Qtrade Direct Investing™ makes it easy to build a well-diversified portfolio, with access to a wide array of investment choices.
Here is a quick overview of the securities you can choose for your Qtrade account, and the advantages of each.
| Investment type |
Details |
Advantages |
| Stocks
Stocks (also called shares or equities) represent an ownership position in a publicly traded corporation |
- Canadian stocks that trade on the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSXV) and Canadian Stock Exchange (CSE)
- U.S. and foreign stocks that trade on the New York Stock Exchange (NYSE) and Nasdaq
- Over the counter (OTC) stocks
- New issues — including IPOs (initial public offerings) as well as secondary or treasury offerings
- Rights and Warrants
|
- Allows diversification across industry sectors and geography
- Accommodates strategies based on growth, or value, or on generating income from dividends
- You can borrow (trade on margin) to buy stocks trading for $3 or more on major stock exchanges
|
| ETFs: exchange-traded funds
Investment funds that trade on stock exchanges. ETFs that track the performance of various benchmark indexes are popular. Variations include actively managed and speciality ETFs.
|
- 100 commission-free ETFs
- Passive ETFs that track benchmark indexes
- Actively managed ETFs with mandates to outperform benchmarks
- Specialty ETFs for various sectors, commodities and other niches
|
- Easy to achieve diversification
- Liquid: easily bought and sold throughout the trading day at current market prices
- Low management fees
- ETFs trading for $3 or more can be purchased on margin
|
| Mutual funds
Portfolios of stocks, bonds and other investable assets which are professionally managed on behalf of many investors.
|
- Thousands of funds to choose from
- Low-expense ‘Series D’ funds available
|
- Benefit from expertise of professional portfolio managers
- Easy to achieve diversification
- Liquid: easy to buy and sell
- No commission to buy, so well suited to monthly contribution plans
|
| Bonds
Debt instruments issued by governments and corporations, usually for a specific length of time. They have a par (or face) value, which is repaid to the holder upon maturity of the bond. They also pay interest, which is the buyer’s return (or yield) on the bond. |
- Huge inventory of Canadian and U.S. government and corporate bonds
- Related products such as commercial paper, strip coupons, and treasury bills
|
- Predictable income stream
- Can play a key role in a well-balanced portfolio
|
| GICs: Guaranteed Investment Certificates
Secure investments that offer a guaranteed rate of return over a fixed duration. Issued by financial institutions.
|
- Large inventory available
- Flexible options with rates and maturities to suit your needs
|
- Safe — principal is guaranteed up to $100,000
|
| Options
Contracts giving the owner the right, but not the obligation, to buy (“call”) or sell (“put”) an underlying stock at a specified price (strike or exercise price) for a limited time, usually a few months.
|
- Long calls and puts
- Spreads
- Covered writing
- Uncovered writing
|
- Hedge against risk, generate income, and speculate on market moves
- Use leverage to capitalize on changes to a stock’s price without needing to buy the stock
|
Find out how Qtrade can help you reach your financial goals.
Online brokerage services are offered through Qtrade Direct Investing, a division of Credential Qtrade Securities Inc. Qtrade, Qtrade Direct Investing and Write your own future are trade names and/or trademarks of Aviso Wealth.
