Questrade brokerage hidden fees. Questrade trading inactivity and monthly fee, additional charges. Cost of the the broker's retirement account.

Overview of Hidden Fees at Questrade

Questrade is a popular Canadian-based broker because of the wide breadth of investment types and regions they cover in their platform. They support trading in U.S. and Canadian securities markets, including such security types as common equities, ETFs, mutual funds, bonds, options, commodities, forex, and even contracts for difference. They also offer a robust trading platform called IQ Edge. Knowing all this, you may be wondering what Questrade’s fees are. This article will cover all their relevant costs, starting with commissions before moving on to the more unexpected fees.

Questrade Commissions

ProductPrice
Stocks Plan 1 $0.01 per share, $0.95 minimum, $6.95 maximum per trade OR $4.95 flat with the Questrade Advantage
Stocks Plan 2 $0.01 per share, $4.95 minimum, $9.95 maximum per trade
ETFs Free
Options $9.95 + $1 per contract
Options assignments$24.95
Mutual funds $9.95
Gold $19.95 per trade
Bonds $0 per trade
Forex spreads as low as 1-2 pips on the major currency pairs

Questrade is one of the few brokers that charge a variable commission, based on the number of shares you trade. Their standard commission for equities is 1¢ per share with a $4.95 minimum and $9.95 maximum per trade (all prices and fees in this article are in CAD). Buying ETFs on Questrade is commission-free (that’s right, all ETFs), however when you go to sell the standard commission rate we just described is applied. Questrade offers access to other foreign markets in addition to the U.S. and Canada, but the commissions for these trades are much higher at 1% of the principal amount with a per trade minimum of $195.

If you plan to trade Canadian or U.S. options with your Questrade account, the commission for these is a flat $9.95 per trade in addition to a variable charge of $1 per contract. Exercising an options contract is a fixed charge of $24.95. If you are a bond trader, you may be happy to hear that Questrade doesn’t charge an explicit commission for these instruments, but instead they get paid through a markup they apply to their bid/ask spread on bonds. This is fairly common among brokers that offer fixed income investments.

Trading mutual funds in your Questrade account will cost you a flat $9.95 per trade, regardless of number of shares, for both buys and sells.

Besides equities, bonds, and options, some investors like to add precious metals to their portfolio for added protection during economic downturns and periods of high inflation. Questrade will let you invest directly in many precious metals as opposed to simply using ETFs to invest in what many refer to as “paper metals”. All precious metals trades incur a flat commission of $19.95 and come with a minimum trade amount of $5,000. Questrade will also offer to hold your precious metals for you for an annual storage fee ranging between 0.50% to 1.5% of the metals’ value.

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Account Inactivity Fees

Questrade does charge a quarterly inactivity fee of $24.95 to accounts that meet certain criteria; however these are easily avoidable for active accounts. As long as you have at least a $5,000 account balance or have placed a trade in the prior quarter you will not be charged the inactivity fee.

Other Account Fees

Electronic transfers are free at Questrade; however there is a charge of $20 and $30 for Canadian and American wire transfers, respectively. International wire transfers outside the U.S. and Canada have a $40 charge. Moving funds with a physical check is even more expensive with Questrade charging a $50 fee. If you plan to move your Questrade account to another broker, there are full and partial transfer fees of $150 and $50 respectively. Lastly, if you opt to receive paper account statements instead of electronic ones, there is generally a $20 fee for these.

Data Fees

All U.S. and Canadian real-time market quotes come with your account free of charge, but Questrade offers different tiers of data packages for a fee for those who want more. For $19.95/month you can sign up for their live streaming data, and this monthly fee is waived/refunded if you spend at least $48.95 in commissions during the month.

For a higher fee of $89.95 a month you can subscribe to Questrade’s advanced U.S. or Canadian data packages, which include live streaming level II quotes and qualifies your account for discounted commissions (outlined in the below screenshot). And if you spend $48.95/month in commissions you will be rebated $19.95 of the monthly fee. If you spend more than $399.95 in monthly commissions, your entire monthly data fee will be rebated.

Managed Account Fees

The last fee we want to discuss here is an optional advisory fee that only applies if you choose Questrade’s optional account management service. If you want Questrade to manage your account for you (based on your investment goals and risk appetite) they will do so for an advisory fee that ranges from 0.35% to 0.70%, depending on the size of your account. The nice thing about this option (besides having Questrade manage your account) is that you won’t need to pay commissions and you can qualify for the service with a minimum balance of just $1,000.

Questrade Promotion

Get $50 in free trades with new Questrade account.

Open Questrade Account


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Questrade Fees reviewed by TopRatedFirms.com Rating: 4