HSBC InvestDirect Review (October 2021 Update)
HSBC InvestDirect Review
- Fees and Pricing
- Account Options
- Customer Service
- User Friendly Platform and App
HSBC InvestDirect Review Summary:
Overall we can’t recommend HSBC InvestDirect for many Canadians other than those who really need direct access to some of the previously mentioned world stock exchanges. For the vast majority of investors, the Toronto Stock Exchange (TSX) will fulfill all of your needs, and if more is needed, then certainly the New York Stock Exchange (NYSE) can handle what you need.
The deficits in customer services and platform usability simply can’t be denied, and the inactivity fees are inexcusable in 2020. Nowadays, there are many discount brokers who are simply just more competitive. You can read our Qtrade review and see for yourself just how big the difference in offering is.
- One of the biggest banks in the world
- Most markets and currencies to trade in
- $25 inactivity fee
- No commission free ETFs
- Outdated platform with no app
- Recent drop in customer service quality
HSBC InvestDirect is not among our top Canadian brokers: Higher fees, no mobile app or a signup bonus.View Alternative, Better Rated Canadian Brokers
HSBC (The Hongkong and Shanghai Banking Corporation) dates back to 1865. Today, it’s a multinational conglomerate and the 7th largest bank in the world. HSBC is best known in Europe, the Asia Pacific, and of course, here in North America.
HCBC InvestDirect Canada is one of the country’s well-known online discount brokerages. What sets it apart from most other Canadian discount brokerages is that it lets you trade on North American Stock Exchanges, as well as the Hong Kong stock exchange. HSBC InvestDirect is the only trading platform in Canada that allows access to 30 different domestic and international markets in 10 different currencies.
HSBC InvestDirect Fees and Pricing
While the overall fees are certainly not the best in Canada, and reviews of customer service and the platform indicate that there is much to be desired, HSBC InvestDirect is worth considering for those who have an interest in global trading. We’ll break it all down for you in this HSBC InvestDirect review.
HSBC InvestDirect ETFs and Mutual Funds
One of the biggest surprises when it comes to the HSBC brokerage is that HSBC InvestDirect does not offer any commission-free ETFs. Granted, HSBC InvestDirect isn’t the only brokerage who does this, Desjardins Online Brokerage and some of the big banks in Canada don’t offer any free ETFs either.
On the other hand, while there are no commission-free ETFs, the HSBC brokerage does offer more than 4,000 commission free mutual funds.
HSBC InvestDirect Trading Fees
HSBC InvestDirect only has two options when it comes to trading fees. In 2017 they introduced flat rate pricing which is $6.88 per trade online. This is a pretty impressive rate for Canadian online brokerages, as it is lower than that charged by the main big bank brokers.
For individuals who are considered to be Active Traders, which means they complete 150 or more trades per quarter, that fee drops even further to $4.88.
Options for both the flat rate pricing and the Active Trader pricing are an additional $1.25 per contract.
Keep in mind that these prices are for North American trades made online. There are additional commission fees for trades made on international markets. For example, trades made on European exchanges will incur an additional 0.50% if under 25,000 Euro.
HSBC InvestDirect Platform Fees
The HSBC InvestDirect platform is free to use. The platform generally receives positive feedback from users in terms of ease of use. However, those who are considered to be more active traders do wish for more detailed reporting and information. While some other brokerages offer platform upgrades for an additional cost, this is not an option with the HSBC broker.
HSBC InvestDirect Admin and Account Fees
Of course, we can’t forget about administration fees There are quite a few to take note of. This is a huge negative in my books!
- Non-registered accounts are charged a $25 inactivity fee if no trades are made during the quarter. However, this fee will be waived if you maintain a balance of $10,000 or more in the account.
- Registered accounts including RRSP, RRIF, and Locked-In Plans come with a $100 administration fee each year
- RESP accounts have an annual $50 administration fee
- Each registered account is permitted one free withdrawal, with each additional withdrawal costing $50.
Additionally, there are fees for wire transfers, handling, document administration etc. You can find the full list of admin-related fees here.
HSBC InvestDirect Accounts
HSBC InvestDirect allows clients to hold direct-trading, registered, foreign currency, personal, and corporate accounts. Registered account options include:
It is important to note that you cannot hold US dollars in these registered accounts.
HSBC InvestDirect Against Cryptocurrency in 2021
HSBC made waves in 2021 by stating that customers of InvestDirect could no longer trade the MicroStrategy (MSTR.O) stock due to its status as a “virtual currency product”.
The company’s press release stated, “HSBC has no appetite for direct exposure to virtual currencies and limited appetite to facilitate products or securities that derive their value from VCs (virtual currencies).”
This bold move runs contrary to several banks’ recent embrace of cryptocurrency and offering various Bitcoin-related product lines to customers.
HSBC InvestDirect FAQ
Who is HSBC InvestDirect Best For?
So, who is HSBC InvestDirect best for? In our opinion, there are simply many better options out there for Canadians. If you are coming from a country such as Singapore or Hong Kong and want to keep the same bank for simplicity’s sake, then HSBC might have limited value to you.
HSBC’s combination of high fees, low-rated customer service, dated trading platform, and relatively poor customer educational materials make HSBC InvestDirect a “stay away”.
Our number one pick for discount brokerages in Canada is Qtrade. To learn more about why they have finally overtaken Questrade as our top pick after several years, read our detailed 2021 Qtrade review.