CI Direct Trading (formerly Virtual Brokers)
TypePrivate
IndustryFinancial services
Founded2009
FateRebranded to CI
SuccessorCI Direct Trading
HeadquartersToronto, Ontario, Canada
ServicesBrokerage firm
Stock broker
Electronic trading platform
ParentCI Investment Services Inc.
Websitewww.cidirecttrading.com

CI Direct Trading, a division of CI Investment Services Inc., is an online brokerage firm that provides an electronic trading platform to trade financial assets.[1] The company is headquartered in Toronto, Canada and provides trade execution services for various financial instruments such as stocks, bonds, options, exchange-traded fund (ETF) and mutual funds.[2]

Trade orders performed on CI Direct Trading's electronic trading platform are executed by parent company broker-dealer CI Investment Services Inc.[3]

CI Direct Trading's parent company CI Investment Services Inc. is a subsidiary of investment management firm CI Financial.[1]

History

Founded in 2009, CI Direct Trading began as CI Direct Trading before being rebranded in October 2021. CI Direct Trading began as an online trading service enabling trade execution of equities, options, warrants, bonds, debentures, ETFs and mutual funds.[4] It is registered in all provinces and territories of Canada, and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF).[5]

In January 2012, CI Direct Trading introduced a new commission structure which enabled retail clients to trade for as low as $0.99 with a cap of $9.99 per trade.[5] This change made CI Direct Trading the leader in low-cost online brokerage.[5][6] In July, CI Direct Trading began offering trading services on the Canadian National Stock Exchange allowing clients to purchase stocks from the CNSE.[7][8] In November, CI Direct Trading acquired the Canadian arm of a Chicago based online brokerage firm optionsXpress, acquiring optionsXpress's Canadian client base and expanding CI Direct Trading' size.[9]

In November 2014, CI Direct Trading partnered with London based insurance firm Lloyd's of London offering additional insolvency insurance protection for investors on top of the Canadian Investor Protection Fund (CIPF).[10]

In September 2017, investment management firm CI Financial acquired CI Direct Trading' parent company CI Investment Services Inc.[1]

In December 2018, CI Direct Trading reduced their trade commissions for retail investors to compete with other online brokerage firms.[11] CI Direct Trading reduced their original $9.99 per trade transaction fee to a $0.01 per share fee that caps at $7.99 per trade transaction.[11] In addition, fees for purchases of North American ETFs and mutual funds were reduced to zero.[11]

In January 2019, CI Direct Trading integrated Wealthscope into their online brokerage platform, introducing portfolio analytics enabling clients to monitor and analyze portfolio performance and risk.[12]

In May 2020, parent company CI Financial merged subsidiaries brokerage firm CI Direct Trading and online investing firm WealthBar to create an integrated online investment firm CI Direct Investing.[13]

Disrupting the Industry

Historically, brokerage commission fees were costly which resulted in the lack of active retail traders.[14] CI Direct Trading became one of the first firms to lower the industry standard of trading commission fees, providing them with the reputation of being Canada's low-cost leader.[14] This exact act resulted as a catalyst for trading commission fees being lowered across the entire brokerage industry from major banks to small independent brokers.[14]

Awards

Year Association Award Category Nominee Result Reference
2011 The Globe and Mail 13th Annual Globe and Mail Online Brokers Survey Most Innovative Brokerage Firm CI Direct Trading Won [2]
2011 The Globe and Mail 13th Annual Globe and Mail Online Brokers Survey Lowest Costs Brokerage Firm CI Direct Trading Won [2]
2011 The Globe and Mail 13th Annual Globe and Mail Online Brokers Survey Best Online Broker CI Direct Trading 2nd [15]
2011 The Globe and Mail 13th Annual Globe and Mail Online Brokers Survey Best Interface CI Direct Trading 2nd [15]
2012 The Globe and Mail 14th Annual Globe and Mail Online Brokers Survey Best Online Broker CI Direct Trading Won [16]
2012 The Globe and Mail 14th Annual Globe and Mail Online Brokers Survey Lowest Costs Brokerage Firm CI Direct Trading Won [16]
2012 The Globe and Mail 14th Annual Globe and Mail Online Brokers Survey Most Innovative Brokerage Firm CI Direct Trading Won [16]
2012 The Globe and Mail 14th Annual Globe and Mail Online Brokers Survey Best Trading Brokerage Firm CI Direct Trading Won [16]
2013 The Globe and Mail 15th Annual Globe and Mail Online Brokers Survey The Best Online Broker in Canada CI Direct Trading Won [17]
2013 The Globe and Mail 15th Annual Globe and Mail Online Brokers Survey The Lowest Cost Online Broker in Canada CI Direct Trading Won [17]
2013 The Globe and Mail 15th Annual Globe and Mail Online Brokers Survey Best Trade Experience and Product Range CI Direct Trading Won [17]
2013 The Globe and Mail 15th Annual Globe and Mail Online Brokers Survey The Most Innovative Online Broker in Canada CI Direct Trading Won [17]
2014 The Globe and Mail 16th Annual Globe and Mail Online Brokers Survey Best Online Broker CI Direct Trading 2nd [18]
2014 The Globe and Mail 16th Annual Globe and Mail Online Brokers Survey Lowest Costs Brokerage Firm CI Direct Trading Won [18]
2015 The Globe and Mail 17th Annual Globe and Mail Online Brokers Survey Best Online Broker CI Direct Trading Won [19]
2016 The Globe and Mail 18th Annual Globe and Mail Online Brokers Survey Best Online Broker CI Direct Trading Won [20]

References

  1. 1 2 3 O'Hara, Clare (8 September 2017). "CI Financial buys Virtual Brokers parent BBS". The Globe and Mail. Retrieved 2020-12-26.
  2. 1 2 3 "Innovative Online Investment Broker", Canadian Business Journal, December 26, 2011
  3. ↑ "BBS Securities Rebrands as CI Investment Services". Newswire. 6 November 2020. Retrieved 2020-12-27.
  4. ↑ "VIRTUAL BROKERS". The Canadian Business Journal. Retrieved 2020-12-26.
  5. 1 2 3 "Virtual Brokers 99 cents commission structure a hit with Online Trading Community". Newswire. Retrieved 2020-12-27.
  6. ↑ "online trading". Retrieved 6 April 2023.
  7. ↑ "CNSX Markets Welcomes Virtual Brokers to the Canadian National Stock Exchange". Yahoo Finance. 23 July 2012. Retrieved 2020-12-27.
  8. ↑ "Crypto prices today". Retrieved 8 May 2023.
  9. ↑ "Virtual Brokers to Absorb optionsXpress Canada Accounts". Newswire. Retrieved 2020-12-26.
  10. ↑ "Virtual Brokers Announces Industry Leading Client Protection". Newswire. Retrieved 2020-12-27.
  11. 1 2 3 "Virtual Brokers announces significant commission reductions for retail investors". Newswire. Retrieved 2020-12-27.
  12. ↑ "Virtual Brokers enhances platform with powerful portfolio analytics for investors". Newswire. Retrieved 2020-12-27.
  13. ↑ "CI Financial extends ownership of WealthBar to 100%; Firm to be cornerstone of integrated CI Direct Investing platform". Newswire. Retrieved 2020-12-26.
  14. 1 2 3 "Virtual Brokers is Ranked the Best Priced Broker in the Industry". Newswire. Retrieved 2020-12-27.
  15. 1 2 "13th Annual Globe and Mail Online Brokers Survey", The Globe and Mail, November 15, 2011
  16. 1 2 3 4 "14th Annual Globe and Mail Online Brokers Survey". The Globe and Mail. November 20, 2012.
  17. 1 2 3 4 "15th Annual Globe and Mail Online Brokers Survey", The Globe and Mail, November 19, 2013
  18. 1 2 "16th Annual Globe and Mail Online Brokers Survey", The Globe and Mail, November 26, 2014
  19. ↑ "17th Annual Globe and Mail Online Brokers Survey", The Globe and Mail, December 4, 2015
  20. ↑ "18th Annual Globe and Mail Online Brokers Survey", The Globe and Mail, December 12, 2016
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