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RBC Direct Investing review

RBC Direct Investing review: Are the high fees worth it?

Colin Graves

By Colin Graves

🗓️

Updated: September 26, 2024

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RBC Direct Investing (DI) is the self-directed investing division of The Royal Bank of Canada, Canada’s largest bank. 

Like all big bank brokers, it offers plenty, including multiple trading platforms, account types and features such as free practice accounts and Level 2 quotes (which provide enhanced bid-ask data, giving investors more in-depth insight before placing trades) on its regular trading platform. Unfortunately, with commission fees on stock and exchange-traded funds at almost $10 and account fees, unless you meet specific requirements, it won’t be worth the cost for many investors. 

Below, I cover the strengths and weaknesses of RBC Direct Investing and explain how it compares to other similar brokerages. 

Who RBC Direct Investing is for

RBC Direct Investing is a solid choice for existing RBC clients and buy-and-hold investors (passive investors who hold stocks for an extended period of time) with large accounts who don’t plan on trading frequently. 

Due to its high trading commissions and account fees, I don’t recommend the platform for investors who plan to trade often or those who cannot meet the requirements to waive account fees. Several brokerages don’t charge account fees; Wealthsimple, National Bank Direct Broker and TD Easy Trade offer commission-free trades, and Questrade offers free Exchange Traded Fund (ETF) purchases. We compare RBC DI to Wealthsimple and Questrade in more detail below. 

Even big bank brokers Scotia iTRADE and BMO InvestorLine provide a selection of commission-free ETFs. 

Related reads: Questrade vs. Wealthsimple, Best ETFs in Canada

Available accounts

You can open the following account types with RBC Direct Investing: 

Pros and cons

Pros

Pros

  • Stability of dealing with a big bank broker

  • Solid mobile trading app

  • Several account types are available

  • Practice accounts available

Cons

Cons

  • No current promotions

  • High trading fees

  • Account fees

  • Doesn’t support fractional shares

RBC Direct Investing fees and commissions

Trading fees

  • Stocks and ETFs: $9.95 per trade ($6.95 per trade with 150+ trades/quarter) 
  • Options: $9.95 + $1.25 per contract ($6.95 + $1.25 with 150+ trades/quarter) 
  • Buy mutual funds: 1% of the gross trade amount (max. $50 per trade) 
  • Sell mutual funds: No commission
  • Fixed income: $25 to $250 per transaction

RBC Direct Investing’s full commission schedule1 

Account fees

Account fee: $25 per quarter (clients with combined assets < $15,000 across RBC DI accounts 

RSP withdrawals (including LIRA unlocking): $50

Home Buyer’s Plan (HBP) and Life Long Learning Plan (LLP) withdrawals: $25 

TFSA/FHSA withdrawals: $0

RIF, LIF, RLIF, PRIF, LRIF withdrawals (lump sum): Two free per year, then $25 per withdrawal 

Other notable fees

Wire transfer out: $45 

Cheque requests: $10 

Statement replacement: $5 

Research account inquiries: $40/hour (min. $20) 

NSF or returned cheque: $45 

Transfer out: $150 

Estate account processing: $175 to $350 per account

RBC Direct Investing app | dashboards, ease-of-use and experience

RBC Direct Investing offers three trading platforms:

  • Direct Investing Online (its standard platform) 
  • Mobile trading 
  • Trading dashboard (for advanced traders)

Here’s a closer look at what each has to offer: 

Direct Investing online

The standard RBC Direct investing online trading platform has everything you expect from a major bank brokerage. 

Traders can view real-time streaming quotes for stocks and ETFs and access research tools, including Morningstar Analyst Pick Lists, RBC market commentary and more. 

One nice feature that not all brokers offer is free practice accounts. You’ll start with $100,000 of practice money per account, and you can open multiple accounts, including a cash, margin and RRSP account. You also get free access to Level 2 quotes for stocks and ETFs trading on the TSX and TSX-Venture exchanges, which not all brokers offer. 

I’m not a fan of the look and feel of the standard trading platform — while decent, it feels dated. I invest with RBC DI and TD Direct Investing. The latter has a more intuitive user interface and puts far more information in front of you, including various charting and analysis options, without having to click on other screens. 

Mobile trading

RBC’s mobile trading app is available for download on iOS and Android devices. It has a more modern appearance than the desktop trading platform and includes the following features: 

  • Build watchlists with up to 100 securities 
  • Pin a watchlist to your dashboard 
  • Obtain Level 2 quotes for TSX and TSX-V-listed securities
  • Place after-hours trades (conditions apply) 
  • Trade North American stocks and options 
  • Transfer funds between RBC banking and Direct Investing

Note: You cannot access real-time streaming quotes from the mobile app (only real-time quotes) or place trades while traveling outside Canada. 

Trading Dashboard

Trading Dashboard is RBC Direct Investing’s platform for active traders, and it’s a big step up from the standard trading platform. 

It’s much more visually appealing and unlocks a lot of additional functionality. Investors can customize their workspace, take advantage of FactSet fundamentals, estimates and reference data and access Heatmap and Top/Flob views. 

Research and education

As a prominent bank brokerage, it should be no surprise that RBC Direct Investing offers extensive research and educational tools. 

The free practice accounts are a great feature, and there is an online magazine, called Inspired Investor, which is packed with articles, news and other educational articles. In fact, you can access it right from the portfolio screen in the trading platform. 

Customer service and support

RBC Direct Investing offers customer support through multiple channels. 

Clients can speak with a representative over the telephone between 7 a.m. and 8 p.m. ET, Monday to Friday. 

You can also send a secure message once you’ve logged into your account. 

I’ve never had a negative experience dealing with RBC customer support, although my interactions have been limited. I couldn’t locate many recent customer reviews online, but generally, people offer the same feedback they give any big bank brokerage: the platform is solid, but the fees are too high. 

What I like and don’t like about RBC Direct Investing

My overall view of RBC Direct Investing is positive. 

It offers a solid trading platform with plenty of research and educational tools. 

I like the practice account and the access to Level 2 quotes on its standard platform. 

I don’t like the pricing, but it's no different from all big bank brokers. It would be nice if it provided some commission-free ETFs — BMO InvestorLine and Scotia iTRADE offer this. And its desktop trading platform could use an update to make it more modern and functional. 

How RBC Direct Investing compares

Wealthsimple vs. RBC Direct Investing

Wealthsimple is Canada’s largest robo-advisor, but it also offers self-directed investing. It has a few significant advantages over RBC Direct Investing: It offers free stock and ETF trades, doesn’t charge account fees and you can purchase fractional shares, something RBC Direct Investing doesn’t provide. 

However, Wealthsimple’s trading platforms are not as powerful as RBCs, and you have to pay a $10 monthly fee to trade in US currency. Another advantage of RBC Direct Investing is that it offers a free practice account where you can learn to trade or test various investing strategies, risk-free.

Wealthsimple is better suited to fee-conscious investors who are investing small amounts. RBC DI, on the other hand, will appeal to active traders who need access to multiple order types and better market research and technical analysis. 

Start investing with Wealthsimple (special offer on click)

Questrade vs. RBC Direct Investing

Questrade, Canada’s largest independent online brokerage, delivers low-cost trading on a reasonably robust platform. It offers free ETF purchases and lower-priced stock trades than RBC Direct Investing. Plus, it doesn’t charge any account fees. Both brokers have solid mobile trading apps. If you have a large investment account and use a buy-and-hold strategy with minimal trading, I recommend DI. Otherwise, Questrade strikes a better balance between features and pricing. 

Start investing with Questrade (special offer on click)

BMO Investorline vs. RBC Direct Investing

BMO Investorline is a big bank brokerage similar to RBC Direct Investing. It offers a bit more value for ETF investors by offering commission-free trading on BMO ETFs and a selection of popular ETFs from iShares and Vanguard. 

Neither platform supports fractional shares — both charge account fees unless you maintain a minimum account balance. 

If you’re a BMO banking customer, stick with BMO Investorline — the same goes for RBC customers. 

Start investing with BMO Investorline

RBC Direct Investing promotion

I could not locate any active promotions at the time of writing. RBC does state that it will cover up to $200 in fees if you transfer $15,000 or more from another brokerage.

RBC Direct Investing contact information

Existing RBC Online Banking and Direct Investing customers can contact Direct Investing support through a secure messaging system. You can also speak with a representative Monday to Friday between 7 a.m. and 8 p.m. ET at the following numbers: 

  • Toll-free: 1(800)-769-2560
  • Overseas: 1(416)-977-1255
  • Cantonese and Mandarin: 1(800)-667-8668 or (416)-313-8611

Clients can also get in-person support by visiting an Investor Centre in one of the following cities: 

  • Toronto
  • Vancouver
  • Calgary
  • Montreal

RBC Direct Investing eligibility criteria

To invest with RBC Direct Investing, you must be a Canadian resident, have a Social Insurance Number and be of the age of majority (18 or 19) in your province. 

How to open a RBC Direct Investing account in Canada

You can open an RBC Direct Investing account online or in person at an Investor Centre or RBC branch. For online account opening, you can select up to three account types under the same application, although FHSA accounts must be opened on a separate application. You can use Interac’s verification service to confirm your identity if you are new to RBC. 

Once you’ve completed the application online, RBC can approve your account within 24 hours. You can then deposit funds or initiate a transfer from another brokerage and begin trading. 

Related reading: Where should I open an FHSA account?

FAQs

  • How do you close an RBC Direct Investing account?

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    To close your account, contact RBC Direct Investing and speak with a representative. Note that before closing your account, you must sell any investments or transfer them to another brokerage.

  • How do you buy a GIC with RBC Direct Investing?

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    You can purchase guaranteed investment certificates (GICs) from all major Canadian financial institutions through RBC Direct Investing. Here are the steps to follow to purchase a GIC:

    1. From the Trade & Transfer tab at the top of your portfolio screen, select “Place an Order.”

    2. Use the Fixed Income Search to find the GIC you wish to buy. You can filter your search by payment frequency and term. You can also pull up a list of the best available GIC rates.

    3. Once you’ve found the GIC you wish to purchase, select “Buy.”

    4. Enter your order details and confirm your purchase.

    To receive same-day settlement, your trade must be placed online before 2:15 p.m. ET, and orders are only available on weekdays between 9 a.m. and 4:30 p.m.

  • What is RBC Direct Investing?

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    RBC Direct Investing is the online brokerage arm of The Royal Bank of Canada (RBC), Canada’s largest financial institution.

  • Can I buy crypto with RBC Direct Investing?

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    No, you cannot trade cryptocurrencies inside an RBC Direct Investing account. The easiest way to trade Bitcoin, Ethereum and other crypto coins is through a dedicated cryptocurrency exchange.

  • Can I buy Vanguard funds through RBC Direct Investing?

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    Yes. RBC Direct Investing provides access to thousands of investment funds, including mutual funds and ETFs, as well as a long list of Vanguard funds.

Colin Graves Freelance Writer

Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.

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