This review of the National Bank Direct Brokerage (NBDB) covers its fees; trading platform features, benefits, downsides, and alternatives.
National Bank Direct Brokerage is a securities broker offering access to self-directed trading of stocks, Exchange-Traded Funds (ETFs), options, GICs, and bonds.
It is a division of National Bank Financial Inc. and a part of National Bank, the sixth-largest commercial bank in Canada.
Online brokerage platforms that are competitors of National Bank Direct Brokerage include Questrade, Wealthsimple Trade, Qtrade, and the big-five bank brokerage platforms.
National Bank Direct Brokerage recently dropped its trading commissions on stock and ETF trades, the first bank-owned brokerage to do so in Canada.
National Bank Direct Brokerage Summary
National Bank Direct Brokerage Review
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Ease of use
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Trading fees
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Accounts offered
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Investment products
Overall
Summary
National Bank Direct Brokerage is an online discount broker in Canada. It is one of a few brokerages to offer commission-free trading for stocks and ETFs. You can use the platform for trading various investment securities and open registered and non-registered investment accounts.
This review of the platform covers its fees, features, and alternatives.
Pros
- $0 commission stock and ETF trades
- Multiple accounts and investment products
- Big bank owned
Cons
- There are inactivity fees
National Bank Direct Brokerage Accounts
DIY investors can open a variety of registered and non-registered accounts with NBDB.
Personal non-registered accounts include cash, margin, and short-selling.
For registered tax-advantaged accounts, you can open a:
- Tax-Free Savings Account (TFSA)
- Registered Retirement Savings Plan (RRSP)
- Registered Education Savings Plan (RESP)
- Registered Retirement Income Fund (RRIF)
- LIF, LIRA, and LRSP
Business entities can also open investment accounts with options including sole proprietorship, partnership, association, and trust accounts.
Also available are estate, investment club, and individual pension plan accounts.
National Bank Direct Brokerage Investment Products
Investors can use the platform to access a variety of investment products for their portfolios, including:
- Stocks (Equities)
- ETFs
- Options
- Mutual funds
- Bonds (government, corporate, and municipal)
- Exchange-Traded Debentures
- Guaranteed Investment Certificates (GICs)
- Linked notes
National Bank Direct Brokerage Platform
Traders get access to an online trading platform that is available via a web interface.
You get technical and fundamental analysis tools and easy setups for watchlists, alerts, real-time market data, and more.
The brokerage platform also offers access to Recognia for technical analysis and investment ideas.
National Bank Direct Brokerage Trading Fees
The trading fees for ETFs, stocks, and options are:
| Trader Category | Stocks/ETFs | Options |
| Standard Pricing | $0/trade | $1.25/contract (min. $6.25/trade and max. of $19.95 when transaction value <$2,000) |
Most mutual funds can be purchased commission-free; however, the inbuilt MER will apply.
A minimum purchase of $1,000 or higher is also required for most mutual fund transactions.
Exchange-Traded Debentures cost $0 per trade.
Orders placed by phone incur additional costs. For example, the minimum commission for a stock, ETF, or mutual fund phone order is $44.95.
National Bank Direct Brokerage Account Fees
In addition to trading commissions, you should watch out for general account fees such as:
- Account Administration Fee: $100 is charged annually if your account balance is lower than $20,000 or you do not meet other qualifying requirements (e.g. 30 years old or younger; at least 5 stock, ETF or options trades for the trading year- June 1 to May 31, etc.).
- RRSP, RRIF, or LIF withdrawal: $50
- Excess contribution reimbursement: $100
- Account transfer to another institution: $150
- Paper statements: $6/quarter
- NSF cheques: $45 each
- Estate settlement: $200 per estate
- Gains and losses report: $50 per item
- Duplicate statements or confirmations: $10 per item
Is National Bank Direct Brokerage Safe?
National Bank Direct Brokerage is a division of National Bank Financial Inc., a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF).
CIPF membership affords NBDB’s clients asset protection of up to $1 million if the firm becomes insolvent.
This online discount broker is also a part of the National Bank of Canada which was founded in 1859 and is one of Canada’s largest banks.
Pros and Cons of National Bank Direct Brokerage
The benefits and downsides of this trading platform are:
Pros:
- $0 commission stock and ETF trades
- Offers a variety of accounts and investment products
- Owned by a big bank
Cons:
- The annual inactivity fee increases your costs if you have a moderate account.
National Bank Direct Brokerage vs. Alternatives
The table below compares NBDB with some of its competitors, including Questrade, Wealthsimple Trade, and Qtrade.
| National Bank Direct Brokerage | Wealthsimple Trade | Questrade | Qtrade | |
|---|---|---|---|---|
| Stock trading fee | $0/trade | $0 | $4.95 – $9.95 | $8.75 |
| ETF trading fee | $0/trade | $0 | $4.95 – $9.95 | $8.75 |
| Options/contract | $0 + $1.25 | N/A | $9.95 + $1.00 | $8.75 + $1.25 |
| Types of accounts | RRSP, TFSA, RESP, RRIF, LIRA, LIF, margin, corporate, etc. | Personal non-reg, RRSP, TFSA | TFSA, RRSP, RESP, LIRA, LIF, RRIF, margin, corporate, etc. | TFSA, RRSP, LIF, RESP, margin, corporate, etc. |
| Minimum investment | $0 | $0 | $1,000 | $0 |
| Account administration fee | $100/year if balance is less than $20,000; or do not meet other conditions | None | None | $25/quarter if balance less than $25,000 |
| Platforms | Web | Web and mobile app | Web and mobile app | Web and mobile app |
| Promotions | N/A | $25 bonus when you fund with $150 or more | $50 in free trades when you deposit $1,000 or more | $50 bonus when you deposit $1,000 |
| Learn more | – | Visit | Visit | Read Review |
Related: Best National Bank Credit Cards
One feature I found useful with TD (and must be available with other brokers) is after hours trading. If you look at charts of major players many will spike and dip after hours so if you have the good sense to put in a high sell order or low bid order it may just get filled. This is great because the vast majority of the time when an equity moves very fast up or down it usually recovers shortly after. You can almost never come close to hitting the top or bottom of course but its a whole lot better than doing things normally. TD gives me access for 90 minutes before and a full 4 hours after. Now the real market is actually between 4am > 8pm so I’m only getting a small part of that before and missing an hour at the end. A very few ETF’s like SPY and QQQ trade 24 hours a day, 5 days a week. But you have to be American to have access to those hours. Sorry – we were just born on the wrong side of that border if you like to invest.
The page /information needs to be updated- National Bank has recently declared NO Commission/trading fee on ETFs, Stocks etc!!
NB’s layout is much nicer than questrade’s.
a real pro of questrade is their live chat: once you’re logged on requesting a live chat i usually get a rep in under 1 min (for WS it’s 2-10 min)…but for national bank however: their live chat doesn’t work: instead it directs you to a ‘contact form’ but there is nothing to fill in…instead you get an FAQ and Toll free to call (wait times 1-2 hrs in both instances i called, the recording told me..and then it redirects me back to the live chat…so round and round it goes)…so right now, given the new zero trade fees, i think they’re overwhelmed and can’t offer the manpower to support this new approach.
How unfortunate our value as customers has deteriorated so far we are forced to deal with however some providers
choose to deal with us. The creation of OfficeRobo’s has cost me time and mone
y. No idea how to fight this … anyone?
Dec 28/2021 :update….has been almost 3 months now with national bank
and i’m happy overall that i switched my RRSP from Questrade
…going to switch my TFSA from Wealthsimple too.
things i wish NBB had: 2 way security verification upon signing in (i hear it’s coming as is a Web based app)
…real chat vs useless botchat.
WS: sure their layout is nice but you’re to be charged 10/mo for US holdings..and i understand still the 1.5% conversion fee.
but with national bank i’m charged ZIP for all US and Cdn trades…and I can do Norbert’s Gambit to save money on cdn to us conversion
vs WS doesn’t have this (hence the 1.5% gouge fee when they convert the cdn to us for you)….that 1.5% adds up alot if you’re wishing to convert 10k or so ($150 right there alone)