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RBC Direct Investing vs. Questrade

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Online brokerage platforms like RBC Direct Investing and Questrade enable investors to take ownership of their investment portfolios. Both trading platforms offer various investment securities to trade in from the comfort of your home. While most online brokerages offer similar services, a few beat the others in terms of their trading fee, user interface, etc.

What is RBC Direct Investing?

RBC Direct Investing is a stem of the RBC (Royal Bank of Canada), one of the largest banks in the world, with over 17 million clients across the globe, including Canada. RBC Direct Investing is available on desktop and Android, and Apple apps.

What is Questrade?

Questrade, founded in 1999, is an online brokerage platform. It offers low-cost trading fees and an enormous selection of investment products and gained popularity for disrupting Canada’s self-investment landscape. This online brokerage attracts more than 200,000 new clients each year. Apart from the self-directed trading services, they also offer a diversified portfolio managed by experts at a minimal fee via Questwealth portfolios.

RBC Direct Investing vs. Questrade

Here is a difference between both the online trading platforms:

1. Investment Accounts Offered

Both RBC Direct Investing and Questrade offer tax advantages and the opportunity to open margin and corporate accounts. However, Questrade offers LIRA, LIF, Investment club, CFD, and FOREX accounts too.

2. Investment Products

It is only sensible to choose a broker that offers multiple product options to diversify your portfolio while keeping your holdings in one place.

RBC Direct Investing offers stock trading, mutual funds, ETFs, options, bonds, precious metals, GICs, and saving account investments.

Questrade offers a wider selection of assets like stocks, ETFs, options, mutual funds, bonds, GICs, precious metals, foreign exchange, and CFDs.

3. Trading fees

When choosing between trading platforms that offer similar services, the choice often boils down to terms of trading fees and transaction costs. Here is a break up of fees charged by both the platforms:

Trading CommissionsRBC Direct InvestingQuestrade
Stocks$9.95 per trade1 cent/share with a minimum of $4.95 and a max of $9.95 per transaction.
ETFs$9.95 per tradeFree to purchase and $4.95-$9.95 when selling
Options$9.95 + $1.25 per contract$9.95 +$1 per contract
Mutual FundsNo commission on trades. However, an early redemption fee may be applicable$9.95 per trade
Precious Metals$28.95 + $0.10/oz for silver certificates, $28.95 + $1/oz for gold certificates$19.95 per trade
Active Investor Pricing$6.95 per trade$4.95 per trade

Active trader pricing can be used when you have placed at least 150 trades per quarter with RBC Direct Investing and need to subscribe to an advanced market data package on Questrade.

4. Trading Platforms and Tools

Both trading platforms are accessible via desktop and mobile apps. RBC Direct Investing offers its active traders access to Trading Dashboard, advanced charting, level 2 quotes, and real-time streaming quotes. For research, it provides sector analysis, screeners, watchlists, third-party reports, and RBC affiliate research.

Questrade offers watchlists, investment reports, intraday traders’ access, and daily alerts about new trading opportunities. Its IQ Edge offers advanced order types for experienced traders.

5. Minimum Investment

RBC Direct Investing has no minimum investment amount to start investing. However, Questrade requires you to fund your account with a minimum of $1,000 to get started.

Trading Nutshell

Both trading platforms are very similar in terms of services and user interface. RBC Direct Investing and Questrade are both beginner-friendly and perfect for nuanced traders. However, Questrade has the edge over RBC Direct Investing in terms of trading fees and investment product options.

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