TD Direct Investing Review Summary:
Trading Fees and Pricing
ETF Trading Fees
Overall Banking Convenience
TD Direct Investing Review Summary:
There is no denying that TD Direct Investing is a world-class platform to buy and sell investments on. The convenience of being able to take care of all of your banking needs “under one roof” is also a valuable consideration for many people. The tradeoff for the excellent platforms and convenience, is the fees. The cost of doing business with TD – is literally the cost of your trading business.
If you run your day-to-day banking with TD, the safety and convenience of keeping everything with one of Canada’s most trusted companies might make the higher fees worth it for you. Our TD Direct Invest Review will detail the extensive set of options that TD has as part of their platform – it’s just that you should know up front that you will be paying a premium for those features.
For other Canadian investors, better, more user-friendly platforms and the same full range of account options can be enjoyed for a much lower price at our most recommended Canadian online brokers: Qtrade and Questrade.
- One of Canada’s most trusted financial companies
- Easy and convenient if you already bank with TD
- Modern, easy to use platform
- Good amount of account options to choose from
- Higher trading fees, ETFs in particular
- Very high account fees unless you maintain a $15K balance
The TD Direct Investing online discount brokerage is amongst the most popular of Canada’s online discount brokerages. TD has consistently been on the forefront over the last decade as investors have moved from expensive “full service brokers”, to the much cheaper discount broker model that we see today.
As one of Canada’s largest companies and a brand name that extends outside of Canada’s border, it is no surprise that TD’s online trading platforms are amongst the most popular in the country. Our in-depth TD Direct Investing review to learn more about their trading fees, accounts, and the different broker platforms that exist under the broader TD umbrella.
TD Direct Investing’s Trading Fees and Prices
When discussing TD Direct Investing’s Trading and account fees, it’s important to consider that TD (and their major competitors at BMO, Scotia, CIBC, and RBC) are not known for trying to be the lowest-cost providers of banking and investing services in Canada. Instead, they seek to provide ultra-safe products, and user-friendly customer experiences, for a competitive price model. TD Direct Investing certainly accomplishes that goal. They provide elite-level usability and user options, for a similar price point as their competitors.
TD Canada Account Fees and the TD Household Program
The vast majority of TD Direct Investing customers are going to fit into their zero-account-fee platforms: TD WebBroker and the TD Mobile Investing app.
The key factors in determining if you will have to pay TD’s account maintenance fees are if your portfolio is more than $15,000 OR you are part of the TD Household Program.
The TD Account Maintenance Fee is $25 per quarter, or $100 per year.
While the $15,000 threshold for an individual’s TD Direct Investing assets is pretty easy to understand, investors can also avoid the account maintenance fee by meeting one of the following conditions as part of the TD Household Program.
- If multiple people in your household use TD Direct Investing, and your combined assets are above $15,000.
- At least one member of your household sets up a $100+ monthly automatic contribution through the Systematic Investment Plan (SIP).
- You complete 3+ commissionable trades in the preceding quarter (three-month stretch).
- Someone in your household uses TD Direct Investing for their Registered Disability Savings Plan (RDSP).
TD Canada Stock Trading Fees and Advanced Dashboard
When it comes to the TD Direct Investing trading fees, you’re going to pay $9.99 every time you buy or sell shares of a company or units of an ETF. You can trade on any North American stock market.
If you – OR your combined household – make more than 150 trades per quarter, TD will lower that trading fee down to $7.00 per transaction, as every TD Direct Investing account in your household will now qualify for Active Trader commission pricing. That said, the vast majority of everyday investors will never hit this mark, so for most people $9.99 is the relevant number.
There are no ECN fees when using TD Direct Investing.
TD Canada ETF Trading Fees
Unlike Questrade, Qtrade, and Virtual Brokers, TD Direct Investing does not offer free ETF purchases or sales. Buying an ETF is treated exactly the same way as buying a stock/share, and you will pay the same $9.99 commission (or $7.00 if you qualify for Active Trader status).
|Online Discount Broker||Per Transaction Cost to Buy ETFs||Per Transaction Cost to Sell ETFs|
|TD Direct Investing||$9.95||$9.95|
|Qtrade||$0 – $8.75||$0 – $8.75|
TD Options Trading Fees
Personally, options trading isn’t a part of my investment portfolio, but if you’re into the adrenaline rush of shorts, hedging, etc., then TD is going to charge you $9.99 per trade + $1.25 per contract. That drops to $7.00 per trade + $1.25 contract fee if you reach Active Trader status.
TD Direct Investing Platform Comparison
TD Canada Investing has three separate platforms and then one platform that commonly gets mistaken for being available to Canadians (thinkorswim). Below is a chart summarizing the information on their site.
Investors and traders
Active U.S options trading
Minimum deposit and account balance
North American stocks and options trading
Advanced order types: stop, stop limit, trailing stops (by price and %), trailing stop limit
Streaming market data
Daily, weekly, and special reports
Financial statements, earnings estimates, ratio analysis and analyst ratings
400+ technical studies and 20 drawings, including eight Fibonacci tools
TD Direct Investing Account Types: TFSA, RRSP, Non-Registered
As a top-end online broker, TD Direct Investing offers all of the usual accounts including:
- Non-registered accounts (both CAD and USD)
- Margin Accounts
- RRSP (both CAD and USD)
The bottom line is that while you might pay more in commissions to use TD Direct Investing, you’re going to absolutely have access to all of the accounts that you could ask for as a Canadian Investor.
Introducing the New TD Goal Assist for 2021
As investors continue to pour into DIY online investing in 2021 TD has introduced a really cool new platform that the MDJ editorial team is pretty excited about. (Now if only those fees would come down!)
The new TD app is known as TD GoalAssist and the idea is to help DIY index investors through the use of TD’s in-house ETF portfolios. The TD “one-click” portfolios (you can see how they compare to the rest of Canada’s all-in-one ETFs) are available through the app commission-free.
Paul Clark, the President of TD Direct Investing introduced the product by stating:
“We know investing can be intimidating and many Canadians may simply put off getting started as a result. We believe you shouldn’t need a lot of money or expertise to start building your investing journey, which is why we created TD GoalAssist. This new mobile-only investing service is straightforward, uses plain language and is grounded in what our clients have told us they’re looking for – goal planning, education and low cost.”
Clark then went on to add:
“We know a lot has changed in our lives this year as a result of the COVID-19 pandemic. From an investing perspective, we’ve seen a significant increase in demand for online investing and more people trying investing on their own. TD GoalAssist could not come at a better time as Canadians are looking for an easy and affordable way to invest.”
Anything that helps investor education and lets people know about cheap and easy ways to invest is a major upgrade in my opinion. We’ll be sure to update this TD Direct Investing Review as we move forward in 2021 in order to illustrate just how the new TD GoalAssist platform is being received.
TD Direct Investing FAQ
Who Is TD Direct Investing Discount Broker Best for?
That said, it’s not like TD Direct Investing is miles behind or anything! The WebBroker platform itself might be the best in Canada according to the Globe and Mail’s Rob Carrick. If you ignore the difference in ETF commissions, Questrade or Qtrade won’t save you much relative to TD’s offerings. However, that free ETF purchasing perk is a massive consideration for many MDJ readers!