QUESTRADE BASICS

A transfer fee rebate reimburses the fees charged when transferring an account from one brokerage to another. This guide explains how these rebates work, what they typically cover, and how eligibility is determined.

This information is provided for educational purposes only and does not constitute financial advice or a recommendation regarding any specific account or action.

What a Transfer Fee Rebate Actually Covers

A transfer fee rebate is a brokerage promotion in which the new brokerage reimburses the transfer-out fee charged by the previous institution. This type of rebate addresses a common barrier: most brokerages charge an administrative fee to move an account, typically $50–$150 per account.

Rebates generally cover transfer-out fees for accounts such as non-registered (cash or margin), TFSA, RRSP/RRIF, and, when offered, corporate or joint accounts. In practice, the rebate is applied as a credit to the new account’s cash balance after proof of the fee is submitted. Most programs include a maximum cap, often around $150 per account.

It is important to note that the fee must be paid first, and eligibility depends on completing the claim process and meeting any minimum thresholds set by the brokerage.

Today’s Common Offers (Quick Snapshot)

Transfer fee rebates in Canada vary by brokerage but generally cover the cost of transferring an account up to a set maximum. Offers often require a minimum transfer amount, are credited as cash after the transfer completes, and might be combined with other promotions, such as cash bonuses or free trades. These rebates are offered by DIY brokerages, full-service brokerages, and bank-owned platforms to reduce switching friction and attract new assets, with terms and timelines varying by provider.

Typical Market Pricing and Offer Structure

In Canada, transfer fee rebates generally follow a few common structures:

• Cover your transfer-out fee up to $150.
• Minimum transfer size required (e.g., $25,000+ at some brokerages).
• Cash is credited to the new account after the transfer completes.

Brokerages compete on three main levers:

• Rebate cap: Higher caps or promotional offers could make a program more attractive (e.g., $150 vs. $300+).
• Minimum transfer size: Some rebates only apply if account assets exceed a threshold.
• Processing time and friction: Ease of submitting proof and claim forms varies.

Many promotions are combined with other perks, such as cash bonuses, free trades, or interest promotions, though rarely offered simultaneously.

Who Offers Rebates and How They Position Them

Transfer fee rebates are available from a variety of providers:

• DIY brokerages: Questrade, Wealthsimple, and major bank-owned brokerages often offer clear, published rebates.
• Full-service brokerages and advisor platforms: Occasionally provide rebates on a case-by-case basis.

These programs exist to reduce switching friction and help brokerages attract new people. It’s beneficial to check the following details before initiating a transfer:

• Maximum rebate per account
• Minimum transfer amount required
• Whether the transfer must be in-kind or cash
• Definition of a “new” client
• Deadline to submit the claim

Eligibility Fine Print

Transfer fee rebates often come with detailed eligibility rules that determine whether a claim is approved. These conditions might relate to transfer size, account type, timing, and client status, and are a common reason reimbursements are declined. Reviewing the fine print before initiating a transfer helps clarify what qualifies, what documentation is required, and when a claim must be submitted.

Eligibility Rules That Block Claims

Transfer fee rebates often include specific eligibility rules that could prevent claims from qualifying. Common restrictions include:

• Minimum transfer size: Typically between $15,000 and $25,000, depending on the brokerage.
• Eligible account types: Some rebates exclude RESPs, corporate accounts, locked-in accounts, or other special accounts.
• “One rebate per client” limitations: Multiple accounts under the same client might not be reimbursed.
• Transfer method: Some programs require in-kind transfers instead of cash.
• New client definition: Existing accounts or clients might not qualify.
• Time windows: In many cases, brokerages apply time limits for submitting rebate claims after a transfer is completed.

Understanding these rules helps set realistic expectations before submitting a claim.

Proof Requirements and How Claims Get Rejected

Most brokerages require documentation to process a rebate claim. Common proof includes:

• Statement showing the transfer-out fee charged by the previous institution.
• Confirmation of transfer completion.

Frequent reasons claims are rejected include:

• Fee not clearly visible on the statement.
• Fee charged outside the promotional window.
• Transfer amount falling below the required threshold after market fluctuations.
• Partial transfers that do not meet program criteria.
• Missing or incorrect account information.

A practical tip is to download a PDF statement that clearly shows the transfer-out fee line item to reduce the chance of rejection.

How Your Transfer Actually Moves (ATON)

Most brokerage account transfers in Canada are processed through ATON (Automatic Transfer Online Notification), the standard system used to move accounts between participating financial institutions. ATON is designed to transfer assets efficiently while maintaining account continuity.

Through ATON, the following typically move between institutions:

• Securities positions, such as stocks, ETFs, and eligible funds.
• Cash balances held in the account.
• Cost-based information, although this data might not always transfer perfectly, and sometimes requires following up.

Transfers could be structured as either a full transfer, where all assets move at once, or a partial transfer, where only selected holdings are transferred. Assets might also move in-kind or as cash. In-kind transfers keep investments unchanged, while cash transfers involve selling holdings before the transfer, which could affect timing and tax reporting.

Transfers could take longer when accounts include non-standard assets, such as certain mutual funds, GICs, or private placements, or when they involve locked-in or registered plans. Delays might also occur if there are account mismatches, such as name differences or joint vs. individual ownership. While a transfer is in progress, temporary trading restrictions or unsettled positions are common and usually resolve once the transfer is complete.

CIRO’s 10-Day Transfer Push

CIRO has introduced initiatives aimed at speeding up and standardizing account transfers across Canadian investment dealers. The goal is to reduce unnecessary delays and improve consistency between sending and receiving institutions.

For investors, this translates into clearer timeline expectations and improved accountability when assets move between brokerages. Standard, well-documented transfers are more likely to be completed faster, and delays are increasingly expected to be communicated more clearly by the institutions involved.

In practice, clean transfers involving common assets and matching account details might be completed more quickly under these guidelines. However, the initiative does not guarantee that all transfers meet a fixed timeline. Transfers involving non-standard assets, locked-in plans, or missing documentation might still take longer.

If a transfer appears stalled, a practical step is to ask the receiving broker which stage is pending, such as paperwork review, action by the relinquishing institution, or an asset-specific restriction.

Step-by-Step: Claim Your Rebate

Claiming a transfer fee rebate typically involves confirming eligibility before the transfer begins and submitting proof after it completes. While the process varies by brokerage, most programs follow a similar sequence: initiate the transfer through the new institution, document the transfer-out fee charged by the previous brokerage, and submit the required materials within the stated timeframe. Keeping records at each stage helps reduce delays and follow-up requests.

Before the Transfer Starts

Step 1: Confirm eligibility: Review the minimum transfer size, eligible accounts, and any promotional time windows.

Step 2: Decide between a full or partial transfer: Full transfers could be simpler for rebate eligibility, as partial transfers might not qualify under some policies.

Step 3: Choose in-kind or cash transfer: In-kind transfers keep holdings unchanged, subject to the transferability of the specific assets. Conversely, cash transfers involve selling assets, which may impact market timing and result in tax reporting obligations.

Step 4: Save evidence early: Keep copies or screenshots of promotional terms, and, if available, the current brokerage’s transfer fee schedule.

Step 5: Initiate the transfer with the new brokerage: Transfers are typically initiated by the receiving institution rather than by manually requesting a transfer-out from the existing brokerage.

After the Transfer Completes (How Reimbursement Happens)

Step 6: Locate the transfer-out fee: Find the fee on the statement issued by the previous brokerage.

Step 7: Submit proof to the new brokerage: This usually involves uploading a statement, completing a form, or contacting support.

Step 8: Many brokerages process rebates within several business days after approval, though timing varies.

Step 9: Confirm the cash credit: Approved rebates generally appear as a cash credit in the account.

Step 10: Keep records: Documentation might be useful for follow-ups, disputes, or future account reviews.

Costs and Caveats Not Covered by Rebates

A transfer fee rebate does not mean that switching brokerages is entirely cost-free. While the rebate might offset part of the transfer-out fee, other costs could still apply. Some institutions charge separate account closure fees, and transfer fees that exceed the rebate cap (for example, a $200 fee with a $150 cap) might have a remaining balance. When multiple accounts are transferred, such as a TFSA, RRSP, and non-registered account, each account might incur its own fee. Accidental deregistration of a registered account could also trigger additional charges.

There could also be less visible costs. Cash transfers might involve time out of the market, and currency conversions could result in foreign exchange spreads. Some assets might also need to be sold if they are proprietary or not supported by the new brokerage. Understanding these limitations helps set realistic expectations about overall transfer costs.

Three Quick Scenarios to Help You Understand

Scenario 1: Clean Transfer with Full Reimbursement

A single account is transferred in full and in kind. The previous brokerage charges a $150 transfer-out fee. After the transfer completes, proof of the fee is submitted, and the new brokerage applies a $150 rebate as a cash credit. The result is a net transfer cost of $0 (excluding applicable taxes), assuming all eligibility conditions are met.

Scenario 2: Multiple Accounts and Rebate Caps

An RRSP and TFSA are transferred together, with $150 charged for each account, totaling $300 in transfer-out fees. If the rebate is capped per account, both fees could be reimbursed. If it is capped per client or household, only $150 might be covered, leaving part of the cost unpaid. The outcome depends on how the brokerage applies its rebate limits.

Scenario 3: Missing Eligibility by a Narrow Margin

A rebate requires a $25,000 minimum transfer value. Market movement during processing reduces the account value to $24,600, and the claim is declined. This scenario highlights the importance of maintaining a buffer above the minimum thresholds.

Pre-Switch Checklist

Before initiating a transfer, it might help to review a concise checklist to ensure the process goes smoothly:

• Confirm the transfer-out fee at the current brokerage (amount per account).
• Verify the rebate cap, minimum transfer size, and eligible account types.
• Determine the transfer method for each account (full vs. partial).
• Choose in-kind transfers unless planning to sell assets (tax and timing considerations).
• Download recent statements to document ownership and fees.
• Temporarily pause DRIPs or recurring buys.
• Ensure names match exactly, especially for joint accounts.
• Check cash balances to prevent negative balances during transfer.
• Save a screenshot of promotional terms for reference.

This checklist is a helpful, practical reference to reduce errors and streamline the rebate claim process.

Transfer Fee Rebates: What to Know and Do Next

Transfer fee rebates could effectively eliminate the cost of switching brokerages when eligibility rules are followed. To get started, verify your current broker’s transfer-out fee, select a rebate offer that matches your account and transfer type, choose an in-kind transfer for a smoother process, and submit proof promptly once the transfer completes.