A Scotia iTrade brokerage account offers do-it-yourself investors access to various investment accounts, products, and trading platforms.
Owned by one of the biggest banks in Canada, Scotiabank, it is one of a few online brokers to offer commission-free ETFs.
Scotia iTrade’s flat-fee trading commissions are high compared to the pricing on independent discount brokers such as Wealthsimple Trade and Questrade.
This Scotia iTrade review covers its account offerings, trading platforms, fees, pros and cons, and alternatives.
Scotia iTrade Summary
Scotia iTrade
Overall
Summary
Scotia iTrade is a division of Scotia Capital Inc. and the online brokerage arm of The Bank of Nova Scotia (Scotiabank). It is one of the largest brokerage platforms in Canada and offers various investment accounts, including RRSPs, TFSAs, RESPs, and multiple non-registered accounts.
Flat trading fees on this platform are high at $9.99 per trade, and you also pay a yearly fee if you have a small balance. Investors who place 150 or more trades per quarter qualify for active trader pricing, which is significantly lower.
Pros
- Robust trading platform for experienced and active traders.
- Has a referral program.
- Access to a practice account.
- Young investors under 26 years can waive the quarterly fee.
- Active traders get a discount on trading fees.
Cons
- Flat-rate trading fees are high.
- A $100/year fee for small accounts increases costs for those investing small sums.
- The advanced trading platform and tools cater to active traders and high net worth investors.
Scotia iTrade Account Types
Traders using Scotia iTrade can access registered, non-registered, and non-personal accounts.
The registered accounts you can open on the platform include:
- Tax-Free Savings Account (TFSA)
- Registered Retirement Savings Account (RRSP)
- Registered Retirement Income Accounts (RRIF)
- Registered Education Savings Plans (RESP)
- U.S. Dollar Registered Accounts
For non-registered accounts, you can open a Scotia iTrade Cash Account, Scotia iTrade Margin Account, and a Scotia iTrade Cash Optimizer Investment Account.
Businesses can also use the platform for their direct investing needs.
Non-personal accounts available include:
- Investment Club
- Sole Proprietorship, Corporate, and Partnership Accounts,
- Trust or Estate Accounts
- Accounts for Non-Profit Organizations
Practice accounts are available if you want to test the trading platform without using real money.
Scotia iTrade Investment Types
The investment products you can buy on Scotia iTrade include stocks, Exchange Traded Funds (ETFs), mutual funds, bonds, new issues, GICs, and options.
Scotia iTrade was the first bank-owned brokerage in Canada to offer self-directed investors access to sustainable investing tools.
You can use the tool to rate over 1,200 companies on the Toronto Stock Exchange and Russell 1000 Index based on their performance with Environmental, Social, and Governance (ESG) factors.
Scotia iTrade Fees
Scotia iTrade’s trading commissions are among the highest in the industry at $9.99 per equity trade. This is similar to the base fee for TD Direct Investing and a few cents more than RBC Direct Investing and BMO InvestorLine.
Compared to these big bank offerings, Wealthsimple Trade does not charge trading commissions when you trade stocks and ETFs.
| Commissions | Stocks | Options |
| Standard fee | $9.99 | $9.99 + $1.25 per contract |
| Active trader pricing | $4.99 | $4.99 + $1.25 per contract |
| Phone-assisted trades | $65 | $65 |
You must place 150 or more trades per quarter to qualify for active trader pricing.
Fixed-income asset trades placed online cost $1 per $1,000 of face value. A minimum commission of $24.99 applies to each trade. If placed over the phone, an extra $65 fee applies.
For Exchange Traded Debentures, the fee is $1 per $1,000 of face value. A minimum commission of $24.99 applies to each trade. If you use the assistance of a phone representative, an extra $65 fee applies.
Scotia iTrade has 104+ commission-free ETFs you can buy without paying a trading commission when you execute your trade online or through TELE-TRADER and hold the ETF for at least one business day.
Regular trading fees apply when you sell.
Scotia iTrade Administrative Fees
A “low activity account administration” fee of $25 per quarter is charged if your account balance is $10,000 or less (non-registered accounts).
A $100 registered account fee is levied annually on RRSP, RRIF, LIRA, and LIF when the balance is less than $25,000 (sometimes waived).
These fees are waived if you are under 26 years of age.
Other fees to watch out for:
- Account transfer out: $150
- Copies of statements or confirmations: $5 each
- Canadian Controlled Private Corporation (CCPC) set up: $300
- CCPC annual fee: $100
- Monthly paper statement fee: $3
- Unclaimed account fee: $60 per quarter
Related: Best Online Stock Brokers in Canada.
Scotia iTrade Trading Platforms and Tools
Scotia iTrade clients have access to several trading platforms and research tools.
Scotia Online is the standard interface that is integrated with your banking account. It offers access to research reports from Reuters, ValuEngine, Scotiabank Global Banking and Markets, Sabrient, and more, plus portfolio charting, sustainable investing, and screeners.
The Scotia iTrade mobile app can be used for buying and selling stocks and ETFs on the go. It is available on the App Store and Google Play.
Experienced investors and active traders can use the Scotia iTrade Flight Desk platform for access to powerful tools of options trading, customizable layouts, advanced strategies, in-depth analysis, heat maps, and level 2 real-time streaming quotes.
There is a fee for using the Scotia iTrade Flight Desk Standard or Premium service:
| Trades or total assets per quarter | Standard Service | Premium service |
| $50-$250k assets | $29.95 | $69.95 |
| 0-8 trades, or <$50k assets | $39.95 | $79.95 |
| 9-29 trades | Free | $39.95 |
| 30-149 trades or >250k assets | Free | Free |
| 150+ trades | Free | Free |
Scotia iTrade has a well-developed listing of free educational resources for new and experienced investors with how-to videos and guides.
The Scotia iTrade iClub has two membership tiers.
If you make 150+ trades per quarter or have $1 million in assets with Scotia iTrade, you gain Platinum iClub membership and enjoy;
- Dedicated personalized service
- Free Flight Desk Premium service
- Low commissions starting at $4.99 per trade
- Access to iClub member-only events
A Gold iClub membership is open to clients who place 30 or more trades per quarter or have $250,000 in assets with Scotia iTrade. It offers:
- Dedicated personalized service
- Free Flight Desk Premium service
- Annual administration fee waivers on registered accounts
- Access to member-only events
Scotia iTrade Pros and Cons
What are the benefits and downsides of Scotia iTrade?
Pros of Scotia iTrade
- A robust trading platform for experienced and active traders.
- Access to a practice account if you want to test-run the platform without committing funds.
- Young investors under 26 years can waive the low activity quarterly fee.
- A referral program that pays you up to $100 or 50 free equity trades per referral.
- Active traders and high-net-worth investors get a discount or commission and free access to the Flight Desk platform.
- Offers 100+ commission-free ETFs.
- Newcomers to Canada get ten free equity trades through the Start Right Program when they invest a minimum of $1,000 in a Scotia iTrade account.
- Access to a tool that helps to identify sustainable investments.
Cons of Scotia iTrade
- The standard trading commissions on this platform are some of the highest. You will get lower fees to trade stocks and ETFs on Questrade and Wealthsimple Trade.
- The $25 quarterly low activity fee can add up to $100 annually for small accounts and newbies.
- The advanced trading platform and tools cater to active traders and high-net-worth investors.
Is Scotia iTrade Safe?
Scotiabank is one of the largest banks in Canada and has been around for over 188 years.
Scotia Capital Inc. is registered by the Investment Industry Regulatory of Canada (IIROC) and is a member of the Canadian Investor Protection Fund (CIPF).
The CIPF insures your account up to $1 million against a member firm’s insolvency.
Also, Scotia iTrade offers a security guarantee and will cover funds and securities unlawfully removed from your account due to fraudulent and unauthorized online transactions in your Scotia iTrade account (terms and conditions apply).
Scotia iTrade vs. Alternative Platforms
The table below shows how Scotia iTrade compares to RBC Direct Investing, Wealthsimple Trade, and Questrade.
| Scotia iTrade | RBC Direct Investing | Wealthsimple Trade | Questrade | |
|---|---|---|---|---|
| Stock trading fee | $9.99 | $9.95 | $0 | $4.95-$9.95 |
| Options fee/contract | $9.99 + $1.25 | $9.95 +$1.25 | N/A | $9.95 + $1 |
| Commission-free ETFs | 100+ | No | Yes (free to buy and sell) | Purchases are free; fees apply when you sell |
| Trading commission discount | $4.95/trade for active traders (stocks) | $6.95/trade for active traders (stocks) | N/A | $4.95/trade for active traders (stocks) |
| Types of accounts | TFSA, RRSP, RRIF, RESP, cash, margin, investment club, trust, corporate, partnership, non-profit organizations | TFSA, RESP, RRIF, RRSP, margin, corporate, cash investment club, partnership | TFSA, RRSP, personal non-registered | TFSA, RESP, RRSP, LRSP, LIF, LIRA, RRIF, margin, corporate, partnership |
| Minimum investment | None | None | None | $1,000 |
| Maintenance fee | $25 per quarter if balance is ≤ $10,000 | $25 per quarter if balance <$15,000 | None | None |
| Platform | Web and mobile app | Web and mobile app | Mobile app; web and mobile app for robo-advisor | Web, mobile app, desktop app |
| Transfer fees waived? | – | Up to $200 with transfers of $15,000+ | Up to $150 on transfers of $5,000+ | Up to $150/account |
| Other features | Sustainable investing tools; referral program | Robo-advisor platform; RBC Investease | Access to low-cost robo-advisor (Wealthsimple Invest) | Access to low-cost robo-advisor (Questwealth) |
| Promotion | – | – | Get a $25 cash bonus (Wealthsimple Trade) when you deposit $150+ | Get $50 in free trades when you invest at least $1,000 |
| Learn more | – | Learn more | Learn more | Learn more |
Scotia iTrade FAQ
Active traders get a discount of $5 per trade for equities and options ($4.95 vs. $9.99). To qualify, you must place 150 or more trades per quarter. Investors with $1 million in assets also enjoy this discount. The $25 quarterly low activity fee is waived for clients under age 26.
You can easily transfer funds from your Scotiabank chequing or savings account. You can transfer funds from another financial institution by filling out an electronic funds transfer form. Lastly, you can transfer existing investments from another bank to Scotia iTrade by completing a transfer authorization request.
Call 1-888-872-3388 from Monday to Friday (8am to 8pm ET) or email [email protected].
I am a platinum member due to having $1M in invested assets. I would like to correct one item in the article: platinum membership alone does not get you the discounted rate of $4.99 per trade. Only doing a minimum of 150 trades per quarter gets you that. I queried the bank and they replied today to confirm. I still pay $9.99 per trade. Also I have not experienced the negative customer service encounters mentioned by others in these comments.
I have had similar experience with iTrade just horrible customer service. First call it took 4 hours to talk to someone and when I did get through they gave me wrong information. I was so mad I decided to move my accounts over to another company. Its been a nightmare they have locked my accounts come up with all sorts of excuses why I can’t transfer like I have to transfer defunct stocks to iTrade etc. So far its been over a month and still no transfers. I have wealthsimple and CI investments which are both far superior. It just gets me how iTrade can be so bad and continue to be in business. My advise stay clear of iTrade.
Could you refer me for opening an iTrade account please? Thanks
@Jason: Unfortunately, I don’t have a referral link for Scotia iTrade.