# Brokerage for Registered Disability Savings Plan (RDSP)



## flayto (Apr 4, 2009)

Can anyone recommend a good brokerage in which to start an RDSP? I thought Questrade used to offer one, but I don't see any mention of it on their website anymore.

I'm going to be putting stocks and ETF's in there. Don't plan on trading a whole lot (few times a year), but will be starting with a small amount so looking for as low commissions as possible.


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## CanadianCapitalist (Mar 31, 2009)

I don't have a RDSP account myself but if I were you, I'd start with your current broker. Check if they offer a RDSP account. If they don't, then check your bank. I seem to recall that most big banks and their brokerage arms offer RDSP accounts now. If you are looking for a name, BMO was the first to offer a RDSP.


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## iherald (Apr 18, 2009)

flayto said:


> Can anyone recommend a good brokerage in which to start an RDSP? I thought Questrade used to offer one, but I don't see any mention of it on their website anymore.
> 
> I'm going to be putting stocks and ETF's in there. Don't plan on trading a whole lot (few times a year), but will be starting with a small amount so looking for as low commissions as possible.


I know TD has one now. I am with BMO because TD didn't have an RDSP that first year. Now I'd like to switch it over to TD so it's with the rest of my accounts, but the government hasn't figured out the proper forms on how to do that. 

So, if you have an account at one place, try that place first. It will save you headaches.


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## SamuelConsultant (May 29, 2013)

iherald said:


> I know TD has one now. I am with BMO because TD didn't have an RDSP that first year. Now I'd like to switch it over to TD so it's with the rest of my accounts, but the government hasn't figured out the proper forms on how to do that.
> 
> So, if you have an account at one place, try that place first. It will save you headaches.


Just want to provide some updates about the RDSP transfer. You could now transfer your RDSP to another financial insitution. Below is the guideline quoted from the CRA:

"A transfer from one RDSP to another can be made only under the following conditions:

the transfer must be made from a beneficiary's RDSP to another RDSP for the same beneficiary;
a transfer can only be made if all holders of the current RDSP agree to the transfer; and
all funds must be transferred from the current RDSP to the new RDSP."

However, to my understanding, you may only have one RDSP account per beneficiary.





Disclaimer: This post should be used for informational purposes only and should not replace the advice of a financial professional.


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## SamuelConsultant (May 29, 2013)

flayto said:


> Can anyone recommend a good brokerage in which to start an RDSP? I thought Questrade used to offer one, but I don't see any mention of it on their website anymore.
> 
> I'm going to be putting stocks and ETF's in there. Don't plan on trading a whole lot (few times a year), but will be starting with a small amount so looking for as low commissions as possible.


A self-direct account may save you some commissions, but RDSP is relevantly more complex than other account-types, so be sure you fully understand its rules. 

For example, 
- How much should you contribute to catch up all the grants and bonds?
- What's the implication when I withdraw them within the first 10 years?
- How to implement the estate planning through the use of RDSP and Henson Trust?


There are several financial institutions that are already offering the RDSP. Unless you are very comfortable in DIY, I encourage you to find a professional who is really familiar with the RDSP.


Disclaimer: This post should be used for informational purposes only and should not replace the advice of a financial professional.


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## CanadianCapitalist (Mar 31, 2009)

SamuelConsultant said:


> are several financial institutions that are already offering the RDSP. Unless you are very comfortable in DIY, I encourage you to find a professional who is really familiar with the RDSP.


I'm guessing you'd be one such "professional". Just so you know, this is a DIY forum, so members here are very comfortable with DIY.


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## SamuelConsultant (May 29, 2013)

CanadianCapitalist said:


> I'm guessing you'd be one such "professional". Just so you know, this is a DIY forum, so members here are very comfortable with DIY.


Sorry for the delay in response, I just realized I haven't replied to this thread. 

Well, they do not necessarily have to come to me, it just that RDSP really involves a lot of different aspects to be considered. 
For example,
- How much should I contribute to max out the government grant?
- Upon withdrawal, how will that affect my other government benefits? (i.e.: Ontario Disability Support Program, ODSP)
- Should parents leave their estate into their child's RDSP? Henson Trust? If so, what are the tax implication? grant & bonds implication?

There are people that are comfortable in DIY, which is also fine, but my emphasis is to understand the consequences of different scenarios when planning for it.


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