# Which Broker? CIBC Investors Edge or TD Waterhouse?



## 2tire2work (Jul 20, 2013)

Ive decided to invest on my own. I am new to investing through brokers and need some advice on which broker will suit my situation better. And which broker is easier to open an acount, learn and use. 

I have 100k to invest. I want to catch up on rrsp and my tfsa. I opened a tfsa few years ago but never put any money in it. And I have aprox 20k in rrsp contribution room. I also need to catch up on resp for my children. Basically I need to get my finances organized. I also plan to put in 10 to 20k for the next 3 to 5 years. 

I am more of a conservative investor. I am leaning towards wealth preservation more than wealth accumulation. My time line is not to touch the money for the next 10 to 15 years.

Thanks in advance.


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## My Own Advisor (Sep 24, 2012)

Based on the forum preferences, I would say most investors here go with TD Waterhouse, RBC or Scotia iTrade.

Good on you 2tire2work to "catch up" on investing for you and your family. You've made a wise decision to get focused on that.


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## Belguy (May 24, 2010)

Personally, I would just go with the discount brokerage where you currently do most of your banking assuming you are overall satisfied with their service


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## Guban (Jul 5, 2011)

I only have experience with TDW and RBCDI. I can't remember the opening for Waterhouse as it was so long ago, but overall I'd say the two are fairly similar. TD allows joint RESPs if this matters to you. I found it easier to contribute from either my account or my wife's. RBCDI does not. US dollar RSPs are better at RBCDI. 

There are a lot of regular articles comparing the major discount brokerages out there. 

Sounds like you are really getting your financial house in order! Best wishes!


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## lonewolf (Jun 12, 2012)

To much conflict of interest with banks. Eliminate the conflict join a credit union. Surround yourself with people that empower you not people that try to take that which you are trying to build. Use a discount broker through a credit union the bank is never a true friend.


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## Xoron (Jun 22, 2010)

I've used both TDWH (RESP) and CIBC IE (RRSP / TFSA). I like CIBC much better for most trading / account keeping / transaction filtering. TDWH is slightly better on it's research tools (not that I use them). And with $6.95 trades (if you meet criteria), CIBC is the cheapest of the big bank brokerages.

*BUT *

Have been considering switching (to RBC or Questrade.) CIBC nor TDWH offer US$ RRSP / RESP / TFSA accounts. I do quite a few US$ trades, and it's a drag on performance. Yes you can norbit, or wash / autowash. But if you're planing on doing US$ trades, and have no allegiance to TD / CIBC, then consider a brokerage that offers native US$ Registered accounts.


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## 2tire2work (Jul 20, 2013)

I will look into rbc. US dollar account is worth to consider in the future. 

Lonewolf. I thought some credit unions are not cdic insured? And how banks are different from credit unions? Can you explain?


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## gibor365 (Apr 1, 2011)

I have accounts in both TDW and CIBC IE.
1. advantages of CIBC - cheaper trading fees 6.95 vs 9.99, better GUI interface, filtering transactions etc., if you doing multiple trades same day and same security , you pay still 6.95 (in TDW you will pay every trade 9.99), better FX rates if you buy US stocks using CND cash.
2. advantages of TDW: much better research tools, cannot even compare to CIBC, ability to perform US$ wash automatically, TDW platform is much more clever than CIBC's. As an example. if in TDW you have MM and saving fund (like TDB8150), you can place trade and it will be process - TDW platform understands that you have $$ available.
CIBC in this case will reject trades, and will reject not right away on the screen level, but about 5 min later from server.... so in CIBC you need to place sell order on MM or saving fun first and then place buy on stock


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## gibor365 (Apr 1, 2011)

Xoron said:


> Have been considering switching (to RBC or Questrade.) CIBC nor TDWH offer US$ RRSP / RESP / TFSA accounts. I do quite a few US$ trades, and it's a drag on performance. Yes you can norbit, or wash / autowash. But if you're planing on doing US$ trades, and have no allegiance to TD / CIBC, then consider a brokerage that offers native US$ Registered accounts.


Both TDW and CM are promising for some time to allow US$ RRSP, but still nothing.... However, in RBC trading fee is higher than CM, it's 9.95 unless you're doing 150 trades per Quarter....I think in whole my life I did 150 trades


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## GoldStone (Mar 6, 2011)

2tire2work said:


> I will look into rbc. US dollar account is worth to consider in the future.


Then look into BMO as well. They offer true US dollar RRSPs.


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## MrMatt (Dec 21, 2011)

2tire2work said:


> I will look into rbc. US dollar account is worth to consider in the future.
> 
> Lonewolf. I thought some credit unions are not cdic insured? And how banks are different from credit unions? Can you explain?


Brokerages aren't CDIC insured anyway.

Credit unions are just another option, some people like the "not a bank" part of them, but really they're the same thing, a company that makes money providing financial services.


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## Xoron (Jun 22, 2010)

MrMatt said:


> Brokerages aren't CDIC insured anyway..


They are CIPF insured, up to 1Mil.


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## gibor365 (Apr 1, 2011)

MrMatt said:


> Brokerages aren't CDIC insured anyway.
> 
> .


Are you sure? If I have some 3rd party GIC in TDW or CIBC EI - they are not insured?


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## MrMatt (Dec 21, 2011)

gibor said:


> Are you sure? If I have some 3rd party GIC in TDW or CIBC EI - they are not insured?


Yes I'm sure. There are a number of different ways that "money" is "insured" and though they may be similar they are different.


Banks deposits are CDIC insured.
Credit unions are insured at the provincial level, however this may or may not be government backed.

Brokerages are typically CIPF for the account, but that doesn't insure the underlying investments, which would be backed differently depending on the investment.


Bank GICs would be CIDC insured.
Bonds would be backed by the issuing entity etc.


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## gibor365 (Apr 1, 2011)

OK, so if I have in TDW third party GIC, by whom it will be insured?


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## Jungle (Feb 17, 2010)

I know it's not in op, but you can get a free ipad from Questrade with 100k account, 4.95 trade and free etf buying. They also have USD RSP and TFSA.


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## james4beach (Nov 15, 2012)

gibor said:


> Are you sure? If I have some 3rd party GIC in TDW or CIBC EI - they are not insured?


I'll describe my understanding of it but if anyone knows this is not true, please let me know.

Here's a scenario, in a 100k brokerage account
a) 30k in cash within the brokerage account
b) 30k in X shares of stock
c) 20k in RBC GIC
d) 20k in TD HISA fund like TDB8150

As far as I know:
a) the 30k is insured by CIPF (private insurance) in case the broker collapses
b) the stock is insured by CIPF, meaning if the broker "loses" your assets (e.g. fraud, securities lending) CIPF will get your X shares back
c) the GIC is CDIC (govt) insured, up to your RBC CDIC maximum
d) the savings account is CDIC insured, up to your TD CDIC maximum

So I think only (a) and (b) go towards your CIPF insurance maximum.
(c) and (d) are CDIC insured, provided they meet the eligibility rules.

Did I get this right?


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## james4beach (Nov 15, 2012)

gibor: I found this CDIC page, see "How does CDIC calculate insurance for deposits purchased through brokers?"
http://www.cdic.ca/DepositInsurance/FAQ/Pages/default.aspx

It seems to be saying that GICs or other deposits (like HISA) made through brokerages are eligible for CDIC insurance. However they've noted there that insurance only takes effect once the bank institution receives the funds.

I suppose that leaves the question, what do they mean by that? Are they referring to the settlement period (1 or 2 days) or are there longer time delays at brokerages?


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## gibor365 (Apr 1, 2011)

I have in TDW and CIBC, GIC issued by ICICI, Equitable life, AGF.... just wondering who insure those?


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## james4beach (Nov 15, 2012)

gibor, as far as I know all of those are eligible for CDIC insurance even when held within the TDW brokerage.


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## AltaRed (Jun 8, 2009)

james4beach said:


> gibor, as far as I know all of those are eligible for CDIC insurance even when held within the TDW brokerage.


It may depend if the GICs are held by the broker in street name, or directly in your name. If the latter, for sure they are CDIC insured. Not sure about the former (though I believe so). Ask your broker.


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## 2tire2work (Jul 20, 2013)

Just an update. Opened an account with royal bank. 
Thanks everyone for the advice.


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## msands (Oct 17, 2013)

*TD thinkorswim*

Glad to hear you were able to find one that works for you.

If you're an active trader TDW does have the Thinkorswim platform. Lots of advanced order types and options tools as well. Unfortunately, you can only open U.S. margin accounts currently.. no RRSPs or TFSAs. I'm dying for them to bring registered accounts to the platform. It makes my trading so much easier!


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