My first view is based on the finding that client equity growth and prevailing interest rates are the main drivers of
brokerage equity prices.
Not exact matches
To clarify, the new commission
pricing applies to North American
equities / ETFs and options only (HSBC InvestDirect is one of a few Canadian online
brokerages that has global market trading capability).
Another very compelling slide from the Interactive Brokers presentation deck shows how much lower Interactive Brokers» commissions are for
equity and, in particular options trading, relative to their US peers even after a significant commission
price cut by the group of online
brokerages earlier this year.
Though the
brokerage firm benefits from rising
equity indices, higher trading and investment activity and a strong
brokerage franchise that helps in attracting trillions of client dollars, Charles Schwab seems to be
priced to perfection with a P / B ratio of 3.60.
The range for standard commission
prices for standard
equity trades at Canadian bank - owned
brokerages now stands between $ 6.88 (HSBC InvestDirect) and $ 24.99 + (Scotia iTRADE), an almost 4-fold difference; even the difference between $ 6.88 and the current industry standard of about $ 10 appears to be substantial.
Annual Disclosure Notice
Brokerage and Investment Advisory Services Cash Management Awards Points Program Rules Consolidated Report Disclosure Electronic Funds Transfer Services and Cash Management Program Debit Card IRA Clients — Notice of Approval International Disclosures Margin Account Facts and Disclosures Options Level Descriptions for Accounts at Baird Private Investment Management (Commission - Based
Pricing) Disclosure Routing of
Equity Orders Safety of Client Assets Schedule of Fees and Services Charges
The newer entrants to the Canadian discount
brokerage market, such as Questrade and Virtual Brokers, have driven
prices for
equity trade commissions to below the $ 1 per trade mark.
After working 30 or 40 years to build your
brokerage, you'll want to leverage the
equity you have created to sell it at the right
price and to the people you want.
One, a study of sales closed through the RE / MAX
Equity brokerage in Oregon - measured the effects of AHS Home Warranties on a home's listing and closing
price, and its time spent on the market.