# Best TFSA for a dummy like me?



## ashby corner (Jun 15, 2009)

hey y'all.

I want to open a TFSA, but not an el-cheapo "1%" thing. Here's what I want to do:

Open a TFSA
Each time I have 50 or 100 to spare, chuck it in the TFSA account.
Once I reach, say, 1000, buy some shares in a Canadian bank (or something).
repeat.

So, I received the package from TD waterhouse discount brokerage. It's a bit confusing, but it smells like it's $50/year admin fee, plus ~$43 per trade.

Not that I'm going to be doing a huge amount of trading, but even one per year will cost me $100/year. If I only get 1000 per year in there, BOOM: loss of 10%.

So, what's the best option for me, under the scenario I describe. It might be "shove it in your pillowcase".

Thanks!


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## bgc_fan (Apr 5, 2009)

ashby corner said:


> So, I received the package from TD waterhouse discount brokerage. It's a bit confusing, but it smells like it's $50/year admin fee, plus ~$43 per trade.
> 
> Not that I'm going to be doing a huge amount of trading, but even one per year will cost me $100/year. If I only get 1000 per year in there, BOOM: loss of 10%.
> 
> ...


If you do a search on globeandmail and look for Rob Carrick's column, he has a comparison of TFSA options. The thing about TD Waterhouse is that if you have 100k+ in assets with TD Waterhouse, they will waive the admin fee.

I don't know if that helps or not.


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## Berubeland (Sep 6, 2009)

http://www.questrade.com/trading/tax_free.aspx

No fees cheap trades but a $1000 minimum. Until March 1st they will give you 10 free trades.


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## Cal (Jun 17, 2009)

TD online trades (webroker) are $29 each.


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## maximals (Feb 27, 2010)

You can avoid the annual administration fee for TFSA with TDW by registering for eServices (paperless).


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## maximals (Feb 27, 2010)

The annual administration fee for TFSA will be waived when:

1. Your account(s) are registered for eServices - online trading confirmations, account statements, and tax documents, or when,
2. Your total household account assets with TD Waterhouse Discount Brokerage equal $100,000 or more.

reference: http://www.tdwaterhouse.ca/apply/forms/521778.pdf


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## Y&T2010 (Dec 29, 2009)

I put my TFSA this year with Questrade.
They give you $50 in free trades if you can google it.
With $4.95 per 100 shares you really can't go wrong..

I found that with BMO investorline, I was hesitant to do many trades because it was so expensive. With such a small amount to invest ($5000) you really have to make sure you keep your investing costs low.


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## sprocket1200 (Aug 21, 2009)

to start off you could do a no cost thing with ING or someone, then buy their index funds until you have a sizeable amount and simply transfer it somewhere else


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## w0nger (Mar 15, 2010)

I'm currently using the ING TFSA savings account to accumulate the savings, then transfer the money to my waterhouse account. I use the ING TFSA because it's currently paying 3% interest, which is way higher than any other savings account that i can find.

Open one with my referral key (orange key) and we both get a $25 bonus sign up fee... how can you say no to free money...??

orange key: ****


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## OhGreatGuru (May 24, 2009)

Given your self-description and limited assets, i would also recommend you stay with high-interest savings and no-load mutual funds.


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## Taxsaver (Jun 7, 2009)

w0nger said:


> I'm currently using the ING TFSA savings account to accumulate the savings, then transfer the money to my waterhouse account. I use the ING TFSA because it's currently paying 3% interest, which is way higher than any other savings account that i can find.
> 
> Open one with my referral key (orange key) and we both get a $25 bonus sign up fee... how can you say no to free money...??
> 
> orange key: 34753714S1


What is an orange key???


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## shaune (May 2, 2010)

*TFSA investments*

Check out a Mortgage Investment Corporation (MIC) for +10% annual returns. Income can be re-invested so interest compounds. Most want around $5k minimum and there are a few start-up fees. Once you have a bit of money invested the fees are a small percentage measured against your return. Kicks the crap out of GIC's or high risk stocks. MIC's work for all registered investments. Need an administrator like Olympia Trust to handle the paperwork. That's where the fees come from.
A good MIC I use is Axcess Capital. Very conservative with a low LTV ratio.
If you have a bit more cash available, look at syndicated mortgages. You can get 10-15% depending on risk profile. Axcess is a good source for these investments as well. Double your money in 6 yrs.
Your mutual fund salesman will lie to you and tell you these are illegal uses for your RRSP's. They don't want to lose their commissions!!!!!!


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## Toronto.gal (Jan 8, 2010)

Taxsaver said:


> What is an orange key???


It's a referral program that ING offers its new account holders on an initial deposit of $100. It gives $25 to both, the new clients & the one that referred them. You can earn up to $2,000 through this referral program,


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## brad (May 22, 2009)

FYI, ING just dropped the rate for TFSAs from 3% to 2%. I think everyone saw this coming; I'm actually surprised they're keeping it as high as 2%, but we'll see how long that lasts!


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