Investors in Canada are conducting more trades and increasing the amount of their investments as overall satisfaction with discount brokerage firms improves, according to the J.D. Power 2013 Canadian Discount Brokerage Investor Satisfaction Study released Monday.
The research firm notes that a transition has been occurring in the Canadian investment market year over year, as the percentage of investors with only discount brokerage accounts has increased to 33 per cent in 2013 from 21 per cent in 2012.
Among investors with discount brokerage accounts, the percentage of moderately active traders — those who make between one and 12 trades per year — has increased to 58 per cent in 2013 from 46 per cent in 2012, while the amount of their investable assets has increased to a median of $141,191, up from $133,665.
With more active trading, overall investor satisfaction with discount brokerage firms in Canada increases for a third consecutive year and is 724 (on a 1,000-point scale) in 2013, up 24 points from 2012 and 45 points since 2011.
“More investors are making trades in Canada, and they appear to be recognizing the value their discount brokerage firm is able to provide,” said Craig Martin, director of investment services at J.D. Power.
The study, now in its fifth year, measures investor satisfaction with their primary discount brokerage firm across six key factors (in order of importance): interaction; trading charges and fees; account information; account offerings; information resources; and problem resolution.
National Bank Direct Brokerage ranks highest in discount brokerage investor satisfaction with a score of 757, and performs particularly well in the interaction, account information and account offerings factors.
Following in the rankings are Disnat (750); BMO InvestorLine (742); and TD Direct Investing (734).