Free ETF purchases at Questrade now frees investors to purchase a few ETF shares at a time without that erosion. Questrade says the following regarding limits on fee-free purchase:
"No limits. None. Nada. Zilch. You can buy one ETF or all of them, one share or as many as you’d like. There are no restrictions, no minimum investment amount, no maximum number of ETFs you can buy."
|ETFonehome.. "Mom, I saved on trading fees!"|
This is an equation given under Portfolio Size for Choosing ETFs over Index Funds:
Size of portfolio for choosing ETFs = Trading commissions / (Higher MER – Lower MER)
An example Sleepy Mini Portfolio analysis showed that a $143,000 portfolio was needed to favour index ETFs over TD eSeries funds, considering $30 a trade. With Trading Commissions = $0 on the right of the equation, the size of the portfolio on the left drops to $0 too, meaning index ETFs can be cost-effectively selected over index mutual funds for any size.