Traditional Mutual Funds
At Tradex, we don’t charge any account fees or transfer fees. There’s no cost to join and move your financial products to Tradex (we will even cover your transfer out fees). Tradex fund investors additionally participate in annual rebates. When you invest in mutual funds through Tradex, you pay no upfront sales commissions or deferred sales charges, and Tradex collects a trailing commission from the fund company that forms part of the management expense ratio (MER) of the fund.
Fee-based Account (F Series)
Alternatively, Tradex offers access to a fee-based account that provides access to F series funds from over 40 mutual fund companies. Generally, for F series funds, fund companies remove the trailer fee paid to dealers and reduce the management fee by the same amount. For equity funds the reduction is typically 1.0%. The fee charged by Tradex & B2B Bank (the service provider intermediary) will total maximum 0.7% + HST. This contrasts with other companies that typically collect 1.0-2.5%.
Annual Service fees comparison
|Industry Average*||Tradex||Robo Advisor**||Bank managed portfolio**|
|First $99,999||1.25% – 1.40%||0.7%||0.5%||0.7%|
|Next $150,000||1.15% – 1.35%||0.5%||0.4%||0.6%|
|Next $250,000||1.1% – 1.2%||0.5%||0.4%||0.5%|
|Next $500,000||0.9% – 1.1%||0.5%||0.4%||0.4%|
|Above 1MM||0.8% – 1%||0.5%||0.4%||0.4%|
|Type of Service||Multiple Investment Options with Advice||Multiple Investment Options with Advice||ETFs Only, Questionnaire-based Portfolio||ETFs Only, Questionnaire-based Portfolio|
*Source: De Champlain Groupe financier, November 2017 (Journal de l’assurance, May 2018)
** Robo advisor/Bank Managed Portfolio, Samples from public websites as at May 2018