Non -commission negotiation increases the satisfaction of amateur investors

This annual report ranks investor satisfaction on a scale of 1,000 points. The National Bank tops the standings with a score of 662, followed by Questrade (656) and Desjardins (631).

The National Bank and Desjardins went through free negotiations last summer. The National Bank explained that its strategy was to involve a “relatively low” amount of its revenues in order to increase its customer base and gain market share.

While online stockholders have been hard pressed to adapt to the influx of new investors during the pandemic and the pressure exerted on their infrastructure, the report indicates that costs have been the most important factor in the evaluations.

“Negotiation costs are something very visible and relatively easy to understand and compare between platforms,” Michael Foy, chief executive and head of patrimonial intelligence at JD Power, said in a statement.

“As far as the sector is concerned, we expect the negotiating commissions – or the absence of commissions – to be a factor in the consideration and selection of the brand among Canadian investors. »

Customer satisfaction dropped in the five major banks, with the quality-price ratio showing the strongest decline, by 18 points. However, non -commissioned companies saw their value for costs increase by 69 points.

According to JD Power, commission -free transactions can also gain customers in an area where brand loyalty is lacking. Nearly three -quarters (72 %) of customers who have been with their company for less than three years say they are willing to change suppliers. More than a third (36 %) of those who stated they intended to change suppliers cited higher costs as the main reason.

“When Schwab announced the no -commission negotiation for American customers in October 2019, the rest of the industry quickly followed suit,” recalls Michael Foy.

“We don’t see it playing out too quickly in Canada, although it’s hard to imagine that the industry won’t succeed.” Once the negotiation costs will no longer be a means of distinguishing themselves from the competition, the issues will really be to provide a superior customer experience as an essential way to differentiate. »

The survey also revealed that more than a third (37 %) of self -employed millennial investors in Canada have invested in cryptocurrencies and that 11 % have invested in fractional stocks.

Mobile transactions are also on the rise, especially among young investors: transactions via a mobile application increased by 8 % a year on the other for millennial investors and those of the Z generation.

The JD Power study measures satisfaction according to seven factors:

  • the trust,
  • digital channels,
  • heritage management,
  • products and services,
  • the quality-price ratio,
  • the staff
  • and the resolution of problems.

The 2022 study is based on the responses of 2,099 investors who make all their investment decisions without the help of a financial advisor. The study was conducted from November 2021 to January 2022.

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