# Scotia iTrade question



## RCB (Jan 11, 2014)

This pertains to iTrade, but for all I know it may apply to all DIY online brokers. I am new to the whole investing process.

Last week, after moving TFSA cash to a new iTrade TFSA account, I purchased a few REITs and stocks. All went well. Last week I also sold MFs at Tangerine in my TFSA, electing to have it sent to my chequing at Scotia. As I didn't wish to wait for that to settle before purchasing more stock in iTrade, I moved the equivalent amount from my LOC to chequing at Scotia, and then through online bill payment moved it to my TFSA in with iTrade.

When my $1,900 cash transfer from chequing/bill payment showed up at iTrade, the buying power in my TFSA showed up at $1,867 and change. The previously purchased position balances were down that day. How can I transfer over an amount, and part of it vanishes?

Why does that eat into my new cash deposit into that account? I don't know what I'm missing in knowledge here. Help appreciated.


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## AltaRed (Jun 8, 2009)

You made some significant errors moving money out of the Tangerine TFSA to Scotia chequing and then to Scotia iTrade TFSA (whether it was that cash or your LOC cash). You should never withdraw from a TFSA and then contribute right away to another one. You are running afoul of TFSA rules. You should have had Scotia iTrade transfer your Tangerine funds directly to your iTrade TFSA. That is your bigger issue right now.

As an aside, your first statement also raises a question. How did you move the initial TFSA cash to that new iTrade TFSA account? An internal transfer or did you make the same mistake with those funds too?

As for the $1867 vs $1900 discrepancy, follow the math by looking at each transaction online in your Scotia iTrade TFSA account. Start with the initial TFSA cash you used to buy REITs and stock. Did you overlook a brokerage commission or two? and thus have a deficit in your iTrade TFSA before making this latest contribution? Was there a transfer fee charged?


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## RCB (Jan 11, 2014)

AltaRed, thanks for your comments. I didn't make any (TFSA rule) mistakes transferring either time. Sadly I had more than enough contribution room in my TFSA this year to withdraw and recontribute in the same calendar year.

Regarding the initial purchases, all purchases were made to not exceed the initial cash transfers in each account. This includes the trading fees. Over 4 accounts I purchased in initially (LIRA, SP RRSP, 2 TFSAs), there was a bit of cash left over. Any subsequent negative amount, as reported as "buying power" in iTrade, I would suspect would be the result in a change in market value, as compared to book value (which includes the trading fees).

Thanks for bringing that up, because the peanuts cash left over from the initial purchases has disappeared as well.


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## RCB (Jan 11, 2014)

You were actually correct AltaRed. When I was making the initial purchases, I must have been using the "buying power" figure offered by iTrade, as a running balance of cash left as I made purchases. That figure must not have included the fees. I will know next time I make multiple purchases at one time to keep my own running balance including the trading fees, not to use iTrade's amount.

Thanks.


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## spdr1812 (Apr 8, 2016)

Just a quick question , what are the fees per trade with Scotia , I want to weigh my options before switching to self-dir in my bank or switch to questrade or something else . Would rather have it in a bank but am unsure still .


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## AltaRed (Jun 8, 2009)

Google and you shall receive http://www.scotiabank.com/itrade/en/0,,3693,00.html


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## spdr1812 (Apr 8, 2016)

Ouch , looks like I'll stay where I'm at , thanks .


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## AltaRed (Jun 8, 2009)

chrisnott said:


> Ouch , looks like I'll stay where I'm at , thanks .


I thnk iTrade is the only dscounter left that does not have <$10 commissions for accounts of all sizes. Others like RBC DI dropped their $25 commissions for small accounts quite some time ago. Other than that, rates are essentially the same for all the big houses.


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## RCB (Jan 11, 2014)

We're fine with using iTrade because we get 9.99 trading. You need $50,000+ in business with them to get that rate...so a mortgage, or investment account combo. I looked at Questrade, but didn't like some things I was reading about their reporting. They also spammed me after signing up for a practice account, and called my cell many times. Very annoying.


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## spdr1812 (Apr 8, 2016)

I'm with CIBC and no matter what you have $100 or a million its $6.95 per trade and $4.95 after a certain amount , 150 trades maybe . I looked at Questrade too and was unsure , also the other one I've been hearing about is Virtual Traders , Wealthsimple is another as well . Once I determine which one is best for me out of the robo sites I was going to tweak what I have at the bank and let them sit and use robo for trading .. maybe .


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## AltaRed (Jun 8, 2009)

It seems to me that, with the exception of frequent traders, commissions at the big bank DIY brokerages are irrelevant. What would (should?) be more important is quality of the website, trading platform, research, accounting, statements, tax slips.....and ultimately maybe were you bank (the convenience of being with one institution). Nothing comes for free so if one is with the 'cheap' discounter, maybe that is what you get.....cheap.

For me at least, commissions are irrelevant. Perhaps 5 trades a year, 10 in a really busy year. Not even close to a single basis point in cost on my overall portfolio. Maybe a night out in the pub.


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## Eclectic12 (Oct 20, 2010)

chrisnott said:


> I'm with CIBC and no matter what you have $100 or a million its $6.95 per trade and $4.95 after a certain amount , 150 trades maybe ...


What are the CIBC T forms (i.e. T3, T5, T5008) delivery choices?


Cheers


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## spdr1812 (Apr 8, 2016)

What are the CIBC T forms (i.e. T3, T5, T5008) delivery choices?

That I'm unsure of actually , new to trading and haven't had a return or dividend yet so will have to find out . Thx


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## RCB (Jan 11, 2014)

AltaRed, that's the conclusion I came to. Convenience of keeping everything consolidated, quick cash transfers over, with a long-term, pre-existing relationship. 

I just purchased equities in four new accounts. It cost us the equivalent of a night out to eat at a bar. What we reap in dividends in just one account with a paltry balance will cover those fees. Better than sitting in cash making squat, or lost opportunity from 10 years sitting in MFs that made money only for the bank.

And I bought my bank's stock to recover some of the fees.


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## Eclectic12 (Oct 20, 2010)

chrisnott said:


> Eclectic12 said:
> 
> 
> > What are the CIBC T forms (i.e. T3, T5, T5008) delivery choices?
> ...


The deal breaker for a former co-worker was if the tax forms were not being made available online where only mailing paper copies was available.

As he is out of town on business a lot, he prefers to collect the forms for his taxes from whatever client site or hotel he is in. This means he can finish his taxes a lot more quickly than if he was waiting.


It may not matter to everyone but for some, it makes life a lot easier.

Cheers


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## AltaRed (Jun 8, 2009)

It actually is no longer relevant whether tax slips are online at one's discount brokerage any more, not with CRA auto-fill. The tax slip data is there should one need it.

The only discount brokerage I am aware of that has tax slips online is TDDI. There may be others. I know that RBC DI, Scotia iTrade and BMO IL do not..... or at least RBC DI did not when I was still with them.


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## djkelly (Feb 18, 2016)

+1 You can get all forms from CRA online now.

Questrade does offer them online however.


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## Eclectic12 (Oct 20, 2010)

AltaRed said:


> It actually is no longer relevant whether tax slips are online at one's discount brokerage any more, not with CRA auto-fill. The tax slip data is there should one need it ...


Where one is willing to go with the totals ... sure.

Should one suspect an error, I don't believe CRA provides the breakdown so it would be difficult to trace/figure out.
Or if say an ETF has not reported yet.

Cheers


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