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Canadian Brokerage commssions matrix in Excel - in one word WOW!

Its been quite a while since I have posted on this or any other social networking site as I have been incredibly busy refining my trading tools and platforms designed in Excel. Here is one that I put together at the beginning of the summer and since Seeking Alpha is a great site promoting all things trade and investments, I thought that there would be no better place to highlight just exactly what this tool does.

As we all know there is a plethora of online brokerages where one can trade through. Primarily banks are the dominant player in this space and there are a number of reasons for this. Just their sheer size and marketing budget alone would be enough to oust the smaller players, but add to that the data base they already have at their disposal and its no wonder each of the Canadian major banks all offer online trading platforms. I recently read an approximately 100 page paper written by a UBC (Unniversity of British Columbia) student who was trying to secure her MBA credentials. The paper dissected the profitability of TD Banks online brokerage, its astounding growth over the past 7 years and just HOW important a "slice of the pie" these online trading commissions had become to the overall profitability to the TD Financial Group as a whole. Is it any wonder the other major banks and now boutique brokerages have jumped on board to get their own slice of the online trading "pie"

What the consuming public does NOT know (or if they do have very little knowledge, time or inclination to explore this reality) is the VAST discrepancies between what one paysdepending on not only which bank or brokerage firm you choose to trade though, but other dynamics such as volume of trades, dollar value of the account, number of shares traded per quarter, value of the stock or options, Canadian or US equities or options, and a host of other variables. And you now what ? Despite the fact that they are in competition with each other, they love the choice because it allows them (the banks and brokerages) to operate basically unchecked. Until now.

One of the greatest jokes, or I should be calling it "cash grabs" is a particular Canadian bank whose online trading platform charges the client more money when trading options, should the value of the options contract exceed certain thresholds. For example, if you are about to purchase a certain options contract and the price is $2.00 a contract, the relevant commissions costs are levied- a fellow trader my wish to trade the identical underlying stock but decides to trade an in the money options contract and that value lets say for arguments sake is $4.00 per contract. As a result of the option contract being priced higher, this particular bank feels justified in charging you a HIGHER commission rate because of the value of the option contract. Where does the justification for this come from? A great friend of mine was director of online trading division of a major Canadian bank and he brought this my attention, telling me it nothing more than a cash grab because there was no additional cost to any bank or brokerage to execute an options trade on the identical underlying stock simply becasue one options contracts was priced at $2.00 and another at $4.00. But charge it they do and reap the benefits along the way.

One final note. I hear and see commercials on the radio and T.V. all the time about saving $300 to $400 a year in your auto insurance premiums. The message is universal despite the company running the ad - that it pays to shop around. Think about that for a minute - they are reaching you where it counts (as always) in your pocket book. I mean who DOESNT want to save $300 -$400 a year in insurance premiums, I know I certainly would. Then take that same mindset when it comes to trading and the commissions you pay. If you are an active trader - you could be saving yourself literally thousands upon thousands of dollars annually if you only shopped around. At the end of the day, its an execution cost - its not a car, its not a nice new outfit or a house or furniture, its an intangible, a fee I must be willing to pay in order for me to trade. Often times I close many of my trades out the same day or a few days there after given I am a swing trader and if I can save myself substantial fees in execution costs that goes directly to my bottom line profitability.

Please click the 2 links below. These will open part 1 and part 2 of a  mini web tutorial series highlighting how this platform works in Excel. I think you will be amazed and here's the best part - its 100% free brought to you by Fulcrum Shift Trading. Just send me an email request to and I will send you a copy of the commissions matrix to download and use. No catch, no gimmick - just a free version of what you are about to watch on the link below. And like the ING Bank commercials says "save your money"          part 1    part 2


Kindest Regards

Brian Ault - Founder

Fulcrum Shift Trading