For anyone who has tried to compare discount brokerages online, it becomes clear pretty quickly that lot of opinions exist as to who Canada’s best discount brokerage is. While this may seem like a positive, one of the major drawbacks of having so many competing voices is that each one of them has a slightly different definition of what it means to be “the best” and also a different way of going about testing for it.
While some evaluations may be more rigorous than others, the result for both industry participants and consumers has been that it is increasingly difficult to know which ranking is the most accurate. To help introduce some clarity into this ranking landscape, we have put together a number of different special reviews of each of the major discount brokerage rankings.
In these reviews we look at how each ranking defines ‘the best discount brokerage’ along with what each ranking actually measures and how they go about measuring it. For self-directed investors, it is especially important to understand these rankings to see if what these rankings measure makes sense and if the award is well deserved.
As savvy discount brokerage marketing departments know, winning an award is certainly worth bragging. Unfortunately for them, however, with so many awards stating essentially the same thing, the term “the best discount brokerage” has begun to lose its impact and the only way to distinguish between awards is by the quality of the tests discount brokerages have to pass in order to earn the award.
Ultimately, what works for an individual will differ according to their needs and preferences. By understanding the process behind the discount brokerage rankings, investors can decide for themselves if the award is actually more of a marketing tool or if it reflects positive performance in an area (or in areas) that matter to them.