The online brokerage will launch Questbank in 2026 after waiting six years for a Schedule 1 license.
Toronto-based online wealth management brokerage Questrade is now poised to launch its next Canadian bank.
According to Questrade CEO Edward Cholodenko, Questrade's trading volumes are up 350 percent compared to last year.
Questrade Financial Group has received approval from the Office of the Superintendent of Financial Institutions (OSFI) to begin banking operations, Questrade President and CEO Edward Cholodenko told Questbank in an emailed statement to BetaKit. The approval marks the end of a six-year journey to obtain a Schedule 1 banking license, which it has achieved. applied for 2019.
“This is a monumental step in our mission to help Canadians become more financially successful and secure,” Cholodenko said. “Following the successful path established over Questrade’s 26-year history, we are thrilled to expand our offering to bring much-needed competition to the Canadian banking landscape.”
Kholodenko said the company expects to increase its stake in Questbank and its planned banking products and services in the first half of 2026.
Founded in 1999, Questrade provides Canadians with a discount brokerage platform. Questrade users can open stock trading and investing accounts and manage portfolios on their own.
Kholodenko said the license follows recent rapid growth and strategic moves, including the introduction of zero commissions and fractional share trading at the online brokerage earlier this year. The company's trading volumes have grown 350 percent over last year, and its assets now total more than $85 billion, Kholodenko said.
CONNECTED: Online brokerage Questrade lays off an unknown number of employees
Questrade fired unknown number of about 2,000 employees last December. A Questrade spokesperson told BetaKit at the time that the cuts were “not reflective” of the company's core business and were intended to align with its strategic direction for 2025 and beyond.
Kholodenko told Globe and mail in January 2024, that after delays due to the pandemic, the company could receive license approval “in approximately 12 months.” However, there was no public movement about its use until March last year, when OSFI issued patent for letters enabling Questbank.
Now Questrade has received a license just a day before the release of the 2025 federal budget, in which Canadian FinTech leaders they said expect progress in open banking. This can provide a secure way for customers to share their financial information with third parties.
Following Questrade on its path to a Canadian banking license is Toronto-based fintech company Koho. The company was I'm working on a feat from 2022 and raised C$190 million in the equity and debt sectors last year to support its efforts.
Image courtesy of PiggyBank via Unsplash.
