RBC Direct Investing (formerly Action Direct) experience

Discuss your favourite picks, broker, and trading or investment style.
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: RBC Direct Investing (formerly Action Direct) experience

Post by AltaRed »

AltaRed wrote:How about being able to EFT to a non-Royal institution? If not, I hope they get there in 6 years when I would like to have it.
Answered my own question. The withdrawal must be made to an in-house bank (cash) or brokerage account (in kind or cash), or by cheque. Way behind the times in allowing EFTs anywhere else.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
User avatar
Shakespeare
Veteran Contributor
Veteran Contributor
Posts: 23396
Joined: 15 Feb 2005 23:25
Location: Calgary, AB

Re: RBC Direct Investing (formerly Action Direct) experience

Post by Shakespeare »

You can always pull from, say INGerine, then push elsewhere.
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
User avatar
Shakespeare
Veteran Contributor
Veteran Contributor
Posts: 23396
Joined: 15 Feb 2005 23:25
Location: Calgary, AB

Re: RBC Direct Investing (formerly Action Direct) experience

Post by Shakespeare »

RBCDI seems to be down this morning. They must have been taking tips from TD Waterhouse.
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
zeno
Contributor
Contributor
Posts: 210
Joined: 17 Jun 2008 23:47

Re: RBC Direct Investing (formerly Action Direct) experience

Post by zeno »

Spurious interest charges in RSP accounts?

Anybody else seeing unexplained interest charges in their RSP accounts at RBCDI this month? Our family has two accounts that both have charges something like this:

23 Dec 2014 - INT FR 11/22 THRU12/21@21 % BAL 28,389 AVBAL 3,785 -65.34 CAD 23 Dec 2014

Both accounts had positive cash balances all month.

I'm sure a phone call tomorrow will sort it out, but it's not how I planned to spend my holiday break.
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: RBC Direct Investing (formerly Action Direct) experience

Post by AltaRed »

Nothing like that in my RRSP account but then my cash balance is usually very close to zero. The dates 11/22 thru 12/21 is standard language for this interest reporting period when THEY are paying interest to you.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
zeno
Contributor
Contributor
Posts: 210
Joined: 17 Jun 2008 23:47

Re: RBC Direct Investing (formerly Action Direct) experience

Post by zeno »

zeno wrote:Spurious interest charges in RSP accounts?

Anybody else seeing unexplained interest charges in their RSP accounts at RBCDI this month? Our family has two accounts that both have charges something like this:

23 Dec 2014 - INT FR 11/22 THRU12/21@21 % BAL 28,389 AVBAL 3,785 -65.34 CAD 23 Dec 2014

Both accounts had positive cash balances all month.

I'm sure a phone call tomorrow will sort it out, but it's not how I planned to spend my holiday break.
Sorted this out today, and it was my error, although abetted by poor UI on the RBC direct website. In both accounts I sold a bond and then purchased a GIC the following day. The trade for the bond hadn't settled when I bought the GIC and GIC purchases settle immediately so I was Ieft with a couple of days of negative balance. They charged me 21% interest for those days. This wouldn't have happened if I'd bought another bond, since it too wouldn't have settled for a few days. I suppose I should have known this, but I foolishly believed the "Available Funds" line on the RBCDI Order Entry form, which showed the funds from the bond sale as being available.

The gentleman on the Royal Circle toll free reversed the charges for me.
pullingpitch
Contributor
Contributor
Posts: 27
Joined: 08 Jul 2014 23:01

Re: RBC Direct Investing (formerly Action Direct) experience

Post by pullingpitch »

Is it possible to initiate an in-kind transfer between an investment/cash account and a TFSA through RBCDI online? This is all being done under a single name/account holder. After logging in, I go to My Portfolio -> Transfer Funds but I'm limited to transferring cash amounts. The is no option for an in-kind transfer from what I can tell.
rishitibriwal
Contributor
Contributor
Posts: 102
Joined: 03 Feb 2011 21:35

Re: RBC Direct Investing (formerly Action Direct) experience

Post by rishitibriwal »

I am with RBCDI and it is not possible to do an in-kind contribution online. You have to call them and, IIRC, they will disclose the price, based on the current market price, that will be used to value the contribution and that has to be used for the sale in the unregistered account.

Rishi
pullingpitch
Contributor
Contributor
Posts: 27
Joined: 08 Jul 2014 23:01

Re: RBC Direct Investing (formerly Action Direct) experience

Post by pullingpitch »

rishitibriwal wrote:I am with RBCDI and it is not possible to do an in-kind contribution online. You have to call them and, IIRC, they will disclose the price, based on the current market price, that will be used to value the contribution and that has to be used for the sale in the unregistered account.

Rishi
Thanks for the insight. I called and they confirmed that it has to be done with a phone call as you say (there is no cost). After doing the transfer the broker mentioned there would be some new features and changes coming to RBCDI's trading platform so hopefully simple things like these transfers can be done online in the future.
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: RBC Direct Investing (formerly Action Direct) experience

Post by AltaRed »

In-kind transfers will only be able to be done online IF there is a 'box' for the user to insert transfer value and a disclaimer from the brokerage that the user remains responsible for valuation, i.e. don't blame us later if you screwed up.

I know Scotia iTrade has a process for in-kind transfers but I've never used it for transfers into a registered account (if that is even possible). I just move cash in. FWIW, I don't see the value of in-kind transfers other than $20 in commissions to sell in non-taxable, move the cash in and then re-buy the security.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
queerasmoi
Veteran Contributor
Veteran Contributor
Posts: 3385
Joined: 27 May 2008 16:25

Re: RBC Direct Investing (formerly Action Direct) experience

Post by queerasmoi »

AltaRed wrote:In-kind transfers will only be able to be done online IF there is a 'box' for the user to insert transfer value and a disclaimer from the brokerage that the user remains responsible for valuation, i.e. don't blame us later if you screwed up.
At Questrade you request the transfer and they inform you after the fact what they chose as the valuation. Not as flexible could be but at least it's functional. At Credential I made the request over the phone and was able to choose the valuation.
Benchwarmer
Contributor
Contributor
Posts: 616
Joined: 04 Dec 2010 20:39

Re: RBC Direct Investing (formerly Action Direct) experience

Post by Benchwarmer »

In a RBC-DI RRSP account, do I have to sell the RBC Investment Savings Account, then wait till the next day before purchasing stocks?

The reason for my question is that my equities models are day to day, so I usually don't know until early morning that I want to purchase a stock. My preference would be to sell enough of the Saving Account, and then immediately purchase the stock. In theory this should be OK, since the Savings Account settles the same day.
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: RBC Direct Investing (formerly Action Direct) experience

Post by AltaRed »

I have not done it with RBC DI because I don't buy stock through them, but with my other brokerages, there is no need to wait. The broker knows there is a sale order on the ISA in place by then. In actuality, I buy the stock first and then sell enough ISA money same day (or next day) to pay for it.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
User avatar
Shakespeare
Veteran Contributor
Veteran Contributor
Posts: 23396
Joined: 15 Feb 2005 23:25
Location: Calgary, AB

Re: RBC Direct Investing (formerly Action Direct) experience

Post by Shakespeare »

I buy the stock first and then sell enough ISA money same day (or next day) to pay for it.
That works with RBCDI. I do the sale immediately after the purchase and use the portfolio balance indicator, which takes into account unused cash, to calculate how much to sell (rounded to the next negative dollar; i.e. $-2203.09 to $2204.)
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
User avatar
IdOp
Veteran Contributor
Veteran Contributor
Posts: 3873
Joined: 16 Feb 2006 11:27
Location: On the Pacific sea bed, 100 mi off the CA coast.
Contact:

Re: RBC Direct Investing (formerly Action Direct) experience

Post by IdOp »

Benchwarmer wrote:In theory this should be OK, since the Savings Account settles the same day.
The Savings Account (RBF2010) settles one day after the trade date, called "T+1". RBCDI have a cut-off time somewhere in the afternoon; if you place the order to sell RBF2010 after the cut-off time, then it'll trade the next day, and settle the day after that (i.e., two days after you placed the late afternoon order). I'm not sure of the exact cut-off time at the moment.
Benchwarmer
Contributor
Contributor
Posts: 616
Joined: 04 Dec 2010 20:39

Re: RBC Direct Investing (formerly Action Direct) experience

Post by Benchwarmer »

Shakespeare wrote:
I buy the stock first and then sell enough ISA money same day (or next day) to pay for it.
That works with RBCDI. I do the sale immediately after the purchase and use the portfolio balance indicator, which takes into account unused cash, to calculate how much to sell (rounded to the next negative dollar; i.e. $-2203.09 to $2204.)
I seem to recall reading here that in an RBCDI-RRSP account, you are not allowed to buy a GIC unless you had sold enough of the Savings Account the previous day. If this is indeed the case, then it doesn't make sense.

Would something similar apply to stocks?
User avatar
Shakespeare
Veteran Contributor
Veteran Contributor
Posts: 23396
Joined: 15 Feb 2005 23:25
Location: Calgary, AB

Re: RBC Direct Investing (formerly Action Direct) experience

Post by Shakespeare »

GIC's are T+0 (immediate) settlement which means the cash must be in the account at COB. HISA's are T+1. Stocks are T+3.

The T's must match or better.
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
qasimodo
Contributor
Contributor
Posts: 355
Joined: 02 May 2010 12:08

Re: RBC Direct Investing (formerly Action Direct) experience

Post by qasimodo »

Shakespeare wrote:GIC's are T+0 (immediate) settlement which means the cash must be in the account at COB. HISA's are T+1. Stocks are T+3.

The T's must match or better.

Note that the "available funds" on the GIC purchase screen is misleading (incorrect). It does not reflect the actual settled funds available for GIC at T+0. Further, the system will let you make the purchase and a few days later ding you with an charge at 21%.

As a long time TDDI customer I found this to be very flawed. The RBC call center reps claimed the system couldn't calculate the funds/days. Sad
oxymoronic marketers pitch: "... and make ads more relevant"
User avatar
Shakespeare
Veteran Contributor
Veteran Contributor
Posts: 23396
Joined: 15 Feb 2005 23:25
Location: Calgary, AB

Re: RBC Direct Investing (formerly Action Direct) experience

Post by Shakespeare »

The last GIC renewal I did earlier this month showed the correct fund availability, i.e. as of COB that day. The GIC was renewed the day it came due without problems or charges. The balance dropped correctly as I purchased (from Hawaii, on vacation).
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: RBC Direct Investing (formerly Action Direct) experience

Post by AltaRed »

Shakespeare wrote:The last GIC renewal I did earlier this month showed the correct fund availability, i.e. as of COB that day. The GIC was renewed the day it came due without problems or charges. The balance dropped correctly as I purchased (from Hawaii, on vacation).
I have also done GIC renewals on the same day as the previous one matured. Same observations.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
Benchwarmer
Contributor
Contributor
Posts: 616
Joined: 04 Dec 2010 20:39

Re: RBC Direct Investing (formerly Action Direct) experience

Post by Benchwarmer »

Shakespeare wrote:GIC's are T+0 (immediate) settlement which means the cash must be in the account at COB. HISA's are T+1. Stocks are T+3.
I did not realize GICs are T+0, now it all makes sense. Thanks for the explanation.
qasimodo
Contributor
Contributor
Posts: 355
Joined: 02 May 2010 12:08

Re: RBC Direct Investing (formerly Action Direct) experience

Post by qasimodo »

Purchased the GIC with funds from stock sale (which had settled) and dividends (which had not yet settled). I failed to correctly account for the dividend settlement.

The "available funds" would have been correct if both sides of the ledger were T+3, but was incorrect because the GIC is T+0. The system did not warn me or prevent me from making the error.
oxymoronic marketers pitch: "... and make ads more relevant"
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: RBC Direct Investing (formerly Action Direct) experience

Post by AltaRed »

I don't think the system should take the responsibility to determine the 'type of settlement' on what you are buying. Should the system know the difference on settlements of HISAs/MMFs (T+1), GICs/Tbills (T+0), most mutual funds/bonds/common stock/preferrred stock (T+3) when making the purchase? What about other types of purchases that may have different types of settlement dates? I think it is the user's responsibility to know since, after all, these are discount brokerages 'with no advice'.

I am happy enough the system knows the settlment date of a sale so that I can actually access the funds for a purchase before the sale actually settles, especially so when one sells/buys stock.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
qasimodo
Contributor
Contributor
Posts: 355
Joined: 02 May 2010 12:08

Re: RBC Direct Investing (formerly Action Direct) experience

Post by qasimodo »

AltaRed wrote:I don't think the system should take the responsibility to determine the 'type of settlement' on what you are buying. Should the system know the difference on settlements of HISAs/MMFs (T+1), GICs/Tbills (T+0), most mutual funds/bonds/common stock/preferrred stock (T+3) when making the purchase? What about other types of purchases that may have different types of settlement dates? I think it is the user's responsibility to know since, after all, these are discount brokerages 'with no advice'.

I am happy enough the system knows the settlment date of a sale so that I can actually access the funds for a purchase before the sale actually settles, especially so when one sells/buys stock.

After spending a career managing software companies and building systems for banks and large corporations, that's exactly what the system should do. There are clearly defined rules and software should do the work for users. This is not "advice" this is calculation.

P.S. TDDI does it correctly
oxymoronic marketers pitch: "... and make ads more relevant"
Benchwarmer
Contributor
Contributor
Posts: 616
Joined: 04 Dec 2010 20:39

Re: RBC Direct Investing (formerly Action Direct) experience

Post by Benchwarmer »

Is there a way of setting up sub-accounts?

I would like to separate my equities portfolio from FI from cash. If I sell a stock, and waiting a few weeks before purchasing another, I would like that cash to count as part of the equities portfolio. If a GIC matures, I would like the cash to count as part of the FI portfolio while I wait to purchase another.

The simplest way to do that is to have 3 sub-accounts (equities, cash, FI), and never the 3 shall mingle.
Post Reply