Suggest a broker that allow US stocks in rrsp account

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ig17
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Re: Suggest a broker that allow US stocks in rrsp account

Post by ig17 »

RomaneeConti wrote:I called TDW today and they said I would have to wait 3 days for the journaling over of the securities from the Canadian to the US accounts.

Or if I don't want to wait, I could do the purchase online with them on the phone and they would do the sale at full commission and while the journaling would still take 3 days there would be little to no forex fluctuation, just bid/ask spread risk and the full commission.

Adrian2, please tell me how I can do it without a phone call and without waiting?
I'm not Adrian but I can answer this. :wink:

Use the shorting method to execute an instant gambit in the taxable TDW accounts. You need margin accounts approved for short selling. You have to call to complete the gambit, but the call is not time sensitive.

To exchange CAD to USD:
* sell the stock short in US Margin Short account (suffix "H")
* buy the stock in Canadian Margin account (suffix "E")
* call TDW to journal the stock from "E" to "H". This is not time sensitive.

To exchange USD to CAD:
* sell the stock short in Canadian Short account (suffix "G")
* buy the stock in US Margin account (suffix "F")
* call TDW to journal the stock from "F" to "G". Again, this is not time sensitive.
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Re: Suggest a broker that allow US stocks in rrsp account

Post by DenisD »

RomaneeConti wrote:I called TDW today and they said I would have to wait 3 days for the journaling over of the securities from the Canadian to the US accounts.

Or if I don't want to wait, I could do the purchase online with them on the phone and they would do the sale at full commission and while the journaling would still take 3 days there would be little to no forex fluctuation, just bid/ask spread risk and the full commission.
Did you call the active trader number?
In [url=http://www.financialwisdomforum.org/forum/viewtopic.php?p=511064#p511064][b]another post[/b][/url] Mikouli wrote:Just choose an Inter listed Stock with High Volume (High Volume = Low Spread). Call TDW 866 247-1114 They will do the Whole procedure with you on the phone for free.
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RomaneeConti
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Re: Suggest a broker that allow US stocks in rrsp account

Post by RomaneeConti »

ig17 wrote: I'm not Adrian but I can answer this. :wink:

Use the shorting method to execute an instant gambit in the taxable TDW accounts. You need margin accounts approved for short selling. You have to call to complete the gambit, but the call is not time sensitive.

To exchange CAD to USD:
* sell the stock short in US Margin Short account (suffix "H")
* buy the stock in Canadian Margin account (suffix "E")
* call TDW to journal the stock from "E" to "H". This is not time sensitive.

To exchange USD to CAD:
* sell the stock short in Canadian Short account (suffix "G")
* buy the stock in US Margin account (suffix "F")
* call TDW to journal the stock from "F" to "G". Again, this is not time sensitive.
Thanks ig17 that is a good step-by-step procedure. I have family that do not have margin accounts, however. So I think for them the wait period for journaling would have to happen before selling the securities..
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RomaneeConti
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Re: Suggest a broker that allow US stocks in rrsp account

Post by RomaneeConti »

DenisD wrote:
RomaneeConti wrote:I called TDW today and they said I would have to wait 3 days for the journaling over of the securities from the Canadian to the US accounts.

Or if I don't want to wait, I could do the purchase online with them on the phone and they would do the sale at full commission and while the journaling would still take 3 days there would be little to no forex fluctuation, just bid/ask spread risk and the full commission.
Did you call the active trader number?
In [url=http://www.financialwisdomforum.org/forum/viewtopic.php?p=511064#p511064][b]another post[/b][/url] Mikouli wrote:Just choose an Inter listed Stock with High Volume (High Volume = Low Spread). Call TDW 866 247-1114 They will do the Whole procedure with you on the phone for free.
Hi DenisD, no I didn't call the active trader number. I called the 1800 465-5463 number and pressed through to speak to a trader make a trade. I am not an active trader, and do fewer than 10 trades a year.
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Re: Suggest a broker that allow US stocks in rrsp account

Post by RomaneeConti »

Rysto wrote:Supposedly TDW now auto-washes USD DRIPs from US-listed stocks.

They still don't auto-wash DRIPs from Canadian stocks that pay USD dividends.
Wow, that's different. Do I have to ask them specifically for each of my stocks to get the Auto-wash?
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Re: Suggest a broker that allow US stocks in rrsp account

Post by gsp_ »

RomaneeConti wrote:
Rysto wrote:Supposedly TDW now auto-washes USD DRIPs from US-listed stocks.

They still don't auto-wash DRIPs from Canadian stocks that pay USD dividends.
Wow, that's different. Do I have to ask them specifically for each of my stocks to get the Auto-wash?
You don't. As long as your account is set to auto wash and the securities are set to DRIP, it should happen automatically. Seems to have started sometime in December based on some CMF threads I seeked out after reading this one.

Cash dividends still get dinged the TDDI spread(around 1.5%).
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Re: Suggest a broker that allow US stocks in rrsp account

Post by gsp_ »

RomaneeConti wrote:Thanks ig17 that is a good step-by-step procedure. I have family that do not have margin accounts, however. So I think for them the wait period for journaling would have to happen before selling the securities..
They're probably just better off paying the phone commission for the immediate sell if the rep is being particularly obstinent(pretty clear a directive to charge phone commish came down a while back). For NGs of mid to large amounts the effect is negligible and you avoid the possibility of a nasty(or pleasant!) surprise.
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Re: Suggest a broker that allow US stocks in rrsp account

Post by Rooster »

gsp_ wrote:
RomaneeConti wrote:
Rysto wrote:Supposedly TDW now auto-washes USD DRIPs from US-listed stocks.

They still don't auto-wash DRIPs from Canadian stocks that pay USD dividends.
Wow, that's different. Do I have to ask them specifically for each of my stocks to get the Auto-wash?
You don't. As long as your account is set to auto wash and the securities are set to DRIP, it should happen automatically. Seems to have started sometime in December based on some CMF threads I seeked out after reading this one.

Cash dividends still get dinged the TDDI spread(around 1.5%).
My december VTI/VXUS/VWO distributions (with drip and auto-wash activated), seemed to have been dinged by fx conversions to cad and back. I was actually upset enough (as they had previously said they would get usd sub-accounts going in 2013) that i was seriously considering switching to rbc.

What were other's experiences with december distributions on their vanguard us holdings? Did this come online end of december?
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Re: Suggest a broker that allow US stocks in rrsp account

Post by AltaRed »

Folks, time to move on from TDDI at least for the USD portions of your accounts. Vote with your feet.
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Re: Suggest a broker that allow US stocks in rrsp account

Post by gsp_ »

Rooster wrote:My december VTI/VXUS/VWO distributions (with drip and auto-wash activated), seemed to have been dinged by fx conversions to cad and back. I was actually upset enough (as they had previously said they would get usd sub-accounts going in 2013) that i was seriously considering switching to rbc.

What were other's experiences with december distributions on their vanguard us holdings? Did this come online end of december?
It's hard to know for sure from just one data point as they don't show the USD DRIP price. Care to share your numbers?

In my mother's account USD->CAD on Dec. 27th was done at 1.046 which seems low but in my experience they convert at the previous day's BOC close rate minus their 1.5% fee which is dead on(previous close was 3 days prior). DRIP seemed to be at Dec. 27th close + 1 cent converted at the same 1.046.
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Re: Suggest a broker that allow US stocks in rrsp account

Post by Rooster »

1.04600 also quoted for dec 27th distributions (vti, vwo, vxus).

I may be doing this wrong, but i just look at the drip line in recent activity. For vxus, i got 8 shares and was debited $434.37. So, an average cost per share of $54.30. On dec 27, vxus market price was 51.9. So i figured i was "dinged" $2.40 per share or 4.6% (likely 2.3% on the conversion to cad and another 2.3% on the reconversion to usd). Is this a wrong way to look at it?
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Re: Suggest a broker that allow US stocks in rrsp account

Post by gsp_ »

Rooster wrote:1.04600 also quoted for dec 27th distributions (vti, vwo, vxus).

I may be doing this wrong, but i just look at the drip line in recent activity. For vxus, i got 8 shares and was debited $434.37. So, an average cost per share of $54.30. On dec 27, vxus market price was 51.9. So i figured i was "dinged" $2.40 per share or 4.6% (likely 2.3% on the conversion to cad and another 2.3% on the reconversion to usd). Is this a wrong way to look at it?
Seems to me you weren't dinged anything. They took your USD divs, converted them at a rate(pick one, anyone will do) and then bought 8 shares with those CAD funds using the same rate. Net cost to you, nada.

You got dinged 2.x% on the residual cash that did not get DRIPed but that's because of the currency move over the holiday. Over many such conversions it averages about 1.5%. Look up the USD close rate on the last trading day prior to the 27th, it is 1.0619.

1.0619 x .985 = 1.046

BTW VXUS is also the security that was DRIPed in my mother's account. As best as I can tell the shares were bought at $51.91 USD or as previously mentioned 1 penny above the close on the 27th.

Do you have data for your other DRIPed shares?
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Re: Suggest a broker that allow US stocks in rrsp account

Post by Rooster »

gsp_ wrote:
Rooster wrote:1.04600 also quoted for dec 27th distributions (vti, vwo, vxus).

I may be doing this wrong, but i just look at the drip line in recent activity. For vxus, i got 8 shares and was debited $434.37. So, an average cost per share of $54.30. On dec 27, vxus market price was 51.9. So i figured i was "dinged" $2.40 per share or 4.6% (likely 2.3% on the conversion to cad and another 2.3% on the reconversion to usd). Is this a wrong way to look at it?
Seems to me you weren't dinged anything. They took your USD divs, converted them at a rate(pick one, anyone will do) and then bought 8 shares with those CAD funds using the same rate. Net cost to you, nada.

You got dinged 2.x% on the residual cash that did not get DRIPed but that's because of the currency move over the holiday. Over many such conversions it averages about 1.5%. Look up the USD close rate on the last trading day prior to the 27th, it is 1.0619.

1.0619 x .985 = 1.046

BTW VXUS is also the security that was DRIPed in my mother's account. As best as I can tell the shares were bought at $51.91 USD or as previously mentioned 1 penny above the close on the 27th.

Do you have data for your other DRIPed shares?
Got it. Can't believe I didn't notice the cad conversion rate used to purchase the usd stock (4.6%) is the same as the conversion rate used to convert the usd dividends to cad (1.046). Will calculate if same rate was also used for vti and vwo drips and confirm.

Thanks!
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