TD Direct Investing (was Waterhouse) Service

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Re: TD Direct Investing (was Waterhouse) Service

Post by jeremy »

Hopefully the next step for WebBroker is to support journalling between different currency accounts. While it was handy to be able to do an in-kind contribution to my RSP, I still had to call in to move the security to the US side of the RSP account. If they added that feature I would rarely need to call them.
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Re: TD Direct Investing (was Waterhouse) Service

Post by SQRT »

jeremy wrote: 12 Jan 2018 11:20 Hopefully the next step for WebBroker is to support journalling between different currency accounts. While it was handy to be able to do an in-kind contribution to my RSP, I still had to call in to move the security to the US side of the RSP account. If they added that feature I would rarely need to call them.
Agree, this would be very useful. Does anyone know if other brokers allow this?
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Re: TD Direct Investing (was Waterhouse) Service

Post by 6miths »

Yes that would be an excellent feature!
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Re: TD Direct Investing (was Waterhouse) Service

Post by optionable68 »

So, I recently recommended 2 friends to open an TD DI account.

We go to TD DI online, and there is a nice "Open an account" section, we pop in all our personal information and complete all the online steps. The TDDI website indicates we are all set and just need to go to a TDCT branch to verify identity and bring a void cheque. We even receive a friendly congratuation email from TDDI with a confirmation number as a confirmation that we copleted the process

In both cases, we set up an appointment with the TDCT branch 1 week later to verify ID and bring a void cheque

In both cases, in different TDCT branches, they have no record of us completing an online application with TDDI, even when we show the rep the confirmation numbers recieved from TDDI.

In both cases, the rep tries to call TDDI and is left holding for approx 45 minutes.

In both cases when the TDDI rep who answers the phone, they have no record of an application even when we have a TDDI confirmation email

In both cases we had to re-enter the applications with the TDCT reps who could not explain what happened to our applications

From a client experience perspective, this wasn't up to snuff.

Wonder if TDDI is even aware of potential lost business?
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Re: TD Direct Investing (was Waterhouse) Service

Post by ig17 »

Arby wrote: 06 Jan 2018 20:07 TDDI used to be the first of my broker accounts in issuing monthly account statements, but lately TDDI has gone from first to worst. Looking online today for my December TDDI statements, I see the following message:
December account statements are expected to be available in Documents (eServices) on January 15 and mailed to clients starting January 16.
The statements from my other broker accounts at RBCDI and CIBC IE were available this week.
Just noticed that December 2017 statements are now available for all of our accounts.
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Re: TD Direct Investing (was Waterhouse) Service

Post by OnlyMyOpinion »

Thanks for the heads up. They were saying it wouldn't be till Jan.16 but there they are.
Time to do the 2017 rollup of 12mos of statements, and the year's confirmation slips (limited to 10 :x )
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Re: TD Direct Investing (was Waterhouse) Service

Post by kcowan »

optionable68 wrote: 14 Jan 2018 18:35 So, I recently recommended 2 friends to open an TD DI account...
I think you just got caught up in the massive FUBAR for TDDI. Me. I would have deferred any action until the FUBAR had settled down. Then I would have gone to a combined TDCT/TDDI branch to complete the apps.

My experience with this process goes back to 2002 when banks used to care about customers.
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Re: TD Direct Investing (was Waterhouse) Service

Post by Peculiar_Investor »

I ran into an oddity today related when using TDB8150 to hold spare cash, particularly in registered accounts, which generated a bunch of follow-up questions.

So here is what happened. In the past I've often purchased bonds within our RRSPs where the combination of cash and TDB8150 would cover the purchase. But if the actual cash in the account wouldn't cover the purchase amount, a checkbox would appear
WebBroker user interface wrote: Warning: To settle this buy order you agree to redeem your T-BILL and/or Money Market mutual fund(s). Please place the redemption order ...
I would check the box, complete the bond purchase, then place the order to sell TDB8150. This all works because of the different settlement times, because it is not possible to have a short position in a registered account.

Today I tried a similar set of trades within my TFSA, wanting to purchase a stock this time. Again, the cash on hand isn't enough to cover the purchase amount, but if you add the TDB8150 holdings that could be liquidated, there would be enough funds before the stock purchase settled (T+2).

So here is the oddity, I had already made a purchase of the stock in a non-registered account, so on the Order Status page it showed "Filled" as expected. One of the options on that screen is "Copy Order", so I did that and proceeded to change the account to TFSA and the number of shares to purchase, then click the "Preview Order" button.
WebBroker user interface wrote:Insufficient cash balance to cover this purchase; if this is a market order, consider placing a limit order. [ 43953 ]
Hence my post
Peculiar_Investor wrote: 02 Mar 2018 12:43 Stay tuned to the Way did you buy topic early next week for how the funds get deployed. I'm held up because I also need to sell TDB8150 first and have it settle.
Undeterred, I actually thought about this for a few minutes and decided to just start from scratch with a "Buy/Sell Order", selected the security, set a limit order price and expiry and clicked "Preview Order". Low and behold that process does recognize I could settle this buy order by redeeming your T-BILL and/or Money Market mutual funds(s). Order was successfully placed.
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Re: TD Direct Investing (was Waterhouse) Service

Post by Antoni »

US Dollar RRIF
Has anyone heard recently about the implementation of the US dollar RRIF? It had been announced for some years that a US dollar compartment would be introduced for "registered accounts", but last year, RRIFs were left out.

In-kind withdrawals of US ETF sharesfrom RRIF
I have recently withdrawn in-kind US ETF shares from my RRIF to transfer them to my TFSA (in US dollars). I had thought naively that I would in this manner escape the foreign exchange commission. I had read in TaxTips.ca (https://www.taxtips.ca/rrsp/inkindwithdrawals.htm) :
When an in kind withdrawal is done, you may have some leeway in determining the exact amount recorded for the withdrawal. If you request the withdrawal at the end of a trading day, you can choose a price for the investment, ranging from the lowest price at which the investment traded to the highest price traded during the day. If the investment is traded on a US stock exchange, an exchange rate must be applied to convert the transaction to Canadian dollars. The exchange rate will be the rate that the brokerage would have applied if you had sold the stock.
I was let no choice as to the price chosen (they imposed the closing price) and as to the exchange rate, they applied the rate TDDI would have applied if I had bought (not sold) the shares, with the result that the number of shares transacted was less than I had anticipated and the shares were transferred at a price higher than the one I could expect in the TFSA. Does anyone have an opinion on that?

In-kind withdrawals from US dollar RRSP or US TFSA
Has anyone made in-kind withdrawals from a US dollar RRSP or from a US TFSA? If so, has there been any problem with the exchange rate?

Antoni
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Re: TD Direct Investing (was Waterhouse) Service

Post by Taggart »

I didn't expect it, but received a slip from TDDI a few days ago showing "realized gains and losses". Only sold one Canadian equity in 2017 at a loss, (Home Capital bought in 2011) and checked the acb in that report and compared it with the one I figured out at adjustedcostbase.ca and was surprised yet again, even after a stock spit in 2014 that they matched perfectly.

That's left me wondering how many years back TDDI has kept track of acb's.
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Re: TD Direct Investing (was Waterhouse) Service

Post by AltaRed »

My take is the brokerages have kept track of anything that has been purchased in 'their' accounts, and there is likely little error in their data for straightforward stocks and bonds.

But I would not count on their accuracy for ETFs with phantom re-invested distributions, nor on shares journalled between CAD and USD accounts as I have discussed before. They 'may' (should) get it right for the ROC component, but not always. BMO IL missed catching a 2016 ROC component in my holding of CREIT.
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Re: TD Direct Investing (was Waterhouse) Service

Post by OnlyMyOpinion »

Taggart wrote: 23 Mar 2018 17:11 I didn't expect it, but received a slip from TDDI a few days ago showing "realized gains and losses". Only sold one Canadian equity in 2017 at a loss, (Home Capital bought in 2011) and checked the acb in that report and compared it with the one I figured out at adjustedcostbase.ca and was surprised yet again, even after a stock spit in 2014 that they matched perfectly.
That's left me wondering how many years back TDDI has kept track of acb's.
What kind of 'slip' was this?
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Re: TD Direct Investing (was Waterhouse) Service

Post by Taggart »

AltaRed wrote: 23 Mar 2018 17:42 My take is the brokerages have kept track of anything that has been purchased in 'their' accounts, and there is likely little error in their data for straightforward stocks and bonds.

But I would not count on their accuracy for ETFs with phantom re-invested distributions, nor on shares journalled between CAD and USD accounts as I have discussed before. They 'may' (should) get it right for the ROC component, but not always. BMO IL missed catching a 2016 ROC component in my holding of CREIT.
I only have equities in the taxable account, so I'll probably use TDDI's acb in future as a comparison to my own calculation. Sort of like a backup.

Thanks for the response Alta.
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Re: TD Direct Investing (was Waterhouse) Service

Post by AltaRed »

Taggart wrote: 23 Mar 2018 18:43 I only have equities in the taxable account, so I'll probably use TDDI's acb in future as a comparison to my own calculation. Sort of like a backup.
Just be aware that if a journal happens between the USD and CAD sides of the account, they will most likely screw it up, i.e. brokers typically use the forex rate in place on the date of the transfer, NOT the acquisition date. :shock:
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Re: TD Direct Investing (was Waterhouse) Service

Post by Taggart »

OnlyMyOpinion wrote: 23 Mar 2018 18:16
Taggart wrote: 23 Mar 2018 17:11 I didn't expect it, but received a slip from TDDI a few days ago showing "realized gains and losses". Only sold one Canadian equity in 2017 at a loss, (Home Capital bought in 2011) and checked the acb in that report and compared it with the one I figured out at adjustedcostbase.ca and was surprised yet again, even after a stock spit in 2014 that they matched perfectly.
That's left me wondering how many years back TDDI has kept track of acb's.
What kind of 'slip' was this?
OnlyMyOpinion:

It came with a kit of half a dozen information pages with the title "Helping you prepare to file your 2017 tax return".

I could be wrong, but I can't remember receiving anything like this in past years.
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Re: TD Direct Investing (was Waterhouse) Service

Post by Taggart »

AltaRed wrote: 23 Mar 2018 18:47
Taggart wrote: 23 Mar 2018 18:43 I only have equities in the taxable account, so I'll probably use TDDI's acb in future as a comparison to my own calculation. Sort of like a backup.
Just be aware that if a journal happens between the USD and CAD sides of the account, they will most likely screw it up, i.e. brokers typically use the forex rate in place on the date of the transfer, NOT the acquisition date. :shock:
Good point for others with USD equities.

I've got it quite a bit easier since our account only contains Canadian stocks.
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Re: TD Direct Investing (was Waterhouse) Service

Post by OnlyMyOpinion »

Taggart wrote: 23 Mar 2018 18:49 OnlyMyOpinion:
It came with a kit of half a dozen information pages with the title "Helping you prepare to file your 2017 tax return".
I could be wrong, but I can't remember receiving anything like this in past years.
Ah yes, thank you. I had downloaded mine but had not looked through it in detail. The first few pages seemed like pap and I ended there.

But looking further now, I also have a page called "Realized Gains and Losses (CDN)", that lists 36 transactions (all sell or redemption) and shows ACB/share, book value, G/L among other columns.
I have another page called "Foreign Property (CAD)" much different looking, that lists the month end values of each of my US stocks (presumably in $CDN) and a realized gains/losses column for those stocks I sold through the year.

<BIG groan here> I am going to have to take some time to reconcile these with my own records.
I do not recall ever getting this in the past either.
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Re: TD Direct Investing (was Waterhouse) Service

Post by BRIAN5000 »

Sorry OT pulled a Canadian stock out of my TFSA must remember the the ACB is the price on withdrawal not what I paid for the stock. This must get a little interesting moving stocks in/out of registered accounts for some.
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Re: TD Direct Investing (was Waterhouse) Service

Post by IdOp »

OnlyMyOpinion wrote: 23 Mar 2018 19:07I do not recall ever getting this in the past either.
Correct, the first paragraph of the pap indicates that this stuff is new this year.

So now we are getting the trading summary, the T5008 and this thing, when it comes to dispositions.
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Re: TD Direct Investing (was Waterhouse) Service

Post by IdOp »

I've had a bit of a look through TDDI's "Helping you to file ..." report.

On the good side, in the pap pages it mentions that CAD-valued GIC maturities and HISA sales do not need to reported to CRA. This is a question that sometimes comes up here, so it's nice to have this confirmation of what many of us (don't) do.

In the numbers they give I found various problems.

I sold a mutual fund that had been through a series conversion. In that case the cost base of the original series is carried through to the new series. In my case this adjustment was quite large, and it seems that TD has indeed corrected for it. That's good, but nevertheless their cost base is off on the order of $100.

I sold a stock that had been though a superficial loss. The circumstances of the loss were very simple. Yet, TDDI's figures don't take it into account.

On their summary of month-end market values for foreign property, TDDI are using month-end exchange rates. But, on the T1135 instructions CRA says to use the average annual exchange rate to compute the maximum market value during the year.

There are various other small confusing things.
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Re: TD Direct Investing (was Waterhouse) Service

Post by DenisD »

in another thread DenisD wrote: 20 Mar 2018 21:30 I had a look at my TDDI Tax Package a few days ago. Several of the gains/losses were very different from those I calculated before taking into account 2017 ROC. These gains/losses don't agree with the book value on my monthly statements either. They are on Canadian stocks, mostly REITs, that I've held for years but rebalance once in a while. Unfortunately, there is no detail provided on the calculations. So I don't know who's wrong. I'm assuming TDDI is. :wink:
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Re: TD Direct Investing (was Waterhouse) Service

Post by MikeFreedom49? »

The tax package ACB does not take into account the 2017 ACB adjustments from ROC or non cash distributions, only up to 2016. At least that’s what I noticed for the ETF I sold. So be cautious using their numbers, you’ll need to double check them.
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Re: TD Direct Investing (was Waterhouse) Service

Post by AltaRed »

It is appropriate that month end exchange rates be used to find the month of maximum market value. How else do you know the max month on a CAD basis? Scotia did the same as TD and that is exactly what I do.

It is appropriate to use annual average for the income box. Scotia I trade used month end numbers even for recurring income and I wrote them about that error.
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Re: TD Direct Investing (was Waterhouse) Service

Post by IdOp »

AltaRed wrote: 23 Mar 2018 21:53 It is appropriate that month end exchange rates be used to find the month of maximum market value. How else do you know the max month on a CAD basis?
I agree with you that this makes more sense. I'm just noting that the instructions on the T1135 do say to use the annual average exchange rate for the maximum fair market value during the year. It's CRA's prescription, perhaps to "make it easy".
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Re: TD Direct Investing (was Waterhouse) Service

Post by AltaRed »

IdOp wrote: 23 Mar 2018 22:15 I agree with you that this makes more sense. I'm just noting that the instructions on the T1135 do say to use the annual average exchange rate for the maximum fair market value during the year. It's CRA's prescription, perhaps to "make it easy".
I agree that is likely easiest to do for most Canadian taxpayers, but it is not CRA prescriptive that one do it that way. It seems to be a matter of choice. Per TaxTips ,
Once you're over the $100,000 Canadian $ cost of foreign investments which could be reported in category 7, you'll also need to know the maximum market value in Canadian $ during the year for your foreign securities with each securities dealer. As indicated previously, the maximum during the year may be based on the maximum month-end market value. On Form T1135 it indicates that the average exchange rate for the year should be used to calculate the highest market value during the year, and the year end exchange rate should be used for the year end market value. In order to complete the form easily each year, set up a worksheet (electronic or on paper) where you record the month-end market value in US$ during the year. Then at year end, apply the average rate for the year to each of these month-end values to determine the highest market value in Canadian $. For the year end value, use the year end exchange rate, to convert to Canadian $. You can get the average and year-end exchange rate for conversion from either the Bank of Canada or the Pacific Exchange Rate Service.

It is also acceptable to calculate the highest market value during the year by applying the month-end exchange rate to convert to Canadian $, or if your brokerage statements report the market value in Canadian $, to use those amounts. This is noted in the Q&A (question 71) for a webcast on T1135s presented through CPA Canada in November 2014, which is available at no charge to CPA members and non-members. Registration is required to view the webinar and the Q&A. For your convenience, we have a direct link to the pdf of the CPA Canada T1135 Questions and Answers, which was last updated November 16, 2015.
The latter way also avoids a potential situation where December becomes X as maximum market value during the year in CAD equivalent (at an annual forex rate), and year end value is yet a different CAD equivalent (X +/-) using the December month end forex rate. Because that situation happened to me a few times some years back, I reverted to always using month end forex rates. It is a bit more work because I usually have to check a few months (e.g. 3 highest months in USD and convert using month end forex) to truly see which one is maximum value.

Now that Scotia iTrade, starting this year, does this for me, I no longer need to think about it.
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