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National Bank Direct Brokerage review

National Bank Direct Brokerage review: App, fees and customer service

Colin Graves

By Colin Graves

🗓️

Updated: October 21, 2024

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My take

National Bank Direct Brokerage (NBDB) was the first big bank broker in Canada to offer unlimited, commission-free online trades, its key selling feature. It also offers a wide range of account types. But, while its trading platforms have been recently updated and are clean and modern-looking, they lack the in-depth research and investing tools that active investors have come to expect from the best trading platforms. Only you can decide if the free trades will be enough to win you over. 

Who National Bank Direct Brokerage is for

National Bank Direct Brokerage is ideal for investors looking to trade individual stocks and who would be happy with a basic trading platform without many bells and whistles. If you want the ability to trade fractional shares or you can’t meet the requirements to waive the $100 account fee, Wealthsimple, one of the most popular brokerages in Canada, is a better option. Active traders or anyone looking for a more robust trading platform might want to consider Scotia iTrade, IBKR or TD Direct Investing. 

Available accounts

National Bank Direct Brokerage offers the following account types: 

You can also open estate and trust accounts with NBDB. Note that estate accounts must be opened at a National Bank branch. A telephone agent can open trust, corporate and sole proprietor accounts over the phone.  

Pros and cons

Pros

Pros

  • Only bank brokerage with no trading fees

  • Trading platforms are clean and modern

  • Many account types are available

  • Dedicated options tools

Cons

Cons

  • $100 account fee (waivable)

  • Trading platforms not as in-depth as some competitors

  • Can’t switch between trading and banking apps

  • Doesn’t support fractional shares

National Bank Direct Brokerage fees and commissions

Trading Fees

  • Stocks and ETFs: $0 commission 
  • Options: $0 commission + $1.25 per contract (minimum fee of $6.25)
  • Options (value less than $2,000): $0 commission + $1.25 per contract (maximum fee of $19.95)
  • Exchange-traded debentures: $0 commission
  • Investment funds: $0 commission

The above fees apply to trades placed online, and commission fees apply to orders placed through an agent over the phone. 

Account Fees

  • Annual account fee: $100 (waived if conditions are met) 

Other Notable Fees

  • Electronic funds transfer: $0
  • Lump sum withdrawal from RRSP, RRIF, LIF: $50 
  • NSF cheque: $45
  • Wire transfer: $75
  • Full or partial transfer (out): $150 per account
  • Tax slips by mail: $0
  • Portfolio statements by mail: $6 per quarter
  • Trade confirmations by mail: $2 per trade
  • Deposit of a physical or electronic stock certificate: $150 
  • Estate settlement: $200 per estate

National Bank Direct Brokerage app | Dashboards, ease-of-use and experience

National Bank Direct Brokerage offers both desktop and mobile trading. Both platforms cover the basics well, and the desktop platform has several analytical tools, including dedicated tools for options and exchange-traded funds (ETFs), to help you explore investment ideas. 

The mobile app has a rating of 4.7 out of 5 on the App Store and 4.5 stars on Google Play. Generally, mobile app users speak highly of the ease with which they can place trades. However, I noticed multiple complaints about the app needing certain features that are found in other apps. For example, there is no performance charting where you can view your portfolio or account growth. 

Unlike other big bank brokerages, the NBDB app doesn’t integrate with National Bank’s banking app, so you can’t switch between the two. 

Customer service and support

If you need help, you can find answers to common questions through NBDB’s online help centre on its website. You can also chat with its virtual assistant 24/7. Customer service is solid — you can speak to a live human representative five days a week. I scrolled through various Reddit threads and noticed no serious complaints about the service1.  

The biggest concern people share online is missing features that other brokerages offer. This includes the ability to make instant transfers and trade fractional shares. 

What I like and don’t like about National Bank Direct Brokerage

You have to like National Bank Direct Brokerage for its free trades. It’s the only prominent bank brokerage that doesn’t charge commissions for online stock, ETF or options trades. And its desktop and mobile trading platforms do the job for the average investor. Active traders looking for advanced market research and technical analysis tools will find NBDB lacking.

I can’t fault them for not offering fractional shares — TD Direct Investing is the only bank brokerage that offers it. Finally, the lack of integration between National Bank’s trading and banking app is a significant drawback for anyone with banking and investment accounts. Of course, that may change with a future update. 

How National Bank Direct Brokerage compares

Scotia iTRADE vs. National Bank Direct Brokerage

National Bank Direct Brokerage has a big edge over Scotia iTRADE in terms of fees. Like most big bank brokers, iTRADE charges $9.99 for every stock and ETF trade — National Bank trades are commission-free. That said, iTRADE gets marks for offering over 100 commission-free ETFs and lower active trader pricing than other brokerages. It also has a much more robust trading platform (both desktop and mobile) than National Bank and is better suited for experienced investors. 

With iTRADE, you also have the advantage of dealing with one of Canada’s largest financial institutions, which has a significant branch network that extends to every province. 

Questrade vs. National Bank Direct Brokerage

Questrade is Canada’s largest independent brokerage. It offers commission-free ETF purchases and stock trades starting at $4.95. You can also access managed investing through Questwealth, Questrade’s robo-advisor platform. Not only that, but Questrade doesn’t charge any account fees. If you prefer to trade individual stocks and you can meet the requirements to waive the $100 account fee, National Bank Direct Broker may be your best bet. If you prefer ETF investing, Questrade has more to offer. 

Wealthsimple vs. National Bank Direct Brokerage

Wealthsimple is Canada’s largest robo-advisor, and it also offers self-directed investing and commission-free stock and ETF trades. If online investing forums are any indication, Wealthsimple attracts the same type of customer as National Bank Direct Brokerage — novice investors prioritizing low-fee trades over other features, like capable trading platforms.

If you want to trade in US currency, you may want to avoid the annoying subscription fee Wealthsimple charges for a USD account — $10/month. That’s in addition to the 1.5% foreign exchange fee charged when you convert from Canadian dollars to fund your USD account. 

On the other hand, if you want access to fractional shares, Wealthsimple provides that option, while NBDB does not. 

National Bank Direct Brokerage promotion

I could not locate any new brokerage account promotions at the time of writing. 

National Bank Direct Brokerage contact information

Existing clients can contact National Bank Direct Brokerage through a contact form within the platform. In addition, anyone can call to speak with a representative during the following business hours: 

By telephone: Monday to Friday, from 8 a.m. to 6 p.m. ET

Service in English or French: 1-800-363-3511

Service in Mandarin or Cantonese: 1-888-991-0909

National Bank Direct Brokerage eligibility criteria

You can open a brokerage account with National Bank if you are a Canadian resident and over 18 years of age. 

How to open a National Bank Direct Brokerage account in Canada

You can open most account types online. To do so, you must have your banking information available so that you can link accounts. You will also need to be able to verify your identity remotely. National Bank does this by asking you to upload a picture of your government-issued photo ID along with a selfie. This allows them to verify you by comparing the two images. 

The following documents are considered acceptable identification: 

  • Canadian passport 
  • Drivers licence 
  • Permanent resident card 
  • Provincial or federal ID card (excluding Quebec) 
  • Quebec health insurance card (must be the new version) 

Here are the steps to follow: 

  1. 1.

    To get started, head to the National Bank Direct Brokerage website, and select “Open An Account.” 

  2. 2.

    You’ll be asked to provide your email and a secure password. 

  3. 3.

    Enter your personal information. 

  4. 4.

    With your profile created, you will be sent to a secure login screen to begin the application. 

  5. 5.

    Complete and submit your application. 

  6. 6.

    Once your application has been verified, you will be able to fund your new account. 

Note that you can open multiple accounts online from a single application. Some account account types, such as trust, corporate, or sole proprietorships, must be opened with an agent over the phone or in-branch. 

FAQs

  • Can you short sell stocks using National Bank Direct Brokerage?

    +

    Yes — to short-sell stocks with National Bank Direct Broker, you must open a margin account and receive approval for short selling. If approved. NBDB will add a short selling account to your margin account. Note that short selling is not available in registered accounts and TFSAs.

  • Does National Bank Direct Brokerage have an app?

    +

    Yes, National Bank Direct Brokerage has a mobile trading platform, which you can download for iOS and Android devices. On the app, you can trade stocks and ETFs, create watchlists, set alerts and transfer funds.

  • What is the minimum deposit for National Bank Direct Brokerage?

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    No minimum investment is required to open an account with National Bank Direct Brokerage.

  • Does National Bank Direct Brokerage offer after-hours trading?

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    It depends. You cannot place online trades during extended hours. However, depending on the investment type, some extended-hours trading is available through a telephone agent.

Colin Graves Freelance Writer

Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.

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