Unsurprisingly, the Globe and Mail's online securities rankings don't give much weight to mutual fund buying and selling fees.
The path to DIY investing often begins with the decision to move from mutual funds to exchange-traded funds, stocks, and bonds. But the low-fee mutual funds available to DIY investors can also provide a compelling case for considering these products. Look for Series F mutual funds with no advisor fees.
Next, let's take a look at the fees that the brokers in our ranking charge their customers to buy and sell mutual funds. Interactive Brokers and Wealthsimple are included in our ranking of brokers, but they are not included here because they do not deal in mutual funds.
BMO Investor Line: There are no fees for investment trusts
CIBC Investor's Edge: There are no fees for money market funds or high-interest savings accounts. Other mutual funds cost $6.95 to buy or sell.
CI Direct Transaction: No fees
Desjardins online brokerage: Most funds have no fees. $32 per transaction with a few exceptions. Note that Desjardins has zero commissions on stocks and his ETFs.
HSBC InvestDirect: $6.88 per order
National bank direct intermediary: Like stocks and ETFs, investment trusts also have no fees.
Qtrade investors: $8.75 per order
Quest trade: Buy or sell for $9.95
RBC Direct Investment: Fees for buy or switch orders range from 1% of the total trade amount up to $50, and there are no sell fees.
Scotia iTrade: $9.99 per trade, excluding money market funds and high-interest savings accounts
TD Direct Investment: No fees
I've long loved passive index investing through low-cost ETFs, but the ETF industry has recently introduced high-fee funds that focus on specific market niches and strategies. If you are comfortable paying the costs of these funds, you may want to consider what is available in Series F mutual funds. Management expense ratios for these funds in the Canadian equities and dividends category range from 0.75 to 0.85 per cent.
Another point when buying mutual funds through digital brokers: Be sure to choose carefully. If you sell within 90 days, you may have to pay a short-term redemption fee.
–Rob Carrick, personal finance columnist
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Edited by Globe Investor Staff