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Questrade

Wealth Management | Toronto, ON | Founded: 1999 | www.questrade.com

 

PHONE: (888) 783-7866 | LINKEDIN PROFILEBLOOMBERG PROFILE 

Last updated January 21, 2019 | To download a PDF version, click here

 

Company Overview

Questrade is a Toronto based online brokerage firm founded by Edward Kholodenko that provides Canadians with a low cost solution for self-directed securities investing through a proprietary trading platform and a managed investing solution under the product name Questwealth Portfolios.

Senior Management

Edward Kholodenko: President and CEO (1999-Present). Previously: Founder, Textiles Distribution in Eastern Europe (1991-1999). Education: BA Geography, Western University.

Stephen Graham: COO (2016-Present). Previously: CEO, Graham Group (2015-2016); CMO Maple Leaf Foods (2009-2014); EVP, Corporate Marketing and Chief Convergence Officer, Rogers (2006-2009); EVP Retail & Small Business Banking & Corporate CMO, CIBC. Education BCom, Honors, Finance, Marketing, Queen’s University.

Dean Percy: CFO (2001-Present). Previously: Sr, Manager, Audit, Arthur Anderson; Audit Manager, KPMG. Education: BA Accounting, University of Waterloo.

Christine Day: CIO (2011-Present). Previously: Engineering Director, Questrade (2006-2011); Advisor/Board Member, OSC LaunchPad, TMX Group, CIO Canada Telus IT Advisory Board (2016-Present); CEO, Pivotalinks Interactive (2002-2005). Education: BA, University of Toronto (2000); Diploma, Computer Engineering, Sheridan College (2002).

History

In 1999, Edward founded Quest Capital Group as he was watching the shift from manual to online trading while running a textiles distribution company in Eastern Europe. The company began in a Toronto office, where customers came to use their terminal connected to highspeed internet to execute stock trades. As faster, more reliable internet became available, the company changed the name in 2001 to Questrade and launched their online platform where customers could execute trades anywhere they had internet connection.[1] After a decade of technology improvements focused on self-directed investing, Questrade launched a robo-advisory solution in 2014 to professionally manage customers’ investments under Portfolio IQ (which was rebranded with the best robo fee offering in 2018 as Questwealth Portfolios).[2] Questrade also launched mobile applications in 2017 upgrading them further with features like touch ID in 2018.[3]

Questrade has over $8B in assets under administration and opens 50,000 new accounts annually. It is Canada's fastest growing online brokerage, has been named the 7-time winner of Canada’s best managed company[4] and won Best Corporate Culture and Canada's Top 100 Small and Medium Businesses in 2018.

[1] https://web.archive.org/web/20020330180153/http://questrade.com:80
[2] https://www.newswire.ca/news-releases/questrade-launches-game-changing-wealth-management-service-available-for-all-canadians-516420071.html
[3] https://financefeeds.com/questrade-rolls-new-mobile-trading-application
[4] https://www.canadianbusiness.com/lists-and-rankings/best-managed-companies/platinum-winners

Key Corporate Developments

Press releases: https://www.questrade.com/about-us/press-and-media
July 14, 2008: Questrade Acquires eNorthern, solidifying its #1 rank as Canada’s fastest growing online brokerage
Nov 17, 2014: Questrade launches game-changing wealth management services, available for all Canadians
May 26, 2017: Questrade rolls out new mobile trading application

Business Highlights

Strategy

Questrade operates on a low cost, technology first business model. targeted towards serious, casual and young investors.[5] The launch of the robo-advisory solution Portfolio IQ in 2014 was one of the first robo offerings in Canada, offering a managed investment solution to complement their self-directed offering. Since then there have been many other entrants like BMO SmartFolio & Wealthsimple. Portfolio IQ was rebranded and relaunched in late 2018 as Questwealth Portfolios. 

[5] http://www.globeinvestor.com/servlet/ArticleNews/story/GAM/20180217/RBGICARRICKBROKERS

Products/Pricing

  1. Self-Directed Investing: Questrade offers 5 account types including Retirement, Margin, Entity, and Education, Foreign Exchange and Currencies. These accounts are designed for an individual to create and manage their own investment portfolio. Questrade focuses on a low cost, low commission model for their investment products that include stocks, ETFs, options, FX & CFDs, mutual funds, bonds, GICs, IPOs and precious metals. Trading fees can be as low as 1¢ per share, ETFs can be purchased for as low as $0 and Options can be traded for $9.95 +$1/contract.[6]
  2. Questwealth Portfolios™: Questwealth Portfolios™ is Questrade’s professionally managed investment solution. It uses ETFs and offers a very low cost fee structure that provides dramatic savings vs. investing in traditional mutual funds. The management fee is calculated based on the account balance, ranging from 0.25% for accounts with $1,000-$99,999 and 0.20% on accounts over $100,000.[6]

[6] https://www.questrade.com/pricing


Technology

Questrade process all new accounts and trades through their online portal. Account creation can be achieved completely in minutes. Questrade maintains three platforms: Web based Questrade Trading, Android and IOS app, a desktop platform Questrade IQ Edge, and Questrade FX Global. Questrade also offers research investment tools including market intelligence reports, earnings, filters, and screeners. All platforms and tools are developed in house[7], and Questrade has two patents around displaying and processing securities.[8]

[7] Interview with account creation customer support, Sam & Austin Baggio 9/27/18
[8] http://brevets-patents.ic.gc.ca/opic-cipo/cpd/eng/search/results.html?query=questrade&start=1&num=50&type=basic_search&newSearch=0


Distribution/Logistics

Questrade serves Canadian customers mainly online, but also has a large, award winning customer service department, which can support customers all across the country via telephone, email or chat. They also have licensed advisors available for in person meetings in their office at 5700 Yonge St North York, ON M2M 4G8.

Marketing

At time of writing, Questrade is running national primetime TV spots that challenge the status quo of investing through traditional banks and financial advisors. This marketing campaign instructs viewers to ask “tough questions" so you can "keep more of your money” and the consistent marketing message is to retire up to 30% wealthier with Questwealth Portfolios (formerly Portfolio IQ).[9]

[9] https://www.youtube.com/watch?v=_JlWmk1_1Sw&list=PL4E3463842B01E133&index=2

 

Competitors

Many online brokerages exist in Canada and the US. Differentiation is largely based on price, features and user experience. While Questrade’s claim is to be the fastest growing brokerage in Canada[10], the Globe and Mail ranks Qtrade as the best broker that gives the highest quality experience and tools, with a notable second tier including Questrade and Scotia iTrade.[11]

  1. Qtrade – (Vancouver, BC) QTrade, backed by Desjardin Group, is a partner to 150 financial institutions offering services in online brokerage, wealth management, asset management, institutional services, correspondent services and insurance.
  2. Scotia iTrade – (Toronto, ON) Scotia iTrade by Scotiabank, offers online self-directed investing as well as research tools and integration with existing Scotiabank bank accounts.

Since the relaunch of their Questwealth Portfolio offering, Questrade has earned more attention for offering some of the most competitive, low cost fees in Canada for diversified investing.[12] 

[10] https://www.newswire.ca/news-releases/nightingale-informatix-corp-retains-questrade-inc-as-market-maker-508822411.html
[11] https://www.theglobeandmail.com/globe-investor/online-brokerage-ranking-carrick/article37997437
[12] https://www.moneysense.ca/save/investing/questrade-robo-advisor-questwealth

 


Corporate Profile Created By: Austin Baggio, Ivey HBA & BESc Candidate 2019