Trade, invest, and manage your account — all in one place
An ETF is a pooled security that typically holds a basket of different stocks or indices (like a mutual fund) but they’re traded on an exchange (like a stock).
ETFs first appeared on the markets in the 1990s, and in fact they were invented by Canadians on the TSX! There were only a few available in the beginning, but long-term investors flocked to them – attracted by the balance they offer and the low fees. By the early 2000s, there were over 200 ETFs. Today, there are thousands.
There are two main differences. The big one is fees. The MERs (management expense ratios) for an ETF are usually much lower than a comparable mutual fund.
The other benefit is you can trade ETFs just like a stock any time the markets are open (including pre- and post-market), while mutual funds are traded once a day at the most (and some only trade once a week or once a month).
ETFs are traded just like stocks: right in your IQ trading platform. Plus, any service or tool we offer for stocks is available for ETFs, everything from research to market data, from executing a trade to registering for our free DRIP program. And any time you buy any North American-listed or Questrade Smart ETF™ in one of our Questrade IQ trading platforms, they are absolutely commission-free. When you decide to sell the ETF, you’ll pay the standard commission.
We mean buy ETFs commission-free. ECN fees may still apply, but you won’t pay a nickel of commissions when you buy ETFs with Questrade. If you decide to sell the ETF, you’ll pay the standard commission.
For clients trading in an RESP, you’ll be charged a flat, $5 fee on any day that you trade U.S. securities, ETFs included. This is a flat, per-day fee, no matter how many trades you make.
Questrade Wealth Management believes investors deserve access to ETFs that go beyond basic index investing. Questrade Smart ETFs™* are strategically designed to do exactly that. Whether they are equal-weighted, Canadian dollar hedged or actively managed, these ETFs provide investors with a low-cost alternative to mutual funds while maintaining diversification to manage risk. They’re also listed on the TSX, and you can buy them commission-free.
*Questrade Smart ETFs™ are a product of Questrade Wealth Management.