# Brokerage strategy?



## indexxx (Oct 31, 2011)

I use Questrade for my stock purchases, and my bank is RBC. I've also got a monthly payment to a high-MER mutual fund (with yet another institution...) that I wish to get rid of and would like to start getting access to TD eSeries Index funds instead; can I simply link my RBC savings account to TDW for automatic monthly contributions, or would it be easier to just open a savings account with TD?

My idea is to keep using QT for the cheap transaction fees, stay with RBC as I've been there for years, but have free access to TD eSeries funds for monthly contribution/RRSP concerns.


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## leoc2 (Dec 28, 2010)

Could you not use bill payment option to transfer funds to tdw account? Look at your list of available payees in RBC. My bmo account lists RBC Direct and tdw as a payees.


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## Barwelle (Feb 23, 2011)

I opened a TD mutual fund account for my E-series, not a TDW account. My bank didn't have TD as a payee (they might have TDW, can't remember) but when I signed up I gave them my account info, and now I can transfer funds when I log in to TD Easyweb. To make it easier, I have PPP (preauthorized purchase plan) set up to do it automatically.

The only thing you have to watch for if you do this is that you have enough money in the account you are withdrawing from, if you have multiple accounts at your main bank.


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## Jungle (Feb 17, 2010)

You'll need a chequings account for TD to pull money from. TD will not be able to pull money from your savings account. Also note, the "contribution plan" set up procedure is different between TD Canada Trust and TD Waterhouse. 

The TD Canada Trust is more friendly IMO. You can make changes online, once your chequing account is attached. 

WIth TDW, there is two parts, a systematic investment plan and monthly contribution plan, both forms need to be faxed in and changes can not be made online, or on the phone. (from what they told me) 

Also TDW does not have bi-weekly contributions. Just weekly or monthly.. I find that very odd and might email to complain. I've been thinking about moving our TFSA from TDW to TD, simply because I need bi-weekly contributions! E-series require a minimum $25 contribution purchase.


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## m3s (Apr 3, 2010)

Jungle said:


> WIth TDW, there is two parts, a systematic investment plan and monthly contribution plan, both forms need to be faxed in and changes can not be made online, or on the phone. (from what they told me)
> 
> Also TDW does not have bi-weekly contributions. Just weekly or monthly.. I find that very odd and might email to complain. I've been thinking about moving our TFSA from TDW to TD, simply because I need bi-weekly contributions! E-series require a minimum $25 contribution purchase.


This is what I mean about getting with the times. It always feels like I have to run or drive paperwork all over the place with TD for things I can do in a few clicks with online institutions. Will it take a decade to get mobile trading as well?


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## indexxx (Oct 31, 2011)

Barwelle said:


> I opened a TD mutual fund account for my E-series, not a TDW account. My bank didn't have TD as a payee (they might have TDW, can't remember) but when I signed up I gave them my account info, and now I can transfer funds when I log in to TD Easyweb. To make it easier, I have PPP (preauthorized purchase plan) set up to do it automatically.



So it's possible to open a TD mutual fund account without being a TD banking client? 
Couch Potato's site says: "The cheapest index funds in Canada are TD’s e-Series funds, but these are only available to investors who open an online account with TD Canada Trust, or through a TD Waterhouse discount brokerage account."


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## CanadianCapitalist (Mar 31, 2009)

indexxx said:


> So it's possible to open a TD mutual fund account without being a TD banking client?


Yes, you can open a TD Mutual Fund Account without being a TD Bank client. Your TD Mutual Fund Account will be set up to automatically pull money from your current chequing account, wherever it may be.

You can also have a TD Waterhouse account without having a TD Bank account. You'll be able to deposit money into TDW account by walking into any TD Bank branch.


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## indexxx (Oct 31, 2011)

So given that I already use Questrade for buying and selling, is the better strategy to open a TD mutual fund account and do monthly auto debit from my RBC checking, or to open a TDW and transfer or deposit money into it every month? Is there an advantage to one method?


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## Elbyron (Apr 3, 2009)

indexxx said:


> So given that I already use Questrade for buying and selling, is the better strategy to open a TD mutual fund account and do monthly auto debit from my RBC checking, or to open a TDW and transfer or deposit money into it every month? Is there an advantage to one method?


Last summer I was making the same decision. There didn't seem to be many advantages to TDW over TD Canada Trust, and there were a few disadvantages such as higher minimum purchase amounts. Either way you will be able to set up automatic transfers, but TDW may involve more work. The only reason I could see going with TDW is if you intend to use some of their other investment services, but since you're using Questrade I don't think you'll find TDW's fees very attractive.

Regardless which one you choose, I would advise going into the branch in person to set up the account (which can be set up as TFSA or other registered accounts if desired). Don't go in requesting e-Series, as they either will not know about it or may "play dumb" about it since their branch doesn't profit when you use e-Series. Just take with you the form to convert to e-Series. Wait till the end of the meeting to whip it out, fill in the account number, and ask the agent to send it in via inter-office mail. You can also apply online for the e-Series account directly, but I'm not 100% sure if this is doable for non-TD customers, and it definitely cannot give you a registered account.

One thing to watch out for when signing up for TD Canada Trust's mutual fund accounts is the mandatory risk-tolerance questionnaire. From what I've heard from others, if you answer too conservatively, they will set limits on what percentage of your account can be held in equities. But if you pick the high-risk answer to each question, you won't have any restrictions on what you can buy. 

The agent may ask you to put some initial funds into the account. I believe you can decline but sometimes they can be very pushy, so it's good to have a cheque ready. Only invest in a money market fund initially until your e-Series conversion is complete, that way you can move the funds without incurring any fees (mutual funds normally have a minimum purchase period, I think 60 days & 90 for e-Series). It will take 2 - 3 weeks for the conversion to complete, then you can log in and buy your e-Series funds.

Good luck!


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## Eclectic12 (Oct 20, 2010)

CanadianCapitalist said:


> Yes, you can open a TD Mutual Fund Account without being a TD Bank client. Your TD Mutual Fund Account will be set up to automatically pull money from your current chequing account, wherever it may be.
> 
> You can also have a TD Waterhouse account without having a TD Bank account. You'll be able to deposit money into TDW account by walking into any TD Bank branch.


But is it worth having a TDW account without a TD bank account?

From what has been posted in other threads, it is my TD bank chequing account that is allowing me pull money out whenever I want and avoid withdrawal fees. 

Then too - the TD bank account gives ATM access instead of whatever the branch hours are. A phone call or online system transfer completes the transfer over to TDW.

Just something to factor into the overall setup ...


Cheers


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## indexxx (Oct 31, 2011)

Elbyron said:


> Regardless which one you choose, I would advise going into the branch in person to set up the account (which can be set up as TFSA or other registered accounts if desired). Don't go in requesting e-Series, as they either will not know about it or may "play dumb" about it since their branch doesn't profit when you use e-Series. Just take with you the form to convert to e-Series. Wait till the end of the meeting to whip it out, fill in the account number, and ask the agent to send it in via inter-office mail. You can also apply online for the e-Series account directly, but I'm not 100% sure if this is doable for non-TD customers, and it definitely cannot give you a registered account.
> 
> 
> 
> ...


Great advice Elbyron- and I need to know something else, if you or anyone can answer. Do I HAVE to buy a Money Market Fund? Can I not just open an RRSP account with TD, deposit say $1,000 into it as cash in their Daily interest Savings account, and then start funding my eSeries once the conversion is done? I'm on TD's website, looking at Money Market Funds, and it appears that the lowest initial purchase is $5,000. Also, do I set up a PPP at the initial meeting with a void cheque, or can I set it up online afterwards? I'll be funding it bi-weekly from my RBC chequing account.


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## Barwelle (Feb 23, 2011)

No, you don't _have_ to buy a money market fund; you don't have to give them _any_ money at this point. All you have to do is *open a mutual fund account and link it to your chequing account.* That's it. 

Then, once it is open, you can either hand in the conversion form at the bank as Elbyron describes (make sure you bring it with you because it is unlikely that they will have it), *or* you can leave the bank, and send it in afterwards (that's what I did because I didn't want to risk the chance of it getting lost in the branch! Not likely though.)

They will give you an access card (just like a debit card, except you can't use it as one). The number on it will give you access to your account through EasyWeb on the TD website.

I took a slightly different approach than Elbyron... I was up front with the guy that I wanted to open the e-Series account. He still tried to sell me the higher-fee "Comfort Portfolio" mutual funds. I had to repeatedly tell him that I knew what I wanted. Just be firm and don't give in to the pressure.

I second the advice to make sure to pick the more agressive answers during the risk profile questionnaire. 

But you should bring a void cheque for sure, so that your TD account can be linked to your RBC chequing account. I would void it beforehand, and only bring the one cheque, so that they don't sucker you into giving them money anyway! I recommend not putting any money in money market funds or whatever, just because it adds an extra (unnecessary) step to the process.

As for your PPP, you do *not* set it up at the initial meeting, you do it all online at home. That is the point of the e-Series funds... you do all the work yourself, so that someone at TD doesn't have to do it for you, which decreases their costs to run the funds. Which means lower fees for you.

You will have to wait a few days for the conversion to be made, it won't happen right away.

Just to clarify, you are opening a TD e-Series RRSP account with TD, not TDW? And you are linking that account directly to your RBC account and not opening a TD savings or chequing account of any kind?

Good luck, and let us know how it goes!


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## indexxx (Oct 31, 2011)

Barwelle said:


> No, you don't _have_ to buy a money market fund; you don't have to give them _any_ money at this point. All you have to do is *open a mutual fund account and link it to your chequing account.* That's it.
> 
> Then, once it is open, you can either hand in the conversion form at the bank as Elbyron describes (make sure you bring it with you because it is unlikely that they will have it), *or* you can leave the bank, and send it in afterwards (that's what I did because I didn't want to risk the chance of it getting lost in the branch! Not likely though.)
> 
> ...


Great answer Barwelle- and very timely; i have my meeting set up for tomorrow! yes, I'm opening a TD RRSP account, and taking the eSeries form in with me. I'll then link it to my RBC chequing, and set up the PPP.


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## indexxx (Oct 31, 2011)

Barwelle asked me to update how the process went- it was very easy and the person I dealt with knew exactly what I wanted to do, except he was unaware of the form I'd brought (see Elbyron's post upthread), but he once he saw it there was no issue. I simply told him I wanted to open an RRSP account that I would convert to eSeries and that I wanted to link to my PC financial account. We opened the RRSP, I made a deposit in a money market fund, (not required, but I wanted to before the 29th), and we filled out the conversion form I'd printed out beforehand. He submitted everything together and I'll have my eSeries ready in two weeks. Simple, took 45 minutes. There was no pressure or mention of other mutual funds, as he respected that I knew what I wanted.

Thanks again for the advice everyone!


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## Barwelle (Feb 23, 2011)

It didn't even cross my mind that you might want to contribute before the RRSP deadline. Good that you got that covered. Glad to hear you had a good experience with it!


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## 44545 (Feb 14, 2012)

Bringing up an older thread but I wanted to add a few points. From another thread: 



Jungle said:


> There is another disadvantage to TD Mutual funds. You have to do that risk tolerance survey. Most e-series DIY's answer the questions with the option that provides the most risk, so they can build whatever portfolio they want.
> 
> Now problem is, I think the survey expires every year. I missed out buying on some dips because the survey expired and they deemed it was beyond my risk tolerance to buy equity funds!
> 
> With TD waterhouse, you can buy whatever you want. Once we hit 25K I will be moving it over there.


From that I take away that TD Waterhouse won't make you jump through hoops you'd have to with a regular TD Investor's account.

*** *** ***

http://www.tdwaterhouse.ca/document/PDF/apply/forms/tdw-apply-forms-521778-pdf.pdf
TD Waterhouse TFSAs are listed as "NO FEE".
On unregistered accounts, the inactivity fee is waived if you also hold a registered account such as the TFSA. (see page 6 of the above-linked fee schedule)
The RRSP is listed as having a $25 annual fee if below $25,000 value.

My strategy has been to use a no-fee chequing account at another institution and make "bill payments" to TD Waterhouse to transfer funds in.
Getting funds OUT requires a TD account - a TD Savings account (no fee) works.

Full disclosure: I don't have an RRSP, only a TFSA (employer pension kills my RRSP contribution room) and I use the e-Series index funds so I'm not incurring brokerage fees.


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## caricole (Mar 12, 2012)

> indexx...I made a deposit in a money market fund,


TDW discount broker....no MF account...just margin and short

If I want to park some money that came in and move or use it after a couple of days...no problem...the return is not great, but the money is not idle

*TDB 164 Money Market Fund*...value 10,00$ at all times...no cost of buying or selling

No minimum holding périod, minimum to start 250$....after that...minimum transaction (buy or sell)....100$

just an idea


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