Along his path to wealth, Eliyahu Kholodenko learned that money isn’t the bottom line

Photos: Elchanan Kotler

IN

October of 2012, Questrade, a rapidly growing Canadian brokerage firm, faced a daunting challenge. The company relied heavily on a critical provider to manage its back office, but the problem was that the provider was going bankrupt. Questrade’s CEO made the bold decision to move the entire clearing operation in-house. They had only three months to complete the transition and convince their regulators that it could actually be done.

Critical to the process was securing an agreement with a bank that would issue daylight overdraft loans (short-term credits used to cover trade settlements during the day). They chose a large Canadian financial institution and a meeting was arranged. For Questrade, the stakes couldn’t be higher. If they failed to reach an agreement with the bank, their entire enterprise would be at risk.

On the designated day, the company’s top executives entered the bank’s elegant lobby and began shaking hands and making introductions. One of the bank officers, a woman, extended her hand to Questrade’s CEO, Mr. Eliyahu Kholodenko.

“I’m very pleased to meet you,” Eliyahu responded politely. “But for religious reasons, I cannot shake your hand.” The woman grimaced. Matters didn’t improve as the meeting got underway. Sure enough, the result was a hard rejection. No deal.

But the story wasn’t over yet. Concerted efforts led to a referral to a US institution, which offered Questrade terms far more favorable than the ones initially discussed with the Canadian one. Questrade emerged from the experience stronger and more independent.

Ukrainian-born Eliyahu Kholodenko had faced many challenges in his colorful international career before founding Questrade. He gained his knowledge of finance right out of university, acquiring advanced exposure in real time. He started his business journey trying to import computers from Hong Kong to Russia, went on to run a successful textile business in the former USSR, and started what is now the largest independent financial brokerage in Canada.

“Entrepreneurship is all about taking risks and challenging the status quo,” Eliyahu says. “In a way, the first one to embody the qualities of entrepreneurship was Avraham Avinu. He was the ultimate innovator and disruptor. The whole world stood on one side, while he stood on the other and that has made all the difference.” To succeed, Eliyahu says, you have to steadfastly believe in your mission, even if you’re surrounded by skeptics.

Today, the company manages over $60 billion in client assets and is recognized as one of Canada’s Best Managed Companies. And Eliyahu, the bearded Chabad chassid who refuses to compromise his values, has won the respect and allegiance of his team and of Canada’s financial community, for both his business acumen and his unbending religious principles.