Tax Free Savings Account 2009

[heyjude]

The New Tax-Free Savings Account (TFSA) - are you going to get advantage of it? If you have the extra $5000.00 would you open TFSA and if yes with which financial institution?

[Canadian]

The New Tax-Free Savings Account (TFSA) - are you going to get advantage of it? If you have the extra $5000.00 would you open TFSA and if yes with which financial institution?

I was thinking to open a self-directed TFSA account with TD, but I'm still doing my research. Has anybody opened TFSA account with TD, and if yes what's your experience?

Do you know a company that offers self-directed TFSA with low commissions? It seems like all big Canadian banks have really high transaction fees.

[trent]

I was thinking to open a self-directed TFSA account with TD, but I'm still doing my research. Has anybody opened TFSA account with TD, and if yes what's your experience?

Do you know a company that offers self-directed TFSA with low commissions? It seems like all big Canadian banks have really high transaction fees.

I have no experience with TD, but I have an ActionDirect investing account from Royal Bank. Their transaction fees are also ridiculously high, unless you have more than $100K in your investing account, or you do more than certain number of trades per quarter.

I'm thinking of ditching RBC and moving my investment account to QuestTrade.
Anybody care to share their experience with QuestTrade?

[Canadian]

I talked to a friend last might and he said that even though QuestTrade offers low transaction costs, their website lacks usability, and he's not happy with their service and support.

Any other suggestions for a low cost Canadian brokerage?

[bullish]

Have you tried Interactive Brokers or E-Trade?

[trent]

I talked to a friend last might and he said that even though QuestTrade offers low transaction costs, their website lacks usability, and he's not happy with their service and support.

Any other suggestions for a low cost Canadian brokerage?

OK, QuestTrade doesn't sound too promising then. I might have to stay with Royal bank even tough commissions are high.

[Canadian]

OK, QuestTrade doesn't sound too promising then. I might have to stay with Royal bank even tough commissions are high.

I always wondered if you can negotiate down the commissions you are paying to the big Canadian banks even though you don't have the $100K. It seems unfair to pay $30 per trade, when in US there are so many discount brokerages offering trades in the $4-$10 range, without stupid requirements for a minimum level of money in the investment accounts.

[heyjude]

I always wondered if you can negotiate down the commissions you are paying to the big Canadian banks even though you don't have the $100K. It seems unfair to pay $30 per trade, when in US there are so many discount brokerages offering trades in the $4-$10 range, without stupid requirements for a minimum level of money in the investment accounts.

You can try... Honestly I don't think you will be able to negotiate the commissions because there are not many alternatives. We have 5 major canadian banks and that's it. Please keep us posted if you have any luck negotiating it. ;)

[Canadian]

I've actually called my bank, and I got the response I expected - "No, we cannot lower your trading commissions if you don't have $100,000+ in your brokerage account or if you don qualify for lower commission as an active trader (requires certain number of trades per quarter)". What was I thinking, here in Canada some things never change :(.

[trent]

The bank recommended that my Mom utilize this new account. Shes over 70 so some of her investments are tied up in RIFs now. She also has to pay a fair bit of income tax every year. Seeing as the Tax Free Savings account is tax free, it sounds like more sense to me. Like you, I have to make an appointment to meet with the bank in the near future to look into it for her and myself.

TFSA is a great option to invest and earn money tax free, however I think your Mom should be very conservative in her investment decisions at this age.

[Rickson9]

The New Tax-Free Savings Account (TFSA) - are you going to get advantage of it? If you have the extra $5000.00 would you open TFSA and if yes with which financial institution?

My wife and I went with a self-directed trading account with TD Waterhouse.

[Rickson9]

I've actually called my bank, and I got the response I expected - "No, we cannot lower your trading commissions if you don't have $100,000+ in your brokerage account or if you don qualify for lower commission as an active trader (requires certain number of trades per quarter)". What was I thinking, here in Canada some things never change :(.

Heck I didn't even know you could negotiate that. I'm going to try it next time. :confused: