In 2019, JD Power gave Disnat (Desjardins online brokerage) the pole position in the customer satisfaction category. Hence it joined the ranks of the best Canadian stock brokers in 2021.
Disnat trading platform is ideal for both beginners and experienced traders. Further, if you’re between the age of 18-30, you will enjoy some incentives created to motivate young investors.
Like any other company in the world, Disnat has both advantages and disadvantages. Let’s see if this online brokerage is worth it? Will you get value for your time and money with the Disnat brokerage platform?
What is Disnat?
Desjardins online brokerage, commonly known as Disnat, is the online extension of Desjardins Securities. The company created this extension to give its clients a chance to trade equity through the web, Android, and iOS. Now it’s among the best discount brokers in Canada.
Disnat launched its online platform in 2003, although the company has been around since 1982. They have offices in Montreal and Quebec.
Desjardins has two trading platforms: Disnat Classic for beginners and everyday traders and Disnat Direct for active traders.
Disnat trading fees
General fees
- Unfortunately, Disnat does not offer free ETFs or a welcoming bonus. Some investors will look for these two factors first to determine whether they will open an account or not.
- You also stand to pay an inactivity fee per quarter if you do not:
1. Have a portfolio whose value is $15,000 or more
2. Execute six or more trades in the last 12 months
3. If you have an inactive registered account like RRSP, RESP, and RRIF.
- You will pay $200 if you open an account for trusts, guardianship, and public curator.
- Estate processing fee is $200
- Certificate deposit and registration are $10 and $50 per certificate, respectively.
- If you want safekeeping of your negotiable securities in your name, you will pay a fee of $10 per security per month.
- You pay $50 for opening an account for a single trade.
- The price for non-Desjardins GICs (Guaranteed Income Certificate) is $50
- Cheque withdrawal is $10, and an NSF cheque is $25.
- Mutual funds are free, but if you sell yours in less than 90 calendar days, you incur a fee of $35-$45.
- You have to invest a minimum of $10,000 for treasury bills and $5,000 face value for bonds.
- Account transfer is $150.
- The fee for non-consent to disclose your contact information to reporting issuers is $15 per quarter.
Fees for registered accounts
| Account | Fees |
| TFSA | No administration fees, but subject to inactivity fees |
| Annual administration fees – RRSP / LIRA | Market value of $15,000 or more: $0 LIRA with the same root account as an RRSP with a market value of $15,000 or more: $0 125 trades per year $0 Less than 125: $100 |
| Annual administration fees – RRIF / LIF | Market value of $25,000 or more: $0 125 trades per year $0 Less than 125: $100 |
| Annual administration fees – RESP | If the combined market value in all of the subscriber’s accounts is $15,000 or more in securities: $0. Otherwise: $50 |
| Partial withdrawal (except TFSA and RESP) | $25 |
| Total withdrawal (except TFSA and RESP) | $150 |
| HBP: withdrawal and subsequent closing of RRSP | $0 |
| Swap | $40 |
| Unlocking of LIRA/LIF | $150 |
Fees for buy/sell orders
| Stocks | ETFs | Options | Fixed Income | |
| Standard trading fees | $6.95 per trade | $6.95 per trade | Regular trading fee + $1.25 per contract (min. $8.75) | $50 min. per trade |
| Active trader pricing | $4.95 to $6.95/trade for 0-29 trades/month; $0.75/trade for 30+ trades/month | $4.95 to $6.95/trade for 0-29 trades/month; $0.75/trade for 30+ trades/month | Regular trading fee + $1.25 per contract (min. ($8.75) | $50 min. per trade |
| Telephone trades | Minimum $45 fee | Minimum $45 fee | Minimum $35 fee | $50 min. per trade |
Disnat investment types
- North America equity and index options
- Structured notes
- Canadian and U.S. equities
- Canadian mutual funds
- New issues (IPOs)
- Treasury bills (Canada, U.S., and Quebec)
- Bonds
Disnat account types
After opening a brokerage account with Disnat, you can open:
- Registered accounts like TFSA, RRSP, LIRA, RRIF, LIF, RESP
- Regular accounts.
1. Cash account. Deposit your cash and start trading immediately.
2. Margin account. Buy shares with limited funds but for the total amount.
3. Margin options. With this, you can buy call and put options, sell covered call options, sell uncovered calls and puts, covered and uncovered long and short straddles and spreads.
4. Short selling.
- Investment club’
- Association of people
- Accounts for minors
- Cooperative and corporation accounts.
- Sole proprietorship
- Proxy mandate
- Private foundation and NGO
- Trust accounts
- Estate and guardianship accounts.
Disnat for young investors
Investors between 18-30 years do not pay an inactivity fee. They also enjoy five free transactions when they open an account. Nevertheless, the account has to have at least $1000.
Is Disnat easy to use?
Yes, it is. The two trading platforms are user-friendly and can be accessed through the web and mobile phones. You can download the App from Google Playstore.
Is Disnat safe?
Yes, it is. The Canadian online brokerage is regulated by the Investment Industry Regulatory Organization of Canada (IIROC), and your assets will be insured by the Canadian Investor Protection Fund (CIPF).
Disnat pros and cons
Pros
- They have a special package for young investors.
- Zero commission on mutual funds
- An excellent selection of accounts
- Great customer service
- Competitive pricing for active traders
- Free training throughout the year
- Time-tested
Cons
- They don’t offer free ETFs
- They have a minimum deposit of $1000
- Hefty inactivity fee of $30 per quarter
- You are responsible for rebalancing your portfolio.
Disnat vs. others
Other Canadian online brokerages such as Wealthsimple and Questrade offer free ETFs, unlike Disnat. Also, Qtrade doesn’t have a minimum balance deposit while Disnat requires $1000. Overall, Disnat is more expensive than the rest.
Verdict
Disnat online brokerage has been around for a long time and is regulated by the relevant authorities. It is an excellent platform for DIY investors because of its self-rebalancing policy. The app is easy to download and to use, while millennials get to enjoy a few perks.
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