# Bad experience with RBC DI!!!



## doc987 (Nov 23, 2011)

I have had it with this online broker. 
Can anyone recommend another broker so that I can transfer my funds. It would need to be able to maintain US dollar account in RRSP. 
Also, can anyone advise on reporting issues to a securities regulator in Canada regarding issues with an online brokerage?

Thanks in advance.


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## Jungle (Feb 17, 2010)

I use Questrade for our non reg-great service, been with them for 4 years on and off. They have USD in RSP and cheap conversion rates us USD in RSP.


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## leoc2 (Dec 28, 2010)

BMO investorline user here. US dollar RRSP friendly.


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## Ihatetaxes (May 5, 2010)

I am very happy with RBC DI. What is your specific issue with them?


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## uptoolate (Oct 9, 2011)

Yes I'd be interested to hear as well. I use TDW mainly but now using RBC DI because my mother has always banked with them and I am managing her funds.


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## Uranium101 (Nov 18, 2011)

BMO and RBC DI should be of good competitor mainly because they both have USD in Registered accounts.


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## Sherlock (Apr 18, 2010)

I've only used investor's edge and questrade, but I was under the impression that all big banks' discount brokerages were pretty much the same. What specific issues are you having with RBC? It's possible you'll have the same problems with other brokers.


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## doc987 (Nov 23, 2011)

Ihatetaxes said:


> I am very happy with RBC DI. What is your specific issue with them?


Ok here, goes i'll try to make a long story short.
Last November, I purchased a security in an RRSP US$ (OIH- this is an etf basket of oil service companies). Anyhow, earlier this year, I noticed it converted into OIHYL and moved into my canadian dollar side! I called RBCDI and asked them what the heck happened. After 2 weeks and several follow up phone calls they finally responded. The OIH fund had added new holdings and thus terminated, or technically converted (it is still called OIH). However, investors had the option to retain the new OIH or convert to OIHYL. I was never given the option to keep OIH b/c RBC said i bought the security one day after the letters were sent out!! The offer expired in mid Dec last year. So now i was in a position that i owned OIHYL (now an illegal security to hold in an RRSP by the way- subject to a 50% tax penalty by the CRA upon selling!!!) This OIHYL trades in the grey market, not on the exchange and will default to cash by years end!! I called the CRA today was told me it was the brokers responsibility to make it known to investors regarding the change. RBC felt it was my responsibility to do my own due dilligence when buying the security. I guess we should all be calling the companies before buying their stock to see if they plan on terminating!! How unreasonable is this?? This was a high volume security trading on the NASDAQ with over a million shares per day. Anyhow, they said i was unlucky that i didn't receive their letter b/c i bought it the day after!!! So i sold it today at a loss of course just to get it off the books. If i didn't sell, i would risk getting a lot less later this year if we hit a market downturn. I had $25K in it so my losses may have been large. About the CRA, i still don't know what will happen. Nonetheless, i've decided to pursue the case with the OSC.
This has left me with a very bad taste in my mouth in the way it was handled by RBCDI.


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## blin10 (Jun 27, 2011)

if you bought it a day after they send out forms, what you want them to do? do you want them to mail you those forms every single day ? 




doc987 said:


> Ok here, goes i'll try to make a long story short.
> Last November, I purchased a security in an RRSP US$ (OIH- this is an etf basket of oil service companies). Anyhow, earlier this year, I noticed it converted into OIHYL and moved into my canadian dollar side! I called RBCDI and asked them what the heck happened. After 2 weeks and several follow up phone calls they finally responded. The OIH fund had added new holdings and thus terminated, or technically converted (it is still called OIH). However, investors had the option to retain the new OIH or convert to OIHYL. I was never given the option to keep OIH b/c RBC said i bought the security one day after the letters were sent out!! The offer expired in mid Dec last year. So now i was in a position that i owned OIHYL (now an illegal security to hold in an RRSP by the way- subject to a 50% tax penalty by the CRA upon selling!!!) This OIHYL trades in the grey market, not on the exchange and will default to cash by years end!! I called the CRA today was told me it was the brokers responsibility to make it known to investors regarding the change. RBC felt it was my responsibility to do my own due dilligence when buying the security. I guess we should all be calling the companies before buying their stock to see if they plan on terminating!! How unreasonable is this?? This was a high volume security trading on the NASDAQ with over a million shares per day. Anyhow, they said i was unlucky that i didn't receive their letter b/c i bought it the day after!!! So i sold it today at a loss of course just to get it off the books. If i didn't sell, i would risk getting a lot less later this year if we hit a market downturn. I had $25K in it so my losses may have been large. About the CRA, i still don't know what will happen. Nonetheless, i've decided to pursue the case with the OSC.
> This has left me with a very bad taste in my mouth in the way it was handled by RBCDI.


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## the-royal-mail (Dec 11, 2009)

Wow that's quite a story. Thanks for posting and sharing it here. Sounds like poor customer service at the very least.


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## Causalien (Apr 4, 2009)

Options express.


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## doc987 (Nov 23, 2011)

blin10 said:


> if you bought it a day after they send out forms, what you want them to do? do you want them to mail you those forms every single day ?


No I don't expect them to mail me those forms every single day. However I do expect they post a notice that the security you are about to buy has RECENTLY BEEN TERMINATED.


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## Uranium101 (Nov 18, 2011)

Dont you read the recent news before making a purchase?


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## doc987 (Nov 23, 2011)

I do my due diligence which includes a check on the recent news before I purchase anything. If there was anything posted I wouldn't had bought it. I started finding news about this 3 weeks post purchase.


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## OptsyEagle (Nov 29, 2009)

The OSC will be a waste of effort since they do not get involved with civil disputes, which is what this is. Unfortuneately that leaves you snookered since the cost of legal fees will render your complaint valueless, especially when you add your personal liability here which has to be at least 50%.

Bottom line. When you do it yourself. You need to do it yourself. You cannot rely on a brokerage. 

DIY doesn't mean you could have easily avoided this loss but it does mean that you will be the one paying the cost, unfortuneately. That is what do-it-yourself means. Taking the responsibility.


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