I have an online brokerage account with TD Waterhouse. I do all my banking with TD so I thought it would be a good idea to open a brokerage account with TD. It was easy. It was not a good idea. I was paying $29 for each trade. TD has a discount rate of $9.99 per trade but I never bothered to investigate how to get that rate for my trades. Turns out I don’t qualify because I don’t have enough money in my brokerage account. You have to have $50,000 to qualify for the low rate and I am not even close.
You can read about that failed attempt to negotiate lower brokerage fees here http://solvingthemoneypuzzle.com/2013/09/21/overcharging-for-brokerage-fees-and-asset-discrimination-at-td-waterhouse/.
I had an appointment today with my bank lady Diane to open an RRSP inside the TD brokerage account so that I can dump my low performing bank run mutual fund and buy more Vanguard ETFs. Instead I vented to her about the unfairness of the lower fees that I don’t qualify. The rich get richer sums it all up.
I signed all the paperwork necessary to collapse my RRSP mutual fund and move it to an RRSP daily interest savings account so that it will be easier to move to Questrade. I have $248 cash in my TD brokerage account but Diane said that I would have to phone the brokerage to get them to transfer that cash out to the RRSP savings account.
I called TD Waterhouse and told them that I was moving all my business elsewhere. I told snotty guy, who sounded just like guy who does the voice of their telephone menu, that I wanted to move my $248 to any of my other TD accounts. He cautioned me several times that it could take up to 24 hours for the transfer to take place. I can only think that he thought I was desperate to get my hands on the cash.
I told him that I would be transferring my business to Questrade. He informed me that TD Waterhouse charges a fee of $135 plus HST (total of $152.55) when they transfer an account. I am down to 3 stocks in that account and they are valued as followed.
- Bank Of Nova Scotia $ 592.
-Toronto Dominion Bank $1,365
-Vanguard ETF VDY $1,522
Small potatoes for such a giant corporation but the foundation for my financial independence. I don’t want to waste $152 transferring it. I am angry and I don’t want to keep any of my business with them. Cash transfers to other accounts within the bank are allowed but I would have to pay $29 for each of the 3 sell trades that would liquidate the account. That would mean $87 to move the money to one of my other TD accounts. The Bank Of Nova Scotia shares and the Vanguard ETF were purchased in the last 4 months and they are both down in price from what I paid. I would be overpaying a fee and taking a loss on the stocks if I sold now.
I will leave those 3 shares in the TD Waterhouse account. It is too expensive to move them. They are all dividend paying shares and if I just ignore them for 5 or 8 years I may have enough dividend income in the account to cover the cost of selling.
I am moving to Questrade. I had a phone conversation with Moe today and he assured me that all I needed to open an account with Questrade is $1,000. $9.95 per trade fits my budget more than TD’s $29.
I have to admit that I did think that I could convince the people at TD to give me the trade rate of $9.99 even though I don’t have $50,000 in assets. I thought they might be like the phone companies or the cable and internet companies who all have customer retention representatives and are willing to bargain and make deals or offer incentives to keep clients. Once you lose a client it is very hard to get them back. You have to go through all the effort to develop a new client.
Your loss TD Waterhouse. My assets are no where near the $50,000 minimum you require but they will be one day. I am taking $4,440 in RRSP money out of TD and over to Questrade. That is only the beginning. I will be debt free in 6 to 8 months and then I will be saving and investing $10,000 each year with someone else. I won’t just be buying stocks elsewhere. I will be shopping for the best rates on everything from my chequing accounts to the GIC portfolio that I want to develop.
You don’t value my business so I no longer value yours.
Debt on January 1, 2013 $20,800
Debt on September 23, 2013 $12,761.