Inverted snowbird - Page 3
Page 3 of 3 FirstFirst 123
Results 21 to 27 of 27

Thread: Inverted snowbird

  1. #21
    Senior Member humble_pie's Avatar
    Join Date
    Jun 2009
    Posts
    11,333
    Quote Originally Posted by m3s View Post
    There are many other reasons to not to go public though ...

    Me I look for the privately owned local cafes with freshly baked goods. Sure it could be a front for anything as far as I know, but the coffee is so good

    mode it's true that, for you, the forum would fly in the best boulanger/patissier on the entire north-east US coast plus quebec, but the analogy is not the same. You're just dropping in for a coffee & a croissant.

    but for big institutions or even hi-value investors, doing business with questrade means locking themselves into a total meal plan, night & day, 365/7, whose ingredients they are unable to find out enough about. Not to speak of being unable to view the kitchen.

    .

    ''bonté gracieuse et toute cette sorte de chose" - Astérix chez les bretons]

  2. #22
    Senior Member
    Join Date
    Jun 2009
    Location
    Okanagan Valley
    Posts
    3,318
    Quote Originally Posted by humble_pie View Post
    questrade is privately owned by one edward kholodenko of toronto, therefore we cannot know the capitalization of this firm or any details whatsoever as to who its bankers are or what its solvency might be. As a private company, there is no public disclosure.

    my attention is also drawn by the fact that there are no cash accounts at questrade, other than registered accounts. All non-registered accounts are margin only. This means that the broker, once the margin of an account has been impaired for whatever reason by even one holding - selling an option will impair, for example - the broker can borrow stock from the entire account, although within IIROC limits of course..
    Re: Underlined part.... Didn't know that but now that I do, that is a huge red flag to me, especially given the lack of knowledge about capitalization/solvency. I wouldn't touch this outfit for all the tea in China.

  3. #23
    Senior Member
    Join Date
    Oct 2010
    Posts
    7,401
    ^^^^

    It was a surprise to me too, a couple of years ago when I was reading their web site to answer a question. Some don't seem bothered by it but it is a strange structure to me.


    Cheers

  4. Remove Advertisements
    CanadianMoneyForum.com
    Advertisements
     

  5. #24
    Senior Member humble_pie's Avatar
    Join Date
    Jun 2009
    Posts
    11,333
    Quote Originally Posted by AltaRed View Post
    Re: Underlined part.... Didn't know that but now that I do, that is a huge red flag to me, especially given the lack of knowledge about capitalization/solvency. I wouldn't touch this outfit for all the tea in China.

    forum has already had a discussion about the fact that all questrade accounts other than registered accounts, must be margin accounts. There are no cash accounts.

    in addition, there are any number of small privately-owned brokers, all with the same veils of privacy. Questrade is perhaps the most widely recognized. The public knows nothing about the capitalization of any of them.

    but in the interests of maintaining a fair middle-of-the-road view - the view that i usually favour - might i say that there's no reason to doubt or disbelieve questrade as a going concern. It does have to meet the minimum capitalization standards of all the exchanges with which it carries on business.

    where once upon a time, several years ago now, questrade had a dodgy reputation for customer service, my understanding is that this has vastly improved.

    a cmf friend - an economist himself - opened a USD RSP at questrade, for the simple reason that he was interested in finding out more about how they convert USD/CAD. He told me he believed registered accounts at questrade would be safer than margin accounts, in the unlikely event that something dire might happen.

    i also feel that questrade has rendered Canadian investors a number of real & unique services, for example by pioneering USD RRSPs, by pioneering no-commission ETF purchases & by always offering low commissions for small trades. These features make questrade enormously attractive to young or startup investors. Me i never hesitate to suggest questrade to some of our newcomers.

    so i wouldn't say "not for all the tea in china," but on the whole i can appreciate why us old fogies tend to hang with the big banks ...

    .
    ''bonté gracieuse et toute cette sorte de chose" - Astérix chez les bretons]

  6. #25
    Senior Member
    Join Date
    Jun 2009
    Location
    Okanagan Valley
    Posts
    3,318
    Well, perhaps I would for green tea...

    I understand the 'safety' of registered accounts at Questrade. I wouldn't have an issue with those but I hesitate to think my securities in a taxable account (if I was at Questrade) could be lent out without me being able to look under the hood. And while I understand the attraction of non-commission ETF purchases, etc. for newbies, I wouldn't have a 7 digit account with them. I get uncomfortable with grey and uncertainty...as I would with a non-professionally written and witnessed Will. When there is a fair chance that something can go wrong.....

  7. #26
    Senior Member m3s's Avatar
    Join Date
    Apr 2010
    Location
    Classified
    Posts
    2,985
    Doesn't CIPF coverage max out at 7 digits? If it works like CDIC then I wouldn't want 7 digits in any brokerage account. I've been with Questrade since their sketchy days and I'm comfortable to keep 6 digits with them having seen the drastic improvements and constant innovation. I always said I would consider moving to a big bank some day if they modernized

    Quote Originally Posted by humble_pie View Post
    a cmf friend - an economist himself - opened a USD RSP at questrade, for the simple reason that he was interested in finding out more about how they convert USD/CAD. He told me he believed registered accounts at questrade would be safer than margin accounts, in the unlikely event that something dire might happen.
    Another unique feature to Questrade is margin power, which links your registered accounts to margin accounts to increase its buying power. I never activated it as I've never needed that much margin and it just doesn't sound like a good idea. If it's true the Questrade margin accounts are cause for concern then that may be another reason not to activate this

    A year or so ago I did consolidate non-reg from IB to Questrade because I just find their updated website to be that much more enjoyable to use. IB wasn't any cheaper for me with monthly fees but they were very professional. I'm surprised no other broker use a physical key or dual logins yet (especially today when smartphones can act as a physical device)
    Amat Victoria Curam

  8. #27
    Senior Member humble_pie's Avatar
    Join Date
    Jun 2009
    Posts
    11,333
    Quote Originally Posted by m3s View Post
    Another unique feature to Questrade is margin power, which links your registered accounts to margin accounts to increase its buying power.


    not all registered accounts, i don't believe. Only TFSAs. Because TFSAs permit withdrawal any time, for any reason. Margining any other kind of registered account would defy minister of finance regulations, so i can't believe that questrade would do this.

    adding TFSAs to margin limits does lead straight into the darker issue, though. If questrade would indeed be running a wholesale margin lending business on the backside of the visible retail broker business, then adding to their inventory of lendable stock from clients' margined TFSAs would benefit their lending business, would it not?

    .

    Last edited by humble_pie; 2017-02-23 at 08:02 PM.
    ''bonté gracieuse et toute cette sorte de chose" - Astérix chez les bretons]

Page 3 of 3 FirstFirst 123

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •