Effectively capitalizing on the latest trends in online investing has helped build Vancouver-based Qtrade Financial Group (QFG) into one of Canada's largest independent discount brokerage firms.
According to various industry analysts, Qtrade Investor, QFG's online brokerage subsidiary, has been among the country's top-ranked online brokerage firms for several years.
Last week, the company, which also provides other investment and wealth management services, was again among the top-rated, according to the Globe and Mail's annual review of the sector. For the past three years, it was ranked the best discount brokerage firm at the Morningstar Canadian Investment Awards.
And it consistently ranks in the top three online discount brokerage firms, according to Surviscor's comprehensive quarterly review of the sector, which reviews everything from website usability and service costs to account information availability and market intelligence.
"We go back and forth between number one, two and three fairly consistently," said Scott Gibner, Qtrade's CEO. "Making sure we are market-leading is always on our minds."
Competition in the sector has continued to grow as discount brokerage services by the big-five banks continue to evolve and newcomers enter the market. But Gibner said continual improvements in the company's trading platform have helped Qtrade maintain its competitive edge. Aside from having a mobile-compatible website, the company has steadily increased the types of investment research available, including information on exchange-traded funds (ETFs), access to initial public offerings and other new investment issues and even professionally managed model portfolios that investors can review.
The four model portfolios investors can review include a Canadian fund, a diversified portfolio, a global fund and one based on ETFs.
"For new investors that maybe don't know how to build a portfolio on their own, these portfolios give the user the ability to follow those to the extent they want to track investment professionals," said Gibner. "It's just another tool in their arsenal to look at from the online brokerage site."
The company has continued to expand and has made some strategic partnerships in the past year. Earlier this year, the Desjardins Group, one of Canada's largest financial co-operatives, bought a 40% interest in Qtrade, which potentially creates new opportunities for growth in the online investing and wealth management sectors.
Denis Berthiaume, a senior Desjardins vice-president, said at the time, "Qtrade has an excellent online trading platform and an expertise which complements that of our subsidiary Disnat. The activities of both entities give us a much stronger presence in online brokerage."
While competition in the online investing market remains, Gibner is optimistic about the opportunities for further growth and expansion in the Canadian market.
"There are stats out there to suggest that a third of all Canadians have online brokerage accounts, and that's growing," said Gibner. "And more and more of the younger demographic is comfortable trading online, and that's only going to skew to higher percentages in the years to come."
