# Experiences with Virtual Brokers?



## somecanuck (Dec 23, 2011)

Does anyone use (or has used) Virtual Brokers? I searched for responses earlier and saw one negative, one positive.

The $0.99/trade minimum makes monthly ETF purchases a bit more palatable, and that they're willing to pay up to $150 towards account transfers. The 100 commission-free ETFs is nice, but at a glance, I do not think I would purchase any on the list. And of course no annual fee on RRSPs or TFSAs is nice too.


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## somecanuck (Dec 23, 2011)

38 views, 0 replies! I guess the answer is an unequivocal "no".


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## newfoundlander61 (Feb 6, 2011)

Well Virtual Brokers is ranked 2nd in Canada in the latest Globe and Mail broker review, heres the link. Thats a pretty good rating for sure, I use CIBC simply because I do all my business with then and they are ranked 8th, they are suitable for my needs.

http://www.theglobeandmail.com/globe-investor/2011-online-broker-rankings/qtrade-keeps-its-lock-on-no-1-in-globes-annual-survey/article2233815/


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## somecanuck (Dec 23, 2011)

That's where I happened upon it. 

I am comparing a portfolio of TD e-Series funds against one of ETFs (I have to make a decision shortly). The TD e-Series portfolio has an MER of 0.42% versus 0.19% and 0.31% for the two portfolios of ETFs I'm looking at. However, monthly purchases (I like the idea of dollar cost averaging) can quickly bring the lower ETFs up to match or surpass the 0.42%.

With the $0.99 trades I could presumably purchase each ETF monthly and still end up with a total MER of 0.29% and 0.39%. Best of both worlds, assuming that Virtual Brokers doesn't, you know, suck.


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## humble_pie (Jun 7, 2009)

my standard worry about all the small privately-owned online brokers is that we know nothing about their capitalization or their relationships with their bankers. Nearly every firm boils down to just one individual.

all we know is that they can satisfy the minimum standards of the various exchanges. Nothing further.

this may be fine in normal times, but there are plenty bears out there warning of global banking collapse that will make 08/09 look like a tea party. In a situation like that the so-called CIPF will be worthless, there will be so much carnage. The cipf isn't really a discrete fund anyhow, it's more the responsibility of each broker-dealer to raise an assessment to support the odd failure, here & there, of an isolated member.

in a global collapse, the big publicly-traded banks will offer more protection to their house brokers.

as for the globe n mail annual review of online brokers, the recent one was even more cuckoo than usual. VB in numero due spot ? c'mon. Journo carrick must have stepped off his elevator in midair the day he was swotting that up.


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## Paul75 (Dec 22, 2011)

I am agree with humble_pie for his view... 

"in a global collapse, the big publicly-traded banks will offer more protection to their house brokers."

After 2008 business crisis it does more matter.


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