Q: I just want to add my two cents on US dollar registered accounts at TD Waterhouse.My information may be a bit out of date as I transferred my accounts to another broker a few months ago. This issue was a major reason.
TD began to promise a US dollar account for RRSP's, RRIF's etc several years ago when the restriction on foreign content was removed by the Federal government. I regularly checked back with them but the answer was still the same.... it was "under consideration". If you read on I think you can get a good idea of the reason.
TD make a 3% spread on their foreign exchange. .. i.e. if you bought 100 GM and sold 200 F today with each trade grossing about $3,500US they would take about $210 ( 3% of $7,000) in addition to the commission on both trades. It is true that they came up with the convoluted scheme of matching buys and sells on the same day and applying one rate to the trades. Nevertheless they are still hitting us for 1.5% on a transaction which has absolutely no risk to them. Also if you have to go the desk for this "service" they will charge $29.99 commission instead of $9.99 if you do it yourself.More than this all the dividends and interest which accrue on your US holdings are clipped for this 1.5% or more.
I have heard recently that they are implementing a charge of $2 for each letter mailed out to clients. This would include trade confirmations and monthly statements. Life for TD clients is becoming very expensive!!!
TD began to promise a US dollar account for RRSP's, RRIF's etc several years ago when the restriction on foreign content was removed by the Federal government. I regularly checked back with them but the answer was still the same.... it was "under consideration". If you read on I think you can get a good idea of the reason.
TD make a 3% spread on their foreign exchange. .. i.e. if you bought 100 GM and sold 200 F today with each trade grossing about $3,500US they would take about $210 ( 3% of $7,000) in addition to the commission on both trades. It is true that they came up with the convoluted scheme of matching buys and sells on the same day and applying one rate to the trades. Nevertheless they are still hitting us for 1.5% on a transaction which has absolutely no risk to them. Also if you have to go the desk for this "service" they will charge $29.99 commission instead of $9.99 if you do it yourself.More than this all the dividends and interest which accrue on your US holdings are clipped for this 1.5% or more.
I have heard recently that they are implementing a charge of $2 for each letter mailed out to clients. This would include trade confirmations and monthly statements. Life for TD clients is becoming very expensive!!!
