Our review of Scotia iTRADE 3/5

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Scotia iTRADE in brief

Our opinion of Scotia iTRADE

We particularly liked the broad range of investment products available on Scotia iTRADE, including stocks, ETFs, mutual funds, bonds, and IPOs. The platform also provides excellent research tools, such as screeners and third-party reports, which can be beneficial for informed decision-making. The integration with Scotiabank accounts ensures seamless transfers for existing customers, adding a layer of convenience.

We would have liked to see more competitive fees, as the $9.99 per trade commission is higher than many competing brokers. The absence of fractional share trading and copy trading features limits accessibility for beginners and those looking for modern investment tools. Additionally, the platform usability issues, particularly with the mobile app, were a drawback during testing.

Who is Scotia iTRADE designed for?

Scotia iTRADE is best suited to long-term, self-directed investors who prioritize a wide range of investment options and in-depth research tools over low fees and modern trading features.

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

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

Security and reliability 3.5/5

Scotia iTRADE is the online brokerage arm of Scotiabank, one of Canada’s largest and most reputable financial institutions. The brokerage has been in business for over 20 years, offering self-directed investing solutions to Canadian traders.

While the exact number of users is not publicly disclosed, its integration with Scotiabank suggests a substantial customer base consisting mainly of Scotiabank account holders and long-term investors. The platform has not received notable industry awards recently, which may reflect its struggle to compete with more innovative brokers in the market.

Scotia iTRADE is a reliable broker for Canadian traders due to its strong regulatory framework. It is regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and is a member of the Canadian Investor Protection Fund (CIPF), ensuring the safety of client funds up to $1 million. Additionally, it is registered with the Ontario Securities Commission (OSC), British Columbia Securities Commission (BCSC), and Alberta Securities Commission (ASC), which underscores its compliance with Canadian financial regulations.

To help manage risk, Scotia iTRADE offers access to research tools and educational resources, enabling users to make informed investment decisions. The availability of fixed-income products like bonds and GICs also provides lower-risk investment options for conservative traders.

However, the lack of advanced risk management features such as stop-loss orders or portfolio rebalancing tools is a drawback for more active traders.

Market and asset diversity 3/5

Scotia iTRADE positions itself as a comprehensive online brokerage, offering a wide range of assets tailored to Canadian investors. Its asset lineup includes stocks, ETFs, options, mutual funds, bonds, GICs, and IPOs, catering to both beginner and experienced traders.

While it provides ample diversity for domestic markets, it falls short in terms of the sheer volume of assets when compared to competitors that offer broader market exposure and access to international stocks. Below is a detailed comparison of Scotia iTRADE's asset offerings against the market average.

Our opinion on the diversity of Scotia iTRADE offerings

Scotia iTRADE provides a solid range of assets for Canadian investors but lags behind in asset quantity and global market access. This makes it less competitive for traders seeking broader market exposure or specialized investment opportunities.

Platforms and tools 2.5/5

Scotia iTRADE offers two primary platforms to its users: a web-based platform and a mobile app. While these platforms provide essential trading functionalities, they lack the modern, user-friendly design and advanced features offered by some competitors. Below is an overview of the platforms, analysis tools, and specific order types available.

Web-Based Platform

The web platform is Scotia iTRADE’s core offering, providing access to a wide range of assets, account management, and basic trading tools. It includes features such as real-time quotes, customizable watchlists, and basic charting. However, the platform's design feels outdated, and its navigation can be clunky, making it less appealing for active traders.

Mobile App

The Scotia iTRADE mobile app allows users to trade on the go. While it provides basic functionality for account monitoring and order placements, users have reported issues with app stability and slow performance. Advanced features, such as detailed charting or instant notifications, are limited, reducing the app’s usability for more active investors.

Analysis Tools and Decision Aids

Scotia iTRADE provides a range of research tools, including access to third-party reports from Morningstar and Thomson Reuters. These tools are useful for fundamental analysis and decision-making. The platform also features stock screeners, market updates, and basic performance tracking. However, technical analysis tools such as advanced charting or automated trading aids are lacking.

Specific Order Types

Scotia iTRADE supports basic order types, including market orders, limit orders, and stop orders. Advanced order types like trailing stops or conditional orders are not available, which limits flexibility for traders implementing complex strategies.

Fees, spreads and commissions 2.5/5

Scotia iTRADE positions itself as a full-service brokerage but struggles to compete with discount brokers in terms of fees. Its standard trading commissions are notably higher than market averages, making it less appealing for cost-conscious or frequent traders. Below is a detailed comparison of fees across asset classes and other charges:

Other Fees

• Deposits and withdrawals are free, providing cost-effective options for funding and accessing accounts.
• Overnight fees do not apply, as Scotia iTRADE does not offer leveraged products.
• An inactivity fee of $25 per quarter is charged for accounts with balances below $10,000, which can add up for less active investors.

How is Scotia iTRADE's price positioning?

Scotia iTRADE charges higher-than-average trading fees and inactivity fees, which can significantly impact smaller or less active investors. While deposits and withdrawals are free, the lack of competitive pricing and the absence of commission-free options for ETFs and stocks make it less attractive compared to discount brokers. This fee structure positions Scotia iTRADE as a less cost-effective choice in the Canadian market.

Customer reviews 1.7/5

Scotia iTRADE has a Trustpilot rating of 1.7/5 based on 19 reviews, with common complaints focusing on high fees, platform usability issues, and slow customer service.

Here are some recent testimonials from Canadian users:

• Jennifer M (January 4, 2025): "I’ve been using Scotia iTRADE for my RRSP investments, and while I appreciate the range of mutual funds they offer, the high trading fees are a dealbreaker. The $9.99 per trade adds up quickly, and there’s no commission-free ETF option like other brokers offer. The platform is also clunky, which makes managing my portfolio frustrating."
• Alex T (November 22, 2024): "As a long-time Scotiabank customer, I decided to try Scotia iTRADE for convenience. Unfortunately, the mobile app is slow and unreliable, which has caused me to miss some critical trades. On one occasion, I waited over 30 minutes to get through to customer service about a technical issue. For the fees they charge, I expected much better."
• Priya R (February 15, 2024): "I chose Scotia iTRADE for their bond offerings, which are decent, but the inactivity fee of $25 per quarter hit me unexpectedly when I didn’t trade for a while. The research tools are helpful, but the lack of fractional shares limits my ability to diversify my portfolio with smaller amounts. I’m considering other options."

How is Scotia iTRADE positioned in relation to its competitors?

Conclusion of our review on Scotia iTRADE

Scotia iTRADE offers a broad range of investment options, including stocks, ETFs, options, mutual funds, bonds, GICs, and IPOs, positioning itself as a full-service brokerage. Its integration with Scotiabank accounts adds a layer of convenience for existing customers, allowing seamless fund transfers. The platform also provides access to in-depth research tools and educational resources, which are valuable for long-term investors looking to make informed decisions.

However, Scotia iTRADE struggles to compete in terms of cost-effectiveness, with trading fees of $9.99 per trade being significantly higher than many competitors. Active traders can benefit from discounted fees, but the threshold for qualifying is relatively high.

The lack of modern features, such as demo accounts, fractional shares, or copy trading, makes it less appealing for new or experimental investors. Additionally, the usability issues reported with the mobile app and the platform's outdated design create a less-than-ideal experience, particularly for active or tech-savvy traders.

This broker is best suited for long-term, self-directed investors who prioritize asset diversity and research tools over low fees and advanced platform features. However, for those seeking more affordable fees or innovative tools, other brokers might be more suitable.

What types of accounts are available with Scotia iTRADE in Canada?

Scotia iTRADE provides several account types designed to meet the needs of different investors. These include self-directed accounts, tax-advantaged registered accounts, and corporate or trust accounts. However, the platform lacks both a demo account and an Islamic trading account, which could limit its appeal to certain investor groups.

Self-Directed Account

The Self-Directed Account is designed for investors who want complete control over their portfolios. It offers access to a wide range of investment products, including stocks, ETFs, options, mutual funds, bonds, GICs, and IPOs. The account requires no minimum deposit, making it accessible to all investors. Trading fees are set at $9.99 per trade, with discounts for active traders. While the account includes useful research tools, it lacks advanced features like fractional shares or modern charting capabilities.

Registered Accounts (TFSA, RRSP, RESP)

Scotia iTRADE supports registered accounts such as Tax-Free Savings Accounts (TFSA), Registered Retirement Savings Plans (RRSP), and Registered Education Savings Plans (RESP). These accounts allow for tax-sheltered growth, making them ideal for long-term savings goals like retirement or education funding. They offer access to the same range of assets as self-directed accounts and maintain the same fee structure. However, the absence of automated features like portfolio rebalancing could make managing these accounts more challenging for less experienced investors.

Corporate or Trust Accounts

Corporate and trust accounts are available for businesses and fiduciary entities looking to manage investments. These accounts offer the same range of assets as individual accounts and are tailored to meet the needs of organizations. They provide access to Scotia iTRADE’s research tools and trading platforms, with fees remaining consistent at $9.99 per trade. However, like other accounts, they lack advanced tools and customization options.

Islamic Account

Scotia iTRADE does not provide an Islamic account or Sharia-compliant trading options. Investors seeking to adhere to Islamic finance principles may need to consider brokers that specialize in halal trading or halal investment portfolios or Islamic trading accounts.

Watch out!

Scotia iTRADE does not offer a demo account, which is a significant drawback for beginners who want to practice trading or explore the platform’s features without risking real money.

Deposits and withdrawals at Scotia iTRADE: How does it work?

Scotia iTRADE offers basic deposit and withdrawal options, supporting bank and wire transfers in CAD and USD. Bank transfers are free and take 1-3 business days, while wire transfers incur fees of $10-$50, depending on the bank, and take 2-5 business days.

Compared to competitors, Scotia iTRADE lacks modern payment methods such as e-wallets (e.g., PayPal) or credit card funding, which are faster and more flexible.

The absence of instant deposits or withdrawals makes it less appealing for traders requiring quick access to funds. While the cost structure is reasonable for standard methods, other brokers offering more diverse and faster payment options hold a competitive edge.

Does Scotia iTRADE offer copy trading?

Scotia iTRADE does not offer copy trading or social trading features. The platform is designed primarily for self-directed investors who prefer to make independent trading decisions rather than relying on collaborative or automated strategies.

Unlike brokers that specialize in copy trading, Scotia iTRADE does not provide any software or platforms for replicating trades of other investors. There is no functionality to follow top-performing traders, interact with a trading community, or automate portfolio mirroring. Additionally, there are no additional fees associated with such services since they are not available.

This absence of copy trading features makes Scotia iTRADE less appealing to beginners or investors who might benefit from observing or mimicking experienced traders. For those seeking these capabilities, alternative brokers offering robust copy or social trading platforms would be more suitable.

What is the tax treatment of income generated by Scotia iTRADE?

Income generated through trading on Scotia iTRADE is subject to Canadian tax laws under the Income Tax Act. The tax treatment depends on the nature of your trading activity, the account type used, and the classification of income. Below is an overview of how trading income is taxed and declared.

Applicable Taxation

• Trading income is classified as either capital gains or business income: Capital Gains: Only 50% of the profit from capital gains is taxable at your marginal tax rate.Business Income: For frequent or professional traders, 100% of trading profits are taxed at the marginal rate.
• Capital Gains: Only 50% of the profit from capital gains is taxable at your marginal tax rate.
• Business Income: For frequent or professional traders, 100% of trading profits are taxed at the marginal rate.
• Dividends from Canadian companies qualify for a dividend tax credit, reducing the effective tax burden.
• Interest income from investments is taxed at your full marginal tax rate.
• Investments within registered accounts like TFSAs and RRSPs are tax-sheltered. TFSA gains are tax-free, while RRSP withdrawals are fully taxable as income.

How to Declare Trading Income or Revenues?

• Report your trading income in your T1 General Income Tax and Benefit Return.
• Use Schedule 3 to declare capital gains or losses, specifying the proceeds, adjusted cost base (ACB), and the resulting gain or loss.
• Business income should be reported on the T2125 Statement of Business or Professional Activities form.
• Include dividend and interest income in the designated sections of your tax return.
• Cryptocurrency transactions, if applicable, must include detailed records of trades and fair market values.

Points to remember while filing your taxes

• Registered Accounts: Gains in TFSAs are tax-free, while RRSP withdrawals are fully taxable.
• Capital Losses: Losses can offset capital gains in the same year or be carried forward to reduce future taxable gains.
• Accurate Record Keeping: Maintain detailed records of all transactions, including dates, costs, proceeds, and adjustments.
• Frequent Trading: If the CRA classifies your trading as a business, all profits will be fully taxable as income.
• Seek Professional Advice: Consulting a tax expert can ensure compliance with Canadian Revenue Agency (CRA) rules, particularly for complex portfolios or frequent traders.

Contact: how do I contact Scotia iTRADE customer service?

FAQ

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.