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199 Bay St., suite 2600
Toronto, ON
M5L 1E2
Mailing Address
BBS Securities Inc.
199 Bay St. Suite 2600
PO BOX 108 STN Commerce Court
Toronto, ON
M5L 1E2
Website: https://www.virtualbrokers.com/
Email Address: info@virtualbrokers.com
Phone: 1-877-310-1088
Customer Service Hours: Mon to Fri 8:00 am to 6 pm ET
Virtual Brokers Review
Updated on: Feb. 8, 2019
Virtual Brokers, a division of BBS Securities Inc, is one of the youngest of the Canadian online discount brokers. Although (and maybe because) they haven’t been around as long as other brokerages, Virtual Brokers is able to offer pricing and platforms that help them stand out from their competitors.
Given that they offer a number of account and pricing options for investors and traders alike, those considering Virtual Brokers should understand what kind of trading style and needs they have so as to select the products/services that best suit their needs. For active traders and those looking for real-time data, however, be sure to consider the costs for data subscription for streaming quotes as part of the total cost of ownership with this provider.
Quick Info
| Standard Equity Commission | Min: $1.99 Max: $7.99 |
| Best Commission Price | $1.99/ticket ($0.01/share) $3.99/ticket (active trader) |
| Minimum to Open Account | $1,000 |
| Maintenance Fees | $24.95/quarter |
| Commission Free ETF | Yes |
| Account Types Offered | Funding Requirements and Fees | Registered Account Types and Fees | ||||
|---|---|---|---|---|---|---|
| TFSA |  | Minimum Opening Balance | $1,000 | TFSA | Annual Charge | $0 |
| RRSP | | Minimum Account Balance | Not Required1 | Transfer Out | $150 | |
| RESP | | Minimum Balance for Best or Discounted Commission | Not Required | Withdrawals | $25 (partial withdrawal) $50 (full withdrawal) |
|
| Cash | | Minimum Commission per Equity Trade2 | $1.99 ($0.01/share) $3.99 (active trader) | US Dollar Account |  $15/quarter |
|
| Margin Short | | Maximum Commission per Equity Trade | $7.99 $3.99 (active trader) | RRSP | Annual Charge | Free |
| Margin Options | | Minimum Trades per Quarter for Best Commission Rate | 150 | Transfer Out | $150 | |
| CIPF Member | | Inactivity or Maintenance Fees | $24.95/quarter | US Dollar Account | $15/quarter |
|
| Conditions for Inactivity/Maintenance Fees | Inactivity fee waived if: a) At least 1 commission-generating trade made within quarter OR B) Consolidated holdings are >$5,000 OR C) Client is under 26 years old OR D) Client is a registered charity | RESP | Annual Charge | $25 | ||
| Transfer Out | $150 | |||||
| US Dollar Account | $15/quarter | |||||
| Last Updated: Jan. 2019 | ||||||
Pricing & Fees
As of late December 2018, Virtual Brokers has updated their commission pricing by lowering their commissions and moving to a slightly different method of charging for trades. While their previous trading commission plans are available to customers already on the plan, they also do offer access to those commission plans to new customers upon request.
The new commission plans offer DIY investors pricing of $0.01/share with a range between $1.99 to $7.99 per ticket for equity trades as their standard rate, and for active traders, defined as those who trade over 150+ trades per quarter, the standard per ticket pricing is $3.99 flat.
For those unfamiliar with per ticket pricing, this refers to the direction of a trade (buy or sell) and it means that you get charged by the direction of a trade in a particular security. This is usually clearer with an example, so if an investor buys 100 shares of BCE, at 10am, then buys another 200 shares of BCE at 1pm on the same day, the total commission charged would be 300 shares x $0.01 = $3.00 (as opposed to 2 commission charges being charged for two trades.) Click here for a more detailed example.
Combined with the commission-free buying of ETFs and the 150 commission-free ETFs (buying and selling), Virtual Brokers offers investors competitive value. For active traders, there is particularly compelling value with a “per ticket” system and lower commission charges.
Another important fee to note is the quarterly inactivity fee of $24.95. This fee can be waived if: the individual makes at least one commission-generating trade worth at least $6.49 within a quarter; or is under the age of 26; or has at least $5,000 across all accounts; or is a registered charity.
As mentioned above, Virtual Brokers offers commission-free ETF trading (buying and selling) on 150 ETFs and commission-free buying on all ETFs. Check out our detailed look at commission-free ETFs to learn more about how these work.
Account Types
Registered accounts include tax-free savings accounts (TFSAs), registered retirement savings plans (RRSPs) and registered education savings plans (RESPs). While Virtual Brokers offers US dollar accounts for all registered accounts, they do so for a fee. For registered accounts you cannot use margin or short stocks. Options trading in registered accounts is limited to buying and selling options and writing of covered calls.
The non-registered account offered by Virtual Brokers is called the “All in One” account which is a combination of equity, option, margin and short accounts all rolled into one. This enables individuals the opportunity to access margin (should they want to) to finance a trade that they may not have the ability to do otherwise.
Platform/Data
When considering a trading platform, keep in mind the kinds of trading and analysis tools that you will need, especially because most application-based platforms require a monthly subscription fee ranging from $75/mo CAD to $580/mo USD (ITS TraderLite). Although VB WebTrader offers free snap quotes, some very active traders tend to prefer streaming quotes for which Virtual Brokers offers streaming Level 1 data for Canadian markets at around $20/mo (the TSX/TSV combo is $25/mo) CAD and US streaming Level 1 data can be added on for $4 or $5/mo USD. Additional market data feeds (e.g. Level 2), can be added on with pricing varying by market.
Reviews & Ratings
| Review | What Review Measures | Score | Date of Ranking |
|---|---|---|---|
| Dalbar Canada Review | Client Service | Not Rated Not Rated |
January 2015 January 2014 |
| Globe and Mail Review | Overall Impression | Letter Grade “A” Letter Grade “B” Letter Grade “A” 1st out of 12 Letter Grade “A” 1st out of 12 Letter Grade “A-” 2nd out of 12 Letter Grade “A” |
February 2019 February 2018 December 2016 December 2016 December 2015 December 2015 November 2014 November 2014 November 2013 |
| JD Power Review | Investor Satisfaction | Not Rated Not Rated |
September 2014 September 2013 |
| MoneySense | Runner Up – Fees & Commissions Top Pick – ETFs |
July 2017 July 2017 |
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