Canaccord Genuity Direct (CGD)

Overview of CGD

Canaccord Genuity Direct (CGD), established in Canada in 2020, is a trading platform offering various assets, including equities, ETFs, options, futures, fixed income, and GICs. Regulated by the IIROC (Investment Industry Regulatory Organization of Canada), CGD emphasizes major Canadian exchanges and employs cutting-edge technology for algorithmic trading.

While its competitive edge in equities trading and a comprehensive range of assets provide advantages, users should be mindful of high trading fees, additional account activity charges, and a limited educational resource focus. Operating in Montreal, CGD's support is available on weekdays from 8:00 AM to 4:30 PM ET.

Is CGD legit or a scam？

CGD is regulated by the IIROC (Investment Industry Regulatory Organization of Canada), and its current status is listed as “Regulated” under the license type of “Market Making (MM).”

Being subject to regulation by a recognized authority like IIROC signifies adherence to industry standards and compliance with regulatory guidelines in the Canadian financial markets. The regulatory oversight by IIROC is crucial for ensuring fair and transparent practices within the platform, fostering trust among traders.

Pros and Cons

Pros:

1. Regulated by IIROC:

• CGD operates under the regulation of IIROC, ensuring adherence to industry standards and providing a regulated trading environment. This regulatory oversight fosters trust among traders.

2. A Wide Range of Trading Assets:

• CGD offers a wide array of trading assets, including equities, ETFs, options, futures, fixed income, and GICs. This diversity allows users to explore various investment opportunities within the platform.

3. Emphasis on Major Canadian Exchanges:

• The platform emphasizes major Canadian exchanges, ensuring thorough coverage for equities and options trading. This focus aims to provide users with extensive access to the Canadian securities market.

4. Competitive Edge in Equities Market:

• CGD holds a competitive position in the equities market, ranking among the top 5 most active brokers on Canadian exchanges. This indicates the platform's strength in equities trading.

5. Cutting-Edge Technology for Algorithm Trading:

• CGD's platform, CG Direct, incorporates cutting-edge technology tailored for algorithmic trading. This feature enhances the speed and efficiency of algorithmic trading activities for users.

Cons:

1. High Trading Fees:

• CGD imposes high trading fees, particularly for equities and ETFs, with a charge of $9.99 per trade. Users need to consider these fees as part of the overall cost structure.

2. Additional Account Activity Fees:

• Traders will face additional fees related to account activity, such as broker-assisted fees of $25.00 and charges for non-sufficient funds (NSF) cheques or returned items amounting to $50.00.

3. Various Miscellaneous Fees for Specific Transactions:

• CGD has miscellaneous fees for specific transactions, including charges for certificate withdrawal, urgent certificate withdrawal, and legend 33 removal, impacting the overall cost for users.

4. Limited Educational Resources:

• The platform primarily relies on a Frequently Asked Questions (FAQ) section for educational resources. Users seeking in-depth learning materials or tutorials will find the current resources limited.

5. Minimum Deposit Requirement for Margin Accounts:

• CGD has a minimum deposit requirement of $15,000 for margin accounts. This requirement limits accessibility for users who prefer margin trading but cannot meet the specified deposit threshold.

6. Limited Customer Support Hours:

• CGD's customer support operates during weekdays from 8:00 AM to 4:30 PM ET. The limited operational hours pose challenges for users in different time zones or those requiring assistance outside these hours.

Market Instruments

CGD offers a wide range of trading assets, presenting users with a variety of investment opportunities. The platform encompasses Equities, EFTs (Exchange-Traded Funds), Options, Futures, Fixed Income, and GICs (Guaranteed Investment Certificates).

For equities and options trading, CGD ensures thorough coverage of major Canadian exchanges and Alternative Trading Systems (ATSs), providing users access to a diverse array of stocks and options instruments.

The inclusion of foreign exchange widens the accessible markets, enabling users to engage in international currency trading. CGD accommodate individuals seeking exposure to various financial instruments, encompassing stocks, ETFs, options, and other investment vehicles.

The platform's emphasis on major Canadian exchanges reflects a focus on granting users access to a substantial portion of the Canadian securities market. This approach aligns with the platform's strategy of facilitating user access to various investment options within the Canadian financial landscape.

How to Open an Account？

1. Visit CGD's Official Website:

1. Start by navigating to Canaccord Genuity Direct's official website using a secure web browser.

2. Explore Account Types:

Review the various account types offered by CGD, considering factors such as the type of trading you intend to do and your experience level. Common account types include cash, margin, and registered accounts.

3. Initiate the Registration Process:

Click on the “Open an Account” button on the website to initiate the account creation process. This will likely involve providing personal details such as your name, contact information, and, if necessary, financial information based on regulatory requirements.

4. Submit Required Documentation:

Follow the instructions provided by CGD to submit any required documentation for account verification.

5. Complete Account Verification:

After submitting your documentation, follow the account verification process outlined by CGD.

6. Fund Your Account:

Once your account is verified, proceed to fund your CGD trading account with the required initial deposit. CGD typically supports various payment methods, including wire transfers and electronic payment systems. Once funds are deposited, you can start exploring the trading features and engaging in the financial markets based on your chosen account type.

Trading fees

CGD imposes a variety of fees across different aspects of trading and account activities.

For equities and ETFs, both buying and selling incur a fee of $9.99 per trade, with additional exchange fees passed through.

Options trading involves a charge of $1.00 per contract, with a minimum fee of $10.00.

These trading fees contribute to the overall cost structure for users engaged in stock and options transactions.

Beyond trading, account activity fees add to the financial considerations. Broker-assisted fees amount to $25.00, and non-sufficient funds (NSF) cheques or returned items result in a $50.00 charge. Safekeeping of restricted certificates incurs a $50.00 monthly fee, while certificate withdrawal, urgent certificate withdrawal, and certificate rush deposit involve fees of $70.00, $250.00, and $250.00, respectively. Other miscellaneous fees, such as Legend 33 removal, warrants/rights exercise, manual trade settlement, solicitation fee, tender to REORG, and DRIP, further contribute to the potential costs for users.

Account-type-specific fees include an annual registered account fee of $125.00, an annual TFSA (Tax-Free Savings Account) fee of $25.00, and fees for specific transactions like pre-authorized RIF withdrawal by cheque, full plan deregistration, partial plan deregistration, RSP/RIF payment, and duplicate receipt.

Trading Platform

Canaccord Genuity Direct (CG Direct), specifically the Sophisticated Trading (DMA) platform, offers quick and effective facilities for active traders and algorithmic trading within North American markets. The platform boasts cutting-edge technology tailored for algorithmic trading, positioning itself as a choice for those seeking optimized algorithmic trading experiences.

The platform claims a competitive edge, ranking among the top 5 most active brokers in equities on Canadian exchanges. CG Direct emphasizes low-latency access to all major Canadian exchanges, a feature intended to enhance the speed and efficiency of algorithmic trading activities.

Users of CG Direct can anticipate benefits such as support from an experienced team, access to customized reports, and state-of-the-art technology geared towards providing optimal speed for algorithmic trading.

These features collectively contribute to the platform's positioning within the market, particularly for users engaged in active trading and algorithmic strategies.

Deposit & Withdrawal

CGD offers several options to facilitate transactions. Users can opt for wire transfers in different currencies, with fees associated with each transfer type.

For wire transfers in Canadian Dollars (CAD), a fee of $40.00 is applicable, while transfers in US Dollars (USD) incur a $50.00 fee.

International wire transfers amount to $65.00, with the fee charged in the currency of the account.

Electronic Funds Transfer (EFT) is available with a $5.00 fee, and certified cheque requests come with a $25.00 charge.

Additionally, stop payments are priced at $25.00, cheque requests at $10.00, and transfers of account at $125.00.

For partial transfers, a fee of $75.00 is applicable, and the transfer of estate incurs a charge of $150.00 per hour.

In terms of minimum deposits, CGD sets a requirement of $5,000 for both cash and registered accounts. However, a higher minimum deposit of $15,000 is mandated for margin accounts. These minimum deposit thresholds play a role in determining the eligibility of users to access and utilize various account types on the platform.

Customer Support

CGD's customer support is centrally located in Montreal, Canada, specifically at 360 Saint-Jacques Street West, Suite G-102, H2Y 1P5. This strategic address serves as a focal point for clients seeking assistance.

Operating on weekdays, their service hours span from 8:00 AM to 4:30 PM ET, ensuring accessibility during regular business days.

For direct communication, clients have the option to reach out via phone using the provided contact numbers: (514) 985-8080 or the toll-free line at 1-866-608-0099.

These contact details offer clients a convenient means to connect with CGD's support team for inquiries, assistance, or clarification during the specified operational hours.

Educational Resources

CGD primarily offers educational resources in the form of a Frequently Asked Questions (FAQ) section. This section addresses common queries and provide users with essential information about the platform's features, functionalities, and trading processes. Users looking for in-depth learning materials, tutorials, or market insights will find the current educational resources limited.

Conclusion

In conclusion, Canaccord Genuity Direct (CGD) presents itself as a Canadian-based platform founded in 2020, regulated by the IIROC. The platform offers a wide range of trading assets, including equities, ETFs, options, futures, fixed income, and GICs, emphasizing major Canadian exchanges and providing access to international markets. CGD distinguishes itself with a competitive edge in the equities market and cutting-edge technology for algorithmic trading, making it appealing to active traders.

However, potential users should be aware of certain drawbacks. CGD imposes high trading fees for equities, ETFs, and options, which will impact users' overall costs. Additionally, the platform introduces various miscellaneous fees for specific transactions, contributing to the financial considerations for traders. The educational resources are limited primarily to a FAQ section, potentially leaving users seeking more in-depth learning materials.

FAQs

Q: How can I open an account with CGD？

A: Visit CGD's official website, explore account types, initiate the registration process, submit required documentation, complete account verification, and fund your account.

Q: What trading assets are available on CGD？

A: CGD offers equities, ETFs, options, futures, fixed income, and GICs, covering major Canadian exchanges and providing access to international markets.

Q: What are the trading fees on CGD？

A: Trading fees on CGD include $9.99 per trade for equities and ETFs, $1.00 per contract for options, and additional account activity fees for various transactions.

Q: What is the minimum deposit requirement for CGD？

A: The minimum deposit is $5,000 for cash and registered accounts, while margin accounts require a higher minimum deposit of $15,000.

Q: What trading platform does CGD use？

A: CGD utilizes Canaccord Genuity Direct (CG Direct), offering sophisticated trading facilities for active traders and algorithmic trading.

Q: How can I contact CGD's customer support？

A: Reach CGD's customer support in Montreal at 360 Saint-Jacques Street West, Suite G-102, H2Y 1P5, or by phone at (514) 985-8080 or 1-866-608-0099 during weekdays from 8:00 AM to 4:30 PM ET.