National Bank of Canada announced Friday the elimination of transaction fees for clients trading Canadian-listed exchange-traded funds.
According to the Bank, the new policy is meant to encourage investors to access ETFs regardless of portfolio size. Investors must trade a minimum of 100 shares to avoid charges.
"We're changing the online brokerage landscape," said Laurent Blanchard, President of National Bank Direct Brokerage, a subsidiary of National Bank, in a press release. "No transaction fees for all ETFs listed in Canada. This will make online investing more accessible for a greater number of investors. At the same time, it ensures that National Bank Direct Brokerage remains at the forefront of innovation."
Questrade and Virtual Brokers already offer commission-free purchases of ETFs, but they charge fees upon sales. Scotia iTrade and Qtrade Investor have a limited menu of ETFs that can be traded at no cost.
With a file from Rob Carrick