Canada’s online brokerage Questrade plans banking licence
Canada’s online brokerage Questrade, which allows people to invest with lower fees, has its eyes on a securing banking licence after it was announced through a notice in the Canada Gazette.
The Toronto-based firm, founded in 1999 and now holding more than CAD $9 billion in assets, allows users to buy and sell their own investments with stocks totaling one Canadian cent per share or more. Alternatively, users can get a pre-built portfolio with management fees starting at 0.25%.
Now the company plans to file an application to the federal government for a published written order – or letters patent – which would incorporate ‘Quest Bank’ into Questrade.
A trademark application was also filed back in October for Quest Bank according to a government registry.
Questrade’s banking application will now be reviewed by the Office of the Superintendent of Financial Institutions (OSFI).
“The publication of this notice should not be construed as evidence that letters patent will be issued to incorporate the bank,” the Canada Gazette notice read. “The granting of the letters patent will be dependent upon the normal Bank Act application review process and the discretion of the Minister of Finance.”
Canadian challengers already live include motusbank, Ontario credit union Meridian’s digital entity which opened for business this year, EQ Bank, the digital platform offered by Equitable Bank since 2016, and Tangerine, originally known as ING Direct and rebranded by acquirer Scotiabank in 2012.
The digital challenger bank Brightside created by the largest financial institution based in Alberta, ATB Financial, is also prepping for its launch. A full list of Canada’s challengers can be found here.