With RRSP season now officially behind us, I’ve started thinking about where I’m going to invest this year’s contribution. I don’t know about you, but usually I have it figured out within the first couple months of having the funds available. Usually I fire off the trade, and then sit back and basically forget about it, maybe checking the quote once or twice a month on my iphone.
That got me thinking. With so many online stock brokerages offering enticing promotions for signing up, why do I bother paying trading fees at all? Right now, Scotia iTrade is offering a promotion that lets me trade for free for two months (or 100 trades, whichever comes first) and will pay my transfer fees to get out of whatever account I have now. It only took me a couple minutes online to find that deal, so there might even be better ones out there.
Here’s the gist of my idea: every single year you transfer from one company to another, taking advantage of their new customer promotion. Since I usually enter into my RRSP positions relatively quickly, I can easily invest my entire contribution in 2 months, taking advantage of the free trades.
Sure, switching companies each year will be a bit of a pain in the ass. How long does it really take though? An hour? Two? Would you spend an hour to save $50?
The offer is even more enticing if you’re a more active trader.
Saying all that though, one would probably just be better to go with a low cost company like Interactive Brokers and call it a day.