Our review of National Bank Direct Brokerage 2.5/5

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National Bank Direct Brokerage (NBDB) in brief

Our opinion of National Bank Direct Brokerage

We particularly liked the commission-free trading for Canadian stocks and ETFs, which makes it an attractive option for investors focused on domestic markets. The platform’s integration with National Bank accounts provides convenience for existing customers, allowing seamless transfers and account management. Additionally, the availability of registered accounts such as TFSAs and RRSPs adds flexibility for tax-advantaged investing.

We would have liked to see a more advanced trading platform with robust tools for analysis and decision-making. The absence of a demo account is a missed opportunity for beginner investors to familiarize themselves with the platform. Additionally, the high fees for non-Canadian trades and the lack of innovative features like copy trading or leveraged trading significantly reduce its competitiveness. The outdated interface and limited functionality are disappointing for active and tech-savvy traders.

Who is NBDB designed for?

National Bank Direct Brokerage is best suited for conservative, long-term investors who prioritize domestic trading and already bank with National Bank. However, the platform struggles to compete with more advanced brokers in terms of fees, tools, and global market access.

Before you zero in on NBDB, explore other options in the market.

Let's find out more about our test results on NBDB.

Security and reliability 3/5

National Bank Direct Brokerage (NBDB) is a subsidiary of National Bank of Canada, one of the country’s major financial institutions. It has been in operation since 1987, providing self-directed trading services for Canadian investors. While the broker benefits from the trust and reputation of its parent bank, it has faced criticism for its lack of modern features and competitive tools. NBDB primarily caters to long-term investors and those focused on domestic markets.

The exact number of active users has not been disclosed, but as a division of National Bank, NBDB serves a significant number of clients nationwide. Unlike some of its competitors, it has not received major awards for innovation or customer satisfaction in recent years, which reflects its focus on traditional brokerage services rather than cutting-edge features.

National Bank Direct Brokerage is regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and is a member of the Canadian Investor Protection Fund (CIPF). These affiliations ensure that customer accounts are protected up to specified limits and that the broker adheres to Canadian financial regulations.

The platform is also registered with the Ontario Securities Commission (OSC), British Columbia Securities Commission (BCSC), and Alberta Securities Commission (ASC), providing additional regulatory oversight.

The broker offers basic tools for risk management, including standard order types such as stop-loss orders. However, it does not provide more advanced risk control features such as trailing stops, guaranteed stop-loss orders, or margin trading. The focus on cash trading limits the exposure to leveraged risks, which may appeal to conservative investors but reduces flexibility for more active traders.

Market and asset diversity 2.5/5

National Bank Direct Brokerage positions itself as a broker focused on traditional investing, offering a selection of stocks, ETFs, mutual funds, bonds, and options. While it provides decent coverage of Canadian markets, the overall diversity of assets falls short compared to competitors. The lack of CFDs, cryptocurrencies, and other global instruments limits its appeal for investors seeking broader diversification.

Below is a comparison of the broker’s available assets against the market average:

Our opinion on NBDB's offerings

National Bank Direct Brokerage provides adequate asset coverage for conservative investors focusing on Canadian and U.S. markets. However, its limited variety and underperformance in several asset classes make it less competitive for globally focused or diversified investors.

Platforms and tools 2.5/5

National Bank Direct Brokerage provides a proprietary platform designed for self-directed investors. While functional, the platform lacks many advanced features that active traders or those accustomed to modern trading tools might expect.

Available Platforms

• Web Platform: The primary trading interface is browser-based, allowing access to account management, order placement, and portfolio monitoring. While straightforward, the platform feels outdated and lacks customization options.
• Mobile App: The mobile app offers basic functionality for trading and account monitoring. It is useful for on-the-go access but does not include advanced charting or analysis tools, limiting its appeal for frequent traders.

Analysis Tools and Decision Aids

• Market Research: The platform provides basic market research, including company data, news feeds, and fundamental analysis. However, it does not integrate AI-driven insights or advanced screeners.
• Charting Tools: Charting capabilities are minimal, with limited technical indicators and no advanced features like strategy testing or multi-chart views.
• Screeners: Basic stock and ETF screeners are available but lack detailed filters, such as ESG criteria or advanced financial metrics.

Order Types

The platform supports standard order types, such as market, limit, and stop-loss orders. However, advanced order types like trailing stops or conditional orders are not available, reducing flexibility for active traders.

Fees, spreads and commissions 3/5

National Bank Direct Brokerage offers competitive pricing for Canadian stocks and ETFs by eliminating commissions. However, the fees for options trading and the inactivity fee for low-balance accounts make it less appealing for certain traders.

Other Fees

• Deposit Fees: Free.
• Withdrawal Fees: Free.
• Overnight Fees: Not applicable, as margin trading is not supported.
• Inactivity Fees: $25 per quarter if the account balance is below $20,000.

How is NBDB's price positioning?

National Bank Direct Brokerage offers attractive pricing for Canadian securities, with no commissions for stocks and ETFs. However, its fees for options trading and inactivity charges make it less appealing for active traders or those with smaller account balances. While suitable for long-term investors focused on Canadian markets, it lags behind brokers offering commission-free trading across a broader range of assets and lower fees for global markets.

Customer reviews 1.4/5

National Bank Direct Brokerage has a Trustpilot rating of 1.4/5, based on 96 reviews, with frequent customer complaints about its outdated platform, high fees for non-Canadian trades, and limited customer support.

Here are some recent testimonials from Canadian users:

• David M (January 15, 2024): "I tried opening an account with National Bank Direct Brokerage, but the process was frustratingly slow. It took nearly two weeks to verify my documents, and customer support was unhelpful when I called to check on the progress. The platform is okay for basic trades, but I was expecting more modern tools for analysis. I ended up closing my account after just three months."
• Sarah L (April 23, 2024): "I switched to National Bank Direct Brokerage for their no-commission trades on Canadian stocks and ETFs. While that part is great, the platform is really outdated. The charting tools are basic, and there’s no demo account to practice. Also, I was disappointed by the inactivity fee since my account balance fell below $20,000 during a quiet period."
• Jonathan K (February 2, 2025): "The lack of a mobile-friendly and intuitive app is a major drawback for me. I’ve had multiple login issues, and the app doesn’t have many features for active traders. Customer support takes ages to respond to queries, and the high fees for non-Canadian trades are discouraging. I wouldn’t recommend this platform for anyone trading globally."

How is National Bank Direct Brokerage positioned in relation to its competitors?

Conclusion of our review on NBDB

National Bank Direct Brokerage provides competitive options for Canadian investors, particularly with commission-free trading for local stocks and ETFs. However, compared to competitors, it falls short in terms of asset diversity, advanced platforms, and features like demo accounts or copy trading.

While the absence of a minimum deposit adds accessibility, its outdated platform and high fees for non-Canadian trades make it less attractive for active or globally focused traders.

Before opening an account with NBDB, compare the best brokers in Canada:

What types of accounts are available with National Bank Direct Brokerage in Canada?

National Bank Direct Brokerage provides a limited selection of account types focused on Canadian investors. These accounts are tailored to traditional self-directed investing but lack innovative features such as demo accounts or specialized Islamic accounts. Below is a summary of the account types and their characteristics:

Individual Account

The Individual Account is designed for general investing and trading. It allows access to a variety of asset classes, including Canadian stocks, ETFs, mutual funds, bonds, and options. With no minimum deposit, it caters to investors of all levels. However, trading fees for non-Canadian securities and a $25 inactivity fee for balances below $20,000 reduce its appeal.

Registered Accounts (RRSP/TFSA)

The Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) offer tax-advantaged investment opportunities. The RRSP allows for tax deferrals, while the TFSA provides tax-free growth. These accounts support the same asset classes as individual accounts and follow the same fee structure. They are ideal for Canadian investors focused on long-term savings and retirement planning.

Corporate Account

The Corporate Account is designed for businesses or corporate investors. It provides access to similar assets and fee structures as individual accounts but lacks features for advanced portfolio management or integrated corporate tools. It’s primarily aimed at small business owners or companies investing surplus cash.

No demo account or halal trading

National Bank Direct Brokerage does not provide an Islamic (swap-free) account, making it unsuitable for traders requiring Sharia-compliant investment options. Also, it does not offer a demo account, a significant drawback for beginners looking to practice trading strategies or explore the platform’s features without financial risk.

Deposits and withdrawals at National Bank Direct Brokerage: How does it work?

National Bank Direct Brokerage offers basic deposit and withdrawal methods, focusing on bank and wire transfers in CAD and USD. While bank transfers are free and processed relatively quickly, wire transfers incur fees up to $30, which can be a disadvantage compared to brokers offering fee-free international transactions.

The lack of support for digital wallets, credit cards, or alternative payment methods limits convenience for users seeking faster or more flexible options. Overall, its offering is functional but less competitive in terms of speed, cost, and variety compared to modern brokers with broader payment options.

Does National Bank Direct Brokerage offer copy trading?

National Bank Direct Brokerage does not offer copy trading or social trading features. The platform is designed for self-directed investors who prefer to make independent decisions rather than relying on the strategies or performance of other traders.

Key Points:

• No Copy Trading Platforms: Unlike brokers that integrate with tools such as MetaTrader’s Signals or proprietary social trading platforms, National Bank Direct Brokerage does not provide any software for copying other traders.
• No Social Trading Community: The broker lacks forums or interactive features where users can share strategies or discuss market trends.
• Additional Fees: Since copy trading is not supported, there are no associated fees or subscription costs for this feature.
• Focus on Traditional Investing: The absence of copy or social trading reflects the broker’s focus on long-term, independent investing rather than community-driven or passive strategies.

What is the tax treatment of income generated by National Bank Direct Brokerage?

Income generated through trading on National Bank Direct Brokerage is subject to Canadian tax laws under the Income Tax Act. The tax treatment depends on the nature of the income, which varies based on the type and frequency of trading activity. Below is an explanation of the applicable tax regime and how to declare trading income.

Applicable Taxation

• Capital Gains: For most individual investors, profits from the sale of securities such as stocks and ETFs are classified as capital gains. Only 50% of the net capital gains are taxable, and this amount is added to the individual’s annual taxable income.
• Dividend Income: Dividends from Canadian companies benefit from the Dividend Tax Credit, which reduces the overall tax liability. Dividends from foreign companies, however, are fully taxable as ordinary income.
• Interest Income: Income from interest, such as from bonds or cash holdings, is fully taxable at the individual’s marginal tax rate.
• Business Income: If trading activity is frequent and conducted as a business, income may be classified as business income. In this case, 100% of the income is taxable, but related expenses such as software or data subscriptions can be deducted.

How to declare trading income or revenues

• Capital Gains and Losses: Report capital gains and losses on Schedule 3 of your T1 General Income Tax and Benefit Return. Include details like the adjusted cost base (ACB), proceeds of sale, and net gain or loss.
• Dividends and Interest: Declare these on the relevant lines of your T1 return. Canadian dividends require gross-up calculations and application of the Dividend Tax Credit.
• Business Income: If trading is classified as a business, complete Form T2125 (Statement of Business or Professional Activities) to report income and claim deductions.
• Foreign Income: If foreign assets or income exceed $100,000 CAD, file the T1135 Foreign Income Verification Statement and report any taxes paid abroad. Claim a foreign tax credit where applicable.

Points to remember while filing your taxes

• Registered Accounts: Income generated within registered accounts such as TFSAs and RRSPs is tax-advantaged. Gains and income are either tax-free (TFSA) or tax-deferred (RRSP), provided the account rules are followed.
• Loss Carryovers: Capital losses can be used to offset capital gains in the same year or carried forward indefinitely to reduce future taxable gains.
• Keep Accurate Records: Maintain detailed records of all trades, including purchase and sale dates, amounts, and any associated fees.
• Classification Matters: The CRA evaluates whether trading constitutes a business based on frequency, intention, and scale. Consult a tax professional if you are unsure about your classification.

Contact: How do I contact NBDB customer service?

FAQs

Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.