Canadian Online Brokerage Review – TD Direct Investing (TD Waterhouse)

Canadian Discount Broker - TD Direct Investing

Mailing Address
77 Bloor Street West, Main Floor
Toronto, ON
M5S 1M2
Website: https://www.td.com/
Email Address: td.waterhouse@td.com
Phone: 1-800-465-5463
Customer Service Hours: 24hrs, seven days a week

TD Direct Investing Review

Updated on: Feb. 8, 2019
TD Direct Investing (formerly known as TD Waterhouse Discount Brokerage) is one of Canada’s largest discount brokerages. As a bank-owned online brokerage, it is able to offer clients the ability to manage multiple accounts (including personal banking) and products via the TD online platform. What makes TD Direct Investing stand out relative to most of its bank-owned peers is the amount of education it provides as well as the diverse set of trading platforms. Specifically, TD Direct Investing offers web-based and desktop platforms for active traders as well as longer term investors.

Quick Info

Standard Equity Commission $9.99
Best Commission Price $7
Minimum to Open Account Not Required
Maintenance/Inactivity Fees $25/quarter
Commission Free ETFs No

» Get Full Pricing Details

Pricing & Fees

As with several of its peers, earlier in 2014 TD Direct Investing lowered their standard commission pricing in this case to $9.99 per trade (flat). There are no deposit or trading minimums required in order to qualify for the standard pricing. For active traders, defined as clients who trade 150 or more times per quarter, the cost per trade is $7 flat. Options trading has also seen a reduction in price with the standard fee per options trade as $9.99 + $1.25 per contract and $7 + $1.25 per contract for active traders.

Although all clients are able to receive $9.99 per trade pricing, clients with balances underneath $15,000 are subject to a “custody fee” ($25) which is charged on a quarterly basis. Fortunately, there are certain conditions under which this fee can be waived, including:

1. Making at least 2 commission-generating trades within 6 months
2. Having a TD Direct Investing registered account
3. Being enrolled in a pre-authorized contribution plan of $100 per month or more

Account Types

Like many other online brokerages, TD Direct Investing offers registered and non-registered accounts. The registered account types include TFSAs, RDSPs, RRSPs and RESPs. TD Direct Investing has two kinds of RRSP accounts the ‘self-directed’ RSPs (and RIFs) and the ‘basic’ RSP. The important difference between the two is that the ‘basic’ RSP plan does not let users directly hold equities, options or mortgages whereas the ‘self-directed’ plan does.

In terms of non-registered account types, TD Direct Investing offers cash and margin accounts. In order to trade options and to short sell, a margin account and approval is required.

For several years, one of the biggest disadvantages concerning TD has been the lack of USD registered accounts. The ‘official line’ is that these accounts are forthcoming in 2014 and are currently undergoing testing, however the actual roll out date has not been announced. In the meantime, to address the currency conversions within registered accounts, TD Direct Investing has implemented a service called the U.S. Dollar Money Market Sweep & Redemption Service. Although the name is long, basically the service automatically routes the funds required to settle the transaction through a US dollar money market fund in such a way that a client doesn’t pay the foreign currency conversion fee. They have also extended this service to dividend payments so that clients receiving dividend payments (or making purchases) in US dollars won’t have to pay additional conversion fees. TD Direct Investing’s website details this process, so if it is of interest, be sure to review how it works.

Platform/Data

TD Direct Investing offers a broad selection of trading platforms that cater to investors of all activity levels. As a bank-owned discount brokerage, they are in the minority of providers that has web browser based as well as desktop based trading platforms. Although the platforms each have their strengths and limitations, choosing the right platform largely comes down to what kind of trading style you expect to have. TD’s online trading platforms include:

Platform Web/Desktop Based
Webbroker Web
Advanced Dashboard Web
Active Trader Desktop
US Trading Platform (ThinkOrSwim) Desktop

TD Direct Investing also offers mobile trading on the WebBroker and US Trading Platform. TD’s mobile/tablet apps are available for iOS, Android and Blackberry (smartphone) devices.

Reviews & Ratings

 Review What Review Measures Score Date of Ranking
Dalbar Canada Review Client Service Below Average
Below Average
January 2015
January 2014
Globe and Mail Review Overall Impression Letter Grade “A”
Letter Grade “B”
Letter Grade “B+”
3rd out of 12
Letter Grade “B+”
4th out of 12
Letter Grade “B”
6th out of 12
Letter Grade “C”
February 2019
February 2018
December 2016
December 2016
December 2015
December 2015
November 2014
November 2014
November 2013
JD Power Review Investor Satisfaction 7th out of 8
7th out of 8
7th out of 10
6th out of 10
3rd out of 10
4th out of 7
4th out of 11
June 2019
September 2018
September 2017
September 2016
September 2015
September 2014
September 2013
MoneySense Top Pick – Market Data
Top Pick – Market Data
Runner Up – Getting Started
Top Pick – Market Data
June 2019
July 2018
July 2017
July 2017

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Home Community Canadian Online Brokerage Review – TD Direct Investing (TD Waterhouse)

This topic contains 57 replies, has 3 voices, and was last updated by  Ron O 4 weeks, 1 day ago.

Viewing 10 posts - 11 through 20 (of 58 total)
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  • #23124 Reply

    gerald turner

    TD Direct Investing are totally useless if you retire and move from Canada to the USA. Despite regulations that specifically allow for retirement accounts to be traded online through webroker, TD refuse to implement changes to allow this. Instead they make you call an 800 number and wait up to 45 minutes to place a trade. They are the absolute scum of the earth and use a made up excuse for this based on specific US state restrictions – even though the SEC rules exempt them from this. Their IT department must be a bunch of lazy morons – and their so called customer care group doesn’t have a frigging clue.

    #22842 Reply

    Elizabeth Schulz

    Ours is a complaint due to the long wait times for TD Direct Investing. My husband spent more than 1/2 hour yesterday (anything more than a 5 minute wait is unacceptable and beyond his level of patience), and again today (approximately a 40 minute wait time); however, today he was able to get through after the long wait. My point is that these unacceptable wait times are disrespectful of your client’s time and, with today’s technology this is unnecessary because it would be very simple for you to implement a “call-back option” for your on-hold clients. TD Direct can check with Shaw if you need to know how this is done wonderful, and considerate, feature can be implemented.

    #22665 Reply

    JOHN FEDORUK

    Customer service here is non existant// passwords don’t match up for accounts between telemax and webroker// help time to get someone on the phone to fix the problem can be hours to days of wait times// this service was way better 25 years ago// and they dont seem to really care what you think

    #22583 Reply

    Haro

    TD is reporting huge profits year after year , you would think they would invest small amount of $$ to couch up with other brokerage companies.
    Just a thought

    #22504 Reply

    jeff lupton

    I have been a TD investor for some time now , but this is it I have had continuous outages the App
    is really not reliable as is the PC online service today I have not even been able to log on to my account and cannot get thru on the phone all you get it is volume. this is not about volume but bad management and planning, plan for the unexpected as I use to in my Corporate days . It is a no brainer to expect high volume in Jan/Feb RSP season but what does TD do God knows
    high price and poor service . I really question the whole TD direct trading whether they are doing it or you are

    #22503 Reply

    Gord

    TD Webbroker has internal system errors again today. Their telephone service hangs up when you select a language. Worst online brokerage service in Canada.

    #22465 Reply

    Gord

    Very frustrating lately. The site is down and unavailable often and for hours at a time. I am moving half my portfolio to Scotia. Try to use the telephone support on those days and the wait is 15 to 60 minutes. Unacceptable and very poor service.

    #22422 Reply

    Anthony F.

    ************ BUYER BEWARE !!! **************
    DO NOT TRUST THIS BROKERAGE/INSTITUTION FOR DEALING WITH STOCK TRADING. THERE IS INSIDER TRADING AND CORRUPTION GOING ON AND YOU WILL LOSE MONEY IN DOING SO. YOU HAVE BEEN WARNED AND IF YOU LOSE ANY MONIES GOING FORWARD, YOU WILL HAVE NOBODY TO BLAME BUT YOURSELF.
    *********** YOU HAVE BEEN WARNED ****************

    #22421 Reply

    Anthony F.

    I totally agree. I have made a complaint with the IROC. There is definitley corruption and/or insider trading with this brokerage. THIS BROKERAGE IS NOT RECOMMENDED…BUYER BEWARE.

    #21734 Reply

    John

    Think TD Direct Investing is a good online broker? Then you haven’t had the experience of trying to transfer your accounts to a better online brokerage company!!! I had two Presidents accounts, but got fed up and decided to transfer all my securities to Scotia iTrade. Within a day of the transfer request, I was persona non grata at TD. They have done their best to make my life miserable. First of all, they closed both of my accounts…without my permission…even before they executed the transfers of my assets. I cannot even see my account activity for the current month, much less the history. After two weeks there are still securities that have not been transferred to iTrade. I’ve called the Presidents Line, which used to be answered very quickly, but now that my accounts are closed, I get an interminable group of menu options. Guess they have phone numbers programmed into the system! I would warn all my friends and family NOT to get involved with this company. They are a disgrace to the brokerage industry.

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