Virtual Brokers

Virtual Brokers, a division of BBS Securities 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]

Virtual Brokers
Type Private
IndustryFinancial Services
FateMerged with WealthBar
SuccessorCI Direct Investing
Founded2009
HeadquartersToronto, Ontario, Canada
ServicesBrokerage firm
Stock broker
Electronic trading platform
ParentBBS Securities
Websitewww.virtualbrokers.com

Trade orders performed on Virtual Brokers' electronic trading platform are executed by parent company broker-dealer BBS Securities.[3]

Virtual Brokers' parent company BBS Securities Inc. is a subsidiary of investment management firm CI Financial.[1]

History

Founded in 2009, Virtual Brokers began as a division of BBS Securities Inc. Virtual Brokers began as an online trading service enabling trade execution of equities, options, warrants, bonds, debentures, ETFs and mutual funds.[4] Virtual Brokers was registered in all provinces and territories of Canada, and was a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF).[5]

In Jan 2012, Virtual Brokers 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 Virtual Brokers the leader in low-cost online brokerage.[5] In July, Virtual Brokers began offering trading services on the Canadian National Stock Exchange allowing clients to purchase stocks from the CNSE.[6] In November, Virtual Brokers acquired the Canadian arm of a Chicago based online brokerage firm optionsXpress, acquiring optionsXpress's Canadian client base and expanding Virtual Brokers' size.[7]

In November 2014, Virtual Brokers 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).[8]

In September 2017, investment management firm CI Financial acquired Virtual Brokers' parent company BBS Securities Inc.[1]

In December 2018, Virtual Brokers reduced their trade commissions for retail investors to compete with other online brokerage firms.[9] Virtual Brokers reduced their original $9.99 per trade transaction fee to a $0.01 per share fee that caps at $7.99 per trade transaction.[9] In addition, fees for purchases of North American ETFs and mutual funds were reduced to zero.[9]

In January 2019, Virtual Brokers integrated Wealthscope into their online brokerage platform, introducing portfolio analytics enabling clients to monitor and analyze portfolio performance and risk.[10]

In May 2020, parent company CI Financial merged subsidiaries brokerage firm Virtual Brokers and online investing firm WealthBar to create an integrated online investment firm CI Direct Investing.[11]

Disrupting the Industry

Historically, brokerage commission fees were costly which resulted in the lack of active retail traders.[12] Virtual Brokers 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.[12] 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.[12]

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 Virtual Brokers Won [2]
2011 The Globe and Mail 13th Annual Globe and Mail Online Brokers Survey Lowest Costs Brokerage Firm Virtual Brokers Won [2]
2011 The Globe and Mail 13th Annual Globe and Mail Online Brokers Survey Best Online Broker Virtual Brokers 2nd [13]
2011 The Globe and Mail 13th Annual Globe and Mail Online Brokers Survey Best Interface Virtual Brokers 2nd [13]
2012 The Globe and Mail 14th Annual Globe and Mail Online Brokers Survey Best Online Broker Virtual Brokers Won [14]
2012 The Globe and Mail 14th Annual Globe and Mail Online Brokers Survey Lowest Costs Brokerage Firm Virtual Brokers Won [14]
2012 The Globe and Mail 14th Annual Globe and Mail Online Brokers Survey Most Innovative Brokerage Firm Virtual Brokers Won [14]
2012 The Globe and Mail 14th Annual Globe and Mail Online Brokers Survey Best Trading Brokerage Firm Virtual Brokers Won [14]
2013 The Globe and Mail 15th Annual Globe and Mail Online Brokers Survey The Best Online Broker in Canada Virtual Brokers Won [15]
2013 The Globe and Mail 15th Annual Globe and Mail Online Brokers Survey The Lowest Cost Online Broker in Canada Virtual Brokers Won [15]
2013 The Globe and Mail 15th Annual Globe and Mail Online Brokers Survey Best Trade Experience and Product Range Virtual Brokers Won [15]
2013 The Globe and Mail 15th Annual Globe and Mail Online Brokers Survey The Most Innovative Online Broker in Canada Virtual Brokers Won [15]
2014 The Globe and Mail 16th Annual Globe and Mail Online Brokers Survey Best Online Broker Virtual Brokers 2nd [16]
2014 The Globe and Mail 16th Annual Globe and Mail Online Brokers Survey Lowest Costs Brokerage Firm Virtual Brokers Won [16]
2015 The Globe and Mail 17th Annual Globe and Mail Online Brokers Survey Best Online Broker Virtual Brokers Won [17]
2016 The Globe and Mail 18th Annual Globe and Mail Online Brokers Survey Best Online Broker Virtual Brokers Won [18]

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