mind that your equity is measured at the end of each quarter to determine if it is above $5,000. So long as it is above $5,000 at the end of each quarter, then you would not be charged an inactivity fee.